Gold Fields

4.3.5 Mineral Resource and Mineral Reserve Statement

Gold Fields’ Mineral Resource and Mineral Reserve strategy is focused on realising each assets’ full potential through appropriate funding and technical investment in exploration, resource development and reserve growth to support operational flexibility and longer-term sustainability. Key deliverables are cash flow, profitability and return on investment. The strategic priorities are to:

• Build a quality portfolio of productive mines through active portfolio management
• Grow through value-accretive acquisitions and near-mine exploration
• Grow Reserves to increase critical mass and improve flexibility per operation
• Minimise marginal mining at all operations
• Divest growth projects that are not fully aligned with our business objectives
• Manage the environment responsibly
• Build strong relationship and trust in the communities where we operate

This declaration is based on a Mineral Resource gold price of US$1,500/oz (A$1,750/oz; R550,000/kg) and a Mineral Reserve price of US$1,200/oz (A$1,500/oz; R500,000/kg) for 2016 and 2017, reverting to US$1,300/oz (A$1,550/oz; R500,000/kg) post 2017. The initial gold price (US$1,200/oz) used for the Mineral Reserve declaration is within the guidelines of the US Securities and Exchange Commission (SEC), as it is lower than the three-year trailing average price of US$1,280/oz. The copper price used for Mineral Resource estimation is US$3.5/lb and for Mineral Reserves US$2.7/lb for 2016 and 2017, reverting to US$3.0/lb post 2017.

Although the US Dollar gold price used for the Mineral Reserves is close to the current spot price, the Group’s focus on strategically positioning the operations to deliver leading AIC, AISC and cash flow margins, underpins their resilience to gold prices periodically trending lower. Business planning, over the next five years, entails the selection of cut-off grades, optimised pit shells, pit staging and stope sequencing with the objective of ensuring that operations are sustainable and cash generative in the short to medium term at lower gold prices. The Group’s commitment to ongoing exploration and resource to reserve conversion aims to ensure a quality pipeline of Mineral Reserves that will maintain operational flexibility and assist in sustaining margins at varying gold prices going forward. Annual production alignment to relevant Mineral Reserve mill-head grades shows that, notwithstanding our focus on cash flow margins, we ensure retention of the longer term life-of-mine (LOM) integrity.

This section represents a condensed and consolidated overview of Gold Fields’ Mineral Resources and Mineral Reserves. Full details are available in the Gold Fields’ Mineral Resource and Mineral Reserve Supplement to the IAR. The Supplement contains a comprehensive review of the Group’s Mineral Resources and Mineral Reserves as at 31 December 2015, including additional detail on individual operations with respect to location, mine infrastructure, key operating statistics, geology, mining, processing, projects and sustainable development. It is available on the Gold Fields website at www.goldfields.com/inv_rep_ar.php

Corporate governance
The reporting of Mineral Resources and Mineral Reserves for Gold Fields operations and projects is undertaken in accordance with the principles and guidelines of the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code) and Industry Guide 7 for reporting to the SEC. Other relevant international codes are recognised where geographically applicable. The first version of the SAMREC Code was issued in March 2000, updated in 2007 and again amended in July 2009; the JSE subsequently incorporated this new version into its Listings and Reporting Requirements.

The respective operation-based Mineral Resource Managers, Technical Managers and relevant Project Managers have been designated as the Competent Persons in terms of SAMREC and take responsibility for the reporting of Gold Fields Mineral Resources and Mineral Reserves. Corporate governance on the overall regulatory compliance of these figures has been overseen and consolidated by the Gold Fields Group Competent Person, Tim Rowland, who consents to the disclosure of this Mineral Resource and Mineral Reserve Statement. Mr Rowland is Vice-President, Mineral Resource Management and Mine Planning, Pri-Sci Nat No 400122/00, BSc (Hons) Geology, MSc Mineral Exploration, GDE Mining Engineering and FSAIMM, FGSSA and GASA), with 30 years’ relevant experience in the mining industry. He is a permanent employee of Gold Fields.

In line with the Group’s commitment to sound corporate governance, this statement has been internally reviewed by regional and corporate technical and financial experts and, where applicable, also reviewed by leading independent mining consultancies. This declaration has been found to fulfil the requirements of the relevant reporting codes, and the procedure followed in producing the statement is aligned to the guiding principles of the United States’ Sarbanes-Oxley (SOX) Act of 2002.

The headline Mineral Resource and Mineral Reserve Statement as at 31 December 2015 is compared to the 31 December 2014 declaration in the graphs on this page. The Mineral Resource and Mineral Reserve figures are estimates at a point in time, and will be affected by fluctuations in the gold price,US Dollar currency exchange rates, costs, mining permits, changes in legislation and operating factors. All metal commodities are reported separately and not as gold equivalents.

Although all relevant permits may not be finalised and in place at the time of reporting, there is no reason to expect that these will not be granted. However, the length of the approval process for such permits may have an impact on the schedules stated. All financial models are based on current tax regulations at 31 December 2015.

All Mineral Resource and Mineral Reserve figures are on a managed basis unless otherwise stated. Mineral Resources are reported inclusive of Mineral Reserves and stability pillars when appropriate. The estimated volumes are reported in metric tonnes and rounding-off of figures may result in minor computational discrepancies, where this happens, it is not deemed significant.

At 31 December 2015, Gold Fields had total attributable gold and copper Mineral Resources of 102.2 million ounces (December 2014: 108.3 million ounces) and 5,912 million pounds (December 2014: 6,873 million pounds), respectively. Attributable gold and copper Mineral Reserves are46.1 million ounces (December 2014: 48.1 million ounces) and 532 million pounds (December 2014: 620 million pounds) respectively, net of mined depletion.

Mine design enhancements (including the implementation of a revised regional pillar reconfiguration at South Deep), the sale of the Woodjam project, as well as mining depletion for the year, were primarily responsible for the year-on-year reduction in managed Mineral Resources (-6.7 million ounces gold), while Mineral Reserves (-2.1 million ounces gold) decreased in line with mining depletion (2.1Moz), while gold lock-up from additional geotechnical pillars at South Deep were counterbalanced by discovery and modelling updates at the various operations.

The respective gold and copper Mineral Resource figures (December 2015) are inclusive of all eight operating mines, as well as the Arctic Platinum (APP), Salares Norte and Far Southeast (FSE) projects. Other commodities and metal by-products that are reported as part of the Mineral Resource (platinum, palladium, nickel and silver) are contained in the Mineral Resource and Mineral Reserve Supplement.

The South Africa region accounts for 74% of the Group’s managed gold Mineral Reserves, West Africa 16%, Australia 7% and the Americas 3%.

The South Africa region accounts for 56% of the Group’s managed gold Mineral Resources, West Africa 13%, Australia 9%, the Americas 2% and growth projects 20%.

Managed gold Mineral Resources		Managed gold Mineral Reserves

Gold Fields Mineral Reserve Statement as at 31 December 2015^1,2
Headline numbers

	Managed Mineral Resources										Attributable ounces
	31 Dec 2015					31 Dec 2014					31 Dec 2015		31 Dec 2014
Gold only	Tonnes (Mt)	Grade (g/t)	Gold (Moz)			Tonnes (Mt)	Grade (g/t)	Gold (Moz)			Gold (Moz)
Total operating mines –	856.6	3.54	97.609			903.9	3.58	103.925			90.157		96.187
Total projects –	1,127.0	0.66	23.933			1,164.6	0.65	24.271			12.053		12.104
Total operating mines & projects	1,983.5	1.91	121.542			2,068.5	1.93	128.196			102.210		108.291

Operational summary

	Managed Mineral Resources										Attributable ounces
	31 Dec 2015					31 Dec 2014					31 Dec 2015		31 Dec 2014
Gold	Tonnes (Mt)	Grade (g/t)	Gold (Moz)			Tonnes (Mt)	Grade (g/t)	Gold (Moz)			Mineral Resource (Koz)
Australia operations
Agnew	16.3	5.05	2,656			13.8	5.79	2,570			2,656		2,570
Darlot	1.2	6.51	260			1.1	7.18	263			260		263
Granny Smith	30.4	5.40	5,279			17.4	6.61	3,696			5,279		3,696
St Ives	29.1	3.35	3,141			30.1	3.63	3,508			3,141		3,508
Total Australia region	77.1	4.57	11,336			62.4	5.00	10,037			11,336		10,037
South African operation
South Deep	331.8	6.41	68,436			382.4	6.19	76,046			62,503		69,804
Total South Africa region	331.8	6.41	68,436			382.4	6.19	76,046			62,503		69,804
Peru operation
Cerro Corona	109.2	0.79	2,777			115.2	0.81	3,015			2,764		3,001
Total Americas region	109.2	0.79	2,777			115.2	0.81	3,015			2,764		3,001
Ghana operations
Damang	79.6	2.20	5,625			85.3	1.92	5,260			5,063		4,734
Tarkwa – open pits	192.2	1.38	8,511			193.7	1.39	8,679			7,660		7,811
Tarkwa – surface stocks	66.6	0.43	924			65.0	0.43	889			831		800
Total West Africa region	338.4	1.38	15,060			344.0	1.34	14,827			13,554		13,345
Gold only
GFL Operations – Total Gold	856.6	3.54	97,609			903.9	3.58	103,925			90,157		96,187

(Peru) – Cerro Corona	Tonnes (Mt)	Grade (% Cu)	Copper (Mlbs)			Tonnes (Mt)	Grade (% Cu)	Copper (Mlbs)			Attributable Copper (Mlbs)
Copper
Copper (Cu) only	102.0	0.41	914			108.0	0.42	1,006			910		1,001

1 Managed unless otherwise stated 2 Refer to the relevant mines for the historic grade and tonnage information

Gold Fields Mineral Reserve Statement as at 31 December 2015^1,2
Headline numbers

	Managed Mineral Reserves										Attributable ounces
	31 Dec 2015					31 Dec 2014					31 Dec 2015		31 Dec 2014
Gold only	Tonnes (Mt)	Grade (g/t)	Gold (Moz)			Tonnes (Mt)	Grade (g/t)	Gold (Moz)			Gold (Moz)
Total operating mines –	532.6	2.92	50.073			558.1	2.90	52.123			46.064		48.122
Total operating mines & projects	532.8	2.92	50.073			558.1	2.90	52.123			46.064		48.122

Operational summary

	Managed Mineral Reserves										Attributable ounces
	31 Dec 2015					31 Dec 2014					31 Dec 2015		31 Dec 2014
Gold	Tonnes (Mt)	Grade (g/t)	Gold (Moz)			Tonnes (Mt)	Grade (g/t)	Gold (Moz)			Mineral Reserve (Koz)
Australia operations
Agnew	3.4	6.16	670			3.6	7.44	865			670		865
Darlot	0.2	5.63	34			0.4	7.36	85			34		85
Granny Smith	7.0	5.86	1,310			4.5	6.02	872			1,310		872
St Ives	17.6	2.72	1,542			17.8	3.14	1,803			1,542		1,803
Total Australia region	28.1	3.93	3,555			26.3	4.28	3,625			3,555		3,625
South African operation
South Deep3	218.8	5.30	37,257			223.2	5.30	38,016			34,027		34,896
Total South Africa region	218.8	5.30	37,257			223.2	5.30	38,016			34,027		34,896
Peru operation
Cerro Corona	53.1	0.90	1,543			60.5	0.90	1,757			1,535		1,749
Total Americas region	53.1	0.90	1,543			60.5	0.90	1,757			1,535		1,749
Ghana operations
Damang	21.2	1.43	973			25.7	1.49	1,235			876		1,111
Tarkwa – open pits	144.8	1.25	5,822			157.4	1.30	6,601			5,240		5,941
Tarkwa – surface stocks	66.6	0.43	924			65.0	0.43	889			831		800
Total West Africa region	232.8	1.03	7,719			248.1	1.09	8,725			6,947		7,853
Gold only
Total Gold	532.6	2.92	50,073			558.1	2.90	52,123			46,064		48,122

(Peru) – Cerro Corona	Tonnes (Mt)	Grade (% Cu)	Copper (Mlbs)			Tonnes (Mt)	Grade (% Cu)	Copper (Mlbs)			Attributable Copper (Mlbs)
Copper
Copper (Cu) only	53.1	0.46	534			60.5	0.47	623			532		620

1 Managed unless otherwise stated 2 Refer to the relevant mines for the historic grade and tonnage information 3 South Deep Mineral Reserves are reported at head grade inclusive of ore and in-section waste tonnes, while the capital waste component is excluded

Gold Fields Mineral Resource Classification as at 31 December 2015

		Measured				Indicated				Inferred				Total
		Grade				Grade				Grade				Grade
		Mt	(g/t)	Koz		Mt	(g/t)	Koz		Mt	(g/t)	Koz		Mt	(g/t)	Koz
Cerro Corona (Gold only)		82,565	0.86	2,282		23,317	0.58	434		3,335	0.56	60		109,217	0.79	2,777
Agnew		1,136	4.25	155		9,228	5.62	1,667		5,985	4.34	835		16,348	5.05	2,656
Darlot						0,688	6.67	148		0,553	6.31	112		1,241	6.51	260
Granny Smith		2,545	6.57	538		16,398	5.26	2,772		11,446	5.35	1,969		30,389	5.40	5,279
St Ives		4,236	1.97	268		17,905	3.41	1,961		6,981	4.06	912		29,122	3.35	3,141
Total Australia		7,917	3.77	961		44,218	4.61	6,547		24,965	4.77	3,829		77,100	4.57	11,336
South Deep		110,115	3.42	12,123		190,191	7.91	48,339		31,550	7.86	7,974		331,856	6.41	68,436
Damang		13,865	1.52	677		58,076	2.33	4,357		7,665	2.40	591		79,606	2.20	5,625
Tarkwa (excluding stockpiles)		70,439	1.47	3,324		117,029	1.33	5,015		4,752	1.13	172		192,220	1.38	8,511
Tarkwa (including stockpiles)		137,004	0.96	4,247		117,029	1.33	5,015		4,752	1.13	172		258,785	1.13	9,435
Total West Africa		150,869	1.02	4,924		175,105	1.66	9,372		12,417	1.91	763		338,391	1.38	15,060
Total Gold Fields		351,465	1.80	20,290		432,832	4.65	64,692		72,267	5.43	12,626		856,564	3.54	97,609

Americas

Operations
The Americas region has a declared managed gold Mineral Resource of 2.8 million ounces at December 2015 (December 2014: 3.0 million ounces) and a gold Mineral Reserve of 1.5 million ounces (December 2014:1.8 million ounces). In addition, it has a managed copper Mineral Resource and Mineral Reserve of 914 million pounds (December 2014: 1,006 million pounds) and 534 million pounds (December 2014: 623 million pounds), respectively. The gold equivalent Mineral Resource and Mineral Reserve equates to 4.9 million ounces and 2.8 million ounces respectively. Of this, 99.53% is attributable to Gold Fields. These figures are net of 240,000 ounces of gold and about 79 million pounds of copper from mined depletion in 2015.

Salares Norte project

Gold Fields holds a 100% interest in the Salares Norte project, which is situated in the Maricunga Belt, Atacama region, in northern Chile. The project has a Mineral Resource of 26.8Mt, containing 3.3 million ounces gold and 42.1 million ounces silver, of which approximately 30% is categorised in the Indicated Mineral Resources category.

Australia

Operations
The Australia region has a declared managed gold Mineral Resource of 11.3 million ounces (December 2014: 10.0 million ounces) and a gold Mineral Reserve of 3.6 million ounces (December 2014: 3.6 million ounces) and is 100% attributable to Gold Fields. These figures are net of 1.0 million ounces from mined depletion in 2015, with replacement occurring mostly at the underground Wallaby ore body at Granny Smith. A strong emphasis on exploration funding and project pipeline development from the orogenic style mineralisation in the region continues so as to maintain momentum on discovery and resource development opportunities to supply the next generation of open pit and underground mines.

Far Southeast project
Gold Fields holds a 40% interest in the Far Southeast project, which is situated in the mining district of Mankayan in Northern Luzon, Philippines. An Inferred Mineral Resource of 891.7Mt at 0.7g/t Au and 0.5% Cu for 19.8 million ounces of gold and 9,921Mlb of copper was declared in September 2012 for the Far Southeast deposit – this remains unchanged as at December 2015. This resource is reported within an optimised underground bulk mining shell that is derived using scoping study mining, processing and cost parameters and mining assumes an eventual non-selective, bulk underground mining method.

South Africa

Operations
The South Africa region has a total declared managed gold Mineral Resource of 68.4 million ounces (December 2014: of 76.0 million ounces) and a gold Mineral Reserve of 37.3 million ounces (December 2014: 38.0 million ounces), of which, 91.3% is attributable to Gold Fields, in line with the agreed phase-in participation of Black Economic Empowerment (BEE) partners over 20 years. Ultimately the BEE partners’ stake will be 10%. These Mineral Resource and Mineral Reserve figures are net of 198,060¹ ounces from mined depletion during 2015.

During 2015, the mine successfully concluded studies on a new regional stability pillar configuration, which is endorsed by the South Deep Geotechnical Review Board (GRB). The new regional pillar design has been fully incorporated into the 2015 mine design and scheduling process, which informed the December 2015 Mineral Resource and Mineral Reserve declaration. Due to the reduced spacing between pillars the mine will effectively operate within six mining corridors compared to the previous four.

A new de-stress mining method was developed in conjunction with the GRB to improve safety, increase mining productivities and simplify the overall mining cycle. The conversion from the historical low profile de-stress methodology to the new high profile de-stress mining method, has been rolled out across all the de-stress sections on the mine, with the exception of the mature 951W area, where the current de-stress method will be maintained until completion.

In addition to the new de-stress mining method and revised geotechnical support regime with resultant enhancements to the mine design layouts, Gold Fields is undertaking a holistic strategic review of the operation with the objective of assessing longer-term optionality at the mine. The intent of this re-basing study is to select the most appropriate business plan for the mine that will guide South Deep forward to ensure delivery as a core franchise asset. This will be communicated to shareholders in early 2017. The current life-of-mine, which forms the anchor to the re-basing project, is estimated to be 80 years.

West Africa

Operations
The West Africa region has a declared managed gold Mineral Resource of 15.1 million ounces (December 2014: 14.8 million ounces) and a gold Mineral Reserve of 7.7 million ounces (December 2014: 8.7 million ounces), which are 90% attributable to Gold Fields. These figures are net of 754,000¹ ounces from mined depletion in 2015.

The programme at Damang to assess all relevant options that have the potential to deliver maximum value from the asset to Gold Fields is ongoing and various alternative investment opportunities will be tabled by mid-year. In the interim, the mine will revert to contractor mining at the end of Q1 2016 in alignment with a reduced short term mining footprint. The Mineral Reserve of 1.0 million ounces is based on the current Operational and LOM plan.

¹ Reserves are at a head grade pre the processing recovery

Tarkwa’s Mineral Resource of 9.4 million ounces remained fairly steady and the Mineral Reserve of 6.7 million ounces decreased in line with mining depletion and updated resource modelling. On-site exploration opportunities are being considered and tested.

Projects for disposal

Arctic Platinum project (APP)
The total Mineral Resource figures for APP (100% attributable to Gold Fields) remain unchanged year-on-year. APP in Finland has a Mineral Resource of 786,000 ounces of gold, 2.4 million ounces of platinum and 9.8 million ounces of palladium – as well as 1,034 million pounds of copper and 438 million pounds of nickel. The project has been put up for sale as part of the commitment to divest growth projects that are not fully aligned with our business objectives.

Drilling at Salares Norte, Chile