Media releases

DRDGOLD to continue with recovery actions

Details

Published: Monday, 05 June 2006 02:00

DRDGOLD Limited said today that it intends to continue with legal action – reported by the company in June 2002 – to recover misappropriated funds.
Johannesburg, South Africa. 5 June 2006. DRDGOLD Limited (JSE: DRD; NASDAQ: DROOY; ASX: DRD; POM SoX: DRD) said today that it intends to continue with legal action – reported by the company in June 2002 – to recover misappropriated funds.

CEO Mark Wellesley-Wood, on behalf of the company’s Board of Directors, said: “Recent revelations of misappropriations at Randgold and Exploration (Randgold) and JCI Limited (JCI) follow similar patterns to those unearthed by DRDGOLD’s Special Committee and come as no surprise to the Directors of DRDGOLD, who sounded ‘warning bells’ some time ago.

“In spite of what is now revealed to have been a well orchestrated campaign to discredit DRDGOLD, its Directors and myself in particular, we have continued in our resolve to recover the losses and damages incurred during the period of Kebble influence.

“Due to its legal actions, the Board is pleased to confirm that it has either successfully recovered or settled for amounts totaling R22.7 million. This is in addition to the debt recovery of R38 million from JCI last year.

“The Board would also like to confirm that Roger Kebble resigned from all DRDGOLD-related Boards in June 2002 and severed all links with the company at that time. At no time did either JCI or Randgold have any controlling shareholding in DRDGOLD, and it has now become public knowledge that Randgold’s approximate 11% shareholding in DRDGOLD was “dissipated” some time ago.

“DRDGOLD is unconnected with any of the investigations pursuant to the losses uncovered in JCI and Randgold. Equally, the late Brett Kebble had no connection with the company at any time.

“Our work to recover assets due to DRDGOLD wherever possible is not yet completed and we will continue in our efforts. We are now proceeding to trial on the Rawas claim for an amount in excess of R78 million against various individuals, Continental Goldfields Limited (an Australian company) and JCI, together with certain of JCI’s subsidiary companies.”

Note to editors:

For background information please go to www.drdgold.com: click Investor info; click Archive and scroll down to ‘A letter to shareholders from DRD Chairman and CEO Mark Wellesley-Wood regarding a communication from the DRD Board dealing with corporate governance, 29 April, 2003

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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Disclaimer:

Many factors could cause the 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 DRDGOLD or difficulties in maintaining necessary licences or other governmental approvals, changes in DRDGOLD's competitive position, changes in business strategy, any major disruption in production at 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 2005, which we filed with the United States Securities and Exchange Commission on 15 December 2005 on Form 20-F. 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.