SIBANYE GOLD LIMITED - Sibanye Gold Enters Into Section 189 Discussions Regarding Beatrix West Section

Sibanye Gold Enters Into Section 189 Discussions Regarding Beatrix West Section

Sibanye Gold Limited
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye Gold” or “the Company”)


Sibanye Gold Enters Into Section 189 Discussions Regarding
Beatrix West Section

Westonaria, 02 April 2013: Further to previous announcements made
relating to the fire at the Beatrix West Section, Sibanye Gold
wishes to advise shareholders that a consultation process in
terms of section 189A of the Labour Relations Act, 66 of 1995
("LRA") will be entered into with organised labour, the
Department of Mineral Resources and other relevant stakeholders
in order to consider the options available for the operation.

The Beatrix West Section (previously Oryx Mine) cost R2.6bn to
develop, but has always been marginal and to date, has not been
able to recover the initial capital spent. A number of
initiatives to arrest the production decline and rising costs
were implemented by Gold Fields Limited and the Beatrix West
Section was kept operational in the hope that the situation would
improve.

On 19 February 2013 an underground fire broke out in the Beatrix
West Section, which has resulted in the Beatrix West Section
losing 61kg of gold per month, equating to a loss of
approximately R28 million in revenue per month. The location of
the underground fire has also prevented critical ore reserve
development from taking place thus impacting on the
sustainability of the Beatrix West Section, and hence the long
term future of the operation. The current indications are that
the area will be inaccessible until at least the end of June
2014.

Based on a review of the Beatrix West Section it is clear that
this situation needs to be addressed and corrective measures will
be considered in consultation with stakeholders.

Contact

James Wellsted
Head of Corporate Affairs
Sibanye Gold Limited
+27 83 453 4014
james.wellsted@sibanyegold.co.za

Sponsor:
J.P. Morgan Equities South Africa (Pty) Ltd

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