kloof-driefontein complex (kdc) - gold fields · kdc west no 1 metallurgical plant 1. overview gold...

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Kloof-Driefontein Complex (KDC)Technical Short Form Report31 December 2011

Gold Fields: KDC Gold Mine – Technical Short Form Report 2011 3

Salient features

¨ Mineral Resources at 63.8 Moz (excluding Tailing Storage Facility ounces of 3.7 Moz).

¨ Mineral Reserves at 13.7 Moz (excluding Tailing Storage Facility ounces of 2.9 Moz).

¨ Safe steady state production strategy driving quality volume.

¨ Accelerate extraction of higher grade Mineral Reserves to bring value forward.

¨ Optimise surface resources extraction strategy.

¨ Long-life franchise asset anchoring gold production to 2028 (17 years).

The KDC has a world class ore body with long-life Mineral Resources and Mineral Reserves (17 years) which has produced in excess of 181 Moz from the renowned

Witwatersrand Basin, the most prolific gold depository in the world.

Geographic location

KDC WestMining Right

KDC EastMining Right

KDC East = Kloof G.M.KDC West = Driefontein G.M.

Cape TownPort Elizabeth

Kimberley

Bloemfontein Durban

Welkom

JohannesburgPretoria

Carletonville

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Geographic location IFC

1. Overview Page 1

2. Key aspects Page 2

3. Operating statistics

4. Geological setting and mineralisation Page 4

5. Mining Page 7

6. Projects Page 9

7. Mineral processing Page 11

8. Sustainable development Page 12

9. Mineral Resources and Mineral Reserves Page 13

10. Regulatory codes Page 18

11. Competent Persons Page 18

12. Brief history Page 22

13. Key technical staff Page 23

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1. OverviewGold Fields Limited owns a 100% interest in GFI Mining South Africa (Pty) Limited (GFIMSA), which holds a 100% interest in KDC (Kloof-Driefontein Complex). The mine is situated between 60 and 80 kilometres west of Johannesburg near the towns of Westonaria and Carletonville in the Gauteng Province of South Africa. KDC is a large, well-established shallow to ultra-deep level gold mine with workings that are accessed through, 12 shaft systems (five business units – BU’s) that mine various gold-bearing reefs from open ground and pillars that occur at depths between 600 and 3,347 metres below surface. The shaft systems include 10 sub-vertical shafts and two tertiary shafts. Ore extracted from the gold bearing reefs is processed at two metallurgical plants.

The formation of KDC was designed to create an environment of uniformity, alignment and cohesion that will enhance the singular identity that will underpin the new consolidated operation. The overall strategy of the amalgamation of the two mines was to improve operational and financial efficiencies in line with Gold Fields’ long-term stated vision, “To be the global leader in sustainable gold mining”, which encompasses safety and human capital as well as the environmental and social licence to operate.

During the past 12 months KDC produced 1.1 Moz of gold from a combination of underground mining and processing of surface waste rock dump material. KDC employees costed for the period was 26,685 including contractors. The area mined averaged some 62,888 m2 per month, underground ore processed at 400 kt per month and surface material treated 501 kt per month. Total gold production averaged some 2,852 kg per month at an average yield grade of 3.2 g/t. Significant increases in power, consumables and labour costs have limited the benefit of an increased gold price with the effect that pay limits show a slight increase year-on-year.

This Technical Short Form Report reflects the latest Life of Mine plan input parameters, coupled with an updated Mineral Resource and Mineral Reserve statement, as at 31 December 2011. The geological and evaluation models have been updated to reflect the latest available data. These models are coupled with an integrated and holistic mine design and schedule that is based on current performance levels and attempts to take cognisance of the inherent risks associated with deep level mining.

All Mineral Resource and Mineral Reserve figures reported are managed unless otherwise stated and Mineral Resources are inclusive of Mineral Reserves.

Cover image:

KDC East 7 Shaft Complex

Note: For abbreviations refer to page 28 and for glossary of terms refer to page 29 – “Mineral Resources and Mineral Reserves Overview 2011”.

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2. Key aspects

Independent audit Figures reported in this declaration are as reviewed by independent external consultants as at 31 December 2011 (Optiro Pty Limited). Gold Fields has been informed that the audit identified no material shortcomings in any process by which the KDC Mineral Resources and Mineral Reserves were evaluated

Prepared by Gold Fields Limited in compliance with the SAMREC Code (2007 edition)

Effective date 31 December 2011

Source of information This Technical Statement is a summary of the detailed internally sourced document entitled December 2011 Kloof Competent Persons report and December 2011 Driefontein Competent Persons Report

Personal inspection Personal inspection is conducted by the Competent Persons as listed, who are full-time employees of Gold Fields Limited

General location KDC is situated 60 to 80 km west of Johannesburg at latitude 26º 24’ S and longitude 27º 30’ E between Westonaria and Carletonville in the Gauteng Province of South Africa. The site is accessed via the N12 highway between Johannesburg and Potchefstroom with a well developed network of tarred roads that surround the area

Licence status and holdings

KDC is entitled to mine all declared Mineral Resources and Mineral Reserves and has all the necessary statutory mining rights in place. Kloof Gold Mine (KDC East) and Driefontein Gold Mine (KDC West) have new order mining rights in respect of the mining area totalling 28,648 hectares. GFI Mining South Africa (Proprietary) Limited (GFIMSA) holds a 100% interest in KDC. Gold Fields Limited holds a 100% interest in GFIMSA. The tenor of the mining right at KDC West is 25 years and at KDC East 15 years

Operational infrastructure KDC is a large, well-established shallow to ultra deep level gold mine that is accessed from surface through a number of shafts to its lowest working levels some 3,347 m below surface. It comprises twelve producing shaft systems that mine different contributions from open ground and pillars, and five metallurgical plants.

Climate No extreme climatic conditions are experienced that may affect mining operations

Deposit type Gold mineralisation occurs within laterally extensive quartz pebble conglomerate horizons called reefs, which are developed above unconformable surfaces within a depositional system near the basin margin. KDC exploits three primary reefs namely the Carbon Leader Reef (CL), Ventersdorp Contact Reef (VCR) and Middelvlei Reef (MR) with the CL representing the majority of the current Mineral Reserves in the west of the mining right and the VCR representing the majority of the current Mineral Reserves in the east of the mining right

Life of Mine (LoM) It is estimated that the current Mineral Reserves will be depleted in 2028

Environmental/Health & Safety

KDC systems, procedures, training etc. are at international best practice levels. KDC obtained its ISO 14001:2004 certification in 2008, and has maintained its certification since then. The mine has full compliance status for the International Cyanide Management Code with certification awarded in September 2009

Reporting codes Gold Fields reports its Mineral Resources and Mineral Reserves in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (2007 SAMREC Code), and other relevant international codes such as SEC Industry Guide 7, JORC Code and NI 43-101. The Mineral Resources and Mineral Reserves are underpinned by an appropriate Mineral Resource Management process and protocol to ensure adequate corporate governance in respect of the intent of the Sarbanes-Oxley Act

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3. Operating statistics

UnitsDec

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June2009

June2008

Surface mining

Total mined kt 6,017 2,432 5,085 4,001 3,720

SRD material to plant (screened) kt 6,017 2,432 5,085 4,001 3,720

SRD Head grade g/t 0.8 0.7 0.8 0.7 0.8

Underground mining

Ore mined kt 3,237 1,898 3,913 4,096 4,678

Mined grade g/t 10.8 11.4 10.8 11.9 12.5

Primary development km 45.0 23.9 46.8 42.9 61.1

Primary reef developmentAdvanced km 7.7 4.0 7.5 7.8 10.7

Value cm.g/t 2,100 2,041 2,028 1,344 1,462

Processing

– Underground tonnes kt 4,814 2,720 5,298 5,535 6,214

– Surface tonnes kt 6,017 2,432 5,085 4,001 3,720

Total tonnes treated kt 10,831 5,152 10,383 9,536 9,934

– Mill head grade (underground)2 g/t 6.5 6.8 7.0 8.0 8.5

– Mill head grade (surface) g/t 0.8 0.7 0.8 0.7 0.8

Total head grade g/t 3.3 3.9 3.9 5.0 5.7

– Yield Underground g/t 6.3 6.6 6.8 7.8 8.2

Surface rock dumps g/t 0.7 0.7 0.8 0.7 0.9

Combined yield g/t 3.2 3.8 3.8 4.8 5.5

Plant recovery factorUnderground % 97 97 97 97 97

Surface rock dumps % 92 92 92 92 92

Gold produced

Underground kg 30,105 17,931 35,757 42,974 51,178

Surface rock dumps kg 4,113 1,787 3,943 2,838 3,220

Total gold producedkoz 1,100 634 1,277 1,473 1,749

kg 34,218 19,719 39,700 45,812 54,398

Gold sold koz 1,100 634 1,277 1,473 1,749

Financial

Operating cost

UndergroundR/kg 227,210 200,037 192,765 146,184 104,398

R/t 1,424 1,319 1,301 1,135 860

SurfaceR/kg 146,292 124,978 92,739 117,338 85,924

R/t 100 92 72 83 74

Total cash cost

R/kg 219,642 190,973 176,819 137,298 98,230

R/t 694 731 676 660 538

US$/oz 946 832 726 474 420

Capital expenditure

R million 2,300 1,266 2,244 1,993 1,914

R/kg 67,216 64,192 56,524 43,504 35,187

US$/oz 289 280 232 150 151

Notional cash expenditure (NCE)R/kg 285,017 257,391 239,305 187,883 138,546

US$/oz 1,228 1,121 982 648 593

General

Employees (TEC) number 26,685 31,086 32,772 31,778 33,136

Mineral Reserves* Mt 69.2 96.4 116.6 128.4 131.4

Mineral Reserve Head Grade* g/t 6.1 6.5 7.1 7.0 7.3

Mineral Reserves* Moz 13.7 20.2 26.7 28.7 30.8

Expected Life of Mine years 17 30 32 31 331 Figures shown represent the six months to 31 December 2010. Rounding off figures presented in this report may result in minor computational discrepancies. Where this occurs

it is not deemed significant.2 The decline in head grade in 2011 is due to an increase in the milling of underground waste.* SRD Mineral Reserves included; TSF Mineral Reserves excluded. Surface rock dump (SRD); Surface tailings facility (TSF).


KDC is located in the West Wits Line that forms part of the Far West Rand Goldfields situated on the northwestern rim of the geologically unique and renowned Witwatersrand Basin, which is

the world’s premier gold region.

The Witwatersrand Basin comprises a 6,000 metre thick sequence called the Witwatersrand Supergroup, which consists of predominantly detrital sedimentary rocks interspersed sporadically with auriferous and uraniferous quartz pebble conglomerates, termed reefs, especially in the upper parts of the succession classified as the Central Group. The mining area is underlain by outliers of Karoo Supergroup shales and sandstones, followed by Pretoria Group sediments and the Chuniespoort Group dolomites. The dolomites overlie the Klipriviersberg Group volcanic rocks, which in turn cap the Ventersdorp Contact Reef and sediments of the Central Rand Group that hosts the other gold-bearing reefs.

The reefs, which are generally less than 2 metres thick, are widely considered to represent extensive fluvial fans. Deposition took place along the interface between a fluvial system that brought the sediments and heavy minerals from an elevated source-area and a lacustrine littoral system that reworked the material and redistributed the finer sediments along the shoreline of an intracratonic lake or shallow water inland sea. The gold is mainly of detrital origin, deposited syngenetically with the conglomerates and interrelated with sedimentary features such as unconformities and fluvial channels.

Although the gold generally occurs in native form and is usually associated with pyrite and carbon, most of the gold has been subsequently modified and remobilised during secondary hydrothermalism, giving rise to the most favourite depositional model currently in use, i.e. Modified Palaeoplacer Model. The model emphasises a control on the occurrence of ore minerals by placer-forming mechanisms, while accepting some modification by metamorphism, is the generally accepted model for the origin of gold and uranium mineralisation of the Witwatersrand Basin. For several decades now, models using sedimentological principles were very successfully used to predict gold distribution on mine properties.

Local geologyThe KDC is bound by the West Rand Fault to the east separating it from the South Deep Gold Mine, and is bisected by the Bank Fault, a large west dipping fault with a down-throw to the west resulting in the Bank Break phenomenon. The structure east of the Bank Break (KDC-East) is dominated by the West Rand and Panvlakte Horst blocks, which are superimposed over broad folding associated with the southeast plunging West Rand Syncline. The northern limb of the syncline dips in a south-southwesterly direction and the southern limb in an east-southeasterly direction.

In the area east of the Bank Break (between the West Rand and Bank Faults), the VCR and the underlying Central Rand Group strata of the Witwatersrand Supergroup have a general north-northeast strike and dip to the east-southeast at between 25° and 45°. Major geological structures within the domain comprise normal faults sub-parallel to the West Rand Fault. Sympathetic to it are north-northeast trending

4. Geological setting and mineralisation

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dykes with little or no apparent offset of the stratigraphic units and younger, easterly trending sinistral wrench faults, some of which host dyke material. Several large dykes also contribute to dividing the West Wits Line into a series of water compartments. Local bedding plane faulting along the VCR horizon has resulted in the elimination of VCR in some areas as well as the duplication of VCR in other areas.

The vertical separation between the VCR and MR increases from north to south, east of the Bank Break (VCR overlies progressively younger strata southwards) and from east to west, west of the Bank Break (VCR overlies progressively younger strata westwards). This is a result of the relative angle of the VCR unconformity surface to the regional strike and dip of the underlying Central Rand Group strata. This unconformity feature, in conjunction with the structural effects of the Bank Fault (Bank Anticline), results in the elimination of the CL and MR in a V-shaped area closing to the south just west of the Bank Fault (D5 Shaft area).

PilgrimKDC East

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KDC EastMain Shaft

South DeepTwin Shaft

VCR Digital Terrain Model

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KDC East3 Shaft

KDC East4 Shaft

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West of the Bank Break the VCR and the underlying Central Rand Group strata have a general east-west strike and dip tothe south at between 20° and 25° (VCR 22° to the south-southeast). Major geological structures within the domain comprise normal faults sub-parallel to the Bank Fault. Sympathetic to it are north-northeast trending dykes with little or no apparent offset of the stratigraphic units and younger, east-northeasterly trending dextral wrench faults, some of which host dyke material. The subcrop line of the VCR against the Black Reef and overlying dolomites trends west-southwest and consequently restricts the area to the west that is underlain by VCR.

KDC exploits three primary reefs, namely the Ventersdorp Contact Reef (VCR) located at the top of the Central Rand Group, the Carbon Leader Reef (CL) near the base of the Group and the Middelvlei Reef (MR), which stratigraphically occurs some 50 to 75 metres above the CL. Various secondary reefs are also being exploited, but only on a limited scale due to localised payability. These reefs include the Kloof and Libanon Reefs of the Kimberley Conglomerate Formation and the Erosion Channel Reef of the Main Conglomerate Formation. This Erosion Channel that eliminates the CL in a broad west-northwest to east-southeast zone, sometimes contains a conglomerate which is mined as a secondary reef. For reporting purposes, the Erosion Channel Reef is grouped with the CL and is not reported separately.

In the area east of the Bank Break, the majority of mining takes place on the VCR, which constitutes 93% of the Mineral Reserve, the MR 4%, and the Kloof Reefs the remaining 3%. West of the Bank Break the CL is generally a high grade reef and represents approximately 75% of the current Mineral Reserve, the VCR 23% with the remaining 2% comprising mainly the MR. Surface rock dump material is also processed.

Ventersdorp Contact ReefIn addition to the many economically viable reefs found in the Central Rand group, the VCR, found at the base of the Ventersdorp Supergroup, constitutes a further significant principal economic reef practically unique to this goldfield. The Ventersdorp Supergroup lithologies truncate the Central Rand Group sediments, classifying the auriferous VCR as part of the Venterspost Formation.

The VCR represents the final phase of sedimentation prior to the extrusion of the lavas of the Klipriviersberg Group and unconformably and disconformably overlies the underlying sediments of the Witwatersrand Supergroup. The VCR is dated at approximately 2.7 billion years and is an auriferous palaeoplacer consisting of several complex, inter-calated gravel types (facies). Lavas of the Klipriviersberg Group lie conformably on the gravels (conglomerates) and thus preserved unique characteristics of the sediments and the geomorphology. The sediments have been subdivided into five major facies types, which consist of a complex series of intercalated oligomictic and polymictic conglomerates of varying thicknesses and differing average gold grades.

For the 31 December 2011 Mineral Resource and Mineral Reserve estimate, minor corrective changes were made to the VCR facies model based on the latest geological information.

Middelvlei ReefThe MR is correlated with the South Reef of the Central Rand Goldfields. It occurs some 55 metres above the CL over most of the mining right area, except where eliminated by the VCR erosion surface, and is made up of a number of well-packed, large quartz pebble conglomerate bands. In some areas the MR assemblage is as much as 6 metres thick with well developed top, middle and bottom bands, separated from each other by quartzite partings.

The MR is particularly well developed on the eastern side of the Bank Break (KDC-East) where it is considered as a principal reef. West of the Bank Break the MR is less well developed with only limited areas of potential economic viability, which are restricted to the proximal facies of a braided-stream depositional environment.

The MR in general has well defined “pay shoots” which are limited in extent and therefore difficult to project or explore. The bottom band is most exclusively the economic horizon of the MR, ranging from a single pebble lag to a maximum thickness of 80 centimetres. The current MR model is based on sedimentology and value/channel width trends to highlight prospective areas and to constrain the estimation process. For the 31 December 2011 Mineral Resource estimate, changes were made to the facies model at various shaft domains based on the latest geological information.

Carbon Leader ReefThe CL is the principal economic reef on the western side of the Bank Break (KDC-West) and correlates with the Main Reef of the Central Rand Goldfields and varies in thickness from a mere carbon streak to a solid seam of carbon up to 7 mm thick, to a multiple band medium pebble conglomerate, on average some 200 cm thick. Although the CL is present east of the Bank Break, it is found as distal equivalents of the former and grades into scattered grits with less gold mineralisation, generally of uneconomic concentrations.

The CL has a low angle of unconformity. The footwall consists of a package of conglomerates, usually referred to as the “Footwall bands of the CL” (also the “North Leader Zone”) and this zone is characterised by lenses of conglomerates, separated by yellowish grey argillaceous quartzite. The basal conglomerate band of this zone is called the North Leader (NL).

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VCR FACIES:

Bimodal TerraceMilky Cobble Terrace

Apple Green TerraceSandy 1

Sandy 2

Slope Reef

Main Shaft

Surface


The hangingwall of the CL consists of a siliceous grey quartzite overlain by the Green Bar, a chloritoid shale occurring over most of the Witwatersrand Basin.

Four facies of CL are present; a carbon seam and a single band conglomeratic facies in the west, a multiple band facies in the central parts and a single band conglomeratic facies in the east.

The multiple band CL facies is defined sedimentologically as a reef containing more than one conglomerate band separated by internal quartzite bands. The internal quartzite is similar in appearance to that forming the hangingwall of the CL. The channel width of the facies varies from as little as 10 cm to more than 420 cm and the number of conglomerates is highly variable because of their lenticular nature (see schematic illustration below).

The gold grade of the multiple band facies is generally lower than that of the single band facies but, because of its channel width, their gold accumulation (cm.g/t) is often similar. Carbon seams are also known to occur in these reefs accompanied by an increase in gold content.

Secondary ReefsThe Kloof, Libanon and Erosion Channel Reefs are a relatively minor component of the KDC Mineral Resource. The reefs

are channelised and due to their localised payability, exploration is difficult and often neglected due to the sporadic nature of economic mineralisation. However, when in reach of exploration platforms from current underground development, exploration programmes are initiated to test for economic exploitable areas or zones.

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Exploration and drillingExploration drilling was generally executed from surface on irregular grids of 500 to 2,000 metres dependent on historical exploration strategy, depth of the mineralised horizons and geological uncertainty. Once underground access is available, infill grade control drilling is undertaken from access haulages and cross cuts to provide a 30 to 100 metre grid depending on geological requirements from structural, safety and evaluation perspectives.

A continuous Mineral Reserve definition drilling programme is in place and is aligned to facilitate better planning and optimisation, with appropriate lead time, to ensure robust geological and evaluation models, that will underpin the resource definition of the VCR, MR and CL. The programme will confirm the ore body potential in all areas of KDC, including secondary minerals such as uranium and sulphur. Exploration activities are focused on the extension of existing ore bodies and the identification of new ore bodies, both at

existing sites and at undeveloped sites. Once a potential area has been discovered, exploration is extended and intensified in order to enable clearer definition of the ore body and the potential portions to be mined. Geological techniques are constantly refined to improve the economic viability of prospecting and mining activities.

A comprehensive borehole management QA/QC programme is embedded at KDC and is intended to monitor sampling and laboratory performance in an effort to control (minimise) the total possible error in the sampling-splitting-analysis sequence. This is achieved by monitoring and controlling four essential components of the sequence:i. Sample Management and Sample Security;ii. Laboratory Sample Preparation and Assaying;iii. Analytical Accuracy and Precision; andiv. Reporting Accuracy.

At KDC, for the period ending 31 December 2011, the following exploration drilling was achieved:

Exploration drilling and expenditure

Operation

December 2011 Dec 2010* June 2010

Metres drilled

ZAR millions

US$ millions

US$ millions

US$ millions

KDC West 10,615 11.518 1.552 0.791 1.096

KDC East 14,519 13.257 1.788 0.793 1.767

Total 25,134 24.775 3.339 1.584 2.863

December 2011 exchange rate: US$:R7.42.* Six month period ending 31 December 2010.

5. Mining

A significant challenge facing the KDC operation is seismicity and to a lesser extent flammable gas. To reduce the impact of seismicity, KDC practises the closely spaced dip pillar mining method and has also adopted a revised stope support standard in all areas with friable hangwall, especially in areas that have the Westonaria Formation Lava hangingwall.

Early detection methods and increased ventilation of the shafts are being used to minimise the risk of incidents caused by flammable gas. Extensive cooling infrastructure is required to maintain comfortable conditions for workers due to the depth of the operations.

The rock engineering practices are aimed at reducing risks and thus improving safety associated with gravity and seismic related rockfall and rockburst incidents through implementing the recommendations from the risk assessment department (roof bolting, netting and closer spaced packs), testing of

high-yield elongate support units and continuous assessment of the seismic monitoring systems.

Mining methodsAccess to the various auriferous reefs being mined is provided through vertical, inclined and declined shaft systems. If additional depth is required to fully exploit the reef, and it is economically feasible, then secondary (sub-vertical) or tertiary shafts are sunk from the underground levels. Horizontal development at various intervals of a shaft, known as levels, extends access to the horizon of the reef to be mined. On-reef development then provides specific mining access.

The predominant mining layout at KDC is breast stoping with dip pillars, with a minor contribution from scattered mining. Mining spans and pillar widths depend on the location, the reef being mined and the depth of working.

The KDC operation is engaged in underground and surface rock dump mining and is a large, established shallow to deep level gold mine that is accessed from surface via 12 shaft systems

to the current lowest working level some 3,347 metres below surface.

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The mining methods employed at KDC vary between shafts and can be subdivided as follows:

1. KDC West operation ¨ Breast mining with dip pillars in the shaft pillar extraction

at D1 Sub-Vertical Shaft; ¨ Breast mining with dip pillars at D1 Tertiary and D5

Sub-Vertical Shafts; ¨ Pillar extraction and scattered mining at D2 Shaft; ¨ Mini-longwall mining, scattered mining, shaft pillar and

pillar extraction at D4 Sub-Vertical Shaft; ¨ Pillar extraction and scattered mining at D6 Sub-Vertical

Shaft; ¨ Pillar extraction and scattered mining at D8 Shaft; and ¨ Reclamation and vamping at D6 Tertiary and D10

Sub-Vertical Shafts.

2. KDC East operation ¨ K1 SV Shaft – remnant pillar extraction and breast mining

with dip pillars; ¨ K2 SV Shaft – remnant pillar extraction and breast mining

with dip pillars; ¨ K3 and K7 Shafts – breast mining with dip pillars and

remnant pillar extraction; ¨ K4 Shaft – breast mining with dip pillars; and ¨ K8 Shaft – remnant pillar extraction and breast mining

with dip pillars.

KDC is also processing old surface rock dumps containing gold. The dumps are loaded and screened to smaller fractions and then processed at D2, D3 and K1 plants.

Mine planning and schedulingAll mine design and scheduling is undertaken using Cadsmine© computer software in conjunction with the Integrated Resource and Reserve Information System (IRRIS) proprietary to Gold Fields. This includes the delineation of mining or stoping areas for each mining level and section, usually leading from an extension to the existing mining sequence, and the definition of the necessary development layouts. The latest update of the geological structure model is referenced and incorporated into the mine design.

The geological models are validated in IRRIS, where resource blocking is also carried out. All blocks are captured according to the geological models and geozones. The mine design includes rock engineering pillars comprising bracket pillars along major geological structures, as well as stability pillars related to the appropriate mining method. An allowance for minor faulting, structure and reef loss, based on historical results, is applied.

The mine design is scheduled on a monthly basis for the first two years of the operational plan, which is extended on an annual basis for the remaining period of the LoM Plan. The production parameters necessary for the development of the strategic LoM plan are captured from the computer models on a shaft basis for each period. The inclusion of the surface Mineral Resources is reviewed annually as part of the strategic planning process.

The C2012 operational plan, with respect to remnant pillar mining, was aligned to the updated Gold Fields Pillar Mining Code of Practice, which takes cognisance of a stringent safe remnant extraction practice. The rock engineering risk factors (risk matrix) associated with remnant extraction were identified as: Energy Release Rate; Average Pillar Stress; Shape; Width-to-Height Ratio; and the presence of seismically active geological structures.

Mineral Reserve development will continue to be a key performance indicator and will be accelerated further in appropriate areas. The following table indicates the development advanced for the last twelve months to December 2011. A total of 45.0 kilometres was developed with 7.7 kilometres driven on-reef.

Development results for 12 months to December 2011:

KDC West

Category CL MR VCR Total

Advanced (metres) 18,716 1,522 5,391 25,628

On-reef (metres) 3,223 405 739 4,367

Sampled (metres) 3,042 321 411 3,774

Channel width (cm) 78 49 42 72

Average grade (g/t) 23.7 24.7 41.2 24.8

Average value (cm.g/t) 1,851 1,211 1,732 1,707

KDC East

Category KLOOF MR VCR Total

Advanced (metres) 686 2,250 16,435 19,371

On-reef (metres) 257 440 2,614 3,311

Sampled (metres) 201 492 2,304 2,997

Channel width (cm) 111 104 138 131

Average grade (g/t) 16.8 7.1 21.0 19.0

Average value (cm.g/t) 1,876 741 2,907 2,482

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Production and hoisting capacities

Business unit ShaftOperating

Shaft

Hoisting capacity

(ktpm)BU 1 D1 Shaft D1 105.0

D1 SV 105.0 D1T 121.0D5 Shaft D5 70.0 D5 SV 159.0

BU 2 D2 Shaft D2 165.0D4 Shaft D4 SV 57.0

BU 3 D6 Shaft D6 66.0 D6 SV 96.0

D6 T 65.0D8 Shaft D8 66.0D9 Shaft D9 –D10 Shaft D10 SV –

BU 4 K3 Shaft K3 SV 76.5K4 Shaft K4 75.0

K4 SV 82.0BU 5 K1 Main Shaft K1 150.0

K1 Shaft K1 SV 91.0K2 Shaft K2 SV 101.0K7 Shaft K7 176.0

K7 SV 136.0K8 Shaft K8 73.0K10 Shaft K10 –

SV: Sub vertical shaft; T: Tertiary

Note: Hoisting capacity for K4 SV will be upgraded within the next three years

6. Projects

KDC-West 5 Shaft Decline ProjectKDC West D5 decline, which was included in the previous LoM (at pre-feasibility), has been excluded from the current LoM (3.7 million ounces) due to a negative NPV (at R310,000/kg) resulting from a reduction in mined value and escalation of costs.

The mine is completing a feasibility study, aimed at identifying alternative, financially viable means of accessing the below infrastructure Mineral Reserves. The study will be completed in 2012.

KDC-East 4 Shaft Re-capitalisation ProjectIn order to enable 4 Shaft to achieve optimum production levels, an extensive re-capitalisation study has been conducted. On full approval of the programme, the project will comprise the following initiatives:

¨ Development of inter levels on 44 level north and 42 level south;

¨ Installation of an ore silo between 45 and 46 levels to handle the projected increase in production;

¨ Mechanical upgrade of the sub-vertical shaft rock winder; ¨ Completion of internal service and ventilation systems in

the 59 line and 43 line;

The current major mine projects at KDC are the KDC West Decline Project at D5 Shaft, the KDC East 46 Level Project at K4 Shaft, the Growth Project for the treatment of surface rock dump

material and the Tailings Storage Re-treatment Process Project.

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s ¨ Installation of a surface rock winder at the 4 Main shaft; and ¨ Access to the ground between 45 and 46 level (downsize

of the previous 55 decline project). A revised layout of developing 46 level from the current 4SV shaft was re-evaluated in terms of the time span to access the reef horizon and the difficulty in terms of all the current infrastructure on this level. A feasibility study has been conducted on a twin mini decline system from 45 to 46 level on the northern side of shaft in close proximity to the target orebody, This will facilitate faster and easier access to the economic Sandy 1 VCR facies, the majority of which is located between 45 and 46 level.

The GROWTH (Gold Recovery Opportunities from Waste Treatment Holistically) ProjectKDC has many low grade (waste) surface rock dumps (SRDs) and residue tailings facilities that have accumulated since mining operations began more than 40 years ago. In some instances these SRDs are being selectively reprocessed through existing plants where surplus milling capacity exists. With the exception of pre-screening, no other upgrading of the material is generally undertaken pre processing. These SRDs offer a significant opportunity to Gold Fields to realise additional

ShaftsMined out AreasProcessing Plant

0 1 2.5 km


slurry overflows from tank to tank via the interconnected open launders. A residence time of two hours per leach tank is adequate to achieve the best possible recovery from a tailings retreatment operation.

The leached slurry is pumped to the Carbon-In-Pulp (CIP) circuit where dilution water is added to achieve a pulp density of 1.4 gm3. The leached slurry is contacted with activated carbon, where dissolved gold in the slurry is absorbed onto the carbon. Loaded carbon is pumped from the head tank in a CIP or CIL arrangement and screened for entrained slurry to be sent to elution and electrowinning.

The residual slurry after gold extraction from a CIL or a CIP arrangement is pumped to the tailings storage facilities (TSF) for final tailings disposal.

The diagram below describes the basic TFS monitoring flow sheet while the pictures illustrate the physical operation at KDC West Dump 13, which is on the footprint of TSF 3.

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gold production, as well as reducing closure liability, as the sites ultimately require rehabilitation.

The Gold Recovery Opportunities from Waste Treatment Holistically (GROWTH) concept has been adopted as a vehicle to drive the value proposition associated with the environomics of processing SRD’s and TSF’s for gold recovery. The first phase of the GROWTH concept is the full implementation of the Python Plant Technology for the processing of SRD’s at all sites, and comes with the advantage of gold recovery along with concurrent rehabilitation.

The project is designed to treat SRD’s to produce gold, backfill material, as well as industrial aggregate suitable for an appropriate off-take agreement as part of our Sustainable Development’s local economic development (“LED”) mandate This basket of products will result in a positive cash flow and facilitate the ultimate concurrent rehabilitation of the SRD sites ahead of current life of mine closure schedules.

Tailings Storage Re-treatment Process ProjectGold Fields has a total of six dormant Tailings Storage Facilities (TSF) at its KDC operation. Two of these are at KDC West operation with an average gold grade of 0.47g/t while four at the KDC East operation averaging 0.27g/t gold. A pre-feasibility study exercise is currently being finalised through a project management company, and will be followed by a full feasibility study to determine the best means of bringing to account the 2.9 million ounces in Mineral Reserves.

The Tailings Storage Facilities (TSF) material is reclaimed by hydraulic mining using high pressure monitoring guns placed against the face of the TSF or on top of the TSF. The material is reclaimed at an average gold grade of 0.3 g/t.

The reclaimed material is re-pulped with the resulting slurry gravitating to the sump at the monitoring pump station where dilution water is added (if required) to a desired pulp density of 1.3 gm3 (40% solids). Slurry is pumped and transferred to a tramp screen to remove vegetation, coarse material and any undesirable material in the process. The tramp undersize screen material gravitates via the launder into a pulp transfer tank. The slurry is pumped from the pulp transfer tank to the gold treatment plant.

The slurry is received into a surge feed tank ahead of pumping to the cyclone cluster at a pre-determined cyclone feed density to achieve the requisite classification. The cyclone overflow at 80% passing 75 µm gravitates to the dewatering thickeners or cyclones while the cyclone underflow gravitates to the regrind mill sump where it is pumped to the regrind mill for further particle size reduction (80% passing 75 µm).

Flocculent and lime are added to the dewatering thickener, to aid in the solid/liquid separation, and the thickened slurry underflow is pumped to the leach circuit at a density of between 1,500 to 1,600 t/m3. The thickener underflow slurry is pumped to a train of leach tanks (may also be Carbon In Leach) via a leach conditioning tank where cyanide (sheared oxygen and lime may also be added if required) is added prior to the leaching process. Clear water overflows the thickener and is returned to the process water tank for re-use in the process.

Lime is added to maintain a leach process pH of above 10.5. The leached

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TSF

Pulp receivingat plant

High pressure watermonitoring

Underflow

Classification and regrind

Overflow

Screening

Gold extraction

Pulp transfer

Disposal to TSF

11

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7. Mineral processing

KDC’s first gold pour took place in 1952 at the original KDC D2 Gold Plant with ore obtained from the now defunct 11 shaft. Currently D2 Plant is only treating surface waste rock material at 200 kt per month. It is delivered by rail from rock dumps to the plant feed bunkers. The process flow incorporates two SAG mills, a ball milling circuit, cyanide leaching and a carbon in pulp (CIP) plant. Loaded carbon is transported to the central Elution Circuit at D1 Plant.

The D1 Plant was commissioned in 1972 as a three stage crushing, two stage milling, filtration and zinc precipitation operation. The plant was initially designed and installed to treat 100 kt of ore per month, but this has been gradually increased to a monthly throughput of 240 kt. The mineral processing technology in the plant is based on SAG milling circuit followed by cyanide leaching. The SAG milling circuit was commissioned in September 2003 and replaced the conventional crushing and milling circuit while the filtration and zinc precipitation processes were replaced by the state of the art carbon in pulp (CIP) plant. Originally a uranium plant, D3 Plant was converted in 1998 to a surface low-grade waste rock treatment facility. The plant was constructed using a combination of new as well as existing equipment on site. This plant has the capacity to treat 115 kt per month of rock material reclaimed from the waste rock dumps located on the mine.

The K1 Plant was commissioned in 1968 to treat underground ore. This plant comprises three stage

crushing, utilising open circuit rod mills for primary milling and closed circuit pebble mills for secondary milling. After milling, the pulp is thickened and then processed through air agitated leaching; drum filtration, zinc precipitation and smelting to doré. In June 2001 an AAC Pump Cell CIP circuit was installed to replace the less efficient drum filtration and zinc precipitation. Smelting was also discontinued, with loaded carbon being transported to the K2 Plant for elution and thermal regeneration.

The K2 Plant was commissioned in November 1990. This plant receives underground Run-of-Mine ore (RoM), which is crushed and delivered to a stacker reclaimer system, where the ore is stored and blended prior to reclamation and delivery to the mills. Surface material is also delivered to the stacker pad to utilise plant capacity. There are two Semi-Autogenous Grinding (SAG) mills, which are equipped with variable-speed ring motor drives, and can be operated as fully autogenous units or as semiautogenous units by adding steel grinding balls. Milled ore is thickened ahead of cyanide leaching in air-agitated tanks and adsorption onto activated carbon in a conventional CIP circuit. Loaded carbon is eluted in an AARL elution circuit, which was upgraded in June 2001 and further in October 2003. It now serves as the central elution facility for KDC East. The upgrade included the installation of Continuous Electrowinning Sludge Reactors, which are working very efficiently. Cathode sludge is filtered and smelted to produce bullion. The current operational capacity of the K2 Plant is 162 ktpm.

KDC operates five gold processing plants, three at the KDC-West operation and two at the KDC-East operation. Both operations’ plants use proven metallurgical processes with

centralised elution, carbon treatment and smelting facilities. Centralisation impacts better recovery rates, giving reduced dissolved gold losses and operating cost,

as well as improved security.

Plant capacities

Plant Capacity (tpm)Efficiency

(% extraction) Material treated

D1 – CIP 255,000 97 Underground ore

D2 – CIP 200,000 91 Surface rock dump

D3 – CIL 115,000 90 Surface rock dump

K1 – CIP 170,000 91 Surface rock dump

K2 – CIP 162,000 98 Underground ore

KDC East Python 1 – Flotation 71,000 87 Surface rock dump

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8. Sustainable development

Gold Fields has introduced structures that encourage a networked interface between disciplines like safety, health, environmental engineering, natural environment, risk, stakeholder engagement, social management, legal and communication. This approach has allowed Gold Fields to capitalise on synergies and to avoid duplication. In this regard, several Key Performance Indicators (KPIs) are monitored and utilised to make informed business decisions.

Gold Fields is designing a safety management system called the Safe Production Management System, to address outstanding issues identified and to assist the operations to improve health and safety to best practice levels. Gold Fields has committed itself to the Mine Health and Safety Council target set by the industry in conjunction with the Department of Mineral Resources. These milestones are based on rate improvements for fatalities, noise-induced hearing losses and silicosis, with the objective of aligning with international norms. Passing of the Mine Health and Safety Act in 1996 heralded a transition to a new paradigm shift in mining health and safety in South Africa. Since that time, the Mine Health and Safety Council has set a benchmark for reduction of accidents to international standards in the South African mining industry by 2013.

KDC’s environmental initiatives are focused on reducing the impact that the mine may have on the environment. All potential sources of pollution like the water discharges are sampled, analysed and monitored on a regular basis. Concurrent rehabilitation projects, like alien vegetation eradication are the current focus.

The Mine has an environmental management team who are supported by specialist assistance from the regional office at Libanon Business Park. Following an audit conducted in October 2011, the mine was certified to be in compliance with ISO 14001: 2004 standard. In addition, quarterly internal audits, as well as annual external surveillance audits of all management units are performed for ongoing verification of conformance. A prefeasibility study on our water management and water related liabilities was completed in 2011. This will be followed by a feasibility study in 2012.

Gold Fields has embraced sustainable development as a business imperative, which is reflected in its vision, values and strategy.

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KDC has, as part of its social management imperative, a portfolio of projects and initiatives designed to give effect to the objectives of the Minerals and Petroleum Resources Development Act (MPRDA). These include, among others, the construction of the Simunye Health Care Facility (pictured below) near Westonaria, which was delivered in partnership with the Gauteng Department of Health and Social Development and the Westonaria Local Municipality. The facility, which boasts modern amenities, will provide comprehensive medical services to a community of more than 48 000 people whose current access to healthcare is limited to a mobile refurbished container and an emergency clinic situated some six kilometres away.

In our effort to reduce our environmental footprint, we are currently exploring the possibility of utilising timber from our flagship project, the Eradication of Alien Vegetation, as input into the bio-mass to energy project. The Eradication of Alien Vegetation project has, to date, resulted in the establishment of six small, medium and micro enterprises (SMMEs) from local mine communities.

KDC also supports agricultural projects for communities in KwaZulu Natal and the Eastern Cape, our major labour sending areas.

For details on the Social and Labour Plan (SLP) refer to Section 5 in the Integrated Annual Review.

Safety statistics

Class Units F2007 F2008 F2009 Dec 20101 Dec 2011

Fatalities number 31 16 22 11 13

Fatality rate per mmhrs 0.33 0.18 0.24 0.13 0.17

LTIFR per mmhrs 11.32 6.72 5.26 6.31 7.951 For six months to December 2010.

13

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9. Mineral Resources and Mineral Reserves

KDC’s Mineral Resources and Mineral Reserves are reported within its Mining Right and are adjusted to show the split between above (AI) and below (BI) current shaft infrastructure as defined by 50 level at KDC’s West operation and 46 level at KDC’s East operation.

In this reporting cycle, considerable Mineral Resource ounces that previously converted to the Measured, Indicated and Inferred Resource categories now remain in inventory. This revision is based on the enhanced in-house resource classification, which takes into account Gold Fields safety value (“If we cannot mine safely, we will not mine”), as well as the principle that there must be reasonable and realistic prospects for eventual economic extraction.

Mineral ResourcesMineral Resources are quoted at an appropriate in situ economic cut-off grade with tonnages and grades based on the resource block model. They also include estimates of any material below the cut-off grade required to be mined to extract the complete pay portion of the Mineral Resource.

KDC EastMineral Resource classification

Tonnes (Mt) Grade (g/t) Gold (’000 oz)

Dec 2011

Dec 2010

June 2010

Dec 2011

Dec 2010

June 2010

Dec 2011

Dec 2010

June 2010

Underground

Measured 15.1 15.2 68.4 17.3 17.1 11.6 8,396 8,365 25,533

Indicated (AI) 45.0 41.1 73.9 7.7 9.1 8.0 11,196 12,025 19,071

Inferred (AI) – 4.7 – – 7.8 – – 1,174 –

Total above infrastructure 60.1 61.0 142.3 10.1 11.0 9.7 19,592 21,564 44,604

Indicated (BI) 17.1 17.8 79.5 17.0 18.1 12.8 9,341 10,348 32,729

Inferred (BI) 17.5 16.0 – 16.9 16.2 – 9,502 8,321 –

Total underground 94.7 94.8 221.8 12.6 13.2 10.8 38,435 40,233 77,333

Surface

Indicated SRD 8.0 22.5 28.3 0.7 0.6 0.6 185 434 559

Measured TSF 250.4 246.0 243.9 0.3 0.3 0.3 2,219 2,204 2,199

Total surface 258.4 268.5 272.2 0.3 0.3 0.3 2,404 2,638 2,758

Grand total 353.1 363.3 494.0 3.6 3.7 5.0 40,839 42,871 80,091

KDC WestMineral Resourceclassification


Dec 2011

Dec 2010

June 2010

Dec 2011

Dec 2010

June 2010

Dec 2011

Dec 2010

June 2010

Underground

Measured 20.2 25.2 48.0 14.3 14.0 10.5 9,312 11,366 16,194

Indicated (AI) 14.5 20.2 24.9 12.0 12.6 12.7 5,595 8,168 10,177

Inferred (AI) – – 17.4 – – 6.0 – – 3,343

Total above infrastructure 34.7 45.4 90.3 13.4 13.4 10.2 14,907 19,534 29,714

Indicated (BI) 31.6 32.3 43.2 9.9 11.1 12.4 10,092 11,517 17,262

Inferred (BI) – – 25.9 – – 5.9 – – 4,899


Surface

Indicated SRD 6.9 7.7 6.8 0.6 0.6 0.7 142 160 152

Measured TSF 121.2 172.1 170.9 0.4 0.3 0.3 1,516 1,865 1,856

Total surface 128.1 179.8 177.7 0.4 0.4 0.4 1,658 2,025 2,008

Grand total 194.4 257.5 337.1 4.3 4.0 5.0 26,657 33,076 53,883

Mineral Resources are reported in full compliance to the 2007 SAMREC Code and are consistent with the approach used at other Witwatersrand deep level gold operations. Realistic

mine design and scheduling is underpinned by dynamic resource modelling.


Modifying factors ¨ The Measured and Indicated Mineral Resources are

inclusive of those Mineral Resources modified to produce Mineral Reserves;

¨ All Mineral Resources and Mineral Reserves are stated as at 31 December 2011. Unless otherwise stated, all Mineral Resources and Mineral Reserves are quoted as 100% (managed) and not attributable with respect to ownership;

¨ All Mineral Reserves are quoted in terms of Run-of-Mine (RoM) grades and tonnage as delivered to the metallurgical processing facilities and are fully diluted;

¨ Mineral Reserve statements include only Measured and Indicated Mineral Resources, modified to produce Mineral Reserves and contained in the LoM plan; and

¨ Mineral Resources and Mineral Reserves undergo both internal and external audits during the year and any issues identified are rectified at the earliest opportunity – usually during the current reporting cycle.

Grade tonnage curvesThe grade tonnage curve (GTC) represents undiluted grade (at block width) and tonnes within the total Mineral Resource. Underground Mineral Resources make provision for minor faulting and minor geological losses.

Modifying factors Unit

KDC East KDC West

Dec2010

Dec2011

Dec2010

Dec2011

Mineral Resource parameters

Gold Price US$/oz 1,100 1,450 1,100 1,450Exchange Rate ZAR:US$ 8.24 7.42 8.24 7.42Gold Price ZAR/kg 290,000 340,000 290,000 340,000Pay Limit cm.g/t 1,460 1,479 1,130 1,290Mineral Reserve parameters

Gold Price US$/oz 1,000 1,300 1,000 1,300Gold Price ZAR/kg 265,000 310,000 265,000 310,000Pay Limit cm.g/t 1,610 1,610 1,240 1,420Mined Value cm.g/t 1,950 1,944 1,687 1,771Mine Call Factor % 83 85 90 85Block Factor % 100 100 99 100Shortfall % 10 14 11 13Stoping width cm 157 156 154 153Mill Width cm 206 212 201 210Plant Recovery Factors

– Underground % 98 98 97 97– TSF % – 55 – 60– SRD % 85 85 85 85

350

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00 4 6 82 10 12 14 16 18 20 2422

Cut-off grade (g/t)

KDC East (underground)

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Cut-off grade (g/t)

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Mineral Inventory Uranium

Tonnes (Mt) Grade (kg/t) Uranium (Mlb)

Dec 2011

Dec 2010

June 2010

Dec 2011

Dec 2010

June 2010

Dec 2011

Dec 2010

June 2010

Underground

Scheduled Inventory 40.9 – – 0.042 – – 3.816 – –

Total underground 40.9 – – 0.042 – – 3.816 – –

Surface tailings

Tailings 371.6 418.1 414.8 0.047 0.048 0.048 38.421 44.307 44.164

Total surface tailings 371.6 418.1 414.8 0.047 0.048 0.048 38.421 44.307 44.164

Grand total 412.5 418.1 414.8 0.046 0.048 0.048 42.237 44.307 44.164

15

Mineral ReservesMineral Reserve estimation at KDC is based on development of an appropriately detailed and engineered LoM plan, which accounts for all necessary access development and stope designs. The planning process incorporates appropriate modifying and technical-economic factors.

Significant increases in power, consumable and labour costs have limited the benefit of an increased gold price with the effect that pay limits show a nominal increase since the December 2010 declaration despite the increase in the Mineral Reserves gold price. Optimised mine design and scheduling on the Mineral Reserve estimate, utilising a US$1,300 per ounce gold price, resulted in a Proved and Probable Mineral Reserve estimate as at 31 December 2011, as follows:

KDC EastMineral Reserveclassification


Dec 2011

Dec 2010

June 2010

Dec 2011

Dec 2010

June 2010

Dec 2011

Dec 2010

June 2010

Underground

Proved 12.0 7.8 16.4 7.8 9.0 7.5 3,021 2,253 3,934

Probable (AI) 15.8 23.6 17.1 7.7 7.5 7.9 3,930 5,684 4,357

Probable (BI) – – 3.4 – – 7.9 – – 868


Surface

Probable SRD 8.0 9.1 11.2 0.7 1.0 0.8 185 294 314

Proved TSF 155.3 – – 0.3 – – 1,618 – –

Total surface 163.3 9.1 11.2 0.3 1.0 0.8 1,803 294 314

Grand total 191.1 40.5 48.1 1.4 6.3 6.1 8,754 8,231 9,473

KDC WestMineral Reserve classification


Dec 2011

Dec 2010

June 2010

Dec 2011

Dec 2010

June 2010

Dec 2011

Dec 2010

June 2010

Underground

Proved 10.9 11.2 15.7 7.7 8.0 7.4 2,693 2,887 3,714

Probable (AI) 15.6 20.9 18.6 7.4 7.8 8.8 3,689 5,250 5,256

Probable (BI) – 16.1 27.4 – 7.2 9.2 – 3,713 8,097


Surface

Probable SRD 6.9 7.7 6.8 0.6 0.6 0.7 142 160 152

Proved TSF 91.9 – – 0.4 – – 1,299 – –

Total surface 98.8 7.7 6.8 0.5 0.6 0.7 1,441 160 152

Grand total 125.3 55.9 68.5 1.9 6.7 7.8 7,823 12,010 17,218M

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KDC East Mineral Reserve classified per mining area

Proved Probable Total Mineral Reserve

Tonnes (kt)

Grade (g/t)

Gold (koz)

Tonnes (kt)

Grade (g/t)

Gold (koz)

Tonnes (kt)

Grade (g/t)

Gold (koz)

Underground

1 Shaft 3.6 4.3 494 0.7 4.1 98 4.3 4.3 592

2 Shaft 1.0 12.3 388 2.5 10.4 828 3.5 10.8 1,216

3 Shaft 2.3 11.8 861 0.5 11.9 197 2.8 11.8 1,058

4 Shaft 3.9 8.0 992 8.6 7.4 2,048 12.5 7.6 3,040

4 Shaft (46 Decline) – – – 1.5 7.3 353 1.5 7.3 353

7 Shaft 0.7 7.8 172 0.7 8.6 193 1.4 8.1 365

8 Shaft 0.5 6.6 114 1.3 5.2 214 1.8 5.7 328

Total underground 12.0 7.8 3,021 15.8 7.7 3,930 27.8 7.8 6,951

Surface

Surface stockpiles – – – 8.0 0.7 185 8.0 0.7 185

TSF 155.3 0.3 1,618 – – – 155.3 0.3 1,618

Grand total (Underground and Surface) 167.3 0.9 4,639 23.8 5.4 4,115 191.1 1.4 8,754

KDC West Mineral Reserve classified per mining area

Proved Probable Total Mineral Reserve

Tonnes (kt)

Grade (g/t)

Gold (koz)

Tonnes (kt)

Grade (g/t)

Gold (koz)

Tonnes (kt)

Grade (g/t)

Gold (koz)

Underground

1 Shaft 1.3 7.3 306 1.5 9.7 472 2.8 8.6 778

1 Shaft Pillar – – – 2.2 7.9 558 2.2 7.9 558

2 Shaft 0.7 11.2 248 1.3 7.3 306 2.0 8.6 554

4 Shaft 2.6 12.3 1,045 1.8 8.9 506 4.4 11.0 1,551

5 Shaft 3.5 5.8 654 7.6 6.9 1,687 11.1 6.6 2,341

6 Shaft 1.1 4.0 139 0.3 4.6 47 1.4 4.1 186

8 Shaft 1.6 5.5 292 0.9 3.9 113 2.5 5.0 405

10 Shaft 0.02 16.0 10 – – – 0.02 16.0 10

Total Underground 10.8 7.7 2,694 15.6 7.4 3,689 26.4 7.5 6,383

Surface

Surface stockpiles – – – 6.9 0.6 142 6.9 0.6 142

TSF 91.9 0.4 1,299 – – – 91.9 0.4 1,299

Grand total (Underground and Surface) 102.7 0.8 3,992 22.5 5.3 3,831 125.2 1.9 7,823

17

Mineral Resources and Mineral Reserves reconciliation year-on-year

Factors that affected Mineral Resource reconciliation:

¨ Decrease due to mined depletion; ¨ Enhancements to the in-house Mineral Resource

classification and an increase in pay limits, has resulted in a reduction in ounces at KDC West of 5 million ounces and at KDC East of 2 million ounces; and

¨ Economic factors (higher pay limit at KDC West).

50

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KDC East – Change in Mineral Resources December 2010 to December 2011

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KDC West – Change in Mineral Resources December 2010 to December 2011

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Factors that affected Mineral Reserve reconciliation:

¨ Depletion since January 2011; ¨ Geological and evaluation model enhancements

coupled with reef grade changes; ¨ Specific exclusions (D5 decline) and changes in dip

pillar layouts; and ¨ Economic factors (higher pay limit at KDC West).

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KDC East – Change in Mineral Reserves December 2010 to December 2011

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KDC West – Change in Mineral Reserves December 2010 to December 2011

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12.00.5

3.7

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Mineral Reserve Sensitivity (KDC East and KDC West – underground only)The following graphs indicate the Mineral Reserve sensitivity at -10%, -5%, Base, +5%, +10% and +25% to the gold price at KDC East and KDC West respectively. The Mineral Reserve sensitivities are not based on detailed depletion schedules and should be considered on a relative and indicative basis only.

KDC West Managed Mineral Reserve Sensitivity

Gol

d (M

oz)

5.76.1

6.4 6.77.0

8.0

(-10%) (-5%) (+5%) (+10%) (+25%)

Gold price (ZAR/kg)

(Base)310,000

8

6

4

2

0

KDC East Managed Mineral Reserve Sensitivity

Gol

d (M

oz)

6.3 6.67.0 7.3 7.6

8.7

(-10%) (-5%) (+5%) (+10%) (+25%)

10

5

0

Gold price (ZAR/kg)

(Base)310,000


10. Regulatory codes

SAMRECThis Technical Statement has been prepared in compliance with the South Africa Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (2007 SAMREC Code).

JSEThis Technical Statement has been prepared in compliance with the Listings Requirements of the JSE Limited, South Africa, specifically Section 12.

Sarbanes-Oxley ActThe Mineral Resources and Mineral Reserves are underpinned by an adequate Mineral Resource management process and protocol to ensure adequate corporate governance in respect of the intent of the Sarbanes-Oxley Act.

EnvironmentalKDC has an environmental management team who are supported by specialists from the South Africa regional office at Libanon. The systems, procedures and training are at international leading practice levels.

11. Competent Persons

Competent Persons

JA du Plessis: Manager: Mine Planning and Resource Management (KDC operation) MSc (Mining Eng), GDE, National Higher Diploma Mine Surveying and Mine Surveyors’ Certificate of Competency. Registered with PLATO as a Professional Mine Surveyor (Registration number PMS 0145), Fellow of the Institute of Mine Surveyors. Mr Du Plessis has over 32 years’ experience in the mining industry (four years at KDC) and is responsible for the overall correctness, standard and compliance of the KDC declaration.

J van Eeden: Chief Geologist (KDC-West operation)MSc (Geology). Registered with SACNASP Reg. No. 400043/09. Mr Van Eeden has over 28 years’ experience in the mining industry and is responsible for Geology and Exploration for KDC-West.

K Sibeko: Chief Geologist (KDC-East operation) BSc (Hons) (Geology). Mr Sibeko has over 18 years’ experience in the mining industry and is responsible for Geology and Exploration for KDC-East.

C Dewey: Chief Evaluator (KDC-East operation)MSc Mining Engineering, GDE, NHD Mine Survey and Mine Surveyor’s Certificate of Competence. Registered with PLATO as a Professional Mine Surveyor (Reg. No. PMS 0234), Fellow of the Institute of Mine Surveyors. Mr Dewey has over 37 years’ experience in the mining industry and is responsible for the Sampling and Evaluation functions for KDC-East.

M Greenhalgh: Chief Evaluator (KDC-West operation) GDE Geostatistics, Mining Engineering and Certificate in Mineral Resource Management. Registered with SAIMM, Reg. No. 704826. Mr Greenhalgh has over 23 years’ experience in the mining industry and is responsible for sampling and evaluation functions at KDC-West.

W de Klerk: Chief Surveyor (KDC operation)ND Mine Survey, Mine Surveyor’s Certificate of Competence and GDE. Registered with PLATO as a Professional Mine Surveyor (Reg. No. PMS 0233). Mr De Klerk has over 29 years’ experience in the mining industry and is responsible for Survey, Reporting and Historical Modifying Factors for KDC.

D Foley: Chief Mine Planner (KDC operation) GDE in Mining Engineering. Registered with SAIMM Reg. No. 703904. Mr Foley has over 32 years’ experience in the mining industry and is responsible for the Mine Planning and Scheduling for KDC.

Internal technical reviews have been conducted by the Competent Persons as listed, who are full-time employees of Gold Fields Limited.

KDC West Shaft ReferenceD West 1 Shaft Masakhane Shaft

D West 2 Shaft Pitseng Shaft

D West 4 Shaft Ya Rona Shaft

D West 5 Shaft Hlanganani Shaft

D West 6 Shaft Bambisanani Shaft

D West 7 Shaft Rethabile Shaft

D West 8 Shaft Khomanane Shaft

D West 9 Shaft Ithembalethu Shaft

D West 10 Shaft Thabelang Shaft

Kloof-Driefontein ComplexA division of GFI Mining South Africa (Pty) Limited

Plan showing mine infrastructure as at 31 December 2011

Reference

Development and stoping on Main Reef (Middelvlei Reef) . . . . . . . . . . . .

Development and stoping on Ventersdorp Contact Reef . . . . . . . . . . . . .

Development and stoping on Kloof Reef . . . . . . . . . . . . . . . . . . . . . . . . . .

Development and stoping on Libanon Reef. . . . . . . . . . . . . . . . . . . . . . . .

Development and stoping on Carbon Leader . . . . . . . . . . . . . . . . . . . . . .

Development off reef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sub-crop of Main Reef (Middelvlei Reef) . . . . . . . . . . . . . . . . . . . . . . . . . .

Sub-crop of Ventersdorp Contact Reef . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sub-crop of Kloof Reef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sub-crop of Libanon Reef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sub-crop of Carbon Leader Reef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Development Ore Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dykes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Faults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shafts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Boreholes No. and Surface Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Stabilising pillars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Longwall stoping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gold Recovery Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prospecting Right Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Datum 1,828.8 metres above mean sea level

KDC East Shaft ReferenceK East Main Shaft Thuthukani Shaft

K East 3 Shaft Hlalanathi Shaft

K East 4 Shaft Ikamva Shaft

K East 7 Shaft Manyano Shaft

K East 8 Shaft Masimthembe Shaft

K East 10 Shaft Celemanzi Shaft

Gauss Conform Projection, Central Meridian Lo 27 East


KDC Mineral Resource and Mineral Reserve Classification

KDC Life of Mine Mineral Resource Classification

EXPLORATIONRESULTS

MINERALRESERVES

MINERALRESOURCES

Reported as in situmineralisation estimates

Consideration of mining, metallurgical, economic, marketing, legal,environmental, social and governmental factors (the ‘modifying factors’)

66.3 Mt @ 11.7 g/t25.0 Moz

—

26.5 Mt @ 7.5 g/t6.4 Moz

15.6 Mt @ 7.4 g/t3.7 Moz

10.9 Mt @ 7.7 g/t2.7 Moz

46.1 Mt @ 10.6 g/t15.7 Moz

20.2 Mt @ 14.3 g/t9.3 Moz

Reported as mineableproduction estimates

Incr

easi

ng le

vel o

f geo

scie

ntifi

c kn

owle

dge

and

confi

denc

e

MEASURED PROVED

PROBABLEINDICATED

INFERRED

KDC WEST UnDERGROUnD

EXPLORATIONRESULTS

MINERALRESERVES

MINERALRESOURCES



94.7 Mt @ 12.6 g/t38.4 Moz

27.8 Mt @ 7.8 g/t7.0 Moz

15.8 Mt @ 7.7 g/t3.9 Moz

12.0 Mt @ 7.8 g/t3.0 Moz

17.5 Mt @ 16.9 g/t9.5 Moz

62.1 Mt @ 10.3 g/t20.5 Moz

15.1 Mt @ 17.3 g/t8.4 Moz


Incr

easi

ng le

vel o

f geo

scie

ntifi

c kn

owle

dge

and

confi

denc

e

MEASURED PROVED

PROBABLEINDICATED

INFERRED

KDC EAST UnDERGROUnD

EXPLORATIONRESULTS

MINERALRESERVES

MINERALRESOURCES



258.4 Mt @ 0.3 g/t2.4 Moz

163.3 Mt @ 0.3 g/t1.8 Moz

8.0 Mt @ 0.7 g/t0.2 Moz

155.3 Mt @ 0.3 g/t1.6 Moz

8.0 Mt @ 0.7 g/t0.2 Moz

250.4 Mt @ 0.3 g/t2.2 Moz


Incr

easi

ng le

vel o

f geo

scie

ntifi

c kn

owle

dge

and

confi

denc

e

MEASURED PROVED

PROBABLEINDICATED

INFERRED

KDC EAST SURFACE

EXPLORATIONRESULTS

MINERALRESERVES

MINERALRESOURCES



128.1 Mt @ 0.4 g/t1.7 Moz

98.8 Mt @ 0.5 g/t1.4 Moz

6.9 Mt @ 0.6 g/t0.1 Moz

91.9 Mt @ 0.4 g/t1.3 Moz

6.9 Mt @ 0.6 g/t0.1 Moz

121.2 Mt @ 0.4 g/t1.5 Moz


Incr

easi

ng le

vel o

f geo

scie

ntifi

c kn

owle

dge

and

confi

denc

e

MEASURED PROVED

PROBABLEINDICATED

INFERRED

KDC WEST SURFACE

LegendMine Boundary

Shafts

Mined out Areas

Carbon Leader Subcrop

VCR Subcrop

Pillars

Mineral ResourcesMeasured Mineral Resources

Indicated Mineral Resources

Inferred Mineral Resources

KDL East: VCR onlyKDC West: CL only

— —


12. Brief history

The history of KDC

1887:Cecil Rhodes and Charles Rudd, as joint Managing Directors, are co-founders of ‘The Gold Fields of South Africa Limited’ in 1887.

1898:Drilling commenced by the Pullinger brothers intersecting VCR and MR at depth within the borders of what became the Venterspost Gold Mine.

1931:Using a magnetometer, Dr Rudolf Krahman discovered the vast gold deposits of the West Wits Line near Carletonville, including the mines known as Kloof and Driefontein Gold Mines.

1934: Shaft sinking commenced at Venterspost using the newly developed cementation process.

1936: Shaft sinking commenced at Libanon.

1939:Crushing of ore began and first gold from the West Wits goldfield was poured at the Venterspost Gold Mine.

1945:Exploration activities between 1933 and 1939 culminate in the registration of West Driefontein Mining Company on March 7, 1945. Sinking of the No 1 and 2 shafts commences (now the No D11 and D12 shafts).

1952: West Driefontein starts milling.

1968: Work commenced on Kloof’s Main shaft system in 1964 and the Kloof Gold Mine official opened in 1968.

1972:East Driefontein starts production in 1972, with an expected life of 52 years, and is immediately among the lowest cost producers in South Africa.

1979: West Driefontein succeeds Crown Mines as the largest gold producer ever.

1981:On July 1, 1981 East Driefontein Gold Mining Company Limited changes its name to Driefontein Consolidated Limited and West Driefontein becomes a wholly owned subsidiary of Driefontein Consolidated Limited but still manages its own lease area.

1987: Leeudoorn Gold Mine formed and shaft sinking commenced.

1999:

In September 1999 West and East Driefontein are formally amalgamated, pooling their resources to form one mine, Driefontein Gold Mine.

Gold Fields wins control of the Driefontein Gold Mine by buying AngloGold Ashanti’s 21.5% shareholding. The deal makes Gold Fields the world’s second largest gold producer.

2000:Formation of the consolidated Kloof Gold Mine with the amalgamation of the Venterspost, Libanon, Leeudoorn and Kloof Gold Mines.

2005: On 30 August 2005, Driefontein officially pours the 100 millionth ounce of gold after some 53 years of production and the Kloof Gold Mine’s production reached a cumulative 70 million ounces of gold after 66 years of production.

2007: Driefontein and Kloof successfully converts their old order mining right to new order mining rights.

2009: TSF uranium models completed and included in Mineral Resource Statements of Driefontein and Kloof.

2010: Kloof and Driefontein management were combined to create the current Kloof-Driefontein Complex (KDC).

2011: Python plant commissioned during 2011.

23

Post Incumbent Qualifications Years Key responsibilities

Senior Vice President and Head of Operations

JJ Barnard NHD Metalliferous Mining and Mine Manager’s Certificate

27 Overall strategic direction, leadership and management

Senior Manager Operations KDC BU 1

R Chaplin BSc Mining Eng (Hons) Mine Manager’s Certificate

21 Full operational management


T Uys Mine Manager’s Certificate, Mine Overseer’s Certificate



K de Lange NHD, M Eng. Mine Manager's Certificate



O O’Brien Mine Manager’s Certificate 27 Full operational management


K Stead NHD Metalliferous Mining and Mine Managers Certificate


Metallurgy Manager KDC BU 6

D Bester ND Extractive Metallurgy, BTech Extractive Metallurgy

15 Metallurgical management

Mineral Resources Manager KDC

J du Plessis MSc (Mining Eng), GDE Mining Eng. NHD Mine Surveying, MSCC

32 Mine Planning, Mineral Resources and Mineral Reserves and compilation of CPR

Senior Manager Financial KDC

H Engelbrecht Nat Diploma in Cost Accounting 30 Financial Reporting, Compliance

Human Resource Manager KDC

M Lancaster B Proc (Hons) and LLB 27 Human resources management

Senior Engineering Manager KDC West

L Kotzé B Eng (Mech) and GCC for Mines and Works (Mech)

27 Engineering, logistics, infrastructure and management.

Senior Engineering Manager KDC East

B Potgieter National Technical Diploma. Electrical and Mechanical. GCC Electrical and Mechanical

33 Engineering, logistics, infrastructure and management.

13. Key technical staff

KD

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This Technical Short Form Report (“the Report”) contains information as at 31 December 2011 (“the Effective Date of this Report”). The statements and information set out in this Report speak only as of the Effective Date of this Report. Shareholders and other interested and affected parties are therefore urged to review all public disclosures made by Gold Fields after the Effective Date of this Report, as some of the information contained in the Report may have changed or have been updated. Gold Fields does not undertake any obligation to update publicly or release any revisions to statements and information set out in this Report to reflect events or circumstances after the Effective Date of this Report or to reflect the occurrence of unanticipated events, unless obliged to do so pursuant to law or regulation. In such event, Gold Fields does not undertake to refer back to any information contained in this Report.


“If we cannot mine safely, we will not mine”

Gold Fields Safety Value

Registered Office South Africa:150 Helen RoadSandownSandton, 2196 JohannesburgGautengPrivate Bag X30500Houghton, 2041 South Africa

Website: http://www.goldfields.co.za Telephone: +27 (0) 11 562 9700Facsimile: +27 (0) 11 562 9838

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