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Forward looking statements

Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934.

Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability, terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations and new legislation affecting mining and mineral rights; changes in exchange rates, currency devaluations, inflation and other macro-economic factors; industrial action; temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document.

The company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.

JOHANNESBURG. 10 November 2011, Gold Fields Limited (NYSE & JSE: GFI) today announced record net earnings for the September quarter of R2,055 million compared with R1,267 million in the June quarter and earnings of R701 million in the September 2010 quarter. In US dollar terms net earnings for the September quarter were US$293 million, compared with US$186 million in the June quarter and earnings of US$95 million in the September 2010 quarter.
September 2011 quarter salient features:
• Group attributable equivalent gold production of 900,000 ounces, 3 per cent higher than the June quarter;
• Operating margin increased from 47 per cent to 51 per cent and NCE margin from 21 per cent to 29 per cent;
• Loans repaid of US$195 million funded from operating activities; and
• Second down payment of US$66 million made in the Far Southeast project in the Philippines, on positive drilling results.
Statement by Nick Holland, Chief Executive Officer of Gold Fields:

“Gold Fields has demonstrated its ability to translate the rising gold price to the bottom line with a 62 per cent increase in net earnings to R2,055 million during the September quarter. Over the same period the gold price increased by 14 per cent in US dollar terms and 18 per cent in Rand terms.

Attributable production for the Group increased by 3 per cent from 872,000 gold equivalent ounces in the June quarter to 900,000 gold equivalent ounces in the September quarter. This improvement was achieved despite the five day wage related industrial action at our South African operations. The acquisition of non-controlling interests in our Ghanaian operations contributed to the higher attributable production figure. It also enhanced the geographical diversification of our portfolio, with about 50 per cent of production now derived from our international operations.

Sound cost control remains in place across the Group with the ongoing Business Process Re-engineering initiatives delivering satisfactory results. As a consequence, net operating cost in the South Africa region was only 2 per cent higher than the June quarter despite the annual wage increase effective from 1 July, as well as two months of significantly higher winter electricity tariffs in South Africa.

The notional cash expenditure (NCE) margin for the Group increased to 29 per cent in the September quarter, well ahead of the June quarter’s 21 per cent and the Group’s long-term target of 25 per cent. The NCE margin in the South Africa region improved to 16 per cent in the September quarter from 7 per cent in the June quarter. Excluding the impact of the South Deep project which is in a build-up phase and not yet generating positive NCE margins, the South Africa region’s NCE margin was 24 per cent, up from 15 per cent in the June quarter. In Australasia, the NCE margin increased from 16 per cent in the June quarter to 24 per cent in the September quarter. In West Africa, the NCE margin for the September quarter was 46 per cent and in South America 58 per cent, both similar to the June quarter.

Safety remains our most important operational challenge. Despite a decline of 25 per cent in the Group’s fatal injury frequency rate during the quarter, unfortunately we still had six fatalities at our South African operations. Although we have achieved an encouraging improvement in the Group safety over the past three years there has been limited progress in the past 12 months despite our best efforts. We maintain our commitment to safety and will continue to focus on further improvements.

During the September quarter significant progress was made in support of our growth strategy to achieve 5 million quality gold equivalent ounces, in production or in development, by the end of 2015, while at the same time diversifying our production base across the globe. These strategies are primarily driven through our project pipeline.

At Chucapaca in Peru, we announced an updated indicated and inferred mineral resource of 7.6 million gold equivalent ounces for the Canahuire deposit, a 35 per cent increase over the initial resource of 5.6 million ounces declared in May 2010. All drilling for the feasibility study was completed during October 2011 and we aim to finalise the feasibility study and submit the Environmental Impact Assessment (EIA) application by mid-2012.

At the Far Southeast project in the Philippines, the initial proof-of concept drill results have confirmed our initial understanding of the scale and grade of the deposit and demonstrated significant upside potential at depth and in all lateral directions. On the back of positive drilling results we have made the second down payment of US$66 million in terms of the option agreements to acquire a 60 per cent interest in the project. We have eight drill rigs on site and plan to deliver a first resource during the second half of 2012.

At the Arctic Platinum project in Finland, we have completed the two 50 tonne pilot plant test programmes, which largely confirmed the previous bench scale test work indicating an improvement of up to 25 per cent in metallurgical recoveries. The current focus is on consolidating these results in a pre-feasibility study which is underway.

At the Yanfolila project in southern Mali, we have completed a scoping study which indicates that the project requires a minimum 1.5 million ounces resource base to satisfy project thresholds. Exploration drilling to expand the resource base is scheduled to start in the December quarter.

In South Africa, the South Deep project continues to progress and we anticipate completing the key infrastructure projects, being the ventilation shaft and the expansion to the processing plant by the end of 2012.

At the Damang open pit expansion project in Ghana, we are targeting a 4 million ounce open pit mining resource to support a potential doubling of production. Work on this project is continuing apace.”

Stock data   JSE Limited – (GFI)  
Number of shares in issue   Range - Quarter ZAR95.80 – ZAR141.01
- at end September 2011 723,310,693   Average Volume - Quarter 2,577,103 shares / day
- average for the quarter 723,159,600   NYSE – (GFI)  
Free Float 100 per cent   Range - Quarter US$14.25 – US$17.89
ADR Ratio 1:1   Average Volume - Quarter 4,950,355 shares / day
Bloomberg / Reuters GFISJ / GFLJ.J