INTEGRATED REPORT 2014   ANNUAL FINANCIAL STATEMENTS 2014    
Gold Fields
Integrated Annual Report
for the year ended 31 December 2014

Introduction

The Gold Fields (GFI) portfolio consists of eight operating assets and a limited number of exploration or early stage projects, which are grouped into four regions. The Australia region consists of the St Ives, Granny Smith, Agnew and Darlot operations, as well as the FSE project. The Americas region comprises the Cerro Corona mine and the Salares Norte and Woodjam projects. South Deep Gold Mine is the only operation in the South Africa region, while the Tarkwa and Damang mines
in Ghana comprise the West Africa region.

The strategic decision in 2013 to focus the Group on ‘ounces in production’, coupled with the key strategic decision to focus on quality, cash-accretive ounces, rather than greenfields exploration and project development, resulted in the majority of the growth projects being classified as ‘assets for sale’. The Mineral Resource Management strategy clearly positions the group for margin, cash flow and growth, on a per share and per ounce basis. To date three ‘non-core’ projects: Talas in Kyrgyzstan, Yanfolila in Mali and Chucapaca in Peru have been successfully divested. Both the FSE project in the Philippines and the Salares Norte project in Chile, continue to demonstrate
the potential for significant future shareholder value and with a focus on realising this, they remain key assets in the portfolio.

In response to the downturn of the gold price, a number of initiatives have been implemented to assist in protecting the viability of the operations and building a sustainable business that continues to deliver cash flow and superior growth in shareholder value. This is all undertaken while effectively still retaining longer-term optionality, so the portfolio can remain leveraged to future gold price fluctuations.

The key initiatives include:

Use of a consistent planning gold price of US$1,300/oz and US$3.0/lb for copper but with a targeted margin of 15% to protect the quality of the ore bodies and to ensure the Mineral Reserve is resilient to metal price changes
Surface Mineral Resources are constrained by open-pit shells based on metal prices of US$1,500/oz for gold and US$3.5/lb for copper and underground Mineral Resources are spatially constrained within estimated mining volumes. This approach is adopted to eliminate the inclusion of non-contiguous mineralisation from Mineral Resource estimates
Elimination of marginal mining at all the operations, as a result of higher cut-off grades generally applied at each mine
A commitment to ongoing near-mine exploration to drive the development of a focussed and steady pipeline of highquality Brownfield projects that will, over time, further enhance overall cash returns
Rationalisation of capital expenditure to underpin increased cash flow without compromising the future integrity of the assets
Corporate, regional and operational structures have been rationalised in conjunction with the strengthening of the regionalised model. The regions are now appropriately resourced to focus on building a sustainable business

Importantly, the Mineral Resources and Mineral Reserves are anchored at the operations by the maintenance of sound stakeholder relationships based on Shared Value creation, aimed at supporting community development. Combining the latter with rigorous quality control on environmental compliance and an emphasis on the security of water and power, the Group’s Mineral Reserves enjoy a strong, sustainable development underpin.

At the end of December 2014, Gold Fields has total managed Mineral Resources, inclusive of growth projects, of 128.2 (136.7) million ounces (Moz) of gold and 13,666 (14,038) million pounds (Mlb) of copper respectively. Managed Mineral Resources (excluding projects) are 103.9 (108.0) Moz gold and 1,006 (1,124)Mlb copper net of depletion. The corresponding total managed gold and copper Mineral Reserves are 52.1 (52.6)Moz net of 2.1Moz depletion, and 623 (712)Mlb, net of 71Mlb depletion respectively.

The Gold Fields Mineral Resource and Mineral Reserve guiding principle is to ensure integrity, transparency and materiality in reporting, compliance with public regulatory codes and internal standards, and to inform all stakeholders on the status of the Group’s fundamental asset base. Gold Fields is a midtier, unhedged producer of gold, with attributable, annualised production of ~2.0Moz of gold and ~70Mlb of copper from eight operating mines located in Australia, South Africa, Peru and Ghana.

The Mineral Resources and Mineral Reserves outlined in this overview provide the key anchor point for sustained operational excellence, the generation of cash and margin, asset net present values and a secure future for Gold Fields. The information in this report is presented on a Group and regional basis in appropriate detail, summarising the current status and changes at each operation and growth project. This report should be read in conjunction with the Integrated Annual Report (IAR), which provides additional information regarding the operations and their financial performance.

Important notices

1. All Mineral Resource and Mineral Reserve figures reported are managed by Gold Fields unless otherwise stated.
2. Mineral Resources are reported inclusive of Mineral Reserves and Mineral Resources include stability pillars when appropriate (December 2013 statement’s numbers are shown in brackets).
3. The Mineral Resources and Mineral Reserves are estimates at a point in time and will be affected by changes in the gold price, US dollar currency exchange rates, permitting, changes in legislation, costs and operating parameters.
4. Rounding-off of figures in this report may result in minor computational discrepancies. Where this occurs it is not deemed significant.
5. All references to tonnes (t) are metric units
6. The 31 December 2014 Mineral Resource and Mineral Reserve figures are net of depletion.
7. Locations on maps are for indication only.
8. All metals (gold, platinum, palladium, silver, copper and nickel) are reported individually and not as metal equivalents.

Note: For abbreviations refer to page 134 and for glossary of terms refer to page 135 –‘Mineral Resource and Mineral Reserve Supplement 2014’.