Capital Expenditure Crucial in the South African Gold Mining Industry, Says Frost & Sullivan

CAPE TOWN, South Africa, June 14, 2010 - Over the last decade, capital expenditure (CAPEX) in South Africa's gold
mining industry rose sharply, as mining companies - buoyed by rising gold
prices and strong balance sheets - have invested in developing mineral
reserves in their current mining operations, and upgrading mining
infrastructure and equipment purchases. This has been important in sustaining
the existing mining operations, delivering growth and securing the future of
South Africa's gold mining industry.

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"CAPEX in the industry reached a record peak of R11.54 billion in 2008,"
notes Frost & Sullivan Mining Analyst Wonder Nyanjowa. "However, the growth
trend started to reverse in 2009. This will continue into 2011 as most miners
have suspended expansion projects and closed marginal mines to preserve
cash."

New analysis from Frost & Sullivan (www.frost.com), Expenditure
Analysis of the South African Gold Mining Industry, finds that CAPEX in South
Africa's gold mining industry will start growing again once credit becomes
available to mining companies and suspended expansion projects are
resuscitated. The firm South African Rand is however likely to affect mining
operations, as companies are receiving less revenue in Rand terms per each
unit of the US dollar received.

If you are interested in more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"CAPEX is likely to remain low during 2010 and 2011, due to the strength
of the Rand and declining gold production," Nyanjowa notes. "This will reduce
the profitability of the industry and depress miners' ability to invest in
infrastructure upgrades and equipment purchases."

South Africa's near-surface gold deposits have been exhausted, leaving
behind only deep underground deposits. While it is still feasible to extract
this ore, given the technological breakthroughs and level of the gold price,
no new gold mines have been opened in South Africa in the last forty years.

"CAPEX in the South African gold mining industry is therefore expected to
remain focused on extending the life of existing mining operations," Nyanjowa
states. "The significant upside potential for the gold price in the short and
medium terms will bolster the capability of mining companies to expand the
size and scope of their current mines."

Expenditure Analysis of the South African Gold Mining Industry is part of
the Chemicals & Materials Growth Partnership Services programme, which also
includes research in the following markets: South Africa's Gold Mining
Industry, South Africa's Coal Mining Industry, South Africa's Platinum Group
Metals Mining Industry, and Diamond Mining Industry in Central and Southern
Africa. All research services included in subscriptions provide detailed
market opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

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         Expenditure Analysis of the South African Gold Mining Industry
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    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

    www.frost.com

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com