Gold Fields closes Western Areas hedge book


Company Press Release
Thursday, January 25, 2007

JOHANNESBURG -- Gold Fields Limited is pleased to announce that the Western Areas hedge book has been terminated.

The hedge book was terminated at an average spot gold price of US$622.14/oz and a total cost of US$528 million.

Gold Fields inherited the Western Areas hedge book when it took control of Western Areas in December 2006. The hedge book had a maturity profile from December 2006 to December 2014 and consisted of options, with a delta of 1,005,000 gold ounces, and deferred premiums.

At the end of the last quarter, on 29 December 2006, the marked-to-market value of the hedge book was US$383 million, with a deferred premium of US$ 157 million, for a total of US$540 million. This compares to the total cost of termination of US$528 referred to above.

Ian Cockerill, chief executive officer of Gold Fields, said:

"We terminated the Western Areas hedge book because we believe in gold. The hedge book was significantly under water and was a crippling liability to the South Deep mine. Now we can bring the asset to account in a transparent manner.

"Gold Fields is of the view that the price of gold remains firmly in a long-term upward trend and, with that outlook, it does not make any sense whatsoever to be hedged.

"This also ensures that Gold Fields remains fully transparent to investors, and that its balance sheet remains simple to understand."

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