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Arrow Statement of Responsibility
Arrow Report of the Independent Auditors
Arrow Corporate Secretary’s Confirmation
Arrow Management’s Discussion and Analysis of the Financial Statements
Arrow Directors’ Report
Arrow Accounting Policies
Arrow Consolidated Income Statement
Arrow Consolidated Balance Sheet
Arrow Consolidated Statement of Changes in Equity
Arrow Consolidated Cash Flow Statement
Arrow Notes to the Consolidated Financial Statements
Arrow Company Income Statement
Arrow Company Balance Sheet
Arrow Company Statement of Changes in Shareholders’ Equity
Arrow Company Cash Flow Statement
Arrow Notes to the Company Annual Financial Statements
Arrow Major Group Investments – Direct and Indirect
Arrow Segment Report
Arrow Shareholders’ Information
Arrow Operating and Financial Information by Mine
Arrow Notice of Annual General Meeting
Arrow Administration and Corporate Information
Arrow Glossary of Terms
Arrow Proxy Form
Arrow Notes to Form of Proxy
   
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GLOSSARY OF TERMS

ABET
Adult Basic Education and Training

AS/NZ 4801
Australian occupational health and safety management standards

Backfill
Material generally sourced from mine residues and utilised for the filling of mined voids, to ensure long-term stability of excavations and minimise the effects of seismic activity

BEE
Black Economic Empowerment. BEE seeks to ensure that black persons within South Africa gain a significant degree of control in the economy through the possession of equity stakes and the holding of management positions within an institution

Blasthole
A drill hole in a mine that is filled with explosives in order to blast loose a quantity of rock

Bore-hole or drill-hole
Method of sampling rock that has not been exposed by means of obtaining a core of rock (see diamond drill)

Box-hole
A cross raise, normally from the access cross-cut to the reef horizon, for the purpose of drawing broken rock and ore from the reef horizon into a conveyance in the crosscut

Breast mining
A mining method whereby mining advances in the direction of strike

Bulk mining
Any large-scale, mechanised method of mining involving many thousands of tons of ore being brought to surface each day

BVQI
Bureau Veritas Qualite International is a leading global and independent certification body that audits and certifies whether company systems meet the requirements of ISO standards

Carbon-in-Leach
The recovery process in which gold is leached from gold ore pulp by cyanide and simultaneously adsorbed onto activated carbon granules in the same vessel. The loaded carbon is then separated from the pulp for subsequent gold removal by elution. The process is typically employed where there is a naturally occurring gold adsorbent in the ore

Development
Is any tunnelling operation, which has for its object either exploration, exploitation or both

Diamond drill
A rotary type of rock drill that cuts a core of rock that is recovered in long cylindrical sections

Dilution
Waste or material below the cut-off grade that contaminates the ore during the course of mining operations and thereby reduces the average grade mined

Dip
Angle of inclination of a geological feature/rock from the horizontal

Dyke
Thin, tabular, vertical or near vertical body of igneous rock formed by the injection of magma into planar zones of weakness

Elution
The chemical process of desorbing gold from activated carbon

Face
The end of a drift, cross-cut or stope at which work is taking place

Facies
A rock unit defined by its composition, internal geometry and formation environment, usually reflecting the conditions of its origin

Fatality rate
Number of deaths per million man-hours worked

Fault
The surface of a fracture along which movement has occurred

Feasibility study
A comprehensive design and costing study of the selected option for the development of a mineral project in which appropriate assessments have been made of realistically assumed geological, mining, metallurgical, economic, marketing, legal, environmental, social, governmental, engineering, operational and all other modifying factors, which are considered in sufficient detail to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable) and the factors reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The overall confidence of the study should be stated

Indicated Mineral Resource
That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed

Inferred Mineral Resource
That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes which may be limited or of uncertain quality and reliability

ISO 14000
International standards for organisations to implement sound environmental management systems

LDIFR
Lost Day Injury Frequency Rate. Number of lost day injuries expressed in million man hours worked

Lock-up gold
Gold locked as a temporary inventory within a processing plant, or sections thereof, typically milling circuits

Measured Mineral Resource
That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drillholes. The locations are spaced closely enough to confirm geological and grade continuity

Milling
A general term used to describe the process in which the ore is crushed and ground and subjected to physical or chemical treatment to extract the valuable metals to a concentrate or finished product

Mine Health and Safety Act (MHSA)
The South African Mine Health and Safety Act, No 29 of 1996

Mineral Resource
A ‘Mineral Resource’ is a concentration or occurrence of material of economic interest in or on the earth’s crust in such form, quality and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, or estimated from specific geological evidence, sampling and knowledge interpreted from an appropriately constrained and portrayed geological model. Mineral Resources are subdivided, and must be so reported, in order of increasing confidence in respect of geoscientific evidence, into Inferred, Indicated or Measured categories

Probable Mineral Reserve
The economically mineable material derived from a Measured and/or Indicated Mineral Resource. It is estimated with a lower level of confidence than a Proved Mineral Reserve. It is inclusive of diluting materials and allows for losses that may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out and including consideration of and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction is reasonably justified

Project capital
Capital expenditure which is associated with specific projects of a non-routine nature

Proved Mineral Reserve
The economically mineable material derived from a Measured Mineral Resource. It is estimated with a high level of confidence. It is inclusive of diluting materials and allows for losses that may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, including consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction is reasonably justified

Reef
Gold bearing sedimentary horizon in the Witwatersrand Basin

SADC
Southern African Development Community

SAMREC Code
The South African code for the reporting of exploration results, Mineral Resources and Mineral Reserves (the SAMREC Code) 2007 Edition

Seismic
Earthquake or earth vibration including those artificially induced by mining operations

Sequential Grid Mining
Mining method incorporating dip pillars and mined on a grid system

Shaft
An opening cut downwards from the surface for transporting personnel, equipment, supplies, ore and waste

Shear
A deformation resulting from stresses that cause contiguous parts of a body of rock to slide relative to each other in a direction parallel to their plane of contact

 

Carbon-in-Pulp
The recovery process in which gold is first leached from gold ore pulp by cyanide and then adsorbed onto activated carbon granules in separate vessels. The loaded carbon is then separated from the pulp for subsequent gold removal by elution

Capital expenditure (or capex)
Specific project or ongoing expenditure for replacement or additional equipment, materials or infrastructure

Channel
Water course, also in this sense sedimentary material course

Collective Bargaining Agreement
Collective Bargaining Agreement means a written agreement concerning terms and conditions of employment or any other matter of mutual interest concluded by a trade union(s) and the company

Co-morbidity
Medical term for diseases that commonly co-exist to increase the risk of morbidity

Comminution
The term used to describe the process by which ore is reduced in size in order to liberate the desired mineral from the gangue material in preparation for further processing

Concentrate
A metal-rich product resulting from a mineral enrichment process such as gravity concentration or flotation, in which most of the desired mineral has been separated from the waste material in the ore

Conglomerate
Sedimentary rock comprising eroded, rounded pebbles

Cross-cut
A horizontal underground drive developed perpendicular to the strike direction of the stratigraphy

Cut-off grade
The lowest grade of mineralised rock cut-off grade which determines as to whether or not it is economic to recover its gold content by further concentration

Decline
A surface or sub-surface excavation in the form of a tunnel which is developed from the uppermost point downward

Depletion
The decrease in quantity of ore in a deposit or property resulting from extraction or mining

Filtration
Process of separating usually valuable solid material from liquid

Flotation
The process by which the surface chemistry of the desired mineral particles is chemically modified such that they preferentially attach themselves to bubbles and float to the pulp surface in specially designed machines. The gangue or waste minerals are chemically depressed and do not float, thus allowing the valuable minerals to be concentrated and separated from the undesired material

Footwall
The underlying side of an ore body or stope

Gold equivalent
A quantity of metal (such as copper) converted to an amount of gold in ounces, based on accepted gold and other metal prices. i.e. The accepted total value of the metal based on its weight and value thereof divided by the accepted value of one troy ounce of gold

Grade
The quantity of gold contained within a unit weight of goldbearing material generally expressed in grams per metric tonne (g/t)

Hanging wall
The overlying side of an ore body or slope

Haulage
A horizontal underground excavation which is used to transport mined ore

Head grade
The grade of the material delivered to the processing facility (such as heap leach pad, Mill etc.). The Mineral Reserve declaration is for material as delivered to the processing facility

Hedging
Taking a buy or sell position in futures market. Opposite to a position held in the cash/spot market to minimise the risk of financial loss from an adverse price change

Hydrothermal
Process of injection of hot, aqueous, generally mineral-rich solutions into existing rocks or features

ICVCT
Informed Consented Voluntary Counselling and Testing

Mineral Reserve
A ‘Mineral Reserve’ is the economically mineable material derived from a Measured or Indicated Mineral Resource or both. It includes diluting and contaminating materials and allows for losses that are expected to occur when the material is mined. Appropriate assessments to a minimum of a Pre- Feasibility Study for a project and a Life of Mine Plan for an operation must have been completed, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the modifying factors). Such modifying factors must be disclosed

Mineralised
Rock in which minerals have been introduced to the point of a potential ore deposit

Minerals Act
The South African Minerals Act, No 50 of 1999

Normal fault
Fault in which the hanging wall moves downward relative to the footwall, under extensional tectonic conditions

Notional cash expenditure (NCE)
NCE is defined as operating costs plus capital expenditure and is reported on a per kilogram and per ounce basis.

Nugget effect
A measure of the randomness of the grade distribution within a mineralised zone

NUM
National Union of Mine Workers

OHSAS
Management system standards, developed in order to facilitate the integration of quality and occupational health and safety management systems by organisations

Payshoot
Linear to sub-linear zone within a reef for which gold grades
or accumulations are predominantly above the cut-off grade

Pillar
Rock left behind to help support the excavations in an underground mine

Stope
The working area from which ore is extracted in an underground mine

Stripping
The process of removing overburden or waste rock to expose ore

Stripping ratio
The ratio of waste tonnes to ore tonnes mined calculated as total tonnes mined less ore tonnes mined divided by ore tonnes mined

Stratigraphy
The science of rock strata, including arrangement according to geographical positioning and chronological order of sequence

Strike
Direction of line formed by the intersection of strata surfaces with the horizontal plane, always perpendicular to the dip direction

Sub-vertical shaft
An opening cut below the surface downwards from an established surface shaft

Surface sources
Ore sources, usually dumps, tailings dams and stockpiles, located at the surface

TEBA
The Employment Bureau of Africa

Tertiary shaft
An opening cut below the surface downwards from an established sub-vertical shaft

The Base Case
The Base Case is established as part of the financial models

Trade union
An association of employees: whose principal purpose is to regulate relations between employees and the company, which has been registered; whose officials have been elected to represent the interests of employees within the workplace; and which is recognised for collective bargaining by the company

Total cash costs
Total cash costs include cost of sales – excluding amortisation and depreciation, rehabilitation costs, general and administration costs, and exploration costs in accordance with the Gold Institute Industry Standard

Vamping
Is the final clean-up of track ballast and/or accumulations in gullies and along transportation routes

Abbreviations and units    
       
ABET Adult Basic Education and Training   SEC United States Securities Exchange Commission
ADS American Depository Shares   STI Sexually Transmitted Infection
AIDS Acquired Immune Deficiency Syndrome   TB Tuberculosis
ARC Assessment & Rehabilitation Centres   TEC Total Employees Costed
ART Antiretroviral therapy   UASA United Association of South Africa (a labour organisation)
CBO Community based organisation   VCT Voluntary Counselling & Testing (for HIV)
CIL Carbon-in-leach   cm centimetre
CIP Carbon-in-pulp   cm.g/t gold accumulation
CIS Carbon-in solution   g gram
DCF Discounted Cash Flow   g/t grams per metric ton – gold grade
ETF Exchange traded fund   Ha hectare
GFHS Gold Fields Health Service   kg kilogram
GFLC Gold Fields La Cima   km kilometre
GRI Global Reporting Initiative   koz thousand ounces
HBC Home Based Care   kt thousand metric tons
HDSA Historically disadvantaged South African   ktpa thousand metric tons per annum
HIV Human Immunodeficiency Virus   ktpm thousand tons per month
LoM plan Life-of-Mine plan   m2 square metre
LTIFR Lost Time Injury Frequency Rate, quoted in million man-hours   Moz million ounces
NGO Non-governmental organisation   oz fine troy ounce equalling 31.10348 grams
NUM National Union of Mineworkers   t metric ton
NYSE New York Stock Exchange   US$ United States dollar
MCF Mine Call Factor   US$m million United States dollars
OHC Occupational Health Centre   US$/oz United States dollar per ounce
OT Occupational Therapy   R South African rand
PHC Primary Health Clinic   R/kg South African rand per kilogram
PPI Producer Price Index   Rm million South African rands
SAMREC South African code for Reporting of Mineral Resources and Mineral Reserves   R/t South African rand per metric ton