Resources and Reserves

The following tables detail the Mineral Resources that have been estimated for 2007:

Total Opencast Resources

Notes – All
Mineral Resources are quoted as inclusive of Mineral Reserves
All Mineral Resources are quoted as opencast Mineral Resources
1kg = 32.15076 oz. troy
All figures are in Metric Tons
10% geological loss applied
Effective Date – June 2007

WRMO – Black Reef
Resource Cut-Off: 1g/t cut-off was used to delineate the resource

Total Underground Resources

Notes – All
Mineral Resources are quoted as inclusive of Mineral Reserves
All Mineral Resources are quoted as underground Mineral Resources
1kg = 32.15076 oz. troy
All figures are in Metric Tons

WRMO – MVR/VCR
10% geological loss applied
Minimum Stope width is 90cm
Effective Date: June 2007

ERMO
In-situ figures only
Includes all blocks above 2g/t, including pillars and structural pillars
Excludes all blocks that have had their availability classified as “abandoned” and “underwater”
No other restrictions have been imposed on the resources
All shafts resources have been shown, i.e. all ground within the mineral lease area
Effective Date: 31 March 2007

Orkney
All Mineral Resources quoted at a cut-off grade of 250cmg/t
Effective Date: June 2006

Total Mineral Resources

Notes – As above

The following tables detail the Mineral Reserves for all the operations:

Total Opencast Mineral Reserves

Notes – All
Quoted as fully diluted delivered to mill estimates (Grades divided by 90% to show Head Grades)
Dilution factors applied
Prices used: ZAR131,318/kg
The effective date is: June 2007
1kg = 32.15076 oz. troy

Black Reef
44% of measured and indicated resources were converted into mineral reserves at Middelvlei Mine
The maximum mining depth used in optimiser model: Black reef: 32m
Average stripping ratio (Waste:ore): Black reef: 20:1
The LOM plan was scheduled monthly to 2011

WRMO – MVR/VCR
The maximum mining depth used in optimiser model: MVR: 150m
Average stripping ratio (Waste:ore) 25:1

Total Underground Mineral Reserves

Notes – All
Quoted as fully diluted delivered to mill estimates
All figures are in Metric Tons
An exchange rate of ZAR/USDR6.53 was used for South Africa giving gold prices of ZAR105 000/kg
1kg = 32.15076 oz. troy

ERMO
Unpay blocks not included in mineral reserves
The LOM plan was scheduled monthly to 2019
Only mineral resources from the measured and indicated categories in the LOM plan have been converted to mineral reserves and exclude:

I. Planning from inferred resources
II. Planned unpay
III. Not in Resource (“NIR”) blocks
IV. Resource not Classified (“RNC”) blocks
V. Overplanning within resource blocks

Effective Date: 31 March 2007

Orkney
Effective Date: June 2006

Total Mineral Reserves

Notes – As above

Minxcon used the Reuters consensus forecasts to produce an in-house price forecast for the US$/oz gold price and forecast for the South African Rand against the US Dollar. South African inflation, although not seen as a major influencing factor compared to the early eighties, is starting to become a concern. Product inflation and salary increase is currently recorded above CPI; however, Minxcon kept cost increases to the same level as CPI, therefore expecting the Rand to adjust on the back of Purchasing Power Parity in the longer run. Inflation figures were sourced from ABSA Bank.

Economic Parameters used in DCF