Ashanti followed up its strong 2001 performance with an 83% increase in earnings in the first quarter of 2002. The quarter?s earnings amounted to US$16.5 million compared with US$9.0 million recorded in 2001. The increase was due mainly to higher gold production and spot price levels. Total gold production of 409,384 ounces was 3% higher than the 398,992 ounces recorded in the first quarter of last year. Obuasi, Geita, Iduapriem and Bibiani recorded higher production levels as compared to 2001.

Cash operating costs for the quarter were US$190 per ounce, an improvement on the US$195 per ounce recorded last year. Ashanti maintained its world-class safety standard with a Group Lost Time Injury Frequency Rate (LTIFR) of 0.37 for the quarter compared with 0.43 in the first quarter of 2001. New developments in the first quarter of 2002 included the commencement of mining at the Mpesetia deposit for processing at the Bibiani plant, the Iduapriem carbon-in-leach plant expansion project to increase processing capacity by 50% to 4.0 million tonnes per annum (Mtpa) and the installation of a secondary crushing plant at Geita as part of a longer term expansion programme. During the quarter Ashanti reduced Group?s gross debt level by US$11.8 million, including a US$7.0 million repayment towards the Revolving Credit Facility. Ashanti also effected certain restructurings to further improve and simplify its hedgebook. These included a reduction in tenor and simplification of a lease rate swap with a counterparty, elimination of the convertible structures in Ashanti?s portfolio0, a modest increase in protection levels and removal of the sold puts. Further details are included in the Financial Review.

Conditional agreements with an ad hoc committee of noteholders to a proposed restructuring of the 5 1 /2% Exchangeable Notes (?Proposed Restructuring?), with all of Ashanti?s active hedge counterparties to margin-free arrangements; and with a syndicate of four banks to arrange and underwrite a new US$100 million revolving credit facility are some of the important refinancing mile-stones which have been accomplished so far this year. Ashanti currently expects that the public documentation relating to the proposed restructuring will be posted during the second half of May 2002.

Ghana

Obuasi: Obuasi?s gold production for the quarter was 140,096 ounces, approximately 2,000 ounces ahead of its annualised target, and 8,474 ounces above the 131,622 ounces achieved in the first quarter of 2001. The increase in production was due to the higher feed grade, 8.01 g/t compared to 7.39 g/t, and improved metallurgical recovery, 87.0% compared to 82.8%, at the Sulphide Treatment Plant (STP). At US$189 per ounce, the cash operating cost for the quarter was marginally below the target of US$190 per ounce and an improvement on the US$192 per ounce achieved in the first quarter of 2001.

Mining.

Underground production of 591,000 tonnes was lower than the 615,000 tonnes reported in the first quarter of 2001 while the head grade at 7.50 g/t is a decrease on the 7.89 g/t for the same period. The reduction in tonnage was due to the collapse of an ore pass in a high production ore block in the Central section which constrained production in February. The pass was repaired and a replacement pass has also been developed since. Underground infrastructure projects continued during the quarter included development of the Brown Sub-Vertical Shaft (BSVS) ventilation raise between the 50 and 41 levels, shaft development on 50 level, raiseboring of the 300 South ventilation raise, and the Kwesi Mensah Shaft (KMS) bottom spillage hoisting system which has now been completed.

Processing.

Throughput at STP was 582,000 tonnes compared with 597,000 tonnes in the corresponding period last year whilst the head grade increased to 8.01 g/t from 7.39 g/t. The improved metallurgical recovery and higher feed grade resulted in the STP producing 130,426 ounces compared with 117,418 ounces in the first quarter of 2001. Modifications to the STP flotation circuit, completed in the fourth quarter of 2001, largely accounts for the improvement in recovery when compared to the first quarter of 2001. Work commenced on the concrete foundations for the re-location of the SAG mill from the Pompora Treatment Plant (PTP) to the STP.

Exploration.

Underground exploration continued to yield some very encouraging results from drilling between the 20 and 38 levels in the South section of the mine and below 50 level in the vicinity of KMS. Intersections included 6.0m at 13.8 g/t, 17.5m at 14.8 g/t and 4.4m at 10.6 g/t from 20 level, 4.5m at 14.6 g/t and 8.1m at 16.2 g/t from 38 level and 3.1m at 18.0 g/t from 50 level.

Iduapriem/Teberebie

At 47,844 ounces, gold production from the Iduapriem (80% owned) and Teberebie (90% owned) mines was in line with target and was slightly ahead of the 46,400 ounces achieved in the first quarter of 2001. Cash operating costs reduced to US$ 193 per ounce from US$225 per ounce in the corresponding period in 2001. Carbon-in-leach (CIL) plant throughput for the quarter was 656,000 tonnes, the same as in the first quarter of 2001. However, the grade improved to 2.00 g/t from 1.85 g/t resulting in an increase in gold production to 38,291 ounces from 37,307 ounces. Stacking of heap leach oreat the Iduapriem site was completed and the pads are currently being rinsed out. A decision was taken to expand the CIL plant capacity to 4.0 Mtpa and design and procurement work commenced in February 2002. The expansion project is scheduled to be commissioned by the end of the year.

Bibiani

Bibiani produced 59,806 ounces of gold from processing 577,000 tonnes of ore at 3.90 g/t, at a cash operating cost of US$186 per ounce. Production for the corresponding period in 2001 was 57,880 ounces from 632,000 tonnes at 3.41 g/t at US$156 per ounce. Ore and waste mining activities, mill throughput and cash operating costs were adversely affected by a shortage of water resulting from an exceptionally dry period. To manage the shortage and reduce future water supply risk, new wells were drilled to increase pumping from the flooded old underground workings. The old tailings dam impoundment walls were also elevated to increase storage capacity.

EXPLORATION

Ghana: Exploration and assessment continued on a number of prospects on and in the vicinity of the Bibiani, Iduapriem and Obuasi operations.