AngloGold Ashanti will continue to fund exploration Dynasty Gold"s Red Valley and Wild Horse gold projects this year.

Following the success of the 2006 exploration season at the Red Valley gold project in Qinghai Province, AngloGold Ashanti, through its subsidiary AngloGold China Holdings Limited has confirmed its interest in continuing to explore at the project this year.

Dynasty's agreement with AngloGold Ashanti is expected to include plans to continue joint exploration at the Wild Horse project in Gansu Province, subject to Dynasty completing the acquisition of the business licence for the Gansu Sino-Foreign joint venture company. Dynasty expects the the licence to be issued soon. 

Dynasty's Red Valley and Wild Horse projects encompass more than 14,000
sqkm of land in the provinces of Qinghai and Gansu, respectively, in north-western China. Both projects are located within the Qilian metallogenic belt, in areas of known gold mineralization, and are considered by the company to be highly prospective for large mineral deposits.

Dynasty's wholly-owned subsidiaries hold 70% of each of the Sino-Foreign Joint Ventures (SJV) which manage these projects, and can earn an 80% interest with additional expenditures over the next several years.

AngloGold Ashanti reviewed the properties and recognized the potential for the identification of significant mineral deposits at both locations.  In February last year, AngloGold Ashanti took an equity interest in Dynasty for a total 8.74% stake in the company. 

Last year, a joint exploration team completed a 5397 metre diamond drill program at Red Valley, as well as mapping, surface sampling and geophysical surveying.  Drilling revealed numerous intersections of gold, and combined with the other work on the project, provided a more detailed geological interpretation that will enable Dynasty and AngloGold Ashanti to pursue the delineation of a gold deposit in 2007.

 The Wild Horse project has been subject to reconnaissance exploration work and satellite imagery analysis that has resulted in the definition of high-priority exploration targets. Both Dynasty and AngloGold look forward to the completion of the business license acquisition so that a detailed exploration program can be initiated to pursue the many targets of interest.