GOLD FIELDS - Q2 ended 30 June 2012

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

Sterilisation drilling for the alternate tailings and waste storage areas continued and is forecast to be completed by the end of 2012 pending agreements with the local Oyo Oyo community. Negotiations with the local communities are on-going and focus on land acquisition options for the project.

Work continued in all areas towards completion of the feasibility study and submittal of the Environmental Impact Assessment (EIA) by the end of 2012. Recent focus has been on project peer reviews and final optimisation of project parameters.

On completion of the feasibility study a period of value engineering is planned to optimise the project capital costs and ore recoveries. This value engineering will be conducted in parallel with land acquisition and EIA processes.

Following re-establishment of the underground drilling platforms in the March quarter, activity continued with nine drills out of a planned twelve completing a total of 17,000 metres of drilling in the June quarter. Two surface drill rigs have commenced geo-technical drilling and, together with the underground drilling will provide additional data for the on-going pre-feasibility study and maiden resource for this project.

Pre-feasibility studies investigating mine access strategies, production rates and scale, and metallurgical processing commenced during the quarter. Various tailings storage facility sites are under investigation, considering technical, social and environmental perspectives.

Our Foreign Technical Assistance Agreement (FTAA) application, which allows for direct majority foreign ownership and control, was submitted in November 2011 and requires Free Prior Informed Consent (FPIC) of the Indigenous People in our affected areas. The FPIC process was suspended at a national level pending the release of new guidelines, which have subsequently been released. The process is expected to recommence in the September quarter, with FPIC anticipated to be received in 2013.

In July 2012, after months of consultation with key stakeholders, President Aquino issued an Executive Order providing policies and guidelines to ensure responsible mining and utilisation of mineral resources in the Philippines. The Executive Order is a policy statement and will be further clarified by the Implementing Rules and Regulations scheduled for release within 60 days. Our initial assessment of this policy statement suggests that this will have no significant effect on the FSE project, however we can only confirm this once the Rules and Regulations are released.

enforcement of environmental standards in mining with reviews of existing operations;
rationalisation of existing revenue sharing schemes and arrangements, which we do not expect will have any significant impact on the FTAA fiscal regime as the FTAA currently provides for a 50:50 government sharing and is competitive by international standards;
suspension of the granting of new mineral agreements until the fiscal sharing arrangements are rationalised and legislated. We note that the Government has verbally clarified however that this moratorium does not preclude the negotiation of FTAAs for future mining projects. We will not be affected by this provision as our FTAA application was submitted prior to the issuance of the Executive Order;
implementation of measures to ensure alignment of national interest with local governments’ interests; and
implementation of measures to improve regulation and control of small scale mining activities.

Work continued on the pre-feasibility study and the definition of a maiden resource for the Suhanko North project after drilling was completed in the March quarter. All outstanding assays were completed and the geological model and resource estimates are expected to be completed by year-end.

Mine optimisation studies and a preliminary production model for Suhanko North will be added to existing Suhanko information to develop a series of trade-off options between Konttijarvi, Ahmavaara and Suhanko North, the three Suhanko pits.

Initial metallurgical test work, including the Platsol downstream process option, for Suhanko North is complete, and plans for detailed test work are underway. Work has commenced to collect baseline data related to Suhanko North, for inclusion in the EIA permitting process. Marketing studies for various products are advancing.

Drilling commenced on an interim 23,000 metre infill campaign and 5,918 metres were completed during the quarter. This drilling programme is expected to be completed by the end of the year.

In addition to the four resource development projects mentioned above, the greenfields exploration portfolio also consists of three advanced drilling projects, fifteen initial drilling projects and six target definition projects in Peru, Chile, Argentina, Ghana, Mali, Guinea, Canada, Kyrgyzstan, China, Australia and the Philippines. A total of 55,478 metres was drilled on ten greenfields projects during the quarter compared with 99,800 metres drilled in the March quarter and 62,813 metres in the June 2011 quarter. The main reason for the lower level of drilling activity in the June quarter was the onset of winter in the Andes and seasonal rainfall in Australia and Africa.

Following a short hiatus in the aftermath of the coup d’état in Mali in late March 2012, diamond and reverse circulation drilling resumed at the Yanfolila advanced drilling project in mid-April 2012. The drills focused on infilling anomalies and structures previously defined at the Gonka, Kabaya South and Sanioumale West prospects. A total of 8,131 metres of reverse circulation drilling was completed during the quarter. The Komana scoping study will be updated with the additional data in the September quarter. Drilling programmes also continued this quarter on the Kangare project in Mali and at the Asheba project in Ghana. Target definition work consisting of geochemical surveys and geological mapping is in progress at the Boako project in Ghana and over a number of additional concessions with the extensive Kangare project area in Mali.

Diamond drilling resumed at the Woodjam advanced drilling project in British Columbia in March 2012 and two drills are currently active. Results are encouraging from initial drill holes at one new target area and a follow-up programme will be implemented in the September quarter.

Gold Fields executed an agreement with Bear Lake Gold on its Larder Lake project in Ontario and diamond drilling commenced in June 2012. Five diamond drill holes were also completed at the Marble Mountain project in Ontario in May 2012, representing first activity on this new property. A decision on the way forward will be made once all the results have been analysed.

With the onset of winter in the high Andes, drilling programmes at the Salares Norte project in Chile and the Taguas project in Argentina were concluded during the June quarter. Results from both of these initial drilling projects were encouraging and drilling is expected to resume in September 2012. Drilling continues on two early stage projects in southern Peru.

Gold Fields’ drilling projects continued in the East Lachlan region of New South Wales, Australia. Progress at the Myall project was hampered by heavy rains and the remainder of the drilling programme has been postponed until the December quarter. At the Wellington North project, two drills are currently active at the Mayhurst target and results continue to be positive.

In north-western Kyrgyzstan, Gold Fields owned a 60 per cent interest in the Talas joint venture with partner Orsu Metals Corporation. Subsequent to quarter end, the Group acquired the outstanding 40 per cent and now fully owns Talas. A 6,000 metre diamond drilling programme commenced in April 2012 after a two year hiatus following civil unrest in the country. The 2010 scoping study will be updated with results from the current drilling campaign and will form the basis whether to proceed to pre-feasibility by the end of 2012.

Gold Fields has a well-supported near mine exploration programme, successfully replacing production and growing the reserve base at the international operations. Exploration success immediately adds valuable life-of-mine to these established assets which forms the sustaining foundation of our overall growth strategy.

In Ghana, near mine exploration at Damang outside of the super-pit project has been limited to modelling of recent data acquired from drilling in the Amoanda-Rex corridor trend. This will be ongoing with results expected in the second half of 2012.

In Peru, at Cerro Corona, drilling commenced on the Corona Deep programme highlighted in the March quarter. The 7,300 metres drill programme, targeting potential depth extensions below the current planned open pit limits should be concluded by the end of 2012.

In Australia, the 2012 A$35 million exploration programme at St Ives is on schedule. Drilling continues to expand the inventory in the area between Revenge and Neptune, including definition of the southern extension of the N01 structure at Revenge that produced almost 300,000 ounces by underground mining methods. Expanded early stage exploration delineated several encouraging new prospects including Invincible in the Greater Santa Ana area and Target X in the Leviathan area. High grade mineralisation continues to be intersected on depth extensions of the Eastern Lodes at Cave Rocks.

Drilling continued on the high grade shoots project at Agnew targeting the down-plunge of Main Lode at the Waroonga complex. This programme, which initially confirmed the presence of high grade mineralisation, is now confirming the continuity and extent of the higher grade shoots.

Growth