Ashanti Goldfields Completes Acquisition of Pioneer Goldfields Limited.

Business Editors

ACCRA, Ghana--(BUSINESS WIRE)--June 20, 2000

Ashanti Goldfields Company Limited ("Ashanti") is pleased to announce that it has completed the acquisition of Pioneer Goldfields Limited ("PGL"), the company that owns the Teberebie mine in Ghana, from Pioneer Group Inc. ("Pioneer") for a total of US$18.8 million and the assumption of US$8.25 million of debt.

As announced on 12 May, Ashanti has agreed with Pioneer to pay US$5 million on completion and the balance of US$13.8 million over the next five years. This acquisition increases Ashanti's ore reserves by at least 1.6 million ounces.

Ore from the Teberebie mine, which lies about three kilometres north of Ashanti's Iduapriem mine, will be hauled to Iduapriem for processing. The resulting operation will extend the life of the Iduapriem mine by approximately eight years, producing over 150,000 ounces per annum at an operating cash cost of approximately US$200 per ounce. In 1999, Iduapriem produced 163,700 ounces at an operating cash cost of US$248 per ounce.

Certain of the statements made in this announcement are forward-looking in nature. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. These factors include, but are not limited to, statements made elsewhere in this announcement. In addition, risk factors relating to Ashanti can be found in its public SEC filings. Ashanti undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Any statements should be evaluated in light of these factors.