1. 1 NewGold Gold Bullion Debentures NewGold Issuer Limited Incorporated in the Republic of South Africa Registration number 2004/014199/06

2. 2 Disclaimer NewGold Gold Bullion Debentures (“NewGold”) are issued by NewGold Issuer Limited, in association with Absa and the World Gold Council. Potential investors should be aware, however, that neither Absa nor the World Gold Council is in any way responsible for NewGold Gold Bullion Debentures, or for any information provided in respect of NewGold Gold Bullion Debentures, nor do or will either of them provide any guarantee as to the performance of NewGold Gold Bullion Debentures. This document is intended for general information purposes only and does not promote, make any recommendation in relation to, or provide any advice, or forecast, as to investment in NewGold Gold Bullion Debentures. In addition past performances of the gold price is not necessarily indicative of its future performance.

3. 3 Gold “The desire for gold is the most universal and deeply rooted commercial instinct of the human race." Gerald M. Loeb “Gold is forever. It is beautiful, useful, and never wears out. Small wonder that gold has been prized over all else, in all ages, as a store of value that will survive the travails of life and the ravages of time." James Blakely “Gold has worked down from Alexander's time... When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory.” Bernard M. Baruch “Gold still represents the ultimate form of payment in the world.” Alan Greenspan, Chairman of the Federal Reserve Board of the United States of America

4. 4 Summary NewGold Gold Bullion Debentures (“NewGold”) are securities listed on the JSE Securities Exchange within the Exchange Traded Funds sector, under the symbol GLD Issued by NewGold Issuer Limited, a public company incorporated in the RSA Joint initiative with the World Gold Council Proceeds of the issue of NewGold Gold Bullion Debentures utilised to acquire gold bullion, in the form of 400oz London Good Delivery Bars. All the Debentures in issue are 100% backed by allocated gold bullion NewGold Gold bullion is held in safe custody by the NewGold Custodian, Rand Refinery Limited Initially valued at 1/100 of one fine troy ounce of gold; NewGold is designed to track the price of gold less expenses Provides investors with a simple, cost-effective and secure means of buying, holding and selling gold bullion

5. 5 Investment in gold Treasured as a store of value for thousands of years, gold is an important and secure asset. Some of the factors that should be considered by the potential investors -  Gold is an effective portfolio diversifier, …  … a store of value,  … a safe haven investment,  … a low risk investment compared to gold stocks,  … has positive track record in terms of returns, compared to the broad market,  … is an excellent rand hedge,  … as well as an excellent USD hedge.

6. 6 Investment in gold Key factors that support the investment case for gold include: Strategic  Effective portfolio diversifier  Store of value  Safe haven in turbulent times  Attractive alternative asset Tactical  Current gold industry fundamentals  Current economic fundamentals Practical  Liquid, 24 hour market  Recognized as a global “currency”

7. 7 Investment in gold Gold is an effective portfolio diversifier… Gold has low to negative correlation with other asset classes, making it an excellent portfolio diversifier

8. 8 Investment in gold – SA asset allocation Source: World Gold Council: “The Role of Gold in South African Investment Portfolio”, September 2004

9. 9 Investment in gold … a store of value, Over the long run, gold price has outperformed inflation significantly

10. 10 Investment in gold Gold is among only a handful of financial assets that is not matched by a liability. It can provide 'insurance' against extreme movements on the value of traditional asset classes that can happen in unsettled times. It concentrates a lot of value in a small volume. Some recent examples of the refuge afforded by gold include:  During the 1987 stock market crash, gold proved itself the most effective way of raising cash to meet immediate needs.  In 1997/98 the Government of South Korea asked its citizens to allow it to buy their gold holdings in exchange for local currency debt instruments. The Government raised over five million ounces of gold in this way which it sold for hard currency. As a result it was able to service its external debt.  Fearful of the implications of the forecast electronic and communications disaster surrounding Y2K, there was a flight to gold in 1999.  The first quarter of 2002 saw a flight to gold by Japanese investors as they awaited the withdrawal of government guarantees on bank deposits. … a safe haven investment,

11. 11 Investment in gold … a low risk investment compared to gold stocks, Gold returns are significantly less volatile than the returns on gold equities, and on par with the broad market Period ending:South Africa: annualised historical volatility of returns 31-Jul-04 One monthRanking Three monthRanking Six monthRanking Twelve monthRanking JSE Midcap7.05%225.45%518.43%314.30%1 Gold (USD/oz)13.39%315.86%116.00%115.21%2 JSE All Share14.26%425.23%419.69%417.71%3 JSE Top 40 Tradable Index16.10%625.71%620.42%518.84%4 Gold (ZAR/oz)14.96%516.17%217.16%218.98%5 ZAR/USD21.43%717.63%320.54%620.38%6 JSE Smallcap5.62%151.00%836.12%726.18%7 JSE Diamond Index41.87%1046.44%737.06%833.23%8 JSE Platinum Mining Index27.86%868.10%951.02%942.38%9 JSE Gold Mining Index31.57%973.95%1055.78%1046.20%10

12. 12 Investment in gold … has positive track record in terms of returns, compared to the broad market,

13. 13 Investment in gold … is an excellent rand hedge,

14. 14 Investment in gold … as well as an excellent USD hedge

15. 15 Securitising gold Low investors’ interest in gold for the following reasons –  Regulatory environment – In SA, holding of unwrought gold prohibited; gold considered to be foreign currency; the only allowed gold investments Krugerrands  Gold is not part of investors’ benchmarks  Exposure to gold is limited to gold mining equities (this is not the same investment)  Physical gold is traded OTC and therefore is excluded from the investment universe  Physical transaction and ownership is cumbersome and unfamiliar to most investors, i.e., custody arrangements, insurance, settlement etc.  Channels are not properly developed for the retail investor, and costs associated with physical purchases are high

16. 16 Securitising gold Securities linked to gold bullion, in contrast, are –  Easily accessible and simple - listed on an exchange, quoted in local currency, with no minimum investment required, and with no physical delivery of underlying asset required  Secure – 100% backed by allocated gold, gold is not lent, no derivatives are employed  Cost effective – brokerage charges similar to quoted equities, tracking error compares favourably with major ETF’s, typically less than cost of buying, storing, and insuring physical gold (<30bpts bid/offer spread)  Liquid – market makers ensure liquidity in the secondary market; underpinned by liquidity of global gold market; liquidity not limited to secondary market – can be created and redeemed to meet market demand;

17. 17 Gold securities worldwide Currently, two gold-linked securities listed: 03/03 ASX - “GOLD”; 12/03 LSE - “GBS” US$716m of assets, 1.72mozs gold Average daily trading of US$15-25 million Three additional filings: two in US, one in Europe.

18. 18 NewGold – features NewGold Gold Bullion Debentures are securities listed on the JSE Securities Exchange in the Exchange Traded Funds sector, under the symbol GLD Issued by NewGold Issuer Limited, a public company incorporated in the RSA, Registration Number 2004/014199/06 SARB approved – current annual limits on gold-linked ETFs are 500,000oz of gold per annum (starting Nov 1, 2004) Not a Collective Investment Scheme (CIS) Initially valued at 1/100 of one fine troy ounce of gold (“Initial quantity” – the quantity of gold bullion the debenture is referenced and linked on the issue date) Annual fees 0.4% p.a; discharged by reducing the quantity of gold the debenture is referenced to

19. 19 NewGold – features Qualifying investors can redeem in gold Qualifying investors – holding at 400,000 securities, an in possession of all necessary licenses, consents and approvals (including, without limitation, the required approvals in terms of the Mining Rights Act, 20 of 1967, and under Regulations 2 and 5 of the Exchange Control Regulations) to buy, own, be in possession of and/or otherwise deal in Gold Bullion); IPO – subscriptions in cash, in specie, minimum application R1,000 Post listing, subscription in specie only (minimum 400,000 securities, possession of all necessary licenses, consents and approvals) Creation and redemption fees: 0.15% (wavered pre-listing) Secondary market – ACMB acting as a market maker.

20. 20 Structure NewGold Owner Trust 100% (beneficially held) Debenture Holders Gold Bullion Debentures (tracking the value of gold bullion and listed on the JSE NewGold Issuer Limited Custodian (Rand Refinery Limited) NewGold purchases Gold Bullion and concludes the Custody Agreement in relation thereto NewGold Manager (Pty) Limited Absa Bank Limited Bridging Loan Agreement 49% 51% Management Agreement and payment of agreed management fee

21. 21 Mechanics – IPO Investors – subscription in cash JSE / STRATE NewGold Issuer NewGold Manager Custodian (Rand Refinery) NewGold Issuer’s allocated account Qualifying investor’s account GLD ZAR Qualifying investor – subscription in specie GLD GLD CREATION INSTRUCTIONS APPLICATION FORM INSTRUCTIONS ZAR GLD CREATION GOLD BULLION

22. 22 Mechanics – post-listing Investors – secondary market JSE / STRATE Market maker NewGold Issuer NewGold Manager Qualifying investor – primary market Custodian (Rand Refinery) Market maker’s account NewGold Issuer’s allocated account Qualifying investor’s account GLD ZAR GLD CREATIONS / REDEMPTIONS – IN SPECIE DELIVERY GOLD BULLION INSTRUCTIONS secondary market

23. 23 Taxation – debenture holders The gain made by Debenture Holders from the acquisition and disposal of Gold Bullion Debentures will, depending on the circumstances of each Debenture Holder, be subject to income tax, CGT or will not be taxable at all, for example, if the Debenture Holder is tax-exempt or, subject to certain requirements, is not a South African resident. Applicants are advised to consult with their tax advisers on this aspect. Debenture Holders will be liable for VAT on Creation Fees, Redemption Fees and any sales of Gold Bullion to them by NewGold Issuer. Debenture Holders will reimburse NewGold Issuer for the UST incurred by it on the issue of Gold Bullion Debentures to them. Debenture Holders will reimburse their respective CSDPs for any UST incurred on the disposal (including redemptions) by them of Gold Bullion Debentures.

24. 24 NewGold - product participants ACMBOriginator, administration WORLD GOLD COUNCILMarketing partner JAVA CAPITALSponsor RAND REFINERYCustodian ACMB/ABSA STOCKBROKERSMarket maker ABSA STOCKBROKERSParticipating broker AIMSInvestment plan admin, information agent ABSA INVESTOR SERVICESCSDP KPMGAuditors WERKSMANS, INCAttorneys

25. 25 Salient dates *Ramp up period: variable depending on prevailing market conditions but shall be maximum period of three trading days for cash subscriptions equal to or less than R1bn, and a maximum period of five trading days for cash subscriptions in excess of R1bn Opening date of the initial offer25 October 2004 Closing date of the initial offer29 October 2004 Listing date (in specie subscription)2 November 2004 Listing date (cash subscription)Two business days after the expiry of the ramp-up period* Announcement of offer price in respect of initial offer (cash subscriptions) One business day after the expiry of the ramp-up period Announcement of offer price in respect of initial offer (in specie subscription) 1 November 2004

26. 26 Contacts Dr Vladimir Nedeljkovic, ACMB  +27 (11) 350-2632  vladimirn@absa.co.za vladimirn@absa.co.za Tjaart Kruger, ACMB  +27 (11) 350-2635  tjaartk@absa.co.za For Manager: Mitesh Gosai, ACMB  +27 (11) 350-8075  miteshg@absa.co.za miteshg@absa.co.za NewGold Call Centre  0860 122 122  +27 (11) 276 3958 for callers outside South Africa WWW.ABSA.CO.ZA