Growth

Gold Fields has a target of achieving five million ounces per annum, either in production or in development, by the end of 2015. To this end we are in the process of developing an extensive pipeline of projects which is discussed below.

Project development

Far Southeast (FSE)

During the quarter the second down-payment of US$66 million was made in terms of the option agreements to acquire a 60 per cent interest in the undeveloped gold-copper FSE deposit in the Philippines. Refer to the Corporate section for more detail.

Exploration at the project continued with eight underground diamond drill rigs operating, drilling 10,745 metres during this quarter. The initial proof-of-concept drilling programme was completed and broadly confirms that the scale and grade of the deposit is consistent with initial expectations. The higher grade mineralised zone (1.5 to 2.5 grams per tonne gold equivalent) central to the porphyry body has been confirmed by the recent drilling. This programme also demonstrated that significant upside potential exists at depth and in most lateral directions. Ongoing drilling intends to scope the full scale of the FSE mineralised system as well as complete a sufficient number of in-fill holes to support the first resource model to be delivered in the second half of 2012.

Surface diamond drilling commenced during the quarter to provide detailed geotechnical data required for mine design studies. A comprehensive geotechnical data collection programme is also underway. Preliminary studies on hydrogeology and mine geotechnical design parameters were completed during the quarter.

Chucapaca

At Chucapaca we announced an updated indicated and inferred mineral resource of 7.6 million gold equivalent ounces for the Canahuire deposit. This represents a 35 per cent increase over the initial resource of 5.6 million ounces declared in May 2010.

Mineralisation remains open to the west. Drilling for the feasibility study with geotechnical, civil and sterilisation drilling was completed in October 2011. Work on the project description for submission to the EIA and ongoing work on the feasibility study is progressing to plan. Metallurgical test work is almost complete and the process flow sheet will be finalised during the December 2011 quarter. The EIA submission and the feasibility study are scheduled for completion by mid-2012.

Arctic Platinum project (APP)

The Arctic Platinum project incorporates a pre-feasibility study on the Suhanko project (mining and processing of the Konttijarvi and Ahmavaara PGE-Cu-Ni deposits) and a preliminary assessment of the mineralisation potential in the Suhanko extension area. This extension includes known deposits at Little Suhanko (adjacent to the Ahmavaara deposit), Vaaralampi, Tuumasuo and Suhanko North which fall within the Suhanko II area, and is subject to the mining lease application.

Work is focused on a base case pre-feasibility study on mining and processing two PGE-Cu-Ni deposits (Konttijaarvi and Ahmavaara). The proposed process route is to float a concentrate to feed into a Platsol © high pressure oxidation process, followed by a hydrometallurgical refinery to recover metals. Two 50 tonne pilot plant test programmes were completed during the quarter, largely confirming the bench-scale test work reported previously. The base case pre-feasibility study should be completed by early 2012.

An amendment to the existing environmental permit to include the proposed change to the process facility will be submitted in the December 2011 quarter. Baseline work for the Suhanko II EIA for an extended mining lease application on an upside case is proceeding in parallel. The objective is to complete the EIA process by June 2012 and submit an environmental permit application for Suhanko II shortly thereafter.

Scout exploration drilling on the Suhanko II extended area was completed at the Tuumasuo and Vaaralampi deposits targeting lateral and depth extensions. Eleven core holes for 3,492 metres were completed and significant intersections of sulphide mineralisation encountered. These extensions will be in-fill drilled over the upcoming winter season.

Confirmation drilling on the Suhanko North prospect, located adjacent to Tuumasuo, was also completed with visual encouragement in four drillholes. Assays are pending but zones of sulphide mineralisation up to 89 metres thick were intersected down-dip from previous shallow drilling.

Extensional drilling at Little Suhanko commenced towards the end of the quarter to determine the potential size of this shallow deposit which is located 400 metres east of the Ahmavaara deposit. Eight holes were completed for 672 metres, and confirmed near surface extensions to the south and east of previous drilling. The drilling programme is expected to be completed in the December 2011 quarter.

Damang super-pit

The conceptual study of the super-pit identified an exploration target of between 3 to 4 million ounces based on a tonnage of 50 million to 80 million tonnes, at grades of 1.6 grams per tonne to 1.8 grams per tonne. Drilling has demonstrated continuity of mineralisation to depths of over 350 metres below the current pit floor and consistent in style with current mined ores. Evaluation of conceptual models, based on extrapolation of grade control data, demonstrates potential economic viability to depths of 400 metres below surface, capable of supporting a significant expansion and extension to the life of the mine.

The Phase 2 pre-feasibility drilling programme which commenced in May 2011 is near completion. Over 37,000 metres of a planned 44,000 metre programme of RC and diamond core drilling has been completed, which will inform a resource model suitable for the ongoing study. A geological model will be constructed and declaration of an updated resource is expected by mid-2012.

Metallurgical, geotechnical, and environmental testwork is running in parallel with engineering and design activities. Work on permit applications has started.

Greenfields exploration

In addition to the four resource development projects mentioned above, the greenfields exploration portfolio also consists of two advanced drilling projects, six initial drilling projects and nine target definition projects in Peru, Chile, Ghana, Mali, Guinea, Canada, Kyrgyzstan and Australia.

Africa

A scoping study was completed for the Yanfolila project in southern Mali (Gold Fields 85 per cent) which indicates the project requires a minimum 1.5 million ounces resource base to meet internal investment criteria. Exploration drilling recommenced in the December quarter at the end of the high rainfall season. Drilling will focus on expanding the resource base, targeting the mineral potential already identified at six additional prospect areas within 25 kilometres of the central Komana camp. An additional 60,000 metres of scoping and in-fill RC and core drilling is planned. A further 30,000 metres of aircore drilling is also planned to delineate anomalies identified during geochemical surveys completed during the 2011 field season.

First pass diamond and RC drilling was completed on the Tinguélé prospect at the Kangaré project (Gold Fields 90 per cent) in Mali. Drill testing of an extensive geochemical anomaly intersected broad intervals of low level mineralisation in the three drill holes completed. Follow-up drilling is planned for the approaching drill season.

At the Asheba project in Ghana (Gold Fields 90 per cent) assays were received from initial drilling completed in early 2011, which confirmed mineralisation in two prospect areas. Conceptual modelling demonstrated sufficient mineral potential to justify further follow-up drilling which is scheduled for completion by June 2012. An auger drilling programme to explore below transported cover commenced late in the quarter and aims to identify extensions to the known mineralised trends.

North America

In British Columbia, Canada, Gold Fields can earn up to a 70 per cent interest in the Woodjam project with joint venture partners Fjordland Exploration Inc. (TSX.V:“FEX”) and Cariboo Rose Resources (TSX.V:“CRB”). Resource in-fill drilling of the Southeast zone porphyry copper-gold-molybdenum target was completed during the quarter, and conceptual studies progressed. A total of 42 holes for 17,195 metres of core were completed, which will contribute to a maiden SAMREC compliant resource to be finalised by March 2012. In-fill and reconnaissance drilling was also completed on the Deerhorn, Megabuck and Tisdall Lake prospects respectively.

A first pass 7-hole, 2,448 metre diamond drilling programme was completed at the Toodoggone project in British Columbia, Canada where Gold Fields can earn up to 75 per cent in a joint venture with Cascadero Copper Corporation (TSX.V:“CCD”). The drilling programme tested the Mex copper-gold target and successfully intersected porphyry related copper-gold mineralisation.

A 5-hole, 1,706 metre diamond drilling programme was completed on the new Eldorado property, British Columbia, Canada. Four of the five holes intersected variable widths of quartz-carbonate brecciation with local sulphides within altered quartz diorite. Assay results are expected later this year.

South America

Diamond drilling commenced at the Pacosani Target, Moquegua project, Peru and RC drilling commenced at the Ichocollo target in the Tacna project, Peru.

Preparation is underway to commence diamond drilling at the Salares Norte project in the Maricunga district of Chile in the December 2011 quarter, following-up on drilling completed earlier this year.

Australasia

Minimal drilling activity was completed in Australia due to seasonal rainfall and agricultural restrictions. Preparation for the approaching summer drill season is complete and more than 20,000 metres of drilling is planned on the East Lachlan gold-copper porphyry prospects.

Other regions

At the Talas project in Kyrgyzstan (Gold Fields 60 per cent in a joint venture with Orsu Metals Corp, AIM:OSU, TSX:OSU), minor field activities completed include initial low-level soil sampling on new target areas (MMI), and detailed ground magnetic surveys to aid future drill targeting.

Further activity remains on hold following an attack by about ten horsemen on the exploration camp as reported early in October. A criminal investigation is underway.

Project generation and near mine exploration

St Ives

Recent activity at St Ives focused on completing resource model updates for the combined deposits in the Neptune and Revenge areas which have historically produced in excess of 2 million ounces of gold. More than 25,000 metres of drilling was completed on this complex of deposits during 2011 and work on geological and resource modelling is being completed.

Additional resource development drilling programmes totalling in excess of 25,000 metres were also completed at Greater Santa Ana, Cave Rocks and the Leviathan area. Drilling has targeted potentially economic extensions to the established mining centres.

Early-stage target definition and initial drilling activities totalling 24,700 metres were completed on a number of high ranking prospects across the St Ives tenement. Of significance is a series of high grade aircore intersections returned from the Incredible prospect. A drilling programme designed to extend the existing 1.5 kilometre long Incredible pit’s gold anomaly laterally to the west is underway.

Agnew

A programme of 14,500 metres of directional diamond core drilling to prove geological and grade continuity on three newly defined highgrade shoots in the Main Lode-Kim corridor commenced in July 2011. Initial indications confirm the presence of three steep-plunging high grade lode structures. Drilling will continue into the December quarter so that an initial inferred resource can be completed before committing to the next stage of drilling.

Positive optimisation of the Cinderella resource suggests a potentially economic open pit position. A 50-hole programme of RC drilling is planned to be completed in the December quarter in order to evaluate the short range variability in the deposit and allow the construction of a final indicated resource.

Damang

Following almost twelve months of dedicated and intensive activity on the Damang super-pit, drilling returned to target the potential extension of the deposits in the Greater Amoanda area. Detailed geological studies completed during the quarter highlighted that significant extensional opportunity exists at both the Rex and Amoanda deposits.

On the eastern flank of the Damang anticline, a reconnaissance drill programme of 31 holes (3,100 metres diamond core) is planned at the Bonsa forest hydrothermal prospect, targeting both structural hydrothermal mineralisation and potential conglomerate reef positions.

Cerro Corona

All results from the phase 2 in-pit extensional drill programme have now been received and essentially confirm the gold and copper distribution to be consistent with the December 2010 model. Localised higher grade zones are also evident, which have potential to provide short-term production grade increases over the life of mine.

Significantly, the phase 2 drilling also identified a number of intersections outside the planned pit designs, particularly at depth. A programme of deeper drilling is planned in 2012 to scope out the potential for resource expansion opportunities below and lateral to the current pit limits.

12-hole programme at Sylvita on the northern flank of the Cerro Corona porphyry was completed and logged. Intervals of altered porphyry, along with skarn mineralisation containing visible copper and zinc sulphides were intersected. All assay results are pending.

Business development

Gold Fields entered into an option agreement with Bezant Resources PLC (Bezant) to acquire the entire issued share capital of Asean Copper Investments Limited which is incorporated in the British Virgin Islands, a wholly owned subsidiary of Bezant. Asean holds Bezant’s entire interest in the Guinaoang porphyry copper-gold deposit (the Mankayan project) located on Luzon Island in the Philippines. Subject to approval from Bezant’s shareholders and the payment of an upfront non-refundable option fee of US$7 million, Gold Fields will be granted the option to acquire the entire issued share capital of Asean for US$63 million. The option can be exercised from the date upon which it is granted until expiry on 31 January 2013. The Mankayan project is located approximately 4 kilometres east of the FSE deposit.