ESAASE CONCESSION

Akrokeri-Ashanti Gold Mines has petitioned Bonte Gold Mines Limited, its 85%-controlled Ghanaian subsidiary that operates the Bonte gold mine and holds a 30-year mining lease on the Esaase property, into official liquidation in Ghana. Production levels at the Bonte gold mine have remained low due to the shortage of dependable, operating mining equipment and the low grade of the alluvial material that is presently being mined. The exploration program implemented by Akrokeri that was cancelled due to lack of funds was unable to identify new areas of higher-grade ore. Moreover, recent attempts to further reduce costs and increase cash flow at the Bonte gold mine operations have been unsuccessful and Akrokeri and Bonte continue to be severely constrained by their high levels of debt and poor cash flow, despite the suspension of payments on Akrokeri's 14% Convertible Subordinated Debentures and 18% Secured Notes, as previously announced by the Corporation. On March 4, 2004, Bonte received a letter of demand from its largest creditor for USD3.4 million and is unable to meet this demand or any future pending demands for payment of overdue debt.

The processing plant located on the property was shut down, expanded in capacity and moved to the adjacent Jeni property. No production was taking place at the Esaase property at that time.

The processing plant located on the property was shut down, expanded in capacity and moved to the adjacent Jeni property. No production was taking place at the Esaase property at that time.