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DRD convertible note issue: media release

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Published: Monday, 04 November 2002 02:00

Durban Roodepoort Deep, Limited (DRD) has successfully raised US$60 million, primarily to fund growth, through the issue of four year 6% Senior Convertible Notes, mainly to investors in North America and Europe, Chairman and Chief Executive Officer Mark Wellesley-Wood announced today (4.11.02). 150/02-CDR

Embargo: For immediate release)

"DRD successfully raises funds for expansion"

DRD RAISES US$60 MILLION THROUGH CONVERTIBLE NOTE ISSUE

Durban Roodepoort Deep, Limited (DRD) has successfully raised US$60 million, primarily to fund growth, through the issue of four year 6% Senior Convertible Notes, mainly to investors in North America and Europe, Chairman and Chief Executive Officer Mark Wellesley-Wood announced today (4.11.02).

"The transaction gives us the capital we need to fund a new and exciting phase in our company’s expansion," Wellesley-Wood said.

Of the net proceeds, DRD expects to use approximately:

• $15 million for capital expenditures to upgrade and improve metallurgical plants and expand mining operations;



• $15 million for the acquisition of gold producing businesses or companies;
• $15 million for mineral exploration and resource evaluation in South Africa, including the Argonaut Project;
• $7.5 million for capital expenditures designed to reduce administrative and production costs; and
• the remainder for general corporate purposes, including working capital.

The $60 million principal amount of convertible notes has been issued at par and is convertible into ordinary shares at a price of $3.75, at the option of the noteholders.

The conversion price represents a premium of approximately 21% to the closing price of the company’s ADRs as traded on Nasdaq on Friday, 1 November 2002.

Queries:

Mark Wellesley-Wood
082 415 4998

Ian Murray
082 441 4090

Peter North
082 552 6218
+27 (0)11 282 8227

Prakash Chandramohan
082 407 4273
+27 (0)11 282 8248

James Duncan
082 892 8052
+27 (0)11 880 3924