GOLD FIELDS - Q3 ended 30 September 2012

Gold Fields’ vision is to deliver sustainable and high-quality gold production with the base load in South Africa complemented by growth in its three international operating regions: Europe and Africa, Australasia, and the Americas. Gold Fields’ focus is on quality of production through maximum total margin and free cash flow.

At the Chucapaca exploration project in the southern Peru, a joint venture by Gold Fields (51%) and Buenaventura (49%), the partners have studied the viability of a large open-pit operation capable of sustaining a 30,000 tonnes per day throughput. A first draft of the feasibility study has been completed and as a result of relatively high capital and operating costs this option would not have delivered acceptable project returns.

Consequently, further study work will have to be performed by the joint venture focusing on value engineering the project to achieve the expected returns. Future work will mainly include the following:

Analysing different options for mine development, including an underground or a combined open-pit underground operation, and alternative throughput levels;
Re-establishing exploration to add resource flexibility, once the required permits are granted; and,
Optimising capital and project operating costs.

The partners reiterate their commitment to unlocking the potential of the Chucapaca project, which will need the support of all stakeholders, particularly the neighbouring communities. Gold Fields has built a close relationship with them and expects to continue working together through this phase of the project.

A maiden Inferred Mineral Resource, effective 12 September 2012, was announced during the quarter for the Far Southeast deposit. The Mineral Resource is approximately 892 million tonnes at 0.7 grams per tonne gold and 0.5 per cent copper for a total of 19.8 million ounces of gold and 4.5 million tonnes of copper. Lepanto Consolidated Mining Company (“Lepanto”) holds a 60 per cent interest and Gold Fields holds a 40 per cent interest in the project.

The Mineral Resource is based on approximately 126,000 metres of historical and Gold Fields drilling. The drilling depth, due to the mountainous nature of the terrain, varies between 700 metres to 1,800 metres below surface, with the average drill spacing around 140 metres by 140 metres. Gold Fields data collection, including drilling, sampling, laboratory analysis, quality assurance and quality control, geological logging and database management, follows industry best practice. Independent audits of data collection and Mineral Resource management were completed as part of Gold Fields’ quality management system.

Drilling from underground platforms and surface sites continued throughout the quarter. The underground drilling programme is on schedule, with 21,646 metres drilled in the September quarter. Current drilling is designed to increase Mineral Resource confidence and test potential high-value positions. Surface geotechnical drilling rates increased with the two rigs in operation this quarter, completing 1,534 metres. Access to surface drilling sites has improved following successful community negotiations.

The Foreign Technical Assistance Agreement (“FTAA”) application submitted in November 2011 requires Free Prior Informed Consent (“FPIC”) of the indigenous people. The FPIC process, suspended at a national level in the June 2012 quarter, recommenced this quarter and is scheduled to be completed in the December 2012 quarter.

Geological and mine planning work at the Suhanko North deposit confirmed a substantial mineral inventory which can be added to the Suhanko project. A maiden Mineral Resource for Suhanko North is scheduled to be released in the December 2012 quarter, with initial indications in line with targeted expectations.

A technical risk review for treating the Suhanko project ore by way of the Platsol technology was completed by an independent panel of experts. This review did not identify any fatal flaws in the process, indicating that this technology could be successfully implemented at the Arctic Platinum project in Finland. Following this positive endorsement, a second Platsol pilot plant study at SGS Lakefield (Canada) is being planned for early 2013. This testing will require 120 tonnes of ore-grade material from the Konttijärvi (80 tonnes), Ahmavaara (20 tonnes) and Suhanko North (20 tonnes) deposits. The objective is to deliver the bulk sample from a 20,000 metres drilling programme over twelve weeks and using five drill rigs.

Additional metallurgical test work and marketing studies are underway to determine optimal processing and downstream product marketing strategies. Base-line studies providing data for the project Environmental Impact Assessment (EIA) also continued and the full schedule for the EIA submission is being finalised.

At Damang in Ghana, work on the super-pit has been slowed down and instead a concept study of the cut-back of the original pit (DPCB) is being conducted. This study will investigate mining the high-grade core area to provide highergrade feed to the existing plant. This smaller starter project could be more capital-efficient, allowing the significant potential at Damang to be brought to account earlier.

In addition to the four resource development projects mentioned above, the greenfields exploration portfolio also consists of four advanced drilling projects – namely Yanfolila, Woodjam, Talas and Salares Norte, together with eleven initial drilling projects, and eight target definition projects in Peru, Chile, Argentina, Ghana, Mali, Canada, USA, Kyrgyzstan, Australia, and the Philippines. During the quarter 39,875 metres were drilled on nine greenfields projects compared with 55,478 metres in the June quarter and 40,947 metres in September 2011 quarter.

Diamond and reverse circulation drilling (7,159 metres) continued at the Yanfolila advanced drilling project in Mali. The drilling focused on the Gonka, Kosac, and Sanioumale West prospects. The Yanfolila scoping study is being updated with the additional data and a decision on the project is planned during the December 2012 quarter. The “Term de Reference” or project description for the Yanfolila Environmental and Social Impact Assessment was submitted during the quarter. Gold Fields also submitted an application for the consolidation of the three Yanfolila licenses into one exploration permit to facilitate optimal project management and future mining license applications.

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 within the extensive Kangaré project area in Mali. Studies completed at Asheba identified a mineral inventory which does not satisfy Gold Fields size hurdles and divestment options are being sought.

Diamond drilling continued at the Woodjam advanced drilling project in British Columbia, Canada and three drills are currently active on two of the porphyry copper-gold mineralised centres. This programme will conclude during the December 2012 quarter. Mineral Resource estimates will be updated with the additional data and reported in the next annual declaration. Decisions regarding the future project exploration strategy will be made during the first half of next year.

A follow-up diamond drilling programme was completed at the Toodoggone project in British Columbia during the quarter. Assay results are still being compiled and a decision is likely to be made on this project by December 2012.

Gold Fields continued diamond drilling on the Larder Lake project in Ontario, Canada and two drills are currently active. This programme will continue through the winter and is scheduled for completion by the end of March 2013.

Following the receipt of poor results from the initial drilling programme completed in June 2012 at the Marble Mountain project in Ontario, no further work is planned.

Based on encouraging results from the Salares Norte project in Chile last season, the project has been promoted to advanced drilling status. Camp, drill, and personnel mobilisation was completed in September 2012 and drilling commenced on 1 October 2012. This drilling programme will continue until the end of the Andean summer field season in June 2013.

A second phase of initial drilling is scheduled to begin at the Taguas project in Argentina during the December 2012 quarter.

Results from two initial drilling projects in southern Peru were not encouraging and a decision has been made to partially divest portions of these extensive property holdings.

Drilling continued on the Myall and Wellington North projects in the East Lachlan region of New South Wales, Australia. Both of these programmes are expected to be completed during the December 2012 quarter and decisions will be made on the way forward based on these results. Two new joint venture agreements were signed with Straits Resources Ltd. on their Blayney and Cheesmans Creek projects in the East Lachlan region. Field work will commence on these promising areas during the December 2012 quarter.

At the Guinaoang project in the Philippines, negotiations continued with the landowners, communities, and local governments for access to commence drilling. This process is expected to conclude and allow a programme start-up in the December 2012 quarter.

During the quarter, Gold Fields purchased the remaining 40 per cent interest in the Talas advanced drilling project in Kyrgyzstan from Orsu Metals Inc. Diamond drilling continued and results have been encouraging. The Mineral Resource estimate and scoping study will be updated with the new data and a decision is expected during the first half of 2013.

Gold Fields completed 100,323 metres of drilling this quarter on near mine projects adjacent to the active Gold Fields international operations. This compares to 110,456 metres completed in the June 2012 quarter, and 107,460 metres in the September 2011 quarter.

The majority of drilling activities were completed at St Ives with 66,544 metres of diamond, reverse circulation and aircore drilling completed in the quarter. Gold Fields announced the discovery of a new shallow prospect, Invincible, during the quarter. Exploration potential has already been defined as mineralisation over one kilometre strike to a depth of 200 metres, remaining open both along strike and at depth. The Invincible discovery represents the first occasion high grade mineralisation has been identified in this new corridor adjacent to the main Central Corridor historically mined at St Ives. It opens up a considerable new exploration search space in the district. Drilling is now focused on increasing the confidence of the identified mineralised zone to report a maiden mineral resource estimation by year end.

Also in Australia, drilling continued at Agnew on the High Grade Shoots project at the Waroonga mine. Almost 7,000 metres of directional surface diamond drilling completed during the quarter has continued to define the plunge continuity on the Hastings, Fitzroy, and Bengal shoots, as well as identifying extensions to the Link Zone, which appears to be coalescing with the main Kim shoot at depth. Work commenced on producing a first mineral resource estimation and evaluation of mining potential, planned to be completed by year end.

In Ghana, exploration at Damang commenced on a framework diamond drilling programme on high priority targets in the Bonsa Hydrothermal project. Highly prospective structural targets were defined in this area during a major reinterpretation exercise completed in 2012. Drilling is targeting hydrothermal mineralisation similar in style to the main Damang deposit. Other activities have been slowed down allowing the mineral resource models outside of the main Damang super-pit model to be updated.

In Peru, at Cerro Corona, drilling continued on the Corona Deep programme, completing 4,186 metres of the planned 7,300 metres campaign. Targeting potential depth extensions below the current planned open pit limits, drilling has intersected porphyry mineralisation to depths of up to 600 metres below current design. A full evaluation of the mining potential will be completed on receipt of all assays in the March 2013 quarter.

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