Gold Fields Netherlands Group

‘One of these exploration projects is our exiting Advanced Drilling project located in Mali.

In the 2010 financial year, the Gold Fields Netherlands Group acquired Glencar Mining plc, which held the Komana and Solona projects, as well as an interest in the Sankarani project, which was formerly a joint venture with Gold Fields. All of these projects are in the Yanfolila Belt in South-Western Mali, where Gold Fields has, since acquiring the assets, accelerated drilling and further consolidated its exploration land holdings. Gold Fields now has control over more than 131,997 hectares of exploration concessions in the Yanfolila project area, with additional applications covering approximately 188,800 hectares.

Resource delineation drilling is in progress with four rigs on the Komana East, Komana West and Kabaya South deposits, in parallel with other elements of a scoping study which is on schedule for completion in the third quarter of 2011.  Target definition work and initial drilling also continues on several other promising targets which are located within a 20 kilometre radius of Komana East.

The Gold Fields Netherlands Group has entered into the Woodjam North joint venture project in British Columbia, Canada. Gold Fields signed a joint venture agreement with Fjordland Exploration Inc. and Cariboo Rose Resources to earn up to a 70 per cent. interest on a 40,500 hectare property covering several known porphyry copper and gold targets. On 20 May 2010, Gold Fields signed a second joint venture agreement with the Fjordland Exploration Inc. and Cariboo Rose Resources to earn into 70 per cent. on the adjacent Woodjam South property which includes the Southeast Zone (“SE Zone”) porphyry copper-gold-molybdenum target discovery.  These joint ventures are collectively referred to as the Woodjam Project.

In January 2011, the project was promoted to the advanced drilling stage based on positive results of the initial drilling programmes.  Resource delineation is in progress with two drill rigs in the SE Zone.  The drilling programme is on schedule for completion during September of 2011.  Gold Fields plans to deliver a SAMREC 2007 compliant mineral resource declaration on the SE Zone and a conceptual study by the end of 2011.  Additional prospective third party concessions within the project area were optioned during the second quarter of 2011 and will be incorporated into the initial drilling plans to be carried out during the remainder of the year.

All our Canadian and Mali exploration ventures are funded and held by the Netherlands Group. The Netherlands Group has also set up exploration branch offices in Vancouver Canada and in Manila in the Philippines. These offices focus solely on exploration activities in Canada and the Philippines.

On 20 September 2010, the Gold Fields Netherlands Group, via its wholly owned Switzerland subsidiary entered into option agreements with Lepanto Consolidated Mining Company (“Lepanto”), a company listed in the Philippines, and Liberty Express Assets (“Liberty”), a private holding company, to acquire a 60 per cent. interest in the undeveloped gold-copper FSE deposit in the Philippines.

The agreements provide Gold Fields with an 18-month option on FSE, during which time Gold Fields expects to conduct a drilling programme as part of a feasibility study on FSE. Gold Fields was required to pay (i) U.S.$10 million in option fees to Lepanto and (ii) U.S.$44 million as a non-refundable down-payment to Liberty upon signing of the option agreements.

After a 12 month period, Gold Fields may decide to proceed with the acquisition of the 60 per cent. interest in FSE, in which case a further non-refundable down-payment of U.S.$66 million will be payable to Liberty, with the final payment of U.S.$220 million payable at the expiration of the option period. The total pre-agreed acquisition price for a 60 per cent. interest in FSE, inclusive of all of the above payments, is U.S.$340 million.

Eight underground diamond drill rigs are currently operating at FSE with nearly 22,000 metres completed in 17 core holes as of June 30, 2011.  Initial results of the proof-of-concept drilling confirmed the preliminary model based on historic drilling and identified the presence of significant mineralisation outside the model, both laterally and at depth.  Drilling is in progress to further the scope of the system as well as to complete a sufficient number of infill holes to support the first resource model which is scheduled to be delivered in the first quarter of 2012.  In addition to the resource definition drilling, a comprehensive geotechnical programme is underway as well as studies on hydrogeology, mining methods and potential sites for tailings disposal and infrastructure. The community relations team has ramped up its activities in the district and initiated sustainable development programmes in partnership with the local communities.

Mr. Holland is a Managing Director of the Netherland Group of Companies.

Mr. Holland was appointed an executive director of Gold Fields Limited in 1997 and became CEO of Gold Fields Limited on 1 May 2008.

rior to that he was the Chief Financial Officer of Gold Fields Limited. Mr. Holland has more than 30 years’ experience in financial management, of which 21 years were in the mining industry. Prior to joining Gold Fields he was Financial Director and Senior Manager of Corporate Finance at Gencor.

Mr. McKeith is a Managing Director of the Netherlands Group of Companies.

Mr. McKeith is the Executive Vice President: Head of Exploration and Business Development for the Gold Fields Group.

Mr. McKeith was appointed Executive Vice-President, Exploration and Business Development from 1 October 2007. Prior to rejoining Gold Fields, he served as Chief Executive Officer for Troy Resources NL. He had been with Gold Fields for 17 years before then, the last two – from August 2004 until January 2006 – as Vice- President of Business Development at Gold Fields.

Mr. Pauley is a Managing Director of the Netherlands Group of Companies.

Mr. Pauley is the Head of Group Taxation for the Gold Fields Group. Mr. Pauley was appointed on 1 April 2000 and has more than 25 years’ experience in taxation and financial management. Prior to joining Gold Fields he served a 10 year period at Sasol Limited a major listed multinational Petrochemical and Mining company where he was the Principal Tax Advisor and Head of the Tax Division.

Mr. Lor is a Managing Director of the Netherlands Group of Companies.

Mr. Lor was appointed as director in 2010 and  within the Gold Fields Netherlands Group is responsible for governance and compliance rules and contracting with third parties.  Mr. Lor has more than 9 years experience in this field of work and also  worked in the international tax advisory departments of KPMG Meijburg & Co and Arthur Andersen.

Mr. Schoeman is a Managing Director of the Netherlands Group of Companies.

Mr. Schoeman was appointed a director in 2011 and  within the Gold Fields Netherlands Group is responsible for governance and tax compliance and contracting with third parties. Mr. Schoeman has more than 25 years experience in this fields of work and also worked for KPMG and for the Dutch Ministry of Finance.

Ms. Hewitt is a Managing Director of the Netherlands Group of Companies.

Ms. Jewitt was appointed as director in 2007 and within the Gold Fields Netherlands Group is responsible for the corporate governance and compliance rules. Ms Jewitt has more than 22 years experience in this field of work and has previously been involved with a number of internationally stock quoted companies.