Media releases

DRDGOLD to acquire stake in ASX-listed allied gold

Details

Published: Friday, 11 November 2005 02:00

DRDGOLD announced today that it is to acquire a 5% stake in Australian Stock Exchange-listed Allied Gold Limited (Allied) for A$3 032 000.
Johannesburg, South Africa. 11 November, 2005. DRDGOLD Limited (JSE: DRD; NASDAQ: DROOY; ASX: DRD; POM SoX: DRD) announced today that it is to acquire a 5% stake in Australian Stock Exchange-listed Allied Gold Limited (Allied) for A$3 032 000.

DRDGOLD has also agreed to underwrite a proposed capital raising to be conducted by Allied to raise an additional A$6 968 000 through the issue of 17 420 000 shares at an issue price of $0.40 per share.

Both transactions are subject to South African Reserve Bank approval.

The capital raising, which represents approximately 17.5% of Allied’s share capital, is also subject to Allied shareholder approval, which Allied has undertaken to obtain by no later than 20 January. 2006.

The funds will be applied to Allied Gold’s Simberi Gold Oxide Project on Simberi Island in Papua New Guinea (PNG), specifically for:

• preliminary project development infrastructure and earthworks including the establishment of wharf facilities at Pigiput Bay, process plant and camp earthworks, ringroad and haulroad establishment, and airstrip upgrading; and
• accelerated exploration programmes including geophysical (IP) surveys, RC drilling to expand reserves at existing oxide gold deposits, RC drilling to test new areas for additional oxide gold resources, diamond drilling to expand and upgrade known sulphide gold resources, and diamond drilling to test new exploration targets for additional sulphide gold resources.

DRDGOLD Chairman Mark Wellesley-Wood commented: “The Allied investment gives us exposure to an exciting development project in PNG and the opportunity to participate further if the project achieves critical mass.”

Note to editors: Allied Gold’s principal activities are exploration, evaluation and development of mineral resources. Further information is available on the company’s website, www.alliedgold.com.au

Queries:

South Africa
Investor and Media Relations
Ilja Graulich, DRDGOLD
+27 11 219 8707(office)
+27 83 604 0820 (mobile)

James Duncan, Russell & Associates
+27 11 880 3924 (office)
+27 82 892 8052 (mobile)

North America
Investor and Media Relations
Barbara Cano, Breakstone Group International
+1 646 452 2334 (office)

Australasia
Investor and Media Relations
Paul Downie, Porter Novelli
+61 893 861 233 (office)
+61 414 947 129 (mobile)

United Kingdom/Europe
Investor and Media Relations
Phil Dexter, St James's Corporate Services
+44 20 7499 3916 (office)
+44 779 863 4398

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DRDGOLD is an intermediate unhedged gold producer with mines in South Africa as well as Australasia. The company’s production profile is split equally between its highly leveraged SA operations and its low cost, cash generative offshore mines.

DRDGOLD has primary listings on the Johannesburg (JSE:DRD) and Australian (ASX:DRD) stock exchanges and secondary listings on NASDAQ (DROOY), the London and Port Moresby stock exchanges and the Paris and Brussels Bourses. Its shares are also traded on the regulated unofficial market of the Frankfurt Stock Exchange and the Berlin OTC Market.

For more information, please visit www.drdgold.com

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FORWARD-LOOKING STATEMENTS

Some of the information in this press release may contain projections or other forward looking statements regarding future events or other financial performance, including forward-looking statements and information relating to us that are based on the beliefs of our management, as well as assumptions made by and information currently available to our management. When used in this release, the words "estimate", "project", "believe", anticipate", "intend", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.

Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a continuing strengthening of the Rand against the Dollar, regulatory developments adverse to us or difficulties in maintaining necessary licenses or other governmental approvals, changes in our competitive position, changes in business strategy, any major disruption in production at our key facilities or adverse changes in foreign exchange rates and various other factors.

These risks include, without limitation, those described in the section entitled "Risk Factors" included in our annual report for the fiscal year ended 30 June 2004, which we filed with the United States Securities and Exchange Commission on 29 November 2004 on Form 20-F, as amended by the Form 20-F/A filed on 29 April 2005 and those detailed from time to time with the United States Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events.