Media releases

DRDGOLD subsidiary Emperor agrees to sell its interest in Porgera to Barrick

Details

Published: Thursday, 12 April 2007 02:00

DRDGOLD Limited Australian subsidiary Emperor announced today that it has entered into a conditional agreement to sell its 20% interest in the Porgera Joint Venture in Papua New Guinea to Barrick. Johannesburg, South Africa: 12 April 2007. DRDGOLD Limited (JSE: DRD; NASDAQ: DROOY) Australian subsidiary Emperor Mines Limited (Emperor) announced today that it has entered into a conditional agreement to sell its 20% interest in the Porgera Joint Venture (PJV) in Papua New Guinea (PNG) to Barrick Gold Corporation (Barrick).

Total consideration for the sale is US$250 million subject to an additional adjustment amount, to be paid in cash, with the transaction expected to be completed within four months (subject to the timing of receipt of the relevant regulatory approvals).

The transaction is subject to a number of conditions, including the approval of Emperor and DRDGOLD shareholders, certain PNG and South African regulatory approvals and the approval of Emperor’s financiers, Australian and New Zealand Banking Group Limited (ANZ). The board of DRDGOLD is supportive of the transaction and has advised Emperor that it intends to recommend that its shareholders vote in favour of the transaction at a general meeting to be convened.

John Sayers, CEO of DRDGOLD, commented: “The transaction delivers significant value to all shareholders of Emperor, including DRDGOLD. The sale price represents a full price for Emperor's interest in Porgera. Importantly, proceeds from the divestment of Porgera will allow Emperor to repay debt in full.”

Following the sale of the PJV interest, Emperor’s key assets will include the wholly owned Tolukuma gold mine in PNG, as well as a significant PNG gold and copper/gold exploration portfolio. In due course, Emperor expects to make a more detailed announcement in relation to its future strategy.

For further information, please refer to Emperor’s announcement to the Australian Securities Exchange.

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)

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

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DRDGOLD is a medium-sized, unhedged gold producer with investments in South Africa and Australasia.
In South Africa, the company has a 74% interest in DRDGOLD South African Operations (Pty) Limited (DRDGOLD SA), while in Australasia, it has a 78.72% interest in Emperor Mines Limited.
In the 2006 financial year, DRDGOLD SA contributed 60% or 315 976 ounces – of total attributable gold production of 527 401 ounces, and Emperor 211 425 ounces. At 30 June 2006, DRDGOLD’s total attributable resource base was 47.6 million ounces and its total attributable reserves were 8.8 million ounces.
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 iscal year ended 30 June 2006, which we filed with the United States Securities and Exchange Commission on 22 December 2006 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.