GOLD FIELDS - Q2 ended 30 June 2012

Production in the September quarter has been negatively impacted by the following:

the fire at KDC which reduced production by approximately 50,000 ounces;
the temporary suspension of the heap leach facilities at Tarkwa which resulted in a loss of 15,000 ounces;
internal and external safety stoppages at Beatrix resulted in a loss of some 20,000 ounces; and
at South Deep approximately 15,000 ounces have been lost to date, which appears to be the result of a go-slow after issuing of the Section 189 (3) notice.

As a result of the factors described above, attributable gold production for the year ending December 2012 is expected to be no more than 3.4 million equivalent ounces and could reduce further if no agreement is reached at South Deep.

For the year ending December 2012, total cash cost is estimated to be approximately 2 per cent higher at US$880 per ounce (R230,000 per kilogram) and NCE, excluding capitalised growth projects, is estimated to be approximately 3 per cent higher at US$1,340 per ounce (R348,000 per kilogram) when compared with the guidance provided in February. The capital projects group is anticipating spending between US$20 per ounce and US$25 per ounce on realisation costs of projects, including drilling, feasibility studies and early-work capital expenditure on our advanced projects. This is well below the original estimate of between US$50 per ounce and US$70 per ounce due to the timing of expenditure and deferrals to ensure project optimisation. These estimates are based on an average exchange rate of R/US$8.20 and R/A$8.55 for the remainder of the year. Unit costs vary quarter on quarter depending upon the timing of capital expenditure, seasonal electricity tariffs and production variations due to statutory holidays.

The above is subject to safety performance which limits the impact of safety-related stoppages and the forward looking statement.

Outlook