GOLD FIELDS - Quarter and Period ended 31 December 2010

Exploration activity during the December quarter focused on three Resource Development projects, two Advanced Drilling projects and six Initial Drilling projects in Peru, Chile, Mali, Ghana, Canada, Finland, Kyrgyzstan, Australia and the Philippines. Near mine exploration continued at St Ives, Agnew and Damang while ongoing target generation work concentrated on three greenfields exploration projects, where initial drilling is expected to commence in early 2011.

At the Chucapaca project in Peru (Gold Fields 51 per cent), drilling continued with ten drills currently on site. Two more rigs were added in January 2011 to ensure completion of the drilling required to deliver an indicated resource in the September 2011 quarter. The joint venture partners have decided to accelerate the project schedule and elements of the Bankable Feasibility Study will be moved forward to run in parallel with the resource delineation drilling programme in 2011.

At the Far South East project in the Philippines (Gold Fields option to earn 60 per cent from Lepanto Mining and Liberty Express Assets), work continues to gain momentum. Activities include drill mobilisation with the first diamond drill rig on site in December 2010; logistical and site preparation for underground drilling stations; staff deployment; site facility construction and community relations. Additional rigs arrived on site in January 2011.

At the Arctic Platinum project in Finland (Gold Fields 100 per cent), four drill rigs completed all bench-scale metallurgical holes at the Konttijarvi and Ahmavaara deposits during the December quarter. Samples have been shipped to the laboratory to commence flotation and hydrometallurgical bench-scale testing. Preliminary results on representative samples show flotation recoveries that equal or exceed the target recoveries in the financial modeling. Preliminary results of the hyrdrometallurgical pressure oxidation tests of the concentrates, returned base and precious metal extractions that are close to or better than targets. The positive preliminary results mean that Gold Fields has the confidence to move to pilot plant testing and drilling is well underway to secure the required samples from the various ore sources. Based on laboratory availability, the pilot plant test work programme is scheduled to be carried out during the September and December quarters of 2011.

At the Yanfolila project in southern Mali (Gold Fields 85 per cent), drilling ramped up in October 2010 and there are now four rigs on site testing seven priority targets within a 20 kilometer radius of the Komana East and Komana West deposits. Results have been positive and new interpretations derived from the infill drilling have highlighted the potential for continuity of shallow high grade mineralisation. Results from the framework and infill drilling at Sanioumale West, Kabaya South, Gonka and Guirin West have also been promising. Metallurgical tests are ongoing on samples from the various targets. The resource delineation drilling programme will continue into the March 2011 quarter in parallel with other elements required for the completion of a scoping study.

At the Talas project in Kyrgyzstan (Gold Fields 60 per cent), the Taldybulak Exploration License was renewed in November 2010 and is valid until 31 December 2015. Field activities this quarter have consisted of ongoing community relations programmes, hydrological monitoring and site studies for potential tailings storage facilities. The elections were completed in October 2010 without incident. A new coalition government was formed and a Prime Minister is in place.

At the East Lachlan joint ventures in New South Wales, Australia, where Gold Fields has earned into an 80 per cent interest in two porphyry Au-Cu project areas (Wellington North and Cowal East) and is earning into 80 per cent on another two projects with Clancy Exploration Ltd (ASX: ”CLY”), persistent rains and flooding in New South Wales have resulted in a reduced drilling programme. Drilling recommenced in January 2011.

At the Batangas joint ventures in the Philippines, where Gold Fields can earn up to a 75 per cent interest in three joint ventures with Mindoro Resources Ltd. (TSX.V: “MIO”), diamond drilling in the December quarter focused on several high-grade gold targets associated with brecciated quartz-barite-enargite veins at the Old Lobo mine. Drilling continued in January 2011 on the Calumpang target.

Drilling resumed with one diamond drill in early November 2010 at the Woodjam project in British Columbia, Canada, where Gold Fields can earn up to a 70 per cent interest in two separate joint ventures with the Woodjam Partners (Fjordland Exploration Inc. (TSX.V: “FEX”) and Cariboo Rose Resources (TSX.V: “CRB”)). Step-out drilling at the Southeast zone partially defined the northwest edge of the porphyry Cu-Au-Mo system. Additional holes at Deerhorn tested the southeast extension of the previously defined high-grade Cu-Au zone. Results are encouraging and the zone is still open. Drilling continued in January 2011 and focused on extensions to the Deerhorn target and the adjacent Rand claims, which Gold Fields recently optioned from Teslin River Resources (TSX.V: “TLR”).

At the SBX – Pircas projects in Chile (Gold Fields option for 100 per cent), RC drilling in the December quarter tested the main CSAMT geophysical target, which is centred on outcrops of silicified breccias. Results have partially defined deeply oxidised vuggy silica-hosted gold-silver mineralisation under a thick cap of barren steam-heated alteration, which may represent the centre of the high sulphidation system. Further drilling is planned in the March 2011 quarter to test the limits of the mineralised system. Initial drilling is also planned at the adjacent Salares Norte property, where CSAMT geophysical surveys and trench sampling have defined a promising high sulphidation target.

Activities focused on resource conversion drilling with the objective to convert a component of the large inferred resource reported in June 2010 to Indicated status. Intensive and ultimately successful drill-outs were completed on the Hamlet underground and Neptune open pit deposits and significant reserve increases are expected to be reported in the pending December 2010 Reserve Statement. A large proportion of the 1 million ounce resource reported on Hamlet in May 2010 is now available for reserve evaluation. Drilling at Neptune has defined new potential in both primary and high grade palaeo-channel positions.

Following an extended period of resource development over the last two years at Athena and Hamlet, which has yielded two new underground mining positions, focus is turning to new greenfields opportunities at St Ives. A potentially large gold prospect has been defined at the new Incredible project. Peak values recorded in two aircore holes were tested with follow-up diamond drilling. Two diamond holes were completed and intersected visible gold in stratigraphic position not previously prospective for mineralisation at the St Ives camp.

Deep directional drilling programmes continued at Agnew. Three initial drill horisons to define continuity of mineralisation to more than 500 metre below current workings were successfully completed. Assays continue to indicate broad widths (20 metres to 60 metres true widths) of mineralisation at moderate grades (1.2 grams per tonne to 3.0 grams per tonne) with internally higher grade zones. A mining study has commenced to review the amenability of bulk mining methods for the economic extraction of this potentially very large inventory.

Conceptual mining studies indicate considerable potential for further cut-back opportunities for the Damang open pit. A new phase of deep drilling has commenced to determine the depth potential of mineralisation below current designs, with the aim of defining Inferred Resources for follow-up drilling. The new programme will complete a 160 metre by 40 metre grid with holes planned to 350 metres beneath the current pit floor, with drilling being completed from the pit floor. This pattern will be drilled along the entire strike length of the Greater Damang project area including the Huni, Damang and Juno resources. Initial results are promising, identifying continuity of typical Damang-style hydrothermal mineralisation to depths of 250 metres to 350 metres below the current designs. This first phase will be completed by April 2011.

An initial in-pit drill programme to provide additional geological and alteration data for the updated resource model was completed. A second in-fill phase of diamond drilling commenced in late December 2010 to provide a comprehensive geological data set which will be used to update the resource for the remaining life of mine. Specific focus on material properties and alteration modeling will accompany the normal grade estimation routines. Further plans are in progress to assess near surface mineralisation potential immediately north of current pit designs on the newly acquired Sylvita concession.

At the Consolidada de Hualgayoc joint venture (Gold Fields 50 per cent) adjacent to the Cerro Corona mine, there has been no activity since exploration was suspended in 2009 due to community issues.

Gold Fields acquired 1,630,870 shares in Atacama Pacific Gold Corporation (ATM.TSX-V) for a total value of C$4.5 million. Gold Fields holds about 13.4 per cent of the company’s outstanding shares.

Exploration and corporate development