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20-F 1 main.htm Page 1

As filed with the Securities and Exchange Commission on October 29, 2010

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 20-F

REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE
ACT OF 1934

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934

SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
1934

For the fiscal year ended June 30, 2010

Commission file number 0-28800

DRDGOLD LIMITED

(Exact name of Registrant as specified in its charter and translation of Registrant's name into English)

REPUBLIC OF SOUTH AFRICA

(Jurisdiction of incorporation or organization)

50 CONSTANTIA BOULEVARD, CONSTANTIA KLOOF EXT 28, ROODEPOORT, 1709, SOUTH AFRICA

(Address of principal executive offices)

Securities registered or to be registered pursuant to Section 12(b) of the Act

Title of each class:

Name of each exchange on which registered:

Ordinary shares (traded in the form of American Depositary

Shares, each American Depositary Share representing ten

underlying ordinary shares.)

The NASDAQ Stock Market LLC

Securities registered or to be registered pursuant to Section 12(g) of the Act

None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act

None

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the

period covered by the annual report.

As of June 30, 2010 the Registrant had outstanding 384,884,379 ordinary shares, of no par value.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934. Yes

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any,

every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232-405 of this chapter)
during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.
Large accelerated filer

Accelerated filer

Non-accelerated filer

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this

filing. U.S. GAAP International Financial Reporting Standards as issued by the IASB Other

Indicate by check mark which financial statement item the registrant has elected to follow. Item 17

Item 18

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes

Contact details: Mr. T.J. Gwebu – Executive Officer: Legal, Compliance and Company Secretary

DRDGOLD Limited, Quadrum Office Park, First Floor, Building 1, 50 Constantia Boulevard, Constantia Kloof Ext. 28, Roodepoort,

1709, South Africa; Telephone: +27 11 470 2600

TABLE OF CONTENTS

Page

PART I

ITEM 1.

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS ...........................................................................

ITEM 2.

OFFER STATISTICS AND EXPECTED TIMETABLE ........................................................................................................

ITEM 3.

KEY INFORMATION.......................................................................................................................................................

3A.

Selected Financial Data ...............................................................................................................................................

3B.

Capitalization

And Indebtedness.................................................................................................................................

3C.

Reasons For The Offer And Use Of Proceeds ............................................................................................................

3D.

Risk

Factors .................................................................................................................................................................

ITEM 4.

INFORMATION ON THE COMPANY................................................................................................................................

4A.

History And Development Of The Company .................................................................................................................

4B.

Business Overview ......................................................................................................................................................

4C.

Organizational Structure................................................................................................................................................

4D.

Property, Plants And Equipment ...................................................................................................................................

ITEM 4A.

UNRESOLVED STAFF COMMENTS...............................................................................................................................

ITEM 5.

OPERATING AND FINANCIAL REVIEW AND PROSPECTS ...........................................................................................

5A.

Operating Results ........................................................................................................................................................

5B.

Liquidity And Capital Resources ................................................................................................................................

5C.

Research

And

Development, Patents And Licenses Etc.............................................................................................

5D.

Trend

Information........................................................................................................................................................

5E.

Off-Balance Sheet Arrangements................................................................................................................................

5F.

Tabular Disclosure Of Contractual Obligations.............................................................................................................

5G.

Safe

Harbor ..................................................................................................................................................................

ITEM 6.

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES..............................................................................................

6A.

Directors And Senior Management.............................................................................................................................

6B.

Compensation ..............................................................................................................................................................

6C.

Board

Practices ............................................................................................................................................................

6D.

Employees....................................................................................................................................................................

6E. Share Ownership..........................................................................................................................................................

ITEM 7.

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS ............................................................................

7A.

Major

Shareholders......................................................................................................................................................

7B.

Related Party Transactions ..........................................................................................................................................

7C.

Interests Of Experts And Counsel ...............................................................................................................................

ITEM 8.

FINANCIAL INFORMATION ............................................................................................................................................

8A.

Consolidated Statements And Other Financial Information...........................................................................................

8B.

Significant Changes .....................................................................................................................................................

ITEM 9.

THE OFFER AND LISTING ............................................................................................................................................

9A.

Offer And Listing Details .............................................................................................................................................

9B.

Plan Of Distribution.......................................................................................................................................................

9C.

Markets.........................................................................................................................................................................

9D.

Selling

Shareholders ....................................................................................................................................................

9E. Dilution .........................................................................................................................................................................

9F.

Expenses Of The Issue.................................................................................................................................................

ITEM 10.

ADDITIONAL INFORMATION.........................................................................................................................................

10A.

Capital................................................................................................................................................................

10B.

Memorandum And Articles Of Association ...............................................................................................................

10C.

Material Contracts........................................................................................................................................................

100

10D.

Exchange

Controls.......................................................................................................................................................

101

10E.

Taxation .......................................................................................................................................................................

103

10F.

Dividends And Paying Agents ....................................................................................................................................

107

10G.

Statement

Experts ..................................................................................................................................................

107

10H.

Documents On Display................................................................................................................................................

107

10I.

Subsidiary

Information ................................................................................................................................................

108

ITEM 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK................................................................

108

ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES .............................................................................

109

12A.

Debt Securities.............................................................................................................................................................

109

12B.

Warrants and Rights ....................................................................................................................................................

109

12C.

Other Securities............................................................................................................................................................

109

12D

American Depositary Shares .......................................................................................................................................

109

TABLE OF CONTENTS

PART II

ITEM 13.

DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES ..................................................................................

116

ITEM 14.

MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS ..........................

116

ITEM 15.

CONTROLS AND PROCEDURES................................................................................................................................

116

ITEM 16A.

AUDIT COMMITTEE FINANCIAL EXPERT ...................................................................................................................

117

ITEM 16B.

CODE OF ETHICS ......................................................................................................................................................

117

ITEM 16C.

PRINCIPAL ACCOUNTANT FEES AND SERVICES......................................................................................................

118

ITEM 16D.

EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES .............................................................

118

ITEM 16E.

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS........................................

118

ITEM 16F

CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT ........................................................................................

118

ITEM 16G.

CORPORATE GOVERNANCE ...................................................................................................................................

119

PART III

ITEM 17.

FINANCIAL STATEMENTS .........................................................................................................................................

120

ITEM 18.

FINANCIAL STATEMENTS .........................................................................................................................................

F-pages

ITEM 19.

EXHIBITS ...................................................................................................................................................................

121

Preparation of Financial Information

We are a South African company and currently all of our operations, as measured in production ounces, are located there.

Accordingly, our books of account are maintained in South African Rand. Our financial statements included in our corporate filings
in South Africa were prepared in accordance with International Financial Reporting Standards (IFRS), as approved by the
International Accounting Standards Board (IASB) for the financial years ended June 30, 2008, 2009 and 2010. All references to
“dollars” or “$” herein are to United States Dollars, references to “rand” or “R” are to South African Rands and references to “A$”
are to Australian Dollars.

Prior to fiscal year ended June 30, 2008, our annual financial statements (translated into dollars) were prepared and filed

with the U.S. Securities and Exchange Commission (“SEC”) in accordance with generally accepted accounting principles in the
United States (“U.S. GAAP”). On December 21, 2007, the SEC adopted rules allowing foreign private issuers that file Annual
Reports on Form 20-F to file financial statements with the SEC in accordance with IFRS as issued by the IASB without
reconciliation to U.S. GAAP. As per these new rules, we changed our basis of presentation and included in this Annual Report our
consolidated financial statements prepared in accordance with IFRS as issued by the IASB. All financial information, except as
otherwise noted, are stated in accordance with IFRS as issued by the IASB.

We present our financial information in rand, which is our presentation currency. Solely for your convenience, this

Form 20-F contains translations of certain rand amounts into dollars at specified rates. These rand amounts do not represent actual
dollar amounts, nor could they necessarily have been converted into dollars at the rates indicated. Unless otherwise indicated, rand
amounts have been translated into dollars at the rate of R6.98 per $1.00, which was the noon buying rate in New York City on
September 30, 2010.

In this Annual Report on Form 20-F, we present the financial items “cash costs per kilogram” and “total costs per

kilogram” which have been determined using industry guidelines promulgated by the Gold Institute and are not IFRS financial
measures. An investor should not consider these items in isolation or as alternatives to cash and cash equivalents, operating costs,
profit/(loss) attributable to equity owners of the parent, profit/(loss) before taxation and other items or any other measure of
financial performance presented in accordance with IFRS or as an indicator of our performance. While the Gold Institute has
provided definitions for the calculation of cash costs, the calculation of cash costs per kilogram, total costs and total costs per
kilogram may vary significantly among gold mining companies, and these definitions by themselves do not necessarily provide a
basis for comparison with other gold mining companies. See “Glossary of Terms and Explanations” and Item 5A.: “Operating and
Financial Review and Prospects - Cash costs and total costs per kilogram- Reconciliation of cash costs per kilogram, total costs
and total costs per kilogram.”

DRDGOLD Limited

When used in this Annual Report, the term the “Company” refers to DRDGOLD Limited and the terms “we,” “our,” “us” or

“the Group” refer to the Company and its subsidiaries, associates and joint ventures, as appropriate in the context.

Special Note Regarding Forward-Looking Statements

This Annual Report contains certain “forward-looking” statements within the meaning of Section 21E of the Exchange Act,

regarding future events or other future financial performance and information relating to us that are based on the beliefs of our
management, as well as assumptions made by and information currently available to our management. Some of these forward-
looking statements include phrases such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “should,” or
“will continue,” or similar expressions or the negatives thereof or other variations on these expressions, or similar terminology, or
discussions of strategy, plans or intentions. These statements also include descriptions in connection with, among other things:

• estimates regarding future production and throughput capacity;

• our anticipated commitments;

• our ability to fund our operations in the next 12 months; and

• estimated production costs, cash costs per ounce and total costs per ounce.

Such statements reflect our current views with respect to future events and are subject to risks, uncertainties and

assumptions. Many factors could cause our actual results, performance or achievements to be materially different from any future
results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others:

• adverse changes or uncertainties in general economic conditions in the markets we serve;

• regulatory developments adverse to us or difficulties in maintaining necessary licenses or other governmental approvals;

• changes in our competitive position;

• changes in business strategy;

• any major disruption in production at our key facilities; or

• adverse changes in foreign exchange rates and various other factors.

For a discussion of such risks, see Item 3D.: “Risk Factors.” The risk factors described in Item 3D. could affect our future

results, causing these results to differ materially from these expressed in any forward-looking statements. These factors are not
necessarily all of the important factors that could cause our results to differ materially from those expressed in any forward-looking
statements. Other unknown or unpredictable factors could also have material adverse effects on future results.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date

hereof. We do not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect
events or circumstances after the date of this Annual Report or to reflect the occurrence of unanticipated events.

Imperial units of measure and metric equivalents

Units stated in this Annual Report are measured in Imperial and Metric.

Metric Imperial Imperial Metric

1 metric tonne

1.10229 short tons

1 short ton

0.9072 metric tonnes

1 kilogram

2.20458 pounds

1 pound

0.4536 kilograms

1 gram

0.03215 troy ounces

1 troy ounce

31.10353 grams

1 kilometer

0.62150 miles

1 mile

1.609 kilometres

1 meter

3.28084 feet

1 foot

0.3048 metres

1 liter

0.26420 gallons

1 gallon

3.785 liters

1 hectare

2.47097 acres

1 acre

0.4047 hectares

1 centimeter

0.39370 inches

1 inch

2.54 centimetres

1 gram/tonne

0.0292 ounces/ton

1 ounce/ton

34.28 grams/tonnes

0 degree Celsius

32 degrees Fahrenheit

0 degrees Fahrenheit

- 18 degrees Celsius

Glossary of Terms and Explanations

Adularia ............................................ A transparent or translucent variety of common feldspar.
Archaean........................................... A period of the geological time scale between 2.5 and 4.6 billion years ago, the earliest part of the

Precambrian.

Assaying ...........................................    The chemical testing process of rock samples to determine mineral content.
Auriferous.........................................     Containing gold.
Bonanza ...........................................     Unexpected high-grade occurrences.
Care and maintenance ......................    Cease active mining activity at a shaft, but continue to incur costs to ensure that the Ore Reserves

are open, serviceable and legally compliant.

Cash costs per kilogram................... Cash costs are operating costs incurred directly in the production of gold and include labor costs,

contractor and other related costs, inventory costs and electricity costs. Cash costs per kilogram
are calculated by dividing cash costs by kilograms of gold produced. Cash costs per kilogram
have been calculated on a consistent basis for all periods presented. This is a non-IFRS financial
measure and should not be considered a substitute measure of costs and expenses reported by us
in accordance with IFRS.

Caving............................................... A type of mining in which the ore is blasted and drawn in a manner causing the overhead rock to

cave in.

Conglomerate ................................... A coarse-grained sedimentary rock consisting of rounded or sub-rounded pebbles.
Cut-and-fill ....................................... A mining method in which a slice of rock is removed after blasting and replaced with a slice of

fill material to provide workers with a platform to mine the next slice of rock.

Cut-off grade .................................... The minimum in-situ grade of ore blocks for which the cash costs per ounce, excluding overhead

costs, are equal to a projected gold price per ounce.

Depletion .......................................... The decrease in the quantity of ore in a deposit or property resulting from extraction or

production.

Dilution............................................. Broken rock entering the ore flow at zero or minimal grade and therefore diluting the gold

content per ton.

Diorite............................................... An igneous rock formed by the solidification of molten material.
Doré .................................................. Unrefined gold and silver bullion bars consisting of approximately 90% precious metals which

will be further refined to almost pure metal.

Electrowinning ................................. The process of recovering metal from ore by means of electro-chemical processes.
Grade ................................................ The amount of gold contained within auriferous material generally expressed in ounces per ton or

grams per ton of ore.

g/t ...................................................... Grams per ton.
Horizon ............................................. A plane indicating a particular position in a stratigraphic sequence. This may be a theoretical

surface with no thickness or a distinctive bed.

Igneous rock ..................................... Rock which is magmatic in origin.
Intrusive ............................................ Rock which while molten, penetrated into or between other rocks, but solidified before reaching

the surface.

Life of mine ......................................      Projected life of a mining operation based on the Proven and Probable Ore Reserves.
Metallurgical plant ...........................       A processing plant (mill) erected to treat ore and extract the contained gold.
Mine call factor.................................      This is the gold content recovered expressed as a percentage of the gold content called.
Mill ...................................................      Material passed through the metallurgical plant for processing.
Mt......................................................     Million tons.
Opening up .......................................     The potential that previously abandoned shafts have to be reopened and mined.
Ore ....................................................     A mixture of valuable and worthless minerals from which the extraction of at least one mineral is

technically and economically viable.

Ore Reserves..................................... Attributable total Ore Reserves of subsidiaries.
Pay-limit ........................................... The minimum in-situ grade of ore blocks for which cash costs, including all overhead costs, are

equal to a projected gold price per ounce.

Proven Ore Reserves ........................

Reserves for which (a) the quantity is computed from dimensions revealed in outcrops, trenches,
workings or drill holes; grade and/or quality are computed from the results of detailed sampling
and (b) the sites for inspection, sampling and measurement are spaced so closely and the geologic
character is so well defined that size, shape, depth, and mineral content of Ore Reserves are
well-established.

Probable Ore Reserves ..................... Reserves for which quantity and grade and/or quality are computed from information similar to

that used for Proven Ore Reserves, but the sites for inspection, sampling, and measurement are
farther apart or are otherwise less adequately spaced. The degree of assurance, although lower
than that for Proven Ore Reserves, is high enough to assume continuity between points of
observation.

oz/t .................................................... Ounces per ton.
Reef................................................... A gold-bearing sedimentary horizon, normally a conglomerate band that may contain economic

levels of gold.

Refining ............................................      The final purification process of a metal or mineral.
Rehabilitation ...................................      The process of restoring mined land to a condition approximating its original state.
Reserves............................................    That part of a mineral deposit which could be economically and legally extracted or produced at

the time of the reserve determination.

Sedimentary...................................... Formed by the deposition of solid fragmental material that originated from weathering of rocks

and was transported from a source to a site of deposition.

Shaft.................................................. An opening cut downwards for transporting personnel, equipment, supplies, ore and waste. A

shaft is also used for ventilation and as an auxiliary exit. It is equipped with a hoist system that
lowers and raises a cage in the shaft, transporting equipment, personnel, materials, ore and waste.
A shaft generally has more than one compartment.

Shrinkage stoping............................. A mining method in which a small percentage of the broken ore is drawn as mining progresses to

make room for subsequent mining activities. Most of the blasted ore is left to accumulate in the
stope and is drawn after the stope is completely mined.

Slimes ............................................... The fraction of tailings discharged from a processing plant after the valuable minerals have been

recovered.

Sloughing..........................................      The localized failure of part of the slimes dam wall caused by a build up of water within the dam.
Stope .................................................     Underground production working area on the Ore Horizon.
Sub-level stoping..............................      A method of mining in which the ore is blasted, on multiple levels in one stope, and drawn off as

it is blasted, leaving an open stope.

Tailings ............................................. Finely ground rock from which valuable minerals have been extracted by milling, or any waste

rock, slimes or residue derived from any mining operation or processing of any minerals.

Tailings dam ..................................... A dam created from waste material of processed ore after the economically recoverable gold has

been extracted.

Tonnage/Tonne................................. Quantities where the metric tonne is an appropriate unit of measure. Typically used to measure

reserves of gold-bearing material in-situ or quantities of ore and waste material mined,
transported or milled.

Total costs per kilogram................... Total costs per kilogram represent the full amount of costs incurred and represents the difference

between revenues from gold bullion and profits or losses before taxation. Total costs per
kilogram are calculated by dividing total costs by kilograms of gold produced. Total costs per
kilogram have been calculated on a consistent basis for all periods presented. This is a non-IFRS
financial measure and should not be considered a substitute measure of costs and expenses
reported by us in accordance with IFRS.

Tpm................................................... Tonne per month.
Up-dip mining .................................. A mining method in which the drilled and blasted ore gravitates into slushers or gullies leaving

an open space. This is normally used in narrow stopes.

Waste rock ........................................ Non-auriferous rock.
Yield ................................................. The amount of recovered gold from production generally expressed in ounces or grams per tonne

of ore.

PART I

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3. KEY INFORMATION

3A. SELECTED FINANCIAL DATA

The following selected consolidated financial data as at June 30, 2010, 2009 and 2008 and for the years ended June 30,

2010, 2009 and 2008 are derived from our consolidated financial statements set forth elsewhere in this Annual Report, which have
been prepared in accordance with IFRS, as issued by the IASB. These consolidated financial statements have been audited by
KPMG Inc. as at June 30, 2010, 2009 and 2008 and for the years ended June 30, 2010, 2009 and 2008. Prior to fiscal year ended June
30, 2008, our annual financial statements (translated into dollars) were prepared and filed with the SEC in accordance with U.S.
GAAP. On December 21, 2007, the SEC, adopted rules allowing foreign private issuers that file Annual Reports on Form 20-F to file
with the SEC financial statements in accordance with IFRS as issued by the IASB without reconciliation to U.S. GAAP. As per these
new rules, we changed our basis of presentation and have included in this Annual Report our consolidated financial statements
prepared in accordance with IFRS as issued by the IASB. The selected consolidated financial data as at June 30, 2006 and 2007, for
the years ended June 30, 2006 and 2007 are derived from audited consolidated financial statements not appearing in this Annual
Report which have been prepared in accordance with IFRS as issued by the IASB. The selected consolidated financial data set forth
below should be read in conjunction with Item 5.: “Operating and Financial Review and Prospects” and with the consolidated
financial statements and the notes thereto and the other financial information appearing elsewhere in this Annual Report.

Selected Consolidated Financial Data

(in thousands, except share, per share and ounce data)

Year ended June 30,

2010

2009

2008

2007

2006

$’000

R’000

R’000 R’000

R’000

Profit or loss Data

Revenue ................................................................

285,175

1,990,522

1,910,738

1,933,147

2,209,705

1,599,994

Results from operating activities .........................

5,084

35,485

(82,008)

(15,175)

(1,173,375)

(105,110)

Results from operating activities from

continuing operations........................................

5,084

35,485

(82,008)

102,194 22,541

7,641

Profit/(loss) for the year attributable to equity

owners of the parent ..........................................

29,773

207,815

129,124

996,041 (924,466)

(110,089)

Profit/(loss) for the year attributable to equity

owners of the parent from continuing
operations ..........................................................

29,773

207,815

129,124

128,558

(2,674)

(71,478)

Per Share Data

Basic earnings/(loss) per share (cents).................

265

(271)

(35)

Basic earnings/(loss) per share - continuing

operations (cents) .............................................

34 (1)

(23)

Diluted earnings/(loss) per share (cents) .............

265

(271)

(35)

Diluted earnings/(loss) per share - continuing

operations (cents) .............................................

34 (1)

(23)

Dividends proposed per share (ZAR cents).........

Dividends proposed per share (USD cents).........

Average exchange rate (USD1:ZAR)..................

7.6117

9.0484

7.3123

7.2188

6.4284

Number of shares issued as at June 30 .......... 384,884,379

384,884,379

378,001,303

376,571,588

370,341,981

320,035,078

Statement of financial position Data

Total assets ...........................................................

369,669

2,580,292

2,625,772

2,262,495

1,947,163

3,010,074

Equity (Net assets) ...............................................

236,384

1,649,961

1,583,979

1,305,461

143,456

1,015,272

Ordinary share capital ..........................................

592,166

4,133,318

4,104,480

4,098,206

4,069,096

3,761,368

Month

2010

2010 2010

2010

September

August

July

June May

April

Exchange Rate Data

Average (USD1:ZAR) .........................................

7.1685

7.3168

7.5818

7.6682

7.6516

7.3566

High (USD1:ZAR)...............................................

7.4344

7.4223

7.7809

7.8505

8.0821

7.5233

Low (USD1:ZAR)................................................

6.9190

7.1515

7.2601

7.3899

7.2897

7.1731

Translations into Dollars in this table are for convenience only and are computed at the noon buying rate in New York City at September 30,

2010 of R6.98 per $1.00. You should not view such translations as a representation that such amounts represent actual Dollar amounts.

Comparatives have been restated for the reclassification of the Australasian operations as discontinued operations. The discontinued operations

relate to the Porgera Joint Venture (disposed on August 17, 2007), Emperor (disposed on October 22, 2007) and Netgold (disposed on March 13,
2008).

3B. CAPITALIZATION AND INDEBTEDNESS

Not applicable.

3C. REASONS FOR THE OFFER AND USE OF PROCEEDS

Not applicable.

3D. RISK FACTORS

In conducting our business, we face many risks that may interfere with our business objectives. Some of these risks relate to

our operational processes, while others relate to our business environment. It is important to understand the nature of these risks and
the impact they may have on our business, financial condition and operating results.

Some of the most relevant risks are summarized below and have been organized into the following categories:

• Risks related to our business and operations;

• Risks related to the gold mining industry;

• Risks related to doing business in South Africa; and

• Risks related to ownership in our ordinary shares or American Depositary Shares, or ADSs.

Risks related to our business and operations

Changes in the market price for gold, which in the past has fluctuated widely, and exchange rate fluctuations affect the

profitability of our operations and the cash flows generated by those operations.

As the majority of our production costs are in rands, while gold is generally sold in dollars, our financial condition has

been and could be materially harmed in the future by an appreciation in the value of the rand. Due to the marginal nature of our
underground mine any sustained decline in the market price of gold, below the cost of production, could result in the closure of
our underground mine which would result in significant costs and expenditure, for example, incurring retrenchment costs earlier
than expected, that would negatively and adversely affect our business, operating results and financial condition.

We do not enter into forward contracts to reduce our exposure to market fluctuations in the dollar gold price or the exchange

rate movements of the rand. We sell our gold and trade our foreign currency at the spot price in the market on the date of trade. If the
dollar gold price should fall and the regional functional currencies should strengthen against the dollar, resulting in revenue below our
cost of production and remain at such levels for any sustained period, we may experience losses and may be forced to curtail or
suspend some or all of our operations. In addition, we might not be able to recover any losses we may incur during that period or
maintain adequate gold reserves for future exploitation.

Exchange rates are influenced by global economic trends which are beyond our control. In fiscal 2010 and fiscal 2009 the

rand strengthened against the dollar by 2.9% and 1.0% respectively (based on exchange rates at June 30 of each year). From
December 2001, when it reached R13.44 = $1.00, the rand has appreciated by 43.1% against the dollar to R7.65= $1.00 at June 30,
2010 (based on closing rates). At September 30, 2010 the Rand traded at R6.98 = $1.00, an 8.8% strengthening relative to the Dollar
from June 30, 2010.

A decrease in the dollar gold price and a strengthening of the foreign exchange rate of the rand could result in a decrease in

our profitability. In fiscal 2010 and 2009 100% of production was from our South African mines providing significant exposure to the
strengthening of the rand and a decrease in profitability. As a result of disposing of our Australasian operations during fiscal 2008, we
are more exposed to the rand/dollar exchange rate as all our operations are now located in South Africa. If the rand were to continue
to appreciate against the dollar, our operations could experience a reduction in cash flow and profitability and this would negatively
and adversely affect our business, operating results and financial condition.

Inflation may have a material adverse effect on our results of operations.

South Africa has experienced high rates of inflation in the past. Because we are unable to control the market price at

which we sell the gold we produce, it is possible that significantly higher future inflation in South Africa may result in an increase
in our future operational costs in rand, without a concurrent devaluation of the operational costs in rand against the dollar or an
increase in the dollar price of gold. This could have a material adverse effect upon our results of operations and our financial
condition. Significantly higher and sustained inflation in the future, with a consequent increase in operational costs, could result in
operations being discontinued or reduced or rationalized at higher cost mines.

We have incurred losses in the past and may incur losses in the future.

We achieved net profits of R203.4 million, R110.7 million and R1.2 billion for fiscal 2010, 2009 and 2008, respectively.

Since fiscal 2007 we have disposed of our loss making Australasian operations and refocused on our profitable South African
operations, however, we may incur losses in the future. Our profits and cash flows of our operations are directly exposed to the
strength of the Rand and higher input costs as we do not hedge. Our underground mine is also regarded as an older, higher cost and
lower grade gold producer. In addition, our ability to identify Ore Reserves that have reasonable prospects for economic extraction
while maintaining sufficient controls on production and other costs, will have a material influence on the future viability of our
operations.

We may not be able to meet our cash requirements because of a number of factors, many of which are beyond our

control.

Management’s estimates on future cash flows are subject to risks and uncertainties, such as the gold price, production

volumes, costs and seismicity. If we are unable to meet our cash requirements out of cash flows generated from our operations, we
would need to fund our cash requirements from alternative financing and we cannot guarantee that any such financing would be on
acceptable terms, or would be permitted under the terms of our existing financing arrangements, or would be available at any terms.
In the absence of sufficient cash flows or adequate financing, our ability to respond to changing business and economic conditions,
make future acquisitions, react to adverse operating results, meet our debt service obligations and fund required capital expenditures
or increased working capital requirements may be adversely affected.

The failure to discover or acquire new Ore Reserves could negatively affect our cash flow, results of operations and

financial condition.

Our future cash flow, results of operations and financial condition are directly related to the success of our exploration

and acquisition efforts in the regions in which we operate and any new regions that we identify for future growth opportunities.

Our Ore Reserves for fiscal 2010 increased by 15% as a result of the higher rand gold price used in the Ore Reserve calculation
together with the expected increase in Crown’s deposition capacity as a consequence of the construction of the Crown/Ergo
pipeline linking Crown to Ergo’s Brakpan deposition site. Our Ore Reserves for fiscal 2009 increased by 16%, primarily due to
the inclusion of the Elsburg tailings owned by ERPM. In fiscal 2008, our Ore Reserves decreased by 7% primarily due to the
disposal of our interest in Emperor Mines Limited, or Emperor. Mining higher grade reserves in our underground mine is likely to
be more difficult in the future, due to the age of this mine and safety concerns and could result in increased production costs and
reduced profitability. We can make no assurances that any new or ongoing exploration programs will result in new mineral
producing operations that will sustain or increase our Ore Reserves. A failure to discover or acquire new Ore Reserves in
sufficient quantities to maintain or grow the current level of our reserves will negatively affect our future cash flow, results of
operations and financial condition.

To the extent that we seek to expand and grow through acquisitions we may experience difficulty in managing these

acquisitions and integrating them with our existing operations.

Our objective is to grow our business by improving efficiency at our existing operations as well as through acquisitions.

From time to time we consider the acquisition of mining assets including ore reserves, development properties, operating mines or
mining companies. Our expansion through acquisitions of new gold mining operations involves a number of risks including:

• maintaining our financial and strategic focus while integrating the acquired business;

• implementing uniform standards, controls, procedures and policies at the acquired business;

• assimilating the operations of an acquired business in a timely and efficient manner;

• unifying our periodic and year-end financial audit processes;

• increasing pressures on existing management to oversee an expanding company;

• to the extent that we make an acquisition outside of markets in which we have previously operated, conducting and

managing operations in a new operating environment;

• the market for acquisitions is competitive and we may not always be successful in identifying and purchasing assets that

fit our strategy;

• the ability to conduct a comprehensive due diligence analysis could be restricted due to unavailable information;

• we may need to use a combination of historical and projected data in order to evaluate the financial and operational

feasibility of the target assets. These analyses are based on a variety of factors including historical operating results,
estimates of and assumptions about future reserves, cash and other operating costs, metal prices and projected economic
returns and evaluations of existing or potential liabilities associated with the property and its operations. Other than
historical operating results, all of these parameters could differ significantly from the estimates and assumptions used in
the evaluation process, which could result in an incorrect evaluation of the quality of the assets to be acquired;

• our inability to make suitable acquisitions at an appropriate price could adversely affect our ongoing business and

financial condition, particularly if the rand strengthens against the dollar;

• we may experience difficulty in negotiating acceptable terms with the seller of the business to be acquired;

• we may not be able to obtain the financing necessary to complete future acquisitions;

• we may not be able to obtain necessary approvals from regulatory authorities;

• acquisitions financed through the issue of shares may result in a dilution in the value of our shares if the value of the

business acquired is not realized; and

• we could experience financial loss through costs incurred in evaluating and pursuing failed acquisitions or overpaying for

an acquisition.

Any problems experienced in achieving successful integration or in connection with an acquisition as a result of one or more

of these factors could have an adverse effect on our business, operating results and financial condition.

We may need to improve our internal controls over financial reporting and our independent auditors may not be able to

attest to their effectiveness because of inherent limitations.

We have evaluated our internal controls over financial reporting for the current fiscal period so that management can attest

to the effectiveness of these controls, as required by Section 404 of the United States Sarbanes-Oxley Act of 2002. Management has
determined that these controls are effective for the 2010 and 2009 fiscal years respectively and did not identify any material
weaknesses within our internal controls surrounding the financial reporting process. These internal controls over financial reporting
may not be sufficient to prevent significant deficiencies or material weaknesses in the future, and we may also identify other
conditions that could result in significant deficiencies or material weaknesses. In this event, we could experience a negative reaction
in the financial markets and incur additional costs in improving the condition of our internal controls. For a detailed discussion of
controls and procedures, see Item 15.: “Controls and Procedures.”

Increased production costs could have an adverse effect

on our results of operations.

Our historical production costs have varied significantly and we may not be able to accurately predict and adequately

provide for an increase in our production costs. Production costs are affected by, among other things:

• labor stability, lack of productivity and increases in labor costs;

• increases in crude oil, steel, electricity and water prices;

• unforeseen changes in ore grades and recoveries;

• unexpected changes in the quality or quantity of reserves;

• unstable or unexpected ground conditions and seismic activity;

• technical production issues;

• environmental and industrial accidents;

• gold theft;

• environmental factors; and

• pollution.

The majority of our production costs consist of labor, steel, electricity, water, fuels, lubricants and other oil and petroleum

based products. The production costs incurred at our operations have, and could in the future, increase at rates in excess of our annual
expected inflationary increase and result in the restructuring of these operations at substantial cost. The majority of our South African
labor force is unionized and their wage increase demands are usually above the then prevailing rates of inflation. In September 2009,
at Blyvoor, Crown and ERPM we entered into a two year wage agreement with the United Association of South Africa, or UASA,
which took effect from October 1, 2009. Under the agreement, employees at Blyvoor received a 6.5% increase, employees at Crown
received a 6% increase and employees at ERPM received a 4.0% increase. In addition, the UASA employees are eligible for a gold
price/profit linked incentive scheme. The National Union of Mine Workers, or NUM, however, rejected a similar offer and
commenced strike action on September 15, 2009. The NUM strike ended on October 11, 2009 and the following wage agreements
were reached: a two year wage agreement at Crown with effect from October 1, 2009 pursuant to which an 8% wage increase was
agreed, along with another increase of 8% with effect from July 1, 2010; a one year wage agreement at ERPM with effect from
October 1, 2009 pursuant to which a 4% wage increase was agreed; and a two year wage agreement at Blyvoor with effect from July
1, 2009 pursuant to which an 8% wage increase was agreed for the first year, along with another increase of 8% for the second year.
Between September 15, 2009 and October 11, 2009, our average daily gold production loss due to the strike actions was 320 ounces,
almost entirely from Blyvoor’s deep-level underground mining operation. In addition, in the past, we have been impacted by large
price increases imposed by our South African steel suppliers and parastatal entities which supply us with electricity and water. These,
combined with the increases in labor costs, could result in our costs of production increasing above the gold price received.
Discussions with steel suppliers and parastatal entities to moderate price increases have been unsuccessful in the past.

The costs of fuels, lubricants and other oil and petroleum based products have increased in fiscal 2010 as a result of the

general increase in the cost of crude oil in global markets. During fiscal 2009, the average brent crude oil price was approximately
$70 per barrel and in fiscal 2010, the average brent crude oil price was approximately $75 per barrel. In the event that crude oil prices
increase again, this could have a significant impact on our production costs.

Our initiatives to reduce costs, such as reducing our labor force, negotiating lower price increases for consumables and

stringent cost controls, may not be sufficient to offset the increases imposed on our operations and could negatively affect our
business, operating results and financial condition.

Our operations are subject to extensive environmental regulations which could impose significant costs and liabilities.

Our operations are subject to increasingly extensive laws and regulations governing the protection of the environment, under

various state, provincial and local laws, which regulate air and water quality, hazardous waste management and environmental
rehabilitation and reclamation. Our mining and related activities impact the environment, including land, habitat, streams and
environment near the mining sites. Delays in obtaining, or failures to obtain government permits and approvals may adversely
impact our operations. In addition, the regulatory environment in which we operate could change in ways that could substantially
increase costs to achieve compliance, therefore having a material adverse effect on our profitability.

We have made, and expect to make in the future, expenditures to comply with these environmental laws and regulations. We

have estimated our aggregate Group Rehabilitation, Reclamation and Closure cost provision at R420.6 million included on our
statement of financial position as at June 30, 2010. However, the ultimate amount of rehabilitation costs may in the future exceed the
current estimates due to influences beyond our control, such as changing legislation, higher than expected cost increases, or
unidentified rehabilitation costs. The closure of mining operations, without sufficient financial provision for the funding of
rehabilitation liabilities, or unacceptable damage to the environment, including pollution or environmental degradation, may expose
us and our directors to litigation and potentially significant liabilities.

Seismicity and other natural disasters could impact the going concern of our operations.

We run the inherent risk that seismic activity and/or other natural disasters could cripple our operations and affect their

ability to continue production. Seismic activity has had, and may continue to have, a harmful effect on our business, operating results
and financial condition. For example, on May 29, 2009, the Blyvoor operations suffered the effects of a seismic event which knocked
out a number of its high grade panels in the 38/29 section at No. 5 Shaft. This resulted in gold production being approximately 151kg
lower than expected for the four month period ended October 31, 2009 (this excludes the impact of the strike action by our NUM
employees during the months of September and October 2009).

Flooding at our operations may cause us to incur liabilities for environmental damage.

Flooding of underground mining areas is an inherent risk at our underground operations. If the rate of rise of water is not

controlled, water from

underground mining areas could potentially rise to the surface or decant into surrounding underground mining

areas or natural underground water sources. Due to the withdrawal of government pumping subsidies at Durban Deep and West Wits,
we have ceased active pumping of underground water at these mines. We also stopped pumping of underground water at our ERPM
underground operation on August 20, 2009. Progressive flooding where these operations are located could eventually cause the
discharge of polluted water to the surface and to local water sources.

Estimates of the probable rate of rise of water in those mines are contradictory and lack scientific support, however, should

underground water levels not reach a natural subterranean equilibrium, and in the event that underground water rises to the surface,
we may face claims relating to environmental damage as a result of pollution of ground water, streams and wetlands. These claims
may have a material adverse effect on our business, operating results and financial condition.

We have ageing assets, which exposes us to greater risk of our infrastructure failing, higher maintenance costs and

potentially greater health, safety and environmental liabilities.

Some of our assets, especially at our underground mine, are mature assets, which we acquired after they had reached the end

of the planned production cycle under their previous owners, and our strategy has been to revive these assets through specialist
planning and mining techniques. The ageing infrastructure and installations typical of these operations require constant maintenance
and continuing capital expenditure. This materially increases our operational costs. In addition, the technology applied in many of our

installations was not regularly updated and accordingly has become obsolete compared to the technology used in more modern mines.
As a result, the risk of technology failure is high, and the maintenance of these installations, costly.

Due to the nature of the business and because our marginal underground mine predominantly comprises of aged

infrastructures, we inherently run the risk of exposure to greater health, safety and environmental liabilities which we closely monitor,
but are unable to fully mitigate.

Limited tailings dam capacity at Crown exposes us to greater risk of financial loss due to lower production and health,

safety and environmental liabilities.

Our ageing tailings facilities at Crown are exposed to numerous risks and events, the occurrence of which may result in the

failure or breach of such a facility. These may include sabotage, failure to adhere to the codes of practice and natural disasters such as
excessive rainfall and seismicity. In the event that we are limited on how much treated ore, sand or slime we can deposit at Crown’s
deposition sites and deposition capacity created by the Ergo/Crown pipeline project, we could be forced to stop or limit operations,
the dams could overflow and the health and safety of our employees and communities living around these dams could be jeopardized.
In the event that this occurs, our Crown operations will be adversely affected and this in turn could have a material adverse effect on
our business, operating results and financial condition.

Ergo (which comprises ErgoGold and Ergo Mining (Pty) Limited, or the Ergo JV) also has tailings facilities that are

exposed to the same risks as described above, but as at September 30, 2010 these tailings facilities had sufficient capacity.

Due to the nature of our business, our Company faces extensive health and safety risks.

Regrettably two people died in work-related incidents during fiscal 2010, compared to five fatalities in fiscal 2009. One of

these fatalities occurred while work was being performed in the course of routine maintenance and the other fatality occurred as a
result of a conveyance incident. Subsequent to February 4, 2010 and up to September 30, 2010 it is encouraging to report that there
was no loss of life at any of our operations. According to section 54 of the Mine, Health and Safety Act of 1996, if an inspector
believes that any occurrence, practice or condition at a mine endangers or may endanger the health or safety of any person at the
mine, the inspector may give any instruction necessary to protect the health or safety of persons at the mine. These instructions could
include the suspension of operations at the whole or part of the mine. While seismic monitoring continues to be an invaluable tool in
the management of seismicity, there is still a risk of seismic induced fatalities occurring which we may not be able to prevent. These
incidents could lead to mine operations being halted and that will increase our unit costs due to loss of production. This could have a
material adverse effect on our business, operating results and financial condition.

Events may occur for which we are not insured which could affect our cash flows and profitability.

Because of the nature of our business, we may become subject to liability for pollution or other hazards against which we

are unable to insure, including those in respect of past mining activities. Our existing property, business interruption and other
insurance contains certain exclusions and limitations on coverage. We have insured property, including loss of profits due to business
interruption in the amount of about R9.0 billion. Claims for each and every event are limited by the insurers to R1.0 billion. Business
interruption is only covered from the time the loss actually occurs and is subject to time and amount deductibles that vary between
categories. General liability, fidelity, directors and officers, and other insurance cover are also in place.

Future insurance coverage may not cover the extent of claims brought against us, including claims for environmental,

industrial or pollution related accidents, for which coverage is not available. If we are required to meet the costs of claims which
exceed our insurance coverage, our costs may increase which could have a material adverse effect on our business, operating results
and financial condition.

If we are unable to attract and retain key personnel our business may be harmed.

The success of our business will depend, in large part, upon the skills and efforts of a small group of management and

technical personnel including our Chief Executive Officer and our Chief Financial Officer. In addition, we compete with mining and
other companies on a global basis to attract and retain key human resources at all levels with appropriate technical skills and

operating and managerial experience necessary to operate the business. Factors critical to retaining our present staff and attracting
additional highly qualified personnel include our ability to provide these individuals with competitive compensation arrangements,
equity participation and other benefits. If we are not successful in retaining or attracting highly qualified individuals in key
management positions, our business may be harmed. We do not maintain “key man” life insurance policies on any members of our
executive team. The loss of any of our key personnel could prevent us from executing our business plans, which may result in
decreased production, increased costs and decreased profitability.

The Crown/Ergo pipeline is a start-up project and forecasts may not be achieved.

Implementation of the Crown/Ergo pipeline project commenced during June 2010 and is scheduled for completion by

August 2011. The pipeline will provide two of Crown’s plants with access to Ergo’s Brakpan deposition site, allowing Crown to
restore its maximum deposition capacity to 600 000tpm. Crown’s deposition capacity was reduced to 400 000tpm in fiscal 2009 due
to capacity constraints at its deposition site. Restored deposition capacity will allow Crown to account for new Ore Reserves on the
Western and Central Witwatersrand, thus increasing production and extending its life-of-mine. The Crown/Ergo pipeline project is
exposed to numerous risks associated with similar projects, including delays in completion, total abandonment of the project or lower
production than forecasted which could have a material adverse effect on our business, operating results and financial condition. As at
September 30, 2010, the project was on schedule.

Potential provisional judicial management order application to the High Court of South Africa for Blyvoor.

On November 10, 2009, the High Court of South Africa granted a provisional judicial management order over our

Blyvoor operation. The provisional judicial management order was granted in terms of the provisions of Section 427 of the South
African Companies Act. Subsequently, on April 13, 2010 application to the High Court of South Africa had been made to lift the
provisional judicial management order and the application was granted. In fiscal 2009, Blyvoor accounted for 129,473 ounces of
gold, or 52% of our total production and in fiscal 2010 it accounted for 106,452 ounces or 44% of our total production. Under the
terms of a provisional judicial management order, the court appoints a judicial manager who has a wide range of powers at his
disposal to take such actions he deems necessary to save the business. These could include giving certain creditors temporary
preference over others and agreeing compromises with creditors without the risk of committing an act of insolvency and thereby
exposing the mine to liquidation. Should circumstances occur in the future that impact on the sustainability of Blyvoor, then
management may once again apply for a provisional judicial management order or take other measures that they consider
appropriate to protect the business. If these circumstances occur, our business, financial condition and results of operations would
be materially, adversely affected.

Risks related to the gold mining industry

A change in the price of gold, which in the past has fluctuated widely, is beyond our control.

Historically, the gold price has fluctuated widely and is affected by numerous industry factors, over which we have no

control, including:

• the physical supply of gold from world-wide production and scrap sales, and the purchase, sale or divestment by central

banks of their gold holdings;

• the demand for gold for investment purposes, industrial and commercial use, and in the manufacturing of jewelry;

• speculative trading activities in gold;

• the overall level of forward sales by other gold producers;

• the overall level and cost of production of other gold producers;

• international or regional political and economic events or trends;

• the strength of the dollar (the currency in which gold prices generally are quoted) and of other currencies;

• financial market expectations regarding the rate of inflation;

• interest rates;
• gold hedging and de-hedging by gold producers; and

• actual or expected gold sales by central banks and the International Monetary Fund.

Our Company’s profitability may be negatively impacted if revenue from gold sales drops below the cost of production for

an extended period.

Current economic conditions may adversely affect the profitability of the Group’s operations.

The global economy is currently undergoing a period of prolonged recession and, despite recent signs of stabilization, the

future economic environment is likely to be less favorable than that of recent years. Since September 2008, the global financial
system has experienced difficult credit and liquidity conditions and disruptions resulting in major financial institutions consolidating
or going out of business, tightened credit markets, reduced liquidity, and extreme volatility in fixed income, credit, currency and
equity markets. These conditions may adversely affect the Group’s business. For example, tightening credit conditions may make it
more difficult for the Group to obtain financing on commercially acceptable terms or make it more likely that one or more of our key
suppliers may become insolvent and lead to a supply chain breakdown. In addition, general economic indicators have deteriorated,
including declining consumer sentiment, increased unemployment, declining economic growth and uncertainty regarding corporate
earnings. To the extent the current economic downturn worsens or the economic environment in which the Group operates does not
recover, the Group could experience a material adverse effect on its business, results of operations and financial condition.

The exploration of mineral properties is highly speculative in nature, involves substantial expenditures, and is frequently

unproductive.

We must continually replace Ore Reserves that are depleted by production. Notably, underground operations at ERPM

have been halted since October 2008 and a decision was reached at the end of August 2009 to suspend underground production at
ERPM. Our future growth and profitability will depend, in part, on our ability to identify and acquire additional mineral rights, and
on the costs and results of our continued exploration and development programs. Gold mining companies may undertake
exploration activities to discover gold mineralization, which in turn may give rise to new gold bearing ore bodies. Exploration is
highly speculative in nature and requires substantial expenditure for drilling, sampling and analysis of ore bodies in order to
quantify the extent of the gold reserve. Many exploration programs, including some of ours, do not result in the discovery of
mineralization and any mineralization discovered may not be of sufficient quantity or quality to be mined profitably. If we discover a
viable deposit, it usually takes several years from the initial phases of exploration until production is possible.

During this time, the economic feasibility of production may change. Moreover, we rely on the evaluations of

professional geologists, geophysicists, and engineers for estimates in determining whether to commence or continue mining.
These estimates generally rely on scientific and economic assumptions, which in some instances may not be correct, and could
result in the expenditure of substantial amounts of money on a deposit before it can be determined with any degree of accuracy
whether or not the deposit contains economically recoverable mineralization. Uncertainties as to the metallurgical recovery of any
gold discovered may not warrant mining on the basis of available technology. As a result of these uncertainties, we may not
successfully acquire additional mineral rights, or identify new Proven and Probable Ore Reserves in sufficient quantities to justify
commercial operations in any of our properties. Our mineral exploration rights may also not contain commercially exploitable
reserves of gold. The costs incurred on unsuccessful exploration activities are, as a result, not likely to be recovered and we could
incur a write-down on our investment in that interest or the irrecoverable loss of funds spent. As at September 30, 2010, the Group
has broadened its exploration activities to include initial exploration activities on a small scale in Zimbabwe.

There is uncertainty with our Ore Reserve estimates.

Our Ore Reserve figures described in this document are the best estimates of our current management as of the dates

stated and are reported in accordance with the requirements of Industry Guide 7 of the SEC. These estimates may be imprecise
and may not reflect actual reserves or future production.

Should we encounter mineralization or formations different from those predicted by past drilling, sampling and similar

examinations, reserve estimates may have to be adjusted and mining plans may have to be altered in a way that might ultimately
cause our results of operations and financial condition to decline. Moreover, if the price of gold declines, or stabilizes at a price that is
lower than recent levels, or if our production costs, and in particular our labor, water, steel and electricity costs, increase or recovery
rates decrease, it may become uneconomical to recover Ore Reserves containing relatively lower grades of mineralization. Under
these circumstances, we would be required to re-evaluate our Ore Reserves. Short-term operating factors relating to the Ore Reserves,
such as the need for sequential development of ore bodies and the processing of new or different grades, may increase our production
costs and decrease our profitability during any given period. These factors have and could result in reductions in our Ore Reserve
estimates, which could in turn adversely impact upon the total value of our mining asset base and our business, operating results
and financial condition.

Gold mining is susceptible to numerous events that could have an adverse impact on a gold mining business.

The business of gold mining takes place in underground mines, open pit mines and surface operations for the retreatment of

rock dumps and tailings dams. These operations are exposed to numerous risks and events, the occurrence of which may result in the
death of, or personal injury to, employees, the loss of mining equipment, damage to or destruction of mineral properties or
production facilities, monetary losses, delays in production, environmental damage, loss of the license to mine and potential legal
claims. The risks and events associated with the business of gold mining include, but are not limited to:

• environmental hazards and pollution, including the discharge of gases, toxic chemicals, pollutants, radioactive materials and

other hazardous material into the air and water;

• seismic activity which could lead to rock bursts, cave-ins, pit slope failures or, in the event of a significant event, total

closure of sections or an entire underground mine;

• unexpected geological formations which reduce or prevent mining from taking place;

• flooding, landslides, sinkhole formation, ground subsidence, ground and surface water pollution, and waterway

contamination;

• underground fires and explosions, including those caused by flammable gas;

• accidents caused from and related to drilling, blasting, removing, transporting and processing material, and the collapse of

pit walls and tailings dams; and

• a decrease in labor productivity due to labor disruptions, work stoppages, disease, slowdowns or labor strikes.

In addition, deep level underground mines in South Africa, as compared to other gold mining countries, involve

significant risks and hazards not associated with open pit or surface rock dump and tailings dam retreatment operations. These
risks and hazards include underground fires, encountering unexpected geological formations, unanticipated ground and water
conditions, fall-of-ground accidents and seismic activity. The level of seismic activity in a deep level gold mine varies based on
the rock formation and geological structures in the mine. The occurrence of any of these hazards could delay production, increase
production costs and may result in significant legal claims.

Risks related to doing business in South Africa

Political or economic instability in South Africa may reduce our production and profitability.

We are incorporated and own operations in South Africa. As a result, political and economic risks relating to South Africa

could reduce our production and profitability. Large parts of the South African population are unemployed and do not have access to
adequate education, health care, housing and other services, including water and electricity. Government policies aimed at alleviating
and redressing the disadvantages suffered by the majority of citizens under previous governments may increase our costs and reduce
our profitability. In recent years, South Africa has experienced high levels of crime. These problems have impeded fixed inward
investment into South Africa and have prompted emigration of skilled workers. As a result, we may have difficulties attracting and
retaining qualified employees.

Recently, the South African economy has been growing at a relatively slow rate, inflation and unemployment have been

high by comparison with developed countries, and foreign currency reserves have been low relative to other emerging market
countries. In the late 1980s and early 1990s, inflation in South Africa reached highs of 20.6%. This increase in inflation resulted in
considerable year on year increases in operational costs. The inflation rate in South Africa still remains relatively high compared to
first world countries, as of June 2010, the Consumer Price Inflation Index, or CPI, stood at 4.2%, down from 6.9% in June 2009, and
12.2% in June 2008. The relatively high inflation rate continued at 3.5% as at September 30, 2010. Continuing high levels of inflation
in South Africa for prolonged periods, without a concurrent devaluation of the rand or increase in the price of gold, could result in an
increase in our costs which could reduce our profitability. In January 2009, the South African Reserve Bank changed the way
inflation is measured by expanding the range of consumer goods used and changing the benchmark measure from CPIX (CPI minus
mortgage costs) to CPI. Mortgage costs have been replaced by owners’ equivalent rental (OER) to capture housing costs, making
CPIX redundant. The closest measure to CPIX is CPI minus OER.

Power stoppages or increases in the cost of power could negatively affect our results and financial condition.

Our mining operations are dependent on electrical power supplied by Eskom, South Africa’s state owned utility company.

As a result of a substantial increase in demand and insufficient generating capacity, Eskom has warned that the country could face
disruptions in electrical power supply. The available generating capacity of electricity was constrained mainly as a result of
unplanned maintenance at some of Eskom’s power stations, insufficient supply of coal to the coal fired plants and skills shortages. On
January 25, 2008, Eskom announced that they could no longer guarantee the supply of electricity to the South African mining
industry. Eskom subsequently cut off power supply to the mining industry for five days in fiscal 2008 and a number of power outages
followed over several months thereafter. Eskom did manage to contain electricity stoppages but the fact remains that the country’s
current reserve capacity is insufficient and the risk of electricity stoppages is expected to continue through 2013. Apart from the five-
day closure, our production has not been affected, however further power supply stoppages or power cost increases could have an
adverse effect on our operating results and financial condition. From July 1, 2009, Eskom’s average tariff increased by 31.3% and has
adversely affected our production costs particularly at our Blyvoor operation. Eskom have indicated that they do not have sufficient
funding required for planned infrastructure development, and have imposed the following average tariff increases: from April 1, 2010
an increase of 24.8%, from June 1, 2011 an increase of 25.8% and from June 1, 2012 an increase of 25.9%. These increases have had
an adverse affect on our production costs particularly at our Blyvoor operation and could have a material adverse effect on our
business, operating results and financial condition.

AIDS poses risks to us in terms of productivity and costs.

Acquired Immune Deficiency Syndrome, or AIDS, and tuberculosis which is closely associated with the onset of the disease

and is exacerbated in the presence of HIV/AIDS, represents a very serious health care challenge in the mining industry. Human
Immunodeficiency Virus, or HIV, is the virus that causes AIDS and South Africa has one of the highest HIV infection rates in the
world. It is estimated that approximately 30% - 35% of the mining industry workforce in South Africa are HIV positive. The exact
extent to which our mining workforce within South Africa is infected with HIV/AIDS is unknown at this stage. The existence of the
disease poses a risk to us in terms of the potential reduction in productivity and increase in health and safety costs brought about by
the company’s social responsibility.

The treatment of occupational health diseases and the potential liabilities related to occupational health diseases may

have an adverse effect on the results of our operations and our financial condition.

The primary area of focus in respect of occupational health within our operations is noise-induced hearing loss (NIHL),

occupational lung diseases (OLD) and tuberculosis (TB). We provide occupational health services to our employees at our
occupational health centers and continue to improve preventive occupational hygiene initiatives. If the costs associated with
providing such occupational health services increase, such increase could have an adverse effect on the results of our operations and
our financial condition.

Increased theft at our work sites, particularly of copper, may result in greater risks to employees or interruptions in

production.

Crime statistics available in South Africa indicate an increase in theft. This together with price increases for copper as a

commodity has resulted in the increased theft of copper cable. All of our operations experience high incidents of copper cable theft
despite the implementation of security measures. In addition to the general risk to employees in an area where theft occurs, we may
suffer production losses and incur additional costs as a result of power interruptions caused by cable theft.

Possible scarcity of water may negatively affect our results and financial condition.

National studies conducted by the Water Research Commission, released during September 2009, found that water resources

were 4% lower than estimated in 1995 which may lead to the revision of water usage strategies by several sectors in the South
African economy, including electricity generation and municipalities. This may result in rationing or increased water costs in the
future. Such changes would adversely impact all of our operations, which require water to operate. In particular our surface
retreatment operations, which use water to transport the slimes or sand from reclaimed areas to the processing plant and to the tailings
facilities, would be adversely impacted. In addition, as our gold plants and piping infrastructure were designed to carry certain
minimum throughputs, any reductions in the volumes of available water may require us to halt production at these operations. We are
currently considering a project which envisages the pumping of underground water at ERPM for use by our surface retreatment
operations.

Government policies in South Africa may adversely impact our operations and profits.

Government Regulation

The mining industry in South Africa is extensively regulated through legislation and regulations issued through the

government’s administrative bodies. These involve directives in respect of health and safety, the mining and exploration of minerals,
and managing the impact of mining operations on the environment. A variety of permits and authorities are required to mine lawfully,
and the government enforces its regulations through the various government departments. The formulation or implementation of
government policies may be unpredictable on certain issues, including changes in laws relating to mineral rights and ownership of
mining assets and the rights to prospect and mine and in extreme cases, nationalization.

The Mineral and Petroleum Resources Development Act, 2002

On May 1, 2004, the new Minerals and Petroleum Resources Development Act, or the MPRD Act, came into effect, which

places all mineral and petroleum resources under the custodianship of the state. Private title and ownership in minerals, or the “old
order rights,” are to be converted to “new order rights,” essentially the right to mine. The MPRD Act allows the existing holders of
mineral rights a period of five years to apply for the conversion of used old order rights, and one year for the conversion of unused
old order rights. Once these periods have lapsed, the holders may have to compete to acquire the right to mine minerals previously
held under old order rights. We have submitted the respective applications in order to comply with the requirements of the Mining
Charter as described below. To the extent that we are unable to convert some of our old order rights, we may have a claim for
compensation based on expropriation. It is not possible to forecast with any degree of certainty whether a claim will be enforceable
against the State, and if enforceable, the level of compensation we will receive, if any. Factors that are taken into account include
market value, proof of actual loss, proof of ownership, nature of property, current use of the property and history of the acquisition.

Where new order rights are obtained under the MPRD Act, these rights will not be equivalent to our existing property rights.

The area covered by the new order rights may be reduced by the State if it finds that the prospecting or mining work program
submitted by an applicant does not substantiate the need to retain the area covered by the old order rights. The duration of the new
order rights will no longer be perpetual but rather, in the case of new order mining rights, for a maximum of 30 years with renewals
of up to 30 years each and, in the case of prospecting rights, up to five years with one renewal of up to three years. In addition, the
new order rights will only be transferable subject to the approval of the Minister of Mineral Resources (formerly Minister of Minerals
and Energy). Mining or prospecting must commence within one year or 120 days, respectively, of the mining right or prospecting
right becoming effective, and must be conducted continuously and actively thereafter. The new rights can be suspended or cancelled
by the Minister of Mineral Resources in the event of a breach or, in the case of mining rights, non-optimal mining in accordance with
the mining work program.

The implementation of the MPRD Act will result in significant adjustments to our property ownership structure. We have

lodged applications to convert all of our old order rights, however, to the extent that we are unable to convert some of our old order
rights to new order rights, and that the exclusive rights to minerals we enjoyed under the previous statutory regime are diminished,
the operations of the MPRD Act may result in significant adjustments to our property ownership structure, which in turn could have a
material adverse effect on the underlying value of our operations. West Wits and West Witwatersrand Consolidated Mine’s
application for conversion has been approved. Benoni and ERPM’s applications for conversion have received preliminary approval
but are still awaiting dates of execution from the Department of Mineral Resources. As at September 30, 2010 the remainder of our
old order mining rights is yet to be converted into new order mining rights. The MPRD Act states that the conversions must be
granted by the minister if all requirements are completed but it does not stipulate any time frame. The MPRD Act also provides for
holders of old order rights to continue to operate under the terms and conditions of such rights until conversions under the MPRD Act
have been completed.

Taxation reform and mining royalties

The South African government has declared its intention to revisit the taxation regime of South African gold mining

companies. The South African gold mining industry is taxed under the gold taxation formula which recognizes the high level of
capital expenditure required to sustain a mining operation over the life of the mine. This results in an additional tax benefit not
afforded to other commercial companies. In addition, the South African Government initially indicated that it was looking at a
revenue based royalty for mining companies, as outlined in the draft Mineral and Petroleum Royalty Bill, 2003, or Royalty Bill,
which was released in March 2003 for comment. Two more drafts of the Royalty Bill were subsequently released on
October 11, 2006 and December 6, 2007 after going through several revisions. The Royalty Bill was promulgated by government on
August 14, 2008. The Mineral and Petroleum Resources Royalty Act was published on October 11, 2006 for public comment. The
Mineral and Petroleum Resources Royalty Act, No.28 of 2008 was enacted on November 21, 2008 and was published in the South
African Government Gazette on November 24, 2008 and Mineral and the Petroleum Resources Royalty Act (Administration), No.29
of 2008 on November 26, 2008, and was effective from March 1, 2010. These acts provide for the payment of a royalty, calculated
through a royalty rate formula (using rates of between 0.5% and 5.0%) applied against gross revenue per year, payable half yearly
with a third and final payment thereafter. The royalty is tax deductible and the cost after tax amounts to a rate of between 0.33% and
3.3% at the prevailing marginal tax rates applicable to the group. The royalty is payable on old unconverted mining rights and new
converted mining rights. Introduction of similar revenue based royalties or any future tax reforms would have an adverse effect on
the business, operating results and financial condition of our operations.

The Broad Based Socio-Economic Empowerment Charter

The Broad Based Socio-Economic Empowerment Charter for the South African Mining Industry, or Mining Charter

(effective from May 1, 2004), establishes certain numerical goals and timeframes to transform equity participation in the mining
industry in South Africa.

The goals set by the Mining Charter include that each mining company must achieve 15 percent ownership by historically

disadvantaged South Africans of its South African mining assets within five years and 26 percent ownership within ten years from
May 1, 2004. This is to be achieved by, among other methods, the sale of assets to historically disadvantaged persons on a willing
seller/willing buyer basis at fair market value. When considering applications for the conversion of existing rights, the State will
take a “scorecard” approach, evaluating the commitments of each company to the different facets of promoting the objectives of
the Mining Charter. Failure on our part to comply with the requirements of the Mining Charter and the “scorecard” could subject
us to negative consequences. We may incur expenses in giving additional effect to the Mining Charter and the “scorecard”,
including costs which we may incur in facilitating the financing of initiatives towards ownership by historically disadvantaged
persons. There is also no guarantee that any steps we might take to comply with the Mining Charter would ensure that we could
successfully acquire new order mining rights in place of our existing rights. In addition, the terms of such new order rights may
not be as favorable to us as the terms applicable to our existing rights. We run the risk of losing our mining rights if we do not
comply with the requirements stipulated in the Mining Charter. This could have an adverse affect on our business, operating
results and financial condition.

Land claims

Our privately held land and mineral rights in South Africa could be subject to land restitution claims under the Restitution of

Land Rights Act, 1994 (as amended), or Land Rights Act. Under the Land Rights Act, any person who was dispossessed of rights to
land in South Africa as a result of past racially discriminatory laws or practices is granted certain remedies, including the restoration
of the land. The initial deadline for such claims was December 31, 1998. We have not been notified of any land claims, but it is
possible that administrative delays in the processing of claims could have delayed such notification. Any claims of which we are
notified in the future could have a material adverse effect on our right to the properties to which the claims relate and prevent us using
that land and exploiting any Ore Reserves located there. This could have an adverse affect on our business, operating results and
financial condition.

Since our South African labor force has substantial trade union participation, we face the risk of disruption from labor

disputes and new South African labor laws.

Labor costs constitute 34% of our production costs for fiscal 2010, 39% for fiscal 2009 and 41% for fiscal 2008. As of

June 30, 2010, we employ and contract 6,409 people, of whom approximately 83% are members of trade unions or employee
associations. We have entered into various agreements regulating wages and working conditions at our mines. Unreasonable wage
demands could increase production costs to levels where our operations are no longer profitable. This could lead to accelerated mine
closures and labor disruptions. In addition, we are subject to strikes by workers from time to time, which result in disruptions to our
mining operations. For example, from September 15, 2009 until October 11, 2009, a strike by members of the NUM union in
connection with a dispute over new wage agreements resulted in an average daily gold production loss of 320 ounces, almost entirely
from Blyvoor’s deep-level underground mining operations.

In recent years, labor laws in South Africa have changed in ways that significantly affect our operations. In particular, laws

that provide for mandatory compensation in the event of termination of employment for operational reasons and that impose large
monetary penalties for non-compliance with the administrative and reporting requirements of affirmative action policies could result
in significant costs to us. In addition, future South African legislation and regulations relating to labor may further increase our costs
or alter our relationship with our employees. Labor cost increases could have an adverse effect on our business, operating results and
financial condition.

Labor unrest and xenophobia could affect production.

We may experience labor unrest at our operations. In particular, during October and November 2002, ERPM experienced

some labor unrest during which several striking contract workers were wounded and two workers were killed by employees of a
private security company. Furthermore, during fiscal 2008, South Africa fell victim to a slew of xenophobic attacks when a series of
riots started in the township of Alexandra. This violence of locals attacking migrants from other African countries had a direct impact
on our operations at ERPM. Three employees died and attendance was down at the operation for several days. Although these attacks
have been contained, the challenge for the South African Government is to come up with a long-term and judicious immigration
policy.

A repeat of such events could have an adverse effect on our business, operating results and financial condition.

Our financial flexibility could be materially constrained by South African currency restrictions.

South African law provides for exchange control regulations, which restrict the export of capital from the Common

Monetary Area, including South Africa. The Exchange Control Department of the South African Reserve Bank, or SARB, is
responsible for the administration of exchange control regulations. In particular, South African companies:

• are generally not permitted to export capital from South Africa or to hold foreign currency without the approval of SARB;

• are generally required to repatriate, to South Africa, profits of foreign operations; and

• are limited in their ability to utilize profits of one foreign business to finance operations of a different foreign business.

While the South African Government has relaxed exchange controls in recent years, it is difficult to predict whether or

how it will further relax or abolish exchange control measures in the future. For further information see Item 10D.: “Exchange
Controls.”

Risks related to ownership of our ordinary shares or ADSs

Your ability to sell a substantial number of ordinary shares may be restricted by the limited liquidity of ordinary

shares traded on JSE Limited, or JSE.

In July 2006, we delisted from the Australian Stock Exchange and currently our primary listing for our ordinary shares is

only the JSE. The principal trading market for our ADSs is the Nasdaq Capital Market, or Nasdaq. On a historical basis, the
trading volumes and liquidity of shares listed on the JSE have been low in comparison with the Nasdaq. For the 12 months ended
June 30, 2010, only 25% of the ordinary shares publicly traded were traded on the JSE. The limited liquidity of the ordinary
shares traded on the JSE could limit your ability to sell a substantial number of ordinary shares on the JSE in a timely manner,
especially by means of a large block trade.

Sales of large volumes of our ordinary shares or ADSs or the perception that these sales may occur, could adversely

affect the prevailing market price of such securities.

The market price of our ordinary shares or ADSs could fall if substantial amounts of ordinary shares or ADSs are sold by

our stockholders, or there is the perception in the marketplace that such sales could occur. Current holders of our ordinary shares
or ADSs may decide to sell them at any time. Sales of our ordinary shares or ADSs, if substantial, or the perception that these
sales may occur to be substantial, could exert downward pressure on the prevailing market prices for our ordinary shares or ADSs,
causing their market prices to decline. Trading activity of hedge funds and the ability to borrow script in the market place will
increase trading volumes and may place our share price under pressure.

Your rights as a shareholder are governed by South African law, which differs in material respects from the rights of

shareholders under the laws of other jurisdictions.

Our Company is a public limited liability company incorporated under the laws of the Republic of South Africa. The

rights of holders of our ordinary shares, and therefore many of the rights of our ADS holders, are governed by our memorandum
and articles of association and by South African law. These rights differ in material respects from the rights of shareholders in
companies incorporated elsewhere, such as in the United States. In particular, South African law significantly limits the
circumstances under which shareholders of South African companies may institute litigation on behalf of a company.

We may be subject to an increase in compliance costs with our continued efforts to increase the transparency of our

reporting requirements and changing corporate governance initiatives.

As a result of our listings on the Nasdaq Capital Market and JSE, we are required to comply with new and changing

reporting requirements that have over recent years emphasized an increase in the transparency of public disclosure. The associated
regulatory standards set forth by the exchanges’ governing bodies may change over time and may be subject to interpretation. As
a result we may not execute the application of these standards properly and will congruently experience an increase in the cost of
our compliance efforts. For example, management’s required assessment of our internal controls over the financial reporting
process stipulated by Section 404 of the Sarbanes-Oxley Act of 2002 commands the need for resources from management in
addition to our external auditors who are required to attest to our internal control over financial reporting. Maintaining high
standards of corporate governance and public disclosure is highly prioritized in our organization and with our continued efforts to
comply with these laws currently effective and any future legislative introductions or changes, we will continue to incur the
related costs.

It may not be possible for you to effect service of legal process, enforce judgments of courts outside of South Africa or

bring actions based on securities laws of jurisdictions other than South Africa against us or against members of our board.

Our Company, certain members of our board of directors and executive officers are residents of South Africa. In

addition, our cash producing assets are located outside the United States and a major portion of the assets of members of our board
of directors and executive officers are either wholly or substantially located outside the United States. As a result, it may not be
possible for you to effect service of legal process, within the United States or elsewhere outside South Africa, upon most of our
directors or officers, including matters arising under United States federal securities laws or applicable United States state
securities laws.

Moreover, it may not be possible for you to enforce against us or the members of our board of directors and executive

officers judgments obtained in courts outside South Africa, including the United States, based on the civil liability provisions of
the securities laws of those countries, including those of the United States. A foreign judgment is not directly enforceable in South
Africa, but constitutes a cause of action which will be enforced by South African courts provided that:

• the court which pronounced the judgment had jurisdiction to entertain the case according to the principles recognized by

South African law with reference to the jurisdiction of foreign courts;

• the judgment is final and conclusive (that is, it cannot be altered by the court which pronounced it);

• the judgment has not lapsed;

• the recognition and enforcement of the judgment by South African courts would not be contrary to public policy, including

observance of the rules of natural justice which require that no award is enforceable unless the defendant was duly served
with documents initiating proceedings, that he was given a fair opportunity to be heard and that he enjoyed the right to be
legally represented in a free and fair trial before an impartial tribunal;

• the judgment was not obtained by fraudulent means;

• the judgment does not involve the enforcement of a penal or revenue law; and

• the enforcement of the judgment is not otherwise precluded by the provisions of the Protection of Business Act, 1978 (as

amended), of South Africa.

It is the policy of South African courts to award compensation for the loss or damage actually sustained by the person to

whom the compensation is awarded. Although the award of punitive damages is generally unknown to the South African legal system
that does not mean that such awards are necessarily contrary to public policy. Whether a judgment was contrary to public policy
depends on the facts of each case. Exorbitant, unconscionable, or excessive awards will generally be contrary to public policy. South
African courts cannot enter into the merits of a foreign judgment and cannot act as a court of appeal or review over the foreign court.
South African courts will usually implement their own procedural laws and, where an action based on an international contract is
brought before a South African court, the capacity of the parties to the contract will usually be determined in accordance with South
African law. It is doubtful whether an original action based on United States federal securities laws may be brought before South
African courts. A plaintiff who is not resident in South Africa may be required to provide security for costs in the event of
proceedings being initiated in South Africa. Furthermore, the Rules of the High Court of South Africa require that documents
executed outside South Africa must be authenticated for the purpose of use in South African courts. It is not possible therefore for an
investor to seek to impose criminal liability on us in a South African court arising from a violation of United States federal
securities laws.

ITEM 4. INFORMATION ON THE COMPANY

4A. HISTORY AND DEVELOPMENT OF THE COMPANY

Introduction

DRDGOLD Limited is a South African gold mining company engaged in underground and surface gold mining including

exploration, extraction, processing and smelting. We have a 74% interest in DRDGOLD South African Operations (Pty) Limited, or
DRDGOLD SA. Of the remaining 26%, 20% is held by our Black Economic Empowerment, or BEE, partner Khumo Gold SPV
(Pty) Limited, or Khumo Gold and 6% is held by an employee trust (known as DRDSA Empowerment Trust). DRDGOLD SA
wholly owns and operates Blyvooruitzicht Gold Mining Company Limited, or Blyvoor, East Rand Proprietary Mines Limited, or
ERPM, and Crown Gold Recoveries (Pty) Limited, or Crown. DRDGOLD SA also wholly owns Ergo Mining (Pty) Limited, or the
Ergo JV, and it owns 65% of the Elsburg Gold Mining Joint Venture, or ErgoGold, with DRDGOLD holding the remaining 35%.
DRDGOLD is also a 50% partner in an early-stage gold exploration project on Zimbabwe’s Greenstone Belt. . As at June 30, 2010,
DRDGOLD's foreign subsidiaries, which were the holding companies for its previously disposed Australasian operations, have been
placed into voluntary liquidation.

We are a public limited liability company, incorporated on February 16, 1895, as Durban Roodepoort Deep, Limited, and

our shares were listed on the JSE in that same year. In 1898, our milling operations commenced with 30 stamp mills and in that year
we treated 38,728 tons of ore and produced 22,958 ounces of gold. On December 3, 2004, the company changed its name from
Durban Roodepoort Deep, Limited to DRDGOLD Limited. In South Africa, we have focused our operations on the West
Witwatersrand Basin which has been a gold producing region for over 100 years.

To facilitate access to global capital markets our shares and/or related instruments trade on the JSE, Nasdaq, the Marche

Libre on the Paris Bourse, the Brussels Bourse in the form of International Depository Receipts, the Over The Counter, or OTC,
market in Berlin and Stuttgart and the Regulated Unofficial Market on the Frankfurt Stock Exchange.

Our registered office and business address is 1

Floor, Building 1, Quadrum Office Park, 50 Constantia Boulevard,

Constantia Kloof Ext. 28, Roodepoort, South Africa. The postal address is P.O. Box 390, Maraisburg 1700, South Africa. Our
telephone number is (+27 11) 470-2600 and our facsimile number is (+27 11) 470-2618. We are registered under the South African
Companies Act, 1973 (as amended) under registration number 1895/000926/06. For our ADSs, The Bank of New York, at 101
Barclay Street, New York, NY 10286, United States, has been appointed as agent.

South African Operations

• Blyvoor, acquired on September 15, 1997, in exchange for 12,693,279 of our ordinary shares, is a predominantly

underground operating mine located within the Witwatersrand Basin, exploiting gently to moderately dipping gold bearing
quartz pebble conglomerates in addition to certain surface sources.

• Crown, acquired on September 14, 1998, in exchange for 5,925,139 of our ordinary shares, also located within the

Witwatersrand Basin, exploits various surface sources, including sand and slime tailings deposited as part of previous
mining operations.

• ERPM which consists of an underground mine and the Cason Dump surface retreatment operation was acquired on

October 10, 2002, by Crown. Underground mining at ERPM was halted in October 2008.

• Ergo was formed in June 2007 to explore and evaluate the possibility of processing up to 1.7 billion tons of gold, uranium

and sulphur-bearing tailings on the East and Central Rand goldfields of South Africa. Initially established as a 50:50 joint
venture with Mintails SA (Pty) Limited, or Mintails SA, a subsidiary of Mintails Limited of Australia, DRDGOLD acquired
the remaining 50% interest owned by Mintails SA in the Ergo JV on January 21, 2010. Ergo Phase 1, to recover and treat
over a period of 12 years, approximately 180 Mt of gold bearing surface tailings contained in the Elsburg tailings complex
was established under the Elsburg Gold Mining Joint Venture, or ErgoGold. On March 31, 2009, DRDGOLD obtained
control over ErgoGold, which was also formerly a 50:50 joint venture with Mintails SA.

Australasian Operations (discontinued operations)

• Tolukuma (various stakes acquired between September 1999 to June 2001, in exchange for a total of 8,125,082 shares and

$3.3 million in cash), an underground mine in Papua New Guinea (PNG), provided an initial base in the Australasian region
and led to the acquisition of a 20% interest in the unincorporated Porgera Joint Venture.

On September 10, 2007, Emperor Mines Limited, or Emperor, which held a 100% interest in Tolukuma announced its

intention to divest the Tolukuma gold mine. On October 22, 2007, we sold our entire interest in Emperor.

Important Events in Our Development Generally and in the Current Year

Top Star Dump

On August 28, 2006, we concluded an agreement with AngloGold Ashanti Limited, or AngloGold Ashanti, to purchase the

remaining extent of Erf 1 Park Central Township, better known as “The Top Star Dump”, in central Johannesburg for an amount of
R8.0 million. A further R28.4 million was spent on the infrastructure required to process the dump. The Top Star Dump was
evaluated geostatistically by us and reviewed independently by Coffey Mining (an exploration, mining and resource consulting
firm) and had a probable reserve of 5.2 Mt, at a grade of 0.775 g/t.

On August 30, 2006, the Provincial Heritage Resources Authority of Gauteng, or PHRAG, published a notice in the

Gauteng Provincial Gazette in terms of which the dump was provisionally protected for a period of two years. We lodged an appeal
against the decision to issue the protection order, and on October 30, 2007 the PHRAG withdrew the protection order.

On August 21, 2008 a Mining Right was granted for gold recovery over the Top Star Dump, in favor of Crown by the

Department of Mineral Resources with effect from August 21, 2008. The mining right for the Top Star Dump has been granted
until August 20, 2013.

Ergo (consisting of ErgoGold and the Ergo JV)

On June 7, 2007, we and Mintails announced the formation of Ergo, a joint venture between Mintails SA and DRDGOLD

SA. Following discussions initiated in the first quarter of 2007, the joint venture parties agreed to pursue a strategy to consolidate
certain of their assets on the East Rand. Mintails SA contributed one fully refurbished carbon-in-leach, or CIL, circuit at the Brakpan
plant and DRDGOLD SA contributed the Elsburg tailings complex, comprising approximately 180 Mt of tailings. This part of the
project, previously referred to as Ergo Phase 1, was subsequently established under the Elsburg Gold Mining Joint Venture, or
ErgoGold. Mintails SA and DRDGOLD SA, through their subsidiaries, initially owned 50% each of ErgoGold and the Ergo JV.

On August 6, 2007, the joint venture parties entered into a sale of assets agreement with AngloGold Ashanti pursuant to

which it acquired the remaining moveable and immovable assets of the Ergo plant for a consideration of R42.8 million. These assets
will be operated by Ergo for its own account, under the AngloGold Ashanti authorizations, until new order mining rights have been
obtained. These assets consist of servitudes (access agreements), infrastructure, piping, equipment, old order mining rights and the
right to an additional 15 Mt of tailings material.

On November 26, 2007, we announced that DRDGOLD SA signed a binding term sheet with Mintails SA, which provided

for significant expansion of the joint venture through:

• the planned refurbishment of all infrastructure at the Brakpan plant, to increase capacity from one CIL gold recovery circuit

to a plant capable of processing tailings for the recovery of gold, uranium and sulphuric acid; and

• substantially increasing available tailings material from 180 Mt to up to 1,700 Mt, by securing rights over tailings dumps

and slimes dams in the region.

Additional agreements were concluded on November 14, 2007 for:

• the acquisition by Ergo of additional tailings properties and the Withok deposition complex from AngloGold Ashanti for a

payment of R45.0 million and assumption of rehabilitation obligations; and

• the acquisition by Mintails SA of an option to acquire tailings properties (the Grootvlei Properties), comprising some

105 Mt, from Pamodzi Gold Limited. The Grootvlei properties formed part of the Mintails SA contribution to the expanded
Ergo JV.

Ergo Phase 1 (ErgoGold) involved the refurbishment of one CIL circuit at the Brakpan plant with the capacity to treat an

estimated 15Mt of tailings a year, for the recovery of approximately 75,000 ounces of gold a year. Ergo Phase 2 includes the
expansion of the gold plant by refurbishing the second CIL circuit and developing uranium and acid plants. Ergo is managed by
Crown.

On September 29, 2008, DRDGOLD SA acquired a further 15% interest in ErgoGold from Mintails SA resulting in

DRDGOLD SA, which holds its interest through its subsidiary, ERPM, holding a 65% interest and Mintails SA a 35% interest in
the joint venture. On December 8, 2008, DRDGOLD agreed to acquire Mintails SA's remaining interest in ErgoGold, as well as
all of the shareholder’s loans owed by ErgoGold to the Mintails group. The acquisition, which was completed on March 31, 2009,
resulted in the Group acquiring 100% of ErgoGold. The purchase consideration was paid in cash and amounted to R100.0 million
for the 15% interest and R177.0 million for the 35% interest.

On January 21, 2010, DRDGOLD SA through its subsidiary ERPM, acquired the remaining 50% interest in the Ergo JV

from Mintails SA for a total consideration of R82.1 million, consisting of R62.1 million in cash and payment of the balance of
R20.0 million with DRDGOLD’s shares in Witfontein Mining (Pty) Limited. The transaction was completed April 15, 2010 and
recorded in the financial statements effective May 1, 2010.

DRDGOLD treats ErgoGold and the Ergo JV as one operating segment, called Ergo, and includes their respective

financial results within its Annual Report in accordance with IFRS 8 (Operating Segments). Furthermore, the company’s
management believes it is appropriate to present ErgoGold and the Ergo JV together in this discussion as they share the same
infrastructure, human resources and mineable material, with ErgoGold being focused on the extraction of gold from the re-
treatment of the Elsburg and Benoni deposition sites, and the Ergo JV being an exploration project focused on the extraction of
uranium and further gold from a range of deposition sites (including the Elsburg and Benoni sites).

Emperor

On July 27, 2007, DRDGOLD shareholders at a general meeting approved the disposal by Emperor of its 20% interest in

the Porgera Joint Venture to a subsidiary of Barrick for a purchase consideration of $250.0 million and the grant of an option to
Barrick or its nominee to subscribe for 153,325,943 shares in Emperor. Emperor shareholders also approved the disposal and a capital
distribution of A$0.05 per Emperor share to Emperor shareholders by way of a capital return out of the surplus cash realized from the
disposal, at a general meeting held on July 30, 2007. The sale transaction was completed on August 17, 2007, for a final cash
consideration of R1.9 billion ($255.0 million), which included interest, and subsequently Emperor retired all its debt facilities. The
capital distribution was completed on September 3, 2007.

On October 22, 2007, we sold our entire interest in Emperor for R355.8 million (A$55.9 million) to 26 institutional

investors with each acquiring between 0.4% and 21.6% of the shares.

ERPM

On October 6, 2008 we ceased pumping at ERPM’s South West Vertical Shaft for safety reasons following the death of two

employees underground. Post mortems suggested that the two men, who had been conducting routine water level measurements, died
of asphyxiation. The South West Vertical Shaft had been used only for water pumping purposes for several years.

The Department of Mineral Resources issued a Section 54 notice under the Mine Health and Safety Act, subjecting access

into the area to certain restrictions and conditions relating to ventilation. On October 23, 2008, drilling and blasting operations were
suspended in all shafts after the cessation of pumping of underground water at South West Vertical shaft on October 6, 2008 for
safety reasons.

On November 19, 2008, we announced our intention to place on care and maintenance the underground operations of

ERPM, and to proceed with a consultation process in terms of Section 189A of the Labour Relations Act to determine the future
of the mine’s 1,700 employees. The consultation process was completed on January 20, 2009 and 1,335 employees were
retrenched. On August 20, 2009, we discontinued care and maintenance and closed the underground operations.

Blyvoor

On November 9, 2009, we announced that, in a bid to save our Blyvoor mine from liquidation, we intended applying to the

High Court of South Africa for a provisional judicial management order over the operation. A provisional judicial management order
was granted by the High Court of South Africa on November 10, 2009.

The application, in terms of the provisions of Section 427 of the South African Companies Act, was prompted by Blyvoor’s

inability to continue to sustain losses incurred since April 2009, which were brought about by the following circumstances:

• a drop in the rand gold price received between April 1, 2009 and September 30, 2009, due to the strengthening of the

Rand against the US dollar;

• extensive damage caused during May 2009 to higher-grade underground production areas at Blyvoor’s No. 5 Shaft by

seismic activity, restoration of which was expected to take until March 2010 to complete;

• power utility Eskom’s higher winter tariffs, compounded by a 32% price increase effective from July 1, 2009, and the

likelihood of further increases in coming months; and

• the wage strike by the National Union of Mineworkers, which lasted for almost a month and resulted in the loss of

approximately 8,000 ounces of production.

In terms of a provisional judicial management order, the court appoints a judicial manager who has a wide range of powers

On April 13, 2010, DRDGOLD announced that the High Court of South Africa had agreed to lift, with immediate effect,

the provisional judicial management order in place since November 10, 2009. The Company’s application to the court for the

lifting of the provisional judicial management order, pointed out that for the period from November 2009 to February 2010,
Blyvoor had traded at an unaudited profit of R33.6 million, the amount owed to trade creditors at the time when the provisional
judicial management order was granted had been reduced from R39 million to R2.17 million, monthly production of gold had
increased from 8,745 ounces to 10,127 ounces and the gold price had increased from R240,000/kg to R265,000/kg.

On December 2, 2009, DRDGOLD announced a proposed transaction to sell 60% of Blyvoor to Aurora Empowerment

Systems (Pty) Limited, or Aurora, for R295 million. On April 1, 2010, the proposed transaction was cancelled by mutual
agreement between DRDGOLD and Aurora.

Other

We concluded an agreement with M5 Developments (Pty) Limited, or M5, on July 21, 2005, under which M5, against

payment of a non-refundable fee of R1.5 million, was granted an option to acquire Durban Deep’s mine village for R15.0 million. On
the exercise of the option, the option fee would be deemed part payment of the purchase consideration.

On November 18, 2005, M5 exercised the option and provided a guarantee for payment. Prior to the registration of

transfer occurring, we were notified by Rand Leases Properties Limited (formerly JCI Properties Limited) of an alleged pre-
emptive right in respect of the property in terms of an agreement dated December 1996, pursuant to which the property should be
first offered to be sold to them on similar terms. We subsequently repudiated our agreement with M5 and notified Rand Leases
Properties Limited that we did not intend offering the property to them. Both parties indicated to us their intentions to institute
legal proceedings for the sale and transfer of the property. On December 12, 2006, Rand Leases Properties Limited issued a
summons against us and we filed an appearance to defend. A trial date was allocated by the High Court of South Africa for
April 25, 2008; however the trial date has been postponed and the parties have suspended the pleadings with the possibility of
pursuing a settlement of the case.

On September 17, 2008, our wholly-owned subsidiary, DRD (Offshore) Limited, sold all of its shares in G.M. Network

Limited, or GoldMoney, to other GoldMoney shareholders. The cash consideration in respect of the disposal amounted to
R23.8 million ($2.9 million). GoldMoney is a company that holds the rights, patents and other intellectual property of
GoldMoney.com, which is a product specializing in digital gold currency. We previously held a 50.25% shareholding in Net-Gold
Services Limited, which was converted on March 30, 2008, into a 12.3% shareholding in GoldMoney.

In January 2009 we completed the acquisition of 28.33% of the shares in West Wits SA (Pty) Limited a subsidiary of

West Wits Mining Limited, an Australian based listed company. The formation of the company was to explore, evaluate and
potentially extract gold and uranium from the West Rand Goldfield of South Africa's Witwatersrand Basin.

On December 9, 2008, Argonaut Financial Services (Pty) Ltd, Mintails SA (Pty) Ltd and Witfontein Mining (Pty) Ltd,

entered into a share purchase agreement (SPA) which resulted in Argonaut Financial Services (Pty) Limited (a wholly owned
subsidiary of DRDGOLD) and Mintails SA each owning 50% of the shareholding of Witfontein as well as being authorized to
each appoint 50% of the board. Previously Mintails SA owned 100% of the issued share capital of Witfontein. Witfontein is to be
used as a future deposition establishment facility (i.e. slime deposition). On January 21, 2010, the Company entered into an
agreement to sell its interest in Witfontein Mining (Pty) Limited to Mintails SA for R20 million and regulatory approval was
obtained on April 15, 2010. The R20 million consideration was set off the acquisition price for the remaining 50% in the Ergo JV.

On July 22, 2009, the Company announced the rejection by the Mintails board of the offer by DRDGOLD SA to

purchase the South African business assets of Mintails after its announcement dated June 29, 2009, which set out information
relating to Mintails having conditionally accepted an offer by DRDGOLD SA, to acquire all of its South African business assets,
excluding its interest in West Wits Mining Limited.

On June 30, 2010, DRDGOLD signed a heads of agreement with the JSE listed White Water Resources Limited, or

White Water, according to which White Water would acquire from ERPM, for the amount of R18.5 million, the prospecting right
over ERPM Extensions 1 and 2 and the mining right over ERPM Extension 1. ERPM`s mining right application over Extension 1
is pending. Both extensions are contiguous to the ERPM lease area. The purchase consideration would be settled through the issue
of 74 million ordinary shares in White Water and 26 shares in a special purpose vehicle to be created which would hold the assets
acquired by White Water from ERPM. In the event that the Department of Mineral Resources did not approve the transfer of one
or more of the prospecting or mining rights the consideration would be reduced to R9.3 million to be settled through the issue of
37 million ordinary shares in White Water and 26 ordinary shares in the special purpose vehicle to ERPM. The transaction was
subject to the successful conclusion of various conditions precedent, including approval of the transaction by White Water
shareholders and the DRDGOLD board of directors. On September 7, 2010 negotiations were terminated due to the non-
fulfillment of conditions precedent.

For further information on other capital investments, divestures, capital expenditure and capital commitments, see Item 4D.:

“Property, Plant and Equipment,” and Item 5B.: “Liquidity and Capital Resources.”

4B. BUSINESS OVERVIEW

Description of Our Mining Business

Exploration

Exploration activities are focused on the extension of existing ore bodies and identification of new ore bodies both at

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

Mining

Our operations comprise relatively mature assets and the principal mining method used is the extraction of previously

abandoned Ore Reserves, which require a high degree of opening up and retreatment of these previously abandoned Ore Reserves.

Our Metallurgical Plants and Processes

A detailed review of the metallurgical plants and processes for each of the mining operations is provided under Item 4D:

“Property, Plant and Equipment.”

Market

The gold market is relatively liquid compared to other commodity markets, with the price of gold generally quoted in

dollars. Physical demand for gold is primarily for manufacturing purposes, and gold is traded on a world-wide basis. Refined gold has
a variety of uses, including jewelry, electronics, dentistry, decorations, medals and official coins. In addition, central banks, financial
institutions and private individuals buy, sell and hold gold bullion as an investment and as a store of value (due to the tendency of
gold to retain its value in relative terms against basic goods and in times of inflation and monetary crises).

The use of gold as a store of value and the large quantities of gold held for this purpose in relation to annual mine production

have meant that historically the potential total supply of gold has been far greater than demand. Thus, while current supply and
demand play some part in determining the price of gold, this does not occur to the same extent as in the case of other commodities.
Instead, the gold price has from time to time been significantly affected by macro-economic factors such as expectations of inflation,
interest rates, exchange rates, changes in reserve policy by central banks, and global or regional political and economic crises. In
times of inflation and currency devaluation, gold is often seen as a safe haven, leading to increased purchases of gold and support for
its price.

The gold market was strong but remained volatile in fiscal 2010, trading between a low of $909 per ounce and a high of

$1,261 per ounce. The average spot price was 25% higher than in the previous fiscal year, at $1,092 per ounce. Amid continuing
global economic uncertainty, investors turned once more to gold (notably to safe-haven products such as Exchange Traded Funds)
and this, together with more de-hedging activity and a slowdown in new mine supply, particularly from South Africa, saw demand
exceed supply. The average gold price received by us for the year was R267,292 per kilogram which was 7% higher than the
previous year at R250,589 per kilogram.

Looking ahead, we believe that the global economic environment, including economic uncertainty and other factors, will

continue to make gold attractive to investors. The supply side shortfall is likely to continue because of circumstances including
operational challenges and delays in opening new mines and the challenge, particularly to South African producers such as ourselves,
of maintaining profitable production in the face of increasing mining depths and rising costs.

Our total revenue by geographic market was as follows:

Year ended June 30,

2010

2009 2008

R’000

R’000 R’000

South Africa...............................................................................................

1,990,522

1,910,738 1,843,912

Australasia .................................................................................................

- 89,235

1,990,522

1,910,738 1,933,147

All gold produced by our South African Operations is sold on our behalf by Rand Refinery Limited, or RRL, in accordance

with a refining agreement entered into in October 2001. At our various operations the gold bars which are produced consist of
approximately 85% gold, 7-8% silver and the balance comprises copper and other common elements. The gold bars are sent to RRL
for assaying and final refining where the gold is purified to 99.9% and cast into troy ounce bars of varying weights. RRL then usually
sells the gold on the same day as delivery, for the London afternoon fixed Dollar price, with the proceeds remitted to us in rand
within two days. In exchange for this service, we pay RRL a variable refining fee plus fixed marketing, loan and administration fees.
We currently own 4.0% (Fiscal 2009: 4.0%) of RRL (which is jointly owned by South African mining companies). Mr. T.J. Gwebu
our Executive Officer Compliance, is a director of RRL and Mr. D.J. Pretorius, our Chief Executive Officer, is an alternate director of
RRL.

Ore Reserves

The tables below set out the Proven and Probable Ore Reserves that are the Group’s Ore Reserves as of June 30, 2010,

and 2009, in both imperial and metric units. Our Ore Reserves are comprised of our attributable Ore Reserves.

Ore Reserve estimates in this Annual Report are reported in accordance with the requirements of the SEC’s Industry

Guide 7. Accordingly, as of the date of reporting, all reserves are planned to be mined out under the life of mine business plans
within the period of our existing rights to mine, or within the time period of assured renewal periods of our rights to mine. In
addition, as of the date of reporting, all reserves are covered by required permits and governmental approvals. See Item 4D.:
“Property, Plant and Equipment” for a description of the rights in relation to each mine.

In South Africa, we are legally required to publicly report Ore Reserves and Mineral Resources in compliance with the

South African Code for the Reporting of Mineral Resources and Ore Reserves, or SAMREC Code. The SEC’s Industry Guide 7
does not recognize Mineral Resources. Accordingly, we do not include estimates of Mineral Resources in this Annual Report.

Ore Reserve calculations are subject to a review conducted in accordance with SEC Industry Guide 7. Components of the

calculations included in the geological models and input parameters of the reserve estimation procedures, were checked. In
addition, visual inspection of the planning to deliver an individual block to the metallurgical plant, and the recovery, and
deposition of the tailings, took place. A check is also made of the financial input into the costs and revenue to affirm that they are
within reasonable limits.

The Ore Reserves are inclusive of diluting materials and allow for losses that may occur when the material is mined. Ore

Reserve tons, grade and content are quoted as delivered to the gold plant. There are two types of methods available to select ore for
mining. The first is pay-limit, which includes cash costs, including overhead costs, to calculate the pay-limit grade. The second is the
cut-off grade which includes cash costs, excluding fixed overhead costs, to calculate the cut-off grade, resulting in a lower figure than
the full pay-limit grade. The cut-off grade is based upon direct costs from the mining plan, taking into consideration production
levels, production efficiencies and the expected costs. We use the pay-limit to determine which areas to mine, as an overhead
inclusive amount that is indicative of the break-even position, especially for marginal mining operations.

The pay-limit approach is based on the minimum in-situ grade of ore blocks, for which the production costs, which includes

all overhead costs, including head office charges, are equal to a three-year historical average gold price per ounce for that year. This
calculation also considers the previous three years’ mining and milling efficiencies, which includes metallurgical and other mining
factors and the production plan for the next twelve months. Only blocks above the pay-limit grade are considered for mining. The
pay-limit grade is higher than the cut-off grade, because this includes overhead costs, which indicates the break-even position of the
operation, especially significant for marginal mines.

When delineating the economic limits to the ore bodies, we adhere to the following guidelines:

• The potential ore to be mined is well defined by an externally verified and approved geological model created using our

mining software;

• The potential ore, which is legally allowed to be mined, is also confined by the mine's lease boundaries; and

• A full life of mine business plan (physical 5 year plan) is constructed to mine the ore from existing infrastructure.

Our Ore Reserves figures are estimates, which may not reflect actual reserves or future production. We have prepared these

figures in accordance with industry practice, converting mineral deposits to an Ore Reserve through the preparation of a mining plan.
The Ore Reserve estimates contained herein inherently include a degree of uncertainty and depend to some extent on statistical
inferences which may ultimately prove to have been unreliable.

Reserve estimates require revisions based on actual production experience or new information. Should we encounter

mineralization or formations different from those predicted by past drilling, sampling and similar examinations, reserve estimates
may have to be adjusted and mining plans may have to be altered in a way that might adversely affect our operations. Moreover, if
the price of gold declines, or stabilizes at a price that is lower than recent levels, or if our production costs increase or recovery rates
decrease, it may become uneconomical to recover Ore Reserves containing relatively lower grades of mineralization.

Our Ore Reserves are prepared using three year average gold prices at the time of reserve determination. In light of the

significant increase in gold prices, since fiscal 2006 the Company prepares its life of mine business plans using the prevailing gold
price at the time of the reserve determination, which is at the end of the fiscal year.

Gold prices and exchange rates used for Ore Reserves and for our business plan are outlined in the following table.

2010 2009

Three-year average Business Plan Three-year average Business Plan

Reserve gold price –$/oz

926

1,244

778

885

Reserve gold price –R/kg

236,752

306,081

199,331

241,834

Exchange rate –R/$

7.95

7.65

7.97

8.50

In fiscal 2010, our attributable Ore Reserves increased by 15% from 5.2 million ounces at June 30, 2009, to 6.0 million

ounces at June 30, 2010, primarily as a consequence of the higher gold price.

Based on the life of mine business plans, the life of mine for each of our operations at June 30, 2010, were as follows:

Underground Surface
Mine 2010 2009 2010 2009
Blyvoor ......................................................

20 years

3 years

5 years

Crown ........................................................

Not applicable

14 years

8 years

Ergo............................................................

Not applicable

12 years

Our Ore Reserves as of June 30, 2010 and 2009 are set forth in the table below.

Ore Reserves: Imperial

At June 30, 2010

At June 30, 2009

Proven Ore Reserves

Probable Ore Reserves

Proven Ore Reserves

Probable Ore Reserves

Tons

Grade

Gold

Content

Tons

Grade

Gold

Content

Tons

Grade

Gold

Content

Tons

Grade

Gold

Content

(mill)

(oz/ton)

('000 ozs)

(mill)

(oz/ton) ('000 ozs) (mill) (oz/ton)

('000 ozs)

(mill)

(oz/ton) ('000 ozs)

Blyvoor

Underground .......................................................

16.83 0.18 3,075

4.40 0.17 769

12.50 0.22 2,721 2.91 0.21

622

Surface ................................................................

4.98 0.03

129 -

7.17

0.02 176 -

Total

Blyvoor .....................................................

21.81 0.15 3,204

4.40 0.17 769

19.67 0.15 2,897 2.91 0.21

622

Crown

1 2

Surface ................................................................

18.74 0.02

293

50.64 0.01 565

13.45 0.02

242 12.08 0.01

168

Total

Crown.......................................................

18.74 0.02

293

50.64 0.01 565

13.45 0.02

242 12.08 0.01

168

Ergo

Surface ................................................................ 139.44 0.01 1,196 -

149.17

0.01 1,291 -

Total

Ergo .......................................................... 139.44 0.01 1,196 -

149.17

0.01 1,291 -

Total Group

Underground .......................................................

16.83 0.18 3,075

4.40 0.17 769

12.50 0.22 2,721 2.91 0.21

622

Surface ................................................................ 163.16 0.01 1,618

50.64 0.01 565

169.80 0.01 1,709 12.08 0.01

168

Total

...................................................................... 179.99 0.03 4,693

55.04 0.02 1,334

182.30 0.02 4,430 14.99 0.05

790

Proven and Probable Ore reserves for fiscal 2010 and 2009 reflect our attributable 74% interest in Blyvoor, Crown and Ergo.

Crown’s Ore reserves include the Cason Dump which is being processed by Crown, however the mining right for the Cason Dump is owned by ERPM. Fiscal 2009 has been restated.

Ergo’s Ore reserves include the Elsburg and Benoni tailings complexes which are being processed by Ergo, however the mining rights for these tailings are owned by ERPM. Fiscal 2009 has been restated.

The Ore reserves listed in the above table are estimates of what can be legally and economically recovered from operations, and, as stated, are estimates of mill delivered in tons.

Ore Reserves: Metric

At June 30, 2010

At June 30, 2009

Proven Ore Reserves

Probable Ore Reserves

Proven Ore Reserves

Probable Ore Reserves

Tonnes Grade

Gold

Content Tonnes Grade

Gold

Content Tonnes Grade

Gold

Content Tonnes

Grade

Gold

Content

(mill) (g/tonne) (tonnes) (mill) (g/tonne) (tonnes) (mill) (g/tonne) (tonnes)

(mill)

(g/tonne)

(tonnes)

Blyvoor

Underground ........................................................

15.27 6.26 95.63

3.99 5.99 23.91

11.34

7.46

84.63

2.64

7.33

19.36

Surface .................................................................

4.52 0.88 4.00 -

6.51

0.84

5.47

Total Blyvoor......................................................

19.79 5.03 99.63

3.99 5.99 23.91

17.85

5.05

90.10

2.64

7.33

19.36

Crown

Surface ................................................................

17.00 0.54 9.11

45.94 0.38 17.56

12.20 0.62 7.52

10.96 0.48 5.22

Total

Crown.......................................................

17.00 0.54 9.11

45.94 0.38 17.56

12.20 0.62 7.52

10.96 0.48 5.22

Ergo

Underground ........................................................

- - -

Surface ................................................................ 126.50 0.29 37.19 -

135.33 0.30

40.15 -

Total

Ergo........................................................... 126.50 0.29 37.19 -

135.33 0.30

40.15 -

Total Group

Underground ........................................................

15.27 6.26 95.63

3.99 5.99 23.91

11.34 7.46

84.63

2.64 7.33

19.36

Surface ................................................................. 148.02 0.34 50.30

45.94 0.38 17.56

154.04 0.35

53.14

10.96 0.48 5.22

Total

...................................................................... 163.29 0.89 145.93

49.93 0.83 41.47

165.38 0.83

137.77

13.60 1.81

24.58

Proven and Probable Ore reserves for fiscal 2010 and 2009 reflect our attributable 74% interest in Blyvoor, Crown and Ergo.

Crown’s Ore reserves include the Cason Dump which is being processed by Crown, however the mining right for the Cason Dump is owned by ERPM. Fiscal 2009 has been restated

Ergo’s Ore reserves include the Elsburg and Benoni tailings complexes which are being processed by Ergo, however the mining rights for these tailings are owned by ERPM Fiscal 2009 has been restated

The Ore reserves listed in the above table are estimates of what can be legally and economically recovered from operations, and, as stated, are estimates of mill delivered in tons.

The measurement and classification of our Proven and Probable Ore Reserves are sensitive to the fluctuation of the gold

price. If we had used different gold prices than the three-year average prices at the time of reserve determination as of June 30, 2010,
2009 and 2008 respectively, we would have had significantly different reserves as of those dates. Using the same methodology and
assumptions as were used to estimate Ore Reserves but with different gold prices, our attributable Ore Reserves as of June 30, 2010,
2009 and 2008 would be as follows:

Year ended June 30, 2010

Three-year

average price

Business Plan

at prevailing

price

10% Below

prevailing

price

10% Above

prevailing

price

Rand gold price per kilogram............................................

236,752 306,081 275,473 336,689

Dollar gold price per ounce...............................................

926 1,244 1,120 1,368

Attributable ore reserves (million ounces) ........................

6.0

7.3

6.8

7.8

Year ended June 30, 2009

Three-year

average price

Business Plan

at prevailing

price

10% Below

prevailing

price

10% Above

prevailing

price

Rand gold price per kilogram............................................

199,331 241,834 217,651 266,017

Dollar gold price per ounce...............................................

778 885 796 973

Attributable ore reserves (million ounces) ........................

5.2

6.1

5.6

6.4

Year ended June 30, 2008

Three-year

average price

Business Plan

at prevailing

price

10% Below

prevailing

price

10% Above

prevailing

price

Rand gold price per kilogram............................................

150,622 208,287 187,458 229,115

Dollar gold price per ounce...............................................

664 853 768 938

Attributable ore reserves (million ounces) ........................

4.5

7.9

7.4

8.4

The approximate mining recovery factors for the 2010 ore reserves shown in the above table are as follows:

Underground Surface

Mine

Dilution

(Sundries,

Shortfall and

Development)

(%)

Mine Call Factor

(%)

Metallurgical and

recovery factor

(%)

Mine Call Factor

(%)

Metallurgical and

recovery factor

(%)

Blyvoor .......................

23.8 81.9 93.2 100.0 44.4

Crown .........................

Not applicable

Not applicable Not applicable

100.0

64.0

Ergo.............................

Not applicable

Not applicable Not applicable

100.0

43.0

The approximate mining recovery factors for the 2009 ore reserves shown in the above table are as follows:

Underground Surface

Mine

Dilution

(Sundries,

Shortfall and

Development)

(%)

Mine Call Factor

(%)

Metallurgical and

recovery factor

(%)

Mine Call Factor

(%)

Metallurgical and

recovery factor

(%)

Blyvoor .......................

22.8 78.7 94.0 100.0 48.3

Crown .........................

Not applicable

Not applicable Not applicable

100.0

64.0

Ergo.............................

Not applicable

Not applicable Not applicable

100.0

43.0

The following table shows the average drill/sample spacing (rounded to the nearest foot), as at June 30, 2010, for each

category of Ore Reserves at our mines calculated based on a three year average dollar price of gold.

Mine

Proven

Reserves

Probable

Reserves

Blyvoor................................................................................................................... 16 ft. by 24 ft.

Nil

Crown..................................................................................................................... 328 ft. by 328 ft.

328 ft. by 328 ft.

Ergo ........................................................................................................................ 328 ft. by 328 ft.

Nil

The pay-limit grades based on the three year average dollar price for gold and costs used to determine reserves as of June 30,

2010, are as follows:

Underground Surface

Mine

Pay-limit grade

(g/t)

Costs used to

determine pay-

limit grade

(R/t)

Pay-limit grade

(g/t)

Costs used to

determine pay-

limit grade (R/t)

Blyvoor ......................................................................

9.26 1,298.59

0.24

25.10

Crown ........................................................................

Not applicable

0.32

55.00

Ergo............................................................................

Not applicable

0.19

23.14

The pay-limit grades and costs used to determine reserves as of June 30, 2009, are as follows:

Underground Surface

Mine

Pay-limit grade

(g/t)

Costs used to

determine pay-

limit grade

(R/t)

Pay-limit grade

(g/t)

Costs used to

determine pay-

limit grade (R/t)

Blyvoor ......................................................................

10.36 1,199.59

0.26

25.40

Crown ........................................................................

Not applicable

0.43

74.26

Ergo............................................................................

Not applicable

0.29

34.00

We apply the pay-limit approach to the mineralized material database of our various shafts or business units in order to

determine the tonnage and grade available for mining.

Governmental regulations and their effects on our business

South Africa

Common Law Mineral Rights and Statutory Mining Rights

Prior to the introduction of the MPRD Act in 2002, private ownership in mineral rights and statutory mining rights in South

Africa could be acquired through the common law or by statute. Under the old regime, the term freehold title refers to a right of
ownership of land and the surface thereof and the term “mining title” refers to a right of ownership of the minerals below the surface
or the right to mine such minerals. With effect from May 1, 2004, all minerals have been placed under the custodianship of the South
African government under the provisions of the MPRD Act, and old order proprietary rights need to be converted to new order rights
of use within certain prescribed periods, as dealt with in more detail below.

Old Order Rights - Mining Authorizations

Holders of mining authorizations issued under the previous regime were given an opportunity to apply for conversion

thereof until May 1, 2009. No person or mining entity may prospect or mine for minerals without being granted a prospecting or
mining authorization. Prior to granting a prospecting or mining authorization, two requirements had to be fulfilled. First, the mining
entity must either be the registered holder of the mineral rights or have obtained the written consent of the registered holder of the
mineral rights to mine the minerals concerned for its own account. Second, the Department of Mineral Resources (formerly
Department of Minerals and Energy), or the DMR, must be satisfied with the scale, manner and duration of the intended prospecting
or mining operations and must approve an Environmental Management Program, or EMP. A prospecting permit was issued for a
limited period but could be renewed on application. A mining license was generally issued until such time that the minerals could no
longer be mined in an economically viable manner. The rights enjoyed under these authorities will endure until they are converted
within the period of time prescribed in the MPRD Act. Thereafter, such rights will lapse.

Conversion of Rights under the Mineral and Petroleum Resources Development Act, 2002

Existing common law prospecting, mining and mineral rights, or old order rights, need to be converted into new order rights

in order to ensure exclusive access to the mineral for which rights existed at the time of the enactment of the MPRD Act.

In respect of used old order mining rights, the DMR is obliged to convert the rights if the applicant complies with certain

statutory criteria. These include the submission of a mining works program, demonstrable technical and financial capability to give
effect to the program, provision for environmental management and rehabilitation, and compliance with certain black economic
empowerment criteria and the social and labor plan. These applications had to be submitted within five years after the promulgation
of the MPRD Act on May 1, 2004. Similar procedures apply where we hold prospecting rights and a prospecting permit and conduct

prospecting operations. Where we hold unused old order rights however, the application for conversion to mining or prospecting
rights had to be submitted within one year from May 1, 2004. The requirements for unused old order rights are more stringent than
for used old order rights, particularly insofar as the percentage of ownership from historically disadvantaged groups is concerned.
Under the MRPD Act, mining rights are not perpetual, but endure for a maximum of thirty years, after which they may be renewed
for a further thirty years. Prospecting rights are limited to five years, with one renewal of three years. Applications for conversion of
our mining rights have been submitted to the DMR and approval is awaited. During this period, we are permitted to continue to
operate under the terms and conditions of the old order rights which we hold.

If any of our applications for conversion are refused, a claim for compensation, based on expropriation may be lodged

against the State. The DMR may attach specific conditions and limitations to the exercise of new order rights. It may, for example,
reduce the area over which the new order right applies, if it is of the view that the prospecting or mining works programs submitted
by an applicant do not justify the extent of the area covered by the old order right. They may also be suspended or cancelled by the
Minister of Mineral Resources in the event of a breach or, in the case of mining rights, of non-optimal mining in accordance with the
mining works program.

Mining royalties

Royalties from mining activities became payable to the state, as from March 1, 2010, under provisions contained in the

Mineral and Petroleum Resources Royalty Bill, or the Royalty Bill. The Royalty Bill was promulgated by government on
August 14, 2008. The most significant feature of the Royalty Bill is that the royalty is to be determined in accordance with a
formula based system and no longer to be a predetermined specific rate for the different types of minerals. The royalty will be
deductible for normal income tax purposes.

The Royalty Bill defines the tax base as gross sales excluding the transportation and handling costs of the final product.

The final product can be either the “refined” or “unrefined” mineral depending on the nature of the mineral in question. There has
been general consensus that a formula derived mineral royalty rate regime is more equitable and provides the necessary relief for
mines during times of difficulties, e.g. low commodity prices and mines that become marginal due to low grades. The formula-
based mineral royalty rate regime also ensures that the State shares in the benefits of higher commodity prices. The State will thus
share in the downside risks, when mines become marginal, and in the upside benefits during times of high commodity prices.
Based on comments received the formulae were adjusted to take into account the capital intensive nature of certain mining
operations, especially Gold mining and Oil and Gas. The formulae use earnings before income tax, or EBIT, with 100 percent
capital expensing. Given that a distinction will be drawn between refined and unrefined minerals, the mineral royalty percentage
rates (Y%) will be based on the following formulae:

For refined minerals: Y (%) = 0.5 + [(EBIT divided by (Gross Sales multiplied by 12.5)) multiplied by 100]. This rate

will be capped at a maximum of 5.0%.

For unrefined minerals: Y (%) = 0.5 + [(EBIT divided by (Gross Sales multiplied by 9.0)) multiplied by 100]. This rate

will be capped at a maximum of 7.0%.

For the purpose of calculating the royalty percentage rates a negative EBIT will be set equal to zero.

The Broad Based Socio-Economic Empowerment Charter

In order to promote broader based participation in mining revenue, the MPRD Act provides for a Mining Charter to be

developed by the Minister within six months of commencement of the MPRD Act, beginning May 1, 2004. The Mining Charter
came into effect in August 2004. In its current format its objectives include:

• increased direct and indirect ownership of mining entities by qualifying parties as defined in the Mining Charter;

• expansion of opportunities for persons disadvantaged by unfair discrimination under the previous political dispensation;

• expansion of the skills base of such persons, the promotion of employment and advancement of the social and economic

welfare of mining communities; and

• promotion of beneficiation.

The Mining Charter sets certain numerical and timeframe goals on equity participation by historically disadvantaged South

Africans of South African mining assets. It recommends that these are achieved by, among other methods, disposal of assets by
mining companies to historically disadvantaged persons on a willing seller, willing buyer basis at fair market value. The goals set by
the Mining Charter require each mining company to achieve 15 percent ownership by historically disadvantaged South Africans of its
South African mining assets within five years and 26 percent ownership within ten years from May 1, 2004. It also sets out guidelines
and goals in respect of employment equity at management level with a view to achieving 40 percent participation by historically
disadvantaged persons in management and ten percent participation by women in the mining industry, each within five years from
May 1, 2004. Compliance with these objectives is measured on the weighted average “scorecard” approach in accordance with a
scorecard which was first published by the government in February 2003.

We are unable to identify any permits, rights or investments which we may lose as a result of any non-compliance. The

provisions of the Mining Charter apply to each mining company individually. As transactions, to comply with the Mining Charter,
are to be at fair market value, we do not anticipate incurring any loss in fulfilling our obligations provided that we are able to identify
suitable partners that are able to obtain adequate funding.

We have achieved our commitment to ownership compliance with the MPRD Act by extending our existing black economic

empowerment structure with Khumo Gold. The new structure resulted in Khumo Gold acquiring, as a first step, a 15% interest in a
newly created vehicle, DRDGOLD SA, which holds 100% of ERPM, Crown, Blyvoor and the Ergo JV as well as 65% of ErgoGold.
Khumo Gold acquired an additional 5% interest in DRDGOLD SA with the employee trust acquiring 6% in fiscal 2007. (See Item
4A.: “History and Development of the Company”).

Mine Health and Safety Regulation

The South African Mine Health and Safety Act, 1996 (as amended), or the Mine Health and Safety Act, came into effect in

January 1997. The principal object of the Mine Health and Safety Act is to improve health and safety at South African mines and to
this end, imposes various duties on us at our mines, and grants the authorities broad powers to, among other things, close unsafe
mines and order corrective action relating to health and safety matters. In the event of any future accidents at any of our mines,
regulatory authorities could take steps which could increase our costs and/or reduce our production capacity. There are amendments
to the act currently before parliament to ratify the stopping of production and increase punitive measures including increased financial
fines and legal liability of mine management. Some of the more important new provisions in the bill as approved by the Portfolio
Committee are a new section 50(7A) that obliges an inspector to impose a prohibition on the further functioning of a site where a
person’s death, serious injury or illness to a person, or a health threatening occurrence has occurred; a new section 86A(1) creating
a new offence for any person who contravenes or fails to comply with the provisions of the Mine Health and Safety Act thereby
causing a person’s death or serious injury or illness to a person. Subsection (3) further provides that (a) the “fact that the person
issued instructions prohibiting the performance or an omission is not in itself sufficient proof that all reasonable steps were taken
to prevent the performance or omission”; and that (b) “the defense of ignorance or mistake by any person accused cannot be
permitted”; or that (c) “the defense that the death of a person, injury, illness or endangerment was caused by the performance or an
omission of any individual within the employ of the employer may not be admitted”; a new section 86A(2) creating an offence of
vicarious liability for the employer where a Chief Executive Officer, manager, agent or employee of the employer committed an
offence and the employer either connived at or permitted the performance or an omission by the Chief Executive Officer,
manager, agent or employee concerned; or did not take all reasonable steps to prevent the performance or an omission. The
maximum fines have also been increased. Any owner convicted in terms of section 86 or 86A may be sentenced to “withdrawal or
suspension of the permit” or to a fine of R3 million or a period of imprisonment not exceeding five years or to both such fine and
imprisonment, while the maximum fine for other offences and for administrative fines have all been increased, with the highest
being R1 million.

Under the South African Compensation for Occupational Injuries and Diseases Act, 1993 (as amended), or COID Act,

employers are required to contribute to a fund specifically created for the purpose of compensating employees or their dependants for
disability or death arising in the course of their work. Employees who are incapacitated in the course of their work have no claim for
compensation directly from the employer and must claim compensation from the COID Act fund. Employees are entitled to
compensation without having to prove that the injury or disease was caused by negligence on the part of the employer, although if
negligence is involved, increased compensation may be payable by this fund. The COID Act relieves employers from the prospect of
costly damages, but does not relieve employers from liability for negligent acts caused to third parties outside the scope of
employment. In fiscal 2010, we contributed approximately R10.5 million under the COID Act to a multi-employer industry fund
administered by Rand Mutual Assurance Limited.

Under the Occupational Diseases in Mines and Works Act, 1973 (as amended), or the Occupational Diseases Act, the multi-

employer fund pays compensation to employees of mines performing “risk work,” usually in circumstances where the employee is
exposed to dust, gases, vapors, chemical substances or other working conditions which are potentially harmful, or if the employee
contracts a “compensatable disease,” which includes pneumoconiosis, tuberculosis, or a permanent obstruction of the airways. No
employee is entitled to benefits under the Occupational Diseases Act for any disease for which compensation has been received or is
still to be received under the COID Act. Currently the Group is compliant with these payment requirements, which are based on a
combination of the employee costs and claims made during the fiscal year.

Uranium and radon are often encountered during the ordinary course of gold mining operations in South Africa, and present

potential risks for radiation exposure of workers at those operations and the public to radiation in the nearby vicinity. We monitor our
uranium and radon emissions and believe that we are currently in compliance with all local laws and regulations pertaining to
uranium and radon management and that we are within the current legislative exposure limits prescribed for workers and the public,
under the Nuclear Energy Act, 1999 (as amended) and Regulations from the National Nuclear Regulator.

Environmental Regulation

Managing the impact of mining on the environment is extensively regulated by statute in South Africa. Recent statutory

enactments set compliance standards both generally, in the case of the National Environmental Management Act, and in respect of
specific areas of environment impact, as in the case of the Air Quality Act 2004, the National Water Act (managing effluent), and the
Nuclear Regulator Act 1999. Liability for environmental damage is also extended beyond the corporate veil to impose personal
liability on managers and directors of mining corporations that are found to have violated applicable laws.

The impact on the environment by mining operations is extensively regulated by the MPRD Act. The MPRD Act has

onerous provisions for personal liability of directors of companies whose mining operations have an unacceptable impact on the
environment.

Under the MPRD Act, new order mining rights are not issued unless a complete environmental impact assessment is

conducted and all potentially affected parties have been given an opportunity to comment on the proposed mining. Mining companies
are also required to demonstrate both the technical and financial ability to sustain an ongoing environmental management program, or
EMP, and achieve ultimate rehabilitation, the particulars of which are to be incorporated in an EMP. This program is required to be
submitted and approved by the DMR as a prerequisite for the issue of a new order mining right. Various funding mechanisms are in
place, including trust funds and concurrent rehabilitation budgets, to fund the rehabilitation liability.

The MPRD Act imposes specific, ongoing environmental monitoring and financial reporting obligations on the holders of

mining rights.

Because of the diverse nature of our operations, ranging from underground mining to surface reclamation activities,

environmental risks vary from site to site. These risks have been addressed in EMPs which have been submitted to the DMR for
approval. In November 2006, amended EMPs to conform to the required format of the MPRD Act were submitted for all operations
in South Africa for approval. Additionally, the key environmental issues have been prioritized and are being addressed through active
management input and support as well as progress measured in terms of activity schedules and timescales determined for each
activity. Two environmental compliance assessments have been conducted at Blyvoor and Crown, which both show that these mines
are in substantial compliance with the conditions of their EMPs.

Our existing reporting and controls framework is consistent with the additional reporting and assessment requirements of the

MPRD Act.

Financial Provision for Rehabilitation

We are required to make financial provision for the cost of mine closure and post-closure rehabilitation, including

monitoring once the mining operations cease. We have funded these environmental rehabilitation costs by making contributions over
the life of the mine to environmental trust funds established for each operation. Funds are irrevocably contributed to trusts that
function under the authority of trustees that have been appointed by, and who owe a statutory duty of trust, to the Master of the High
Court of South Africa. The funds held in these trusts are invested primarily in interest bearing debt securities. As of June 30, 2010, we
held a total of R126.1 million (2009: R129.7 million) in trust, the balance held in each fund being R31.9 million (2009:
R29.8 million) for Blyvoor, R21.8 million (2009: R20.3 million) for Durban Deep, R52.3 million (2009: R44.9 million) for Crown,
R20.1 million (2009: R17.2 million) for ERPM and nil for West Wits (2009: R17.2 million). Trustee meetings are held as required,
and quarterly reports on the financial status of the funds, are submitted to our board of directors.

The financial provisions for West Wits and Durban Deep have been consolidated into a single fund. The West Wits financial

provision has been impaired as at June 30, 2010, because it will be transferred along with the rehabilitation liability over the West
Wits mining rights which have been disposed of. We address shortfalls in the funds by accruing trust investment income for the
benefit of the funds and by replenishing it with the proceeds from the sale of redundant mining equipment at the end of the life of the
mine. If any of the operations are prematurely closed, the rehabilitation funds may be insufficient to meet all the rehabilitation
obligations of those operations.

Whereas the old Minerals Act allowed for the establishment of a fully funded rehabilitation fund over the life of mine, the

MPRD Act assumes a fully compliant fund at any given time in the production life of a mine. The DMR appears to have taken a
practical approach in dealing with this change, and has indicated that the traditional ring fencing of funds may, for investment
purposes be relaxed, and that insurance instruments may also be received subject to the DMR’s consent, to make up the shortfall in
available cash funds.

The aggregate group rehabilitation, reclamation and closure cost provision was R420.6 million at June 30, 2010, compared

to R412.5 million at June 30, 2009.

4C. ORGANIZATIONAL STRUCTURE

The following chart shows our principal subsidiaries and joint venture as of September 30, 2010. All of our subsidiaries are

incorporated in South Africa. We hold the majority of the investments directly or indirectly as indicated below. Refer to Exhibit 8.1
for a list of our significant subsidiaries.

All shafts at Durban Deep have been closed.

West Wits will be used going forward to extract and dispose of underground water.

DRDGOLD Limited

DRDGOLD South African

Operations (Pty) Limited

Durban Deep

West Witswatersrand Gold

Holdings Limited

West Witwatersrand Gold

Mines Limited

Blyvooruitzicht Gold

Mining Company Limited

Crown Gold Recoveries

(Pty) Limited

East Rand Proprietary

Mines Limited

ERGO Mining (Pty)

Limited

ErgoGold (formerly Elsburg

Gold Mining Joint Venture)

74%

100%

65%

50%

35%

4D. PROPERTY, PLANT AND EQUIPMENT

DRDGOLD OPERATIONS
SEPTEMBER 30, 2010

Description of Significant Subsidiaries, Properties and Mining Operations

Witwatersrand Basin Geology

Blyvoor is predominantly an underground operating mine located within a geographical region known as the Witwatersrand

Basin, exploiting gold bearing reefs in addition to certain surface sources. Crown, ERPM and Ergo are also located within the
Witwatersrand Basin. Crown exploits various surface sources, including sand and slime tailings deposited as part of historical mining
operations. ERPM, which halted its underground mining operation in October 2008, continues as a surface operation processing sand
from the Cason Dump as part of the Crown operating segment. Ergo is a surface operation which is currently processing slime
tailings from the Elsburg tailings facility, which were historically deposited by ERPM’s underground mining operation. Our
underground operation is typical of the many gold mining operations in the area which together have produced approximately
1.5 billion ounces of gold over a period of more than 100 years.

The Witwatersrand Basin comprises a 4 mile (6 kilometers) vertical thickness of sedimentary rocks situated within the

Kaapvaal Craton, extending laterally for approximately 186 miles (299 kilometers) east-northeast and 62 miles (100 kilometers)
South-Southeast. The sedimentary rocks generally dip at shallow angles towards the center of the basin, though locally this may vary.
The Witwatersrand Basin is Achaean in age and the sedimentary rocks are considered to be approximately 2.7 to 2.8 billion years old.

Gold mineralization in the Witwatersrand Basin occurs within horizons termed reefs. These occur within seven separate

goldfields located along the eastern, northern and western margins of the basin. These goldfields are known as the Evander Goldfield,
the East Rand Goldfield, the West Rand Goldfield, the Far West Rand Goldfield, the Central Rand Goldfield, the Klerksdorp
Goldfield and the Free State Goldfield. As a result of faulting and other primary controls of mineralization, the goldfields are not
continuous and are characterized by the presence or dominance of different reef units. The reefs are generally less than 6 feet (2
meters) thick but, in certain instances, these deposits form stacked clastic wedges which are hundreds of feet thick.

The gold generally occurs in native form within the various reefs, often associated with pyrite and carbon.

Blyvoor

Overview

We own 74% of the Blyvooruitzicht Gold Mining Company Limited, (through our 74% holding in DRDGOLD SA), which

in turn owns 100% of the Doornfontein Gold Mining Company Limited. The consolidated mining operation, referred to as Blyvoor,
consists of the adjacent mines of Blyvooruitzicht and Doornfontein which are located within the Far West Rand Goldfield on the
northwestern edge of the Witwatersrand Basin. Blyvoor was the first mine in the “West Wits” line. Together, these two operations
have produced over 37 million ounces of gold since inception.

At June 30, 2010, Blyvoor had 4,480 employees, including contractors.

Property

Blyvoor is located on the West Wits line within the Far West Rand Goldfield on the northwestern rim of the Witwatersrand

Basin, near the town of Carletonville, Gauteng Province, about 50.0 miles (80.5 kilometers) south-west of Johannesburg and is
reached via the R528 road to Carletonville on the N12 Johannesburg-Potchefstroom-Kimberly highway.

The climate of the Highveld area (at an elevation of 5,249 feet (1,600 meters) above mean sea level), where the mine is

situated, is humid continental with warm summers and cold winters. Temperatures range from a minimum of 23 degrees
Fahrenheit (-5 degrees Celsius) in June and July, to a maximum of 93 degrees Fahrenheit (34 degrees Celsius) in December and
January.

The operating facilities are all situated on property belonging to Blyvoor, and include the shaft complexes, administrative

offices for the managerial, administrative, financial and technical disciplines, extensive workshops and consumable stores, the
metallurgical plants, tailings dams and waste rock dumps. Blyvoor also houses the majority of its employees in Blyvoor-owned
houses on the property and in the town of Carletonville. The normal support structures, including training, security, sport and
recreational facilities, schools and churches are situated on the property. Blyvoor has mining title to 16,242 acres (6,573 hectares) and
owns 5,138 acres (2,079 hectares) of freehold property.

Blyvoor consists of one mining license, ML46/99, in respect of statutory mining rights and mineral rights held by Blyvoor.

We are in the process of converting these old order mining rights to new order rights under the MPRD Act. The net book value of the
mining assets at Blyvoor is R510.9 million at June 30, 2010, with 4.0 million attributable ounces of Ore Reserves.

History

1937

Blyvooruitzicht Gold Mining Company Limited was incorporated and registered as a public company in South Africa
on June 10, 1937.

1942

Gold production commenced.

1995

Blyvoor acquired the Doornfontein Gold Mining Company Limited in November 1995.

1996

Blyvoor acquired the mineral rights representing the Western Deep Levels tribute area.

1997

We acquired the entire share capital of Blyvoor on September 15, 1997.

2001

Implementation of the Blyvoor expansion project.

2003

Commissioning of No. 4 and 5 Slimes Dam retreatment facility at a cost of R48.0 million.

2004

On June 28, 2004, we entered into a 60-day review period on Blyvoor. The 60-day review was extended to September 13,
2004. By October 5, 2004, 1,619 employees had been retrenched at a cost of approximately R19.0 million.

2005

In August 2005, our Board of Directors approved No. 2 Sub-Shaft Project (now called the WAP Project) and the Slimes
Dam Project to establish mining operations from the No. 2 Shaft and expansion to further improve plant efficiency,
respectively.
On July 6, 2005, we signed a Memorandum of Understanding with KBH regarding the acquisition by Khumo Gold of a
15% stake in our South African Operations.
On October 27, 2005, our Board of Directors approved the transaction with Khumo Gold. The new structure resulted in
Khumo Gold acquiring a 15% interest in a newly created vehicle, DRDGOLD SA, which owns ERPM, Crown and
Blyvoor. We owned an 85% interest in DRDGOLD SA.

2006

2007

After completion of a drilling program to define the uranium resource in Blyvoor’s slimes dam material, a 17.5 million
pound uranium and 0.8 million ton sulphur resource was declared in November 2007.

2008

In January 2008, electricity supply to the mine was interrupted by Eskom which is government owned and production
suspended for a week due to safety concerns.

2009

In January 2009, a direct lightning strike to No. 5 shaft Eskom sub-station interrupted production at No. 5 shaft and other
areas drawing power from this supply. Employees underground at the time remained in the underground refuge bays until
hoisted to safety once the shaft feeder power had been restored. No injuries were recorded.
In May and June 2009, three seismic events in excess of 3.5 magnitude took place at No. 5 shaft. As these events affected
the highest grade carbon leader mining area, production from these areas was expected to resume in the third quarter of the
2010 fiscal year.
On November 9, 2009, we announced that, in a bid to save our Blyvoor mine from liquidation, we intended applying to the
High Court of South Africa for a provisional judicial management order over the operation. A provisional judicial
management order was granted by the High Court of South Africa on November 10, 2009.
In December 2009, Aurora Empowerment Systems (Pty) Limited proposed a transaction to purchase 60% of Blyvoor
for R295 million.

2010

In April 2010, the High Court of South Africa agreed to lift, with immediate effect, the provisional judicial management
order in place since November 10, 2009. By mutual agreement between DRDGOLD and Aurora, Aurora’s offer to
purchase 60% of Blyvoor was withdrawn.

Geology and Mineralization

Blyvoor exploits the two gold-bearing pebble horizons in the Central Rand Goldfields, the Carbon Leader, which is one

of the principal ore bodies in the goldfield, and the Middelvlei Reef horizons which occur in discrete channels over parts of the
lease area approximately 246 feet (75 meters) vertically above the Carbon Leader Reef horizon. The Carbon Leader Reef is the
principal economic horizon across the lease area and is a planar single sheet conglomerate. The Carbon Leader Reef typically
comprises basal carbon seam, overlain by a thin, small pebble conglomerate, enriched in carbon in the lower portion. The grade of
the Carbon Leader Reef is higher than the Middelvlei Reef. The Middelvlei Reef consists of a variable number of polymictic
quartz conglomerate bands, inter-bedded with coarse grain quartzite. The grade of the Middelvlei Reef is more erratic, with
distinctive pay shoots forming as southward-orientated linear zones.

Blyvoor was established in 1937 to exploit the rich Carbon Leader Reef but by the late 1980s had reached a position where

continued existence of mining operations was dependent upon the mining of scattered Carbon Leader Reef remnants and limited
sections of the lower grade Middelvlei Reef.

Mining and Processing

Access from the surface to the current underground workings of the mines is through a system of vertical and incline shafts

situated at the Blyvoor and Doornfontein mines. Doornfontein was previously a separate mine adjacent to the Blyvoor mine but has
since been merged to form Blyvoor. The shaft system consists of four vertical shafts from the surface, thirteen sub-incline shafts and
two sub-vertical shafts underground. Of the thirteen sub-incline shafts, only nine are in operation and are used for the conveyance of
personnel, pumping and hoisting of mined ore and waste.

Two levels have been holed between the previous Doornfontein mine and workings within the Blyvoor lease extension

(purchased in 1996 from Western Deep Levels Limited) to allow ore from the bottom of the Blyvoor workings to be trammed across
and hoisted up via the Blyvoor No. 5 Shaft, from where it is trucked to the gold plant. The average mining depth at Blyvoor is 10,541
feet (3,213 meters), 5,292 feet (1,613 meters) below mean sea level.

Mining of the reef takes place in stope panels. Holes are drilled into the solid rock and are charged with explosives and

blasted. The loosened rock is removed from the stope panels and is conveyed to the shaft, tipped into the ore-pass systems, hoisted to
the surface and transported to the metallurgical plant for gold extraction.

Metallurgical processing facilities at Blyvoor are comprised of a single metallurgical plant. The process route is based on a

conventional flow sheet comprising multi-stage crushing, open circuit primary and closed circuit secondary milling with hydro
cyclones, thickening and cyanide leaching in a Carbon-in-Pulp, or CIP, carousel arrangement. The gold is recovered through electro-
winning followed by smelting to doré. The circuit was recently modified by the closure of the filtration system and the
commissioning of a modern carbon Kemix pumpcell plant. As at June 30, 2010, the overall plant utilization was 95%.

Electricity for South Africa is provided by Eskom, which is government owned. Eskom is the largest producer of electricity

in Africa. In South Africa, Eskom operates a national power supply grid consisting of 24 power stations across the country.
Electricity to Blyvoor is provided from the West Wits substation outside Carletonville at 44,000 volts. Further substations, located on
mine site, transform the power to 6,600 volts or 22,000 volts for direct supply to the shaft winder and air compressors. The power
supply is further reduced to 525 volts for smaller devices and equipment used on the mine. The average annual power consumption is
about 432 GWHr and the maximum demand is about 66 MW.

In fiscal 2008, electricity supply to the mine was interrupted by Eskom and production suspended for a week due to safety

concerns. The situation did improve during March 2008, the operation is however still on a six hour standby notice, in the event that
power supply becomes unstable in the area. Eskom has requested all of its “Key Customers” to reduce power consumption by 10%,
Blyvoor has managed to adhere to this request and has continued during fiscal 2009 to save the maximum amount of energy possible.

During fiscal 2008, good progress was made on Blyvoor’s WAP Project, which replaced the No. 2 Sub-Shaft Project. The

WAP Project involves accessing the No. 2 sub-shaft reserves from levels 27 to 35 of No. 5 shaft. Production from the WAP Project
began in October 2008 with the target of 1,200m ² per month being achieved by the end of fiscal 2009. As at June 30, 2009 a total of

R34.9 million had been spent on the project.

In fiscal 2009, seventeen production days were lost because of Section 54 closures imposed by the Department of

Mineral Resources following fatalities suffered after seismic events occurring and a further six production shifts were lost at No. 5
Shaft following a lightning strike at the shaft’s electrical substation. In May and June 2009, three seismic events in excess of 3.5
magnitude took place at No. 5 shaft. As these events affected the highest grade carbon leader mining area, production from these
areas was expected to resume in the third quarter of the 2010 fiscal year.

During fiscal 2010, mining ramp-up continued towards the 2,500m ²

per month targeted at the WAP Project, and by fiscal

year-end had reached some 1,750 m ² per month. On August 26, 2009, DRDGOLD announced that it had advised unions of its

intention to right-size the Blyvoor operation. Blyvoor proceeded with a 60-day facilitated consultation process in terms of Section
189A of the South African Labour Relations Act to determine the future of affected employees. The consultation process was
completed on October 26, 2009 and 330 employees were retrenched. Furthermore, On November 9, 2009, we announced that, in a
bid to save our Blyvoor mine from liquidation, we intended applying to the High Court of South Africa for a provisional judicial
management order over the operation. A provisional judicial management order was granted by the High Court of South Africa on
November 10, 2009. In April 2010, after Blyvoor had returned to profitability, the High Court of South Africa agreed to lift the
provisional judicial management order in place since November 10, 2009. See Item 4D.: “Property, Plant and Equipment – Legal
Proceedings”. Looking ahead, there will be continued focus on Blyvoor’s key sustainability drivers: face length, face advance,
productivity (m2/tec), and ‘mix’ management.

The following capital expenditure was incurred at Blyvoor in fiscal 2010, 2009 and 2008:

Year ended June 30,

2010 2009 2008

R’000 R’000 R’000

Raise boreholes ..........................................................................................................

3,356

6,067 5,678

WAP Project ..............................................................................................................

1,916 10,084 14,269

Slimes pump stations and residue deposition.............................................................

3,193 8,252 971

15/29 incline shaft equipping.....................................................................................

- 1,013 542

Ice plant retrofit and upgrade.....................................................................................

5,212 - -

Washing plant upgrade ..............................................................................................

- 1,462

Symons crusher..........................................................................................................

3,482 - -

Mobile cooling units ..................................................................................................

340

1,700

560

Safety related equipment and expansion of seismic monitoring network ..................

162 8,451

Compressed air columns ............................................................................................

189

4,494

Opening up and development ....................................................................................

48,935 41,406 31,122

Mining and engineering equipment renewals ............................................................

10,317 16,509 16,738

Other ..........................................................................................................................

2,639 2,404 473

79,552 97,537 74,847

Exploration and Development

In November 2007 encouraging results had been obtained from a drilling program to define the uranium resource in

Blyvoor’s slimes dam material and a 17.5 million pound uranium and 0.8 million ton sulphur resource was declared. In fiscal 2009,
Blyvoor began an exploration drilling program linked to opening up and development to evaluate the south-west down-dip extension
of the Blyvoor ore body south of the Boulder Dyke. If encouraging results are obtained, various mining options will be investigated
to exploit the ore body, including the possibility of a trackless decline. Exploration into the south-west block was delayed due to a
fire which temporarily cut off services into this area. In fiscal 2010, we continued with exploration and cover drilling with
reconnaissance visits made to the Carbon Leader areas at No 5 Shaft. Normal stope face sampling and geological mapping is
ongoing.

Environmental and Closure Aspects

The predominantly dolomitic geology of the area in and around Blyvoor, and the resultant occasional occurrence of

sinkholes and subsidences, exposes Blyvoor to relatively unique environmental risks and costs associated with the remediation and
filling of these sinkholes.

Blyvoor has to maintain a rate of pumping of fissure water sufficient to keep the rate of rise of underground water below the

level of underground workings. The required rate is in the order of 2 million gallons (8 million liters) per day. Water not used in the
operations is discharged into the Wonderfontein Spruit (a stream adjacent to the Blyvoor mine). In order to address the risk of
contamination of ground water, streams and wetlands, water is sampled and the level of contaminants monitored in accordance with
Blyvoor’s water management plan. Fissure water at Blyvoor is generally of a good quality, therefore we believe that the contribution
of this water to pollution of water in the area is minimal.

Blyvoor is a member of the Mining Interest Group consisting of all mines operating in the Wonderfontein Spruit

catchment area. This group was formed to coordinate efforts and studies in the Wonderfontein Spruit and to liaise with
government departments to determine what action if any is required in cleaning the stream. The government has also established a
specialist task team to determine what needs to be done. At this stage there is no clear solution. The Mining Interest Group is also
represented on the various catchment forums where NGO’s and other interested and affected parties are present. Blyvoor
continues to meet with the Potchefstroom municipality on a monthly basis where the quality of Blyvoor’s discharge water is
assessed. Blyvoor remains in compliance with the Potchefstroom agreement.

Sinkholes are caused by ground water seeping into the underground dolomitic structures, which dissolve and weaken

causing a collapse in the rock structure. Dolomitic rock could be dissolved, resulting in an increased risk of sinkholes and possible
pollution of fresh water resources stored in the dolomitic formations. The occurrence of sinkholes is limited to a particular area of
Blyvoor, which requires an active program in water management and control. Water from leaking pipes is reported to a monitoring
committee and the necessary repairs are undertaken promptly. Ground subsidence surveys are undertaken to timely identify any
possible sinkholes. Sinkholes that do occur are filled to prevent further inflow of surface water and potential enlargement of the hole.
Sinkholes which form outside of our property are repaired by the Far West Rand Dolomitic Water Association.

Pollution from slime dams is controlled by dust suppression and water management programs. Short-term dust control is

accomplished through ridge ploughing the top surface of dormant tailings dams. Environmentally friendly dust suppressants, such as
molasses, are also applied when deemed necessary. In the long-term, dust suppression and water pollution is managed through a
program of progressive vegetation of the tailings complexes followed by the application of lime, to neutralize the natural acidic
conditions, and fertilizer as the organic growth medium.

Blyvoor has updated its EMP to meet the new requirements of the MPRD Act. The EMP has been submitted to the DMR

for approval. Blyvoor is currently demolishing and rehabilitating redundant surface infrastructures, including the defunct uranium
plant.

While the ultimate amount of rehabilitation costs to be incurred in the future is uncertain, we have estimated that the total

cost for Blyvoor, in current monetary terms as at June 30, 2010, is R38.4 million. This has been included in the provision for
environmental rehabilitation, restoration and closure costs in our statement of financial position. A total of R31.9 million has been
contributed to a Rehabilitation Trust Fund. This is an irrevocable trust, managed by specific responsible people who we nominated
and who are appointed as trustees by the Master of the High Court of South Africa.

Ore Reserves and Life of Mine

As at June 30, 2010 the attributable Proven and Probable Ore Reserves of Blyvoor were 4.0 million ounces. At

June 30, 2009, the attributable Proven and Probable Ore Reserves of Blyvoor were 3.5 million ounces. A Mineral Resource
competent person is appointed at each operation to review our Ore Reserve calculations for accuracy. For Blyvoor, Mr. Ryno Botha
(SACNASP) is the appointed Mineral Resource competent person.

As a result of the implementation of the WAP Project and the higher gold price, Blyvoor’s life-of-mine business plan

remains at 20 years, as at June 30, 2010.

Current Production

Blyvoor produced a total of 106,452 ounces of gold in fiscal 2010, with 77,226 ounces from underground areas and

29,226 ounces from surface areas. This represented 44% of our total production from continuing operations for fiscal 2010 of
241,194 ounces.

Underground gold production has decreased from 88,898 ounces in fiscal 2009 to 77,226 ounces in fiscal 2010. Reduced

underground production reflects the impact of the wage strike and the Section 89A restructuring process into October 2009.
Surface gold production decreased from 40,575 ounces in fiscal 2009 to 29,226 ounces in fiscal 2010, reflecting the impact of
suspended uneconomic rock dump recovery and recovery of increasing volumes of lower-grade material from the No 4 Dam.

Cash costs of $1,096 per ounce in fiscal 2010 increased from $719 per ounce in fiscal 2009. The increase in cash costs per

ounce of gold produced was primarily attributable to the lower production at Blyvoor in fiscal 2010 and the 32% electricity cost
increase in July 2009 and 25% increase in March 2010.

The following table details the operating and production results from Blyvoor for the past three fiscal years.

Year ended June 30,

2010 2009

2008

Production

Surface Operations

Ore mined ('000 tons)...........................................................................................................................

3,272 3,785

4,099

Recovered grade (oz/ton) .....................................................................................................................

0.009 0.011

0.009

Gold produced (ounces) .......................................................................................................................

29,226 40,575

37,359

Underground Operations

Ore mined ('000 tons)...........................................................................................................................

698 664

757

Recovered grade (oz/ton) .....................................................................................................................

0.111 0.134

0.137

Gold produced (ounces) .......................................................................................................................

77,226 88,898 103,813

Total ounces produced ...........................................................................................................................

106,452 129,473 141,172

Results of Operations (R)

Revenue ('000)........................................................................................................................................

861,409 1,018,527 848,229

Operating cost ('000) ..............................................................................................................................

888,180 842,329 697,281

Cash cost per ounce of gold ($)

............................................................................................................

1,096 719

675

Total cost per ounce of gold ($) .............................................................................................................

1,086 739

761

Crown

Overview

We own 74% of DRDGOLD SA, which in turn owns 100% of Crown. Crown has a surface retreatment operation

consisting of the Crown Central, City Deep and Knights business units, collectively referred to as Crown. ERPM’s Cason Dump
surface re-treatment operation is expected to continue to operate until 2015 under the management of Crown based on the current
rate of retreatment of approximately 165,000 tpm. Crown undertakes the retreatment of surface sources deposited as tailing from
non-operating mining sites across central Johannesburg.

At June 30, 2010, Crown had 1,138 employees, including contractors.

Property

Crown is situated on the outskirts of Johannesburg, South Africa and consists of three separate locations. It has mining

rights to 5,787 acres (2,342 hectares) and has the right to occupy 1,490 acres (603 hectares) of freehold property. Crown is in the
process of converting these old order rights to new order rights under the MPRD Act.

The Crown Central operation is located on the West Wits line within the Central Goldfield of the Witwatersrand Basin,

approximately 6 miles (10 kilometers) west of the Johannesburg central business district in the province of Gauteng. Access is via
Xavier Road on the M1 Johannesburg-Kimberley-Bloemfontein highway. The City Deep operation is located on the West Wits line
within the Central Goldfields of the Witwatersrand Basin, approximately 3 miles (5 kilometers) south-east of the Johannesburg
central business district in the province of Gauteng. Access is via the Heidelberg Road on the M2 Johannesburg-Germiston
motorway. The Knights operation is located at Stanley and Knights Road Germiston off the R29 Main Reef Road.

As of June 30, 2010, the net book value of Crown’s mining assets was R171.4 million with 0.9 million attributable ounces

of Ore Reserves.

Cash cost per ounce and total cost per ounce are financial measures of performance that we use to determine cash generating capacities of the mines and to monitor performance of our mining operations.

History

1979

Rand Mines Limited directors approved the formation of the company Rand Mines Milling and Mining Limited (RM3)
to treat the surface gold tailings created from the underground section of the original Crown Mines, which had been in
operation since the start of gold mining on the Witwatersrand in the late 1800's.

1982

First plant commissioned at Crown Mines to process surface material.

1986

Second plant commissioned at City Deep to process surface material.

1997

Randgold Exploration Limited and Continental Goldfields of Australia entered into a joint venture with the intention to
establish a company that would acquire dump retreatment operations on the Witwatersrand. This resulted in the
formation of Crown Consolidated Gold Recoveries Limited, or CCGR, which was incorporated as a public company in
South Africa in May 1997. Crown was a wholly owned subsidiary of CCGR and consists of the surface retreatment
operations of Crown Central, City Deep and Knights.

1998

We purchased 100% of CCGR.

2002

KBH purchased 60% of Crown. We were appointed as joint manager of the operation with KBH.

2005

On July 6, 2005 we signed a Memorandum of Understanding with KBH regarding the acquisition by Khumo Gold of a
15% stake in our South African Operations.
On October 27, 2005, our board of directors approved the transaction with Khumo Gold. The new structure resulted in
Khumo Gold acquiring a 15% interest in a newly created vehicle, DRDGOLD SA, which includes 100% of ERPM,
Crown and Blyvoor. We owned an 85% interest in DRDGOLD SA.

2006

On December 11, 2006, Khumo Gold, on behalf of itself and an employee trust, exercised the option granted by us
pursuant to the option agreement concluded between us and Khumo Gold in October 2005 to acquire a further 11% in
DRDGOLD SA.
On August 28, 2006, we concluded an agreement with AngloGold Ashanti to purchase the Top Star Dump.

2008

The Department of Mineral Resources issued in favour of Crown a mining right for gold recovery over the Top Star
Dump.

2009

The reclamation of the Top Star Dump commenced in December 2008. Crown also commenced with the reduction of
volumes to 400,000 tpm to implement the planned Crown Tailings Deposition Facility closure plan.

2010

The surface circuit of ERPM was incorporated into Crown for reporting purposes. Crown’s operating and financial
results for fiscal 2009 and fiscal 2008 have been restated for comparative reporting purposes.
Board approval was obtained to construct a pipeline to the Ergo tailings deposition site to enable Crown to restore its
deposition capacity to 600 000tpm. Restored deposition capacity provides the operation with the opportunity to bring to
account potential new resources. The pipeline is scheduled for completion in August 2011.

Mining and Processing

Crown undertakes the retreatment of surface sources deposited as tailings from non-operational mining sites across

central Johannesburg.

Material processed by Crown is sourced from numerous secondary surface sources namely, sand and slime. The surface

sources have generally undergone a complex depositional history resulting in grade variations associated with improvements in
plant recovery over the period of time the material was deposited. Archive material is a secondary source of gold bearing material.
This material is generally made up of old gold metallurgical plant sites as well as “river bed” material.

The three metallurgical plants, known as Crown Mines, City Deep and Knights, have an installed capacity to treat

approximately 11.0 million tons of material per year. Up to fiscal 2003, Crown also operated the West Wits gold plant for the
processing of sand and slime. Crown also operates the ERPM surface operations with ore being treated at the Knights plant. All of
the plants have undergone various modifications during recent years resulting in significant changes to the processing circuits.

Electricity to Crown is supplied to the Crown Central and City Deep business units from separate substations referred to

as Jupiter and No. 15 Shaft Crown Mines, and for Knights by the Ekhurhuleni Town Council. Electricity is supplied directly from
the national power grid to the substation and town council at 44,000 volts. Substations, located on mine sites, transform the power
to 6,600 volts for direct supply to the plants. The power supply is further reduced to 525 volts for smaller devices and equipment.

For Crown Central and City Deep, the average annual power consumption is about 72 GWHr and the maximum demand

is about 8.0 MW. For Knights the average annual power consumption is about 36 GWHr and the maximum demand is about 7.0
MW.

Crown operates three plants with slight variations in design in each plant, with a processing capacity of approximately

1 million tpm, yielding approximately 0.01 oz/t (0.4 g/t). The feed stock is made up of sand and slime which are reclaimed
separately. Sand is reclaimed using mechanical front-end loaders, re-pulped with water and pumped to the plant. Slime is
reclaimed using high pressure water monitoring guns. The re-pulped slime is pumped to the plant and the reclaimed material is
treated using screens, cyclones, ball mills and CIL technology to extract the gold. As at June 30, 2010, the overall plant utilization
was 83% as a result of the planned reduction in tonnage throughput.

City Deep Plant: Commissioned in 1987, this surface/underground plant comprises a circuit including screening, primary,

secondary and tertiary cycloning in closed circuit milling, thickening, oxygen preconditioning, CIL, elution and zinc precipitation
followed by calcining and smelting to doré. In 1998, the plant was converted to a slimes only operation. However, due to operational
difficulties caused by the particulate nature of the slimes, the milling circuit has subsequently been re-commissioned to facilitate the
treatment of sand.

Crown Mines Plant: Commissioned in 1982, this surface/underground plant has already been modified and comprises a

circuit including screening, primary cycloning, open circuit milling, thickening, oxygen preconditioning, CIP and CIL, elution, zinc
precipitation followed by calcining and smelting to doré.

Knights Plant: Commissioned in 1988, this surface/underground plant comprises a circuit including screening, primary

cycloning, milling in closed circuit with hydrocyclones, thickening, oxygen preconditioning, CIL, elution, electro-winning and
smelting to doré.

The following capital expenditure was incurred at Crown in fiscal 2010, 2009 and 2008:

Year ended June 30,

2010

2009

2008

R’000

Crown/Ergo Pipeline Project ................................................................

29,564

Top Star Dump......................................................................................

14,369

21,796

Residue pipelines ..................................................................................

5,460

2,451

Residue columns ...................................................................................

3,123

Mills, mill feed and control...................................................................

3,578

Vehicles and equipment........................................................................

1,414

272

1,256

Tailings management ............................................................................

13,823

21,910

8,781

Other .....................................................................................................

1,148

1,104

1,092

45,949

43,115

42,077

Exploration and Development

Exploration and development activity at Crown involves the drilling of existing surface dumps and evaluating the potential

gold bearing surface material owned by third parties that could be processed on a full treatment basis or purchased outright by Crown.

On August 28, 2006, we concluded an agreement with AngloGold Ashanti to purchase the Top Star Dump. The Top Star

Dump has been evaluated geostatistically and had a probable reserve of 5.2Mt, at a grade of 0.775g/t. The Top Star Dump mining
right was granted with effect from August 21, 2008 until August 20, 2013. We expect that Top Star will contribute approximately
45,000 ounces of gold per annum for a period of 20 months. Reclamation of the Top Star Dump commenced in December 2008

Additional exploration drilling previously planned for the current fiscal year to define the uranium and sulphur potential of

all Crown’s current deposition sites, has been put on hold. A feasibility study regarding the deposition of the Crown tailings on the
Brakpan tailings complex was completed in fiscal 2010 and R43 million was approved for the extension of the Brakpan tailings
complex to accommodate the Crown tailings. The estimated completion date is August 2011.

Environmental and Closure Aspects

Crown operates at sites located in close proximity to significant municipal infrastructure, commercial and residential

development. The major environmental risks are associated with dust from various recovery sites, and effective management of
relocated process material on certain tailings dams. The impact of windblown dust on the surrounding environment and community is
addressed through a scientific monitoring and evaluation process, with active input from the University of Witwatersrand and
appropriate community involvement. Environmental management programs, addressing a wide range of environmental issues, have
been prepared by specialist environmental consultants and applied specifically to each dust sample recovery monitoring site and
integrated into Crown’s internal environmental assessment process. Although Crown completed a project for thickening re-processed
tailings, there also remains a risk of localized sloughing which can result in that section of the tailings dam being closed temporarily,
with repair work being done to the dam wall. Water pollution is controlled by means of a comprehensive system of return water dams
which allow for used water to be recycled for use in Crown’s metallurgical plant. Overflows of return water dams may, depending on
their location, pollute surrounding streams and wetlands. Crown has an ongoing monitoring program to ensure that its water balances
(in its reticulation system, on its tailings and its return water dams) are maintained at levels that are sensitive to that capacity of return
water dams.

Dust pollution is controlled through an active environmental management program for the residue disposal sites and

chemical and organic dust suppression on recovery sites. Short-term dust control is accomplished through ridge ploughing the top
surface of dormant tailings dams. Additionally, environmentally friendly dust suppressants, such as molasses, are applied. Dust fall-

out is also monitored. In the long-term, dust suppression and water pollution is managed through a program of progressive vegetation
of the tailings followed by the application of lime, to reduce the natural acidic conditions, and fertilizer to assist in the growth of
vegetation planted on the tailings dam.

A program of environmental restoration that provides for the rehabilitation of areas affected by mining operations during the

life of the mine is in place. The surface reclamation process at Crown has several environmental merits as it has removed a potential
pollution source and opens up land for development. Crown has conducted its environmental management program performance
assessment, which was submitted to and approved by the DMR during fiscal 2005. Crown has updated its EMP in compliance with
the MPRD Act and submitted it to the DMR for approval.

While the ultimate amount of rehabilitation costs to be incurred in the future is uncertain, we estimate that the total cost for

Crown, in current monetary terms as at June 30, 2010, is approximately R157.6 million. A total of R52.3 million has been contributed
to the Crown Rehabilitation Trust Fund. This is an irrevocable trust, managed by specific responsible people who we nominated and
who are appointed as trustees by the Master of the High Court of South Africa.

Ore Reserves and Life of Mine

As at June 30, 2010, our 74% share of the Proven and Probable Ore Reserves of Crown was 0.9 million ounces. In fiscal

2009, our 74% share of Proven and Probable Ore Reserves of Crown was 0.4 million ounces. A Mineral Resource competent person
is appointed at each operation to review our Ore Reserve calculations for accuracy. For Crown, Mr. Vivian Labuschage is the
appointed Mineral Resource competent person. The current life-of-mine business plan is estimated to be fourteen years.

Current Production

Gold production for Crown was 99,410 ounces in fiscal 2010 compared to gold production of 95,616 ounces in fiscal 2009.

The increase in gold production in fiscal 2010 was mainly as a result of improved recovered grade.

In fiscal 2010, cash costs increased to $814 per ounce of gold from $647 per ounce of gold in fiscal 2009, mainly as a result

of the 32% electricity cost increase in July 2009 and 25% increase in March 2010.

The following table details our attributable share of the production results from Crown for the past three fiscal years:

Year ended June 30,

2010

2009 2008

Production

Surface operations

Ore mined ('000 tons) ......................................................................................

7,850

8,826

11,126

Recovered grade (oz/ton).................................................................................

0.013

0.011

0.10

Gold produced (ounces)...................................................................................

99,410

95,616

110,021

Results of Operations (R)

Revenues (‘000) ................................................................................................

834,788

733,990 661,827

Operating cost (‘000) ........................................................................................

615,731

560,064

459,703

Cash cost per ounce of gold ($)

........................................................................

814

647 571

Total cost per ounce of gold ($).........................................................................

895

859

659

Ergo

Overview

Ergo (comprising of Ergo Mining (Pty) Limited, or the Ergo JV, and the Elsburg Gold Mining Joint Venture, or ErgoGold)

currently consists of one operating carbon-in-leach, or CIL, circuit at the Brakpan plant, the Brakpan/Withok deposition complex
purchased from AngloGold Ashanti and the Elsburg tailings complex, comprising approximately 180 Mt of tailings. Since 1987,
AngloGold Ashanti treated surface material at the Ergo JV until the operation was closed in 2005.

DRDGOLD SA, through its subsidiaries, initially owned 50% of the Ergo JV and ErgoGold. On September 29, 2008,

DRDGOLD SA acquired a further 15% interest in ErgoGold from Mintails SA resulting in DRDGOLD SA holding a 65% interest
through its subsidiary, ERPM, and Mintails SA holding a 35% interest in the joint venture. On December 8, 2008, DRDGOLD
acquired the remaining 35% of ErgoGold for a purchase consideration of R177.0 million. The transaction was completed on
March 31, 2009. On January 21, 2010, DRDGOLD acquired the remaining 50% of the Ergo JV from Mintails for a purchase
consideration of R82.1 million. The transaction was completed on April 15, 2010 and recorded in the financial statements

effective May 1, 2010. Ergo currently operates for its own account, under the AngloGold Ashanti authorizations, until new order
mining rights have been obtained. These assets comprise servitudes, or access agreements, infrastructure, piping, equipment and old
order mining rights.

At June 30, 2010, Ergo had 694 employees, including contractors.

Property

The Ergo operations are located approximately 43 miles (70 kilometers) east of the Johannesburg’s central business district

in the province of Gauteng. Access to the Brakpan plant is via the Ergo Road on the N17 Johannesburg-Springs motorway.

The acquisition of the Brakpan/Withok deposition site provides Ergo with extensive additional deposition capacity

commensurate with the substantial increases in tailings material and processing capacity.

The refurbishment of the first CIL circuit at the Brakpan plant now has the capacity to treat an estimated 15Mt of tailings a

year. Phase 2 envisages, firstly, the expansion of the gold plant by refurbishing the second CIL circuit and, secondly, developing
uranium and acid plants. The pre-feasibility study for developing uranium and acid plants has been placed on hold because of the
current economic environment and the current low prices of these commodities.

As of June 30, 2010, the net book value of Ergo’s mining assets was R1,144.0 million.

History

2007

The Ergo JV founded as a DRDGOLD SA and Mintails SA joint venture.

On August 6, 2007, the joint venture parties entered into a sale of assets agreement with AngloGold Ashanti pursuant to
which it acquired the remaining moveable and immovable assets of the Ergo plant for a consideration of R42.8 million.
Additional agreements were concluded with AngloGold Ashanti on November 14, 2007 for the acquisition by Ergo of
additional tailings properties and the Withok deposition complex for a payment of R45.0 million.

2008

Ergo Phase 1 was launched comprising the refurbishment and recomissioning of the Ergo plant’s first CIL circuit and
the retreatment of the Elsburg and Benoni tailings complexes.
DRDGOLD acquires Mintails SA’s stake in ErgoGold for R277.0 million.

2009

Ergo Phase 1 commissioning continues; first feeder line to the Ergo Plant from Elsburg tailings complex comes into
operation.
Ergo Phase 2 exploration drilling for gold, uranium and acid completed.

2010

DRDGOLD acquires control of the Ergo JV through the acquisition of Mintails SA’s 50% in the Ergo JV for
R82.1 million.
Ergo Phase 1 production ramp-up nears completion with the installation of the second Elsburg tailings complex feeder
line to the Ergo plant. Construction of the Crown/Ergo pipeline commences.

Mining and Processing

Ergo undertakes the re-treatment of surface sources deposited as tailings from non-operational mining sites east of

Johannesburg.

Material processed by Ergo is sourced from secondary surface sources, namely slime. The surface sources have generally

undergone a complex depositional history resulting in grade variations associated with improvements in plant recovery over the
period of time the material was deposited. Archive material is a secondary source of gold bearing material; however, no archive
material was treated up until September 30, 2010. The metallurgical plant has a current installed capacity to treat approximately
15.0 million tonne of material per year.

The feed stock is made up of slime and is reclaimed using high pressure water monitoring guns. The re-pulped slime is

pumped to the plant and the reclaimed material is treated using screens, cyclones and CIL technology to extract the gold. As at
June 30, 2010, the overall plant utilization was 95%.

Electricity to Ergo is supplied from various Eskom supply points for the reclamation units and the tailings storage

facilities. The plant is supplied from the national power grid via a secured source from the Ekurhuleni Council of 11,000 volts.
Plant sub stations are stepped down to 6,600 volts before being further reduced to 525 volts for the motor control purposes.

The following capital expenditure was incurred at Ergo in fiscal 2010, 2009 and 2008:

Year ended June 30,

2010

2009

2008

R’000

Purchase of Anglogold Ashanti assets ..................................................

2,577

46,513

Refurbishment of the Ergo plant...........................................................

8,167

10,427

73,995

Reclamation stations, pipeline and pumps ............................................

38,432

126,129

30,975

Reinstatement of the Brakpan tailings facility ......................................

197

5,584

8,594

Rehabilitation of the Brakpan tailings facility ......................................

19,709

13,884

268

Vehicles and equipment........................................................................

221

1,355

IT Infrastructure....................................................................................

388

Uranium and acid pre-feasibility study .................................................

1,636

1,622

Ekurhuleni Business Development Academy (EBDA) training
facility ...................................................................................................

397 835 -

Other .....................................................................................................

1,387

11,339

14,818

68,584

174,154

176,785

Exploration and Development

Exploration drilling has been done to define the uranium potential of the Elsburg complex. Independent competent

person reports on uranium, sulphur and gold for the Elsburg resources and reserves have been compiled.

Environmental and Closure Aspects

Ergo is located in close proximity to significant municipal infrastructure, commercial and residential development.

Environmental management programs, addressing a wide range of environmental issues, have been prepared by specialist
environmental consultants and integrated into the internal environmental assessment process.

While the ultimate amount of rehabilitation costs to be incurred in the future is uncertain, we estimate that the total cost for

Ergo, in current monetary terms as at June 30, 2010, is approximately R159.4 million.

Ore Reserves and Life of Mine

Ergo processes the Proven and Probable ore reserves at the Elsburg and Benoni tailings complexes. As at June 30, 2010, our

74% share of the Proven and Probable Ore Reserves of Ergo was 1.2 million ounces. In fiscal 2009, our 74% share of Proven and
Probable Ore Reserves of Ergo was 1.3 million ounces. A Mineral Resource competent person is appointed at each operation to
review our Ore Reserve calculations for accuracy. For Ergo, Mr. Vivian Labuschage is the appointed Mineral Resource competent
person. The current life-of-mine business plan is estimated to be twelve years.

Current Production

In fiscal 2010, production increased from 3,666 ounces in fiscal 2009 to 35,332 ounces as a result of Ergo Phase 1

production ramp-up nearing completion during fiscal 2010.

Cash costs in fiscal 2010 decreased to $963 per ounce from $2,213 per ounce in fiscal 2009, mainly as a result of the ramp-

up in production.

The following table details our attributable share of the production results from Ergo for the past fiscal year:

2010 2009

Production

Surface operations

Ore mined ('000 tons) .....................................................................................................................

13,081 2,296

Recovered grade (oz/ton)................................................................................................................

0.003 0.002

Gold produced (ounces)..................................................................................................................

35,332 3,666

Results of Operations (R)

Revenue (‘000) .................................................................................................................................

294,325 24,178

Operating cost (‘000) .......................................................................................................................

258,971 73,422

Cash cost per ounce of gold ($)

.......................................................................................................

963 2,213

Total cost per ounce of gold ($)........................................................................................................

1,330 2,873

ERPM

Overview

We own 74% of ERPM, which is consolidated as a subsidiary, through our 74% holding in DRDGOLD SA. ERPM consists

of an underground section and the Cason Dump surface retreatment operation. Underground mining at ERPM was halted in October
2008 and is included in ‘Corporate head-office and all other’ in the financial statements for segmental reporting purposes. The Cason
Dump surface retreatment operation will continue to operate until 2015 under the management of Crown based on the current rate of
production of approximately 165,000tpm and has been included under Crown in the financial statements for segmental reporting
purposes.

At June 30, 2010, ERPM had 77 employees, including contractors.

Property

ERPM is situated on the Central Rand Goldfield located within and near the northern margin of the Witwatersrand Basin

in the town of Boksburg, 20 miles (32 kilometers) east of Johannesburg. Access is via Jet Park Road on the N12 Boksburg-
Benoni highway. Historically underground mining and recovery operations comprised relatively shallow remnant pillar mining in
the central area and conventional longwall mining in the south-eastern area. Surface reclamation operations including the
treatment of sand from the Cason Dump, is conducted through the Knights metallurgical plant, tailings deposition facilities and
associated facilities. Until underground mining was halted in October 2008, the mine exploited the conglomeratic South Reef,
Main Reef Leader and Main Reef in the central area and the Composite Reef in the south-eastern area. ERPM operates under
mining license ML5/1995 in respect of statutory mining and mineral rights.

At June 30, 2010, the net book value of ERPM’s mining assets was R25.9 million.

History

1895

Formation of East Rand Proprietary Mines Limited.

1991

The FEV shaft was commissioned.

1999

East Rand Proprietary Mines Limited was liquidated in August 1999. The mine was run by a small number of
employees during liquidation. Underground flooding continued during liquidation.

2000

KBH took over control of the mine in January 2000. Operating as Enderbrooke Investments (Pty) Limited, or
Enderbrooke, and employing an outside contractor, the mine re-commenced mining operations in February 2000.

2002

Crown purchased 100% of ERPM, from Enderbrooke.

2003

An underground fire occurred at FEV Shaft, in February 2003. There was also the loss of Hercules Shaft in June 2003
and the loss of a secondary outlet at the FEV shaft in November 2003.

2004

In July 2004 it was determined that the underground section would undergo a controlled closure program ending March
2005. The closure program was prevented by a reduction in costs and improved productivity at the mine.

2005

Central Shaft placed on care and maintenance. On July 6, 2005, we signed a Memorandum of Understanding with KBH
regarding the acquisition by Khumo Gold of a 15% stake in our South African operations. On October 27, 2005, our
board of directors approved the transaction with Khumo Gold. The new structure resulted in Khumo Gold acquiring a
15% interest in a newly created vehicle, DRDGOLD SA, which includes 100% of ERPM, Crown and Blyvoor. We
owned an 85% interest in DRDGOLD SA.

2006

On December 11, 2006, Khumo Gold, on behalf of itself and an employee trust, exercised the option granted by us
pursuant to the option agreement concluded between us and Khumo Gold in October 2005 to acquire a further 11% in
DRDGOLD SA.
A prospecting right covering an area of 1,252 hectares (3,093 acres) of the neighboring Sallies lease area, referred to as

ERPM Extension 1 was granted by the DMR.

2007

A prospecting right, incorporating the southern section of the old Van Dyk mining lease area and a small portion of
Sallies, was granted by the DMR. Known as ERPM Extension 2, the additional area is 5,500ha (13,590 acres).

2008

On April 25, 2008, ERPM gave notice of intention to restructure the work force due to operational requirements and 239
employees were retrenched during June 2008.
On October 23, 2008, ERPM announced the suspension of drilling and blasting operations underground, following the
cessation of pumping of underground water at the South West Vertical shaft on October 6, 2008 for safety reasons
following the deaths of two employees.
On November 19, 2008, we announced our intention to place on care and maintenance the underground operations of
ERPM, and to proceed with a consultation process in terms of Section 189A of the Labour Relations Act to determine
the future of the mine’s 1,700 employees

2009

In January 2009, consultations in terms of Section 189A of the Labour Relations Act regarding the future of employees
affected by the placing on care and maintenance of the underground operations were concluded and 1,335 employees
were retrenched. In August 2009 the care and maintenance of the underground operations was discontinued.

2010

ERPM’s surface operation, the Cason Dump, was incorporated into Crown for reporting purposes.

Mining and Processing

Underground mining operations at ERPM comprised of two vertical shafts known as FEV Shaft and the Central Shaft.

There were also three additional shafts namely the South East Vertical Shaft, or SEV Shaft, used for the transport of employees and
materials and the hoisting of rock, the South West Vertical, or SWV, Shaft and the Hercules Shaft that were used for water pumping
only. The Cason Dump was used for the retreatment of surface material mined from the defunct Cason shaft.

In fiscal 2008, the ERPM underground operations were restructured in an attempt to return the mine to profitability. A

retrenchment agreement was reached with representative unions and associations without recourse to industrial action, and successful
application of various avoidance measures contained the number of employees retrenched to 239.

On October 23, 2008, drilling and blasting operations were suspended after the cessation of pumping of underground water

at SWV Shaft on October 6, 2008 for safety reasons following the deaths of two employees at the shaft on September 19, 2008.
Although the FEV Shaft where production was taking place was sealed off from water ingress from the SWV Shaft, the pumps at
FEV Shaft were no longer able to cope with rising water, which included the water resulting from the ice sent underground every day
to cool down the underground working places. Without being able to continue to supply ice underground for this purpose, the
underground temperature would become unacceptably high and it would not have been safe for employees to continue work
underground at the FEV shaft.

On November 19, 2008, we announced our intention to place on care and maintenance the underground operations of

ERPM, and to proceed with a consultation process in terms of Section 189A of the Labour Relations Act to determine the future
of the mine’s 1,700 employees. In January 2009, the consultations were concluded and 1,335 employees were retrenched. On
August 20, 2009, care and maintenance of the underground operations was stopped.

Electricity to ERPM is provided to the Cason Dump, SEV and FEV Shafts from the Bremmer substation, located in close

proximity to the mine in Boksburg. Transmission is at the rate of 88,000 volts. The Simmer Pan substation, located approximately
10 miles (16 kilometers) away from the mine site in Germiston, supplies the SWV and Hercules Shafts. Transmission is at the rate
of 44,000 volts. The two substations, located on mine site, transform the power to 6,600 volts for direct supply to the shaft winder
and air compressors. The power supply is further reduced to 525 volts for smaller devices and equipment used on the mine. The
average annual power consumption has reduced to about 105 GWHr and the maximum demand to about 24 MW. The on-mine
substations are older in nature and undergo annual infrared testing to identify hot connections which are potential fire hazards and
are subject to regular maintenance which includes the inspection of the settings, blades and changing the transformer oil in the
circuit breakers.

Exploration and Development

The necessity to extend the FEV decline from 75 to 78 levels to replace face length was stopped due to the cessation of

drilling and blasting operations in October 2008. The pre-feasibility study conducted by an external mining consulting company, to
investigate the possibility of exploiting these reserves by means of a trackless decline system, and significantly increasing the life of
the underground operations was also stopped.

An additional application to extend ERPM’s existing prospecting right eastwards into the Rooikraal/Withok area,

incorporating the southern section of the old Van Dyk mining lease area and a small portion of Sallies, was granted by the DMR in
fiscal 2007. Known as ERPM Extension 2, the additional area is 5,500ha (13,590 acres). Subsequent feasibility studies conducted
which could eventually culminate in a deep-level mine with a life in excess of 15 years was stopped after underground mining was
halted.

All underground exploration and development has been stopped due to the discontinuation of underground activities.

Environmental and Closure Aspects

There is a regular ingress of water into the underground workings of ERPM, which was contained by continuous pumping

from the underground section. On May 31, 2004, ERPM stopped continuous pumping of water from the underground section for
financial reasons due to the withdrawal of the State pumping subsidy and the low Rand gold price making the cost of full time
pumping unaffordable, with occasional pumping to surface conducted on weekends. In December 2004, the mine received the
pumping subsidy funds and continuous pumping was reinstated. Studies on the estimates of the probable rate of rise of water have
been inconsistent, with certain theories suggesting that the underground water might reach a natural subterranean equilibrium, whilst
other theories maintain that the water could decant or surface. A program is in place to routinely monitor the rise in water level in the
various underground compartments and there has been a substantial increase in the subsurface water levels. ERPM’s SWV Shaft has
been used for some time to manage the rising water level on the Central Witwatersrand Basin. Some 60 megalitres of water were
pumped daily from a depth of approximately 1,000 metres.

In fiscal 2007, ERPM updated its EMP to meet MPRD Act requirements and submitted it to the DMR for approval. The

concurrent rehabilitation of redundant structures and holdings continued throughout fiscal 2007. The pumping infrastructure was
upgraded at the South West Vertical Shaft in anticipation of the additional water from the Hercules basin. Pumping continued during
fiscal 2007 and 2008 at the South West Vertical Shaft.

On October 6, 2008, pumping of underground water at the South West Vertical Shaft was stopped for safety reasons

following the death of two employees at the shaft on September 19, 2008. Management concluded that the project to upgrade the total
pumping capacity at South West Vertical Shaft with a more efficient system as part of an Eskom-funded demand-side management
project was not economically viable.

While the ultimate amount of rehabilitation costs to be incurred in the future is uncertain, we have estimated that the total

cost for ERPM, in current monetary terms as at June 30, 2010, is R50.0 million. A total of R20.1 million has been contributed to the
ERPM Rehabilitation Trust Fund. This is an irrevocable trust, managed by specific responsible people who we nominated and who
are appointed as trustees by the Master of the High Court of South Africa.

Ore Reserves and Life of Mine

As at June 30, 2010, our 74% share of Proven and Probable Ore Reserves of ERPM are included under Crown and Ergo.

The total surface Ore Reserves comprise of 0.1 million ounces from the Cason Dump and 1.2 million ounces from the Elsburg and
Benoni tailings complexes, which will be processed over the next seven and twelve years, respectively. A Mineral Resource
competent person is appointed at each operation to review our Ore Reserve calculations for accuracy. For ERPM, Mr. Ryno Botha
(SACNASP) is the appointed Mineral Resource competent person.

Current Production

ERPM underground section produced no gold during fiscal 2010. Production from the surface retreatment section Cason

Dump is now reported under Crown.

The following table details our attributable share of the production results from ERPM for the past three fiscal years:

Year ended June 30,

2010 2009

2008

Production

Underground Operations

Ore mined ('000 tons)...........................................................................................................

- 202

334

Recovered grade (oz/ton) .....................................................................................................

- 0.094

0.170

Gold produced (ounces) .......................................................................................................

- 18,935

56,812

Results of Underground Operations (R)

Revenues ('000) ......................................................................................................................

- 134,043

333,855

Operating cost ('000) ..............................................................................................................

30,788 199,722

330,789

Cash cost per ounce of gold ($)

............................................................................................

- 1,166

796

Total cost per ounce of gold ($) .............................................................................................

- 1,646

1,103

Discontinued Operations
Tolukuma

Overview

Dome Resources (Pty) Limited, or Dome, was incorporated on May 17, 1984, under the name Dome Resources NL. Dome

owned and operated the Tolukuma gold and silver mine in PNG. During September 1999, we purchased 28,693,002 (19.93%) of
Dome’s ordinary shares for A$0.30 ($0.19) per share. In June 2001, we increased our shareholding to 100%.

The Tolukuma gold mine is located approximately 6 kilometers east of Fane Mission, 12 kilometers west of Woitape and

100 kilometers north of Port Moresby in Central Province, Papua New Guinea. The mine is in an area of steep mountainous
terrain in the headwaters of Iwu Creek, which drains into the Auga River. Elevations in the mine lease area range from 1,100
meters above sea level (asl) at the Auga River to 1,750 meters asl at the top of Tolukuma hill.

On September 10, 2007, Emperor which held a 100% interest in Tolukuma, announced its intention to divest the Tolukuma

gold mine. On October 22, 2007, we sold our entire interest in Emperor.

Property

Tolukuma consists of one mining lease, ML104, covering 1,898 acres (768 hectares) and five current exploration licenses

covering an area of approximately 513,962 acres (208,000 hectares), two licenses under renewal covering 125,525 acres (50,800
hectares) and four licenses under application totaling 1,073,884 acres (434,600 hectares). The total exploration area amounts to
approximately 2,456,144 acres (994,000 hectares).

The mine is located about 62 miles (100 kilometers) north of Port Moresby in the Central Province of Papua New Guinea at

an elevation of 5,115 feet (1,560 meters) above mean sea level. The mine is situated in very steep mountainous terrain that is not
accessible by road. All transport of employees, materials and equipment to and from the mine is by helicopter. Tolukuma is worked
on a “fly-in-fly-out basis,” with all staff being accommodated in quarters when at the mine.

The climate of the Central Province area is temperate with year round rainfall. Temperatures range from 50 to 77 degrees

Fahrenheit (10 to 25 degrees Celsius) and rainfall averages 144 inches (3,650 millimeters) per year. The vegetation is largely

rainforest and thick vegetation associated with high rainfall and mountainous regions.

History

1984

Dome Resource (Pty) Limited was incorporated on May 17, 1984, under the name Dome Resources NL, or Dome.

1987

Tolukuma mine was discovered by Newmont Proprietary Limited.

1993

Tolukuma Gold Mines Limited was acquired by Dome from Newmont Second Capital Corporation.

1999

In September, we purchased an initial stake of 19.93% of Dome.

2001

In June, we acquired all outstanding shares of Dome we did not already own, bringing our shareholding to 100%.

2006

We concluded a sale and purchase agreement with Emperor, where initially we held 88.3% of Emperor which in turn
holds the 100% interest in Tolukuma.

2007

On September 10, 2007, Emperor announced its intention to divest the Tolukuma gold mine situated in PNG.
Accordingly, the Company initiated a divestment process for the mine and a portfolio of associated exploration
tenements.
On October 22, 2007, we sold our entire interest in Emperor for R355.8 million (A$55.9 million).

Mining and Processing

The Tolukuma plant was built in 1995. Historically ore has been mined from both underground and open pit areas. No open

pit mining is currently carried out. Ore is sourced primarily from underground mining with mill feed supplemented by ore recovered
from low grade stockpiles. All mining is conducted using mining plant and equipment owned by Tolukuma. The average mining
depth at Tolukuma is 490 feet (150 meters) below surface or approximately 4,760 feet (1,450 meters) above mean sea level. Access
to underground workings is via decline shafts. Mining methods vary according to local ground conditions and are generally
mechanized cut and fill shrinkage methods.

The metallurgical plant is compact and is located on a steep ridge in very mountainous terrain. Ore is trucked to the plant,

then milled and treated through a conventional gravity and CIL circuit. The plant consists of a closed circuit semi-autogenous mill
that was at the time of disposition capable of processing 18,000 tpm. Cyanide in the residue is neutralized in a detoxification plant
prior to riverine discharge.

Tolukuma is situated in a remote area, and as a result is forced to be self sufficient with regard to the generation of

power. Power is generated through a combination of diesel driven generator sets and hydro-turbine driven generator sets. Three
hydro units are installed, capable of generating 1.8 MW of power. These units are dependent on the supply of adequate water.
These generators supply 32,000 volts via overhead lines to the mine, where it is transformed down to either 6,600 volts, 1,000
volts or 525 volts, depending on the requirement. On average the mine consumes 30 MW of power. Any shortfall from the hydro
units is made up by the diesel units (a total of 3.2 MW of diesel generating power is installed).

Environmental and Closure Aspects

Tolukuma has been developed in accordance with an environmental plan approved by the Papua New Guinea authorities in

July 1994. Tolukuma is compliant with the Papua New Guinea Government’s regulatory requirements. To ensure continuing
compliance with the government’s regulatory requirements, Tolukuma has implemented a broad-based Environmental Management
and Monitoring Program, or EMMP. The measures we took to implement this program include addressing water quality, population
dietary surveys and aquatic fauna and metals-in-tissue surveys. These surveys were conducted during July and September of 2003.
During March 2003, an environmental audit was concluded at Tolukuma which found the operations to be in substantial compliance
with applicable Papua New Guinea legislation and the EMMP environmental plan.

Tailings are routinely discharged into the Auga/Angabanga river system. The discharging of tailings into riverine and

marine systems in Papua New Guinea is an acceptable practice due to the seismic instability of the area and the dangers this poses for
the stability of conventional tailings dams. Due to the fact that ore mined at the Tolukuma Mine, and the surrounding land in general
is high in mercury, the potential does exist that levels of mercury discharged into the river system might expose us to criminal
liability under Papua New Guinea legislation.

Production

Gold production from July 2007 to October 2007 was 13,427 ounces. In fiscal 2007 gold production was 44,181 ounces.

The following table details the operating and production results from Tolukuma for the past three fiscal years.

Year ended June 30,

2010 2009

2008

Production

Underground Operations

Ore mined ('000 tons).............................................................................................

Recovered grade (oz/ton) .......................................................................................

0.22

Gold produced (ounces) .........................................................................................

13,427

Results of Operations (R)

Revenues ('000) ........................................................................................................

89,235

Operating cost ('000) ................................................................................................

107,381

Cash cost per ounce of gold ($)

..............................................................................

- -

1,094

Total cost per ounce of gold ($) ...............................................................................

1,767

Durban Deep

Overview

The Durban Deep mine was the original gold mine of the Group. Durban Deep is situated on the northern edge of the

Witwatersrand Basin immediately to the west of Johannesburg. Mining took place within the lease area since the discovery of the
Witwatersrand Goldfield in 1886 at nearby Langlaagte.

As of August 2000, we ceased all underground and open pit mining operations at Durban Deep. Following the withdrawal

of our underground pumping subsidy, the deeper sections of the mine were flooded. On a combined basis, Durban Deep produced
more than 37 million ounces of gold prior to the cessation of operations.

We concluded an agreement with M5 on July 21, 2005, in terms of which M5, against payment of a non-refundable fee of

R1.5 million, was granted an option to acquire Durban Deep’s mine village for R15.0 million. The option lapsed on November 19,
2005. On the exercising of the option the option fee would be deemed part payment of the purchase consideration. If not, the option
fee would be forfeited to us.

¹ Cash cost per ounce and total cost per ounce are financial measures of performance that we use to determine cash generating capacities of the mines and to monitor performance of our mining operations.

On November 18, 2005, M5 exercised the option and provided a guarantee for payment. Prior to the registration of the

transfer occurring, we were notified by Rand Leases Properties Limited (formerly JCI Properties Limited) of an alleged pre-
emptive right in respect of the property in terms of an agreement dated December 1996, pursuant to which the property should be
sold to them on similar terms. We subsequently repudiated our agreement with M5 and notified Rand Leases Properties Limited
that we did not intend offering the property to them. Both parties indicated to us their intentions to institute legal proceedings for
the sale and transfer of the property. On December 12, 2006, Rand Leases Properties Limited issued a summons against us and we
filed an Appearance to Defend. A trial date was allocated by the High Court of South Africa for April 25, 2008, but the case was
postponed. A new date has not yet been set. Dino Properties (Pty) has instituted action against the Company seeking to enforce an
agreement of sale of the DRD Village entered into on September 20, 2005, alternatively payment of R195 million which is alleged
to represent the market value of the property. The Company is defending this action; however, the parties have suspended the
pleadings with the possibility of pursuing a settlement of the case.

Property

Durban Deep is located within the Central Witwatersrand Basin which stretches from Durban Deep in the west to ERPM in

the east. Durban Deep is situated 9.3 miles (15 kilometers) west of Johannesburg and contains mining title to 14,262 acres (5,772
hectares) and owns 3,667 acres (1,484 hectares) of freehold property. These include administrative buildings, hospital, recreation
complexes, housing in both hostel and free-standing houses and a security complex. We have title to substantial land tracts on the
outskirts of the City of Roodepoort, which is located in this section. We do not intend to convert our rights under the MPRD Act.

Mining and Processing

Five different ore bodies have been mined at Durban Deep. Ore was mined from outcrops at the surface down to a

maximum depth of 9,200 feet (2,804 meters) and the reefs are known to persist to 13,000 feet (3,962.4 meters) below the surface
within the lease area.

Environmental and Closure Aspects

Rehabilitation and other responsibilities like the National Nuclear Regulator Certificate of Registration requirements

have been taken over by DRD (Pty) Ltd, which is owned by Mintails. An official liability transfer in terms of section 58 of the
MRPDA Act has been submitted to the DMR. DRDGOLD retains only the village that has no assessed liability associated with it.
The legal transfer of the liability would be dependent on the DMR's assessment of Mintail's financial capability. DRDGOLD
therefore still has a contingent liability until such legal transfer is affected.

In fiscal 2010, the environmental rehabilitation liabilities reduced from R82.4 million in fiscal 2009 to R19.5 million in

fiscal 2010 as a result of the transfer of liabilities in respect of mining rights over the Durban Deep mining license area which was
disposed of.

While the ultimate amount of rehabilitation costs to be incurred in the future is uncertain, we have estimated that the

remaining cost for Durban Deep, in current monetary terms as at June 30, 2010, is R19.5 million. This has been included in the
provision for environmental rehabilitation, restoration and closure costs on the statement of financial position. A total of R21.8
million has been contributed to the Environmental Trust Fund. This is an irrevocable trust, managed by specific responsible people
who we nominated and who are appointed as trustees by the Master of the High Court of South Africa.

West Wits

Overview

We own 100% of West Witwatersrand Gold Holdings Limited, or WWGH, which holds West Witwatersrand Gold

Mines Limited, or West Wits. We acquired the entire share capital of WWGH, as well as Consolidated Mining Corporation Limited's
loan to WWGH, on April 1, 1996. We also acquired the entire issued share capital and the shareholders' claim and loan account of
East Champ d'Or Gold Mine Limited, a gold mining company with mining title in the West Rand. The mining assets were sold to
Bophelo Trading (Pty) Limited, subsequently renamed, Mogale Gold (Pty) Limited, or Mogale, during fiscal 2004, effectively
leading to the closure of the mining operation.

West Wits is situated on the northern edge of the Witwatersrand Basin near the town of Krugersdorp to the west of

Johannesburg.

Property

West Wits was formed out of the northern section of Randfontein Estates located in the West Rand Goldfields, about 22

miles (35 kilometers) west of Johannesburg, Gauteng Province. The mine was reached via the R28 Johannesburg-Krugersdorp
highway.

West Wits also had rights to mine on three adjacent mining leases, namely, East Champ d'Or, West Rand Consolidated and

Luipaardsvlei. West Wits had mining title to 8,364 acres (3,790 hectares) and owned 72 acres (29 hectares) of freehold property on
which all of its mining operations were situated. These rights were sold to Mogale during fiscal 2004.

History

1967

West Wits was incorporated and registered as a public company in South Africa on December 21, 1967.

1996

We acquired the entire share capital of West Wits on April 1, 1996.

2000

All mining ceased at West Wits in August 2000.

2002

We entered into an agreement with Bophelo Trading (Pty) Limited, subsequently renamed Mogale Gold (Pty) Limited, or
Mogale, for the sale of the West Wits gold plant, freehold areas, surface rights permits and certain related assets.

2003

The agreement with Mogale was subsequently amended by a Memorandum of Agreement on June 6, 2003. The

effective date of this sale was July 21, 2003.

2004

Mogale was placed under judicial management on April 13, 2004. As a result, the remaining balance on the purchase

price was impaired for R8.3 million.

2005

West Wits entered into an agreement with Randfontein Estates Gold Mines Limited and Atomaer (Pty) Limited, for the
establishment of a regional underground water management vehicle.

Mining and Processing

In August 2000, we decided to cease all operations at both the underground and open pit operations at West Wits. This

decision was taken after the South African government withdrew the water pumping subsidy. Without the subsidy, mining at West
Wits became prohibitively expensive. The mining operation is an agglomeration of old mines on the Randfontein Basin separated
from the main part of the Witwatersrand Basin by a geological structure known as the Witpoortjie Horst. Over fifteen different gold-
bearing pebble horizons have been mined. Ore has been mined from outcrops at the surface down to a maximum depth of 5,900 feet
(1,798.3 meters).

West Wits mined the Livingston Reef package, locally known as the East Reef. It comprises a 100-foot thick package of

conglomerates and quartzites dipping at an average of 18 degrees. The combined West Wits produced more than 1.0 million ounces
of gold since inception, before the cessation of underground and open-pit operations at the end of August 2000. Subsequent to the
cessation of mining operations, the metallurgical plant at West Wits was taken over by Crown for the processing of sand dumps only.

Environmental and Closure Aspects

Responsibility for the mine, including the environmental rehabilitation liability, has been taken over contractually by

Mintails although the legal transfer thereof would be dependent on the DMR's assessment of Mintail's financial capability.
DRDGOLD therefore still has a contingent liability until such legal transfer is affected. Management of the West Rand Consolidated
Mines' tailings dams have been taken over by Mintails which plans to reprocess them. An EMP for the balance of the area has been
submitted to the DMR as part of the conversion process of ML9/2000. The execution of the conversion is imminent.

In terms of Acid Mine Drainage (AMD) from the Western Basin, a proposal has been submitted to the regulators for an

interim solution whereby the Western Basin water is pumped into the Central Basin. Water from the Central Basin is then pumped
from 400m below surface and partly treated in the ERPM High Density Separation (HDS) plant before being released. The proposal
is based on a Public Private Partnership and will prevent untreated water from polluting the environment until the final sustainable
solution is put in place. In terms of this proposal, DRDGOLD will contribute approximately R13.4 million towards the R218 million
capital required. Final approval is awaited.

In fiscal 2010, the Company transferred the environmental rehabilitation liabilities in respect of mining rights over the West

Wits mining license area which was disposed of. A total of R18.7 million previously contributed to the Environmental Trust Fund has
been impaired as a result of the transfer of the liability.

Legal Proceedings

Litigation regarding environmental issues

On August 2, 2006 and September 4, 2006, two virtually identical applications were brought against DRDGOLD and its

directors for relief under the MPRD Act by the Legal Resources Centre on behalf of the residents of two communities, Davidsonville
and Kagiso, who reside adjacent to tailings deposition sites of the now dormant Durban Roodepoort Deep mine and the West
Witwatersrand mine, respectively. While no financial compensation is sought, the communities are seeking orders for the revision of
the environmental management programmes of both sites, and for the sites to be rehabilitated and closed in accordance with the
standards of the MPRD Act. DRDGOLD has filed its Appearance to Defend and Answering Affidavits in respect of both matters in
the High Court of South Africa. The responsibility rests with the respondent's attorneys to either apply to the High Court for a date of
hearing or file replying affidavits.

Application to reverse the granting of a mining right

In June 2008, DRDGOLD and Durban Roodepoort Deep (Pty) Limited (“DRD”) brought an application in the High Court

of South Africa against Main Reef Crushers CC (MRC) and the Minister of Mineral Resources because inter alia the latter granted
MRC a mining right:

• in respect of an old waste rock dump which is not regulated by the MPRD Act and therefore the right was unlawfully

granted;

• over an area on which DRD had already been granted a prospecting right which gives DRD the exclusive right to apply for a

mining right in terms of the MPRD Act; and

• in respect of which the Environmental Impact Assessment and the Environmental Management Programme submitted by

MRC are fatally defective.

This case was heard by the High Court on September 3, 2009 and postponed sine die. The parties are discussing a possible

settlement of the mater.

Lawsuit by French shareholders

In August 2008, the Company received by post a summons issued in the Tribunal De Grande Instance [District Court] of

Paris by the Association for the Defense of the Shareholders of East Rand (the association) against DRDGOLD SA.

The claim is based on the following allegations:

• that the members of the Association were shareholders of ERPM;

• that the non-audited ERPM results of the six-month period from July to December 1998 were misleading regarding the

'healthiness' of ERPM prior to its winding up in 1999;

• that the 1999 liquidation of ERPM was fraudulently approved by 15% of shareholders who were representatives of the

South African state against the interests of French shareholders; and

• that the subsequent scheme of arrangement to remove ERPM from liquidation in 1999 was approved by 15% of

shareholders without consultation with French shareholders.

On the basis of these allegations, the association is claiming a payment of 5 million euros for damages, 10 000 euros for

costs and costs of suit. DRDGOLD SA has raised the point that the French Courts lack jurisdiction to hear the matter and also filed its
defenses on the merits of the case.

Legal proceedings relating to an agreement to sell Durban Deep’s mine village

We concluded an agreement with M5 on July 21, 2005, pursuant to which M5, against payment of a non-refundable fee of

R1.5 million, was granted an option to acquire Durban Deep’s mine village for R15.0 million. On November 18, 2005, M5 exercised
the option and provided a guarantee for payment. Prior to the registration of the transfer occurring, we were notified by Rand Leases
Properties Limited (formerly JCI Properties Limited) of an alleged pre-emptive right in respect of the property in terms of an
agreement dated December 1996, pursuant to which the property should be sold to them on similar terms. We subsequently
repudiated our agreement with M5 and notified Rand Leases Properties Limited that we did not intend offering the property to them.
Both parties indicated to us their intentions to institute legal proceedings for the sale and transfer of the property. On
December 12, 2006, Rand Leases Properties Limited issued a summons against us and we filed an Appearance to Defend. On April
25, 2008 the case was postponed by the High Court.

Dino Properties (Pty) Limited (previously M5) has instituted action against us seeking to enforce an agreement of sale of

Durban Deep’s mine Village entered into on September 20, 2005, or alternatively payment of R195 million which is alleged to
represent the market value of the property. DRDGOLD is defending this action, however, the parties have suspended the pleadings
with the possibility of pursuing a settlement of the case

Claim for alleged damages at Blyvoor

Duffuel (Pty) Ltd and Paul Frederick Potgieter are suing DRDGOLD, DRDGOLD SA, Blyvoor and the latter's directors for

alleged pollution of peat reserves which they claim to sell to the mushroom industry. The following amounts are claimed against
DRDGOLD, DRDGOLD SA, Blyvoor and the latter's directors:

• R48,952,000 for loss of peat reserves;

• R52,006,720 for removal of polluted peat, sealing of water in-flow & importation of unpolluted peat; and

• R96,000 for importation of clean water for domestic use.

The defendants are defending this action and have also raised an exception on the basis that the claim is vague and

embarrassing, and does not disclose a cause of action; however, the parties have suspended the pleadings with the possibility of
pursuing a settlement of the case.

Competition tribunal case

On September 23, 2002, we and Harmony Gold Mining Company Limited, or Harmony, another South African gold mining

company, filed a complaint with the South African Competition Commission against Mittal Steel (previously Iscor), a South African
steel producer. The complaint alleges that Mittal Steel abused its dominant position by charging excessive prices for its local flat steel
products and providing inducements for steel purchasers to refrain from importing competing steel products. The Competition
Commission dismissed our claim, and the matter was referred to the Competition Tribunal, who has the authority to overrule the
determination of the commission. On March 27, 2007, the Competition Tribunal delivered its judgment, having made the following
findings:

• that Mittal Steel has abused its dominant position by engaging in excessive pricing; and

• that Mittal Steel did not induce customers not to deal with its competitors.

On July 27, 2007, the parties presented submissions to the Tribunal on the penalty or penalties which the Tribunal may impose

against Mittal. On August 6, 2007, the Competition Tribunal imposed an administrative penalty of R691.8 million against Mittal. Mittal
lodged an appeal in the Competition Appeal Court against the decision of the Tribunal. On May 29, 2009, the Court delivered its
judgment in terms of which the case was remitted to the Tribunal for hearing of oral evidence in relation to the matters canvassed
in the affidavit of one Leon Price, and whether Mittal contravened section 8 (a) of the Competition Act 89 of 1998 by charging
excessive prices for flat steel products to the detriment of its consumers. On September 14, 2009, the Company and Harmony
announced the withdrawal of the complaint following a settlement agreement signed with Mittal. The terms of the settlement
agreement are confidential and will not be made public. The settlement agreement reached represented a satisfactory outcome to
the matter for us.

Provisional Judicial management order for Blyvoor operations

On November 9, 2009 DRDGOLD announced that in a bid to save the Blyvoor mine from liquidation, the company intended

applying to the High Court of South Africa for a provisional judicial management order over the operation. A provisional judicial
management order was granted by the High Court of South Africa on November 10, 2009.

The application, in terms of the provisions of Section 427 of the South African Companies Act, was prompted by Blyvoor’s

inability to continue to sustain losses incurred since April 2009, which were brought about by the following circumstances:

• a drop in the Rand gold price received between April 1, 2009 and September 30, 2009, due to the strengthening of the Rand

against the US Dollar;

• extensive damage caused during May 2009 to higher-grade underground production areas at Blyvoor’s No. 5 Shaft by

seismic activity, restoration of which was expected to take until March 2010 to complete;

• power utility Eskom’s higher winter tariffs, compounded by a 32% price increase effective from July 1, 2009, and the

likelihood of further increases in coming months; and

• the wage strike by the National Union of Mineworkers, which lasted for almost a month and resulted in the loss of

approximately 8 000 ounces of production.

In terms of a provisional judicial management order, the court appointed a judicial manager who has a wide range of powers at his

disposal to take such actions he deems necessary to save the business. These could include giving certain creditors temporary preference
over others and agreeing compromises with creditors without the risk of committing an act of insolvency and thereby exposing the mine to
liquidation. Management believed that provisional judicial management offered the best possible prospect of preventing Blyvoor’s
liquidation and of restoring the operation to profitability, while protecting the interests of all stakeholders of both Blyvoor and DRDGOLD.

On April 13, 2010 the High Court of South Africa agreed to lift the provisional judicial management order. The reasons for the

lifting of the provisional judicial management order were as follows:

• Blyvoor’s return to profitability;

• the return of Blyvoor’s trade creditors to normal payment terms;

• an increase in Blyvoor’s monthly production; and

• an increase in the Rand gold price.

ITEM 4A. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The following Operating and Financial Review and Prospects section is intended to help the reader understand the factors

that have affected the Company's financial condition and results of operations for the historical period covered by the financial
statements and management's assessment of factors and trends which are anticipated to have a material effect on the Company's
financial condition and results in future periods. This section is provided as a supplement to, and should be read in conjunction
with, our audited financial statements and the other financial information contained elsewhere in this Annual Report. Our financial
statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB). Our discussion contains forward looking information based on current
expectations that involve risks and uncertainties, such as our plans, objectives and intentions. Our actual results may differ from
those indicated in such forward looking statements.

The Operating and Financial Review and Prospects include the following sections:

•

Operating results:

- Business overview, a general description of our business.

- Key drivers of our operating results and principal factors affecting our operating results, a general description of the

principal uncertainties and variables facing our business and the primary factors that have a significant impact on our
operating performance.

- Recent acquisitions and dispositions, a description of the recent acquisitions and other transactions that have

impacted, or will impact, our performance.

- Key financial and operating indicators, a presentation of the key financial measures we use to track our operating

performance.

- Application of critical accounting policies, a discussion of accounting policies that require critical judgments and

estimates.

- Operating results, an analysis of our consolidated results of operations during the three fiscal years presented in our

financial statements. The analysis is presented both on a consolidated basis, and by operating segment.

•

Liquidity and capital resources, an analysis of our cash flows, borrowings and our anticipated funding requirements and
sources.

•

Outlook and trend information, a review of the outlook for, and trends affecting our business.

•

Off-balance sheet arrangements.

•

Tabular disclosure of contractual obligations, being the numerical review of our contractual future cash obligations.

5A. OPERATING RESULTS

Business overview

We are a South African gold mining company engaged in underground and surface gold mining, including exploration,

extraction, processing and smelting. We have operations comprising underground and surface retreatment operations, including
the requisite infrastructure and metallurgical processing plants. Our operations are currently located in South Africa. As at June 30,
2010, DRDGOLD's foreign subsidiaries, which were the holding companies for its previously disposed Australasian operations, have
been placed into voluntary liquidation , As at September 30, 2010, the Group has broadened its activities to include initial
exploration activities on a small scale in Zimbabwe.

During the fiscal years presented in this Annual Report we divide our worldwide operations into two geographic regions,

based on revenue generated from the location of the seller, as follows:

• South Africa, comprising the deep-level Blyvoor operation, in addition to the surface retreatment operations at Crown

(includes ERPM surface retreatment operations), ERPM (represents only their underground operations), Ergo (which
includes Ergo Mining (Pty) Limited (the Ergo JV) and ErgoGold, formerly the Elsburg Gold Mining Joint Venture)
(“South African Operations”). The comparative information has been adjusted to account for ERPM’s surface operations
included under Crown and for ErgoGold and the Ergo JV being combined into one operation called Ergo. ERPM’s
underground operation has been included under ‘Corporate head-office and all other’ in our financial statements’
operating segments.

• Australasia, comprising Tolukuma and a 20% interest in the unincorporated Porgera Joint Venture, or Porgera

(“Australian Operations”). On August 17, 2007, Emperor sold its 20% interest in the Porgera Joint Venture to Barrick and
on October 22, 2007, we sold our entire shareholding in Emperor, which included Tolukuma, to several institutional
investors.

In fiscal 2010 and 2009 the South African Operations accounted for 100% of our total production and profit after tax of

R203.4 million and R110.7 million, respectively. In fiscal 2008, the South African Operations accounted for 96% of our total
production and a profit after tax of R137.0 million, with the Australasian Operations accounting for the remaining 4% of our total
production and a net loss after tax of R81.1 million.

Exploration activities are undertaken in South Africa and we are also exploring gold mining possibilities in Zimbabwe by

conducting small scale exploration activities there.

From 1895 to 1997, our principal mining operation was the Durban Deep mine. Up to 1999, our general growth strategy

was to acquire existing under-performing mines in South Africa at relatively low acquisition costs, and turn them into profitable
business units by introducing low-cost mining methods and reducing costs through employing our experience in managing
marginal gold mines to more efficiently utilize existing infrastructures. From 1999 to 2006 our focus was to expand our operations
outside of South Africa by acquiring lower cash cost and higher margin mines than those in South Africa, through the acquisition
of Tolukuma, our 20% interest in Porgera and our 78.9% interest in Emperor (Vatukoula). With the exit from our Australasian
operations in 2008, our strategy has since changed to refocus on our operations in South Africa and in particular on the expansion
of our surface retreatment operations. A large portion of the proceeds we received from the disposal of our Australasian operations
have been utilized during fiscal 2009 and fiscal 2010 to expand our retreatment of surface tailings to recover gold. Our new
strategy for the short and medium term is to enhance shareholders’ value by reducing risk, controlling costs and taking a
disciplined approach to growth.

In fiscal 2010, revenue from continuing operations was slightly higher than in fiscal 2009. The effect of the higher gold

price was offset by lower gold production, in particular from underground operations due to the lower grades recovered as a result
of the seismic activity at Blyvoor’s underground operation at the end of fiscal 2009. In fiscal 2009 revenue from continuing
operations was slightly higher than in fiscal 2008. The effect of the higher gold price was offset by lower gold production, in
particular from underground due to the closure of ERPM’s underground operation. We had R188.2 million in cash and cash
equivalents as at June 30, 2010 compared to R352.7 million in cash and cash equivalents as at June 30, 2009. The decrease was
primarily a result of capital expenditure incurred to expand our retreatment of surface tailings to recover gold. We are able to fund
our short- and medium term projects from cash and borrowing facilities.

As at June 30, 2010, we had Ore Reserves of approximately 6.0 million ounces, compared to 5.2 million ounces as at

June 30, 2009 and 4.5 million ounces as at June 30, 2008. The increase from fiscal 2009 to fiscal 2010 was mainly as a result of
the higher gold price used in the Ore Reserves calculation together with the expected increase in Crown’s deposition capacity as a
result of the construction of the Crown/Ergo pipeline linking Crown to Ergo’s Brakpan deposition site. The increase from fiscal
2008 to fiscal 2009 was mainly due to the inclusion of the Elsburg tailings, which belong to ERPM and form part of the Ergo
operation.

Key drivers of our operating results and principal factors affecting our operating results

The principal uncertainties and variables facing our business and, therefore, the key drivers of our operating results are:

• The price of gold, which fluctuates widely in dollars and rands;

• The production tonnages and gold content thereof, impacting on the amount of gold we produce at our operations;

• The cost of producing that gold as a result of mining efficiencies; and

• General economic factors, such as exchange rate fluctuations and inflation, and factors affecting mining operations

particularly in South Africa.

Gold price

Our revenues are derived primarily from the sale of gold produced at our mines. As a result, our operating results are

directly related to the price of gold which can fluctuate widely and is affected by numerous factors beyond our control, including
industrial and jewelry demand, expectations with respect to the rate of inflation, the strength of the dollar (the currency in which
the price of gold is generally quoted) and of other currencies, interest rates, actual or expected gold sales by central banks, forward
sales by producers, global or regional political or economic events, and production and cost levels in major gold-producing
regions such as South Africa. In addition, the price of gold sometimes is subject to rapid short-term changes because of
speculative activities. The demand for and supply of gold may affect gold prices, but not necessarily in the same manner that
supply and demand affect the prices of other commodities. The supply of gold consists of a combination of new production from
mining and existing stocks of bullion and fabricated gold held by governments, public and private financial institutions, industrial
organizations and private individuals. As a general rule we sell the gold produced at market prices to obtain the maximum benefit
from prevailing gold prices.

The following table indicates the movement in the dollar gold spot price for the 2010, 2009 and 2008 fiscal years:

2010 fiscal year

2009 fiscal year

% change

Opening gold spot price on July 1, ..................................

$935 per ounce

$930 per ounce

Closing gold spot price on June 30, .................................

$1,244 per ounce $935 per ounce 33%

Lowest gold spot price during the fiscal year ..................

$909 per ounce

$713 per ounce

27%

Highest gold spot price during the fiscal year..................

$1,261 per ounce

$989 per ounce

28%

Average gold spot price for the fiscal year ......................

$1,092 per ounce

$873 per ounce

25%

2009 fiscal year

2008 fiscal year

% change

Opening gold spot price on July 1, ..................................

$930 per ounce

$651 per ounce

43%

Closing gold spot price on June 30, .................................

$935 per ounce

$930 per ounce

Lowest gold spot price during the fiscal year ..................

$713 per ounce

$648 per ounce

10%

Highest gold spot price during the fiscal year..................

$989 per ounce

$1,011 per ounce

-2%

Average gold spot price for the fiscal year ......................

$873 per ounce

$821 per ounce

2008 fiscal year

2007 fiscal year

% change

Opening gold spot price on July 1, ..................................

$651 per ounce

$599 per ounce

Closing gold spot price on June 30, .................................

$930 per ounce

$651 per ounce

43%

Lowest gold spot price during the fiscal year ..................

$648 per ounce

$561 per ounce

16%

Highest gold spot price during the fiscal year..................

$1,011 per ounce

$691 per ounce

46%

Average gold spot price for the fiscal year ......................

$821 per ounce

$638 per ounce

29%

A significant upward trend in the dollar gold price has been noted over the past five fiscal years. Our production has been

sourced from our South African Operations and, until fiscal 2008, our Australasian Operations as well. As a result, the impact of
movements in relevant exchange rates during those five fiscal years, has been significant on our operating results. The average
gold price in rand and Australian dollars has fluctuated as follows:

•

Rand gold price (based on average prices for the year) increased from R6,003 per ounce in fiscal 2008 (a 30%
increase from fiscal 2007), to R7,910 per ounce in fiscal 2009 (a 32% increase from fiscal 2008) and R8,309 per
ounce in 2010 (a 5% increase from fiscal 2009).

•

Australian gold price (based on average prices for the year) increased from A$812 per ounce in fiscal 2007 to
A$914 per ounce in fiscal 2008 (a 13% increase from fiscal 2007).

Based on our forecast gold price of R304,761 per kilogram for fiscal 2011, a 10% increase in the rand gold price received

will increase our forecast profit after taxation by R276.8 million and a 10% decrease in the rand gold price received will decrease
our profit after taxation by R276.8 million.

Gold production and operating costs

Attributable gold production from our continuing operations totaled 241,194 ounces during fiscal 2010, in comparison to

247,690 ounces in fiscal 2009, and 308,005 ounces in fiscal 2008. Our discontinued operations (comprising Tolukuma, Porgera
and Vatukoula) recorded production of 13,427 ounces in fiscal 2008. There were no discontinued operations for fiscal 2010 and
2009.

Our costs and expenses consist primarily of operating costs and depreciation. Operating costs include labor, contractor

services, stores, electricity and other related costs, incurred in the production of gold. ‘Consumables and other’ is the largest
component of operating costs, constituting 38% of operating costs for fiscal 2010, and labor is the second largest component of
operating costs, constituting 34% of operating costs for fiscal 2010, as a large part of our mining operations are deep level
underground mines which are more labor intensive.

At our continuing South African Operations, production decreased from 247,690 ounces in fiscal 2009, produced from

14.5 million tonnes milled at an average yield of 0.53g/t, to 241,194 ounces in fiscal 2010, produced from 22.6 million tonnes
milled at an average yield of 0.33g/t. Production decreased from 308,005 ounces in fiscal 2008, produced from 14.8 million
tonnes milled at an average yield of 0.65g/t, to 247,690 ounces in fiscal 2009, produced from 14.5 million tonnes milled at an
average yield of 0.53g/t. During fiscal 2009, the average rand gold price strengthened by 32%, creating an opportunity to mine ore
grades that were previously seen to be unprofitable. This increase continued in fiscal 2010, with the average rand gold price
strengthening by 5%. The benefits enjoyed in fiscal 2009 by the increase in the average rand gold price were offset in fiscal 2010
by an increase in average operating costs for continuing operations of 9% compared to 40% in fiscal 2009, as a result of a more
conservative approach in our mining operations, including cost cutting exercises.

Blyvoor produced 106,452 ounces from 3.6 million tonnes milled at an average yield of 0.92g/t in fiscal 2010, in

comparison with 129,473 ounces from 4.0 million tonnes milled at an average yield of 1.00g/t in fiscal 2009 and 141,172 ounces
from 4.4 million tonnes milled at an average yield of 1.00g/t in fiscal 2008. The decrease in production at Blyvoor in fiscal 2010
compared to fiscal 2009, was as a result of lower recovered grades from underground operations as a result of seismic activity
damaging the high-grade mining areas during the last quarter of fiscal 2009 and a month long wage related strike during the first
quarter of fiscal 2010. The decrease in production at Blyvoor in fiscal 2009 compared to fiscal 2008, was as a result of 17
production days being lost in the first quarter because of Section 54 closures imposed by the DMR following the fatalities; in the
third quarter six production days were lost because of a lightning strike at No 5 Shaft’s electrical sub-station and during the fourth
quarter there was a significant decline in grade at No 5 Shaft because of seismicity. The decrease in production at Blyvoor in
fiscal 2008 compared to fiscal 2007 was from lower grades being mined due to a decision taken to move out of seismically active
areas.

Crown (which has been restated to include the surface retreatment operation of ERPM) produced 99,410 ounces from 7.1

million tonnes milled at an average yield of 0.43g/t during fiscal 2010, in comparison with 95,616 ounces from 8.0 million tonnes
milled at an average yield of 0.37g/t in fiscal 2009 and 110,021 ounces from 10.1 million tonnes milled at an average yield of
0.34g/t in fiscal 2008. The higher grades in fiscal 2010 compared to fiscal 2009 was a continued result of higher grade material
from the Mennells and Top Star sites and the lower throughput remains as a result of constraint created by Crown’s deposition
facility. The higher grades in fiscal 2009 compared to fiscal 2008 was a result of higher grade material from the Mennells and Top
Star sites and higher grade remnants from the CMR site and the decrease in throughput was intentional: it forms part of the closure
plan for the Crown Tailings Deposition Facility.

ERPM (which has been restated to include only its underground production) had no underground gold production during

fiscal 2010, in comparison with 18,935 ounces from 0.2 million tonnes milled at an average yield of 3.20g/t in fiscal 2009 and
56,812 ounces from 0.3 million tonnes milled at an average yield of 5.83g/t in fiscal 2008. The decrease in production at ERPM
from fiscal 2008 to fiscal 2009 resulted from the discontinuation of the underground operations from October 2008.

Ergo, which commenced production in November 2008, produced 35,332 ounces from 11.9 million tonnes milled at an

average yield of 0.09g/t in fiscal 2010, compared to 3,666 ounces from 2.3 million tonnes milled at an average yield of 0.05g/t in
fiscal 2009. The increase is due to the first full fiscal year of production and the ramp-up of production towards full production. In
fiscal 2009 the initial grade was lower than forecasted due to metallurgical challenges which have been encountered and are
currently being addressed by management. A 24-hour per day pilot plant simulating the Ergo plant has been built, which can
evaluate individual feeds into the full-scale plant. The most significant finding of the company’s investigations to date is that the
plant performance is measurably lower than the results obtained in the laboratory bottle roll test, which is used to evaluate the
leaching characteristics of the tailings dams. The company believes that it may be the case that the laboratory bottle roll conditions
are more aggressive than the plant’s mechanical agitation and that some form of attrition is required on the plant to enhance
leaching. Various devices are now being tested in pilot programs to establish whether laboratory results can be achieved on a
larger scale. The pilot plant is constructed to help determine the optimal blend of material from the Elsburg tailings complex and
the L29 dump. Improved yield should result as a consequence of an increase in volumes from the Elsburg tailings complex.

General economic factors

As at September 30, 2010, our operations are predominantly in South Africa, together with small scale exploration

activities in Zimbabwe (no significant exposure), and we are exposed to a number of factors, which could affect our profitability,
such as exchange rate fluctuations, inflation and other risks relating to South Africa. In conducting mining operations, we
recognize the inherent risks and uncertainties of the industry, and the wasting nature of the assets.

Effect of exchange rate fluctuations

For the year ended June 30, 2010, 100% of our revenues were generated from South African operations, all of our

operating costs were denominated in rand and we derived all of our revenues in dollars. Fiscal 2010 was marked by volatility in
the dollar and an overall weakening in the dollar relative to the rand. As the price of gold is denominated in dollars and we realize
our revenues in dollars, the depreciation of the dollar against the rand reduces our profitability, whereas the appreciation of the
dollar against the rand increases our profitability. Based upon average rates during the respective years, the rand strengthened by
16% against the dollar in fiscal 2010, compared to a weakening by 24% against the dollar in fiscal 2009 and a weakening by 1%
against the dollar in fiscal 2008. The strengthening of the rand limited the increase in the average rand gold price received to only
7% in fiscal 2010, whereas its weakening in fiscal 2009 and 2008 contributed to the increase in the average rand gold price of
30% in both years.

As an unhedged gold producer, we do not enter into forward gold sales contracts to reduce our exposure to market

fluctuations in the dollar gold price or the exchange rate movements. If revenue from gold sales falls for a substantial period
below our cost of production at our operations, we could determine that it is not economically feasible to continue commercial
production at any or all of our operations or to continue the development of some or all of our projects. Our weighted average
operating costs per kilogram for our continuing operations was R239,785 per kilogram of gold produced in fiscal 2010, R219,024
per kilogram of gold produced in fiscal 2009 and R156,891 per kilogram of gold produced in fiscal 2008. The average gold price
received, from continuing operations, was R267,292 per kilogram of gold produced in fiscal 2010, R250,589 per kilogram of gold
produced in fiscal 2009 and R192,143 per kilogram of gold produced in fiscal 2008.

Effect of inflation

In the past, our operations have been materially adversely affected by inflation. As we are unable to control the prices at

which our gold is sold, if there is a significant increase in inflation in South Africa without a concurrent devaluation of the local
currency or an increase in the price of gold, our costs will increase, negatively affecting our operating results.

The movements in the rand/dollar exchange rate, based upon average rates during the periods presented, and the local

annual inflation rate for the periods presented, as measured by the South African Consumer Price Index, or CPI, are set out in the
table below:

Year ended June 30,

2010

(%)

2009

(%)

2008

(%)

The average rand/dollar exchange rate (strengthened)/weakened by............................................

(15.9)

23.7

1.3

CPI (inflation rate) ........................................................................................................................

4.2 6.9 12.2

CPIX (inflation rate) (discontinued as from fiscal 2009)..............................................................

n/a n/a 11.6

The South African CPI inflation rate stabilized in fiscal 2010 and fiscal 2009 after a significant increase in fiscal 2008

and as at September 30, 2010, it was at 3.5%. From January 2009, the South African Reserve Bank changed the way inflation is
measured by expanding the range of consumer goods used and changing the benchmark measure from CPIX (CPI minus mortgage
costs) to CPI. Mortgage costs have been replaced by owners’ equivalent rental (OER) to capture housing costs, making CPIX
redundant. The closest measure to CPIX is CPI minus OER.

South African political, economic and other factors

We are a South African company and, subsequent to the sale of our stake in Emperor, all our operations are based in

South Africa. As a result, we are subject to various economic, fiscal, monetary and political factors that affect South African
companies generally. South African companies are subject to exchange control regulations. Governmental officials have from
time to time stated their intentions to lift South Africa’s exchange control regulations when economic conditions permit such
action. Over the last few years, certain aspects of exchange controls for companies and individuals have been incrementally
relaxed. It is, however, impossible to predict when the South African Government will remove exchange controls in their entirety.
South African companies remain subject to restrictions on their ability to export and deploy capital outside of the Southern
African Common Monetary Area, unless dispensation has been granted by the South African Reserve Bank. For a detailed
discussion of exchange controls, see Item 10D.: “Exchange controls.”

On May 1, 2004, the Mineral and Petroleum Resources Development Act (MPRD Act) became effective. Prior to the

introduction of the MPRD Act, private ownership in mineral rights and statutory mining rights in South Africa could be acquired
through the common law or by statute. Now, all mineral rights have been placed under the custodianship of the South African
government under the provisions of the MPRD Act, and old order proprietary rights need to be converted to new order rights of
use within certain prescribed periods. We have submitted certain applications in this regard. This process is described more fully
under Item 4B.: “Business Overview – Governmental regulations and their effects on our business - South Africa - Common Law
Mineral Rights and Statutory Mining Rights.”

The MPRD Act makes reference to royalties being payable to the South African government in terms of the Royalty Bill.

The fourth draft of the Royalty Bill was promulgated in Parliament on August 14, 2008 and provides for the payment of a royalty
according to a formula based on earnings before interest, tax and after the deduction of capital expenditure. The Mineral and
Petroleum Resources Royalty Act, No.28 of 2008 was enacted on November 21, 2008 and was published in the South African
Government Gazette on November 24, 2008 and the Mineral and the Petroleum Resources Royalty Act (Administration), No.29 of
2008 on November 26, 2008. The rate as calculated per the abovementioned formula is then applied to revenue to calculate the
royalty amount due, with a minimum of 0.5% and a maximum of 5% for gold, payable half yearly with a third and final payment
thereafter. The royalty is tax deductible and the cost after tax amounts to a rate of between 0.33% and 3.3% at the prevailing marginal
tax rates applicable to the group. The registration process commenced on November 1, 2009, after which the group duly registered,
and the payment of royalties commenced on March 1, 2010, with DRDGOLD payments due on June 30, 2010 and every six months
thereafter. The royalty is payable on old unconverted mining rights and new converted mining rights.

Recent acquisitions and dispositions

The global gold mining industry has experienced active consolidation and rationalization activities in recent years.

Accordingly, we have been, and may continue to be, involved in acquisitions and dispositions as part of this global trend and to
identify value-adding business combinations and acquisition opportunities. To ensure that our Ore Reserve base is maintained, or
increased, we are currently focusing on organic growth from our existing operations, brownfields exploration in South Africa and
greenfields exploration in Zimbabwe.

The following is a description of acquisitions and dispositions completed by us since July 1, 2007:

Emperor

On July 27, 2007, DRDGOLD shareholders at a general meeting approved the disposal by Emperor of its 20% interest in

On October 22, 2007, we sold our entire interest in Emperor for R355.8 million (A$55.9 million) to 26 institutional

investors with each acquired between 0.4% and 21.6% of the shares.

Top Star Dump

On August 21, 2008 a Mining Right was granted for gold recovery over the Top Star Dump, in favor of Crown by the

Department of Mineral Resources (formerly the Department of Minerals and Energy) with effect from August 21, 2008. The
mining right for the Top Star Dump has been granted until August 20, 2013 and gold recovery started during December 2008.

Ergo

On June 7, 2007, we and Mintails announced the formation of Ergo, a joint venture between Mintails SA and DRDGOLD

On August 6, 2007, the joint venture parties entered into a sale of assets agreement with AngloGold Ashanti pursuant to

On November 26, 2007, we announced that DRDGOLD SA signed a binding term sheet with Mintails SA, which provided

for significant expansion of the joint venture through:

• the planned refurbishment of all infrastructure at the Brakpan plant, to increase capacity from one CIL gold recovery circuit

to a plant capable of processing tailings for the recovery of gold, uranium and sulphuric acid; and

• substantially increasing available tailings material from 180 Mt to up to 1,700 Mt, by securing rights over tailings dumps

and slimes dams in the region.

Additional agreements were concluded on November 14, 2007 for:

• the acquisition by Ergo of additional tailings properties and the Withok deposition complex from AngloGold Ashanti for a

payment of R45.0 million and assumption of rehabilitation obligations; and

• the acquisition by Mintails SA of an option to acquire tailings properties (the Grootvlei Properties), comprising some

105 Mt, from Pamodzi Gold Limited. The Grootvlei properties formed part of the Mintails SA contribution to the expanded
the Ergo JV.

Ergo Phase 1 (ErgoGold) involved the refurbishment of one CIL circuit at the Brakpan plant with the capacity to treat an

On September 29, 2008, DRDGOLD SA acquired a further 15% interest in ErgoGold from Mintails SA resulting in

On January 21, 2010, DRDGOLD SA through its subsidiary ERPM, acquired the remaining 50% interest in the Ergo JV

from Mintails SA for a total consideration of R82.1 million, consisting of R62.1 million in cash and payment of the balance of
R20.0 million with DRDGOLD’s shares in Witfontein Mining (Pty) Limited. The acquisition was completed on April 15, 2010
and was recorded in the financial statements effective May 1, 2010.

DRDGOLD treats ErgoGold and the Ergo JV as one operating segment and includes their respective financial results

within their Annual Report in accordance with IFRS 8 (Operating Segments). Furthermore, the company’s management believes it
is appropriate to present ErgoGold and the Ergo JV together in this discussion as they share the same infrastructure, human
resources and mineable material, with ErgoGold being focused on the extraction of gold from the re-treatment of the Elsburg and
Benoni deposition sites and the Ergo JV being an exploration project focused on the extraction of uranium and further gold from a
range of deposition sites (including the Elsburg and Benoni sites).

ERPM

On October 6, 2008 we ceased pumping at ERPM’s South West Vertical Shaft for safety reasons following the death of two

The Department of Mineral Resources issued a Section 54 notice under the Mine Health and Safety Act, subjecting access

On November 19, 2008, we announced our intention to place on care and maintenance the underground operations of

On June 30, 2010 DRDGOLD signed heads of agreement with White Water Resources Limited (White Water), in terms of

which White Water would acquire the prospecting rights over ERPM Extensions 1 and 2 and the mining right over ERPM
Extension 1 from ERPM. ERPM’s mining right application over ERPM Extension 1 is pending. Both extensions are contiguous to
the ERPM mining lease area. The purchase consideration for the prospecting and mining rights was R18.5 million and would be
settled through the issue to ERPM of 74 million ordinary shares in White Water and 26 shares in a special purpose vehicle (SPV) to
be created, which would hold the assets acquired by White Water from ERPM in accordance with the terms of the transaction.

In the event that the Department of Mineral Resources did not approve the transfer of one or more of the prospecting or

mining rights, the consideration would be reduced to R9.3 million to be settled through the issue to ERPM of 37 million ordinary
shares in White Water and 26 ordinary shares in the SPV.

The transaction was subject to the successful conclusion of various conditions precedent, including its approval by White

Water shareholders and the DRDGOLD Board of Directors. The DRDGOLD Board of Directors did not approve the transaction and
the disposal will not proceed.

Blyvoor

On November 9, 2009, we announced that, in a bid to save our Blyvoor mine from liquidation, we intended applying to the

High Court of South Africa for a provisional judicial management order over the operation. A provisional judicial management order
was granted by the High Court of South Africa on November 10, 2009.

The application, in terms of the provisions of Section 427 of the South African Companies Act, was prompted by Blyvoor’s

inability to continue to sustain losses incurred since April 2009, which were brought about by the following circumstances:

• a drop in the rand gold price received between April 1, 2009 and September 30, 2009, due to the strengthening of the

rand against the US dollar;

• extensive damage caused during May 2009 to higher-grade underground production areas at Blyvoor’s No. 5 Shaft by

seismic activity, restoration of which was expected to take until March 2010 to complete;

• power utility Eskom’s higher winter tariffs, compounded by a 32% price increase effective from July 1, 2009, and the

likelihood of further increases in coming months; and

• the wage strike by the National Union of Mineworkers, which lasted for almost a month and resulted in the loss of

approximately 8,000 ounces of production.

In terms of a provisional judicial management order, the court appointed a judicial manager who has a wide range of powers

at his disposal to take such actions he deems necessary to save the business. These could include giving certain creditors temporary
preference over others and agreeing compromises with creditors without the risk of committing an act of insolvency and thereby
exposing the mine to liquidation. Management believed that provisional judicial management offered the best possible prospect of
preventing Blyvoor’s liquidation and of restoring the operation to profitability, while protecting the interests of all stakeholders of
both Blyvoor and DRDGOLD.

On April 13, 2010 the High Court of South Africa agreed to lift the provisional judicial management order. The reasons for

the lifting of the provisional judicial management order were as follows:

• Blyvoor’s return to profitability;

• the return of Blyvoor’s trade creditors to normal payment terms;

• an increase in Blyvoor’s monthly production; and

• an increase in the Rand gold price.

Other

On September 17, 2008, our wholly-owned subsidiary, DRD (Offshore) Limited, sold all of its shares in G.M. Network

On December 9, 2008, Argonaut Financial Services (Pty) Ltd, Mintails SA (Pty) Ltd and Witfontein Mining (Pty) Ltd,

entered into a share purchase agreement (SPA) which resulted in Argonaut Financial Services (Pty) Limited (a wholly owned
subsidiary of DRDGOLD) and Mintails SA each owning 50% of the shareholding of Witfontein as well as being authorized to
each appoint 50% of the board. Previously Mintails SA owned 100% of the issued share capital of Witfontein. Witfontein was to
be used as a future deposition establishment facility (i.e. slime deposition). On January 21, 2010, DRDGOLD SA through its
subsidiary ERPM, acquired the remaining 50% interest in the Ergo JV from Mintails for a total consideration of R82.1 million.
The purchase consideration was paid in cash in the amount of R62.1 million and the balance of R20.0 million was paid with
DRDGOLD’s shares in Witfontein Mining (Pty) Limited.

In January 2009 we completed the acquisition of 28.33% of the shares in West Wits SA (Pty) Limited, a subsidiary of

On July 22, 2009, the Company announced the rejection by the Mintails board of the offer by DRDGOLD SA to

On April 1, 2010, the Company announced that through mutual agreement the offer made by Aurora Empowerment

Systems (Pty) Limited to purchase a 60% interest in Blyvoor for a cash consideration of R295 million, which was payable on June
29, 2010, and to provide a R80 million loan facility over a six month period, was withdrawn following announcement of the offer
on December 2, 2009.

Key financial and operating indicators

The financial results for the years ended June 30, 2010, 2009 and 2008 below are stated in accordance with IFRS as

issued by the IASB.

We consider the key performance measures for the growth of our business and its profitability to be gold revenue,

production, operating costs, cash costs per kilogram and total costs per kilogram, capital expenditure and Ore Reserves. The
following table presents the key performance measurement data for the past three fiscal years:

Operating data

Continuing operations

Year ended June 30,

2010

2009

2008

Revenue (R'000) .........................................................................................................

1,990,522 1,910,738 1,843,912

Gold production (ounces) ...........................................................................................

241,194 247,690 308,005

Gold production (kilograms).......................................................................................

7,502 7,704 9,580

Revenue (R/kilogram).................................................................................................

265,332 248,019 192,472

Average gold price received (R/kilogram)..................................................................

267,292 250,589 192,143

Operating costs (R'000) ..............................................................................................

1,798,866 1,687,359 1,503,015

Operating costs (R/kilogram)

....................................................................................

239,785 219,024 156,891

Total costs (R/kilogram)

............................................................................................

237,123 237,344 183,488

Capital expenditure - cash (R'000)..............................................................................

194,018 345,132 251,180

Ore Reserves (ounces) ................................................................................................

6,027,000 5,220,000 4,510,000

Discontinued operations

Year ended June 30,

2010 2009

2008

Revenue (R'000) .........................................................................................................

- -

89,235

Gold production (ounces) ...........................................................................................

- -

13,427

Gold production (kilograms).......................................................................................

- -

417

Revenue (R/kilogram).................................................................................................

- -

213,992

Operating costs (R'000) ..............................................................................................

- -

124,437

Operating costs (R/kilogram)¹....................................................................................

- -

298,410

Total costs (R/kilogram)

............................................................................................

- -

631,149

Capital expenditure (R'000) ........................................................................................

- -

47,572

Ore Reserves (ounces) ................................................................................................

- - -

Operating costs per kilogram and total costs per kilogram are non-IFRS financial measures of performance that we use to determine cash generating capacities of the mines and to monitor performance of our mining operations. For a reconciliation to operating costs see Item 5A.:
“Operating Results” Under “Reconciliation of cash cost per kilogram, total costs and total costs per kilogram.”

On August 17, 2007, Emperor sold its 20% interest in the Porgera Joint Venture to Barrick and on October 22, 2007 we sold Emperor. As a result we report the Porgera, Tolukuma and Emperor information as discontinued operations and all other operations as continuing operations.
We have adjusted the results for prior reporting periods accordingly.

Revenue

Revenue is derived from the sale of gold. The following table analyzes the revenue per operation:

Year ended June 30,

2010

R'000

2009

R'000

2008

R'000

Continuing operations

Blyvoor ...............................................................................................................................

861,409 1,018,527 848,230

Ergo

...................................................................................................................................

294,325 24,178

Crown

................................................................................................................................

834,788 733,990 661,827

ERPM

................................................................................................................................

- 134,043 333,855

Total ................................................................................................................................... 1,990,522 1,910,738 1,843,912

Discontinued operations

Tolukuma............................................................................................................................

- -

89,235

Total ...................................................................................................................................

- -

89,235

Revenue from continuing operations increased from R1,910.7 million in fiscal 2009 to R1,990.5 million in fiscal 2010.

This increase was a consequence of the higher average gold price received by us of R265,332 per kilogram of gold produced,
compared to R248,019 per kilogram of gold produced in fiscal 2009. The increase in revenue due to the higher average gold price
received was offset by lower gold production at Blyvoor as a result of the seismic activity during the last quarter of fiscal 2009
and a month long wage related strike during the first quarter of fiscal 2010 at Blyvoor (discussed in more detail below under
“Gold production”), which resulted in production decreasing from 247,690 ounces in fiscal 2009 to 241,194 ounces in fiscal 2010.

Revenue from continuing operations increased from R1,843.9 million in fiscal 2008 to R1,910.7 million in fiscal 2009.

This increase was a consequence of the higher average gold price received by us of R248,019 per kilogram of gold produced,
compared to R192,472 per kilogram of gold produced in fiscal 2008. The increase in revenue due to the higher average gold price
received was offset by production problems experienced at Blyvoor and the cessation of ERPM’s underground operations
(discussed in more detail below under “Gold production”), which resulted in production decreasing from 308,005 ounces in fiscal
2008 to 247,690 ounces in fiscal 2009.

Ergo has been restated to include ErgoGold and the Ergo JV. ErgoGold started gold production at the end of the second quarter of fiscal 2009,

at which stage the Group owned 50% of the joint venture and the Mintails group owned the remaining 50%. Effective March 31, 2009 the Group
acquired Mintails’ 50% interest, resulting in the Group owning 100%. Effective May 1, 2010 the Group acquired Mintails’ 50% interest in the
Ergo JV, resulting in the Group owning 100%.

Crown has been restated to include the surface retreatment operation of ERPM. ERPM has therefore also been restated and comprises only its

underground operation.

On August 17, 2007, Emperor sold its 20% interest in the Porgera Joint Venture to Barrick and on October 22, 2007 we sold Emperor. As a

result we report the Tolukuma information as a discontinued operation and all other operations as continuing operations.

Gold production

The following table analyzes the attributable production per operation:

Production in Year ended June 30

2010 2009 2008

Ounces Kilograms Ounces Kilograms Ounces Kilograms

Continuing operations

Blyvoor ..........................................................

106,452 3,311

129,473 4,027 141,172 4,391

Surface operations........................................

29,226

909 40,575 1,262 37,359 1,162

Underground operations...............................

77,226 2,402 88,898 2,765

103,813 3,229

Ergo

..............................................................

35,332 1,099 3,666 114

Crown

...........................................................

99,410 3,092 95,616 2,974

110,021 3,422

ERPM

...........................................................

- 18,935

589 56,812 1,767

Surface operations........................................

- - - - - -

Underground operations...............................

- 18,935

589 56,812 1,767

Total attributable production .....................

241,194 7,502

247,690 7,704

308,005 9,580

Total South African Operations .................

241,194 7,502

247,690 7,704

308,005 9,580

Discontinued operations

Tolukuma.......................................................

- - - -

13,427

417

Total

Australasian

Operations

- - - -

13,427

417

For fiscal 2010, our total attributable gold production from continuing operations decreased by 6,496 ounces, or 3%, to

241,194 ounces from 247,690 ounces produced in fiscal 2009.

At Blyvoor, total production declined by 18% to 106,452 ounces from 129,473 ounces in fiscal 2009, reflecting a 13%

decrease in production from the underground operations to 77,226 ounces from 88,898 ounces in fiscal 2009 and a 28% decrease
in production from surface operations to 29,226 ounces from 40,575 ounces in fiscal 2009. The decrease in underground
production was as a result of lower recovered grades following seismic activity which damaged high-grade mining areas during
the last quarter of fiscal 2009. As a consequence, the grade recovered from underground operations decreased from 4.59g/t in
fiscal 2009 to 3.79g/t in fiscal 2010. A month long wage related strike during the first quarter of fiscal 2010 also contributed to the
decrease in total production. The decrease in the surface production is due to lower volumes recovered from lower grade tailings
material available and to the discontinuation of the treatment of uneconomic rock dump material.

At Ergo, fiscal 2010 was the first full year of production, since production commenced at the end of the second quarter of

fiscal 2009. Ergo has now reached a steady state of production, although engineering modifications at the Ergo plant to improve
recovered grades are still underway as at September 30, 2010. Ergo’s recovered grade improved from 0.05g/t in fiscal 2009 to
0.09g/t in fiscal 2010.

At Crown, there was a 4% increase in gold production to 99,410 ounces from 95,616 ounces in fiscal 2009 because of a

16% improvement in recoveries from 0.37g/t in fiscal 2009 to 0.43g/t in fiscal 2010. The increase was partly offset by a reduction
of throughput to 7,122,000 tonnes from 8,007,000 tonnes because of the continued impact of deposition constraints at Crown’s
deposition facility.

At ERPM, underground operations ceased in October 2008 and have been permanently halted. As a result ERPM had no

underground production in fiscal 2010, compared to 18,935 ounces in fiscal 2009.

For fiscal 2009, our total attributable gold production from continuing operations decreased by 60,315 ounces, or 20%, to

247,690 ounces from 308,005 ounces produced in fiscal 2008.

Ergo has been restated to include ErgoGold and the Ergo JV. ErgoGold started gold production at the end of the second quarter of fiscal 2009,

at which stage the Group owned 50% of the joint venture and the Mintails group owned the remaining 50%. Effective March 31, 2009 the Group
acquired Mintails’ 50% interest, resulting in the Group owning 100%. The Ergo JV has not yet produced gold and was a joint venture, where the
Group owned 50% and the Mintails group owned 50%. Effective May 1, 2010 the Group acquired Mintails’ 50% interest, resulting in the Group
owning 100%.

Crown has been restated to include the surface retreatment operation of ERPM. ERPM has therefore also been restated and comprises only its

underground operation.

On August 17, 2007, Emperor sold its 20% interest in the Porgera Joint Venture to Barrick and on October 22, 2007 we sold Emperor to 26

institutional investors drawing a close to our mining investments in Australasia. As a result we report the 2008 information relating to Tolukuma
as a discontinued operation and all other operations as continuing operations.

At Blyvoor, total production declined by 8% to 129,473 ounces from 141,172 ounces in fiscal 2008, reflecting a 14%

decrease in gold from the underground operations to 88,898 ounces from 103,813 ounces in fiscal 2008 and a 9% increase in gold
from surface sources to 40,575 ounces from 37,359 ounces in fiscal 2008. The decline was a result of the loss of seventeen
production days underground during the first half of the 2009 fiscal year as a result of the Section 54 closures imposed by the
DMR’s Safety Inspectorate following three fatalities, and included two days of mourning called by the National Union of
Mineworkers. In addition, in the third quarter of fiscal 2009, six production shifts were lost at No 5 Shaft following a lightning
strike at the shaft’s electrical sub-station. The increase in surface production is mainly as a result of an improvement in the grade
from 0.31g/t in fiscal 2008 to 0.37g/t in fiscal 2009.

At Ergo, gold production commenced at the end of the second quarter of fiscal 2009 and work on the elution plant was

completed in April 2009. While volume flows from the first circuit (the Benoni dump) were satisfactory, initial recoveries of
0.04g/t at the end of June 2009 were below project specifications. This required a number of engineering modifications.

At Crown, there was a 13% reduction in gold production to 95,616 ounces from 110,021 ounces in fiscal 2009 because of

a 21% decline in throughput to 8,007,000 tonnes from 10,094,000 tonnes. This reduction in throughput was intentional: it formed
part of the closure plan for the Crown Tailings Deposition Facility. This decrease was partly offset by an increase in grade from
0.34g/t to 0.37g/t in fiscal 2009. The higher grade in fiscal 2009 compared to fiscal 2008 was a result of higher grade material
from the Mennells and Top Star sites and higher grade remnants from the CMR site.

At ERPM, the underground operations ceased in October 2008 and have been permanently halted. As a result

underground production at ERPM decreased from 56,812 ounces in fiscal 2008 to 18,935 ounces in fiscal 2009.

A more detailed review of gold production at each of our operations is provided under Item 4D.: “Property, Plant and

Equipment.”

Cash costs

and total costs

per kilogram

Our operational focus is to increase production, improve productivity and control costs. For fiscal 2010, cash costs from our

continuing operations increased to R239,785 per kilogram of gold from R219,024 per kilogram of gold in fiscal 2009. Total costs
from our continuing operations decreased to R237,123 per kilogram of gold from R237,344 per kilogram of gold in fiscal 2009. The
increase in cash costs per kilogram of gold produced in fiscal 2010 was due to price increases in key consumables (labor,
consumables and electricity) and lower production. The decrease in total costs from continuing operations was due to R156.7 million
profit on disposal (placed into voluntary liquidation) of our foreign subsidiary companies, which were the holding companies of our
foreign operations.

For fiscal 2009, cash costs from our continuing operations increased to R219,024 per kilogram of gold from R156,891 per

kilogram of gold in fiscal 2008. Total costs from our continuing operations increased to R237,344 per kilogram of gold from
R183,488 per kilogram of gold in fiscal 2008. The increase in cash costs per kilogram of gold produced in fiscal 2009 was also due to
price increases in key consumables (labor, consumables and electricity) and lower production.

Reconciliation of cash costs per kilogram, total costs and total costs per kilogram

Cash costs of production include costs for all mining, processing, administration, royalties and production taxes, but

exclude depreciation, depletion and amortization, rehabilitation, retrenchment costs and corporate administration costs. Cash costs
per kilogram are calculated by dividing operating costs by kilograms of gold produced. Cash costs per kilogram have been
calculated on a consistent basis for all periods presented.

Total operating costs include cash costs of production, depreciation, retrenchment costs, depletion and amortization and

the accretion of rehabilitation, reclamation and closure costs.

Total costs, as calculated and reported by us, include total operating costs, plus other operating and non-operating

income, finance expenses and other operating and non-operating costs, but exclude taxation, minority interest, profit or loss from
associates and the cumulative effect of accounting changes. These costs are excluded as the mines do not have control over these
costs and they have little or no impact on the day-to-day operating performance of the mines. Total costs per kilogram are
calculated by dividing total costs by kilograms of gold produced. Total costs and total costs per kilogram have been calculated on
a consistent basis for all periods presented.

Cash costs per kilogram, total costs and total costs per kilogram are non - IFRS financial measures that should not be

considered by investors in isolation or as alternatives to operating costs, net profit/(loss) attributable to equity owners of the
parent, profit/(loss) before tax and other items or any other measure of financial performance presented in accordance with IFRS

Cash costs per kilogram is a non - IFRS financial measure of performance that we use to determine cash generating capacities of the mines and

to monitor performance of our mining operations. For a reconciliation to operating costs see Item 5A.: “Operating Results.”

Total costs per kilogram is a non - IFRS financial measure of performance that we use to determine cash generating capacities of the mines and

to monitor performance of our mining operations. For a reconciliation to operating costs see Item 5A.: “Operating Results.”

or as an indicator of our performance. While the Gold Institute has provided definitions for the calculation of cash costs, the
calculation of cash costs per kilogram, total costs and total costs per kilogram may vary significantly among gold mining
companies, and these definitions by themselves do not necessarily provide a basis for comparison with other gold mining
companies. However, we believe that cash costs per kilogram, total costs and total costs per kilogram are useful indicators to
investors and management of an individual mine's performance and of the performance of our operations as a whole as they
provide:

•

an indication of a mine’s profitability and efficiency;

•

the trend in costs;

•

a measure of a mine's margin per kilogram, by comparison of the cash costs per kilogram by mine to the price of gold;
and

•

a benchmark of performance to allow for comparison against other mines and mining companies.

A reconciliation of operating costs to total costs, cash costs per kilogram and total costs per kilogram, for each of the

three years ended June 30, 2010, 2009 and 2008 is presented below. In addition, we have also provided below details of the
amount of gold produced by each mine for each of those periods.

For the year ended June 30, 2010
(in R'000, except as otherwise noted)

Continuing Operations

Blyvoor

Ergo

Crown

ERPM

Other

Total South

African

Operations

Other-

Offshore

Operations

Total

Continuing

Operations

Operating costs

...............................................

888,180

258,971

615,731

30,788

5,196 1,798,866

1,798,866

Plus:

Depreciation..................................................... 32,616

95,418

61,005

1,452

278

190,769

Retrenchment costs.......................................... 10,925

4,029

5,173

20,127

Movement in provision for environmental
rehabilitation....................................................

1,246

578

(16,994)

(4,618)

(68,246)

(88,034)

Movement in gold in progress .........................

(33,766)

(5,215)

9,040

(29,941)

Total operating costs........................................

899,201

349,752

668,782

31,651

(57,599) 1,891,787

1,891,787

Plus:

(Reversal of impairments)/Impairments ..........

(12,514)

18,738

6,224

Administration expenses and general costs ..... 5,609

6,169

19,752

18,541

6,765

56,836

190

57,026

Finance income................................................

(36,556)

(814)

(4,879)

17,150

(19,980)

(45,079) (155,194)

(200,273)

Finance expenses ............................................ 11,730

2,574

5,931

36,799

(32,902)

24,132

Total costs .........................................................

879,984

357,681

677,072

104,141

(84,978) 1,933,900 (155,004) 1,778,896

Gold produced (ounces)..................................... 106,452

35,332

99,410

241,194

Gold produced (kilograms) ................................

3,311

1,099

3,092

7,502

Cash costs per kilogram (R per kilogram) .........

268,251

235,642

199,137

239,785

Total costs per kilogram (R per kilogram)......... 265,776

325,460

218,975

257,785

237,123

Mintails group owned the remaining 50%. Effective March 31, 2009 the Group acquired Mintails’ 50% interest, resulting in the Group owning 100%. Effective May 1, 2010 the Group acquired Mintails’ 50%
interest in the Ergo JV, resulting in the Group owning 100%.

Crown has been restated to include the surface retreatment operation of ERPM. ERPM has therefore also been restated and comprises only its underground operation.

Relates to other non-core operating entities within the Group.

Operating costs equate to cash costs of production.

For the year ended June 30, 2009
(in R'000, except as otherwise noted)

Continuing Operations

Blyvoor

Ergo

Crown

ERPM

Other

Total South

African

Operations

Other-

Offshore

Operations

Total

Continuing

Operations

Operating costs

...............................................

842,329

73,422

560,064

199,722 11,822

1,687,359

Plus:

Depreciation..................................................... 29,273

30,784

38,112

607 441

99,217

Retrenchment costs.......................................... -

30,681

4,241

34,922

Movement in provision for environmental
rehabilitation....................................................

(426)

(2,825)

11,002

(11,023) 22,817

19,545

Movement in gold in progress .........................

9,445

(11,232)

(5,231)

(7,018)

Total operating costs........................................

880,621

90,149

603,947

219,987 39,321

1,834,025

Plus:

Impairments ..................................................... -

121,474

53,012 (99,348)

75,138

Administration expenses and general costs ..... 16,719

2,810

19,980

16,592

18,662

74,763

8,820

83,583

Finance income................................................

(44,207)

(16)

(9,029)

(32,991) (120,752)

(206,995)

1,004

(205,991)

Finance expenses ............................................ 12,889

2,372

7,563

25,350

(16,749)

31,425

10,318

41,743

Total costs .........................................................

866,022

95,315

743,935

281,950 (178,866)

1,808,356

20,142

1,828,498

Gold produced (ounces).....................................

129,473

3,666

95,616

18,935

247,690

Gold produced (kilograms) ................................

4,027

114

2,974

589

7,704

Cash costs per kilogram (R per kilogram) .........

209,170

644,053

188,320

339,087 -

219,024

Total costs per kilogram (R per kilogram)......... 215,054

836,096

250,146

478,693

234,729

237,344

Mintails group owned the remaining 50%. Effective March 31, 2009 the Group acquired Mintails’ 50% interest, resulting in the Group owning 100%. The Ergo JV has not yet producing gold and was a joint
venture, where the Group owned 50% and the Mintails group owned 50%. Effective May 1, 2010 the Group acquired Mintails’ 50% interest, resulting in the Group owning 100%.

Crown has been restated to include the surface retreatment operation of ERPM. ERPM has therefore also been restated and comprises only its underground operation.

Relates to other non-core operating entities within the Group.

Operating costs equate to cash costs of production.

For the year ended June 30, 2008
(in R'000, except as otherwise noted)

Continuing Operations

Discontinued Operations

Blyvoor

Crown

ERPM

Other

Total South

African

Operations

Other-

Offshore

Operations

Total

Continuing

Operations

Porgera

Tolukuma

Other

Total

discontinued

operations

Operating costs

...............................................

697,281

459,703

330,789

15,242 1,503,015

- 1,503,015

107,381

17,056

124,437

Plus:

Depreciation..................................................... 22,671

24,273

21,544

589

69,077

348

506

854

Retrenchment costs..........................................

5,528

5,816

11,344

Movement in provision for environmental
rehabilitation.................................................... 958

20,334

10,976

(2,097)

30,171

3,868

151

4,019

Movement in gold in progress .........................

(14,373)

(1,354)

484

(15,243)

9,675

384

10,059

Total operating costs........................................

706,537

502,956

369,321

19,550 1,598,364

- 1,598,364

121,272

18,097

139,369

Plus:

Loss on derivative instruments ........................

433

433

Impairments .....................................................

69,804

(5,889)

63,915

46,718

46,718

Administration expenses and general costs .....

17,333

12,294

17,622

30,083

77,332

2,107

79,439

1,985

9,898

8,201

20,084

Finance income................................................

(5,960)

(10,796)

(2,716)

(64,754)

(84,226)

(7,749)

(91,975) (195,970)

375

192,555

(3,040)

Finance expenses ............................................

67,232

25,926

4,360

18,118

115,636

(7,568)

108,068

(7,144)

(4,745)

71,514

59,625

Total costs .........................................................

785,142

530,380

458,391

(2,892) 1,771,021

(13,210) 1,757,811 (201,129)

173,518

290,800

263,189

Gold produced (ounces).....................................

141,172

110,021

56,812

308,005

13,427

13,427

Gold produced (kilograms) ................................

4,391

3,422

1,767

9,580

417

417

Cash costs per kilogram (R per kilogram) .........

158,798

134,338

187,204

156,891

257,508

298,410

Total costs per kilogram (R per kilogram)......... 178,807

154,991

259,418

184,866

183,488

416,110

631,149

Crown has been restated to include the surface retreatment operation of ERPM. ERPM has therefore also been restated and comprises only its underground operation.

Relates to other non-core operating entities within the Group.

On August 17, 2007, Emperor sold its 20% interest in the Porgera Joint Venture to Barrick and on October 22, 2007 we sold Emperor. On March 30, 2008 we disposed of our 50.25% shareholding in NetGold

Services Limited (Netgold). As a result we report the Porgera, Tolukuma, Emperor and Netgold information as discontinued operations and all other operations as continuing operations. We have adjusted the
results for prior reporting periods accordingly.

Operating costs equate to cash costs of production.

Capital expenditure

During fiscal 2010, total capital expenditure (cash) relating to continuing operations was R194.0 million, compared to

R345.1 million in fiscal 2009, a decrease of 44%. Capital expenditure decreased, because most of the capital for Phase 1 of the
Ergo project was incurred during fiscal 2009. In fiscal 2010, Ergo spent R34.4 million for the installation and development of
infrastructure, Crown spent R29.6 million on the commencement of the Crown/Ergo pipeline project and R16.1 million on tailings
deposition site maintenance and vehicles and equipment, Blyvoor spent R79.6 million mainly for opening up and development and
equipment renewals. For a detailed summary of capital expenditure, see item 4D.: “ Property, Plant and Equipment”.

During fiscal 2009, total capital expenditure (cash) relating to continuing operations was R345.1 million, compared to

R251.1 million in fiscal 2008, an increase of 37%. Capital expenditure increased, mainly due to R178.4 million spent specifically
on Phase 1 of the Ergo project for installation and development of new infrastructure, R17.2 million for mining properties at ERPM,
R39.6 million went towards the completion of reclamation and ancillary equipment for Top Star, tailings deposition site
maintenance and installation of reclamation equipment for the recommencement of the 3A17 areas at Crown, R41.4 million for
development of infrastructure at Blyvoor and specifically for the Way Ahead project (WAP project) at a cost of R10.1 million. For a
detailed summary of capital expenditure, see item 4D.: “ Property, Plant and Equipment”.

Subsequent to June 30, 2010 and up to September 30, 2010 we spent R59.4 million on capital expenditure relating mainly

to:

• Blyvoor for opening up and development amounting to R14.5 million;

• Crown for the Crown/Ergo pipeline project amounting to R17.9 million;

• Ergo for construction and commissioning of the upgrading of the second CIL circuit amounting to R0.9 million and the

Brakpan tailings facility rehabilitation amounting to R7.6 million; and

• Zimbabwe exploration amounting to R2.0 million.

Ore Reserves

As at June 30, 2010, our Ore Reserves from continuing operations were estimated at 6.0 million ounces, as compared to

approximately 5.2 million ounces at June 30, 2009, representing a 15% increase. The increase is mainly due to an increase in the
Rand gold price. Excluding the effect of depletion, our Ore Reserves increased by 1.0 million ounces, or 19%. At June 30, 2009, our
Ore Reserves from continuing operations were estimated at 5.2 million ounces, as compared to approximately 4.5 million ounces at
June 30, 2008, representing a 16% increase. Excluding the effect of depletion, our Ore Reserves increased by 0.9 million ounces, or
20%.

We seek to increase our Ore Reserves through development and to acquire additional new Ore Reserves through

acquisitions as well as exploration.

Year ended June 30,

2010 2009 2008

Ounces Kilograms Ounces Kilograms Ounces Kilograms

‘000

Continuing operations

Blyvoor .........................................................

3,973

123,544

3,519

109,453

3,332

103,650

Crown ........................................................... 858

26,667 410

12,739

535

16,641

ERPM ........................................................... -

582

18,108

Ergo

............................................................. 1,196

37,192 1,291

41,697

1,906

Total Ore Reserves from continuing
operations .................................................... 6,027

187,403 5,220

163,889

4,510

140,305

Discontinued operations

Porgera Joint Venture ................................... -

- - -

Tolukuma...................................................... -

108

3,354

Total Ore Reserves from discontinued
operations .................................................... -

- 108 3,354

Our Ore Reserves presented in Item 4B.: “Business Overview” and above are prepared using three year average gold prices

at the time of reserve determination. For purposes of our financial statements, depreciation and impairment of property, plant and
equipment is determined based upon our "recoverable minerals", which means proven and probable ore reserves, which are
calculated using our life of mine business plans and a gold price at the end of each financial year.

Application of critical accounting policies

Some of our significant accounting policies require the application of significant judgment by management in selecting the

appropriate assumptions for calculating financial estimates. By their nature, these judgments are subject to an inherent degree of
uncertainty and are based on our historical experience, terms of existing contracts, management's view on trends in the gold mining
industry and information from outside sources.

Management believes the following critical accounting policies involve the more significant judgments and estimates used

in the preparation of our consolidated financial statements and could potentially impact our financial results and future financial
performance:

• Property, plant and equipment

• Impairment of property, plant and equipment

• Deferred income and mining taxes

• Reclamation and environmental costs

• Post-retirement medical benefits

• Financial instruments

Management has discussed the development and selection of each of these critical accounting policies with the Board of

Directors and the Audit Committee, both of which have approved and reviewed the disclosure of these policies. Our significant
accounting policies relating to our accounting estimates and judgments are described in more detail in note 1 to the consolidated
financial statements. Refer to Item 18.: “Financial statements’’. This discussion and analysis should be read in conjunction with the
consolidated financial statements and related notes included in Item 18.: “Financial statements’’.

Property, plant and equipment

Actual expenditures incurred for mineral property interests, mine development costs, mine plant facilities and equipment are

capitalized to the specific mine to which the cost relates. Depreciation is calculated on a mine-by-mine basis using the units of
production method. Other assets are depreciated using the straight-line method over the expected life of these assets. Under the units
of production method, we estimate the depreciation rate based on actual production over total Proven and Probable Ore Reserves of
the particular mine, which are calculated using our life of mine business plans and a gold price at the end of each financial year.
This rate is then applied to actual costs capitalized to date to arrive at the depreciation expense for the period. Proven and Probable
Ore Reserves of the particular mine reflect estimated quantities of economically and legally recoverable reserves. Changes in
management’s estimates of the quantities of economically recoverable reserves impact depreciation on a prospective basis. The
estimate of the total reserves of our mines could be materially different from the actual gold mined due to changes in the factors used
in determining our Ore Reserves, such as the gold price, foreign currency exchange rates, labor costs, engineering evaluations of
assay values derived from sampling of drill holes and other openings. Any change in management’s estimate of the total Proven and
Probable Ore Reserves would impact the depreciation charges recorded in our consolidated financial statements. The prevailing
market price of gold at the end of the financial year was R208,287, R236,227 and R306,081 per kilogram for the fiscal years
ended June 30, 2008, 2009 and 2010, respectively.

Ergo’s Ore Reserves include the Elsburg and Benoni tailings complexes which are being processed by Ergo, however the mining rights for these tailings are owned by ERPM.

Impairment of property, plant and equipment

The carrying amounts of assets, other than inventories and deferred tax assets are reviewed at each statement of financial

position date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount
is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to
sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. Future cash flows are estimated
based on quantities of recoverable minerals, expected gold prices, production levels and cash costs of production, all based on life
of mine business plans. The term “recoverable minerals” means proved and probable ore reserves, which are calculated using our
life of mine business plans and a gold price at the end of each financial year. The prevailing market price of gold at the end of the
financial year was R208,287, R236,227 and R306,081 per kilogram for the fiscal years ended June 30, 2008, 2009 and 2010,
respectively. For the purpose of impairment testing, assets are grouped together into the smallest group of assets which generates
cash inflows from continuing use that is largely independent of the cash inflows of other assets or groups of assets, or the cash-
generating unit. An impairment loss is recognized directly against the carrying amount of the asset whenever the carrying amount of
an asset, or its cash generating unit, exceeds its recoverable amount. Impairment losses are recognized in profit or loss.

The recoverable amount of property, plant and equipment is generally determined utilizing discounted future cash flows. We

also consider such factors as our market capitalization, the quality of the individual ore body and country risk in determining the
recoverable amount. During fiscal 2010, R6.2 million was recorded as impairment and during fiscal 2009 and 2008, R72.4 million
and R116.5, respectively, were recorded as impairment by applying these principles. In fiscal 2010, we calculated the recoverable
amount based on updated life-of-mine business plans, a gold price of R311,636 per kilogram in year one escalating at 5.8% per
annum, and a discount rate of 13.7%. With a 10% reduction in the gold price to R280,472 per kilogram, an impairment of R731.6
million would be raised, or at an increase in the discount rate of 0.6 percentage points to 14.3%, the group would start to raise an
impairment of the mining assets. The increase in discount rate from 12.5% in fiscal 2009 to 13.7% in fiscal 2010, was as a result of
the increase in the South African market risk premium which increased from 8.0% to 11.6% and had been offset by a decrease in the
debt interest rate (after adjusting for the impact of taxation) from 9.36% to 7.2%. The decrease in the escalation rate from 7.42% in
fiscal 2009 to 5.8% in fiscal 2010 was a result of lower inflation rates from 6.96% (CPI) down to 4.2% (CPI).

As at June 30, 2010, the net asset value as per the statement of financial position amounting to R1,650.0 million, exceeded

the company’s market capitalization amounting to R1,312.5 million. This is an indicator of possible impairment in accordance with
paragraph 12 of IAS 36 – Impairment of assets (International Financial Reporting Standards (IFRS)). Management has assessed the
recoverable amounts of the mining assets through each operation’s respective life-of-mine plans, using the value in use method and
the assumptions mentioned in the aforementioned paragraph, and determined that no impairment is required.

Deferred income and mining taxes

Deferred taxation is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for

financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary
differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither
accounting nor taxable profit, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that it
is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary
differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to
the temporary differences, based on the expected manner of realization or settlement of the carrying amount of assets and liabilities,
and based on the laws that have been enacted or substantively enacted by the reporting date.

The amount recognized as a deferred tax asset is generally determined utilizing discounted future cash flows. We consider

all factors that could possibly affect the probability that future taxable profit will be available against which unused tax credits can be
utilized. These factors included profitability of the operations and a higher gold price. The amount recognized as a deferred tax asset
is sensitive to the current gold spot price. As at June 30, 2010 we recognized a deferred tax asset of R140.7 million, (June 30, 2009:
R165.1 million, and June 30, 2008: R81.6 million). The amount recognized at June 30, 2010 is based on a future gold price received
of R311,636 per kilogram in year one, escalating at an average of 5.8% per annum. At a 10% lower gold price received of R280,472
per kilogram, there will be no reduction in the deferred tax asset. Ergo is still a new project, however its performance for the current
year has improved from the prior year and is expected to be sustainable in the foreseeable future. Should Ergo’s performance not be
sustainable, it could impact the related deferred tax asset negatively.

Reclamation and environmental costs

The provision for environmental rehabilitation (which includes restoration costs) represents the cost that will arise from

rectifying damage caused before production commenced. Accordingly an asset is recognized and included within mining properties.
Provisions for environmental rehabilitation are provided at the present value of the expenditures expected to settle the obligation,
using estimated cash flows based on current prices. The unwinding of the obligation is included in profit or loss. Estimated future
costs of environmental rehabilitation are reviewed regularly and adjusted as appropriate for new circumstances or changes in law or
technology. Changes in estimates are capitalized or reversed against the relevant asset. Gains or losses from the expected disposal of
assets are not taken into account when determining the provision.

Estimated provisions for environmental rehabilitation, comprising pollution control rehabilitation and mine closure, are

based on our environmental management plans in compliance with current technological, environmental and regulatory requirements.
An average discount rate of 8.95%, average inflation rate of 5.76% and expected life of mines according to the life-of-mine plans
were utilized in the calculation of the estimated net present value of the rehabilitation liability (fiscal 2009: average discount rate of
8.25%, average inflation rate of 5.7% and fiscal 2008: average discount rate of 11.0% and inflation rate of 8.9%). During fiscal 2010
there was a net increase in the provision of R6.4 million and due to the acquisition of the remaining 50% interest in the Ergo JV an
increase amounting to R79.0 million (during fiscal 2009 there was a net increase in our provision of R1.9 million). Charges to profit
or loss for the environmental rehabilitation of R88.0 million (benefit raised which includes the transfer of liabilities to the amount of
R63.4 million and R4.8 million relating to the disposal of the mining rights of Durban Roodepoort Deep and West Witwatersrand
Gold Mine (Pty) Limited, respectively), R19.5 million and R34.2 million were raised in fiscal 2010, 2009 and 2008, respectively.
Unwinding of the provisions amounting to R10.8 million, R9.8 million and R4.7 million was recorded in fiscal 2010, 2009 and 2008,
respectively.

In South Africa, annual contributions are made to dedicated Rehabilitation Trust Funds, which are to be used to fund the

estimated cost of rehabilitation during and at the end of the life of the relevant mine.

Post-retirement medical benefits

Post-retirement medical benefits in respect of qualifying employees are recognized as an expense over the expected

remaining service lives of relevant employees. We have an obligation to provide medical benefits to certain of our pensioners and
dependants of ex-employees. These liabilities are provided in full, calculated on an actuarial basis. Periodic valuation of these
obligations is carried out by independent actuaries using appropriate mortality tables, long-term estimates of increases in medical
costs and appropriate discount rates. Actuarial gains and losses are recognized immediately in profit or loss. Assumptions used to
determine the liability include a discount rate, health cost inflation rate, real discount rate, retirement age, spouse age gap,
continuation at retirement and proportion married at retirement. At June 30, 2010 a provision of R12.5 million (June 30, 2009:
R42.5 million, June 30, 2008: R21.5 million) for post-retirement medical benefits has been raised. During fiscal 2010, we
benefitted R29.7 million (expensed 2009: R21.0 million; 2008: R2.5 million) relating to these post-retirement medical benefits.
The benefit in fiscal 2010 was brought about by an actuarial valuation after management revised their assumptions used in this
provision as a result of a project initiated during fiscal 2010 to optimize the synergies of our surface retreatment operations and
the resulting possibility of a settlement of existing post retirement medical benefits. An independent legal opinion was obtained in
this regard. While we believe that these assumptions are appropriate, significant changes in the assumptions may materially affect
post-retirement obligations as well as future expenses, which may have an impact on earnings in the periods where the changes in
the assumptions occur.

Financial instruments

Financial instruments recognized on the statement of financial position include investments, trade and other receivables,

cash and cash equivalents, long- and short-term interest-bearing borrowings, trade and other payables, and bank overdrafts.
Financial instruments are initially recognized at fair value and include any directly attributable transaction costs, except those
financial instruments measured at fair value through profit or loss.

If the value of the financial instrument cannot be obtained from an active market, we have established fair value by using

valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are
substantially the same, discounted cash flow analysis and option pricing models, refined to reflect the issuer’s specific
circumstances. Preference shares are measured at amortized cost based on expected future discounted cash flows. The original risk
adjusted discount rate of 13% is used when estimating the future liability and are re-measured on an annual basis. This original
risk adjusted discount rate is replaced with a risk adjusted market rate to determine a fair value on an annual basis.

Operating results

Comparison of financial performance for the fiscal year ended June 30, 2010 with fiscal year ended June 30, 2009

Revenue

The following table illustrates the year-on-year change in revenue from continuing operations by evaluating the

contribution of each segment to the total change on a consolidated basis for fiscal 2010 in comparison to fiscal 2009:

Impact of change in volume

R’000

Total

revenue

2009

Acquisitions

Internal

growth/

(decline)

Impact of

change in

price

Net change

Total

revenue

2010

Blyvoor ...........................................

1,018,527

(181,094) 23,976 (157,118) 861,409

Ergo

...............................................

24,178 -

208,906

61,241 270,147 294,325

Crown

............................................

733,990

29,123

71,675 100,798 834,788

ERPM

............................................

134,043

(134,043)

Total Operations ...........................

1,910,738

(77,108)

156,892

79,784

1,990,522

Revenue for fiscal 2010 increased by R79.8 million, or 4.2%, to R1,990.5 million, primarily due to the higher gold price

received. The average gold price increased from R248,019 per kilogram in fiscal 2009 to R265,332 per kilogram in fiscal 2010.
The impact of the increase in the gold price was offset by the decrease in production at ERPM due to its underground operation
ceasing production in October 2008 and due to a decrease in production at Blyvoor as a result of the seismic events during the last
quarter of fiscal 2009 and the month-long labor strike.

Operating costs

The following table illustrates the year-on-year change in operating costs from continuing operations by evaluating the

contribution of each segment to the total change on a consolidated basis for fiscal 2010 in comparison to fiscal 2009:

Impact of change in

volume

R’000

Total

operating

costs

2009

Acquisit

ions

Internal

growth/

(decline)

Impact of

change in

costs Net change

Total

operating

costs

2010

Blyvoor ..............................................

842,329 -

(149,766) 195,617 45,851 888,180

Ergo

..................................................

73,422 -

634,392

(448,843) 185,549 258,971

Crown

...............................................

560,064 -

22,222

33,445 55,667 615,731

ERPM

...............................................

199,722 -

(168,934) -

(168,934) 30.788

Other

.................................................

11,822 -

(6,626)

(6,626) 5,196

Total ..................................................

1,687,359 -

337,914

(226,407)

111,507

1,798,866

The following table lists the major components of operating costs for each of the years set forth below:

Years ended June 30,

Costs

2010

2009

Labor.............................................................................................................................................. 34%

39%

Contractor services ........................................................................................................................ 12%

11%

Consumables and other ................................................................................................................ 38%

37%

Electricity and water...................................................................................................................... 16%

13%

Ergo has been restated to include ErgoGold and the Ergo JV. ErgoGold started gold production at the end of the second quarter of fiscal 2009,

Crown has been restated to include the surface retreatment operation of ERPM. ERPM has therefore also been restated and comprises only of

its underground operation.

Ergo has been restated to include ErgoGold and the Ergo JV. ErgoGold started gold production at the end of the second quarter of fiscal 2009,

Crown has been restated to include the surface retreatment operation of ERPM. ERPM has therefore also been restated and comprises only its

underground operation.

Relates to non-operating entities within the Group.

As gold mining in South Africa is very labor intensive, labor costs and contractor services are one of the largest

components of operating costs. Operating costs are linked directly to the level of production of a specific fiscal year. Operating
costs in fiscal 2010 increased by 6.6% to R1,798.9 million compared to operating costs of R1,687.4 million in fiscal 2009. This
increase was primarily attributable to Ergo which started its operations during November 2008 and therefore had a full twelve
months of production during fiscal 2010. This was offset by the cessation of ERPM’s underground operation during fiscal 2009.

At Blyvoor operating costs increased from R842.3 million in fiscal 2009 to R888.2 million in fiscal 2010, with a decrease in

volume from 129,473 ounces to 106,452 ounces produced, as a result of the seismic events during the last quarter of fiscal 2009 and
a month-long wage related labor strike during the second quarter of fiscal 2010. Operating costs at Ergo were R259.0 million in
fiscal 2010, representing operating costs for the first full twelve months of production. Operating costs at Crown were R615.7 million
in fiscal 2010, compared to R560.1 million in fiscal 2009. The increase in Crown’s operating costs was due to wage increases and
higher electricity tariffs. At ERPM there were no operating costs relating to underground production during fiscal 2010.

Rehabilitation provision and amounts contributed to environmental trust funds

As of June 30, 2010, we estimate our total rehabilitation provision, being the discounted estimate of future costs, to be

R420.6 million as compared to R412.5 million at June 30, 2009. The increase in fiscal 2010 related to the acquisition of the
remaining 50% interest in the Ergo JV which was partially offset by a reduction in the rehabilitation provision of R4.8 million and
R63.4 million due to the Durban Roodepoort and West Witwatersrand Gold Mines (Pty) Ltd liabilities being taken over by
Mintails SA Limited, respectively. In fiscal 2010 a benefit of R88.0 million (fiscal 2009: R19.5 million expense) including an
unwinding of the discount of R10.8 million were recorded (fiscal 2009: R9.8 million) in the statement of comprehensive income.

A total of R126.1 million was invested in our various environmental trust funds as at the end of fiscal 2010, as compared

to R129.7 million for fiscal 2009. The decrease is attributable to an impairment of the rehabilitation trust fund relating to the West
Witwatersrand Gold Mines (Pty) Limited amounting to R18.7 million, as a result of the transfer of the relating environmental
rehabilitation provision. The shortfall between the trust funds and the estimated provisions is expected to be financed by ongoing
financial contributions over the remaining production life of the respective mining operations.

Depreciation

Depreciation charges relating to our continuing operations were R190.8 million for fiscal 2010 compared to

R99.2 million for fiscal 2009. The increase is mainly attributable to additional assets acquired during the last quarter of fiscal 2009
by Ergo, therefore fiscal 2010 includes a full 12 months of depreciation for these assets, the acquisition of the remaining 50%
interest in the Ergo JV during the last quarter of fiscal 2010, and the decrease in the Crown life-of-mine for purposes of
depreciation due to limited deposition capacity in fiscal 2009.

Retrenchment costs

Retrenchment costs relating to our continuing operations decreased to R20.1 million in fiscal 2010 from R34.9 million in

fiscal 2009. In fiscal 2010, these costs related to retrenchments at Blyvoor amounting to R10.9 million, retrenchments at ERPM
amounting to R4.0 million and retrenchments at our corporate head office amounting to R5.2 million. These retrenchments were
due to various cost reduction initiatives implemented during fiscal 2010, which included the right-sizing initiative at Blyvoor and
the closure of ERPM’s underground operation.

Impairments

In fiscal 2010, an impairment reversal of R12.5 million was made against Crown’s property, plant and equipment due to

the extension of the Knights plant’s life-of-mine. An impairment was recorded amounting to R18.7 million against the West
Witwatersrand Gold Mines (Pty) Limited rehabilitation trust fund, due to the disposal of the relating mining rights over the West
Wits mining lease area.

Administration expenses and general costs

The administration expenses and general costs relating to our continuing operations decreased in fiscal 2010 to

R57.0 million from R83.6 million in fiscal 2009, a decrease of R26.6 million. The decrease was mainly due to an insurance claim
received by Blyvoor amounting to R14.1 million and cost reduction initiatives undertaken by management.

Finance income

Finance income from our continuing operations decreased from R206.0 million in fiscal 2009 to R200.3 million in fiscal

2010. The majority of the decrease in fiscal 2010 related to the decrease in interest received on our cash and cash equivalents
which were significantly lower in fiscal 2010 than in fiscal 2009. In addition, finance income for fiscal 2010 included a R156.7
million profit on disposal of subsidiaries and R14.6 million net gain on the preference shares carried at amortized cost due to an
increase in the repayment period.

Finance expenses

Finance expenses from our continuing operations decreased from R41.7 million in fiscal 2009 to R24.1 million in fiscal

2010. A decrease in the unwinding of discount on financial liabilities measured at amortized cost and unrealized foreign exchange
losses were the main reasons for the decrease from fiscal 2009 to fiscal 2010.

Income tax

The net tax charge relating to our continuing operations of R8.3 million for fiscal 2010 comprises a current taxation

charge of R8.5 million, a deferred tax benefit of R2.0 million and secondary tax on companies charge as a result of the dividend
declared amounting to R1.8 million. This compares to a net tax benefit relating to our continuing operations of R28.4 million for
fiscal 2009, which comprises a current taxation charge of R46.2 million and a deferred tax benefit of R74.6 million. This
compares to a net tax benefit relating to our continuing operations of R68.3 million for fiscal 2008 comprising a current taxation
charge of R13.3 million and a deferred tax benefit of R81.6 million. The increase in the deferred tax benefit in fiscal 2009 was as
a result of the recognition of estimated tax losses at our operations and other temporary differences which were not recognized
previously. On the statement of financial position this deferred tax asset raised was offset by a deferred tax liability raised on the
acquisition of ErgoGold amounting to R185.7 million. The decrease in the deferred tax benefit in fiscal 2010, was due to no
acquisitions or transactions with similar tax implications taking place during fiscal 2010.

Comparison of financial performance for the fiscal year ended June 30, 2009 with fiscal year ended June 30, 2008

Revenue

The following table illustrates the year-on-year change in revenue from continuing operations by evaluating the

contribution of each segment to the total change on a consolidated basis for fiscal 2009 in comparison to fiscal 2008:

Impact of change in volume

R’000

Total

revenue

2008

Acquisitions

Internal

growth/

(decline)

Impact of

change in

price

Net change

Total

revenue

2009

Blyvoor .........................................................

848,230

(70,316)

240,613

170,297

1,018,527

Ergo

.............................................................

24,178

Crown

..........................................................

661,827

(86,645)

158,808

72,163

733,990

ERPM

..........................................................

333,855

(222,570)

22,758

(199,812)

134,043

Total Operations

................................ 1,843,912

24,178

(379,531)

422,179

66,826

1,910,738

Revenue for fiscal 2009 increased by R66.8 million, or 3.6%, to R1,910.7 million, primarily due to the higher gold price

received. The average gold price received by us increased from R192,472 per kilogram in fiscal 2008 to R248,019 per kilogram in
fiscal 2009. The impact of the increase in the gold price was offset by the decrease in production at ERPM due to its underground
operation ceasing production in October 2008.

Operating costs

The following table illustrates the year-on-year change in operating costs from continuing operations by evaluating the

contribution of each segment to the total change on a consolidated basis for fiscal 2009 in comparison to fiscal 2008:

Ergo has been restated to include ErgoGold and the Ergo JV. ErgoGold started gold production at the end of the second quarter of fiscal 2009,
at which stage the Group owned 50% of the joint venture and the Mintails group owned the remaining 50%. Effective March 31, 2009 the Group
acquired Mintails’ 50% interest, resulting in the Group owning 100%. Effective May 1, 2010 the Group acquired Mintails’ 50% interest in the
Ergo JV, resulting in the Group owning 100%.

Crown has been restated to include the surface retreatment operation of ERPM. ERPM has therefore also been restated and comprises only its
underground operation.

Impact of change in

volume

R’000

Total

operating

costs

2008

Acquisitions

Internal

growth/

(decline)

Impact of

change in

costs

Net change

Total

operating

costs

2009

Blyvoor ......................................................... 697,281

(57,802)

202,850

145,048

842,329

Ergo

.............................................................

73,422

Crown

.......................................................... 459,703

(60,183)

160,544

100,361

560,064

ERPM

.......................................................... 330,789

(220,526)

89,459

(131,067)

199,722

Other

............................................................ 15,242

(3,420)

11,822

Total

.............................................................

1,503,015

73,422

(338,511)

449,433

184,344

1,687,359

The following table lists the major components of operating costs for each of the years set forth below:

Years ended June 30,

Costs

2009

2008

Labor..............................................................................................................................................

39%

41%

Contractor services ........................................................................................................................

11%

Consumables and other ................................................................................................................

37%

35%

Electricity and water......................................................................................................................

13%

As gold mining in South Africa is very labor intensive, labor costs and contractor services are the largest components of

operating costs. Operating costs are linked directly to the level of production of a specific fiscal year. Operating costs in fiscal
2009 increased by 12% to R1,687.4 million compared to operating costs of R1,503.0 million in fiscal 2008. This increase was
primarily attributable to Ergo which started its operations during November 2008 and cost increases at Blyvoor which are
explained below.

At Blyvoor, operating costs increased from R697.3 million in fiscal 2008 to R842.3 million in fiscal 2009, with a decrease

in volume from 141,172 ounces to 129,473 ounces produced, due to the loss of seventeen production days underground during the
first half of the 2009 fiscal year because of Section 54 closures imposed by the DMR’s (now the Department of Mineral
Resources) Safety Inspectorate following three fatalities, and two days of mourning called by the National Union of Mineworkers
and in the third quarter of fiscal 2009, six production shifts were lost at No 5 Shaft following a lightning strike at the shaft’s
electrical sub-station. Operating costs at Ergo were R73.4 million in fiscal 2009, representing operating costs from November 2008.
Operating costs at Crown were R560.1 million in fiscal 2009, compared to R459.7 million in fiscal 2008. At ERPM operating costs
decreased from R330.8 million in fiscal 2008 to R199.7 million in fiscal 2009, due to the underground operations ceasing production
in October 2008.

Rehabilitation provision and amounts contributed to environmental trust funds

As of June 30, 2009, we estimate our total rehabilitation provision, being the discounted estimate of future costs, to be

R412.5 million as compared to R381.3 million at June 30, 2008. The increase in fiscal 2009 related to a quantum increase due to
vegetation costs and a quantum increase due to the deterioration of the 2L24 / 1L24 – 28 dumps. A movement in the rehabilitation
provision of R19.5 million (fiscal 2008: R34.2 million) and an unwinding of the discount of R9.8 million was recorded in fiscal
2009 (fiscal 2008: R4.7 million).

A total of R129.7 million was invested in our various environmental trust funds as at the end of fiscal 2009, as compared

to R110.8 million for fiscal 2008. The increase is attributable to investment growth and additional contributions made during the
year under review. The shortfall between the trust funds and the estimated provisions is expected to be financed by ongoing
financial contributions over the remaining production life of the respective mining operations.

Crown has been restated to include the surface retreatment operation of ERPM. ERPM has therefore also been restated and comprises only its
underground operation.

Relates to non-operating entities within the Group.

Depreciation

Depreciation charges relating to our continuing operations were R99.2 million for fiscal 2009 compared to R69.1 million

for fiscal 2008. The increase is mainly attributable to additional assets acquired and increased capital expenditure at Ergo during
the year.

Retrenchment costs

Retrenchment costs relating to our continuing operations increased to R34.9 million in fiscal 2009 from R11.3 million for

fiscal 2008. In fiscal 2009, these costs related to retrenchments at ERPM at a cost of R30.7 million and retrenchments at our
corporate head office, at a cost of R4.2 million. These retrenchments were due to cost reduction initiatives implemented during the
year and the closure of ERPM’s underground operations in October 2008.

Impairments

In fiscal 2009, impairments were recorded, relating to the underground mining assets at ERPM amounting to R53.0

million and for Crown R19.4 million because of a restriction of deposition capacity. This compares to impairments in fiscal 2008
relating to the underground mining assets at ERPM amounting to R69.8 million. These impairments were due to the recoverable
amount represented by the value in use of these assets being less than their carrying amounts due to the closure of the underground
operations.

Administration expenses and general costs

The administration expenses and general costs relating to our continuing operations increased in fiscal 2009 to

R83.6 million compared to R79.4 million in fiscal 2008, an increase of R4.2 million. The increase was mainly due to our focus on
Ergo whose operations commenced in November 2008.

Finance income

Finance income from our continuing operations increased from R92.0 million in fiscal 2008 to R206.0 million in fiscal

2009. The majority of the increase in fiscal 2009 related to interest received on our significant cash and cash equivalents, which
we carried for a longer period in fiscal 2009 compared to fiscal 2008. In addition, finance income for fiscal 2009 included a R62.0
million net gain on the preference shares carried at amortized cost due to an increase in the repayment period and R53.0 million
negative goodwill on the acquisition of the remaining 50% interest in ErgoGold.

Finance expenses

Finance expenses from our continuing operations decreased from R108.1 million in fiscal 2008 to R41.7 million in fiscal

2009. A net loss on the re-measurement of financial liabilities carried at amortized cost of R83.7 million in fiscal 2008 was the
main reason for the decrease from fiscal 2008 to fiscal 2009.

Income tax

The net tax benefit relating to our continuing operations of R28.4 million for fiscal 2009 comprises a current taxation

charge of R46.2 million and a deferred tax benefit of R74.6 million. This compares to a net tax benefit relating to our continuing
operations of R68.3 million for fiscal 2008 comprising a current taxation charge of R13.3 million and a deferred tax benefit of
R81.6 million. The increase in the deferred tax benefit was as a result of the recognition of estimated tax losses at our operations
and other temporary differences which were not recognized previously. On the statement of financial position this deferred tax
asset raised was offset by a deferred tax liability raised on the acquisition of ErgoGold amounting to R185.7 million.

5B. LIQUIDITY AND CAPITAL RESOURCES

Operating activities

Net cash of R53.6 million was generated by operating activities for fiscal 2010 as compared to net cash generated by

operating activities of R208.2 million for fiscal 2009 and R182.6 million for fiscal 2008. During fiscal 2010, the net working capital
movement represented an outflow of cash of R31.5 million, compared to an inflow of R41.4 million in fiscal 2009 and an inflow of
R22.2 million in fiscal 2008. Cash generated from operating activities decreased due to lower production at Blyvoor’s underground
operation, as a result of the seismic events during the last quarter of fiscal 2009 which damaged some of its higher-grade panels and a
month long wage related strike during the first quarter of fiscal 2010. In addition, costs increased due to a 32% increase in July 2009
and a further 25% increase in March 2010 in electricity tariffs as well as wage increases. Inventory increased because of finished
stock (bullion) which was only sold shortly after June 30, 2010, amounting to R36.4 million (2009: Rnil).

Investing activities

Net cash utilized by investing activities amounted to R226.4 million in fiscal 2010 compared to R593.4 million in fiscal

2009 and R1,531.0 million generated in fiscal 2008.

In fiscal 2010, cash utilized by investing activities mainly consisted of R194.0 million in additions to property, plant and

equipment, and R40.4 million for the acquisition of the remaining 50% of Ergo Mining (Pty) Limited. Cash utilized by investing
activities in fiscal 2009, mainly consisted of R345.1 million in additions to property, plant and equipment and R277.8 million for the
acquisition of the remaining 50% of ErgoGold. Cash generated by investing activities during fiscal 2008 mainly consisted of a cash
inflow on disposal of Porgera, net of cash disposed, of R1,936.7 million, a cash outflow on disposal of Netgold and Emperor, net of
cash disposed, of R121.7 million along with capital expenditure of R286.7 million and contributions to environmental trust funds of
R26.5 million.

Total capital expenditure (cash) for fiscal 2010 was R194.0 million. Capital expenditure was predominantly on Ore Reserve

development, new infrastructure and new mining equipment at our operations. Significant continuing capital projects for fiscal 2010
included:

• Blyvoor for opening up and development amounting to R48.9 million;

• Crown for long-lead items relating to Crown/Ergo pipeline amounting to R29.6 million; and

• Ergo for construction and commissioning of the second feeder pipeline from the Elsburg Tailings Complex to the Brakpan

plant amounting to R34.4 million.

Total capital expenditure (cash) for fiscal 2009 was R345.1 million. Capital expenditure was predominantly on Ore Reserve

development, new infrastructure and new mining equipment at our operations. Significant continuing capital projects for fiscal 2009
included:

• Development of infrastructure at Blyvoor at a cost of R41.4 million and specifically for the WAP project at a cost of R10.1

million (refer Item 4B ‘Business Overview’);

• Tailings deposition site maintenance, 3A17 dump reclamation and Top Star at Crown at a cost of R39.6 million;

• Mining properties development at ERPM at a cost of R17.2 million;

• Installation and development of infrastructure at Ergo amounting to R178.4 million.

Total capital expenditure (cash) for fiscal 2008 was R286.7 million (including discontinued operations). Capital expenditure

was predominantly on Ore Reserve development and new underground mining equipment at all operations. Significant continuing
capital projects for fiscal 2008 included:

• Ore Reserve development specifically for the WAP project at Blyvoor at a cost of R74.8 million;

• Installation of new pipelines, 3L2 dump reclamation and Top Star at Crown at a cost of R42.1 million;

• Ore Reserve development and improvement of infrastructure at ERPM at a cost of R30.1 million;

• Installation and development of infrastructure at Ergo amounting to R104.1 million.

We anticipate increasing our capital expenditure in fiscal 2011 by about 159% from our capital expenditure for fiscal

2010 on continuing operations. We expect to incur R501.7 million of capital expenditure on mining equipment and development,
upgrading existing underground operations and upgrading current metallurgical plants and tailings facilities as follows:

• Blyvoor – R99.8 million;

• Crown – R248.6 million;

• ERPM – R0.4 million;

• Ergo – R144.1 million;

• Exploration in Zimbabwe – R8.8 million.

Financing activities

Net cash inflow from financing activities was R7.8 million in fiscal 2010 compared to a net cash outflow of R85.8 million in

fiscal 2009. In fiscal 2008 the net cash outflow from financing activities was R840.0 million.

During fiscal 2010, we issued 6,620,413 shares for cash consideration of R29.9 million and we issued 262,663 shares to the

share option scheme for a consideration of R1.0 million. Costs relating to these share issues were incurred, amounting to R2.0
million. A dividend of R19.0 million was paid and there was a repayment of borrowings amounting to R2.1 million.

During fiscal 2009, we issued 1,429,715 shares to the share option scheme for a consideration of R6.7 million, a dividend of

R37.7 million was paid and there was a repayment of borrowings amounting to R54.4 million

During fiscal 2008, we issued 6,229,607 shares for proceeds of R30.3 million. Of these shares, we issued 5,800,000 shares

to Investec raising R28.0 million in settlement of financing facilities and a portion of the Convertible Loan Notes and 429,607 shares
to the share option scheme for a consideration of R2.3 million. We also repaid borrowings of R819.9 million and made a capital
distribution of R74.1 million to the non-controlling interest in Emperor during fiscal 2008.

Borrowings and funding

Our external sources of capital include the issuance of debt, bank borrowings, loan notes and the issuance of equity

securities, which include the following:

Effective July 31, 2007 and March 1, 2008, Ergo entered into two separate loan facilities, amounting to R85.3 million, with

AngloGold Ashanti Limited for the purchase of the remaining movable and immovable assets of Ergo. The facilities were repayable
in equal monthly installments over 23 and 19 months, respectively, of which the final installment was made during fiscal 2010. The
loans bore interest at the prime lending rate, which was 10.0% at June 30, 2010 and 11.0% at June 30, 2009. The loan was secured
over the assets that were purchased from AngloGold Ashanti Limited.

On January 1, 2009, we entered into a facility of R250.0 million with Investec Bank Limited. The facility bore interest at

the three-month Johannesburg Inter-bank Acceptance Rate, or JIBAR, plus 300 basis points. During fiscal 2009, we had not
drawn down against this facility. During fiscal 2010 we drew down and settled, R50 million against this facility. This facility was
not renewed and, therefore, as at June 30, 2010, this facility was no longer in place.

On October 1, 2010 DRDGOLD Limited’s, 74%-owned subsidiary DRDGOLD South African Operations (Pty) Limited,

or DRDGOLD SA, established a R500 million Domestic Medium Term Note Programme, or DMTN Programme, under which it
may from time to time issue notes. On October 1, 2010, DRDGOLD SA has successfully issued R108 million in notes under the
DMTN Programme and the different notes issued mature 12 and 24 months from the date of issue and bear interest at the three
month JIBAR rate plus a margin ranging from 4% to 5% per annum.

Anticipated funding requirements and sources

At June 30, 2010, we had cash and cash equivalents of R188.2 million, and positive working capital (defined as current

assets less current liabilities) of R132.9 million, compared to cash and cash equivalents of R352.7 million and positive working
capital of R224.5 million at June 30, 2009 and cash and cash equivalents of R845.6 million and positive working capital of
R761.8 million at June 30, 2008. At September 30, 2010, our cash and cash equivalents were R146.6 million.

Our management believes that existing cash resources, net cash generated from operations and the availability of

negotiated funding facilities will be sufficient to meet our anticipated commitments for fiscal 2011 as described above.

Our estimated working capital, capital expenditure and other funding commitments, as well as our sources of liquidity,

would be adversely affected if:

•

our operations fail to generate forecasted net cash flows from operations;

•

there is an adverse variation in the price of gold or foreign currency exchange rates in relation to the US dollar,
particularly with respect to the rand; or

•

our operating results or financial condition are adversely affected by the uncertainties and variables facing our business
discussed under Item 5A.: “Operating Results” or the risk factors described in Item 3D.: “Risk Factors.”

In such circumstances, we could have insufficient capital to meet our current obligations in the normal course of

business, which would have an adverse impact on our financial position and our ability to continue operating as a going concern.
We would need to reassess our operations, consider further restructuring and/or obtain additional debt or equity funding. There
can be no assurance that we will obtain this additional or any other funding on acceptable terms or at all.

5C. RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC.

We are not involved in any research and development and have no registered patents or licenses.

5D. TREND INFORMATION

During the first quarter of fiscal 2011, we produced 65,267 ounces at average cash costs of R256,498 per kilogram from our

operations. Gold production from our operations for the second quarter of fiscal 2011 is expected to be in line with the first quarter
results. Cash costs for the second quarter of fiscal 2011 are expected to be slightly lower due to winter tariffs for electricity applying
during the first quarter of fiscal 2011.

For the full year fiscal 2011, we are forecasting gold production from our operations of approximately 271,513 ounces at

cash costs of approximately R249,279 per kilogram , based on an exchange rate assumption of approximately $1.00/R6.99. Our
ability to meet the full year’s production target could be impacted by, amongst other factors, seismicity, lower grades, achieving the
targets set at Ergo and timely installation of the Crown/Ergo pipeline. We are also subject to cost pressures due to increases in labor
costs; increases in crude oil, steel, electricity and water prices; unforeseen changes in ore grades and recoveries; unexpected changes
in the quality or quantity of reserves; unstable or unexpected ground conditions and seismic activity; technical production issues;
environmental and industrial accidents; gold theft; environmental factors; and pollution, which could adversely impact the forecasted
cash costs for fiscal 2011.

5E. OFF-BALANCE SHEET ARRANGEMENTS

The Company does not engage in off-balance sheet financing activities, and does not have any off-balance sheet debt

obligations, unconsolidated special purposes entities or unconsolidated affiliates.

5F. TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS

Payments due by period

Total

Less than

1 year

Between

1-3 years

Between

3-5 years

More than

5 years

R’000 R’000 R’000 R’000 R’000

Long-term loans (including interest)............................................

Purchase obligations – contracted capital expenditure

.............

36,744

- -

Preference shares held by Khumo Gold SPV (Pty) Limited
and the DRDSA Empowerment Trust (including interest) .........

197,803

- 34,722

163,081

Environmental rehabilitation, reclamation and closure costs

....

420,604

19,531

- -

401,073

Total contractual cash obligations............................................

655,151

56,275

- 34,722

564,154

5G. SAFE

HARBOR

See “Special Note regarding Forward-Looking Statements.”

Represents planned capital expenditure for which contractual obligations exist.

Operations of gold mining companies are subject to extensive environmental regulations in the various jurisdictions in which they operate. These

regulations establish certain conditions on the conduct of our operations. Pursuant to environmental regulations, we are also obliged to close our
operations and reclaim and rehabilitate the lands upon which we have conducted our mining and gold recovery operations. The estimated closure
costs at existing operating mines and mines in various stages of closure are reflected in this table. For more information on environmental
rehabilitation obligations, see Item 4D.: “Property, Plant and Equipment” and Note 19 “Provision for environmental rehabilitation, reclamation and
closure costs” under Item 18.: “Financial Statements”.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

6A. DIRECTORS AND SENIOR MANAGEMENT

Directors and Executive Officers

Our board of directors may consist of not less than four and not more than twenty directors. As of June 30, 2010, our board

consisted of six directors and as of June 30, 2009, six directors.

In accordance with JSE listing requirements and our Articles of Association, one third of the directors comprising the board

of directors, on a rotating basis, are subject to re-election at each annual general shareholders’ meeting. Additionally, all directors are
subject to election at the first annual general meeting following their appointment. Retiring directors normally make themselves
available for re-election.

The address of each of our Executive Directors and Non-Executive Directors is the address of our principal executive

offices.

Executive Directors

Daniël Johannes Pretorius (43) Chief Executive Officer. Mr. D.J. Pretorius was appointed as Chief Executive Officer

Designate on August 21, 2008. On January 1, 2009 he succeeded Mr. John William Cornelius Sayers as Chief Executive Officer. Mr.
Pretorius holds a B Proc, LLB degree and was appointed Group Legal counsel for the Company in February 2003. He has 17 years of
experience in the mining industry. He was appointed as Chief Executive Officer of DRDGOLD SA in July 2006 and is also an
alternate director of Rand Refinery Limited.

Craig Clinton Barnes (40) Chief Financial Officer. Mr. C.C. Barnes joined the Company in August 2004 as Group Financial

Accountant. A Chartered Accountant, he has a B Com degree from the University of the Witwatersrand, or Wits University, and a B
Com Honors degree from the University of South Africa, or Unisa. Prior to joining the Company, he was head of financial reporting
for Liberty Group Limited and he has over 16 years financial experience. He was appointed as Chief Financial Officer of DRDGOLD
SA in July 2006 and as Chief Financial Officer of DRDGOLD in May 2008.

Non-Executive Directors

Geoffrey Charles Campbell (49). Mr. G.C. Campbell was appointed as Non-Executive Director in 2002, as a Senior

Independent Non-Executive Director in December 2003 and as Non-Executive Chairman in October 2005. A qualified geologist, he
has worked on a gold mine in Canada. He then spent 15 years first as a stockbroker and afterwards as a fund manager, during which
time he managed the Merrill Lynch Investment Manager’s Gold and General Fund, one of the largest gold mining investment funds.
He was also Research Director for Merrill Lynch Investment Managers. Mr. G.C. Campbell is also a director of Oxford Abstracts. On
June 26, 2006, he was appointed Non-Executive Chairman of Emperor Mines Limited. He resigned as Non-Executive Chairman of
Emperor Mines Limited on November 1, 2007, and on March 11, 2008 as a Non-Executive Director when Emperor Mines Limited
merged with Intrepid Mines Limited.

Robert Peter Hume (70). Mr. R.P. Hume was appointed as a Non-Executive Director in 2001. He has forty one years

experience in the auditing field which included eighteen years as a partner in the East London (South Africa) office of KPMG. Since
retirement in 1999, he has spent eleven years as an Investment Manager at Nvest Securities (Pty) Limited (formerly Sasfin Frankel
Pollak) in East London.

James

Turk

(63). Mr. J. Turk was appointed a Non-Executive Director in October 2004. He is the founder and a director of

GoldMoney Network Limited, formerly G.M. Network Limited (also known as GoldMoney.com), the operator of a digital gold
currency payment system. Since graduating from George Washington University with a BA degree in International Economics in
1969, he has specialized in international banking, finance and investments. After starting his career with Chase Manhattan Bank (now
J.P. Morgan Chase) he joined RTB, Inc., the private investment and trading company of a prominent precious metals trader in 1980.
He moved to the United Arab Emirates in 1983 as Manager of the Commodity Department of the Abu Dhabi Investment Authority.
Since resigning from this position in 1987, he has written extensively on money and banking.

Edmund Jeneker (48). Mr. E.A. Jeneker was appointed a Non-Executive Director on November 1, 2007. He is a trained

accountant and over the past 11 years specialized in business strategy and general management. Formerly the Regional Executive:
Retail Bank at ABSA Bank Limited he has recently been promoted to the position of Head of Entry Level Market at ABSA Bank
Limited.

Senior Management

David Johannes Botes (53) Group Risk Manager. Mr. D.J. Botes (Dip Comm, HDip Tax) joined DRDGOLD on September

7, 1988 as Group Financial Manager. He was appointed Group Risk Manager on February 1, 2003. He has 27 years of financial
management experience.

Jacob Hendrik Dissel (52) Group Financial Manager. Mr. J.H. Dissel (B Comm Hons) joined DRDGOLD as Group

Financial Manager in October 1999. He has 27 years experience in the mining industry

Themba John Gwebu (46) Executive Officer: Compliance. Mr. T.J. Gwebu (B Iuris, LLB, LLM) is a qualified attorney who

worked as a magistrate prior to joining the Company in April 2004 as Assistant Legal Advisor. He was appointed to the position of
Company Secretary in April 2005 and Executive Officer: Compliance on January 1, 2007.

Henry Gouws (41) General Manager: Crown. Mr. H. Gouws graduated from Technicon Witwatersrand and obtained a

National Higher Diploma in Extraction Metallurgy in 1991. He completed a MDP in 2003 through Unisa School of Business
Leadership. He was appointed Operations Manager of Crown in January 2006 and General Manager in July 2006. He has 23 years
experience in the mining industry.

Kevin Peter Kruger (42) Regional Engineering Manager. Mr. K.P. Kruger holds a BSc degree in mechanical engineering

from Wits University and joined the Company in 1994. Previously the Engineering Manager at the Company’s North West
Operations, he was appointed to his current position in April 2005.

Charles Methley Symons (56) Executive Officer: Operations. Mr. C.M. Symons joined the mining industry in February 1977

and transferred to Crown in January 1986 where he was appointed General Manager in 1995. He holds a Masters degree in Business
Leadership and a B Comm degree from Unisa, and he also has a National Diploma in Extractive Metallurgy. He was appointed
Executive Officer: Surface Operations on January 1, 2008 and Executive Officer: Operations on May 11, 2010.

Phillip Watters (54) General Manager Projects. Mr. P. Watters joined the Company in 2002 and took up his current position

on August 1, 2005. He was previously General Manager ERPM. Mr. P. Watters, who obtained a Mine Manager’s certificate of
Competency in May 1993, has a total of 35 years experience in mining, 23 years of which were spent with Gold Fields and four with
Anglo American. His career includes both production and project management experience.

William Stanly Owen O’Brien (46) General Manager: Blyvoor. Mr. W.S.O. O’Brien was appointed General Manager:

Blyvoor on September 25, 2008. He was previously employed by Harmony Gold where he held various management positions. He
has 26 years of experience in the mining industry and holds a Mine Manager’s Certificate of Competency.

Martin Bruce Ebell (52) Manager Metallurgical Technical Services. Mr. M.B. Ebell joined the Company in 2008 as

Manager Metallurgical Technical Services. He was previously employed by Bateman Minerals and Metals, Alex Steward Assayers,
Dowding Reynard and Associates, Millsell/Henry Gould and Rand Mines, and has 29 years of experience in the field of extractive
metallurgy in various managerial, consulting and project engineering positions. He is registered professional engineer and a member
of SAIMM and MMMA and holds a MEng (MEM) USA, BSc (Eng) Minerals Processing, B Comm degrees and a MDP certificate.

Ryno Botha (38) Mineral Resource Manager: Mr. R. Botha joined the Company on December 6, 2004 and was promoted to

his current position as Mineral Resource Manager on November 1, 2008. He was previously employed by JCI, Amplats, Anglo
Platinum and has 18 years of mining experience. He holds a M(Eng) in Mineral Resource Management, Graduate Diploma in
Engineering (MRM), National Higher Diploma in Mineral Resource Management, National Diploma in Mine Surveying and a Mine
Surveyor’s Certificate of Competency.

Barry Gordon de Blocq (48) General Manager Corporate Services. Mr. de Blocq joined DRDGOLD in September 1998

from AngloGold, where he was Divisional Industrial Relations Manager. He holds a B Soc Sc, degree and was promoted to his
current position on January 1, 2010. He has 23 years experience in the mining industry.

There are no family relationships between any of our executive officers or directors. There are no arrangements or

understandings between any of our directors or executive officers and any other person by which any of our directors or executive
officers has been so elected or appointed.

6B. COMPENSATION

Our Articles of Association provide that the directors' fees should be determined from time to time in a general meeting or

by a quorum of Non-Executive Directors. The total amount of directors' remuneration paid for the year ended June 30, 2010 was
R13.8 million. Non-Executive Directors receive the following fees:

• Base fee as Non-Executive Chairman of R1,059,480 per annum;

• Base fee as Non-Executive Directors of R470,880 per annum;

• Annual fee for Audit Committee Chairman of R47,088;

• Annual fee for Audit Committee member of R23,544;

• Annual fee for Nominations Committee Chairman of R17,658;

• Annual fee for Nominations Committee member of R8,829;

• Annual fee for members of Remco, Risco and Transco of R17,658 each;

• Half-day fee for participating by telephone in special board meetings;

• Daily fee of R17,658 and hourly rate of R2,354; and

• The Chairman of the board to receive committee fees.

• Non-executive directors’ fees to be adjusted annually on the basis of the consumer price index.

The following table sets forth the compensation for our directors for the year ended June 30, 2010:

Directors

Basic

salary/board

fees

(R'000)

Retirement fund

contributions/

bonus/restraint

trade/expenses

(R'000)

Total

(R'000)

Share

option

scheme

gains

(R'000)

Executive

D.J. Pretorius....................................................

3,940

2,255

6,195

C.C. Barnes ......................................................

2,695

1,847

4,542

Subtotal ...........................................................

6,635

4,102

10,737 -

Non-Executive

G.C. Campbell..................................................

1,275

R. Hume ...........................................................

624

J. Turk...............................................................

546

E.A. Jeneker

578

Subtotal ...........................................................

3,023

Total.................................................................

9,658

4,102

13,760 -

See also Item 6E.: “Share Ownership” for details of share options held by directors.

Compensation of senior management

Our senior management comprises its executive directors and executive officers. Under the JSE Listing Rules we are not

required to, and we do not otherwise, disclose compensation paid to individual senior managers other than Executive and Non-
Executive Directors. However, the aggregate compensation paid to senior management, excluding compensation paid to
Executive Directors, in fiscal 2010 was R18.5 million (fiscal 2009: R22.2 million), representing 11 executive officers in fiscal
2010 and 14 executive officers in fiscal 2009.

Bonuses or incentives are paid based upon performance against predetermined key performance indicators. Should an

Executive Director meet all the targets set in terms of such predetermined key performance indicators, he will be entitled to a bonus
of up to 50%, 75% or 100% of his remuneration package, depending on his particular agreement. Should an Executive Director not
meet all the targets set in terms of the predetermined key performance indicators, he will be entitled to a lesser bonus as determined
by the Remuneration and Nominations Committee.

Service Agreements

Service contracts negotiated with each executive and Non-Executive Director incorporate their terms and conditions of

employment and are approved by our Remuneration and Nominations Committee.

The Company’s executive directors, Mr. D.J. Pretorius and Mr. C.C. Barnes, entered into agreements of employment

with us, on January 1, 2009 and May 5, 2008 respectively. These agreements regulate the employment relationship with Messrs.
D.J. Pretorius and C.C. Barnes.

Mr. D.J. Pretorius receives from us a remuneration package of R3.9 million per annum. Mr. D.J. Pretorius is eligible

under his employment agreement, for an incentive bonus of up to 100% of his annual remuneration package in respect of one
bonus cycle per annum over the duration of his appointment, on condition that he achieves certain key performance indicators.
DRDGOLD shall issue Mr. D.J. Pretorius with 100,000 ordinary DRDGOLD shares or alternatively shall pay Mr. D.J. Pretorius
the cash value of 100,000 ordinary DRDGOLD shares reckoned at market value on the date that the conversion of mining rights
of DRDGOLD’s South African operations is completed.

Mr. C.C. Barnes receives from us a remuneration package of R2.7 million per annum. Mr. C.C. Barnes is eligible under

his employment agreement, for an incentive bonus of up to 75% of his annual remuneration package in respect of one bonus cycle
per annum over the duration of his appointment, on condition that he achieves certain key performance indicators. As a further
consideration for agreeing to remain in the employment of the company as set out in the agreement, the company will issue
Mr. C.C. Barnes with, up to 50% of his annual package, share options in DRDGOLD Limited on an annual basis and on the third
anniversary of this agreement a bonus payment equal to 30% of his annual package.

Each service agreement with our directors provides for the provision of benefits to the director where the agreement is

terminated by us in the case of our executive officers, except where terminated as a result of certain action on the part of the director,
or upon the director reaching a certain age, or by the director upon the occurrence of a change of control of us. A termination of a
director's employment upon the occurrence of a change of control of us is referred to as an “eligible termination.” Upon an eligible
termination, the director is entitled to receive a payment equal to at least one year's salary or fees, but not more than three years salary
for Executive Directors or two years fees for Non-Executive Directors, depending on the period of time that the director has been
employed.

Messrs. R.P. Hume, J. Turk and E.A. Jeneker each have service agreements which run for fixed periods until

September 30, 2010, October 31, 2010, and November 30, 2011 respectively. After their two year period, the agreements continue
indefinitely until terminated by either party on not less than three months prior written notice. Mr. G.C. Campbell has a service
agreement which continues indefinitely until terminated by either party on not less than three months prior written notice.

6C. BOARD PRACTICES

Board of Directors

As at September 30, 2010, the board of directors comprises two Executive Directors (Mr. D.J. Pretorius and

Mr. C.C. Barnes), and four Non-Executive Directors (Messrs. G.C. Campbell, R.P. Hume, J. Turk and E.A. Jeneker). The Non-
Executive Directors are independent under the Nasdaq requirements and the South African King II and King III Reports, with the
exception of Mr. J. Turk, by virtue of his directorship of G.M. Network Limited (GoldMoney.com) in which we had a 12.3%
interest which was disposed of on September 17, 2008 and, pursuant to Nasdaq rules, his relationship with a family member who
served as an executive officer of one of our subsidiaries.

In accordance with the King II and King III Reports on corporate governance, as encompassed in the JSE Listings

Requirements, and in accordance with the United Kingdom Combined Code, the responsibilities of Chairman and Chief Executive
Officer are separate. Mr. G.C. Campbell is the Non-Executive Chairman, Mr. D.J. Pretorius is the Chief Executive Officer and
Mr. C.C. Barnes is the Chief Financial Officer. The board has established a nominations committee, and it is our policy for details
of a prospective candidate to be distributed to all directors for formal consideration at a full meeting of the board. A prospective
candidate would be invited to attend a meeting and be interviewed before any decision is taken. In compliance with the Nasdaq
rules a majority of independent directors will select or recommend director nominees.

The board’s main roles are to create value for shareholders, to provide leadership of the Company, to approve the

Company’s strategic objectives and to ensure that the necessary financial and other resources are made available to management
to enable them to meet those objectives. The board retains full and effective control over the Company, meeting on a quarterly
basis with additional ad hoc meetings being arranged when necessary, to review strategy and planning and operational and
financial performance. The board further authorizes acquisitions and disposals, major capital expenditure, stakeholder
communication and other material matters reserved for its consideration and decision under its terms of reference. The board also
approves the annual budgets for the various operational units.

The board is responsible for monitoring the activities of executive management within the Company and ensuring that

decisions on material matters are referred to the board. The board approves all the terms of reference for the various
subcommittees of the board, including special committees tasked to deal with specific issues. Only the executive directors are
involved with the day-to-day management of the Company.

To assist new directors, an induction program has been established by the Company, which includes background

materials, meetings with senior management, presentations by the Company’s advisors and site visits. The directors are assessed
annually, both individually and as a board, as part of an evaluation process, which is driven by an independent consultant. In
addition, the Remuneration and Nominations Committee formally evaluates the executive directors and the alternate directors on
an annual basis, based on objective criteria.

All directors, in accordance with the Company’s Articles of Association, are subject to retirement by rotation and re-

election by shareholders. In addition, all directors are subject to election by shareholders at the first annual general meeting
following their appointment by directors. The appointment of new directors is approved by the board as a whole. The names of the
directors submitted for re-election are accompanied by sufficient biographical details in the notice of the forthcoming annual
general meeting to enable shareholders to make an informed decision in respect of their re-election.

All directors have access to the advice and services of the Company Secretary, who is responsible to the board for

ensuring compliance with procedures and regulations of a statutory nature. Directors are entitled to seek independent professional
advice concerning the affairs of the Company at the Company’s expense, should they believe that course of action would be in the
best interest of the Company.

Two of the Non-Executive Directors (Messrs. G.C. Campbell and R.P. Hume) have share options under the Company’s

share option scheme, but we do not believe that this interferes with their independence. No new share options were issued to Non-
Executive Directors since December 2004. See Item 6A.: “Directors and Senior Management” and Item 6E.: “Share ownership”.

Board meetings are held quarterly in South Africa. The structure and timing of the Company’s board meetings, which are

scheduled over 2 or 3 days, allows adequate time for the Non-Executive Directors to interact without the presence of the
Executive Directors. The board meetings include the meeting of the Risk Committee, Audit Committee, Remuneration and
Nominations Committee and Transformation and Sustainable Development Committee which act as subcommittees to the board.
Each subcommittee is chaired by one of the Independent Non-Executive Directors who provide a formal report back to the board.
Each subcommittee meets for approximately half a day. Certain senior members of staff are invited to attend the subcommittee
meetings.

The board sets the standards and values of the Company and much of this has been embodied in the Company’s Code of

Ethics and Conduct, a copy of which is available on our website at www.drdgold.com. The Code of Ethics and Conduct applies to
all directors, officers and employees, including the principal executive, financial and accounting officers, in accordance with
Section 406 of the US Sarbanes-Oxley Act of 2002, the related US securities laws and the Nasdaq rules. The Code contains
provisions under which employees can report violations of Company policy or any applicable law, rule or regulation, including
US securities laws.

Directors' Terms of Service

The following table shows the date of appointment, expiration of term and number of years of service with us of each of the

directors as at June 30, 2010:

Director Title Year first

appointed

Term of

current

office

Unexpired

term of

current office

G.C. Campbell

Non-Executive Director

2002

2 years

16 months

D.J. Pretorius

Chief Executive Officer

2008

3 years

18 months

C.C. Barnes

Chief Financial Officer

2008

3 years

10 months

R.P. Hume

Non-Executive Director

2001

2 years

3 months

E.A. Jeneker

Non-Executive Director

2007

2 years

16 months

J. Turk

Non-Executive Director

2004

2 years

4 months

Executive Committee

As at September 30, 2010, the Executive Committee consisted of Mr. D.J. Pretorius (Chairman), Mr. C.C. Barnes, Mr. C.M.

Symons, and Mr. T.J. Gwebu.

The Executive Committee meet on a weekly basis to review current operations, develop strategy and policy proposals for

consideration by the board of directors. Members of the Executive Committees, who are unable to attend the meetings in person, are
able to participate via teleconference facilities, to allow participation in the discussion and conclusions reached.

Board Committees

The board has established a number of standing committees to enable it to properly discharge its duties and

responsibilities and to effectively fulfill its decision-making process. Each committee acts within written terms of reference which
have been approved by the board and under which specific functions of the board are delegated. The terms of reference for all
committees can be obtained by application to the Company Secretary at the Company’s registered office. Each committee has
defined purposes, membership requirements, duties and reporting procedures. Minutes of the meetings of these committees are
circulated to the members of the committees and made available to the board. Remuneration for Non-Executive Directors for their
services on the committees concerned is determined by the board. The committees are subject to regular evaluation by the board
with respect to their performance and effectiveness.

The following information reflects the composition and activities of these committees.

Committees of the Board of Directors

Remuneration Committee

As at June 30, 2010, the Remuneration Committee consisted of Mr. E.A. Jeneker (Chairman), Mr. G.C. Campbell, Mr. R.P.

Hume and Mr. J. Turk.

The Remuneration Committee, which is comprised of Non-Executive Directors, has been appointed by the board of

directors. The committee meets quarterly, but may meet more often on an ad hoc basis if required. The Remuneration Committee
is governed by its terms of reference and is responsible for approving the remuneration policies of the Company, the terms and
conditions of employment, and the eligibility and performance measures of the DRDGOLD (1996) Share Option Scheme
applicable to executive directors and senior management.

The committee’s objective is to evaluate and recommend to the board competitive packages which will attract and retain

executives of the highest caliber and encourage and reward superior performance. The committee also aims to ensure that criteria
are in place to measure individual performance. The committee approves the performance-based bonuses of the executive
directors based on such criteria. The Executive Officer: Human Resources provides the committee with access to comparative
industry surveys, which assist in formulating remuneration policies. As and when required the committee may also engage the
services of independent consultants to evaluate and review remuneration policies and related issues and brief members on
pertinent issues. The committee has in the past year engaged the services of such consultants to review the employment contracts
of the executive directors.

The remuneration policy, relating to the remuneration of directors and senior executives, is based on a reward system

comprising four principal elements:

•

Basic remuneration, as benchmarked against industry norms;

•

Bonuses or incentives, which are measured against agreed outcomes or Key Performance Indicators, or KPIs;

•

Short-term rewards for exceptional performance; and

•

Long-term retention of key employees based on scarcity of skill and strategic value, using share options granted under
the DRDGOLD (1996) Share Option Scheme.

A copy of the policy is available by application to the Company Secretary at the Company’s registered office.

Nominations Committee

The board resolved to separate the Nominations Committee from the Remunerations Committee. The Nominations

Committee is chaired by the Chairman of the board, Mr. G.C. Campbell. The terms of reference were approved in August 2008.
Its duties include:

• making recommendations to the board on the appointment of new Executive and Non-Executive directors, including

making recommendations on the composition of the board generally and the balance between Executive and Non-
Executive directors appointed to the board;

• regular reviewing of the board structure, size and composition and making recommendations to the board with regard to

any adjustments that are deemed necessary;

• identifying and nominating candidates for the approval of the board to fill board vacancies as and when they arise as well

as putting in place plans for succession, in particular for the Chairman and Chief Executive Officer; and

• making recommendations on directors who are retiring by rotation to be put forward for re-election.

As at September 30, 2010, the members of the Nomination Committee consisted of Mr. G.C. Campbell (Chairman) and Mr.

R.P. Hume.

Audit and Risk Committees

On February 11, 2005, the Audit and Risk Committees started conducting joint meetings in respect of the quarterly

meetings. The members meet and the business of each committee is handled in joint deliberations taking place on the issues
raised. The Audit Committee is chaired by Mr. R.P. Hume and the Risk Committee by Mr. D.J. Pretorius. The reason for the joint
sittings is that there is a great deal of overlap between the financial risks discussed at Audit Committee level and at Risk
Committee level. The joint sittings of the Committees bring about better disclosure and ensure that the Company conforms more
closely to the process prescribed by the US Sarbanes-Oxley Act of 2002.

Audit Committee

As at June 30, 2010, the Audit Committee consisted of Mr. R.P. Hume (Chairman), Mr. G.C. Campbell and Mr. E.A.

Jeneker.

The Audit Committee is comprised solely of Non-Executive Directors, all of whom are independent. See Item 16G.:

“Corporate Governance”. The primary responsibilities of the Audit Committee, as set out in the Audit Committee charter, is to
assist the board in carrying out its duties relating to accounting policies, internal financial control, financial reporting practices and
the preparation of accurate financial reporting and financial statements in compliance with all applicable legal requirements and
accounting standards. A copy of the charter is available by application to the Company Secretary at the Company’s registered
office.

The Audit Committee meets quarterly with the external auditors, the Company’s internal audit practitioner, the Chief

Financial Officer and the Internal Audit and Compliance Manager to review the audit plans of the internal auditors, to ascertain
the extent to which the scope of the internal audits can be relied upon to detect weaknesses in the internal controls and to review
the annual and interim financial statements prior to approval by the board. The Audit Committee reviews our annual results, the
effectiveness of our system of internal financial controls, internal audit procedures and legal and regulatory compliance. The
committee also reviews the scope of work carried out by our internal auditors and holds regular discussions with the external auditors
and internal auditors.

The committee appoints, re-appoints and removes the external auditors and approves the remuneration and terms of

engagement of the external auditors. The committee is required to pre-approve, and has pre-approved, non-audit services provided
by our external auditors. The Company’s external audit function is currently being undertaken by KPMG Inc.

The Company’s internal and external auditors have unrestricted access to the chairman of the Audit Committee and,

where necessary, to the Chairman of the board and Chief Executive Officer. All important findings arising from audit procedures
are brought to the attention of the committee and, if necessary, to the board.

Risk Committee

As at June 30, 2010, the Risk Committee consisted of Mr. D.J. Pretorius (Chairman), Mr. J. Turk, Mr. G.C. Campbell, Mr.

E.A. Jeneker, Mr. R.P. Hume and Mr. C.C. Barnes.

The Risk Committee was established in January 2004 and currently comprises four Non-Executive Directors and two

Executive Directors. Its overall objective is to assist the board in its duties relating to risk management and control
responsibilities, assurance issues, health, safety and environmental compliance, and the monitoring and reporting of all these
matters. The Risk Committee facilitates communication between the board, the Audit Committee, internal auditors and other
parties engaged in risk management activities. The terms of reference of the Risk Committee can be obtained by application to the
Company Secretary at the Company’s registered office.

The Risk Committee’s role is to ensure that:
• an effective risk management program is implemented and maintained;

• risk management awareness is promoted amongst all employees;

• risk programs (financing/insurance) adequately protect the Company against catastrophic risks;

• regular risk assessments are conducted;

• total cost of risk in the long term is reduced;

• the protection of the Group's assets is promoted throughout the Group;

• the health and safety and well being of all stakeholders is improved; and

• the Company’s activities are carried out in such a way so as to ensure the safety and health of employees.

The Risk Committee meets quarterly and reports to the board. Additional ad hoc meetings may be arranged as and when

required. Certain members of executive management are occasionally invited to attend Risk Committee meetings, such as the
Internal Audit and Compliance Manager, the Group Risk Manager, the Group Financial Manager, the Operational Managers and
the Group Legal Counsel.

The system to manage risk involves all significant business and operational risks which could undermine the

achievement of business objectives and undermine the preservation of shareholder value. The significant risks facing the Group
including those at operations have been identified and have been included in Item 3D.: “Risk factors.” Individuals have been
appointed to address each risk and the results thereof are reviewed by senior management through regular risk meetings. The aim
of the internal control systems is for management to provide reasonable assurance that the objectives will be met. In addition to
the above initiatives the Group also employs third party consultants to benchmark our operations against other mining operations
throughout South Africa and worldwide.

An important aspect of risk management is the transfer of risk to third parties to protect the Company from any major

disaster. We have embarked on a program to ensure that our major assets and potential business interruption and liability claims
are covered by group insurance policies that encompass our operations. The majority of the cover is through reputable insurance
companies in London and Europe and the insurance programs are renewed on an annual basis. A cell captive has been established
to enable further reduction in annual insurance premiums.

Transformation and Sustainable Development Committee

The board, taking into account that all the group’s operations are now based in South Africa and in order to achieve the

triple bottom line espoused in the King II and King III Reports and in order to reach the empowerment goal to which it is
committed, establishing a committee, the focus of which will be transformation and sustainable development. The terms of
reference were approved by the board at the August 2008 meeting. The objectives of this committee are:

• promoting transformation within the company and the economic empowerment of previously disadvantaged

communities, particularly within areas where the company conducts business;

• striving towards achieving the goal of equality as the South African constitution and other legislation require within the

context of the demographics of the country at all levels of the company and its subsidiaries; and

• conducting business in a manner which is conducive to internationally acceptable environmental and sustainability

standards.

As at September 30, 2010, the Transformation and Sustainable Development Committee consisted of Mr. E.A. Jeneker

(Chairman), Mr. D.J. Pretorius and Mr. C.C. Barnes.

6D. EMPLOYEES

Employees

The geographic breakdown of our employees (including contractors who are contracted employees employed by third

parties), was as follows at the end of each of the past three fiscal years:

Year ended June

2010

2009

2008

South Africa............................................................................................................................................. 6,409

6,715

7,627

The total number of employees at June 30, 2010, of 6,409 comprises 1,749 contractors and 4,660 employees who are

directly employed by us and our subsidiary companies. As of September 30, 2010, we had 6,510 employees. The decrease in the
number of employees in fiscal 2010 is mainly due to the retrenchment of employees at ERPM and Blyvoor.

As of June 30, 2010, the breakdown of our employees by main categories of activity for the periods below was as follows:

Year ended June 30,

Category of Activity

2010 2009

2008

Mining - Our Employees.........................................................................................................................

2,368 2,832

3,431

Mining - Contractors ...............................................................................................................................

1,749 1,846

1,371

Engineering..............................................................................................................................................

1,113 839

1,604

Metallurgy ...............................................................................................................................................

672 699

637

Mineral Resources...................................................................................................................................

91 97

134

Administration.........................................................................................................................................

126 161

180

Environmental .........................................................................................................................................

62 48

Human Resources....................................................................................................................................

183 135

159

Medical ....................................................................................................................................................

17 23

Safety .......................................................................................................................................................

28 35

Total.........................................................................................................................................................

6,409 6,715

7,627

Labor Relations

As at June 30, 2010, we employed and contracted 6,409 people in South Africa. Approximately 78% of South African

employees are members of trade unions or employee associations. South Africa's labor relations environment remains a platform for
social reform. The National Union of Mineworkers, or NUM, the main South African mining industry union, is influential in the
tripartite alliance between the ruling African National Congress, the Congress of South African Trade Unions, or COSATU, and the
South African Communist Party as it is the biggest affiliate of COSATU. The relationship between management and labor unions
remains cordial. The DRDGOLD/NUM coordinating forum meets regularly to discuss matters pertinent to both parties at a
DRDGOLD SA level, while operations level forums continue to deal with local matters.

The NUM called for an industry wide safety strike on Tuesday December 4, 2007 to protest against the number of fatalities

in mining accidents. Agreements at our operations resulted in the release of Union office bearers to attend protest marches and no
disruptions to operations were experienced. This event marked the adoption by the NUM of a stance that all employees would take a
day of mourning when no production would take place whenever an employee was fatally injured in a mine accident. The principle of
“no work – no pay” has been applied to such events that have subsequently taken place at our operations.

Workers at Blyvoor embarked on an illegal work stoppage on Friday May 30, 2008. The illegal work stoppage was believed

to be related to worker concerns regarding the arrest of two employees by the South African Police Service who was allegedly
involved in the murder of one person and the assault of another in open fields on mine property during December 2007. The striking
workers responded to a court order served on May 30, 2008, prohibiting them from continuing with their illegal industrial action and
returned to work on Monday June 2, 2008.

COSATU called for a series of regional marches to protest against the increasing cost of electricity, with the protest marches

for Gauteng and North West Provinces taking place on Wednesday July 23, 2008. Agreements at our operations resulted in the
release of Union office bearers to attend the marches and no disruptions to operations were experienced. The COSATU action
culminated in a national strike on Wednesday August 6, 2008, which affected all our operations.

The wave of xenophobic violence that swept across Gauteng during April 2008 impacted on ERPM when the operation

experienced high levels of absenteeism after 3 employees were killed in xenophobic attacks. Most Mozambican citizens employed by
the mine were displaced from their homes in local communities. These employees and their families were accommodated in company
accommodation on a temporary basis until such time as they could be reintegrated into their communities. There were no other
material incidents of industrial action or labor unrest at our operations during fiscal 2008.

On November 19, 2008 the company advised unions of its intention to place on care and maintenance the underground

operations of the ERPM mine, and to proceed with a consultation process in terms of Section 189A of the Labour Relations Act to
determine the future of the mine's 1,700 employees. Underground mining at the ERPM mine was halted on October 31, 2008
when pumping infrastructure could no longer cope with rising underground water levels. On January 20, 2009, the process was
concluded and 1,335 employees were retrenched. A further 105 employees were retrenched in November 2009 following the total
cessation of all underground mining activities at ERPM.

On August 26, 2009, the Company advised unions of its intention to right-size the Blyvoor operations and that Blyvoor

would proceed with a 60-day facilitated consultation process in terms of Section 189A of the Labour Relations Act to determine
the future of affected employees. A combined management/unions task team was appointed to investigate possible cost-reduction
measures at the mine.

On November 9, 2009, the Company announced its intention to apply to the High Court of South Africa for a judicial

management order over the Blyvoor operation after the restructuring process in terms of Section 189A of the Labour Relations
Act failed to deliver the expected turnaround and the mine faced a four-week wage strike by the National Union of Mineworkers
which resulted in decreased production. The result of the process saw 278 employees retrenched.

In September 2009 the Company signed a two-year wage settlement with the United Association of South Africa

(UASA). In terms of the settlement, employees in the UASA recognition unit at Blyvoor would receive a 6.5% increase, at Crown
a 6% increase and at ERPM a 4% increase. In addition, employees in the UASA recognition unit are eligible for a gold price/profit
linked incentive scheme, in terms of which their overall increases can rise to a total of 15%. The NUM rejected the company’s
offer of a 7% increase for lowest-category employees at Blyvoor and 6.5% for the balance, a 6.0% across-the-board increase at
Crown and a 4% across-the-board increase at ERPM. The NUM also rejected the gold price/profit linked incentive scheme. The
NUM was granted strike certificates in respect of the three operations and strike action started with the night shift on Tuesday,
September 15, 2009.

On October 7, 2009, the Company and NUM reached agreement on a wage settlement at Crown. The agreement was

implemented for a twenty-one month period, with effect from October 1, 2009. In terms of the settlement, employees of all unions
and associations received an 8% increase for year one and will receive a minimum of 8% in year two. The strike by the NUM was
called off and employees returned to work on October 8, 2009. On October 9, 2009, the Company and NUM reached agreement
on a wage settlement at Blyvoor. The agreement was implemented for a period of two years, with effect from July 1, 2009. In

terms of the settlement, employees of all unions and associations received an 8% increase for year one and will receive a
minimum of 8% in year two. The strike by the NUM was called off and employees returned to work on October 11, 2009.

The Company is placing a greater emphasis on its Corporate Social Responsibility by becoming increasingly involved in

appropriate projects that give effect to the ideals of the Mining Charter and good corporate governance. We recognize the need for
transformation and have put structures in place to address this at both management and board level.

By statute we are required to pay each employee who is dismissed for reasons based on the operational requirements of

our operations, a severance package of not less than one week’s remuneration for every completed year of service. In specific
agreements with organized labor we undertook, as in the past, to pay packages equal to two weeks basic pay for every completed
year of service as part of a balancing compromise with the labor unions between the high additional costs of non-financial items
and incentive payments (which are deemed part of remuneration), and an additional one week benefit based on basic pay. These
employees were provided with counseling services and the opportunity to undergo skills training to be able to find employment
outside the mining industry.

AIDS represents a very serious threat to us and the gold mining industry as a whole in terms of the potential reduced

productivity and increased medical costs. The exact extent of infection in our workforce is not known at present, although it is
roughly estimated by the industry that the prevalence of HIV, the virus that causes AIDS, in the South African industry is currently
approximately 30% to 35%. We have several AIDS awareness campaigns in place at our operations.

Blyvoor has contracted Harmony’s Health Share to provide all health care services, including primary and occupational

health programs, a wellness program, which treats AIDS related illnesses, provides counseling on healthy life styles and monitors the
progression of the HIV virus.

Safety statistics

Due to the importance of our labor force, we continuously strive to create a safe and healthy working environment. The

following are our 2010 overall safety statistics for our managed mines:

(Per million man hours)

Year ended June 30,

2010

2009

Lost time injury frequency rate (LTIFR)

.............................................................................................

8.20 7.60

Reportable incidence

...........................................................................................................................

3.22 2.62

Fatalities

...............................................................................................................................................

0.08 0.18

Number of fatalities (average per month).............................................................................................

0.17 0.41

6E. SHARE OWNERSHIP

As of September 30, 2010, options to purchase ordinary shares held by directors were as follows:

Directors

Options at

June 30,

2009

Options

granted

during the

period

Average

Exercise

price (R)

Options

exercised

during the

year

Average

Exercise

Price (R)

Options

lapsed

during the

year

Options at

September

30,

2010

Expiration

Dates

Non-Executive

G.C. Campbell..............

57,994

57,994 3/20/2012-

6/17/2015

R.P. Hume ....................

77,907

77,907 10/1/2011-

6/17/2015

Executive

C.C. Barnes

576,226

225,000

801,226 11/1/2014-

10/20/2018

D.J. Pretorius ................ 1,283,486

1,283,486 4/22/2013-

10/20/2018

Each option is representative of a right to acquire one ordinary share at a predetermined exercise price.

Calculated as follows: actual number of instances divided by the total number of man hours worked multiplied by one million.

Certain Directors hold options which expire at various times. For those directors, a range is provided indicating the earliest and latest expiration

dates.

Closed periods apply to share trading by directors and other employees, whenever certain employees of the Company

become or could potentially become aware of material price sensitive information, such as information relating to an acquisition,
quarterly results etc., which is not in the public domain. When these employees have access to this information an embargo is
placed on share trading for those individuals concerned. The embargo need not involve the entire Company in the case of an
acquisition and may only apply to the board of directors, executive committee, and the financial and new business teams, but in
the case of quarterly results the embargo is group-wide.

Under the listings requirements of the JSE, we are not required to disclose, and we do not otherwise disclose or ascertain,

share ownership of individual executive officers in our share capital. However, to the best of our knowledge, we believe that our
ordinary shares held by executive officers, in aggregate, do not exceed one percent of the Company’s issued ordinary share capital.
For details of share ownership of directors see Item 7A.: “Major Shareholders.”

DRDGOLD (1996) Share Option Scheme, or the Scheme

We operate a securities option plan as an incentive tool for our Executive Directors and senior employees whose skills and

experience are recognized as being essential to the Company’s performance. Two of our Non-Executive Directors (Messrs.
G.C. Campbell and R.P. Hume) have share options under the Scheme; however, no new share options have been issued to Non-
Executive Directors since December 2004. In terms of the Scheme rules, a maximum of 15% of the issued ordinary shares is reserved
for issuance thereunder and no participant may hold options at any time, which if exercised in full, would exceed 4% of our issued
share capital at that time. As at September 30, 2010, the number of issued and exercisable share options was approximately 5% of
the issued ordinary share capital, which is within the National Association of Pension Funds (United Kingdom) international
accepted guideline of 3 to 5% for such schemes. In addition, the participants in the Scheme are fully taxed at their maximum
marginal tax rate on any gains realized on the exercise of their options.

The price at which an option may be exercised is the lowest seven day trading average of the closing market prices of an

ordinary share on the JSE, as confirmed by our directors, during the three months preceding the day on which the employee is granted
the option. Each option remains in force for ten years after the date of grant, subject to the terms of the option plan. Options granted
under the plan vest at the discretion of our directors, but primarily according to the following schedule over a maximum of a three
year period:

Percentage vested in each period

Period after the original date of the option grant

25% 6 months

25% 1 year

25% 2 years

25% 3 years

Any options not exercised within ten years from the original date of the option grant will expire and may not thereafter be

exercised. The previous bi-annual allocation of options was changed in April 2006 to an annual allocation.

Options to purchase a total of 19,494,401 ordinary shares were outstanding on June 30, 2010, of which options to purchase

14,110,206 ordinary shares were currently exercisable. In fiscal 2010, a total of 83 employees participated in the Scheme including
Executive Directors and other senior employees. The outstanding options are exercisable at purchase prices that range from R3.50 to
R29.10 per share and expire ten years from the date of issue to the participants.

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

7A. MAJOR SHAREHOLDERS

As of September 30, 2010, our issued capital consisted of:

• 384,884,379 ordinary shares of no par value; and

• 5,000,000 cumulative preference shares.

To our knowledge, we are not directly or indirectly owned or controlled by another corporation or any person or foreign

government and there are no arrangements, the operation of which may at a subsequent date result in a change in control of us.

Based on information available to us, as of September 30, 2010:

• there were 6,380 record holders of our ordinary shares in South Africa, who held approximately 86,853,038 or

approximately 22.6% of our ordinary shares;

• there was one record holder of our cumulative preference shares in South Africa, who held 5,000,000 or 100% of our

cumulative preference shares;

• there were no US record holders of our ordinary shares, excluding those shares which are held as part of our ADR program;

and

• there were 508 record holders of our ADRs in the United States, who held approximately 221,777,000 (22,177,700 ADRs)

or approximately 57.6% of our ordinary shares.

The following table sets forth information regarding the beneficial ownership of our ordinary shares as of September 30,

2010 by:

• each of our directors; and

• any person whom the directors are aware of as at September 30, 2010 who is interested directly or indirectly in 5% or more

of our ordinary shares.

Shares Beneficially

Owned

Holder

Number

Percent

D.J. Pretorius....................................................................................................................................................

C.C. Barnes ......................................................................................................................................................

J. Turk...............................................................................................................................................................

G.C. Campbell..................................................................................................................................................

R.P. Hume ........................................................................................................................................................

E.A. Jeneker .....................................................................................................................................................

Soges Fiducem SA (Brussels) ......................................................................................................................... 31,930,106

8.3%

Investec............................................................................................................................................................. 30,997,617

8.0%

Bank of New York ADRs................................................................................................................................
101 Barclay Street
New York, NY 10011

221,777,000

58.2%

* Indicates share ownership of less than 1% of our outstanding ordinary shares.

Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment

power with respect to securities. Ordinary shares issuable pursuant to options, to the extent the options are currently exercisable or
convertible within 60 days of September 30, 2010, are treated as outstanding for computing the percentage of any other person. As of
September 30, 2010, we are not aware of anyone owning 5% or more of our ordinary shares other than the Bank of New York which
holds 58.2% of our issued ordinary shares through our ADR program, Soges Fiducem SA which holds 8.3% and Investec which
holds 8.0%. Unless otherwise noted, each person or group identified possesses sole voting and investment power with respect to the
shares, subject to community property laws where applicable. Unless indicated otherwise, the business address of the beneficial
owner is: DRDGOLD Limited, 50 Constantia Boulevard, Constantia Kloof Ext. 28, Roodepoort, 1709, South Africa.

Cumulative Preference Shares

Randgold and Exploration Company Limited, or Randgold, owns 5,000,000 (100%) of our cumulative preference shares.

Randgold's address is 23 Southerland Avenue, Craighall Park, Johannesburg, South Africa.

The holders of cumulative preference shares do not have voting rights unless any preference dividend is in arrears for more

than six months. The terms of issue of the cumulative preference shares are that they carry the right, in priority to the Company's
ordinary shares, to receive a dividend equal to 3% of the gross future revenue generated by the exploitation or the disposal of the
Argonaut mineral rights acquired from Randgold in September 1997. They will only obtain their potential voting rights once the
Argonaut Project becomes an operational gold mine, and dividends accrue to them. Additionally, holders of cumulative preference
shares may vote on resolutions which adversely affect their interests and on the disposal of all or substantially all of our assets or
mineral rights. There is currently no active trading market for our cumulative preference shares. No shareholder has voting rights
which differ from the voting rights of any other shareholder. On May 1, 2005, the Argonaut mineral rights reverted to the South
African State, in terms of the MPRD Act. On February 6, 2006, a prospecting right covering an area of 969 hectares over part of the
Argonaut Project was obtained.

7B. RELATED PARTY TRANSACTIONS

Rand Refinery Limited (RRL) agreement

On October 12, 2001, we entered into an agreement with RRL for the refining and sale of all of our gold produced in South

Africa. Under the agreement, RRL performs the final refining of our gold and casts it into troy ounce bars. RRL then usually sells the
gold on the same day as delivery, for the London afternoon close price on the day the gold is sold. In exchange for this service, we
pay RRL a variable refining fee plus fixed marketing, loan and administration fees. This amounted to R3.6 million, R3.5 million and
R2.3 million for fiscal 2010, 2009 and 2008, respectively. Mr. D.J. Pretorius, CEO of DRDGOLD Limited, is also an alternate
director of RRL. The group currently owns 4.0% of RRL (which is currently owned by South African gold mining companies).

Management service agreements

We provide management services for DRDGOLD SA, Blyvoor, Crown and ERPM under management service agreements

entered into with each of them. These services include financial management, gold administration, technical and engineering services,
mineral resource services and other management related services. We own a 74% interest in DRDGOLD SA. Blyvoor, Crown and
ERPM are wholly-owned subsidiaries of DRDGOLD SA. These arrangements allow us to monitor and provide input on the
management of these companies in which we have an investment.

The management services at Blyvoor, Crown and ERPM are provided by DRDGOLD SA. DRDGOLD SA’s management

fee for services performed in fiscal 2010 at Blyvoor was R17.6 million (2009: R15.0 million), Crown R17.6 million (2009:
R15.0 million) and ERPM R17.6 million (2009: R15.0 million). Management fees recovered from DRDGOLD SA were
R34.6 million (2009: R15.6 million).

Consultancy agreement

On June 23, 2008, DRDGOLD SA approved a consultancy agreement with Khumo Gold SPV (Pty) Limited, or Khumo

Gold, which owns 20% of DRDGOLD SA. The agreement provides for a monthly retainer of R200,000

7C. INTERESTS OF EXPERTS AND COUNSEL

Not applicable.

ITEM 8. FINANCIAL INFORMATION

8A. CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION

1. Please refer to Item 18.: "Financial Statements."

2. Please refer to Item 18.: "Financial Statements."

3. Please refer to Item 18.: "Financial Statements."

4. The last year of audited financial statements is not older than 15 months.

5. Not applicable.

6. Not applicable.

7. See under Item 4D.: "Property, plant and equipment—Legal Proceedings."

8. Please see Item 10B.: "Memorandum and Articles of Association."

8B. SIGNIFICANT CHANGES

For a discussion of significant changes that have occurred since June 30, 2010, the date of the last audited financial

statements included in this Annual report, please see Note 35 “Subsequent Events” under Item 18.: "Financial Statements," which
describes post balance sheet (statement of financial position) events.

ITEM 9. THE OFFER AND LISTING

9A.

OFFER AND LISTING DETAILS

The following tables set forth, for the periods indicated, the high and low market sales prices and average daily trading

volumes of our ordinary shares on the JSE and ADSs on the Nasdaq Capital Market.

Price

Per

Ordinary Share

Price Per

ADS

Average Daily

Trading

Volume

Year Ended

High

Low

High

Low

Ordinary

Share

ADSs

June 30, 2006.........................................................................................

12.10

5.60

2.02

0.85 431,319

3,700,024

June 30, 2007.........................................................................................

11.50

3.70

1.63

0.54 829,879

3,088,840

June 30, 2008.........................................................................................

10.25

3.50

13.52

4.73 1,200,052

260,761

June 30, 2009.........................................................................................

9.55

2.86

10.59

2.85 932,905

186,575

June 30, 2010.........................................................................................

6.98

3.20

9.00

4.07 691,256

209,087

Price

Per

Ordinary Share

Price Per

ADS

Average Daily

Trading

Volume

Quarter

High

Low

High

Low

Ordinary

Share

ADSs

Q1 July – September 2008 ....................................................................

6.40

3.37

8.03

3.96 956,300

178,692

Q2 October – December 2008...............................................................

6.00

2.86

5.95

2.85 1,184,976

169,979

Q3 January – March 2009 .....................................................................

9.55

5.16

9.83

4.90 953,946

207,353

Q4 April – June 2009.............................................................................

8.45

5.91

10.59

6.80 647,197

191,322

Q1 July – September 2009 ....................................................................

6.98

5.24

9.00

6.54 496,655

160,990

Q2 October – December 2009...............................................................

5.96

3.20

8.05

4.45 1,021,809

292,438

Q3 January – March 2010 .....................................................................

5.71

3.60

7.90

4.61 757,818

261,006

Q4 April – June 2010.............................................................................

4.06

3.30

5.43

4.07 480,962

123,003

Q1 July – September 2010 ....................................................................

3.79

2.80

5.35

3.92 662,904

84,599

Price

Per

Ordinary Share

Price Per

ADS

Average Daily

Trading Volume

Month Ended

High

Low

High

Low

Ordinary

Share

ADSs

April 30, 2010 ........................................................................................

3.95

3.60

5.43

4.88

496,833

168,512

May 31, 2010 .........................................................................................

4.06

3.86

5.32

4.07 671,513

134,181

June 30, 2010 .........................................................................................

3.79

3.64

4.98

4.15 272,500

69,402

July 31, 2010..........................................................................................

3.50

2.99

4.45

3.92

244,254

39,731

August 31, 2010.....................................................................................

3.19

2.90

4.34

3.96 353,806

67,295

September 30, 2010 ...............................................................................

3.79

2.80

5.35

3.99 1,410,588

147,595

The cumulative preference shares are not traded on any exchange.

There have been no significant trading suspensions with respect to our ordinary shares on the JSE during the past three years

ended June 30, 2010, nor have there been any significant trading suspensions with respect to our ADRs on the Nasdaq Capital Market
since our listing on that market.

9B. PLAN OF DISTRIBUTION

Not applicable.

Note that with effect from July 23, 2007, we changed our ADS ratio to reflect one ADS for ten of our ordinary shares.

9C. MARKETS

Nature of Trading Markets

The principal trading market for our equity securities is the JSE and our ADSs that trade on the Nasdaq Capital Market

(formerly Nasdaq SmallCap Market) in the form of ADRs under the symbol “DROOY.” Our ordinary shares trade on the JSE under
the symbol “DRD.” Our ordinary shares also trade on the Marche Libre on the Paris Bourse (symbol: DUR) and Brussels Bourse
(symbol: DUR) in the form of International Depository Receipts. The ordinary shares also trade on the over the counter markets in
Berlin, Stuttgart and the Regulated Unofficial Market on the Frankfurt Stock Exchange. The ADRs are issued by The Bank of New
York, as depositary. Each ADR represents one ADS. Until July 23, 2007, each ADS represented one of our ordinary shares. Prior to
February 2001, our ADSs traded on the Nasdaq National Market.

On January 22, 2007, we received a Nasdaq Staff Deficiency letter indicating that we failed to comply with the $1.00 per

share Minimum Bid Price Requirement, or the MBPR, on the Nasdaq Capital Market for continued listing set forth in Marketplace
Rule 4320(e)(2)(E)(ii). In accordance with this Rule, we were provided with 180 calendar days, or until July 23, 2007, to regain
compliance. As our ADSs had been consistently trading on the Nasdaq Capital Market at a price below the MBPR, we changed our
ADS ratio from one ADS for one of our ordinary shares to one ADS for ten of our ordinary shares on July 23, 2007. With effect from
the commencement of business on July 23, 2007, we affected a 1:10 reverse stock split (i.e. a 10:1 consolidation) of our ADRs.

Nasdaq Exemption

Exemption from the shareholder approval requirements

Between August and December 2003, the Company entered into a series of discounted issuances with several different

investors resulting in the issuance of ordinary shares, and securities convertible into ordinary shares, totaling 46,843,902, or
25.43% of the total shares outstanding on a pre-issuance basis. Included within those issuances, on December 12, 2003, the
Company entered into an agreement granting Investec the option to acquire 10.2 million ordinary shares. The Company requested
an exemption from Nasdaq Marketplace Rule 5635(a)(1)(B) in reliance upon Nasdaq Marketplace Rule 5615(a)(3). Rule
5635(a)(1)(B) provides that shareholder approval is required upon issuing 20% or more of the common stock outstanding before
the issuance. Nasdaq granted this exemption on the basis that the shareholder approval requirements of Rule 4350(i)(1)(D) are
contrary to generally accepted business practices of companies located in South Africa.

The South African Companies Act of 1973 (as amended) requires issuers to obtain shareholder approval before the

issuance of any shares or rights to shares, which approval can be provided by specific authority or a general authority granted by
means of a resolution passed by shareholders in a general meeting. JSE Listing Requirements require 75% shareholder approval
for any issuance of shares for cash. JSE Listing Requirements do, however, permit an issuer to issue shares for cash under a
general authority granted by its shareholders, but not in excess of 15% of the company’s total issued share capital during any
financial year under that authority, or the general authority. In terms of the specific issuances for which the Company received the
exemption from Nasdaq described above, there was no JSE requirement that would mandate specific shareholder approval for
these transactions. The JSE Listing Requirements accept a general authority by our shareholders under certain circumstances. The
shareholders had approved a general authority which covered the relevant transactions by resolutions passed at the Company's
annual general meetings in November 2003. In addition, included in the shares issued for cash were approximately 24.4 million
shares to the value of R435.5 million ($63.1 million) which were used for the acquisition of the Porgera Joint Venture. Approval
was obtained from the JSE to deem these shares to be a vendor placing.

Exemption from the quorum requirements

Nasdaq’s Marketplace Rules, which apply to all companies listed on the Nasdaq Stock Market and Nasdaq Capital Market,

state in Rule 5620(c) that the minimum quorum for any meeting of holders of the company’s common stock must be no less than 33
1/3 % of the issuer’s outstanding shares. Consistent with the practice of companies incorporated in South Africa, our articles of
association only require a quorum of three members. As a result, and in connection with the listing of our ADSs on the Nasdaq
National Market in July 1996, we requested, and Nasdaq granted us in October 1996, an exemption from compliance with the Rule
5620(c) quorum requirement.

9D. SELLING SHAREHOLDERS

Not applicable.

9E. DILUTION

Not applicable.

9F. EXPENSES OF THE ISSUE

Not applicable.

ITEM 10. ADDITIONAL INFORMATION

10A. SHARE CAPITAL

Not applicable.

10B. MEMORANDUM AND ARTICLES OF ASSOCIATION

Description of Our Memorandum and Articles of Association and Ordinary Shares

As of June 30, 2010, we had authorized for issuance 600,000,000 ordinary shares, no par value, and 5,000,000 cumulative

preference shares, R0.10 par value. On that date, we had issued 384,884,379 ordinary shares and 5,000,000 cumulative preference
shares.

As of September 30, 2010, we had authorized for issuance 600,000,000 ordinary shares, no par value, and 5,000,000

cumulative preference shares, R0.10 par value. On that date, we had issued 384,884,379 ordinary shares and 5,000,000 cumulative
preference shares.

Set out below are brief summaries of certain provisions of our Articles of Association, or our Articles, the South African

Companies Act, 1973 (as amended), or the Companies Act, and the requirements of the JSE, all as in effect on September 30, 2010.
The summary does not purport to be complete and is subject to and qualified in its entirety by reference to the full text of the Articles,
the Companies Act, and the requirements of the JSE.

We are registered under the Companies Act of South Africa under registration number 1895/000926/06. As set forth in our

Memorandum of Association, our purpose is to explore and exploit mineral rights and establish and own mining enterprises.

Borrowing Powers

Our directors may, at their discretion, raise or borrow or secure the payment of any sum or sums of money for our use as

they see fit. For so long as we are a listed company, the directors shall so restrict our borrowings and exercise all voting and other
rights or powers of control exercisable by us in relation to our subsidiary companies so that the aggregate principal amount
outstanding in respect of us and any of our subsidiary companies, as the case may be, exclusive of inter-company borrowings, shall
not, except with the consent of our shareholders at a general meeting, exceed R30.0 million or the aggregate from time to time of our
issued and paid up capital, together with the aggregate of the amounts standing to the credit of all distributable and non-distributable
reserves, any of our share premium accounts and our subsidiaries' share premium accounts certified by our auditors and which form
part of our and our subsidiaries' financial statements, whichever is higher, refer to note 22 of our financial statements documented in
Item 18.

Share Ownership Requirements

Our directors are not required to hold any shares to qualify or be appointed as a director.

Voting by Directors

A director may authorize any other director to vote for him at any meeting at which neither he nor his alternate director

appointed by him is present. Any director so authorized shall, in addition to his own vote, have a vote for each director by whom he is
authorized.

The quorum necessary for the transaction of the business of the directors may be fixed by the directors and unless so fixed

shall be not less than two.

Directors are required to notify our board of directors of interests in companies and contracts. If a director's interest is under

discussion, depending on the nature of the interest, he shall not be allowed to vote and shall not be counted, for the purpose of any
resolution regarding his interest, in the quorum present at the meeting.

The Code of Corporate Practices and Conduct of the King II Report on Corporate Governance for South Africa, 2002

(substituted by the King III Report from March 1, 2010), sets out guidelines to promote the highest standards of corporate governance
among South African companies. The board of directors believes that our business should be conducted according to the highest legal
and ethical standards. In accordance with the board practice, all remuneration of directors is approved by the Remuneration and
Nominations Committee.

Under South African common law, directors are required to comply with certain fiduciary duties to the company and to

exercise proper care and skill in discharging their responsibilities.

Age Restrictions

There is no age limit for directors.

Election of Directors

Directors may be appointed at a general meeting from time to time. The directors may appoint any eligible person as a

director but he shall only hold office until the next annual general meeting when the relevant director shall be eligible for election.
One third of our directors, on a rotating basis, are subject to re-election at each annual general shareholder’s meeting. Retiring
directors usually make themselves available for re-election.

General Meetings

On the request of 100 shareholders or shareholders holding not less than one-twentieth of our share capital which carries the

right of voting at general meetings, we shall within 14 days of the lodging of a request by such shareholders issue a notice to
shareholders convening a general meeting for a date not less than 21 days and not more than 35 days from the date of the notice.
Directors may convene general meetings at any time.

Our annual general meeting and a meeting of our shareholders for the purpose of passing a special resolution may be called

by giving 21 days advance written notice of that meeting. For any other general meeting of our shareholders, 14 days advance written
notice is required.

Our Articles provide that if at a meeting convened upon request by our shareholders a quorum is not present within one half

hour after the time selected for the meeting, such meeting shall be dissolved. The necessary quorum is three members present in
person or represented by proxy.

Voting Rights

The holders of our ordinary shares are generally entitled to vote at general meetings and on a show of hands have one vote

per person and on a poll have one for every share held. The holders of our cumulative preference shares are not entitled to vote at a
general meeting unless any preference dividend is in arrears for more than six months at the date on which the notice convening the
general meeting is posted to the shareholders. Additionally, holders of cumulative preference shares may vote on resolutions which
adversely affect their interests and on resolutions regarding the disposal of all or substantially all of our assets or mineral rights. When
entitled to vote, holders of our cumulative preference shares are entitled to one vote per person on a show of hands and that portion of
the total votes which the aggregate amount of the nominal value of the shares held by the relevant shareholder bears to the aggregate
amount of the nominal value of all shares issued by us.

Dividends

We may, in a general meeting, or our directors may, from time to time, declare a dividend to be paid to the shareholders in

proportion to the number of shares they each hold. No dividend shall be declared except out of our profits. Dividends may be
declared either free or subject to the deduction of income tax or duty in respect of which we may be charged. Holders of ordinary
shares are entitled to receive dividends as and when declared by the directors.

Ownership Limitations

There are no limitations imposed by our Articles or South African law on the rights of shareholders to hold or vote on our

ordinary shares or securities convertible into our ordinary shares.

Winding-up

If we are wound-up, then the assets remaining after payment of all of our debts and liabilities, including the costs of

liquidation, shall be applied to repay to the shareholders the amount paid up on our issued capital and thereafter the balance shall be
distributed to the shareholders in proportion to their respective shareholdings. On a winding up, our cumulative preference shares
rank, in regard to all arrears of preference dividends, prior to the holders of ordinary shares. As of September 30, 2010, no such
dividends have been declared. Except for the preference dividend and as described in this Item our cumulative preference shares are
not entitled to any other participation in the distribution of our surplus assets on winding-up.

Reduction of Capital

We may, by special resolution, reduce the share capital authorized by our Memorandum of Association, or reduce our issued

share capital including, without limitation, any stated capital, capital redemption reserve fund and share premium account by making
distributions and buying back our shares.

100

Amendment of the Articles of Association

Our Articles may only be altered by the passing of a special resolution. A special resolution is passed when the shareholders

holding at least 25% of the total votes of all the members entitled to vote are present or represented by proxy at a meeting and, if the
resolution was passed on a show of hands, at least 75% of those shareholders voted in favor of the resolution and, if a poll was
demanded, at least 75% of the total votes to which those shareholders are entitled were cast in favor of the resolution.

Consent of the Holders of Cumulative Preference Shares

The rights and conditions attaching to the cumulative preference shares may not be cancelled, varied or added, nor may we

issue shares ranking, regarding rights to dividends or on winding up, in priority to or equal with our cumulative preference shares, or
dispose of all or part of the Argonaut mineral rights without the consent in writing of the registered holders of our cumulative
preference shares or the prior sanction of a resolution passed at a separate class meeting of the holders of our cumulative preference
shares.

Distributions

Under an amendment to the Articles on October 21, 2002, we are authorized to make payments in cash or in specie to our

shareholders in accordance with the provisions of the Companies Act of South Africa and other consents required by law from time
to time. We may, for example, in a general meeting, upon recommendation of our directors, resolve that any surplus funds
representing capital profits arising from the sale of any capital assets and not required for the payment of any fixed preferential
dividend, be distributed among our ordinary shareholders. However, no such profit shall be distributed unless we have sufficient
other assets to satisfy our liabilities and to cover our paid up share capital.

10C. MATERIAL CONTRACTS

Heads of Agreement entered into by Mintails Limited, Mogale Gold (Pty) Limited (“Mogale Gold”), Ergo Mining (Pty) Limited
(“Ergo Joint Venture”), DRDGOLD Limited (“DRDGOLD”) and East Rand Proprietary Mines Limited (“ERPM”), dated
December 8, 2008.

Under this Heads of Agreement Mogale Gold agreed to sell to DRDGOLD, and DRDGOLD agreed to purchase the 35%

interest (“the interest”) held by Mogale Gold in ErgoGold (formerly the Elsburg Gold Mining Joint Venture) together with all
rights that attach to the interest. The purchase price for the interest was R177 million.

Loan Facility entered into by Mintails South Africa (Pty) Limited (“Borrower”), DRDGOLD Limited (“Lender”), Mintails
Limited (“Borrower’s Guarantor”), Mogale Gold (Pty) Limited (Mogale Gold”) Ergo Uranium (Pty) Limited (“Ergo Uranium”)
dated December 8, 2008.

Under this loan facility the Lender agreed to provide the Borrower with an interest bearing loan facility for the purpose of

providing the Borrower with short term funding. The funds were to be used for the Borrower’s ordinary course of business
expenditure and the Lender’s costs associated with the preparation of this facility and associated securities. The amount of the
facility was up to R65 million. Interest would accrue and be paid or capitalized monthly on the outstanding principal from the date
of the relevant advance(s) until the date of repayment at the prime rate published by the Standard Bank of South Africa at the start
of the relevant monthly interest period plus 200 basis points. The Borrower’s Guarantor unconditionally and irrevocably
guaranteed to the Lender the due and punctual performance by the Borrower of its obligations in terms of the loan facility. The
Borrower, Mogale Gold and Ergo Uranium consented granting security in favour of the Lender over the 35% interest held by the
Borrower or any member of the Borrower’s group in ErgoGold (formerly Elsburg Gold Mining Joint Venture) and the interest
held in the Ergo Joint Venture.

Subscription and shareholders’ Agreement entered into by Mintails SA (Proprietary) Limited (“Mintails SA”), Witfontein Mining
(Proprietary) Limited (“Witfontein”) and Argonaut Financial Services (Proprietary) Limited (“Argonaut”) dated December 9,
2008.

Under this agreement Argonaut subscribed for 50% of the total share capital of Witfontein (the other 50% was held by

Mintails SA) for a subscription price of R20 million which would be exclusively utilized by Witfontein to discharge its
obligations under a sale agreement entered into with Maria Hendrina Beyers in terms of which Witfontein purchased the
Remaining Extent of Portion 2 of the farm Witfontein 262, Registration Division IQ, Gauteng Province, in extent 862.3008
hectares.

Witfontein shall, unless determined to the contrary at a general meeting, carry on the business of a property owner and

developer, or any other business or activity permitted by its memorandum of association, to be amended from time to time if need
be.

101

Facility Agreement between Investec Bank limited (“the Lender”) and DRDGOLD Limited (“the Borrower”) dated March 31,
2009.

Under this agreement the Lender agreed to make available to the Borrower the total facility amount of R250 million up to

December 31, 2009, unless terminated by agreement between the parties and the parties may extend the agreement. The Borrower
may discharge its obligations to pay the Lender either in cash or by allotting issuing and delivering shares to the Lender. The
interest rate payable on overdue amounts shall be the rate per annum as determined by the Lender to be the aggregate of the rate
for deposits in South African rand for a period of 90 days, which appears on the Reuters Screen SAFETY page under the caption
“YIELD” at 11:00 am on the relevant Quotation Date plus 2%. The Borrower shall also pay for necessary costs and a drawdown
fee of 4% of the advanced amount.

Final Heads of Agreement between Chizim Investments (Pvt) Limited (“Chizim”) and DRDGOLD Limited (“DRDGOLD”) dated
December 9, 2009

Under this agreement Chizim and DRDGOLD agree to establish a joint venture company registered in Zimbabwe for the

purposes of exploring and mining gold and other minerals for the mutual benefit of both Chizim and DRDGOLD as shareholders.
Chizim and DRDGOLD shall each hold 50% shares in the issued share capital of the joint venture company to be formed.
Chizim’s main initial contribution to the joint venture company will be the procurement of mining licences and DRDGOLD will
make an initial contribution toward the venture capital of the joint venture company of R7.5 million.

Memorandum of Agreement between Ergo Uranium (Pty) Ltd (“Ergo Uranium”) and East Rand Proprietary Mines Limited
(“ERPM”) dated January 21, 2010

Under this agreement Ergo Uranium agreed to sell to ERPM claims in loan account by Ergo Uranium against Ergo

Mining (Pty) Limited (“Ergo Mining”) in aggregate of R118 million and the 300 ordinary par value shares of R1.00 each in the
capital of Ergo Mining, constituting 50% of the total issued share capital in Ergo Mining. The purchase consideration for the sale
of the claims and shares is R82,088,321.73.

Heads of Agreement between East Rand Proprietary Mines Limited (“ERPM”) and Aurora Empowerment System (Pty) Limited
(“Aurora”) dated January 22, 2010

Under this agreement ERPM agreed to sell a metallurgical plant to Aurora for R20 million. Aurora was to pay a deposit

of R5 million and the balance of R15 million was payable on or before June 30, 2010, however ERPM may elect to waive
payment of the balance of the purchase price in exchange for the option to reclaim the Grootvlei and Marievale tailings dams for
minerals.

Domestic Medium Term Note Programme (“DMTN Programme”) entered into by DRDGOLD South African Operations (Pty)
Limited (“Issuer”) and DRDGOLD Limited (“guarantor’) dated September 30 2010.

Under this the DMTN Programme the Issuer may from time to time issue loan notes. The maximum aggregate nominal

amount of all such notes from time to time outstanding under the DMTN Programme will not exceed R500,000,000 (five hundred
million South African Rand). The guarantor guarantees to the holders of the notes the due and punctual performance by the Issuer
of its payment obligations under the DMTN Programme notes. The notes may be listed on the JSE Limited. ABSA Capital, a
division of ABSA Bank Limited, has been appointed dealer and arranger of the notes.

10D. EXCHANGE CONTROLS

The following is a summary of the material South African exchange control measures, which has been derived from

publicly available documents. The following summary is not a comprehensive description of all the exchange control regulations.
The discussion in this section is based on the current law and positions of the South African Government. Changes in the law may
alter the exchange control provisions that apply, possibly on a retroactive basis.

Introduction

Dealings in foreign currency, the export of capital and revenue, payments by residents to non-residents and various other

exchange control matters in South Africa are regulated by the South African exchange control regulations, or the Regulations. The
Regulations form part of the general monetary policy of South Africa. The Regulations are issued under Section 9 of the Currency
and Exchanges Act, 1933 (as amended). In terms of the Regulations, the control over South African capital and revenue reserves, as
well as the accruals and spending thereof, is vested in the Treasury (Ministry of Finance), or the Treasury.

The Treasury has delegated the administration of exchange controls to the Exchange Control Department of the South

African Reserve Bank, or SARB, which is responsible for the day to day administration and functioning of exchange controls. SARB
has a wide discretion. Certain banks authorized by the Treasury to co-administer certain of the exchange controls, are authorized by
the Treasury to deal in foreign exchange. Such dealings in foreign exchange by authorized dealers are undertaken in accordance with
the provisions and requirements of the exchange control rulings, or Rulings, and contain certain administrative measures, as well as

102

conditions and limits applicable to transactions in foreign exchange, which may be undertaken by authorized dealers. Non-residents
have been granted general approval, in terms of the Rulings, to deal in South African assets, to invest and disinvest in South Africa.

The Regulations provide for restrictions on exporting capital from the Common Monetary Area consisting of South Africa,

Namibia, and the Kingdoms of Lesotho and Swaziland. Transactions between residents of the Common Monetary Area are not
subject to these exchange control regulations.

There are many inherent disadvantages to exchange controls, including distortion of the price mechanism, problems

encountered in the application of monetary policy, detrimental effects on inward foreign investment and administrative costs
associated therewith. The South African Finance Minister has indicated that all remaining exchange controls are likely to be
dismantled as soon as circumstances permit. Since 1998, there has been a gradual relaxation of exchange controls. The gradual
approach to the abolition of exchange controls adopted by the Government of South Africa is designed to allow the economy to
adjust more smoothly to the removal of controls that have been in place for a considerable period of time. The stated objective of the
authorities is equality of treatment between residents and non-residents with respect to inflows and outflows of capital. The focus of
regulation, subsequent to the abolition of exchange controls, is expected to favor the positive aspects of prudential financial
supervision.

The present exchange control system in South Africa is used principally to control capital movements. South African

companies are not permitted to maintain foreign bank accounts without SARB approval and, without the approval of SARB, are
generally not permitted to export capital from South Africa or hold foreign currency. In addition, South African companies are
required to obtain the approval of SARB prior to raising foreign funding on the strength of their South African statements of financial
position, which would permit recourse to South Africa in the event of defaults. Where 75% or more of a South African company's
capital, voting power, power of control or earnings is directly or indirectly controlled by non-residents, such a corporation is
designated an “affected person” by SARB, and certain restrictions are placed on its ability to obtain local financial assistance. We are
not, and have never been, designated an “affected person” by SARB.

Foreign investment and outward loans by South African companies are also restricted. In addition, without the approval of

SARB, South African companies are generally required to repatriate to South Africa profits of foreign operations and are limited in
their ability to utilize profits of one foreign business to finance operations of a different foreign business. South African companies
establishing subsidiaries, branches, offices or joint ventures abroad are generally required to submit financial statements on these
operations as well as progress reports to SARB on an annual basis. As a result, a South African Company's ability to raise and deploy
capital outside the Common Monetary Area is restricted.

Although exchange controls have been gradually relaxed since 1998, unlimited outward transfers of capital are not permitted

at this stage. Some of the more salient changes to the South African exchange control provisions over the past few years have been as
follows:

• corporations wishing to invest in countries outside the Common Monetary Area, in addition to what is set out below, apply

for permission to enter into corporate asset/share swap and share placement transactions to acquire foreign investments. The
latter mechanism entails the placement of the locally quoted corporation's shares with long-term overseas holders who, in
payment for the shares, provide the foreign currency abroad which the corporation then uses to acquire the target
investment;

• corporations wishing to establish new overseas ventures are permitted to transfer offshore up to R1.0 billion to finance

approved investments abroad and up to R2.0 billion to finance approved new investments in African countries. However,
the approval of SARB is required in advance. On application to SARB, corporations are also allowed to use part of their
local cash holdings to finance up to 10% of approved new foreign investments where the cost of these investments exceeds
the current limits;

• as a general rule, SARB requires that more than 50% of equity of the acquired off-shore venture is acquired within a

predetermined period of time, as a prerequisite to allowing the expatriation of funds. If these requirements are not met,
SARB may instruct that the equity be disposed of. In our experience SARB has taken a commercial view on this, and has on
occasion extended the period of time for compliance; and

• remittance of directors' fees payable to persons permanently resident outside the Common Monetary Area may be approved

by authorized dealers, in terms of the Rulings.

Authorized dealers in foreign exchange may, against the production of suitable documentary evidence, provide forward

cover to South African residents in respect of fixed and ascertained foreign exchange commitments covering the movement of goods.

103

Persons who emigrate from South Africa are entitled to take limited amounts of money out of South Africa as a settling-in

allowance. The balance of the emigrant's funds will be blocked and held under the control of an authorized dealer. These blocked
funds may only be invested in:

• blocked current, savings, interest bearing deposit accounts in the books of an authorized dealer in the banking sector;

• securities quoted on the JSE and financial instruments listed on the Bond Exchange of South Africa which are deposited

with an authorized dealer and not released except temporarily for switching purposes, without the approval of SARB.
Authorized dealers must at all times be able to demonstrate that listed or quoted securities or financial instruments which are
dematerialized or immobilized in a central securities depository are being held subject to the control of the authorized dealer
concerned; or

• mutual funds.

Aside from the investments referred to above, blocked rands may only be utilized for very limited purposes. Dividends

declared out of capital gains or out of income earned prior to emigration remain subject to the blocking procedure. It is not possible to
predict when existing exchange controls will be abolished or whether they will be continued or modified by the South African
Government in the future.

Sale of Shares

Under present exchange control regulations in South Africa, our ordinary shares and ADSs are freely transferable outside

the Common Monetary Area between non-residents of the Common Monetary Area. In addition, the proceeds from the sale of
ordinary shares on the JSE on behalf of shareholders who are not residents of the Common Monetary Area are freely remittable to
such shareholders. Share certificates held by non-residents will be endorsed with the words “non-resident,” unless dematerialized.

Dividends

Dividends declared in respect of shares held by a non-resident in a company whose shares are listed on the JSE are freely

remittable.

Any cash dividends paid by us are paid in rands. Holders of ADSs on the relevant record date will be entitled to receive any

dividends payable in respect of the shares underlying the ADSs, subject to the terms of the deposit agreement entered on August 12,
1996, and as amended and restated, between the Company and The Bank of New York, as the depository. Subject to exceptions
provided in the deposit agreement, cash dividends paid in rand will be converted by the depositary to dollars and paid by the
depositary to holders of ADSs, net of conversion expenses of the depositary, in accordance with the deposit agreement. The
depositary will charge holders of ADSs, to the extent applicable, taxes and other governmental charges and specified fees and other
expenses.

Voting rights

There are no limitations imposed by South African law or by our Articles on the right of non-South African shareholders to

hold or vote our ordinary shares.

10E. TAXATION

Material South African Income Tax Consequences

The following is a summary of material income tax considerations under South African income tax law. No representation

with respect to the consequences to any particular purchaser of our securities is made hereby. Prospective purchasers are urged to
consult their tax advisers with respect to their particular circumstances and the effect of South African or other tax laws to which they
may be subject.

South Africa imposes tax on worldwide income of South African residents. Generally, South African non-residents do not

pay tax in South Africa except in the following circumstances:

Income Tax and Taxation of dividends

Non-residents will pay income tax on any amounts received by or accrued to them from a source within (or deemed to be

within) South Africa. Interest earned by a non-resident on a debt instrument issued by a South African company will be regarded as
being derived from a South African source but will be regarded as exempt from taxation in terms of Section 10(1)(i) of the South
African Income Tax Act, 1962 (as amended), or the Income Tax Act. This exemption applies to so much of any interest and
dividends (which are not otherwise exempt) received from a South African source not exceeding (a) R30,000 if the taxpayer is 65
years of age or older or (b) R21,000 if the taxpayer is younger than 65 years of age at the end of the relevant tax year.

No withholding tax is deductible in respect of interest payments made to non-resident investors.

104

In 1993, all existing gold mining companies had the option to elect to be exempt from STC. If the election was made, a

higher tax rate would apply for both mining and non-mining income. In fiscal 2010, the tax rates for taxable mining and
non-mining income, for companies that elected the STC exemption were 43% (2009: 43% and 2008: 43%) and 35% (2009: 35%
and 2008: 35%), respectively. During those same years the tax rates for companies that did not elect the STC exemption were
34% (2009: 34% and 2008: 34%) and 28% (2009: 28% and 2008: 28%), respectively. In 1993, the Company elected not to be
exempt from STC, as this would have meant that the Company would have been liable for normal taxation at the higher rates of
43% for mining income and 35% for non-mining income. The Company, having chosen not to be subject to the STC exemption, is
subject to 34% tax on mining income and 28% for non-mining income. With the exception of Crown, all of the South African
subsidiaries elected not to be exempt from STC.

No income tax is payable on dividends paid to residents or non-residents, in terms of Section 10(1)(k) of the Income Tax

Act except in respect of foreign dividends received by or accrued to residents of South Africa. Accordingly, there is no withholding
tax on dividends received by or accrued to non-resident shareholders of companies listed in South Africa and non-residents will
receive the same dividend as South African resident shareholders. Prior to payment of the dividend, the Company pays Secondary
Tax on Companies (STC) at a rate of 10% (before October 1, 2007 12.5%) of the excess of dividends declared over dividends
received in a dividend cycle but the full amount of the dividend declared is paid to shareholders.

However, in accordance with new amendments to the Income Tax Act, which is yet to come into operation, which will

supersede Section 10(1)(k), withholding tax of 10% will be deductable from dividends declared after the effective date (which is yet
to be published) as opposed to the relevant company having to pay STC over-and-above the dividend declared. These amendments
are set out in Part VIII in Chapter II of the Income Tax Act. Section 64F of the amendments will set out beneficial owners who are
exempt from the withholding tax, which includes resident companies receiving a dividend after the effective date (which is yet to be
announced). Should these amendments come into operation, the Convention between the United States of America and the Republic
of South Africa for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and
Capital Gains, or the Tax Treaty, would limit the rate of this tax with respect to dividends paid on ordinary shares or ADSs to a US
resident (within the meaning of the Tax Treaty) to 5 percent of the gross amount of the dividends if such US resident is a company
which holds directly at least 10 percent of our voting stock and 15 percent of the gross amount of the dividends in all other cases. The
above provisions shall not apply if the beneficial owner of the dividends is resident in the US, carries on business in South Africa
through a permanent establishment situated in South Africa, or performs in South Africa independent personal services from a fixed
base situated in South Africa, and the dividends are attributable to such permanent establishment or fixed base.

Capital Gains Tax

Non-residents are generally not subject to Capital Gains Tax, or CGT, in South Africa. They will only be subject to CGT on

gains arising from the disposal of capital assets if the assets disposed of consist of:

• immovable property owned by the non-residents situated in South Africa, or any interest or right in or to immovable

property. A non-resident will have an interest in immovable property if it has a direct or indirect shareholding of at least
20% in a company, where 80% or more of the net assets of that company (determined on a market value basis) are
attributable directly or indirectly to immovable property; or

• any asset of a permanent establishment of a non-resident in South Africa through which a trade is carried on.

If the non-residents are not subject to CGT because the assets disposed of do not fall within the categories described above,

it follows that they will also not be able to claim the capital losses arising from the disposal of the assets.

Material United States Federal Income Tax Consequences

The following is a summary of material US federal income tax consequences to US holders (as defined below) of the

purchase, ownership and disposition of ordinary shares or ADSs. It deals only with US holders who hold ordinary shares or ADSs as
capital assets for US federal income tax purposes. This discussion is based upon the provisions of the Internal Revenue Code of 1986,
as amended, or the Code, published rulings, judicial decisions and the Treasury regulations, all as currently in effect and all of which
are subject to change, possibly on a retroactive basis. This discussion has no binding effect or official status of any kind; we cannot
assure holders that the conclusions reached below would be sustained by a court if challenged by the Internal Revenue Service.

This discussion does not address all aspects of US federal income taxation that may be applicable to holders in light of their

particular circumstances and does not address special classes of US holders subject to special treatment (such as dealers in securities
or currencies, partnerships or other pass-through entities, financial institutions, life insurance companies, banks, tax-exempt
organizations, certain expatriates or former long-term residents of the United States, persons holding ordinary shares or ADSs as part
of a “hedge,” “conversion transaction,” “synthetic security,” “straddle,” “constructive sale” or other integrated investment, persons
whose functional currency is not the US dollar, or persons that actually or constructively own ten percent or more of our voting
stock). This discussion addresses only US federal income tax consequences and does not address the effect of any state, local, or
foreign tax laws that may apply, the alternative minimum tax or the application of the federal estate or gift tax.

A “US holder” is a beneficial owner of ordinary shares or ADSs that is, for US federal income tax purposes:

105

• a citizen or resident of the US;

• a corporation or other entity subject to tax as a corporation that is created or organized under the laws of the US or any

political subdivision thereof;

• an estate, the income of which is subject to US federal income tax without regard to its source; or

• a trust, if a court within the US is able to exercise primary supervision over the administration of the trust and one or more

US persons have the authority to control all substantial decisions of the trust or if the trust has made a valid election to be
treated as a US person.

If a partnership holds any ordinary shares or ADSs, the tax treatment of a partner will generally depend on the status of the

partner and on the activities of the partnership. Partners of partnerships holding any ordinary shares or ADSs are urged to consult
their tax advisors.

Because individual circumstances may differ, US holders of ordinary shares or ADSs are urged to consult their tax

advisors concerning the US federal income tax consequences applicable to their particular situations as well as any
consequences to them arising under the tax laws of any foreign, state or local taxing jurisdiction.

Ownership of Ordinary Shares or ADSs

For purposes of the Code, a US holder of ADSs will be treated for US federal income tax purposes as the owner of the

ordinary shares represented by those ADSs. Exchanges of ordinary shares for ADSs and ADSs for ordinary shares generally will not
be subject to US federal income tax.

For US federal income tax purposes, distributions with respect to the ordinary shares or ADSs, other than distributions in

liquidation and distributions in redemption of stock that are treated as exchanges, will be taxed to US holders as ordinary dividend
income to the extent that the distributions do not exceed our current and accumulated earnings and profits. For US federal income tax
purposes, the amount of any distribution received by a US holder will equal the dollar value of the sum of the South African rand
payments made (including the amount of South African income taxes, if any, withheld with respect to such payments), determined at
the “spot rate” on the date the dividend distribution is includable in such US holder's income, regardless of whether the payment is in
fact converted into dollars. Generally, any gain or loss resulting from currency exchange fluctuations during the period from the date
a US holder includes the dividend payment in income to the date such holder converts the payment into dollars will be treated as
ordinary income or loss. Distributions, if any, in excess of our current and accumulated earnings and profits will constitute a non-
taxable return of capital and will be applied against and reduce the holder's basis in the ordinary shares or ADSs. To the extent that
these distributions exceed the US holder's tax basis in the ordinary shares or ADSs, as applicable, the excess generally will be treated
as capital gain, subject to the discussion below under the heading “Passive Foreign Investment Company”. We do not intend to
calculate our earnings or profits for US federal income tax purposes.

“Qualified dividend income” received by individual US holders (as well as certain trusts and estates) for taxable years

beginning on or before December 31, 2010 generally will be taxed at a maximum US federal income tax rate of 15% provided certain
conditions are met, including a minimum holding period. This reduced rate generally would apply to dividends paid by us if, at the

time such dividends are paid, either (i) we are eligible for benefits under a qualifying income tax treaty with the US or (ii) our
ordinary shares or ADSs with respect to which such dividends were paid are readily tradable on an established securities market in
the US. However, this reduced rate is subject to certain important requirements and exceptions, including, without limitation, certain
holding period requirements and an exception applicable if we are treated as a passive foreign investment company as discussed
under the heading “Passive Foreign Investment Company”. US holders are urged to consult their tax advisors regarding the US
federal income tax rate that will be applicable to their receipt of any dividends paid with respect to the ordinary shares and ADSs.

For purposes of this discussion, the “spot rate” generally means a rate that reflects a fair market rate of exchange available to

the public for currency under a “spot contract” in a free market and involving representative amounts. A “spot contract” is a contract
to buy or sell a currency on or before two business days following the date of the execution of the contract. If such a spot rate cannot
be demonstrated, the US Internal Revenue Service has the authority to determine the spot rate.

Dividend income derived with respect to the ordinary shares or ADSs will not be eligible for the dividends received

deduction generally allowed to a US corporation under Section 243 of the Code. Dividend income will be treated as foreign source
income for foreign tax credit and other purposes. In computing the separate foreign tax credit limitations, dividend income should
generally constitute “passive category income,” or in the case of certain US holders, “general category income.”

106

Disposition of Ordinary Shares or ADSs

Upon a sale, exchange, or other taxable disposition of ordinary shares or ADSs, a US holder will recognize gain or loss in an

amount equal to the difference between the US dollar value of the amount realized on the sale or exchange and such holder's adjusted
tax basis in the ordinary shares or ADSs. Subject to the application of the “passive foreign investment company” rules discussed
below, such gain or loss generally will be capital gain or loss and will be long-term capital gain or loss if the US holder has held the
ordinary shares or ADSs for more than one year. The deductibility of capital losses is subject to limitations. Gain or loss recognized
by a US holder on the taxable disposition of ordinary shares or ADSs generally will be treated as US-source gain or loss for US
foreign tax credit purposes.

In the case of a cash basis US holder who receives rands in connection with the taxable disposition of ordinary shares or

ADSs, the amount realized will be based on the spot rate as determined on the settlement date of such exchange. A US holder who
receives payment in rand and converts rand into US dollars at a conversion rate other than the rate in effect on the settlement date
may have a foreign currency exchange gain or loss that would be treated as ordinary income or loss.

An accrual basis US holder may elect the same treatment required of cash basis taxpayers with respect to a taxable

disposition of ordinary shares or ADSs, provided that the election is applied consistently from year to year. Such election may not be
changed without the consent of the Internal Revenue Service. In the event that an accrual basis holder does not elect to be treated as a
cash basis taxpayer, such US holder may have a foreign currency gain or loss for US federal income tax purposes because of the
differences between the US dollar value of the currency received prevailing on the trade date and the settlement date. Any such
currency gain or loss will be treated as ordinary income or loss and would be in addition to gain or loss, if any, recognized by such
US holder on the disposition of such ordinary shares or ADSs.

Passive Foreign Investment Company

A special and adverse set of US federal income tax rules apply to a US holder that holds stock in a passive foreign

investment company, or PFIC. We would be a PFIC for US federal income tax purposes if for any taxable year either (i) 75% or more
of our gross income, including our pro rata share of the gross income of any company in which we are considered to own 25% or
more of the shares by value, were passive income or (ii) 50% or more of our average total assets (by value), including our pro rata
share of the assets of any company in which we are considered to own 25% or more of the shares by value, were assets that produced
or were held for the production of passive income. If we were a PFIC, US holders of the ordinary shares or ADSs would be subject to
special rules with respect to (i) any gain recognized upon the disposition of the ordinary shares or ADSs and (ii) any receipt of an
excess distribution (generally, any distributions to a US holder during a single taxable year that is greater than 125% of the average
amount of distributions received by such US holder during the three preceding taxable years in respect of the ordinary shares or
ADSs or, if shorter, such US holder's holding period for the ordinary shares or ADSs). Under these rules:

• the gain or excess distribution will be allocated ratably over a US holder's holding period for the ordinary shares or ADSs, as

applicable;

• the amount allocated to the taxable year in which a US holder realizes the gain or excess distribution will be taxed as

ordinary income;

• the amount allocated to each prior year, with certain exceptions, will be taxed at the highest tax rate in effect for that year;

and

• the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such year.

Although we generally will be treated as a PFIC as to any US holder if we are a PFIC for any year during a US holder's

holding period, if we cease to satisfy the requirements for PFIC classification, the US holder may avoid PFIC classification for
subsequent years if such holder elects to recognize gain based on the unrealized appreciation in the ordinary shares or ADSs through
the close of the tax year in which we cease to be a PFIC.

A US holder who beneficially owns stock in a PFIC must file Form 8621 (Return by a Shareholder of a Passive Foreign

Investment Company or Qualified Electing Fund) with the Internal Revenue Service for each tax year such holder holds stock in a
PFIC and (i) recognizes gain on a direct or indirect disposition of such stock, (ii) receives certain direct or indirect distributions from
such PFIC, or (iii) is making certain elections (including a mark-to-market election and an election to be treated as a “qualified
electing fund,” as described below) with respect to such PFIC. This form describes any distributions received with respect to such
stock and any gain realized upon the disposition of such stock. Under newly enacted legislation, unless otherwise provided by the US
Secretary of Treasury, shareholders of a PFIC are required to file an annual report with the Internal Revenue Service containing such
information as the US Secretary of Treasury may require. Although the information required to be reported to the Internal Revenue
Service pursuant to such newly enacted legislation remains unknown, it could enhance the reporting requirements applicable to US
holders of our ordinary shares or ADSs.

A US holder of the ordinary shares or ADSs that are treated as “marketable stock” under the PFIC rules may be able to

avoid the imposition of the special tax and interest charge described above by making a mark-to-market election. Pursuant to this
election, the US holder would include in ordinary income or loss for each taxable year an amount equal to the difference as of the
close of the taxable year between the fair market value of the ordinary shares or ADSs and the US holder's adjusted tax basis in such
ordinary shares or ADSs. Losses would be allowed only to the extent of net mark-to-market gain previously included by the US

107

holder under the election for prior taxable years. If a mark-to-market election with respect to ordinary shares or ADSs is in effect on
the date of a US holder's death, the tax basis of the ordinary shares or ADSs in the hands of a US holder who acquired them from a
decedent will be the lesser of the decedent's tax basis or the fair market value of the ordinary shares or ADSs. US holders desiring to
make the mark-to-market election are urged to consult their tax advisors with respect to the application and effect of making the
election for the ordinary shares or ADSs.

In the case of a US holder who holds ordinary shares or ADSs and who does not make a mark-to-market election, the

special tax and interest charge described above will not apply if such holder makes an election to treat us as a “qualified electing
fund” in the first taxable year in which such holder owns the ordinary shares or ADSs and if we comply with certain reporting
requirements. However, we do not intend to supply US holders with the information needed to report income and gain pursuant to a
“qualified electing fund” election in the event that we are classified as a PFIC.

We believe that we were not a PFIC for our 2010 fiscal year ended June 30, 2010. However, under the PFIC rules income

and assets are require to be measured and classified in accordance with US federal income tax principles. Our analysis is based on our
financial statements as prepared in accordance with IFRS, which may substantially differ from US federal income tax principles.
Therefore, no assurance can be given that we were not a PFIC for our 2010 fiscal year ended June 30, 2010. Furthermore, the tests for
determining whether we would be a PFIC for any taxable year are applied annually and it is difficult to make accurate predictions of
future income and assets, which are relevant to this determination. In addition, certain factors in the PFIC determination, such as
reductions in the market value of our capital stock, are not within our control and can cause us to become a PFIC. Accordingly, there
can be no assurance that we will not become a PFIC.

The rules relating to PFICs are very complex. US holders are urged to consult their tax advisors regarding the application of
the PFIC rules to their investments in our ordinary shares or ADSs.

Information Reporting and Backup Withholding

Payments made in the United States or through certain US-related financial intermediaries of dividends or the proceeds of

the sale or other disposition of our ordinary shares or ADSs may be subject to information reporting and US federal backup
withholding if the recipient of such payment is not an “exempt recipient” and fails to supply certain identifying information, such as
an accurate taxpayer identification number, in the required manner. Generally, individuals are not exempt recipients, whereas
corporations and certain other entities generally are exempt recipients. The backup withholding tax rate is currently 28%. Payments
made with respect to our ordinary shares or ADSs to a US holder must be reported to the Internal Revenue Service, unless the US
holder is an exempt recipient or otherwise establishes an exemption. Any amount withheld from a payment to a US holder under the
backup withholding rules is refundable or allowable as a credit against the holder's US federal income tax, provided that the required
information is furnished to the Internal Revenue Service.

10F. DIVIDENDS AND PAYING AGENTS

On August 26, 2010, we declared a dividend which, in total, amounts to R19.2 million (5 cents per ordinary share).

Secondary tax on companies of R1.7 million is payable on the dividend. There are no dividend restrictions.

Date of entitlement:

October 8, 2010

Approximate date of conversion

October 15, 2010

Approximate payment date:

October 25, 2010

Paying agents:

Link Market Services (US and SA)

St James’s Corporate Services Limited (UK)

Computershare (Australia)

10G. STATEMENT BY EXPERTS

Not applicable.

10H. DOCUMENTS ON DISPLAY

You may request a copy of our US Securities and Exchange Commission filings, at no cost, by writing or calling us at

DRDGOLD Limited, P.O. Box 390, Maraisburg, Johannesburg, South Africa 1700. Attn: Group Company Secretary. Tel No. +27-
11-470-2600. A copy of each report submitted in accordance with applicable United States law is available for public review at our
principal executive offices.

A copy of each document concerning us that is referred to in this Annual Report on Form 20-F, is available for public view

at our principal executive offices at DRDGOLD Limited, Quadrum Office Park, Building 1, 50 Constantia Boulevard, Constantia
Kloof Ext.28, South Africa 1709.

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10I. SUBSIDIARY INFORMATION

Not applicable.

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

General

In the normal course of our operations, we are exposed to market risk, including commodity price, foreign currency, interest

and credit risks. We do not hold or issue derivative financial instruments for speculative purposes, nor do we hedge forward gold
sales.

Refer to Item 18. ‘‘Financial Statements - Note 24 - Financial instruments’’ of the consolidated financial statements for a

qualitative and quantitative discussion of our exposure to these market risks.

Commodity price risk

The market price of gold has a significant effect on our results of operations, our ability and the ability of our subsidiaries to

pay dividends and undertake capital expenditures, and the market price of our ordinary shares or ADSs. Historically, gold prices have
fluctuated widely and are affected by numerous industry factors over which we have no control. The aggregate effect of these factors
on the gold price is impossible for us to predict. The price of gold may not remain at a level allowing us to economically exploit our
reserves. It is our policy not to hedge this commodity price risk.

Concentration of credit risk

Credit risk is the risk of financial loss to us if a customer or counterparty to a financial instrument fails to meet its

contractual obligations, and arises principally from our receivables from customers and investment securities

Our financial instruments do not represent a concentration of credit risk, because we deal with a variety of major banks and

financial institutions located in South Africa after evaluating the credit ratings of the representative financial institutions.
Furthermore, our trade receivables and loans are regularly monitored and assessed for recoverability. Where it is appropriate, an
impairment loss is raised. In addition, our South African operations deliver their gold to Rand Refinery Limited (Rand Refinery),
which refines the gold to saleable purity levels and then sells the gold, on behalf of the South African operations, on the bullion
market. The gold is sold by Rand Refinery usually on the same day as it is delivered and settlement is made within two days.

Foreign currency risk

Our reporting currency is the South African rand. Although gold is sold in US dollars, the Company is obliged to convert

this into South African rands. We are thus exposed to fluctuations in the US dollar/South African rand exchange rate. Foreign
exchange fluctuations affect the cash flow that we will realize from our operations as gold is sold in US dollars, while production
costs are incurred primarily in South African rands. Our results are positively affected when the US dollar strengthens against the
rand and adversely affected when the US dollar weakens against the rand. Our cash and cash equivalent balances are held in US
dollars and South African rands; holdings denominated in other currencies are relatively insignificant.

Long-term debt

Set out below is an analysis of our debt as at June 30, 2010, analyzed between fixed and variable interest rates. All of our

long-term debt is denominated in South African rand.

Total

R'000

Interest rate

Variable rate........................................................................................................

Weighted average interest rate.........................................................................

Fixed rate.............................................................................................................

58,977

Weighted average interest rate.........................................................................

13%

Total ....................................................................................................................

58,977

Repayment period

2010.....................................................................................................................

2011.....................................................................................................................

2012 onwards ......................................................................................................

58,977

Total ....................................................................................................................

58,977

Based on our fiscal 2010 financial results, a hypothetical 10% (increase)/decrease in interest rate activity would not

(increase)/decrease our interest expense.

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ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

12A. DEBT SECURITIES

Not applicable.

12B. WARRANTS AND RIGHTS

Not applicable.

12C. OTHER SECURITIES

Not applicable.

12D.1 NAME AND ADDRESS OF DEPOSITARY

The Bank of New York Mellon, registered address: 101 Barclay Street, New York, 10286, United States of America, and is

appointed as DRDGOLD’s Depositary Bank.

12D.2 DESCRIPTION OF DRDGOLD’S AMERICAN DEPOSITARY SHARES

Description of DRDGOLD ADSs

The Bank of New York Mellon issues DRDGOLD’s American Depositary Shares, or ADSs. One ADS represents the

ownership interest of ten ordinary shares of DRDGOLD.

The Deposit Agreement

This section provides a summary description of DRDGOLD’s ADSs.

DRDGOLD has entered into an Amended and Restated Deposit Agreement dated as of August 12, 1996, as amended and

restated as of October 2, 1996, as further amended and restated as of August 6, 1998, as further amended and restated July 23, 2007,
among DRDGOLD Limited, The Bank of New York Mellon, as Depositary, and the owners and beneficial owners of ADRs from
time to time (the “Deposit Agreement”).

The following is a summary of the material provisions of the Deposit Agreement. For more complete information, read the

entire Deposit Agreement and the form of American Depositary Receipts, which DRDGOLD has filed with the SEC as an exhibit to
Amendment No. 1 to DRDGOLD’s Registration Statement (File No. 333-140850) on Form F-6. Copies of the Deposit Agreement
are also available for inspection at the Corporate Trust Office of The Bank of New York Mellon currently located at 101 Barclay
Street, New York, 10286, United States of America.

Description of the ADSs

The Bank of New York Mellon, as Depositary, will register and deliver ADSs. Each ADS represents ten ordinary shares (or

the right to receive 10 shares) deposited with The Bank of New York Mellon or their nominated custodians. Each ADS will also
represent any other securities, cash or other property which may be held by The Bank of New York Mellon. The Bank of New York
Mellon’s Corporate Trust Office at which the ADSs will be administered is located at 101 Barclay Street, New York, 10286. The
Bank of New York Mellon’s principal executive office is located at One Wall Street, New York, 10286.

ADSs may be held either (1) directly (i) by having an American Depositary Receipt, also referred to as an ADR, which is a

certificate evidencing a specific number of ADSs, registered in the holder’s name, or (ii) by having ADSs registered in a holder’s
name in the Direct Registration System, or (2) indirectly by holding a security entitlement in ADSs through a broker or other
financial institution. If ADSs are held directly, such holders are ADS holders. This description applies to ADS holders. If ADSs are
held indirectly, such holders must rely on procedures of their broker or other financial institution to assert the rights of ADS
registered holders described in this section. Such holders should consult with their broker or financial institution to find out what
those procedures are.

The Direct Registration System, or DRS, is a system administrated by the Depository Trust Company, or DTC, pursuant to

which the depositary may register the ownership of uncertificated ADSs, which ownership will be evidenced by periodic statements
sent by the depositary to the registered holders of uncertificated ADSs.

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DRDGOLD will not treat ADS holders as its shareholders and ADS holders do not have shareholder rights. South African

law governs shareholder rights. The Bank of New York Mellon is the holder of the shares underlying the ADSs. Registered holders of
ADSs have ADS holder rights. The Deposit Agreement sets out ADS holder rights as well as the rights and obligations of The Bank
of New York Mellon. New York law governs the Deposit Agreement and the ADSs.

Dividends and Other Distributions

The Bank of New York Mellon has agreed to pay to holders of ADSs the cash dividends or other distributions it or a

custodian receives on DRDGOLD ordinary shares or other deposited securities after deducting any fees and expenses and any
applicable withholding taxes. Holders of ADSs will receive these distributions in proportion to the number of DRDGOLD ordinary
shares that their ADSs represent.

Cash

The Bank of New York Mellon will convert any cash dividend or other cash distribution DRDGOLD pays on DRDGOLD’s

ordinary shares into US Dollars (unless DRDGOLD pays it in US Dollars), if it can do so on a reasonable basis and can transfer the
US Dollars to the United States. Currently, DRDGOLD pays dividends on ordinary shares in South African Rand. DRDGOLD may
declare dividends and distributions on ordinary shares in any currency that the board of directors or shareholders at a general meeting
approves.

The Bank of New York Mellon may hold the non-US currency it cannot convert for the account of holders of ADSs who

have not been paid. It will not invest the non-US currency, and it will not be liable for the interest. Before making a distribution, any
withholding taxes that must be paid will be deducted. See “Payment of Taxes” below. The Bank of New York Mellon will distribute
only whole US Dollars and cents and will round fractional cents to the nearest whole cent. If the exchange rates fluctuate during the
time when The Bank of New York Mellon cannot convert the non-US currency, holders of ADSs may lose some or all of the value of
the distribution.

Ordinary Shares

The Bank of New York Mellon may distribute to holders of ADSs additional ADSs representing ordinary shares that

DRDGOLD distributes as a dividend or free distribution, if DRDGOLD provides it promptly with satisfactory evidence that it is legal
to do so. If The Bank of New York Mellon does not distribute additional ADSs, the outstanding ADSs will also represent the newly
distributed DRDGOLD ordinary shares. The Bank of New York Mellon will only distribute whole ADSs. It will sell DRDGOLD
ordinary shares that would require it to deliver a fraction of an ADS and distribute the net proceeds in the same way as it distributes
cash. The Bank of New York Mellon may sell a portion of the distributed shares sufficient to pay its fees and expenses in connection
with that distribution.

Rights to Subscribe for Additional Ordinary Shares

If DRDGOLD offers holders of its ordinary shares any rights to subscribe for additional DRDGOLD ordinary shares or any

other rights, The Bank of New York Mellon, after consultation with DRDGOLD, may make these rights available to holders of ADSs
or sell the rights and distribute the proceeds in the same way as it distributes cash. If The Bank of New York Mellon cannot do either
of these things for any reason, it may allow these rights to lapse. In that case, holders of ADSs will receive no value for them.

If The Bank of New York Mellon makes these types of subscription rights available to holders of ADSs, upon instruction

from holders of ADSs, it will exercise the rights and purchase DRDGOLD’s ordinary shares on their behalf. The Bank of New York
Mellon will then deposit the DRDGOLD ordinary shares and deliver ADSs to the holders of ADSs. It will only exercise these rights
if holders of ADSs pay it the exercise price and any related charges.

US securities laws may restrict the sale, deposit, cancellation and transfer of the ADSs issued after exercise of rights. For

example, holders of ADSs may not be able to trade ADSs freely in the United States. In this case, The Bank of New York Mellon
may deliver ADSs which are “restricted securities” within the meaning of Rule 144 which will have the same provisions as the ADSs
described here, except for the changes needed to put the restrictions in place.

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Other Distributions

The Bank of New York Mellon will send to holders of ADSs any other distributions that DRDGOLD makes on deposited

securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, The Bank of New York
Mellon may decide to sell what DRDGOLD distributes, and then distribute the net proceeds in the same way as it distributes cash
distributions, or it may decide to hold what DRDGOLD distributes, in which case the outstanding ADSs will also represent the newly
distributed property. However, The Bank of New York Mellon is not required to distribute any securities (other than ADSs) to ADS
holders unless it receives satisfactory evidence from DRDGOLD that it is legal to make such distribution. The Bank of New York
Mellon may sell a portion of the distributed securities or property sufficient to pay its fees and expenses in connection with that
distribution.

The Bank of New York Mellon is not responsible if it decides that it is unlawful or impractical to make a distribution

available to any ADS holders. DRDGOLD has no obligation to register ADSs, DRDGOLD ordinary shares, rights or other securities
under US Securities Act 1933. DRDGOLD also has no obligation to take any other action to permit the distribution of ADSs,
DRDGOLD ordinary shares, rights or anything else to ADS holders. This means that the holders of ADSs may not receive
distributions DRDGOLD makes on its ordinary shares if it is illegal or impractical for DRDGOLD to make such distribution
available to the holders of ADSs.

Deposit, Withdrawal and Cancellation

The Bank of New York Mellon will deliver ADSs if a holder of DRDGOLD’s ordinary shares or their broker deposits

DRDGOLD’s ordinary shares or evidence of rights to receive ordinary shares with the custodian. Upon payments of its fees and
expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will register
the appropriate number of ADSs in the names as such holder of DRDGOLD ordinary shares requests and will deliver the ADSs at its
Corporate Trust Office to the persons such holder request.

Holders of ADS may turn in their ADSs at The Bank of New York Mellon’s Corporate Trust Office. Upon payment of its

fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will
deliver (1) the underlying ordinary shares to an account designated by the relevant holder of ADSs and (2) any other deposited
securities underlying the ADSs at the office of the Custodian. Alternatively, at the request, risk and expense of ADS holders, The
Bank of New York Mellon will deliver the deposited securities at its Corporate Trust Office.

Interchange Between Certificated ADSs and Uncertificated ADSs

ADS registered holders may surrender their ADRs to The Bank of New York Mellon for the purpose of exchanging such

ADRs for uncertificated ADSs. The Bank of New York Mellon will cancel that ADRs and will send to the ADSs’ registered holder a
statement confirming that the ADS registered holder is the registered holder of uncertificated ADSs. Alternatively, upon receipt by
The Bank of New York Mellon of a proper instruction from a registered holder of uncertificated ADSs requesting the exchange of
uncertificated ADSs for certificated ADSs, The Bank of New York Mellon will execute and deliver the ADS registered holder ADRs
evidencing those ADSs.

Voting Rights

ADS registered holders may instruct The Bank of New York Mellon to vote the number of deposited shares their ADSs

represent. The Bank of New York Mellon will notify ADS holders of shareholders’ meetings and arrange to deliver DRDGOLD’s
voting materials to them if DRDGOLD asks it to. Those materials will describe the matters to be voted upon and explain how ADS
registered holders may instruct The Bank of New York Mellon to vote on their behalf by a specified date. Otherwise, ADS registered
holders will not be able to exercise their right to vote unless they withdraw the shares. However, DRDGOLD cannot assure the
holders of ADSs that they will receive notice of the meeting in time for them to withdraw their ordinary shares.

The Bank of New York Mellon will try, as far as practical, to vote or to have its agents vote the ordinary shares or other

deposited securities as holders of ADSs instruct, but this is subject to South African law, the provisions of DRDGOLD’s
Memorandum and Articles of Association and of the deposited securities and any applicable rules of the JSE. The Bank of New York
Mellon will only vote or attempt to vote as such holders of ADSs instruct.

DRDGOLD cannot assure the holders of ADSs that they will receive the voting materials in time for them to instruct The

Bank of New York Mellon to vote their ordinary shares. In addition, The Bank of New York Mellon and its agents are not
responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that holders of
ADSs may not be able to exercise their right to vote and there may be nothing they can do if their ordinary shares are not voted as
they requested.

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Fees and Expenses

ADS holders must pay: For:
$5.00 (or less) per 100 ADSs

Each issuance of an ADS, including as a result of a distribution
of DRDGOLD ordinary shares or rights or other property; and
Each cancellation of an ADS, including if the Deposit
Agreement terminates

$0.02 (or less) per ADS

Any cash payment

Registration or transfer fees

Transfer and registration of DRDGOLD ordinary shares on the
DRDGOLD share register to or from the name of The Bank of
New York Mellon or its agent when DRDGOLD ordinary
shares are deposited or withdrawn

$0.02 (or less) per ADS per year

Depositary services

Expenses of The Bank of New York Mellon

Conversion of non-US currency to US Dollars;
Cable, telex and facsimile transmission expenses; and
Servicing the deposited securities

Taxes and other governmental charges The Bank of New
York Mellon or any custodian has to pay on any ADS or
DRDGOLD ordinary share underlying an ADS, for example,
stock transfer taxes, stamp duty or withholding taxes

As necessary

A fee equivalent to the fee that would have been payable if
the securities distributed had been ordinary shares deposited
for issuance of ADSs

Distribution of securities distributed to holders of deposited
securities that are distributed by The Bank of New York Mellon
to ADS holders

Payment of Taxes

Holders of ADSs will be responsible for any taxes or other governmental charges payable on their ADSs or on the deposited

securities underlying their ADSs. The Bank of New York Mellon may refuse to transfer their ADSs or allow them to withdraw the
deposited securities underlying their ADSs until such taxes or other charges are paid. It may apply payments owed to holders of
ADSs or sell deposited securities underlying their ADSs to pay any taxes they owe, and they will remain liable for any deficiency. If
it sells deposited securities, it will, if appropriate, reduce the number of ADSs to reflect the sale and pay to holders of ADSs any
proceeds, or send to them any property, remaining after it has paid the taxes.

Reclassification

If DRDGOLD: Then:
Changes the nominal or par value of the ordinary shares;

Reclassifies, splits up or consolidates any of the deposited
securities;

Distributes securities on the ordinary shares that are not
distributed to holders of ADSs; or

Recapitalizes, reorganizes, merges, liquidates, sells all or
substantially all of DRDGOLD’s assets, or takes any similar
action.

The cash, ordinary shares or other securities received by The
Bank of New York Mellon will become deposited securities.
Each ADR will automatically represent its equal share of the
new deposited securities.

The Bank of New York Mellon may, and will if DRDGOLD
asks it to, distribute some or all of the cash, DRDGOLD
ordinary shares or other securities it receives. It may also issue
new ADSs or ask holders of ADSs to surrender their
outstanding ADSs in exchange for new ADSs identifying the
new deposited securities.

Amendment and Termination

DRDGOLD may agree with The Bank of New York Mellon to amend the Deposit Agreement and the ADSs without the

consent of holders for any reason. If the amendment adds or increases fees or charges (except for taxes and other governmental
charges or registration fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses) or if the amendment
prejudices an important right of ADS holders, it will only become effective 30 days after The Bank of New York Mellon notifies
holders of the ADSs of the amendment. At the time an amendment becomes effective, holders of the ADSs are considered, by
continuing to hold their ADSs, to agree to the amendment and to be bound by the agreement as amended.

The Bank of New York Mellon may terminate the Deposit Agreement by mailing notice of termination to ADS holders at

least 30 days prior to the fixed termination date if DRDGOLD asks it to do so. The Bank of New York Mellon may also terminate the
Deposit Agreement if The Bank of New York Mellon has told DRDGOLD that it would like to resign and DRDGOLD has not
appointed a new depositary bank within 90 days. In both cases, The Bank of New York Mellon must notify holders of DRDGOLD
ADSs at least 30 days before termination.

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After termination, The Bank of New York Mellon and its agents will be required to do the following under the Deposit

Agreement: collect distributions on the deposited securities, sell rights, and, upon surrender of ADSs, deliver DRDGOLD ordinary
shares and other deposited securities. Four months after the date of termination or later, The Bank of New York Mellon may sell any
remaining deposited securities by public or private sale and will hold the proceeds of the sale, as well as any other cash it is holding
under the Deposit Agreement, for the pro rata benefit of the ADS holders who have not surrendered their ADSs. It will not invest the
money and will have no liability for interest. DRDGOLD’s only obligation will be with respect to indemnification of, and payment of
certain amounts to, The Bank of New York Mellon.

Limitations on Obligations and Liability to ADS Holders

The Deposit Agreement expressly limits DRDGOLD’s obligation and the obligations of The Bank of New York Mellon,

and limits DRDGOLD’s liability and the liability of The Bank of New York Mellon. DRDGOLD and The Bank of New York
Mellon:

• are only obligated to take the actions specifically set forth in the Deposit Agreement without negligence or bad faith;

• are not liable if either of DRDGOLD or The Bank of New York Mellon is prevented or delayed by law or

circumstances beyond their control from performing their obligations under the Deposit Agreement;

• are not liable for the inability of any holder of ADSs to benefit from any distribution on deposited securities that is not

made available to holders of ADSs under the terms of the Deposit Agreement, or for any special, consequential or
punitive damages for any breach of the terms of the Deposit Agreement;

• have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the Deposit Agreement

on behalf of the holders of the ADSs or on behalf of any other party;

• may rely on advice of or information from legal counsel, accountants, and any person presenting DRDGOLD’s

ordinary shares for deposit, any registered holder or any other person believed by DRDGOLD in good faith to be
competent to give such advice or information; and

• pursuant to the Deposit Agreement, DRDGOLD and The Bank of New York Mellon agree to indemnify each other

under certain circumstances.

Requirements for Depositary Action

Before The Bank of New York Mellon will issue, transfer or register the transfer of an ADS, make a distribution on an ADS,

or allow withdrawal of DRDGOLD ordinary shares, The Bank of New York Mellon may require:

• payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third

parties for the transfer of any ordinary shares or other deposited securities;

• production of satisfactory proof of the identity and genuineness of any signature or other information it deems

necessary; and

• compliance with regulations it may establish, from time to time, consistent with the Deposit Agreement, including

presentation of transfer documents.

The Bank of New York Mellon may refuse to deliver, transfer or register transfers of the ADSs generally when the books of

The New York Mellon or DRDGOLD’s books are closed or at any time either DRDGOLD or The Bank of New York Mellon thinks
it advisable to do so.

Holders of ADSs have the right to cancel their ADSs and withdraw the underlying ordinary shares at any time, except:

• when temporary delays arise because: (1) either DRDGOLD or The Bank of New York Mellon have closed

DRDGOLD’s transfer books; (2) the transfer of the ordinary shares is blocked in connection with voting at a general
meeting of shareholders; or (3) DRDGOLD is paying a dividend on the ordinary shares;

• when ADS holders seeking to withdraw the ordinary shares owe money to pay fees, taxes and similar charges; or

• when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to

ADSs or to the withdrawal of the ordinary shares or other deposited securities.

Pre-release of ADSs

In certain circumstances, subject to the provisions of the Deposit Agreement, The Bank of New York Mellon may deliver

ADSs before the deposit of the underlying ordinary shares. This is called a pre-release of the ADS.

The Bank of New York Mellon may also deliver DRDGOLD ordinary shares upon cancellation of the pre-released ADSs

(even if the ADSs are cancelled before the pre-release transaction has been closed out). A pre-release is closed out as soon as the
underlying DRDGOLD ordinary shares are delivered to The Bank of New York Mellon. The Bank of New York Mellon may receive
ADSs instead of ordinary shares to close out a pre-release.

The Bank of New York Mellon may pre-release ADSs only under the following conditions:

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• before or at the time of the pre-release, the person to whom the pre-release is being made must represent to The Bank

of New York Mellon in writing that it or its customer: (1) owns the ordinary shares or ADSs to be remitted, (2) assigns
all beneficial rights, title and interest in such ADSs or ordinary shares, as the case may be, to The Bank of New York
Mellon in its capacity as the depositary and for the benefit of the ADS holders, and (3) will not take any action with
respect to such ADSs or ordinary shares, as the case may be, that is consistent with the transfer of beneficial ownership
(including, without the consent of The Bank of New York Mellon, disposing of such ADSs or ordinary shares, as the
case may be) other than satisfaction of such pre-release;

• the pre-release must be fully collateralized with cash, US government securities, or other collateral that The Bank of

New York Mellon considers appropriate; and

• The Bank of New York Mellon must be able to close out the pre-release on not more than five business days’ notice.

Each pre-release will be subject to any further indemnities and credit regulations that The Bank of New York Mellon
deems appropriate. The Bank of New York Mellon will normally limit the number of DRDGOLD ordinary shares not
deposited but represented by ADSs outstanding at any time as a result of pre-release so that they do not exceed 30
percent of the ordinary shares deposited, although The Bank of New York Mellon may disregard this limit from time to
time, if it thinks it is appropriate to do so.

Direct Registration System

In the Deposit Agreement, all parties to the Deposit Agreement acknowledge that the DRS and Profile Modification System,

or Profile, will apply to uncertificated ADSs upon acceptance thereof to DRS by The Depository Trust Company, also referred to as
DTC. DRS is the system administered by DTC pursuant to which the depositary may register the ownership of uncertificated ADSs,
which ownership will be evidenced by periodic statements sent by the depositary to the registered holders of uncertificated ADSs.
Profile is a required feature of DRS which allows a DTC participant, acting on behalf of a registered holder of ADSs, to direct the
depositary to register a transfer of those ADSs to DTC or its nominee and to deliver those ADSs to the DTC account of that DTC
participant without receipt by the depositary of prior authorization from the ADS registered holder to register that transfer.

In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties to the

Deposit Agreement understand that The Bank of New York Mellon will not verify, determine or otherwise ascertain that the DTC
participant which is claiming to be acting on behalf of an ADS holder in requesting registration of transfer and delivery described in
the paragraph above has the actual authority to act on behalf of the ADS holder (notwithstanding any requirements under the Uniform
Commercial Code). In the Deposit Agreement, the parties agree that The Bank of New York Mellon’s reliance on and compliance
with instructions received through the DRS/Profile System and in accordance with the Deposit Agreement will not constitute
negligence or bad faith on the part of The Bank of New York Mellon.

Shareholders Communications; Inspection of Register of Holders of ADSs

The Bank of New York Mellon will make available for inspection at its office all communications that it receives from

DRDGOLD as a holder of deposited securities that DRDGOLD makes generally available to holders of deposited securities. The
Bank of New York Mellon sends copies of such communications if required to do so by DRDGOLD. ADS holders have a right to
inspect the register of holders of ADSs, but not for the purpose of contacting those holders about a matter unrelated to DRDGOLD’s
business or the ADSs.

12D.3 DEPOSITARY FEES AND CHARGES

DRDGOLD’s American Depository Shares, or ADSs, each representing ten of DRDGOLD’s ordinary shares, are traded on

the New York Stock Exchange under the symbol “DROOY.” The ADSs are evidenced by American Depository Receipts, or ADRs,
issued by The Bank of New York Mellon, as Depository under the Amended and Restated Deposit Agreement dated as of August 12,
1996, as amended and restated as of October 2, 1996, as further amended and restated as of August 6, 1998, as further amended and
restated July 23, 2007, among DRDGOLD Limited, The Bank of New York Mellon and owners and beneficial owners of ADRs from
time to time. ADR holders may have to pay the following service fees to the Depositary:

Service

Fees (USD)

Issuance of ADSs, including issuances resulting from a distribution of ordinary
shares or rights ............................................................................................................

$5.00 (or less) per 100 ADSs (or

portion thereof)

Cancellation of ADSs for the purpose of withdrawal, including if the Deposit
Agreement terminates .................................................................................................

$5.00 (or less) per 100 ADSs (or

portion thereof)

Distribution of cash dividends or other cash distributions.......................................... 2 cents (or less) per ADS (or portion

thereof)

Distribution of securities distributed to holders of deposited securities which are
distributed by the Depositary to ADS registered holders

$5.00 (or less) per 100 ADSs (or

portion thereof)

These fees are typically paid to the Depositary by the brokers on behalf of their clients receiving the newly-issued ADSs from the Depositary

or delivering the ADSs to the Depositary for cancellation. The brokers in turn charge these transaction fees to their clients.

In practice, the Depositary has not collected these fees. If collected, such fees are offset against the related distribution made to the ADR

holder.

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In addition, ADR holders are responsible for certain fees and expenses incurred by the Depositary on their behalf including

(1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of
transfers of ordinary shares generally on the share register and applicable to transfers of ordinary shares to the name of the Depositary
or its nominee or the Custodian or its nominee on the making of deposits or withdrawals, (3) such cable, telex and facsimile
transmission expenses as are expressly provided in the Deposit Agreement, and (4) such expenses as are incurred by the Depositary
in the conversion of foreign currency to U.S. Dollars.

The Depositary collects its fees for delivery and surrender of ADSs directly from investors depositing or surrendering ADSs

for the purpose of withdrawal or from intermediaries acting for them. The Depositary, collects fees for making distributions to
investors by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees. [The
Depositary may collect its annual fee for depositary services by deductions from cash distributions or by directly billing investors or
by charging the book-entry system accounts of participants acting for them.] The Depositary may generally refuse to provide fee-
attracting services until its fees for those services are paid.

12D.4 DEPOSITARY PAYMENTS FOR FISCAL 2010

For the fiscal year ended June 30, 2010, The Bank of New York Mellon, as Depositary, has agreed to reimburse DRDGOLD

an amount of $121,881.23 mainly for contributions towards the company’s investor relations activities (including investor meetings,
conferences and fees of investor relations service vendors).

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PART II

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

There have been no material defaults in the payment of principal, interest, a sinking or purchase fund installment, or any

other material defaults with respect to any indebtedness of ours.

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS

Not applicable.

ITEM 15. CONTROLS AND PROCEDURES

15A. Disclosure Controls and Procedures

As of June 30, 2010, our management, with the participation of our Chief Executive Officer and Chief Financial Officer

have evaluated the effectiveness of our disclosure controls and procedures (as this term is defined under the rules of the SEC). Our
management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and
procedures were effective as of June 30, 2010.

Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be

disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported, within the time periods specified in the applicable rules and forms and that such information required to
be disclosed by us in the reports we file or submit under the Securities Exchange Act is accumulated and communicated to our
management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions
regarding required disclosures.

There are inherent limitations in the effectiveness of any system of disclosure controls and procedures. These limitations

include the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, any such
system can only provide reasonable assurance of achieving the desired control objectives.

15B. Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting.

Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act
of 1934 as a process designed by, or under the supervision of, our Chief Executive Officer and Chief Financial Officer and
effected by our board, management and other personnel to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with IFRS. Under Section 404 of the
Sarbanes Oxley Act of 2002, management is required to assess our internal controls surrounding the financial reporting process as
at the end of each fiscal year. Based on that assessment, management is to determine whether or not our internal controls over
financial reporting are effective.

Internal control over financial reporting includes those policies and procedures that:

• pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and

dispositions of our assets;

• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements

in accordance with IFRS, and that our receipts and expenditures are being made only in accordance with
authorizations of our management and board; and

• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition

of our assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Instead, it must be noted that even those systems that management deems to be effective can only provide reasonable assurance
with respect to the preparation and presentation of our financial statements. Also, projections of any evaluation of effectiveness to
future periods are subject to the risk that controls may become inadequate because of changes in conditions, or the degree of
compliance with the policies and procedures.

Our management assessed the effectiveness of our internal control over financial reporting as of June 30, 2010. In

making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO) in Internal Control-Integrated Framework. Based on our assessment and those criteria, our
management concluded that as of June 30, 2010 our internal control over financial reporting was effective.

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15C. Independent Auditor’s Attestation Report

The effectiveness of internal control over financial reporting as of June 30, 2010 was audited by KPMG Inc.,

independent registered public accounting firm, as stated in their report on page F-1 of this Form 20-F.

15D. Changes in Internal Control Over Financial Reporting

Changes that have materially affected, or are reasonably likely to materially affect, our internal control over financial

reporting during the period covered by the annual report, needs to be identified and reported as required by paragraph (d) of Rule
13a-15.

During the year ended June 30, 2010, there have not been any changes in our internal control over financial reporting that

have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

Mr. R.P. Hume, Chairman of the Audit Committee, has been determined by our board to be an audit committee financial

expert within the meaning of the Sarbanes-Oxley Act, in accordance with the Rules of the Nasdaq Capital Market and rules
promulgated by the SEC and independent both under the Nasdaq Stock Market Rules and the South African Johannesburg Stock
Exchange Rules. The board is satisfied that the skills, experience and attributes of the members of the audit committee are
sufficient to enable those members to discharge the responsibilities of the audit committee.

ITEM 16B. CODE OF ETHICS

We have adopted a Code of Ethics and Conduct that applies to all senior executives including our Non-Executive

Chairman, the Chief Executive Officer, Chief Financial Officer and the Group Financial Manager and Financial Manager at each
mining operation as well as all other employees. The Code of Ethics and Conduct can be accessed on the Company’s website at
www.drdgold.com.

118

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

KPMG Inc. has served as our independent public accountant for the fiscal years ending June 30, 2010, 2009 and 2008, for

which audited financial statements appear in this Annual Report. The Annual General Meeting elects the auditors annually.

The following table presents the aggregate fees for professional audit services and other services rendered by KPMG Inc. to

us in fiscal 2010 and 2009:

Auditors' remuneration

Year ended June

30,

2010 2009

R’000 R’000

Audit fees............................................................................................................................................................

9,859 10,362

Audit-related fees................................................................................................................................................

- -

Tax fees ......................................................................................................................................................................

- -

All other fees ..............................................................................................................................................................

- 158

9,859 10,520

Audit Fees

Audit fees billed for the annual audit services engagement, which are those services that the external auditor reasonably can

provide, include the company audit; statutory audits; comfort letters and consents; attest services; and assistance with and review of
documents filed with the SEC.

Audit-Related Fees

For fiscal 2010 and fiscal 2009, no audit-related fees were incurred.

Tax Fees

For fiscal 2010 and fiscal 2009, no fees have been billed for tax compliance, tax advice or tax planning services.

All Other Fees

All other fees consist of all fees billed which are not included under audit fees, audit related fees or tax fees. In fiscal

2009, these amounts related to fees billed for reviews of shareholders’ circulars issued. There were no such fees billed for in fiscal
2010.

The Audit Committee appoints, re-appoints and removes the external auditors as well as determines the remuneration and

terms of engagement of the external auditors. The committee pre-approves, and has pre-approved, all non-audit services provided
by the external auditors. The Audit Committee considered all of the fees mentioned above and determined that such fees are
compatible with maintaining KPMG Inc.’s independence.

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

Not applicable.

ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

Not applicable.

ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT

Not applicable.

119

ITEM 16G. CORPORATE GOVERNANCE

As a foreign private issuer with shares listed on the Nasdaq Capital Market, we are subject to corporate governance

requirements imposed by Nasdaq. Under Nasdaq Stock Market Rule 5615(a)(3), a foreign private issuer such as us may follow its
home country corporate governance practices in lieu of certain of the Nasdaq Stock Market Rules corporate governance
requirements. The following paragraphs summarize the significant differences between our corporate governance practices and those
followed by U.S. companies listed on the Nasdaq Capital market:

Independence of audit committee members.

Nasdaq Stock Market Rule 5605(c)(2) requires a Nasdaq listed company to have an audit committee composed of at least

three independent members. A foreign private issuer may be exempted from the requirement that all members of the audit committee
qualify as independent under Nasdaq Stock Market Rules provided, among other requirements, that the members of the audit
committee are independent under Exchange Act Rule 10A-3. As at September 30, 2010 all of our audit committee members are
independent both under the Nasdaq Stock Market Rules and the South African Johannesburg Stock Exchange Rules.

Exemption from the shareholder approval requirements.

Between August and December 2003, the Company entered into a series of discounted issuances with several different

investors resulting in the issuance of ordinary shares, and securities convertible into ordinary shares, totaling 46,843,902, or 25.43%
of the total shares outstanding on a pre-issuance basis. Included within those issuances, on December 12, 2003, the Company entered
into an agreement granting Investec the option to acquire 10.2 million ordinary shares. The Company requested an exemption from
Nasdaq Marketplace Rule 5635(a)(1)(B) in reliance upon Rule 5615(a)(3). Rule 5635(a)(1)(B) provided that shareholder approval is
required upon issuing 20% or more of the common stock outstanding before the issuance. Nasdaq granted this exemption on the basis
that the shareholder approval requirements of Rule 5635(a)(1)(B) were contrary to generally accepted business practices of
companies located in South Africa.

The South African Companies Act of 1973 (as amended) requires issuers to obtain shareholder approval before the issuance

of any shares or rights to shares, which approval can be provided by specific authority or a general authority granted by means of a
resolution passed by shareholders in a general meeting. JSE Listing Requirements require 75% shareholder approval for any issuance
of shares for cash. JSE Listing Requirements do, however, permit an issuer to issue shares for cash under a general authority granted
by its shareholders, but not in excess of 15% of the company’s total issued share capital during any financial year under that
authority, or the general authority. In terms of the specific issuances for which the Company received the exemption from Nasdaq
described above, there was no JSE requirement that would mandate specific shareholder approval for these transactions. The JSE
Listing Requirements accept a general authority by our shareholders under certain circumstances. The shareholders had approved a
general authority which covered the relevant transactions by resolutions passed at the Company's annual general meetings in
November 2003. In addition, included in the shares issued for cash were approximately 24.4 million shares to the value of R435.5
million ($63.1 million) which were used for the acquisition of the Porgera Joint Venture. Approval was obtained from the JSE to
deem these shares to be a vendor placing.

Exemption from the quorum requirements.

Nasdaq’s Marketplace Rules 5620 (c) states that the minimum quorum for any meeting of holders of the company’s

common stock must be no less than 33 1/3 % of the issuer’s outstanding shares. Consistent with the practice of companies
incorporated in South Africa, our articles of association only require a quorum of three members. As a result, and in connection with
the listing of our ADSs on the Nasdaq National Market in July 1996, we requested, and Nasdaq granted us in October 1996, an
exemption from compliance with the Rule 5620 (c) quorum requirement.

120

PART III

ITEM 17. FINANCIAL STATEMENTS

Not applicable.

ITEM 18. FINANCIAL STATEMENTS

The following financial statements and related auditor’s reports are filed as part of this Annual Report.

Page

Report of the independent registered public accounting firm ............................................................................................. F-1
Consolidated statement of comprehensive income for the years ended June 30, 2010, 2009 and 2008 ...........................

F-2 to F-3

Consolidated statement of financial position at June 30, 2010 and 2009...........................................................................                                F-4
Consolidated statement of changes in equity for the years ended June 30, 2010, 2009 and 2008.....................................                             F-5
Consolidated statement of cash flows for the years ended June 30, 2010, 2009 and 2008................................................                            F-6
Notes to the annual financial statements..............................................................................................................................

F-7 to F-71

F-1

Report of the Independent Registered Public Accounting Firm

The Board of Directors and Shareholders of DRDGOLD Limited.

We have audited the accompanying consolidated statement of financial position of DRDGOLD Limited, its subsidiaries and
associates as of June 30, 2010 and 2009, and the related consolidated statement of comprehensive income, the consolidated
statement of changes in equity, and the consolidated statement of cash flows for each of the years in the three-year period ended
June 30, 2010. We also have audited DRDGOLD Limited’s internal control over financial reporting as of June 30, 2010, based on
criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO). DRDGOLD Limited’s management is responsible for these consolidated financial statements,
for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control
over financial reporting, included in the accompanying management’s annual report on internal control over financial reporting.
Our responsibility is to express an opinion on these consolidated financial statements and an opinion on DRDGOLD Limited’s
internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements
are free of material misstatement and whether effective internal control over financial reporting was maintained in all material
respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting
included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also
included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a
reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International
Financial Reporting Standards. A company’s internal control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of
the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with International Financial Reporting Standards, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position
of DRDGOLD Limited and subsidiaries as of June 30, 2010 and 2009, and the results of their operations and cash flows for each
of the years in the three-year period ended June 30, 2010, in conformity with International Financial Reporting Standards as
issued by the International Accounting Standards Board. Also in our opinion, DRDGOLD Limited maintained, in all material
respects, effective internal control over financial reporting as of June 30, 2010, based on criteria established in Internal Control –
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

/s/ KPMG Inc.
KPMG Inc.
Registered Accountants and Auditors
Johannesburg, Republic of South Africa
October 29, 2010

F-2

DRDGOLD Limited
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended June 30, 2010

Continuing operations

Discontinued operations

Total operations

2010

2009

2008

2010

2009

2008

2010

2009

2008

Note R'000

R'000

R’000

R'000

R’000

R'000

Revenue 2

1,990,522 1,910,738 1,843,912

89,235

1,990,522 1,910,738

1,933,147

Cost of sales

(1,891,787) (1,834,025) (1,598,364)

- (139,369)

(1,891,787) (1,834,025) (1,737,733)

Operating costs²

(1,798,866) (1,687,359) (1,503,015)

- (124,437)

(1,798,866 )(1,687,359) (1,627,452)

Depreciation 10

(190,769)

(99,217)

(69,077)

(854)

(190,769)

(99,217)

(69,931)

Retrenchment costs

(20,127)

(34,922)

(11,344)

(20,127)

(34,922)

(11,344)

Movement in provision for
environmental
rehabilitation 19

88,034

(19,545)

(30,171)

(4,019)

88,034

(19,545)

(34,190)

Movement in gold
inventory

29,941

7,018

15,243

- (10,059)

29,941

7,018

5,184

Gross profit/(loss) from
operating activities

98,735

76,713

245,548

- (50,134)

98,735

76,713

195,414

Loss on derivative
financial instruments

(433)

Impairments 3

(6,224)

(75,138)

(63,915)

- (46,718)

(6,224)

(75,138)

(110,633)

Administration expenses
and general costs

(57,026)

(83,583)

(79,439)

- (20,084)

(57,026)

(83,583)

(99,523)

Results from operating
activities

35,485

(82,008)

102,194

- (117,369)

35,485

(82,008)

(15,175)

Finance income

200,273

205,991

91,975

3,040

200,273

205,991

95,015

Finance expenses

(24,132)

(41,743) (108,068)

- (59,625)

(24,132)

(41,743)

(167,693)

Profit/(loss) before
taxation

211,626

82,240

86,101

- (173,954)

211,626

82,240

(87,853)

Income tax

(8,263)

28,444

68,303

75,408

(8,263)

28,444

143,711

Profit/(loss) after
taxation

203,363

110,684

154,404

- (98,546)

203,363

110,684

55,858

Profit on disposal of
discontinued operations

- 1,169,210

1,169,210

Profit for the year

203,363

110,684

154,404

- 1,070,664

203,363

110,684

1,225,068

Attributable to:

Equity owners of the
parent

207,815

129,124

128,558

867,483

207,815

129,124

996,041

Non-controlling interest

(4,452)

(18,440)

25,846

203,181

(4,452)

(18,440)

229,027

Profit for the year

203,363

110,684

154,404

- 1,070,664

203,363

110,684

1,225,068

The discontinued operations relate to the Porgera Joint Venture (disposed on August 17, 2007), Emperor (disposed on October 22, 2007) and NetGold (disposed on March 13, 2008.)
² Operating costs equates to cash costs of production.

F-3

DRDGOLD Limited
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (continued)
for the year ended June 30, 2010

Continuing operations Discontinued operations 1

Total operations

2010

2009

2008

2010

2009

2008

2010

2009

2008

Note

R'000

Other comprehensive
income, net of tax

Net foreign exchange translation
reserve

(156,534)

(606)

83,571

- (184,079)

(156,534)

(606)

(100,508)

Transfer of reserve on
disposal of foreign
subsidiaries 12

(156,534)

- (184,079)

(156,534)

(184,079)

Foreign exchange (loss)/gain on
translation

(606)

83,571

(606)

83,571

Deferred taxation thereon

Net fair value adjustment on
available-for-sale investment 11

5,154

(1,133)

1,744

5,154

(1,133)

1,744

Fair value adjustment on
available-for-sale investment

5,154

(1,133)

1,744

5,154

(1,133)

1,744

Deferred taxation thereon

Net effect of acquisition of
subsidiary

193,084

Revaluation of fixed assets
through acquisition of subsidiary

237,853

Non-controlling interest forming
part of the acquisition of
subsidiary

12,892

Deferred taxation thereon

(57,661)

Total comprehensive income for
the year

51,983

302,029

239,719

886,585

51,983

302,029

1,126,304

Equity owners of the parent

55,159

260,727

199,902

867,483

55,159

260,727

1,067,385

Non-controlling interest

(3,176)

41,302

39,817

19,102

(3,176)

41,302

58,919

Total comprehensive income for
the year

51,983

302,029

239,719

886,585

51,983

302,029

1,126,304

Earnings per share attributable
to equity owners of the parent

Basic and diluted earnings
per share (cents)

231

265

The accompanying notes are an integral part of these consolidated financial statements.

The discontinued operations relate to the Porgera Joint Venture (disposed on August 17, 2007), Emperor (disposed on October 22, 2007) and NetGold

(disposed on March 30, 2008.)

F-4

DRDGOLD Limited

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at June 30, 2010

2010 2009

Note R’000

R’000

ASSETS

Non-current assets

2,178,190

2,075,252

Property, plant and equipment

1,857,646

1,733,219

Non-current investments and other assets

174,223

172,680

Non-current inventories

5,579

4,238

Deferred tax asset

140,742

165,115

Current assets

402,102

550,520

Inventories

132,636

93,935

Trade and other receivables

64,521

87,960

Current tax asset

1,793

Cash and cash equivalents

188,152

353,555

Assets classified as held for sale

15,000

15,000

Total assets

2,580,292

2,625,772

EQUITY AND LIABILITIES

Equity

1,649,961

1,583,979

Equity of the owners of the parent

1,550,631

1,481,473

Non-controlling interest

99,330

102,506

Non-current liabilities

661,088

715,799

Provision for environmental rehabilitation

420,604

412,454

Post-retirement and other employee benefits

13,365

43,639

Deferred tax liability

168,142

194,560

Loans and borrowings

58,977

65,146

Current liabilities

269,243

325,994

Trade and other payables

268,833

322,138

Loans and borrowings

2,101

Current tax liability

410

931

Bank overdraft

824

Total equity and liabilities

2,580,292

2,625,772

The accompanying notes are an integral part of these consolidated financial statements.

F-5

DRDGOLD Limited
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
at June 30, 2010

Number

ordinary

shares

Number of

cumulative

preference

shares

Share capital

and share

premium

R’000

Cumulative

preference

share capital

R’000

Revaluation and

other reserves

R’000

Accumulated

loss

R’000

Equity of the

owners of the

parent

R’000

Non-controlling

interest

R’000

Total equity

R’000

Balance at June 30, 2007

370,341,981

5,000,000

4,069,096

500

256,488

(4,184,913)

141,171

2,285

143,456

Issued shares for cash

5,800,000

27,976

27,976

Staff options exercised

429,607

2,353

2,353

Share issue expenses

(1,219)

(1,219)

Share-based payments

6,591

6,591

Total comprehensive income for the year

(55,145)

1,122,530

1,067,385

58,919

1,126,304

Fair value adjustment on available-for-sale investment

1,744

1,744

Transfer of reserve on disposal

of subsidiaries

(126,489)

126,489

(184,079)

(184,079)

Foreign exchange gain on translation

69,600

69,600

13,971

83,571

Profit for the year

996,041

996,041

229,027

1,225,068

Balance at June 30, 2008

376,571,588

5,000,000

4,098,206

500

207,934

(3,062,383)

1,244,257

61,204

1,305,461

Staff options exercised

1,429,715

6,707

6,707

Share issue expenses

(433)

(433)

Share-based payments

7,873

7,873

Dividend on ordinary share capital

(37,658)

(37,658)

Total comprehensive income for the year

131,603

129,124

260,727

41,302

302,029

Fair value adjustment on available-for-sale investment

(1,133)

(1,133)

Foreign exchange loss on translation

(606)

(606)

Non-controlling interest forming part of the acquisition
of subsidiary

12,892

12,892

Revaluation of fixed assets through acquisition

of subsidiary

133,342

133,342

46,850

180,192

Profit for the year

129,124

129,124

(18,440)

110,684

Balance at June 30, 2009

378,001,303

5,000,000

4,104,480

500

347,410

(2,970,917)

1,481,473

102,506

1,583,979

Issued shares for cash

6,620,413

29,877

Staff options exercised

262,663

1,004

Share issue expenses

(2,043)

Share-based payments

4,115

Dividend on ordinary share capital

(18,954)

Total comprehensive income for the year

(152,656)

207,815

55,159

(3,176)

51,983

Fair value adjustment on available-for-sale investment

3,878

1,276

5,154

Foreign exchange gain on disposal of foreign

subsidiaries recognized in profit or loss (refer note 12)

(156,534)

Profit for the year

207,815

(4,452)

203,363

Balance at June 30, 2010

384,884,379

5,000,000

4,133,318

500

198,869

(2,782,056)

1,550,631

99,330

1,649,961

Revaluation and other reserves comprise share-based payment reserves and asset revaluation reserves. The foreign exchange differences arising on translation of foreign subsidiaries have been transferred to profit or loss during the

current year.

The accompanying notes are an integral part of these consolidated financial statements.

F-6

DRDGOLD Limited
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended June 30, 2010

2010

2009

2008

Note

R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from sales of precious metals

1,990,522

1,910,738

1,933,147

Cash paid to suppliers and employees

(1,942,786)

(1,745,805)

(1,728,030)

Cash generated by operations

47,736

164,933

205,117

Finance income

23,436

88,964

46,859

Dividends received

4,829

4,074

Finance expenses

(4,862)

(3,605)

(35,528)

Income tax paid

(12,698)

(46,889)

(37,902)

Net cash inflow from operating activities

53,612

208,232

182,620

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of investments

(5,674)

(6,049)

(26,539)

Proceeds on sale of investments

47,467

19,225

Additions to property, plant and equipment

(194,018)

(345,132)

(286,664)

Proceeds on disposal of property, plant and equipment

13,873

10,816

10,054

Cash flow on acquisition/disposal of subsidiaries, net of cash

(40,396)

(277,821)

(121,761)

Cash flow on disposal/acquisition of joint ventures, net of cash

(166)

(20,000)

1,936,726

Cash flow on acquisition of associate

(2,700)

Net cash (outflow)/inflow from investing activities

(226,381)

(593,419)

1,531,041

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from the issue of shares

30,881

6,707

30,329

Advances of loans and borrowings

24,864

Repayments of loans and borrowings

(2,101)

(54,438)

(819,916)

Share issue expenses

(2,043)

(433)

(1,219)

Dividends paid

(18,954)

(37,658)

Capital distribution to non-controlling interest

(74,080)

Net cash inflow/(outflow) from financing activities

7,783

(85,822)

(840,022)

NET (DECREASE)/ INCREASE IN

CASH AND CASH EQUIVALENTS

(164,986)

(471,009)

873,639

Cash and cash equivalents at beginning of the year

352,731

845,587

(12,429)

Foreign exchange movements

407

(21,847)

(15,623)

Cash and cash equivalents at the end of the year

188,152

352,731

845,587

The accompanying notes are an integral part of these consolidated financial statements.

F-7

NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended June 30, 2010

1. ACCOUNTING POLICIES

DRDGOLD Limited (‘the company’) is a company domiciled in South Africa. The consolidated financial statements of the
company for the year ended June 30, 2010 comprise the company and its subsidiaries, together referred to as the group and its
interests in associates and jointly controlled entities.

STATEMENT OF COMPLIANCE

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)
and its interpretations adopted by the International Accounting Standards Board (IASB).

The financial statements were approved by the Board of Directors on September 16, 2010.

BASIS OF MEASUREMENT

The financial statements are prepared on the historical cost basis, unless otherwise stated.

FUNCTIONAL AND PRESENTATION CURRENCY

The consolidated financial statements are presented in South African Rands, which is the company's functional currency. All
financial information presented in South African Rands has been rounded to the nearest thousand.

USE OF ESTIMATES AND JUDGMENTS

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and
assumptions that affect the reporting amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
reporting date and the reported amounts of revenues and expenses during the reporting period. The determination of estimates
requires the exercise of judgment based on various assumptions and other factors such as historical experience, current and
expected economic conditions, and in some cases actuarial techniques. Actual results could differ from those estimates.

The estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable in the circumstances. Revisions to accounting estimates
are recognized in the period in which the estimates are revised if the revision affects only that period, or in the period of the
revision and future periods, if the revision affects both current and future periods.

The judgments that management has applied in the application of accounting policies, and the estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below.

(a) Recoverable amounts of mining assets and depreciation

The recoverable amount of mining assets is generally determined utilizing discounted future cash flows. Management
also considers such factors as the market capitalization of the group, the quality of the individual ore body and country
risk in determining the recoverable amount. During the year under review, the group calculated recoverable amounts
based on updated life-of-mine business plans, a gold price of R311,636 per kilogram (2009: R270,000 per kilogram) in
year one escalating at 5.8% (2009: 7.42%) per annum, and a discount rate of 13.7% (2009: 12.5%). At a 10% lower gold
price received of R280,472 per kilogram, an impairment of R731.6 million would be raised and at a 0.6 percentage point
(4%) increase in the discount rate to 14.3%, the group would start impairment of the mining assets (refer note 10).

The calculation of unit-of-production rate of depreciation could be affected to the extent that actual production in the
future is different from current forecast production based on proved and probable Ore Reserves. This would generally
arise when there are significant changes in any of the factors or assumption used in estimating Ore Reserves. Factors
could include:

• changes in proved and probable Ore Reserves

• the grade of Ore Reserves may vary significantly from time to time;

• differences between actual commodity prices and commodity price assumptions;

• unforeseen operational issues at mine sites;

• changes in capital, operating, mining processing and reclamation costs, discount rates and foreign exchange rates;

and

• changes in Ore Reserves could similarly affect the useful lives of assets depreciated on straight-line basis, where

those lives are limited to the life of the mine.

F-8

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

USE OF ESTIMATES AND JUDGMENTS (continued)

(b) Valuation of financial instruments

If the value of the financial instrument cannot be obtained from an active market, the group has established fair value by
using valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that
are substantially the same, discounted cash flow analysis and option pricing models, refined to reflect the issuer’s
specific circumstances.

(c) Estimate of exposure and liabilities with regard to rehabilitation costs

Estimated provisions for environmental rehabilitation, comprising pollution control rehabilitation and mine closure, are
based on the group’s environmental management plans in compliance with current technological, environmental and
regulatory requirements. An average discount rate of 8.95%, average inflation rate of 5.76% and expected life of mines
according to the life-of-mine plans were utilized in the calculation of the estimated net present value of the rehabilitation
liability (2009: discount rate of 8.25% and inflation rate of 5.7%) (refer note 19).

(d) Estimate of post retirement medical liability

An actuarial valuation is carried out every three years. Assumptions used to determine the liability include a discount
rate, health cost inflation rate, real discount rate, retirement age, spouse age gap, continuation at retirement and
proportion married at retirement (refer note 20).

(e) Estimate of taxation

The group is subject to income tax in numerous jurisdictions. Significant judgment is required in determining the
provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is
uncertain during the ordinary course of business. The group recognizes liabilities for anticipated tax issues based on
estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will have an impact on the income tax and deferred tax provisions
in the period in which such determination is made.

(f) Fair value of share-based compensation

The fair value of options granted is determined using the Black-Scholes option pricing model. The significant inputs into
the model are: vesting period and conditions, risk-free interest rate, volatility and price of grant. (Refer to note 20 for
detail on the share option scheme.)

(g) Gold in process

Gold in process in certain plants is estimated based on the best estimate of the metallurgist of the gold content and grade
thereof.

(h) Assessment of contingencies

Contingencies will realize only when one or more future events occur or fail to occur. The exercise of significant
judgment and estimates of the outcome of future events are required during the assessment of the impact of such
contingencies.

(i) Ore Reserves estimate

At the end of each financial year, the estimate of proved and probable Ore Reserves is updated. Depreciation of mining
assets is prospectively adjusted, based on these changes.

Ore Reserves are estimates of the amount of product that can be economically and legally extracted from the group’s
properties. In order to calculate Ore Reserves, estimates and assumptions are required about a range of geological,
technical and economic factors, including but not limited to quantities, grades, production techniques, recovery rates,
production costs, transport costs, commodity demand, commodity prices and exchange rates.

F-9

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

USE OF ESTIMATES AND JUDGMENTS (continued)

(i) Ore Reserves estimate (continued)

Estimating the quantity and/or grade of Ore Reserves requires the size, shape and depth of ore bodies to be determined
by analyzing geological data such as the logging and assaying of drill samples. This process may require complex and
difficult geological judgments and calculations to interpret the data.

Because the economic assumptions used to estimate Ore Reserves change from period to period and because additional
geological data is generated during the course of operations, estimates of Ore Reserves may change from period to
period. Changes in reported Ore Reserves may affect the group’s financial results and financial position in a number of
ways and including the following:

• Asset carrying values may be affected due to changes in estimated future cash flows;

• Depreciation, depletion and amortization charges in the profit or loss may change where such charges are

determined by the units-of-production method, or where the useful economic lives of assets change;

• Decommissioning, site restoration and environmental provisions may change where changes in estimated Ore

Reserves affect expectations about the timing or cost of these activities; and

• The carrying value of deferred tax assets may change due to changes in estimates of the likely recovery of the tax

benefits.

These adjustments are made prospectively where relevant.

(j) Estimate of deferred taxation

The amount recognized as a deferred tax asset is generally determined utilizing discounted future cash flows similar to
estimates used in the calculation of depreciation and rehabilitation liabilities. Management considers all factors that
could possibly affect the probability that future taxable profit will be available against which unused tax credits can be
utilized. These factors include profitability of the operations and a higher gold price. The amount recognized as a
deferred tax asset is sensitive to the current gold spot price. The amount recognized at June 30, 2010 is based on a future
gold price received of R311,636 per kilogram (2009: R270,000 per kilogram) in year one, escalating at an average of
5.8% (2009: 7.42%) per year. At a 10% lower gold price received of R280,472 per kilogram (2009: R243,000 per
kilogram), the deferred tax asset will reduce by Rnil (2009: R140.8 million). Ergo is still a new project; however its
performance for the current year has improved from the prior year and is expected to be sustainable in the foreseeable
future. Should Ergo’s performance not be sustainable, it could impact the relating deferred tax asset negatively.

The group provides for deferred tax using the maximum tax rates which could apply to temporary differences. However
if the effective tax rates, resulting from the income tax formula for mining income, were used based on forecasts per
individual entity, the net deferred tax liability would be R20.8 million (2009: R35.4 million).

If the effective tax rates were used based on forecasts per individual entity the deferred tax movement in profit or loss
would amount to R14.6 million (2009: R85.7 million) expense.

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently by all entities in the group to all period presented, except as
explained below under ‘New standards, interpretations and amendments to standards and interpretations adopted.’

New standards, interpretations and amendments to standards and interpretations adopted

The group adopted the following new standards, amendments to standards and interpretations which are applicable to the group:

IFRS 2 amendment – Share-based Payments: Vesting Conditions and Cancellations

IAS 23 – Borrowing Costs

IFRS 7 amendment – Improving Disclosure about Financial Instruments

IFRS 3 – Business Combinations

IAS 27 amendment – Consolidated and Separate Financial Statements

IFRS 5 amendment – Non-current Assets Held for Sale and Discontinued Operations

IFRIC 17 – Distribution of Non-cash Assets to Owners

F-10

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

IFRS 2 amendment – Share-based Payments: Vesting Conditions and Cancellations

The group adopted IFRS 2 amendment – Share-based Payments: Vesting Conditions and Cancellations as of July 1, 2009. The
amendment to the standard requires that in determining the grant date fair value of the equity instrument all non-vesting
conditions should be taken into account. Vesting conditions are limited to service and performance conditions. All other
conditions are considered non-vesting. Where the company or counter party can choose to meet non-vesting condition, failure to
meet such conditions is treated as a cancellation. These are clarifying amendments which did not have any effect on the financial
position or performance of the group.

IAS 23 – Borrowing Costs

The group adopted IAS 23 – Borrowing Costs as of July 1, 2009. The amendment to the standard requires that borrowing costs
relating to qualifying assets to be capitalized. The amendment did not have any effect on the financial position or performance of
the group, as the policy in the past was also to capitalize borrowing costs.

IFRS 7 amendment – Improving Disclosure about Financial Instruments

The group adopted IFRS 7 amendment – Improving Disclosure about Financial Instruments as of July 1, 2009. These
amendments enhanced disclosures about fair value measurements and liquidity risk. These have been made to address application
issues and provide useful information to users. These amendments did not have any effect on the financial position or
performance of the group, however, additional disclosure have been made in the financial instruments in note 24 in accordance
with the additional disclosure requirements.

IFRS 3 – Business Combinations

The group adopted IFRS 3 – Business Combinations as of July 1, 2009. The revised standard supersedes the previous standard
and provides guidance for applying the acquisition method, for example recognition of the non-controlling interest, and is to be
applied prospectively. Due to the changes only being required prospectively, these amendments did not have any effect on the
financial position or performance of the group relating to comparative numbers.

IAS 27 amendment – Consolidated and Separate Financial Statements

The group adopted IAS 27 amendment – Consolidated and Separate Financial Statements as of July 1, 2009. These amendments
require losses to be allocated to non-controlling interests. It introduces the term non-controlling interest and states that changes in
a parent’s interest in a subsidiary which doesn’t lead to the loss of control is recorded as a transaction with equity owners in their
capacity as equity owners and no profit or loss is recognized. When control is lost the gain or loss is recognized in profit or loss
and any remaining interest is recorded at the fair value on the transaction date. The standard requires retrospective application of
the amendments with certain exceptions. These amendments did not have any effect on the financial position or performance of
the group due to the group qualifying for the exceptions for transactions attributable to the period before 1 July 2009. The
exemptions being for allocation of losses to non-controlling interest resulting in a deficit, accounting for changes in ownership
interests after control has been obtained and for restating the carrying amounts of subsidiaries after loss of control. Therefore,
transactions included in the ambit of the standard, entered into from 1 July 2009 onwards, have been recognized in-line with the
new requirements.

IFRS 5 amendment – Non-current Assets Held for Sale and Discontinued Operations

The group adopted IFRS 5 amendment – Non-current Assets Held for Sale and Discontinued Operations as of July 1, 2009. The
amendment requires an entity which is committed to a sale plan involving loss of control of a subsidiary to classify all the assets
and liabilities of that subsidiary as held for sale when the criteria for classification as held for sale are met, regardless of whether
the entity will retain a non-controlling interest in its former subsidiary after the sale. These amendments did not have any effect
on the financial position or performance of the group.

IFRIC 17 – Distribution of Non-cash Assets to Owners

The group adopted IFRIC 17 – Distribution of Non-cash Assets to Owners as of July 1, 2009. The interpretation addresses the
following issues when a non-current asset is distributed to shareholders: the timing and the recognition of the liability, the value
of the liability and how any difference between the carrying amount of the non-current asset distributed and the value of the
distribution should be treated. The interpretation did not have any effect on the financial position or performance of the group.

F-11

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

New accounting standards and IFRIC interpretations

Certain new accounting standards and International Financial Reporting Interpretations Committee (IFRIC) interpretations have
been published that have various effective dates. These new standards and interpretations have not been early adopted by the
group and a reliable estimate of the impact of the adoption thereof for the group cannot yet be determined for all of them, as
management is still in the process of determining the impact of these standards and interpretations on future financial statements.

At the date of authorization of these financial statements, the following standards and interpretations were in issue but not yet
effective such that they could have bearing on the group and the group expects to adopt the standards and interpretations when
effective:

Standards / interpretation

Effective date

Various

Improvements to IFRSs 2009 (excluding IFRS 2 Share-based Payment;
IAS 38 Intangible Assets - Additional consequential amendments arising
from revised IFRS 3 and measuring the fair value of an intangible asset
acquired in a business combination; IFRIC 9 Reassessment of Embedded
Derivatives; IFRIC 16 Hedges of a Net Investment in a Foreign Operation)

Annual periods commencing on

or after January 1, 2010

(1)

IFRS 2
amendment

Group Cash-settled Share-based Payment Transactions (withdrawal of

IFRIC 8 and IFRIC 1)

Annual periods commencing on

or after January 1, 2010

(1)

IAS 32
amendment

IAS 32 Financial Instruments: Presentation: Classification of Rights Issues

Annual periods commencing on

or after February 1, 2010

(1)

IFRIC 19

Extinguishing Financial Liabilities with Equity Instruments

Annual periods commencing on

or after July 1, 2010

(1)

Revised IAS 24

Related Party Disclosures

Annual periods commencing on

or after January 1, 2011

(1)

IFRIC 14
amendment

Prepayments of a Minimum Funding Requirement

Annual periods commencing on

or after January 1, 2011

(1)

IFRS 9

Financial Instruments

Annual periods commencing on

or after January 1, 2013

(1)

(1) The impact is not known or estimable.

Each of these standards and interpretations is described briefly below:

IFRS 2 amendment – Group Cash-settled Share-based Payment Transactions

IFRIC 8 and IFRIC 11 are incorporated into IFRS 2 and withdrawn. The amendments modify the definitions of a share-based
payment arrangement, share-based payment transaction, equity-settled share-based payment transaction and cash-settled share-
based payment transaction.

An entity receiving goods or services (“receiving entity”) in either an equity-settled or a cash-settled share-based payment
transaction is required to account for the transaction in its separate or individual financial statements. This principle even applies
if another group entity or shareholder settles the transaction (“settling entity”) and the receiving entity has no obligation to settle
the payment. Previously IFRS 2 had explicit requirements to attribute transactions settled by a parent or shareholder only if those
transactions were equity-settled.

F-12

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

New accounting standards and IFRIC interpretations (continued)

IAS 32 - Financial Instruments: Presentation: Classification of Rights Issues

IAS 32 states that a derivative instrument relating to an entity’s own equity instruments is classified as equity only if it results in
the exchange of a fixed number of equity instruments for a fixed amount of cash or another financial asset. In 2005, the IFRIC
concluded that if an equity conversion option in a convertible bond was denominated in a foreign currency, the amount of cash
receivable in the functional currency on conversion would be variable. Consequently, the conversion option was a derivative
liability that should be measured at its fair value with changes in fair value included in profit or loss.

The amendment requires that rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a
fixed amount of any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all of its existing
owners of the same class of its own non-derivative equity instruments.

IFRIC 19 - Extinguishing Financial Liabilities with Equity Instruments

The interpretation applies to the accounting by the debtor in a debt for equity swap transaction, except for:

• Transactions where the creditor is a shareholder and acting in that capacity;

• Transactions where the two entities are under common control before and after the transaction and the substance of the

transaction includes an equity contribution / distribution; and

• The debt for equity swap is in accordance with the original terms of the financial liability.

IAS 39, paragraph 41, requires that an entity recognize in profit or loss the difference between the carrying amount of the
financial liability extinguished and the consideration paid. The interpretation clarifies that equity instruments issued to a creditor
to extinguish all or part of a financial liability in a debt for equity swap would be “consideration paid” in accordance with IAS 39
paragraph 41.

Revised IAS 24 – Related party disclosures

The changes introduced in the revised IAS 24, include amendments to the definition of a related party and related party disclosure
requirements for government-related entities.

IFRIC 14 – Prepayments of a Minimum Funding Requirement

The amendment is intended to address the accounting treatment for prepayments made when there is also a minimum funding
requirement (MFR). Currently IFRIC 14 states that a surplus in a plan, is not regarded as an economic benefit available as a
reduction in future contribution if the future minimum funding contribution required, in respect of future accrual of benefits,
exceeds the future service costs. Therefore, under the current IFRIC 14, a prepayment would be recognized as an expense.

Under the amended IFRIC 14 such a prepayment would be recognized as an asset, on the basis that the entity has a future
economic benefit from the prepayment in the form of reduced cash outflows in future years in which MFR contributions would be
required.

IFRS 9 – Financial Instruments

IFRS 9 deals with classification and measurement of financial assets and will replace the relevant sections of IAS 39.

Classification

The standard requires that financial assets be classified as either measured at:

• amortized cost; or

• fair value

A financial asset is measured at amortized cost if:

• the objective of the business model is to hold assets in order to collect contractual cash flows, and

• the contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and interest on the

principal outstanding.

F-13

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

New accounting standards and IFRIC interpretations (continued)

IFRS 9 – Financial Instruments (continued)

All other financial assets are measured at fair value, with fair value changes recognized in profit or loss. The standard eliminates
the existing IAS 39 categories of held to maturity, available for sale and loans and receivables. Classification takes place on
initial recognition and subsequent changes are expected to be rare and subject to certain conditions. Embedded derivatives are no
longer separated from hybrid contracts that have a financial asset host. Instead, the entire hybrid contract is assessed for
classification using the principles above. IAS 39 continues to apply to derivatives embedded in financial liabilities.

Fair value options
An entity may designate a financial instrument on initial recognition as measured at fair value through profit or loss only if it
eliminates or significantly reduces a measurement or recognition inconsistency (“accounting mismatch”).

Investments in Equity Instruments
Investments in equity instruments are generally measured at fair value with gains and losses recognized in profit or loss. For an
investment in an equity instrument that is not held for trading, an entity may on initial recognition elect to present all fair value
changes from the investment in other comprehensive income (OCI). No amount recognized in OCI is ever reclassified to profit or
loss at a later date. Dividends on such investments are recognized in profit or loss, rather than OCI, in accordance with IAS 18

Revenue unless they clearly represent a recovery of the cost of the investment.

IFRS 9 eliminates the exception in IAS 39 that allows investments in unquoted equity instruments, and related derivatives, for
which a fair value cannot be determined reliably, to be measured at cost. These instruments are now measured at fair value
although the standard notes that in some limited circumstances cost may be an appropriate estimate of fair value. The guidance in
IAS 39 on impairments of financial assets and on hedge accounting continues to apply. However, as a result of the simplified
classification requirements, the numerous impairment methods in IAS 39 have been reduced to a single impairment method.

BASIS OF CONSOLIDATION

Subsidiaries

Subsidiaries are entities controlled by the group. Control exists when the group has the power, directly or indirectly, to govern the
financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights
that are currently exercisable or convertible, are taken into account. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.

Changes in the group’s interest in a subsidiary which does not lead to loss of control is recorded as a transaction with equity
owners in their capacity as equity owners and no profit or loss is recognized. Subsequent changes to an exercise price of an option
or forward price forming part of the aforementioned transaction is recognized in profit or loss. When control is lost, the gain or
loss is recognized in profit or loss and any remaining interest is recorded at the fair value on the transaction date, which is deemed
to be the cost price, and depending on the nature of the remaining investment is either recognized as an associate, joint venture or
as a financial instrument.

Subsidiaries with a year-end on a date other than June 30, are included in the consolidated financial statements using the most
recent financial results with no more than a three-month difference if it is impracticable to prepare financial statements at the
group reporting date. Adjustments are made for material transactions and events between the group and subsidiary in the
intervening period.

The accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the group.

Special purpose entities

The group has established a special purpose entity for investment purposes. The group has a direct shareholding in the entity. A
special purpose entity is consolidated if, based on evaluation of the substance of its relationship with the group and the special
purpose entity’s risks and rewards, the group concludes that it controls the special purpose entity. The special purpose entity
controlled by the group was established under terms that impose strict limitations on the decision-making powers of the special
purpose entity’s management and that result in the group receiving the majority of the benefits related to the special purpose
entity’s operations and net assets, being exposed to the majority of risks incident to the special purpose entity’s activities, and
retaining the majority of the residual or ownership risks relating to the special purpose entity or its assets.

F-14

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

BASIS OF CONSOLIDATION (continued)

Associates

Associates are those entities in which the group has significant influence, but not control, over the financial and operating
policies. Significant influence is presumed to exist when the group holds between 20% and 50% of the voting power of another
entity. Associates are accounted for using the equity method and are initially recognized at cost. The group's investment in
associates includes goodwill identified on acquisition and is presented net of any accumulated impairment losses. The
consolidated financial statements include the group's share of the total recognized income and expenses and equity movements of
associates, after adjustments to align the accounting policies with those of the group, from the date that significant influence
commences until the date that significant influence ceases.

When the group's share of losses exceeds its interest in an associate, the group's carrying amount is reduced to nil and recognition
of further losses is discontinued except to the extent that the group has incurred legal or constructive obligations or made
payments on behalf of an associate.

Joint ventures

Joint ventures (jointly controlled entities) are those entities for which the group has joint control over their activities. They are
established by contractual agreement and require unanimous consent for strategic financial and operating decisions. The
consolidated financial statements include the group's proportionate share of the entities' assets, liabilities, revenue and expenses,
with items of a similar nature on a line-by-line basis, from the date that joint control commences until the date that joint control
ceases.

Transactions eliminated on consolidation

Intra-group balances, transactions and any unrealized gains and losses or income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with
associates and jointly controlled entities are eliminated to the extent of the group's interest in the entity. Unrealized losses are
eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

FOREIGN CURRENCY

Functional currency

The functional currency is the currency of the primary economic environment in which the entity operates. This is determined by
all companies in the group after analyzing all sources and influences of various currencies on their respective financial position
and performance, in order to establish the currency with the most dominant influence as its functional currency.

Each entity in the group has determined its own functional currency in accordance with the above process. The functional
currency of the company is the South African Rand.

Foreign currency transactions

Transactions in foreign currencies undertaken by group entities are translated at the foreign exchange rates ruling at the dates of
these transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the
functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms
of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets
and liabilities denominated in foreign currencies, measured at fair value, are translated at foreign exchange rates ruling at the date
that the fair value was determined. Foreign exchange differences arising on translation are recognized in profit and loss, except
for differences arising on the translation of available-for-sale equity instruments or a financial liability designated as a hedge of
the net investment in a foreign operation, which are recognized directly in other comprehensive income.

F-15

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

FOREIGN CURRENCY (continued)

Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated
into South African Rands at the foreign exchange rates ruling at the reporting date. The revenues and expenses of foreign
operations are translated to South African Rands at rates approximating the foreign exchange rates ruling at the dates of the
transactions. Foreign exchange differences arising on retranslation are recognized in other comprehensive income and presented
within equity in the foreign currency translation reserve. When a foreign operation is disposed of, the relevant amount in the
foreign currency translation reserve is transferred to profit or loss as part of the profit or loss on disposal. On partial disposal of a
subsidiary that includes a foreign operation, the relevant portion of such cumulative amount is reattributed to non-controlling
interests.

Net investment in foreign operations

Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlement
of which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment in a foreign
operation and are recognized in other comprehensive income and presented within equity in the foreign currency translation
reserve in the consolidated financial statements.

FINANCIAL INSTRUMENTS

Financial instruments recognized in the statement of financial position include investments, available-for-sale financial
instruments, trade and other receivables, cash and cash equivalents, long- and short-term interest-bearing borrowings, trade and
other payables and bank overdrafts. Financial instruments are initially recognized at fair value and include any directly
attributable transaction costs, except those financial instruments measured at fair value through profit or loss. Subsequent to initial
recognition, financial instruments are measured as described below.

Financial assets and liabilities are off-set and the net amount presented in the statement of financial position when, and only
when, the company has the legal right to off-set the amounts and intends either to settle on a net basis or to realize the assets and
settle the liabilities simultaneously.

Loans and receivables

Loans and receivables (which includes trade and other receivables) are measured at amortized cost using the effective interest
method, less any impairment losses.

Available-for-sale financial assets

The group's investments in equity securities and certain debt securities are classified as available-for-sale financial assets.
Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign
exchange gains and losses on available-for-sale monetary items are recognized in other comprehensive income and presented
within equity in the revaluation and other reserves. When an investment is derecognized, the cumulative gain or loss in other
comprehensive income is transferred to profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits, and highly liquid investments with an original maturity of
three months or less. Subsequent to initial recognition, cash and cash equivalents are measured at amortized cost, which is
equivalent to their fair value. Bank overdrafts that are repayable on demand and form an integral part of the group's cash
management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

Interest-bearing borrowings

Interest-bearing borrowings (including the preference share liabilities) are subsequently measured at amortized cost with any
difference between the initial amount and the redemption value being recognized in profit or loss over the period of the
borrowings on an effective interest basis. If the group revises its estimates of payments, the carrying amount of the liability is
adjusted to reflect actual and revised estimated cash flows. The carrying amount is recalculated by computing the current value of
estimated future cash flows at the liability's original effective interest rate. The adjustment is recognized as income or expense in
profit or loss.

F-16

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

FINANCIAL INSTRUMENTS (continued)

Trade and other payables

Subsequent to initial recognition, trade and other payables are measured at amortized cost, using the effective interest rate
method.

PROPERTY, PLANT AND EQUIPMENT

Owned assets

The group's property, plant and equipment consists mainly of mining assets which comprise mining properties (including mineral
rights), mine development costs, mine plant facilities and equipment and vehicles.

Development costs which are capitalized consist primarily of expenditure that gives access to proved and probable Ore Reserves.
Capitalized development costs include expenditure incurred to develop new ore bodies, to define future mineralization in existing
ore bodies and to expand the capacity of a mine. Mine development costs to maintain production, are expensed as incurred.
Where funds have been borrowed specifically to finance a project, the amount of interest capitalized represents the actual
borrowing costs incurred (refer to accounting policy on finance costs capitalized). Mine development costs include acquired
proved and probable Ore Reserves at the acquisition date.

Exploration and evaluation costs, including the costs of acquiring licenses, property and qualifying borrowing costs, are
capitalized as exploration assets on a project-by-project basis pending determination of the technical feasibility and commercial
viability of the project. The capitalized costs are presented as tangible assets according to the nature of the assets acquired. When
a license is relinquished or a project is abandoned, the related costs are recognized in profit or loss immediately. Pre-license costs
are recognized in profit or loss as incurred.

Items of property, plant and equipment are measured at cost, less accumulated depreciation and accumulated impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes
the cost of materials and direct labor, any other costs directly attributable to bringing an asset to a working condition for its
intended use, as well as the costs of dismantling and removing an asset and restoring the site on which it was located.

Where parts of an item of property, plant and equipment, with costs that are significant in relation to the total cost of the item,
have different useful lives, they are accounted for as separate items of property, plant and equipment.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the net proceeds from
disposal with the carrying amount of property, plant and equipment, and are recognized in profit or loss. When assets are sold
which have been revalued on acquisition for consolidated purposes, the amounts included in the revaluation reserve are
transferred to retained earnings.

Leased assets

Leases in terms of which the group assumes substantially all the risks and rewards of ownership are classified as finance leases.
Upon initial recognition, the leased asset and liability are measured at amounts equal to the lower of the fair value of the leased
asset and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in the
same manner as owned property, plant and equipment.

Subsequent costs

The group recognizes in the carrying amount of an item of property, plant and equipment, the cost of replacing part of an item
when that cost is incurred, if it is probable that the future economic benefits embodied within the part will flow to the group and
the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other costs are
recognized in profit or loss as an expense as incurred.

F-17

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

PROPERTY, PLANT AND EQUIPMENT (continued)

Depreciation

Depreciation of mining properties (including mineral rights), mine development and mine plant facilities relating to underground
operations are computed using the units-of-production method based on estimated proved and probable Ore Reserves, which are
calculated using our life of mine business plans and a gold price at the end of each financial year. Proved and probable Ore
Reserves reflect estimated quantities of economically recoverable reserves which can be recovered in the future from known
mineral deposits. Exploration assets that are available for use are depreciated over their estimated useful lives. Changes in
management’s estimates of the quantities of the economically recoverable reserves impact depreciation on a prospective basis.
The prevailing market price of gold at the end of the financial year was R208,287, R236,227 and R306,081 per kilogram for the
fiscal years ended June 30, 2008, 2009 and 2010, respectively.

Other assets are depreciated using the straight-line basis over the estimated useful lives of each part of an item of property, plant
and equipment. Leased assets are depreciated over the shorter of the lease term and their estimated useful lives, unless it is
reasonably certain that the group will obtain ownership by the end of the lease term. Land is not depreciated.

The current estimated useful lives for the current and comparative periods are:

•

mining properties – life of mine for each operation, currently between five (2009: two and 2008: three) and 27 (2009: 27

and 2008: 28) years

•

mine development – life of mine for each operation, currently between five (2009: two and 2008: three) and 27 (2009:

27 and 2008: 28) years

•

mine plant facilities – life of mine for each operation, currently between five (2009: two and 2008: three) and 27 (2009:

27 and 2008: 28) years

•

equipment and vehicles – three to five years

The residual values, estimated useful lives and depreciation methods are re-assessed annually and adjusted if appropriate.

INTANGIBLE ASSETS

Acquisition and goodwill arising thereon

The group measures goodwill as the fair value of the consideration transferred including the recognized amount of any non-
controlling interest in the acquiree, less the net recognized amount (generally fair value) of the identifiable assets acquired and
liabilities assumed, all measured as of the acquisition date. In the case of a bargain purchase, the resulting gain is recognized in
profit or loss on the acquisition date. Goodwill relating to equity accounted investments is included within the carrying value of
the investment and tested for impairment when indicators exist.

Acquisitions of non-controlling interests are accounted for as transactions with equity holders in their capacity as equity holders
and therefore no goodwill is recognized as a result of such transactions.

Goodwill relating to subsidiaries is tested annually for impairment and measured at cost less accumulated impairment losses.
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is
allocated to cash-generating units for the purposes of impairment testing.

IMPAIRMENT

Financial assets

A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A
financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on
the estimated future cash flows of that asset.

Financial assets measured at amortized cost

An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying
amount and the present value of the estimated future cash flows discounted at the original effective interest rate, that is, the
effective interest rate computed at initial recognition of these financial assets.

F-18

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

IMPAIRMENT (continued)

Available-for-sale financial assets

An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its fair value. When a decline in
the fair value of an available-for-sale financial asset has been recognized directly in other comprehensive income, and there is
objective evidence that the asset is impaired, the cumulative loss that had been recognized in other comprehensive income is
recognized in profit or loss even though the financial asset has not been derecognized. The amount of the cumulative loss that is
recognized in profit or loss is the difference between the acquisition cost and current fair value, less any impairment loss on that
financial asset previously recognized in profit or loss. Financial assets that are individually significant are tested for impairment
on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk
characteristics. All impairment losses are recognized in profit or loss.

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was
recognized. For financial assets measured at amortized cost and available-for-sale financial assets that are debt securities, the
reversal is recognized in profit or loss. For available-for-sale financial assets that are equity securities, the reversal is recognized
in other comprehensive income.

Non-financial assets

The carrying amounts of the group's assets, other than inventories and deferred tax assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. Future cash flows are estimated
based on quantities of recoverable minerals, expected gold prices, production levels and cash costs of production, all based on life
of mine business plans. The term "recoverable minerals" means proved and probable Ore Reserves which are calculated using our
life of mine business plans and a gold price at the end of each financial year. The prevailing market price of gold at the end of the
financial year was R208,287, R236,227 and R306,081 per kilogram for the fiscal years ended June 30, 2008, 2009 and 2010,
respectively. For purposes of impairment testing, assets are grouped together into the smallest group of assets which generates
cash flows from continuing use that is largely independent of the cash inflows of other assets or groups of assets (‘cash-generating
units’).

An impairment loss is recognized directly against the carrying amount of the asset whenever the carrying amount of an asset, or
its cash generating unit, exceeds its recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses
recognized in respect of cash-generating units are allocated to the carrying amounts of the assets in the unit (group of units) on a
pro rata basis. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss
has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognized.

Exploration assets

Exploration assets are assessed for impairment if facts and circumstances suggest that the carrying amount exceeds the
recoverable amount. For purposes of impairment testing, exploration assets are allocated to cash generating units consistent with
the determination of reportable segments. The technical feasibility and commercial viability of extracting an Ore Reserve is
considered to be determinable when proven reserves are determined to exist. Upon determination of proven reserves, exploration
assets attributable to those reserves are first tested for impairment and then reclassified from exploration assets to a separate
category within tangible assets. Expenditure deemed to be unsuccessful is recognized in profit or loss immediately.

INVENTORIES

Gold in process is stated at the lower of cost and net realizable value. Costs are assigned to gold in process on a weighted average
cost basis. Costs comprise all costs incurred to the stage immediately prior to smelting, including costs of extraction and
processing as they are reliably measurable at that point. Selling, refining and general administration costs are excluded from
inventory valuation. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs
of completion and selling expenses.

Consumable stores are stated at the lower of cost and net realizable value. Cost of consumables is based on the weighted average
cost principle and includes expenditure incurred in acquiring inventories and bringing them to their existing location and
condition.

F-19

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

INVENTORIES (continued)

Bullion is stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary
course of business, less the estimated cost of completion and selling expenses.

TAXATION

Income tax expense comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it
relates to a business combination, or to items recognized directly in equity or other comprehensive income.

Current taxation

Current taxation is the expected tax payable on the taxable income for the year, using tax rates enacted, or substantively enacted,
at the reporting date and any adjustment to tax payable in respect of previous years.

Deferred taxation

Deferred taxation is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following
temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries and jointly controlled entities
to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognized for
taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the maximum tax rates
that could apply to the temporary differences, based on the expected manner of realization or settlement of the carrying amount of
assets and liabilities, and based on the laws that have been enacted or substantively enacted by the reporting date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, if these
relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, if the company
intends to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which
the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that
it is no longer probable that the related tax benefit will be realized.

Additional income taxes that arise from the distribution of dividends, such as secondary tax on companies, are recognized at the
same time as the liability to pay the related dividend is recognized.

SHARE CAPITAL

Ordinary share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognized as a
deduction from equity, net of any tax effect.

Preference share capital

Preference share capital is classified as equity if it is non-redeemable, or redeemable only at the company's option, and any
dividends are discretionary. Dividends on preference share capital classified as equity are recognized as distributions within
equity. Preference share capital is classified as a liability if it is redeemable on a specific date or at the option of the shareholders,
or if dividend payments are not discretionary. Dividends thereon are recognized as interest expense in profit or loss as accrued.

Dividends

Dividends are recognized as a liability in the period in which they are declared.

F-20

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

EMPLOYEE BENEFITS

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate
entity and has no legal or constructive obligation to pay further amounts. Pension plans, which are multi-employer plans in the
nature of defined contribution plans, are funded through monthly contributions to these defined contribution plans. Obligations
for contributions are recognized as an employee benefit expense in profit or loss as incurred.

Long-service benefits

The group makes long-service bonus payments (long-service awards) for certain eligible employees, under the Chamber of Mines
of South Africa Long Service Award Scheme. The amount of the award is based on both the employee's skill level and years of
service with gold mining companies that qualify for the scheme. The obligation is accrued over the service life of the employees
and is calculated using a projected unit credit method. Any actuarial gains or losses are recognized in profit or loss in the period in
which they arise.

Share-based payment transactions

The group grants share options to certain employees under an employee share plan to acquire shares of the company. The fair
value of options granted is recognized as an employee expense with a corresponding increase in equity. The fair value is
measured at grant date and spread over the period during which the employees become unconditionally entitled to the options.
The fair value of the options granted is measured using the Black-Scholes option pricing model, taking into account the terms and
conditions upon which the options were granted. The amount recognized as an expense is adjusted to reflect the actual number of
share options that vest except where forfeiture is only due to market conditions such as share prices not achieving the threshold
for vesting.

Post-retirement medical benefits

Post-retirement medical benefits in respect of qualifying employees are recognized as an expense over the expected remaining
service lives of relevant employees and the remaining life expectancies of retirees. The group has an obligation to provide
medical benefits to certain of its pensioners and dependants of ex-employees. These liabilities are provided in full, calculated on
an actuarial basis and discounted using the projected unit credit method. The discount rate is the yield at the reporting date on
corporate bonds that have maturity dates approximating the terms of the group's obligations and that are denominated in the same
currency in which the benefits are expected to be paid. Periodic valuation of these obligations is carried out by independent
actuaries using appropriate mortality tables, long-term estimates of increases in medical costs and appropriate discount rates. The
fair value of any plan assets is deducted. Actuarial gains and losses are recognized immediately in profit or loss. When the
calculation results in a benefit to the group, the recognized asset is limited to the net total of any unrecognized past service costs
and the present value of any future refunds from the plan or reductions in future contributions to the plan.

When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognized
in profit or loss on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits
vest immediately, the expense is recognized immediately in profit or loss.

Termination benefits

Termination benefits are recognized as an expense when the group is demonstrably committed, without realistic possibility of
withdrawal, to a formal detail plan to either terminate employment before the normal retirement date, or to provide termination
benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are
recognized as an expense if the group has made an offer for voluntary redundancy, it is probable that the offer will be accepted,
and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting period,
then they are discounted to their present value.

PROVISIONS

A provision is recognized in the statement of financial position when the group has present legal or constructive obligations
resulting from past events that can be estimated reliably and it is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and, where appropriate, the risks specific to the liability.

F-21

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

PROVISIONS (continued)

Decommissioning liabilities

The provision for decommissioning represents the cost that will arise from rectifying damage caused before production
commenced. Accordingly an asset is recognized and included within mining properties. Decommissioning liabilities are measured
at the present value of the expenditures expected to settle the obligation, using estimated cash flows based on current prices. The
unwinding of the decommissioning obligation is included in profit or loss. Estimated future costs of decommissioning obligations
are reviewed regularly and adjusted as appropriate for new circumstances or changes in law or technology. Changes in estimates
are capitalized or reversed against the relevant asset. Gains or losses from the expected disposal of assets are not taken into
account when determining the provision.

Restoration liabilities

The provision for restoration represents the cost of restoring site damage after the start of production. Increases in the provision
are charged to profit or loss as a cost of production. Gross restoration liabilities are estimated at the present value of the
expenditures expected to settle the obligation.

Rehabilitation trust funds

Annual contributions are made to dedicated rehabilitation trust funds to fund the estimated cost of rehabilitation during and at the
end of the life of the relevant mine. These contributions are recognized as a right to receive reimbursement from the fund and
measured at the fair value of the fund assets. Changes in the carrying value of the fund assets, other than contributions to and
payments from the fund, are recognized in profit or loss.

REVENUE RECOGNITION

Gold bullion and by-products

Revenue from the sale of gold bullion and by-products is measured at the fair value of the consideration received or receivable.
Revenue is recognized in profit or loss when the significant risks and rewards of ownership have been transferred to the buyer,
recovery of the consideration is probable, the associated costs can be estimated reliably, there is no continuing management
involvement with the goods, and the amount of revenue can be measured reliably.

Government grants

Government grants are not recognized until there is reasonable assurance that the entity will comply with the conditions attaching
to them and the grant will be received. Grants that compensate the group for expenses incurred are recognized in profit or loss as
a deduction against the related expense.

Finance income

Finance income includes dividends received, interest received, growth in the environmental rehabilitation trust funds, net gains on
financial instruments measured at amortized cost and net foreign exchange gains, and other profits and losses arising on disposal
of investments.

Dividends are recognized when the group's right to receive payment is established. Interest is recognized on a time proportion
basis taking account of the principal outstanding and the effective rate to maturity on the accrual basis.

EXPENSES

Operating lease payments

Payments made under operating leases are recognized in profit or loss on a straight-line basis over the period of the lease.

Finance lease payments

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance
charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining
balance of the liability.

F-22

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

1. ACCOUNTING POLICIES (continued)

EXPENSES (continued)

Finance expenses

Finance expenses comprise interest payable on borrowings calculated using the effective interest method, unwinding of the
discount of the provision for environmental rehabilitation, net foreign exchange losses, net losses on financial instruments
measured at amortized cost, and interest on finance leases.

Finance costs capitalized

Interest on borrowings relating to the financing of qualifying major capital projects under construction is capitalized during the
construction phase as part of the cost of the project. Such borrowing costs are capitalized over the period during which the asset is
being acquired or constructed and borrowings have been incurred. Capitalization ceases when construction is interrupted for an
extended period or when the asset is substantially complete. Other borrowing costs are expensed as incurred.

SEGMENT REPORTING

Operating segments are identified on the basis of internal reports that the group’s Chief Operating Decision Maker (CODM)
reviews regularly in allocating resources to segments and in assessing their performance. The CODM for the group has been
identified as the group’s Executive Committee. Reportable segments are identified based on quantitative thresholds of revenue,
profit or loss, and assets. The amounts disclosed for each reportable segment are the measures reported to the CODM, which are
not necessarily based on the same accounting policies as the amounts recognized in the financial statements. Aggregation of
operating segments is implemented where disclosure of information enables users of the group’s financial statements to evaluate
the nature and effects of the business activities in which it engages and the economic environment in which it operates, where the
operating segments have characteristics so similar that they can be expected to have essentially the same future prospects and
where they are similar in the following respects:

• the nature of products and services;

• the nature of the production process;

• the type or class of customer for their products and services;

• the methods used to distribute their products or provide their services; and

• if applicable, the nature of the regulatory environment.

NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

A held-for-sale asset is classified as such if it is a non-current asset, or disposal group comprising assets and liabilities, that is
expected to be recovered primarily through sale rather than through continuing use. Immediately before classification as held for
sale, the assets (or components of a disposal group) are re-measured in accordance with the group's accounting policies.
Thereafter, in general, the non-current assets or disposal groups are measured at the lower of carrying amount and fair value less
costs to sell. Impairment losses on initial classification as held for sale are included in profit or loss, even when there is a
revaluation. The same applies to gains and losses on subsequent measurement. Gains are not recognized in excess of any
cumulative impairment loss. A discontinued operation in the group is a component of the group's business that represents a
separate major line of business, a geographical area of operations which has been disposed of or is held for sale, or a subsidiary
acquired exclusively for resale. When an operation is classified as a discontinued operation, the comparative statement of
comprehensive income is restated as if the operation had been discontinued from the start of the comparative period.

EARNINGS OR LOSS PER SHARE

The group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings or loss per share are calculated
based on the net profit or loss after taxation for the year attributable to ordinary shareholders of the company, divided by the
weighted average number of ordinary shares in issue during the year. Diluted earnings or loss per share are presented when the
inclusion of ordinary shares that may be issued in the future which comprises share options granted to employees has a dilutive
effect on earnings or loss per share.

F-23

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010

2009

2008

R’000

2. REVENUE

Revenue consists of the following principal categories:

Gold revenue

1,976,778

1,870,574

1,897,723

By-product revenue

13,744

40,164

35,424

Total revenue

1,990,522

1,910,738

1,933,147

3. RESULTS FROM OPERATING ACTIVITIES INCLUDES
THE FOLLOWING:

Auditors' remuneration

(9,859)

(10,520)

(10,453)

Audit fees – current year

(9,581)

(10,246)

(10,163)

(Under)/over provision – prior year

(278)

(116)

161

Fees for other services

(158)

(451)

Management, technical, administrative and secretarial

service fees

(8,283)

(12,916)

(15,760)

Staff costs

Included in staff costs are:

(633,301)

(681,717)

(652,168)

Salaries and wages

(603,210)

(582,509)

(598,160)

Share-based payments

(4,115)

(7,873)

(6,591)

Retrenchment and restructuring costs

(20,127)

(34,922)

(11,344)

Post-retirement and other employee benefit contributions

(5,849)

(56,413)

(36,073)

Profit on sale of property, plant and equipment

13,722

10,266

10,054

Impairments

(6,224)

(75,138)

(110,633)

Property, plant and equipment

12,514

(72,438)

(116,522)

Investments in and loans to associates

(2,700)

Rehabilitation trust fund

(18,738)

Other loans

5,889

During the year ended June 30, 2010, the group reversed an impairment of R12.5 million against Crown's property, plant and
equipment. The reversal of impairment was due to the recoverable amount (value in use) of these assets being higher than their
carrying amount due to the extension of the Knights life-of-mine plan. The group recorded an impairment of R18.7 million
against the West Witwatersrand Gold Mine (Pty) Limited's rehabilitation trust fund due to the transfer of the relating mining
rights over the West Wits mining lease area (refer note 11).

During the year ended June 30, 2009, impairments of R53.0 million and R19.4 million were recorded against ERPM’s and
Crown’s property, plant and equipment, respectively. The impairments were due to the recoverable amount of these assets being
less than their carrying amount for ERPM due to closure of underground operations and for Crown due to restriction of deposition
capacity. The Crown plant, City plant and ERPM’s underground operations are separate cash-generating units. Furthermore, an
impairment relating to the investment in West Wits SA (Pty) Limited amounting to R2.7 million was recognized. The
impairment was due to the recoverable amount of this asset being less than its carrying amount.

During the year ended June 30, 2008, an impairment of R69.8 million was recorded against ERPM’s property, plant and
equipment due to unprofitable long-walls, and an impairment of R46.7 million was recorded against Emperor’s property, plant
and equipment. The impairments were due to the recoverable amount of these assets being less than their carrying amount.

An impairment of R3.5 million recorded during the 2007 financial year against the preference shares held by the black economic
empowerment partner, Khumo Gold SPV (Pty) Limited, and R2.4 million impairment which was raised against the loan to the
DRDSA Empowerment Trust, were reversed during the 2008 financial year. The reversal of these impairments was due to the
recoverable amount represented by the value in use of these assets being higher than their carrying amount.

F-24

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010

2009

2008

R’000

3. RESULTS FROM OPERATING ACTIVITIES INCLUDES
THE FOLLOWING: (continued)

Operating leases

(1,243)

(2,670)

(2,635)

Mining royalty

(1,240)

Pumping subsidy received

9,000

12,703

4. DIRECTORS' EMOLUMENTS

Executive directors

Services rendered as directors of the company

Salaries

(6,636)

(6,130)

(3,994)

Bonuses

(4,102)

(2,907)

(1,655)

Services rendered by directors as directors of subsidiaries

Salaries

(1,429)

Bonuses

(1,399)

End-of-contract payments

(747)

Non-executive directors

Services rendered as directors of the company

Directors fees and bonuses

(3,023)

(3,787)

(3,071)

Services rendered as directors as directors of subsidiaries

Directors fees and bonuses

(877)

Alternate Directors

Services rendered as directors of the company

Salaries

(1,562)

Bonuses

(716)

Pension/provident fund contributions

(130)

Included in administration and general costs

(13,761)

(16,399)

(12,005)

5. FINANCE INCOME

Dividends received

4,829

4,074

Interest received

17,704

75,035

70,232

Net gain on financial liabilities measured at amortized cost (refer note 22)

14,643

62,000

(Loss)/profit on realization of investment

(1,873)

12,005

Profit on disposal of subsidiaries (refer note 12)

156,749

Profit on disposal of joint venture

1,500

Growth in environmental rehabilitation trust funds (refer note 11)

9,452

12,867

8,486

Recognition of negative goodwill on acquisition of subsidiary

53,006

Other finance income

225

127

218

200,273

205,991

95,015

F-25

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010 2009

2008

R’000 R’000

R’000

6. FINANCE EXPENSES

Interest paid on bank loans and overdrafts

(3,687)

(2,219)

(34,133)

Interest paid on overdue accounts

(848)

(865)

(787)

Realized and unrealized foreign exchange loss

(5)

(10,318)

(37,314)

Net loss on financial liabilities measured at amortized

cost (refer note 22)

(83,721)

Unwinding of provision for environmental rehabilitation

(refer note 19)

(10,797)

(9,797)

(4,735)

Unwinding of discount on financial liabilities measured

at amortized cost

(8,468)

(18,023)

(6,394)

Other finance expenses

(327)

(521)

(609)

(24,132)

(41,743)

(167,693)

7. INCOME TAX

Mining tax

471

20,729

147,737

Non-mining tax

(6,972)

11,332

(4,026)

Secondary tax on companies

(1,762)

(3,617)

(8,263)

28,444

143,711

Comprising:

South African

Current tax - current year

(8,476)

(43,321)

(13,272)

- prior year

(70)

749

Deferred tax

2,045

74,633

81,575

Secondary tax on companies

(1,762)

(3,617)

Foreign

Current tax

(32,678)

Deferred tax

108,086

(8,263)

28,444

143,711

In South Africa, mining tax on mining income is determined based on a formula which takes into account the profit and revenue
from a gold mining company during the year. Non-mining income, which consists primarily of interest, is taxed at a standard rate
of 28% (2009: 28%) (2008: 28%).

The tax rates applicable to mining and non-mining income of a gold mining company depend on whether the company has elected
to be exempt from secondary tax on companies (STC). STC is a tax on dividends declared, which is payable by the company
declaring the dividend. At present, the STC tax rate is equal to 10.0% (2009: 10%) (2008: 10%) of the amount of income declared
as a dividend. In 1993, all existing gold mining companies had the option to elect to be exempt from STC. If the election was
made, a higher tax rate would apply to both mining and non-mining income.

In 2010, 2009 and 2008, the tax rates for taxable mining and non-mining income for companies that elected the STC exemption
were 43% (2009: 43%) (2008: 43%) and 35% (2009: 35%) (2008: 35%) respectively. During those same years, the tax rates for
companies that did not elect the STC exemption were 34% (2009: 34%) (2008: 34%) and 28% (2009: 28%) (2008: 28%), for
taxable mining and non-mining income respectively.

In 1993, the company elected not to be exempt from STC, as this would have meant that the company would be subject to normal
taxation at the higher rates of 43% for mining income and 35% for non-mining income. The company, having chosen not to be
subject to the STC exemption, is subject to 34% (2009: 34%) (2008: 34%) tax on mining income and 28% (2009: 28%) (2008:
28%) for non-mining income. With the exception of Crown, all of the South African subsidiaries elected not to be exempt from
STC.

F-26

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

7. INCOME TAX (continued)

South African deferred tax is provided at the maximum possible mining tax rate applicable in terms of the mining tax formula to
the relevant operations at either 34% or 43% (2009: 34% or 43%) (2008: 34% or 43%).

The formulae for determining the South African gold mining tax rates for both the current and prior years are:

Y = 43 – 215/X (elect not to pay STC)
Y = 34 – 170/X (elect to pay STC)

Where Y is the percentage rate of tax payable and X is the ratio of taxable income, net of any qualifying capital expenditure that
bears to mining incomes derived, expressed as a percentage.

Each company is taxed as a separate entity and no tax set-off is allowed between the companies.

2010

2009

2008

R’000

Estimated unredeemed capital expenditure at year-end

(available for deduction against future mining income)

2,171,299

1,907,048 1,395,736

Estimated tax losses at year-end (available to reduce future

taxable income)

844,903

914,057

963,940

Estimated tax losses and unredeemed capital expenditure

carried forward

3,016,202

2,821,105 2,359,676

Estimated future tax relief at applicable statutory rates

991,082

922,492

748,071

Tax reconciliation

Major items causing the group's income tax provision to

differ from the statutory rate were:

Taxation (charge)/benefit on net (profit)/loss at applicable statutory rates

(66,105)

(25,660)

27,987

Disallowable expenditure

(6,344)

(22,986)

(94,659)

Exempt income

47,967

32,372

226,850

Additional tax expense relating to the prior year

(70)

(1,373)

Tax incentives

2,410

2,114

5,678

Secondary tax on companies

(1,762)

(3,617)

Temporary differences including tax losses recognized for which deferred tax
assets were previously unrecognized

15,745

45,047

(22,145)

Other

(104)

2,547

Taxation (charge)/relief

(8,263)

28,444

143,711

F-27

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

8. PROFIT ON DISPOSAL OF DISCONTINUED OPERATIONS

The sale of Emperor’s 20% interest in the Porgera Joint Venture to Barrick was completed on August 17, 2007 for a cash
consideration of R1.9 billion ($255.0 million) and subsequently Emperor retired all its debt facilities, leaving the group debt- and
hedge-free. Emperor’s capital return to its shareholders amounting to R308.5 million ($43.9 million) was completed on
September 3, 2007 and DRDGOLD received its portion of the capital return, amounting to R242.8 million ($37.7 million).

The sale of DRDGOLD’s 78.72% interest in Emperor was concluded on October 22, 2007 for a total consideration of R355.8
million (A$56.0 million), drawing to a close the group’s mining investment in Australasia.

On March 30, 2008 DRDGOLD disposed of its 50.25% shareholding in NetGold Services Limited (NetGold) and in exchange
for its shareholding in NetGold obtained a 12.3% stake in GM Networks Limited (GoldMoney), which was sold during fiscal
2009.

Comparative information has been restated and re-presented to show the
discontinued operations separately from the continuing operations.

Profit on disposal of Porgera

1,052,393

Profit on disposal of Emperor

103,403

Profit on disposal of NetGold

13,414

Profit on disposal of discontinued operations

1,169,210

2010 2009

2008

R’000 R’000

R’000

F-28

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

9. EARNINGS PER SHARE

Basic

The calculation of earnings per ordinary share is based

on the following:

Basic earnings attributable to equity owners of the parent

207,815

129,124

996,041

Basic earnings from continuing operations attributable to equity owners of
the parent

207,815

129,124

128,558

Weighted average number of ordinary shares in issue

380,407,239

376,678,974

376,023,344

Diluted

Basic earnings attributable to equity owners of the parent

207,815

129,124

996,041

Dilutive effect on earnings

Diluted basic earnings

207,815

129,124

996,041

Reconciliation of weighted average number of ordinary shares to diluted
weighted average number of ordinary shares
Weighted average number of ordinary shares in issue

380,407,239

376,678,974

376,023,344

Number of staff options allocated

221

223,547

22,813

Diluted weighted average number of ordinary shares

380,407,460

376,902,521

376,046,157

Basic earnings per ordinary share (cents)

265

Diluted earnings per ordinary share (cents)

265

Basic earnings from continuing operations per ordinary share (cents)

Diluted earnings from continuing operations per ordinary share (cents)

2010 2009 2008

R’000 R’000 R’000

F-29

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010

2009

R’000

10. PROPERTY, PLANT AND EQUIPMENT
Total

Cost

3,191,996

2,901,436

Opening balance

2,901,436

1,809,606

Acquired through purchase of subsidiaries

131,205

740,874

Additions

200,405

346,668

Borrowing costs capitalized

5,154

Disposals

(41,082)

(866)

Accumulated depreciation and impairment

(1,334,350) (1,168,217)

Opening balance

(1,168,217)

(996,731)

Current depreciation

(190,769)

(99,217)

Reversal of impairment/(impairment)

12,514

(72,438)

Disposals

12,122

169

Carrying value

1,857,646

1,733,219

F-30

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010

2009

R’000

10. PROPERTY, PLANT AND EQUIPMENT (continued)

Mining property

Cost

314,309

284,800

Opening balance

284,800

259,313

Acquired through purchase of subsidiaries

21,656

Additions (b)

7,853

22,367

Borrowing costs capitalized

3,298

Disposals

(178)

Accumulated depreciation and impairment

(159,179)

(151,527)

Opening balance

(151,527)

(145,574)

Current depreciation

(7,652)

(5,746)

Impairment

(207)

Carrying value

155,130

133,273

Mine development

Cost

1,970,999

1,806,500

Opening balance

1,806,500

902,845

Acquired through purchase of subsidiaries

54,384

672,140

Additions

122,174

231,715

Disposals

(12,059)

(200)

Accumulated depreciation and impairment

(717,586)

(614,272)

Opening balance

(614,272)

(513,450)

Current depreciation

(115,373)

(54,254)

Impairment

(46,568)

Disposals

12 059

Carrying value

1,253,413

1,192,228

F-31

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010 2009

R’000 R’000

10. PROPERTY, PLANT AND EQUIPMENT (continued)

Mine plant facilities

Cost

734,422

679,049

Opening balance

679,049

547,018

Acquired through purchase of subsidiaries

1,243

39,925

Additions

54,130

92,253

Disposals

(147)

Accumulated depreciation and impairment

(439,227)

(386,457)

Opening balance

(386,457)

(324,383)

Current depreciation

(65,284)

(37,401)

Reversal of impairment/(impairment)

12,514

(24,673)

Carrying value

295,195

292,592

Equipment and vehicles

Cost

27,131

21,557

Opening balance

21,557

18,301

Acquired through purchase of subsidiaries

1,181

Additions

4,607

3,597

Disposals

(214)

(341)

Accumulated depreciation and impairment

(18,358)

(15,961)

Opening balance

(15,961)

(13,324)

Current depreciation

(2,460)

(1,816)

Impairment

(990)

Disposals

169

Carrying value

8,773

5,596

Exploration Assets (a)
Cost

145,135

109,530

Opening balance

109,530

82,129

Acquired through purchase of subsidiaries

52,741

28,809

Additions (b)

11,641

(3,264)

Borrowing cost capitalized

1,856

Disposal of interest in joint venture

(28,809)

Carrying value

145,135

109,530

F-32

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

10. PROPERTY, PLANT AND EQUIPMENT (continued)

Certain assets were encumbered as security for specified liabilities (refer note 22).

Borrowing costs are capitalized at the prime lending rate.

In assessing the recoverability of the above assets, where there are indicators of possible impairment, the estimated cash flows
have been calculated using the following estimates:

•

recoverable proved and probable Ore Reserves;

•

gold price estimates are based on a gold price of R311,636 per kilogram of gold (US$1,204 per ounce) in year one,
escalating at an average of 5.8% per annum and a base exchange rate of R8.05 = US$1.00, with the Rand weakening in
future years based on the expected differential between the local South African interest rates in those years over the
United States interest rates in those years.

•

working cost estimates are based on current working costs per kilogram at June 30, 2010, escalated for expected South
African inflationary increases of approximately 5.8% per annum; and

•

capital cost estimates are based on current estimates of future development costs to mine the current proved and probable
Ore Reserves, escalated for expected South African inflationary increases of approximately 5.7% per annum.

(a) Exploration assets relates to phase two of the Ergo project and include property, plant, borrowing costs and the tailings

complex as well as exploration costs incurred in the feasibility studies conducted in Zimbabwe.

(b) Included in additions are rehabilitation adjustments amounting to Rnil (2009: R5.8 million) and R6.4 million (2009:

credit of R3.9 million) relating to mining property and exploration assets, respectively.

F-33

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010 2009

R’000 R’000

11. NON-CURRENT INVESTMENTS AND OTHER ASSETS

Unlisted investments

14,712

9,556

Loan to DRDSA Empowerment Trust

10,078

10,078

Loan to Khumo Gold SPV (Pty) Ltd

23,364

23,364

Investments in environmental rehabilitation trust funds

126,069

129,682

Opening balance

129,682

110,766

Impairment

(18,738)

Contributions

5,673

6,049

Growth in environmental rehabilitation trust funds

9,452

12,867

Total non-current investments and other assets

174,223

172,680

Unlisted investments consist of:

Fair

Carrying

Number value value value

of 2010 2010 2009

% Held

shares

R'000

R'000

Rand Mutual Assurance Company

†

42,468

Rand Refinery Limited

16,157

14,704

9,549

14,712

9,556

† Represents a less than 1% shareholding.

Unlisted investments comprise investments in unlisted companies in South Africa. The valuations are based on the net asset value
of these investments which approximates the instruments’ fair value.

The monies in the environmental rehabilitation trust funds are invested primarily in low-risk interest-bearing debt securities and
may be used only for environmental rehabilitation purposes.

F-34

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010 2009

R’000 R’000

12. INVESTMENT IN SUBSIDIARIES

Acquisition of subsidiaries

ErgoGold (formerly Elsburg Gold Mining Joint Venture)
In the year ended June 30, 2009, the group entered into a 50.50 joint venture agreement through East Rand Proprietary Mines
Limited (ERPM), together with one of Mintails SA (Pty) Limited subsidiaries called Mogale Gold (Pty) Limited on August 15,
2008. The joint venture was called ErgoGold. On March 31, 2009 the group acquired the remaining 50% interest in ErgoGold
through ERPM acquiring 15% and DRDGOLD acquiring 35% for a cash consideration of R100 million and R177 million
respectively. The fair value of the assets acquired at the date of acquisition, exceeded the cost of the acquisition, therefore
resulting in a bargain purchase. The bargain purchase was a direct result of the favourable change in the gold price since the
period the purchase price was fixed and the higher gold price on the date all the requirements were met for the acquisition to be
recognized, which is the date the fair value of the assets and liabilities were determined. The resulting negative goodwill arising
amounted to R53 million and was recognized in profit or loss. The most significant fair value determined related to the mining
rights included in property, plant and equipment and amounted to R583.0 million. The Multi Period Excess Earnings Method
(MEEM) was used to calculate the fair value, incorporating the following assumptions on acquisition date: gold price of
R288,665/kg, average escalation of gold price of 6.4% per annum, working cost per tonne of R30 at an average escalation of 6%,
life of mine (period) of 13 years, average yield of 0.14g/t and discount rate of 22.5%.
The statement of comprehensive income since acquisition relating to ErgoGold which were consolidated is set out below:

Statement of comprehensive income

3 months to

June 30, 2009

Revenue

8,713

Cost of sales

(54,614)

Gross loss from operating activities

(45,901)

Other income, administration and general costs

(1,250)

Loss before taxation

(47,151)

The statement of comprehensive income

8 months to

June 30, 2009

Revenue

39,643

Cost of sales

(105,058)

Gross loss from operating activities

(65,415)

Other income, administration and general costs

(1,251)

Loss before taxation

(66,666)

The statement of financial position at acquisition of ErgoGold has been set out below:

Statement of financial position

Non-current assets

As at March 31,

2009

Property, plant and equipment

887,462

Current assets
Inventory

17,866

Trade and other receivables

950

Cash and cash equivalents

1,666

Total fair value of assets

907,944

Non-current liabilities
Deferred tax liability

(185,653)

Current liabilities
Trade and other payables

(33,381)

Total fair value of liabilities

(219,034)

Fair value of net assets on date of acquisition

688,910

Non controlling interest in fair value of net assets

55,866

Acquisition date fair value on 50% initial equity interest

344,455

F-35

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010 2009

R’000 R’000

12. INVESTMENT IN SUBSIDIARIES (continued)

Ergo Mining (Pty) Limited (Ergo JV)
On January 21, 2010, DRDGOLD signed an agreement to acquire, subject to certain suspensive conditions including Competition
Commission approval, Mintails’ remaining 50% interest in the Ergo JV for a total consideration of R82.1 million; R62.1 to be
settled in cash and the balance in shares in Witfontein Mining (Pty) Limited tailings deposition site on the Far West Rand, valued
at R20 million (refer note 13). On April 15, 2010 Competition Commission approval was obtained and the Ergo JV has been
consolidated effective May 1, 2010.

The acquisition was recorded as an asset acquisition due to the Ergo JV not being capable of operating as a business. IFRS 3
Business Combinations was therefore not applied.

The relative fair values of the assets and liabilities on the statement of financial position at acquisition of the Ergo JV have been
set out below.

Statement of financial position

As at April 30,

2009

Non-current assets
Property, plant and equipment

290,420

Current assets
Inventory

Trade and other receivables

12,611

Cash and cash equivalents

44,084

Total relative fair value of assets

347,174

Non-current liabilities
Rehabilitation provision

(157,935)

Loans and borrowings

(261,128)

Current liabilities
Trade and other payables

(4,252)

Total relative fair value of liabilities

(423,315)

Purchase consideration of 50% of the net assets on the date of acquisition

82,438

Non-controlling interest in relative fair value of net assets

(3,886)

Disposal of subsidiaries

All DRDGOLD’s foreign subsidiaries, which were holding companies of DRDGOLD’s foreign operations, have been placed into
voluntary liquidation as at June 30, 2010. A foreign currency translation reserve has accumulated over the life of these foreign
subsidiaries. The voluntary liquidation constitutes a disposal, therefore any accumulated foreign currency translation reserves
have been realized in profit or loss.

DRD (Offshore) Limited

130,022

DRD International APS (Pty) Limited

(30,035)

DRD Australia APS

111,409

DRD Australasia (Pty) Limited

(103,472)

Dome Resources (Pty) Limited

48,825

Total profit on disposal of foreign subsidiaries

156,749

F-36

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010 2009

R’000 R’000

13. INVESTMENT IN JOINT VENTURES

The joint ventures for which the statement of comprehensive income and statement of
financial position have been proportionately consolidated were as follows:
Witfontein Mining (Pty) Limited – percentage held

50%

Ergo Mining (Pty) Limited – percentage held (refer note 12)

100%

50%

In the year ended June 30, 2009, the group acquired a 50% interest in Witfontein Mining (Pty)
Limited (Witfontein) on February 28, 2009 for a cash consideration of R20 million. The
group had the option to dispose of its interest at a consideration equal to the acquisition price
if Witfontein is unsuccessful in obtaining the required approvals for a deposition facility. In
the year ended June 30, 2010 the group exercised this option and disposed of their 50%
interest in Witfontein on April 30, 2010, at a price equal to the original acquisition price.
Witfontein had no capital commitments for the year ended June 30, 2009.
In the year ended June 30, 2009 the group acquired a 50% interest in Ergo Mining (Pty)
Limited (Ergo JV) with effect from May 6, 2008. The Ergo JV was jointly controlled by the
group and Mintails Limited. In the year ended June 30, 2010 the group acquired the remaining
50% interest in the Ergo JV on April 15, 2010. This transaction was accounted for as an asset
acquisition for a total consideration of R82.1 million and the Ergo JV has subsequently been
consolidated as a subsidiary from May 1, 2010 (refer note 12). The Ergo JV has contracted
commitments which have not been provided for in the financial statements amounting to Rnil
(2009: R4.8 million), and commitments authorized by the directors but not contracted for
amounting to R73.0 million (2009: R30.9 million). The group’s proportionate share in these
amounts is 50% for the year ended June 30, 2009 and 100% for the year ended June 30, 2010.
The group’s effective share of income, expenses, assets and liabilities of the joint ventures,
which are included in the consolidated financial statements, are as follows:
Statement of comprehensive income

Revenue

Cost of sales

(11,825)

(5,162)

Gross loss from operating activities

(11,825)

(5,162)

Other income, administration and general costs

(4,568)

(3,967)

Loss before taxation

(16,393)

(9,129)

Statement of financial position

Non-current assets

69,876

Current assets

34,269

Total assets

104,145

Shareholders’ equity

10,830

Non-current liabilities

70,840

Current liabilities

22,475

Total equity and liabilities

104,145

14. INVESTMENT IN ASSOCIATES
The associate has been equity accounted for in the statement of comprehensive income and statement of financial position. An
impairment has been provided against this investment.

West Wits SA (Pty) Limited – percentage held

28.33%

28.33%

Investment in associate – at cost

2,700

2,700

Impairment of investment in associate

(2,700)

(2,700)

Carrying value of investment in associate

F-37

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010 2009

R’000 R’000

15. INVENTORIES
Current
Gold in process

36,402

42,861

Consumable stores

59,834

51,074

Finished stock - bullion

36,400

132,636

93,935

Non-current

Consumable stores

5,579

4,238

Total inventories

138,215

98,173

Inventory includes gold in process carried at net realizable value amounting to R14.0 million (2009: R25.7 million) and finished
stock – bullion amounting to R27.6 million (2009: Rnil).

16. TRADE AND OTHER RECEIVABLES

Trade receivables (gold)

12,430

30,966

Value added tax

23,028

27,494

Prepayments

386

Receivables from other related parties

Interest receivable

692

6,181

Other receivables

41,193

31,161

Allowance for impairment

(12,882)

(8,314)

64,521

87,960

17. ASSETS CLASSIFIED AS HELD FOR SALE

Mining property of R15.0 million, being the DRDGOLD mine village, is presented as held for sale following the decision of the
group’s management on January 13, 2006 to sell this disposal group as part of the closure of the old Durban Deep mine. A sale
was expected by June 30, 2010, however due to circumstances beyond the company’s control, the sale has been postponed and is
expected to be completed by June 30, 2011. The company remains committed to its plan to sell this disposal group.

The disposal groups are carried at the lower of carrying amount or fair value less costs to sell and are included within ‘Corporate
Head Office and all other’ for operating segmental reporting purposes (refer note 26).

Assets classified as held for sale

Property, plant and equipment

15,000

15,000

15,000

15,000

F-38

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010 2009

R’000 R’000

18. EQUITY OF THE OWNERS OF THE PARENT

Details of equity of the owners of the parent are provided in the statements

of changes in equity on page F-5.

Authorized share capital

600,000,000 (2009: 600,000,000) ordinary shares of no par value

5,000,000 (2009: 5,000,000) cumulative preference

shares of 10 cents each

500

500

Issued share capital

384,884,379 (2009: 378,001,303) ordinary shares of no

par value

4,133,318

4,104,480

5,000,000 (2009: 5,000,000) cumulative preference shares

of 10 cents each

500

500

4,133,818

4,104,980

Share capital
Unissued shares
The group operates a share option scheme as an incentive tool for its executive directors and senior employees whose skills and
experience are recognized as being essential to the group’s performance. In terms of the scheme rules, a maximum of 15% of the
issued ordinary shares is reserved for issuance thereunder and no participant may hold options at any time, which if exercised in
full, would exceed 2% of the company's issued share capital at that time. The number of issued and exercisable share options are
5.1% of the issued ordinary share capital which is near the internationally accepted guideline of 3% to 5% for such schemes.

In addition, the participants in the scheme are fully taxed at their marginal tax rate on any gains realized on the exercise of their
options.

In terms of an ordinary resolution passed at the previous annual general meeting, the remaining unissued ordinary shares in the
company are under the control of the directors until the next general meeting.

Cumulative preference shares
The terms of issue of the cumulative preference shares were that they carried the right, in priority to the company's ordinary
shares, to receive a dividend equal to 3% of the gross future revenue generated by the exploitation or the disposal of Argonaut's
mineral rights acquired from Randgold and Exploration Company Limited in September 1997. In 2005, the Argonaut mineral
rights reverted to the South African Government after no application for conversion was lodged within the stipulated period of
one year, under the provisions of the Mineral and Petroleum Resources Development Act (MPRDA).

Option instruments
The company currently has one class of options authorized but not issued, namely Durban Deep ‘C’ options. There are
10,000,000 authorized option instruments at year-end which entitle the holder to subscribe for one ordinary share per option
instrument at a subscription price of R15 per ordinary share. These are exercisable at any time during the period from the date on
which the option is issued by the company to a date no later than five years from the date of issue.

F-39

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

18. EQUITY OF THE OWNERS OF THE PARENT (continued)

2010 2009

R’000 R’000

Revaluation and other reserves

Foreign exchange translation reserve (a)

156,538

Asset revaluation reserve (b)

142,835

138,953

Share-based payments reserve (c)

56,034

51,919

198,869

347,410

(a) The foreign exchange translation reserve represented the cumulative translation effect arising on the translation of the
financial statements of the company’s foreign operations. During the year ended June 30, 2010 the group disposed (placed into
voluntary liquidation) all of its foreign subsidiaries and the foreign currency translation reserve relating thereto has been
transferred to profit or loss. The foreign exchange translation reserve for the year ended June 30, 2009 relates to the following
foreign holding companies, which were part of the company's Australasian operations group structure: DRD (Offshore) Limited,
Dome Resources (Pty) Limited, DRD Australasia (Pty) Limited, DRD Australia APS and DRD International APS (Pty) Limited
(refer note 12).

(b) Certain items of property, plant and equipment that were revalued to fair value on or prior to July 1, 2004 – the date of
transition to IFRS – were measured on the basis of deemed cost, being the revalued amount at the date of the revaluation. A
revaluation adjustment of R5.0 million was recognized in the asset revaluation reserve.

The reserve also includes a R3.9 million (2009: R0.6 million) fair value adjustment on available-for-sale financial instruments.

On the acquisition of ErgoGold, in the year ended June 30, 2009 an amount of R133.3 million was taken to the asset revaluation
reserve. This amount represented the increase in the fair value of ErgoGold’s net assets after the acquisition of the group’s initial
interest, which is attributable to that initial interest.

(c) The company issues equity-settled instruments to certain qualifying employees under an employee share option scheme to
purchase shares in the company’s authorized but unissued ordinary shares. Equity share-based payments are measured at the fair
value of the equity instruments at the date of the grant. Deferred share-based compensation is expensed over the vesting period,
based on the company’s estimate of the shares that are expected to eventually vest. A deferred share-based compensation expense
of R4.1 million (2009: R7.9 million), was charged to profit or loss (refer to note 3).

Dividends
The following dividends were declared and paid by the group:
5 cents per qualifying ordinary share (2009: 10 cents)

(18,954)

(37,658)

After June 30, 2010 a dividend of 5 cents per qualifying share (R19.2 million) was proposed by the directors for 2010. The
dividend has not been provided for nor the secondary tax on companies (STC) which is charged at 10% of the dividend which
is declared and is estimated to amount to R1.9 million.

19. PROVISION FOR ENVIRONMENTAL REHABILITATION

Opening balance

412,454

381,252

Acquired through purchase of subsidiary

78,968

Increase in provision

6,419

1,860

Unwinding of provision to profit or loss (refer note 6)

10,797

9,797

(Credit)/charge to profit or loss

(88,034)

19,545

Closing balance

420,604

412,454

Amounts have been contributed to irrevocable trusts (refer to note 11)

The company intends to fund the ultimate rehabilitation costs from the money invested with the trust funds as well as, at the time
of mine closure, the proceeds on sale of remaining assets and gold from plant clean-up. The rehabilitation is expected to occur
progressively towards the end of life of the respective mines.

The credit to profit or loss includes credits of R63.4 million and R4.8 million relating to the derecognition of the provisions for
Durban Roodepoort Deep and West Witwatersrand Gold Mines (Pty) Limited, respectively (refer note 23).

F-40

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

20. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)

2010 2009

R’000 R’000

Liability for post-retirement medical benefits

12,507

42,498

Liability for long-service awards

858

1,141

13,365

43,639

Contribution funds
In South Africa, the group participates in a number of multi-employer industry-based retirement plans. All plans are governed
by the Pension Funds Act, 1956.

The group pays fixed contributions to external institutions and will have no legal or constructive obligation to pay further
amounts. Pension plans, which are multi-employer plans in the nature of defined contribution plans, are funded through
monthly contributions to these defined contribution plans. Obligations for contributions are recognized as an employee
benefit expense in profit or loss as incurred.

Amounts recognized in profit or loss are as follows:

Contribution payments

(35,557)

(35,419)

Post-retirement medical benefits

The group has an obligation to fund a portion of the medical aid contributions of certain of its employees after they have
retired. A provision for post-retirement medical benefits has been raised, based on the latest calculations, using a projected
unit credit method of independent actuaries, performed as at June 30, 2010. Post-retirement medical benefits are actuarially
valued every three years. The obligation is unfunded. As a result of a project initiated during the year ended June 30, 2010 to
optimize the synergies of the group’s surface retreatment operations, and the resulting possibility of a settlement of existing
post-retirement medical benefits, management has revised the assumptions used in the calculation of this provision. The
resulting decrease in the provision for post-retirement medical benefits of approximately R30 million has been treated, for
accounting purposes, as a change in estimate and is included in cost of sales.
Amounts recognized in the statement of financial position are as follows:

Opening balance

42,498

21,504

Current service cost

2,075

1,101

Actuarial (gain)/loss

(35,290)

18,226

Benefits paid

(283)

Interest costs

3,507

1,667

Closing balance

12,507

42,498

Amounts recognized in profit or loss are as follows:

Current service cost and interest

(2,075)

(1,101)

Net actuarial gain/(loss)

35,290

(18,226)

Interest costs

(3,507)

(1,667)

29,708

(20,994)

Principal actuarial assumptions at the reporting date:

Health care cost inflation

7.8%

7.3%

Discount rate

9.3%

8.3%

Real discount rate

1.4%

0.9%

Normal retirement age

60/65

Expected average retirement age

59.8

59.9/64.1

Spouse age gap

3 years

3 years

Continuation at retirement

100%

100%

Proportion married at retirement

85%

85%

F-41

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

20. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)

Historical information:

2010

2009

2008

2007

2006

R’000

Unfunded liability

12,507

42,498

21,504

19,009

16,762

Actuarial (gain)/loss

(35,290)

18,226

2,923

There are currently no long-term assets set aside in respect of post-employment medical care liabilities.

Assuming all other variables remain constant, a one percent base point change in health care costs would have the following
effects:

Sensitivity analysis:

Health care

Variation

cost inflation

Mortality

Resignation rate

R’000

R’000 R’000

Effect on the aggregate

+1%

927

(709)

(212)

service and interest cost

-1%

(759)

832

234

Effect in past-service

+1%

1,939

(1,513)

(400)

contractual liability

-1%

(1,588)

1,776

438

The group expects to pay contributions to the amount of R0.4 million during 2011.

Long-service awards
The group participates in the Chamber of Mines of South Africa Long Service Awards Scheme (the scheme). The scheme does
not confer on any employee or other persons any right of payment of any award.

In terms of the scheme, bonus payments may be made to certain employees, usually semi-skilled, upon reaching the age of 55,
who have completed 15 years of continuous service in South African gold mining companies which are members of the Chamber
of Mines of South Africa and The Employment Bureau of Africa, provided such service is not pensionable service. The scheme
lays down the rules under which an employee may be eligible for the award. The award is paid by the company for which the
employee works upon becoming eligible for the award and electing to receive payment. All awards must be confirmed by the
Chamber of Mines of South Africa before payment.

The amount of the award is based on both the employee's skill level and years of service with gold mining companies that qualify
for the scheme.

2010

2009

R’000

Amounts recognized in the statement of financial position are as follows:

Opening balance

1,141

1,236

Benefits paid

(283)

(95)

Closing balance

858

1,141

Share option scheme

a) Details of the scheme

The company operates a Share Option Scheme, DRDGOLD (1996) Share Scheme, (the scheme), as an incentive tool for its
executive directors and senior employees whose skills and experience are recognized as being essential to the company's
performance. In terms of the scheme rules a maximum of 15% of the issued ordinary shares of the company is reserved for
issuance thereunder and no participant may hold options at any time which, if exercised in full, would exceed 2% of the
company's issued share capital at that time. The number of issued and exercisable share options is approximately 5.1% of the
issued ordinary share capital which is near the internationally accepted guideline of 3% to 5% for such schemes. In addition, the
participants in the scheme are fully taxed at their marginal tax rate on any gains realized on the exercise of their options.

F-42

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

20. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)

The price at which an option may be exercised is the lowest seven-day trailing average of the closing market prices of an ordinary
share on the JSE Limited, as confirmed by the company's directors, during the three months preceding the day on which the
employee is granted the option. Each option remains in force for 10 years after the date of grant, subject to the terms of the option
plan. Options granted under a plan vest at the discretion of the company's directors, but primarily according to the following
schedule over a maximum of a three-year period:

Percentage vested in each period
grant:

Period after the original
date of the option:

25% 6 months

25% 1 year

25% 2 years

25% 3 years

Any options not exercised within a period of 5 years (issued prior to 2009: 10 years) from the original date of the option will
expire and may not thereafter be exercised.

b) Share options activity in respect of the DRDGOLD (1996) Share Scheme was as follows:

Outstanding Vested

Average Average

price per

Number of

share

Number of

share

shares

Balance at June 30, 2008

15,935,619

13.85

11,257,594

11.58

Granted 4,647,800

3.50

Exercised (1,429,715)

4.69

Forfeited/lapsed (1,848,775)

10.71

Balance at June 30, 2009

17,304,929

11.75

11,611,308

10.43

Granted 3,654,307

5.35

Exercised (262,663)

3.83

Forfeited/lapsed (1,202,172)

6.88

Balance at June 30, 2010

19,494,401

10.96

14,110,206 13.45

Options to acquire the company’s ordinary shares that were granted post November 7, 2002 and remain unvested at January 1,
2005, are measured at fair value at grant date. This fair value is recognized as an employee expense over the vesting period,
adjusted to reflect actual levels of vesting, with the corresponding credit to a revaluation and other reserve, which is part of
equity.

The fair value of the options granted is measured using the Black–Scholes option pricing model, taking into account the terms and
conditions upon which the options were granted.

Analysis of share options:

Years Vested

Unvested

June 30,

expiry 2010 2011

2012 2013

R5< 7-8

4,303,284

1,930,862

917,859

R5>R10 4-7

5,306,272

884,698

825,352

825,424

R10>R15 4

1,150,000

R15>R20 2-4

2,893,450

R20>R30

457,200

- -

14,110,206

2,815,560 1,743,211

825,424

F-43

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

20. POST-RETIREMENT AND OTHER EMPLOYEE BENEFITS (continued)

2010

2009

R’000

c) The fair value of the options determined using the Black - Scholes option valuation model.

Significant inputs into the model were:

Market price at date of grant (Rand per share)

November 1, 2004 option grant

10.93

10.93

April 15, 2005 option grant

5.13

5.13

June 17, 2005 option grant

5.50

5.50

October 25, 2005 option grant

5.94

5.94

October 30, 2006 option grant

9.93

9.93

October 29, 2007 option grant

5.50

5.50

October 20, 2008 option grant

4.70

4.70

October 20, 2009 option grant

5.30

Vesting periods (years)

November 1, 2004 option grant

April 15, 2005 option grant

June 17, 2005 option grant

October 25, 2005 option grant

October 30, 2006 option grant

October 29, 2007 option grant

October 20, 2008 option grant

October 20, 2009 option grant

Option strike price (Rand per share)

November 1, 2004 option grant

11.70

11.70

April 15, 2005 option grant

4.84

4.84

June 17, 2005 option grant

7.10

7.10

October 25, 2005 option grant

8.78

8.78

October 30, 2006 option grant

9.08

9.08

October 29, 2007 option grant

3.88

3.88

October 20, 2008 option grant

3.50

3.50

October 20, 2009 option grant

5.35

Risk-free rate

November 1, 2004 option grant

8.56%

8.56%

April 15, 2005 option grant

7.81%

7.81%

June 17, 2005 option grant

7.58%

7.58%

October 25, 2005 option grant

7.94%

7.94%

October 30, 2006 option grant

8.39%

8.39%

October 29, 2007 option grant

8.79%

8.79%

October 20, 2008 option grant

9.55%

9.55%

October 20, 2009 option grant

8.72%

Volatility

(1)

November 1, 2004 option grant

29%

29%

April 15, 2005 option grant

37%

37%

June 17, 2005 option grant

38%

38%

October 25, 2005 option grant

36%

36%

October 30, 2006 option grant

44%

44%

October 29, 2007 option grant

28%

28%

October 20, 2008 option grant

31%

31%

October 20, 2009 option grant

25%

(1)

The volatility is measured at the standard deviation of the expected share price returns and is based on statistical analysis of

daily share prices over the last three years.

F-44

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

21. DEFERRED TAX

2010 2009

R’000 R’000

Balances arose from the following temporary differences:

Deferred tax asset

Property, plant and equipment

256,710

282,940

Provisions, including rehabilitation provision

169,583

132,704

Estimated assessed losses

91,886

114,998

Capital losses

151,450

152,063

Other temporary differences

27,329

Deferred tax asset not recognized

(556,216)

(517,590)

140,742

165,115

Deferred tax liability

Property, plant and equipment

(168,138)

(211,633)

Provisions, including rehabilitation provision

10,162

Other temporary differences

(4)

6,911

(168,142)

(194,560)

Net deferred mining and income tax liability

(27,400)

(29,445)

Reconciliation between deferred taxation opening and closing balances

Opening balance

(29,445)

81,575

Acquisition of subsidiary

(185,653)

Profit or loss credit

2,045

74,633

Closing balance

(27,400)

(29,445)

The deferred tax relating to the company’s investment in subsidiaries, joint venture and associate is Rnil (2009: Rnil) resulting
from the fact that these investments are to be realized through dividend distributions which are exempt under current South
African tax legislation.

22. LOANS AND BORROWINGS

Secured

AngloGold Ashanti Limited (a)

2,101

Unsecured

Preference shares held by Khumo Gold SPV (Pty) Limited and the DRDSA
Empowerment Trust (b)

58,977

65,146

58,977

67,247

Less: payable within one year included under current liabilities

(2,101)

58,977

65,146

Loans and borrowings expected repayment schedule for capital amounts payable in
the twelve months to:

June 30, 2010

- 2,101

June 30, 2011

- 12,591

June 30, 2012

- 20,354

Thereafter

58,977 32,201

58,977 67,247

Analysis of gross loans and borrowings by currency:
South African Rand

58,977

67,247

Effective interest rates:

Secured liabilities

AngloGold Ashanti Limited

11.0%

Undrawn committed borrowing facilities:

Investec Bank Limited

250,000

F-45

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

22. LOANS AND BORROWINGS (continued)

(a) On July 31, 2007 and on March 1, 2008 Ergo Mining (Pty) Limited entered into two separate loan facilities, amounting to
R85.3 million, with AngloGold Ashanti Limited for the purchase of the remaining moveable and immovable assets of Ergo.
These assets had a carrying value of R87.8 million (2009: R87.8 million) at year end. The facilities were repayable in equal
monthly installments over 23 and 19 months respectively of which the final installment was paid during the year ended June 30,
2010. The loans bore interest at the prime lending rate, which was 11% at June 30, 2009. The loans were secured over the assets
that were purchased from AngloGold Ashanti Limited.

(b) On November 18, 2005, the group issued class A cumulative participating preference shares to Khumo Gold SPV (Pty)
Limited (Khumo Gold), for a subscription price of R10.6 million. Class B and Class C cumulative participating preference
shares, for a subscription price of R7.1 million and R8.6 million were issued to Khumo Gold and the DRDSA Empowerment
Trust respectively on November 30, 2006. The preference shares entitle Khumo Gold and the employee trust to receive a
dividend of R0.26 for every R0.74 paid by Crown, ERPM and Blyvoor to the company towards capital and interest on their
outstanding intra-group loans as at November 30, 2005. Crown repaid its loan to DRDGOLD during the year ended June 30,
2009 and a preference dividend of R31.8 million was paid to Khumo Gold and the employee trust. There are no further
obligations pursuant to the Crown preference shares and they were cancelled. The preference shares are measured at amortized
cost based on the effective interest rate method. As these financial instruments do not have fixed terms, the repayment schedules
for the loans are based on an estimated repayment schedule, calculated using the available profits of the relevant operations with
reference to their respective life-of-mine plans (LOM plans). The extension of the repayment period at Blyvoor resulted in a
positive adjustment of R33.9 million (2009: R36.1 million) and the reduction of the repayment period at ERPM resulted in a
negative adjustment of R19.3 million (2009: extension of repayment period resulted in a positive adjustment amounting to R27.2
million), and a net loss at Crown during 2009 of R1.3 million.

F-46

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

23. COMMITMENTS AND CONTINGENT LIABILITIES

2010 2009

R’000 R’000

Capital commitments

Contracted for but not provided for in the annual financial statements

36,744

33,063

Authorized by the directors but not contracted for

176,744

79,333

213,488

112,396

This capital expenditure will be financed from existing cash resources, cash generated from operations and negotiated funding
facilities.

Operating lease commitments
The company leases its office building in terms of an operating lease. The company does not have an option to acquire the
building at the termination of the lease. There is an escalation of 8% per annum imposed by the lease agreement.

Crown leases its vehicles under various operating leases. There is an average escalation of 2.5% per annum imposed by these
lease agreements.

The future minimum lease payments under non-cancellable operating leases are as
follows:

Not later than 1 year

1,058

1,874

Between 1 and 5 years

3,815

307

Later than 5 years

Environmental
At Durban Roodepoort Deep mine, rehabilitation and other responsibilities like the National Nuclear Regulator Certificate of
Registration requirements have been taken over by DRD (Pty) Ltd or Mintails. An official liability transfer in terms of section 58
of the Mineral and Petroleum Resources Development Act (MPRDA) has been submitted to the Department of Minerals and
Resources (DMR). DRDGOLD retains only the village that has no assessed liability associated with it. The legal transfer thereof
would be dependent on the DMR’s assessment of Mintail’s financial capability. DRDGOLD therefore still has a contingent
liability until such legal transfer is affected.

At West Witwatersrand Gold Mine (Pty) Limited mine, responsibility for the mine, including the environmental rehabilitation
liability, has been taken over contractually by Mintails although the legal transfer thereof would be dependent on the DMR’s
assessment of Mintail’s financial capability. DRDGOLD therefore still has a contingent liability until such legal transfer is
affected.

Management of West Rand Consolidated Mines’ tailings dams have been taken over by Mintails which plans to reprocess them.
An Environmental Management Programme (EMP) for the balance of the area has been submitted to the DMR as part of the
conversion process of ML9/2000. The execution of the conversion is imminent.

In terms of Acid Mine Drainage (AMD) from the Western Basin, a proposal has been submitted to the regulators for an interim
solution whereby the Western Basin water is pumped into the Central Basin. Water from the Central Basin is then pumped from
400m below surface and partly treated in the ERPM High Density Separation (HDS) plant before being released. The proposal is
based on a Public Private Partnership and will prevent untreated water from polluting the environment until the final sustainable
solution is put in place. In terms of this proposal DRDGOLD will contribute approximately R13.4 million towards the R218
million capital required. Final approval is awaited.

With regards to AMD, DRDGOLD’s subsidiaries’ contributed approximately 1.5% of the AMD problem, which is based on
calculating the total amount of rock removed from underground and calculating this as a percentage of the total. This,
DRDGOLD believe, is the best available method of determining how much rock bearing pollutants had been exposed by our
activities.

Blyvoor continues to pump water from underground and discharges approximately 8 million litres (Ml) per day into the
Wonderfontein Spruit. Regular monthly quality meetings continue to take place with the Tlokwe (Potchefstroom) Municipality
and Blyvoor is fully compliant with the requirements of the agreement with the Tlokwe (Potchefstroom) City Council. Blyvoor
also participates in the Mining Interest Group, a sub group of the Wonderfontein Spruit Forum, which determines strategies
regarding potential pollution and remedial action of the Wonderfontein Spruit and eventual regional closure. The regulators have
produced a remediation report for the spruit that identifies certain areas requiring attention. Implementation task teams will now
be set up to do the necessary studies and remediation where required. Blyvoor has also authorized a water treatment plant that will
treat approximately 6Ml per day of the discharged water to potable standard for their own consumption. The plant is currently
being commissioned and should be operational within the next few months.

F-47

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

23. COMMITMENTS AND CONTINGENT LIABILITIES (continued)

Crown has continued to engage proactively with the local community in terms of dust and other environmental issues. Since the
upgrading of pipelines there have been very limited slime spills. Dust is very well managed. These initiatives are continuing with
rehabilitation being an integral part of the operational management.

ERPM has updated its EMP to meet the requirements of the MPRDA and submitted it to the DMR for approval. The concurrent
rehabilitation of redundant structures and holdings continued throughout the year. A proposal whereby water from the Central
Basin as well as water from the Western Basin is pumped and treated at the HDS plant before being discharged has been
submitted to the regulators for approval. This proposal will prevent AMD from contaminating ground water and decanting
uncontrolled into the environment (see above).

Ergo has restarted depositing onto the Brakpan tailings facility. Cladding of the side slopes of the dam to prevent dust progressed
very well throughout the year.

Mining rights
The company’s rights to own and exploit its Ore Reserves and deposits are governed by the laws and regulations of the
jurisdictions in which the mineral properties are located. Currently all of the company’s Ore Reserves and deposits are located in
South Africa. On May 1, 2004, the new MPRDA, was enacted, which places all mineral and petroleum resources under the
custodianship of the state. Private title and ownership in minerals, or the “old order rights,” are to be converted to “new order
rights,” essentially the right to mine. The MPRDA allows the existing holders of mineral rights a period of five years to apply for
the conversion of used old order rights, and one year for the conversion of unused old order rights. Once these periods have
lapsed, the holders may have to compete to acquire the right to mine minerals previously held under old order rights. We have
submitted the respective applications in order to comply with the requirements of the Mining Charter as described below. To the
extent that we are unable to convert some of the company’s old order rights, we may have a claim for compensation based on
expropriation. It is not possible to forecast with any degree of certainty whether a claim will be enforceable against the State, and
if enforceable, the level of compensation we will receive, if any. Factors that are taken into account include market value, proof of
actual loss, proof of ownership, nature of property, current use of the property and history of the acquisition.

Where new order rights are obtained under the MPRDA, these rights will not be equivalent to the company’s existing property
rights. The area covered by the new order rights may be reduced by the State if it finds that the prospecting or mining work
program submitted by an applicant does not substantiate the need to retain the area covered by the old order rights. The duration
of the new order rights will no longer be perpetual but rather, in the case of new order mining rights, for a maximum of 30 years
with renewals of up to 30 years each and, in the case of prospecting rights, up to five years with one renewal of up to three years.
In addition, the new order rights will only be transferable subject to the approval of the Minister of Mineral Resources (formerly
Minister of Minerals and Energy). Mining or prospecting must commence within one year or 120 days, respectively, of the
mining right or prospecting right becoming effective, and must be conducted continuously and actively thereafter. The new rights
can be suspended or cancelled by the Minister of Mineral Resources in the event of a breach or, in the case of mining rights, non-
optimal mining in accordance with the mining work program.

The implementation of the MPRDA will result in significant adjustments to the company’s property ownership structure. We
have lodged applications to convert all of the company’s old order rights, however, to the extent that we are unable to convert
some of the company’s old order rights to new order rights, and that the exclusive rights to minerals we enjoyed under the
previous statutory regime are diminished, the operations of the MPRDA may result in significant adjustments to the company’s
property ownership structure, which in turn could have a material adverse effect on the underlying value of the company’s
operations. As at September 30, 2010 West Witwatersrand Gold Mine (Pty) Limited and West Witwatersrand Consolidated
Mines’ application for conversion has been approved. Some of ERPM’s applications for conversion has received preliminary
approval but are still awaiting dated of execution from the DMR. The MPRDA states that the conversions must be granted by the
minister if all requirements are completed but it does not stipulate any time frame. The MPRDA also provides for holders of old
order rights to continue to operate under the terms and conditions of such rights until conversions under the MPRDA have been
completed.

Merafong Local Council
According to legislation Merafong City Council has been appointed by Rand Water as the Water Services Authority in the area.
The Council is charging water at a premium of 53% for domestic water consumption. This premium over the rate that was
previously charged by Rand Water does not compel them to take over current water reticulation maintenance and monitoring. It is
the opinion of the company’s legal advisors that the amount levied is excessive and unjustifiable because there is no value that
can be enforced, until an agreement has been signed regarding the rate and the entity that will maintain the infrastructure between
Blyvoor and Merafong City Council. The potential liability could amount to R31.1 million. The case between Blyvoor and the
Merafong City Council was down for hearing by the High Court on September 20 and 21, 2010, however the court postponed it
further without specifying a date.

Litigation
The group is subject to litigation in the normal course of business.

F-48

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

24. FINANCIAL INSTRUMENTS

Credit risk
Credit risk is the risk of financial loss to the group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the group’s receivables from customers and investment securities.

The group's financial instruments do not represent a concentration of credit risk, because the group deals with a variety of major
banks and financial institutions located in South Africa after evaluating the credit ratings of the representative financial
institutions. Furthermore, its trade receivables and loans are regularly monitored and assessed for recoverability. Where it is
appropriate, an impairment loss is raised.

In addition, the group's operations all deliver their gold to Rand Refinery Limited (Rand Refinery), which refines the gold to
saleable purity levels and then sells the gold, on behalf of the South African operations, on the bullion market. The gold is usually
sold by Rand Refinery on the same day as it is delivered and settlement is made within two days.

F-49

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

24. FINANCIAL INSTRUMENTS (continued)

The following represents the maximum exposure to credit risk for all financial assets at June 30:

Carrying

value

2010

2009

R'000

R'000

Financial assets

Unlisted investments (refer note 11)

14,712

9,556

Loans to black empowerment entities (refer note 11)

33,442

33,442

Investments in environmental rehabilitation trust funds (refer
note 11)

126,069

129,682

Trade and other receivables (refer note 16)

41,493

60,080

Cash and cash equivalents

188,152

353,555

403,868

586,315

The following represents the maximum exposure to credit
risk for trade and other receivables at June 30:

Carrying

value

2010

2009

R'000

R'000

Trade receivables (refer note 16)

12,430

30,966

Receivables from related parties (refer note 16)

Other receivables (refer note 16)

29,003

29,028

41,493

60,080

The ageing of trade and other receivables at June 30:

Gross Impair- Gross Impair-

value ment

2010 2010

2009 2009

R'000 R'000

R'000 R'000

Not past due

28,562 (315)

48,868 (105)

Past due 0-30 days

3,385 (345)

4,202 (75)

Past due 31-120 days

2,594 (1,490)

6,067 (260)

More than 120 days

19,834 (10,732)

9,257 (7,874)

54,375 (12,882)

68,394 (8,314)

Impairments were raised due to the uncertainty of the timing of the cash flows.

Movement in the allowance for impairment in respect of trade and other receivables during the year was as follows:

Impairment

2010

2009

R'000

Balance at July 1

(8,314)

(8,201)

Impairment recognized

(4,568)

(113)

Balance at June 30

(12,882)

(8,314)

The group has no significant credit risk as the majority of the group’s receivables are from customers with good track records.

F-50

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

24. FINANCIAL INSTRUMENTS (continued)

Interest rate and liquidity risk

Liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due. The group’s approach to
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due,
under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the group’s reputation.

The group ensures that it has sufficient cash on demand to meet expected operational expenses, including the servicing of
financial obligations. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as
natural disasters.

Fluctuations in interest rates impact on the value of short-term cash investments and financing activities, giving rise to interest
rate risks. In the ordinary course of business, the group receives cash from its operations and is obliged to fund working capital
and capital expenditure requirements. This cash is managed to ensure surplus funds are invested in a manner to achieve maximum
returns while minimizing risks. Funding deficits for the group's mining operations have been financed through the issue of
additional shares and external borrowings. Lower interest rates result in lower returns on investments and deposits and may also
have the effect of making it less expensive to borrow funds at then current rates. Conversely, higher interest rates result in higher
interest payments on loans and overdrafts.

Unless otherwise stated, the following are the contractual maturities of financial liabilities, including estimated interest payments
and excluding the impact of netting agreements:

Carrying Contractual 6 months

6-12

More than

amount cash flows

less

months 2-5 years

5 years

R’000 R’000

R’000

R’000 R’000

R’000

June 30, 2010

Unsecured

Preference shares held by Khumo

Gold SPV (Pty) Limited and the

DRDSA Empowerment Trust (expected
repayments)

58,977 (197,803)

- (34,722)

(163,081)

Trade and other payables

268,833 (268,833) (268,833)

327,810 (466,636) (268,833)

(34,722)

(163,081)

June 30, 2009

Secured

AngloGold Ashanti Limited

2,101

(2,373)

Unsecured

Preference shares held by Khumo

Gold SPV (Pty) Limited and the

DRDSA Empowerment Trust (expected
repayments) 65,146

(197,803)

(109,015)

(88,788)

Trade and other payables

322,138

(322,138) (322,138)

Bank overdraft

824

(824)

390,209

(523,138) (325,335)

(109,015)

(88,788)

F-51

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

24. FINANCIAL INSTRUMENTS (continued)

The following represents the interest rate risk profile for the group's interest-bearing financial instruments:

Carrying

amount

2010

2009

R’000

R’000

Variable interest rate instruments

Financial assets

314,221

483,237

Financial liabilities

(2,925)

314,221

480,312

Cash flow sensitivity analysis for variable rate instruments:
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) profit or loss by the amounts
shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is
performed on the same basis for 2009.

2010 2009

Profit or (loss)

100 bp

100 bp

increase

decrease

increase decrease

June 30

R’000

R’000 R’000

Variable interest rate instruments

3,142

(3,142)

4,803 (4,803)

Cash flow sensitivity

3,142

(3,142)

4,803 (4,803)

Fair value of financial instruments
The following table represents the carrying amounts and fair values of the group's financial instruments at June 30:

Carrying

Fair

Carrying

Fair

value

2010

2009

R’000

R’000

Financial assets

Unlisted investments (refer note 11)

14,712

9,556

Loans to black empowerment entities (refer note 11)

33,442

33,442

Investments in environmental rehabilitation trust funds
(refer note 11)

126,069

129,682

Trade and other receivables (refer note 16)

41,493

60,080

Cash and cash equivalents

188,152

353,555

403,868

586,315

Financial liabilities

Loans and borrowings (refer note 22)
– long-term

58,977

55,953

65,146

62,168

– short-term

2,101

Trade and other payables

268,833

322,138

Bank overdrafts

824

327,810

324,786

390,209

387,231

F-52

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

24. FINANCIAL INSTRUMENTS (continued)

The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged between
knowledgeable, willing parties in an arm's length transaction.

Fair values

Trade and other receivables
The fair value approximates the carrying value due to their short-term maturities.

Loans to black empowerment entities
The fair value of these loans cannot be reliably estimated due to the unavailability of market information.

Preference shares held by Khumo Gold SPV (Pty) Limited and the DRDSA Empowerment Trust
Preference shares are measured at amortized cost based on expected future discounted cash flows. The original risk adjusted
discount rate of 13% is used when estimating the possible future liability and are re-measured on an annual basis. This original
risk adjusted discount rate is replaced with a risk adjusted market rate to determine a fair value on an annual basis.

Loans from AngloGold Ashanti Limited
Loans from AngloGold Ashanti Limited are measured at amortized cost using the market interest rate. The loans bore interest at
the prime lending rate.

Cash and cash equivalents and environmental trust funds
The carrying value of cash and cash equivalents approximates their fair value because of the short-term maturity of these deposits.
The carrying value of the environmental trust funds approximates its fair value due to these investments being cash in nature.

Trade and other payables
The fair value approximates the carrying value due to their short-term maturities.

Unlisted investments
The valuations are based on the net asset values of these investments which approximates the investments’ fair value.

Foreign currency risk

The group’s reporting currency is the South African Rand. Although gold is sold in US Dollars, the company is obliged to convert
this into South African Rand. The company is thus exposed to fluctuations in the US Dollar/South African Rand exchange rate.
The company conducted its operations in South Africa during the current year. Foreign exchange fluctuations affect the cash flow
that it will realize from its operations as gold is sold in US Dollars, while production costs are incurred primarily in South African
Rands. The company's results are positively affected when the US Dollar strengthens against the Rand and adversely affected
when the US Dollar weakens against the Rand. The company's cash and cash equivalent balances are held in US Dollars,
Australian Dollars and South African Rands; holdings denominated in other currencies are relatively insignificant. The group
does not hedge against foreign currency fluctuations and considers the risk to be low due to foreign currency normally being
disposed of on the same day.

F-53

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

24. FINANCIAL INSTRUMENTS (continued)

The following represents the exposure to foreign currency risks:

USD AUD

USD

AUD

2010 2010

2009

’000 ’000

’000

Cash and cash equivalents

- -

1,373

Trade and other receivables

1,624 -

3,929

Trade and other payables

- -

(8)

(137)

Net statement of financial position exposure

1,624 -

3,924

1,236

The following significant exchange rates applied during the year:

Spot rate at year-end

Average rate

2010

2009

2010

2009

1 US Dollar

7.6529

7.8821

7.6117

9.0484

1 Australian Dollar

6.5559

6.3433

6.7076

6.6725

Sensitivity analysis

A 10% strengthening of the Rand against the currencies mentioned at June 30, would have increased (decreased) equity and profit
or (loss) by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.
The analysis is performed on the same basis for 2009.

USD

AUD

USD

AUD

2010

2009

R’000

Equity

(784)

Loss

(1,243)

(3,097)

A 10% weakening of the Rand against the above currencies at June 30, would have had the equal but opposite effect on the above
currencies to the amounts shown above, on the basis that all other variables remain constant.

F-54

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

24. FINANCIAL INSTRUMENTS (continued)

The following table represents the carrying amounts and net gain/(loss), finance income and finance expense per category of
financial instruments at June 30:

Net gain/(loss),

finance income

Net gain/(loss),

finance income

Carrying

value

and (finance

expense)

Carrying

value

and (finance

expense)

2010

2009

R'000

Financial assets
Available-for-sale financial assets

14,712

9,556

Loans and receivables

389,156

22,519

576,759

84,424

403,868

22,519

586,315

84,424

Financial liabilities
Financial liabilities measured at amortized cost

327,810

6,175

390,209

43,977

327,810

6,175

390,209

43,977

Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined
as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: inputs other than quoted prices included within Level 1 that are observed for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices);

Level 3: inputs for the asset of liability that are not based on observed market data (unobserved inputs).

Level 1

Level 2

Level 3

Total

R'000

June 30, 2010
Available-for-sale financial assets

14,712

June 30, 2009
Available-for-sale financial assets

9,556

There have been no transfers in either direction between the different levels (2009: no transfers in either direction).

Reconciliation of fair value measurements in Level 3 during the year:

2010

2009

Level 3

R'000

Available-for-sale financial assets
Balance at beginning of year

9,556

10,688

Purchases during the year

Disposals/settlements during the year

(1)

Profit/(loss) on fair value adjustment

5,154

(1,131)

Transfer in/(out) Level 3

Balance at end of year

14,712

9,556

Gains/(losses) recognized in profit or loss

Gains/(losses) recognized in other comprehensive
income

5,154

(1,133)

5,154

(1,133)

The gain or losses on the fair value adjustment is recognized in other comprehensive income net of deferred tax.

F-55

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

24. FINANCIAL INSTRUMENTS (continued)

Fair value hierarchy (continued)

The available-for-sale financial assets comprises investments in unlisted shares for which no reasonable alternative measure for
fair value is deemed appropriate therefore no sensitivity analysis have been prepared. The fair value of the Rand Refinery
Limited's unlisted shares is a director's valuation, which was made by using the net asset value of the company. The increase in
the fair value in 2010 was due to Rand Refinery Limited not declaring a dividend for their 2009 financial year. The Rand Mutual
Assurance Company's fair value is also based on a directors' valuation of which the value per share is fixed at R0.20 between
shareholders.

25. CAPITAL MANAGEMENT

The primary objective of the board in managing the group's capital is to ensure that there is sufficient capital available to support
the funding requirements of the group, including capital expenditure, in a way that optimizes the cost of capital, maximizes
shareholders' returns, and ensures that the group remains in a sound financial position. There were no changes to the group's
overall capital management approach during the current year. The group manages and makes adjustments to the capital structure
as opportunities arise in the market place, as and when borrowings mature, or as and when funding is required. This may take the
form of raising equity, market or bank debt or hybrids thereof.

The Board of Directors monitors the return on capital, which the group defines as net operating income divided by total
shareholders' equity, excluding non-redeemable preference shares and non-controlling interest from continued operations, and
seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages
and security afforded by a sound capital position. The Board of Directors also monitors the level of dividends to ordinary
shareholders.

26. OPERATING SEGMENTS

During the year the group changed its operating segments by reporting the financial and operating results of the surface
operations of ERPM under Crown. The processing of the Cason dump, which is owned by ERPM, takes place at Crown's Knights
plant. The financial and operating results of the Ergo JV has been combined with ErgoGold and the Ergo JV is now called Ergo
due to the group acquiring the remaining 50% interest from Mintails SA (Pty) Limited during the year ending June 30, 2010 of
the Ergo JV. The underground operations of ERPM, which had been placed under care and maintenance during the year ended
June 30, 2009, is included in the ‘Corporate head office and all other’ segment. The financial and operating results of our foreign
subsidiaries, which were voluntarily liquidated during the year ended June 30, 2010 (refer note 12) is also included in this
segment. The comparative numbers have been restated to reflect these changes and the effect thereof is clear from the disclosures.
Transactions between reportable segments are at arm’s length in accordance with the group’s transfer pricing agreement.

The following summary describes the operations in each of the group’s reportable business segments:

- Blyvoor: Incorporates the Doornfontein mine, situated on the north-western edge of the Witwatersrand Basin. The mine has

underground and surface operations.

- Crown: Is a surface retreatment operation and treats old slime and sand dumps to the south of Johannesburg's CBD. The

facility consists of three plants known as Crown, City Deep and Knights. Included in the Crown segment is the surface
operation of ERPM consisting of the Cason dump.

- Ergo: Ergo consists of Phase one of the Ergo Project known as ErgoGold (formerly known as the Elsburg Gold Mining Joint

Venture) and is a surface retreatment operation which is currently treating ERPM's old slime dumps. The facility consists of
one plant known as the Brakpan plant together with the Brakpan tailings facility. Phase one has been established as a surface
retreatment operation to retreat the Elsburg Dump owned by ERPM. Phase two of the Ergo Project is to explore, evaluate and
process surface gold-, uranium- and sulphur bearing tailings on the East and Central Rand goldfields of South Africa.

F-56

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

26. OPERATING SEGMENTS (continued)

2010

Blyvoor

R’000

Crown(2)

R’000

Ergo(3)

R’000

Corporate

Headoffice (4)

and all other

R’000

Total

R’000

Financial performance

Segmental revenue

861,409

834,788

294,325

- 1,990,522

Operating costs

(888,180)

(615,731)

(258,971)

(35,984) (1,798,866)

Operating profit/(loss)

(26,771)

219,057

35,354

(35,984)

191,656

Interest and other investment income

412

901

814

15,802 17,929

Interest expense

(1,064)

(66)

(2)

(3,730)

(4,862)

Retrenchment costs

(10,925)

(9,202)

(20,127)

Administration expenses and general costs

12,007

(2,136)

(6,169)

(60,728) (57,026)

Taxation charge (1)

(7,509)

(2,799)

(10,308)

Working profit/(loss) before capital expenditure

(26,341)

210,247

29,997

(96,641)

117,262

Capital expenditure

(79,552)

(45,949)

(68,584)

(6,320) (200,405)

Working profit/(loss) after capital expenditure

(105,893)

164,298

(38,587)

(102,961)

(83,143)

(1) The taxation charge excludes deferred tax.

(2) Crown includes ERPM’s Cason surface retreatment operations.

(3) With effect from May 1, 2010, Ergo represents 100% of ErgoGold and the Ergo JV.

(4) Corporate head office expenses are taken into consideration in the strategic decision-making process of the CODM and are therefore included in the disclosure here, even though they do not earn revenue.

Operating results (5)

Ore milled

underground

t’000 633

633

- surface

t’000 2,968

7,122

11,867

- 21,957

- total

t’000 3,601

7,122

11,867

- 22,590

Average yield

- underground

g/t 3.79

3.79

- surface

g/t 0.31

0.43

0.09

0.23

- total

g/t 0.92

0.43

0.09

0.33

Gold

dispatched - underground

kg 2,402

2,402

surface

kg 909

3,092

1,099

- 5,100

total

kg 3,311

3,092

1,099

7,502

underground

oz 77,226

77,226

surface

oz 29,226

99,410

35,332

- 163,968

total

oz 106,452

99,410

35,332

241,194

Operating cost -

underground

R/kg 324,736

324,736

surface

R/kg 108,771

199,137

235,642

189,959

total

R/kg 268,251

199,137

235,642

239,785

underground

$/oz 1,327

1,327

surface

$/oz 444

814

963

776

total

$/oz 1,096

814

963

953

(5) Unaudited

F-57

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

26. OPERATING SEGMENTS (continued)

2010

Blyvoor

R’000

Crown(1)

R’000

Ergo(2)

R’000

Corporate

Headoffice(3)

and all other

R’000

Total

R’000

Reconciliation of assets

Reportable segment assets

510,883

171,390

1,144,036

31,337 1,857,646

Other assets

120,838

136,396

96,508

368,904 722,646

Total assets

631,721

307,786

1,240,544

400,241 2,580,292

Reconciliation of liabilities

Reportable segment liabilities

144,160

276,881

207,542

133,195 761,778

Taxation and deferred taxation

168,138

414

168,552

Total liabilities

144,160

276,881

375,680

133,609 930,330

Other material information

Depreciation

(32,616)

(61,005)

(95,418)

(1,730) (190,769)

Impairment of assets

12,514

(18,738)

(6,224)

Reconciliation of revenues

Total revenues for reportable segments

861,409

834,788

294,325

- 1,990,522

Reconciliation of profit/(loss)

Segment working profit/(loss) before capital expenditure

(26,341)

210,247

29,997

(96,641) 117,262

- Depreciation

(32,616)

(61,005)

(95,418)

(1,730) (190,769)

- Movement in provision for environmental rehabilitation

(1,246)

16,994

(578)

72,864 88,034

- Movement in gold in progress

33,766

(9,040)

5,215

- 29,941

- Impairments and reversal of impairments

12,514

(18,738)

(6,224)

- Net gain on financial liabilities measured at amortized cost

33,887

(19,244) 14,643

- Growth in environmental rehabilitation trust funds

2,011

3,384

4,057 9,452

- Profit on disposal of subsidiaries

156,749

- Profit on disposal of joint venture

1,500

- Realized foreign exchange loss

(5)

- Unwinding of provision for environmental rehabilitation

(1,139)

(5,050)

(2,573)

(2,035) (10,797)

- Unwinding of discount on financial liabilities measured at amortized cost

(7,039)

(1,429) (8,468)

- Deferred tax

14,934

(33,108)

14,012

6,207 2,045

Profit/(loss) for the year

16,217

134,936

(49,345)

101,555 203,363

(1) Crown includes ERPM’s Cason surface retreatment operations.
(2) With effect from May 1, 2010, Ergo represents 100% of ErgoGold and the Ergo JV.
(3) Corporate head office expenses are taken into consideration in the strategic decision-making process of the CODM and are therefore included in the disclosure here, even though they do not earn revenue.

F-58

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

26. OPERATING SEGMENTS (continued)

2010

Revenues

Non-

current

assets

R’000 R’000

Geographical Information

South Africa

1,990,522 1,858,005

Zimbabwe

- 5,220

Total

1,990,522 1,863,225

Information about major customers

The group has only one major customer regarding the sale of gold ore in each geographical area due to regulatory authority.

F-59

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

26. OPERATING SEGMENTS (continued)

2009

Blyvoor

R’000

Crown(2)

R’000

Ergo(3)

R’000

Corporate

Headoffice (4)

and all other

R’000

Total

R’000

Financial performance

Segmental revenue

1,018,527

733,990

24,178

134,043

1,910,738

Operating costs

(842,329)

(560,064)

(73,422)

(211,544) (1,687,359)

Operating profit/(loss)

176,198

173,926

(49,244)

(77,501)

223,379

Interest and other investment income

3,185

2,347

74,454 79,991

Interest expense

(521)

(5)

(1)

(3,078) (3,605)

Retrenchment costs

(34,922)

Administration expenses and general costs

(1,719)

(4,980)

(2,810)

(74,074) (83,583)

Taxation charge (1)

(41,529)

(4,660)

(46,189)

Working profit/(loss) before capital expenditure

177,143

129,759

(52,050)

(119,781)

135,071

Capital expenditure

(97,537)

(43,115)

(174,154)

(31,862) (346,668)

Working profit/(loss) after capital expenditure

79,606

86,644

(226,204)

(151,643) (211,597)

(1) The taxation charge excludes deferred tax.

(2) Crown includes ERPM’s Cason surface retreatment operations.

(3) Includes 50% of the Ergo JV and with effect from April 1, 2009 100% of ErgoGold.

The underground operations of ERPM, which were placed under care and maintenance during the year ended June 30, 2009, are also included in this segment.

Operating results (5)

Ore milled

underground

t’000 603

184

787

- surface

t’000 3,433

8,007

2,296

- 13,736

- total

t’000 4,036

8,007

2,296

184 14,523

Average yield

- underground

g/t 4.59

3.20

4.26

- surface

g/t 0.37

0.37

0.05

0.32

- total

g/t 1.00

0.37

0.05

3.20

0.53

Gold

dispatched - underground

kg 2,765

589

3,354

surface

kg 1,262

2,974

114

4,350

total

kg 4,027

2,974

114

589

7,704

underground

oz 88,898

18,935 107,833

surface

oz 40,575

95,616

3,666

- 139,857

total

oz 129,473

95,616

3,666

18,935

247,690

Operating cost - underground

R/kg 255,517

361,141

274,066

surface

R/kg 98,124

188,320

644,053

- 164,549

total

R/kg 209,170

188,320

644,053

361,141

219,024

underground

$/oz 878

1,287

842

surface

$/oz 337

647

2,077

566

total

$/oz 719

647

2,077

1,287

753

(5) Unaudited

F-60

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

26. OPERATING SEGMENTS (continued)

2009

Blyvoor

R’000

Crown(1)

R’000

Ergo(2)

R’000

Corporate

Headoffice(3)

and all other

R’000

Total

R’000

Reconciliation of assets

Reportable segment assets

463,947

150,947

1,039,667

78,658 1,733,219

Other assets

96,536

183,235

95,275

517,507 892,553

Total assets

560,483

334,182

1,134,942

596,165 2,625,772

Reconciliation of liabilities

Reportable segment liabilities

182,783

297,498

150,546

215,475

846,302

Taxation and deferred taxation

12,403

650

182,150

288 195,491

Total liabilities

195,186

298,148

332,696

215,763 1,041,793

Other material information

Depreciation

(29,273)

(38,112)

(30,784)

(1,048)

(99,217)

Impairment of assets

(19,426)

(55,712)

(75,138)

Reconciliation of revenues

Total revenues for reportable segments

1,018,527

733,990

24,178

134,043

1,910,738

Reconciliation of profit/(loss)

Segment working profit/(loss) before capital expenditure

177,143

129,759

(52,050)

(119,781)

135,071

- Depreciation

(29,273)

(38,112)

(30,784)

(1,048)

(99,217)

- Movement in provision for environmental rehabilitation

426

(11,002)

2,825

(11,794)

(19,545)

- Movement in gold in progress

(9,445)

5,231

11,232

7,018

- Impairments and reversal of impairments

(19,426)

(55,712)

(75,138)

- Recognition of negative goodwill on acquisition

53,006

- Net gain/(loss) on financial liabilities measured at amortized cost

36,141

(1,403)

27,262

62,000

- Loss on realization of investments

(1,873)

- Growth in environmental rehabilitation trust funds

2,929

4,441

5,497 12,867

- Unrealized foreign exchange loss

(10,318)

- Unwinding of provision for environmental rehabilitation

(1,119)

(4,137)

(2,365)

(2,176)

(9,797)

- Unwinding of discount on financial liabilities measured at amortized cost

(10,388)

(3,237)

(4,398)

(18,023)

- Deferred tax

(43,154)

25,594

3,491

88,702

74,633

Profit/(loss) after taxation

123,260

87,708

(67,651)

(32,633)

110,684

(1) Crown includes ERPM’s Cason surface retreatment operations.
(2) Includes 50% of the Ergo JV and with effect from April 1, 2009 100% of ErgoGold.
(3) Corporate head office expenses are taken into consideration in the strategic decision-making process of the CODM and are therefore included in the disclosure here, even though they do not earn revenue. The underground

operations of ERPM, which were placed under care and maintenance during the year ended June 30, 2009, are also included in this segment.

F-61

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

26. OPERATING SEGMENTS (continued)

2009

Revenues

Non-

current

assets

R’000 R’000

Geographical Information

South Africa

1,910,738 1,737,457

Total

1,910,738 1,737,457

Information about major customers

The group has only one major customer regarding the sale of gold ore in each geographical area due to regulatory authority.

F-62

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

26. OPERATING SEGMENTS (continued)

2008

Blyvoor

R’000

Crown(2)

R’000

Ergo(3)

R’000

Corporate

Headoffice (4)

and all other

R’000

Total

R’000

Financial performance

Segmental revenue

848,230

661,827

423,090 1,933,147

Operating costs

(697,281)

(459,703)

(470,468) (1,627,452)

Operating profit/(loss)

150,949

202,124

(47,378)

305,695

Interest and other investment income

3,296

1,081

70,147 74,524

Interest expense

(498)

(9)

(35,022) (35,529)

Retrenchment costs

(11,344)

Administration expenses and general costs

(3,005)

2,034

(41)

(98,511) (99,523)

Taxation charge (1)

(13,272)

(32,678)

(45,950)

Working profit/(loss) before capital expenditure

150,742

191,958

(41)

(154,786)

187,873

Capital expenditure

(74,847)

(42,077)

(176,785)

(77,680) (371,389)

Working profit/(loss) after capital expenditure

75,895

149,881

(176,826)

(232,466) (183,516)

(1) The taxation charge excludes deferred tax.

(2) Crown includes ERPM’s Cason surface retreatment operations.

(3) Ergo consists of 50% of ErgoGold and the Ergo JV.

The underground operations of ERPM, which were placed under care and maintenance during the year ended June 30, 2009, as well as the remaining offshore operations which have been disposed of during
the year ended June 30, 2008 are also included in this segment.

Operating results (5)

Ore milled

underground

t’000 687

359 1,046

- surface

t’000 3,719

10,094

- 13,813

- total

t’000 4,406

10,094

359 14,859

Average yield

- underground

g/t 4,70

6.08

5,17

- surface

g/t 0.31

0.34

0.33

- total

g/t 1.00

0.34

6.08

0.67

Gold

dispatched - underground

kg 3,229

2,184

5,413

surface

kg 1,162

3,422

4,584

total

kg 4,391

3,422

2,184

9,997

underground

oz 103,813

70,239

174,052

surface

oz 37,359

110,021

- 147,380

total

oz 141,172

110,021

70,239

321,432

Operating cost - underground

R/kg 181,518

200,627

190,967

surface

R/kg 90,971

134,338

- 121,321

total

R/kg 158,798

134,338

200,627

162,794

underground

$/oz 772

916

810

surface

$/oz 387

571

516

total

$/oz 675

571

916

692

(5) Unaudited

F-63

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

26. OPERATING SEGMENTS (continued)

2008

Blyvoor

R’000

Crown(1)

R’000

Ergo (2)

R’000

Corporate

Headoffice(3)

and all other

R’000

Total

R’000

Reconciliation of assets

Reportable segment assets

396,060

190,940

179,399

46,476

812,875

Other assets

131,598

180,736

41,657

1,095,629 1,449,620

Total assets

527,658

371,676

221,056

1,142,105 2,262,495

Reconciliation of liabilities
Reportable segment liabilities

218,984

330,393

136,083

269,803

955,263

Taxation and deferred taxation

1,771

Total liabilities

218,984

332,164

136,083

269,803

957,034

Other material information
Depreciation

(22,671)

(24,273)

(22,987)

(69,931)

Impairment of assets

(110,633)

Reconciliation of Revenues

Total revenues for reportable segments

848,230

661,827

423,090 1,933,147

Continuing operations

848,230

661,827

333,855 1,843,912

Discontinued operations

89,235

Groups revenue

848,230

661,827

423,090 1,933,147

Reconciliation of profit/(loss)

Segment working profit/(loss) before capital expenditure

150,742

191,958

(41)

(154,786)

187,873

- Depreciation

(22,671)

(24,273)

(22,987)

(69,931)

- Movement in provision for environmental rehabilitation

(958)

(20,334)

(12,898) (34,190)

- Movement in gold in progress

14,373

1,354

(10,543)

5,184

- Loss on derivative financial instruments

(433)

- Impairments and reversal of impairments

(110,633)

- Net gain/(loss) on financial liabilities measured at amortized cost

(64,644)

(22,169)

3,092

(83,721)

- Profit on realization of investments

12,005

- Growth in environmental rehabilitation trust funds

2,586

1,449

4,451

8,486

- Unrealized foreign exchange loss

(37,314)

- Unwinding of provision for environmental rehabilitation

(49)

(3,174)

(1,512) (4,735)

- Unwinding of discount on financial liabilities measured at amortized cost

(1,757)

(574)

(4,063)

(6,394)

- Deferred tax

30,752

18,299

140,598 189,661

Profit/(loss) after taxation

108,374

142,536

(29)

(195,023)

55,858

(1)

Crown includes ERPM’s Cason surface retreatment operations.

(2)

Ergo consists of 50% of ErgoGold and the Ergo JV

(3)

Corporate head office expenses are taken into consideration in the strategic decision-making process of the CODM and are therefore included in the disclosure here, even though they do not earn revenue. The underground operations
of ERPM, which were places under care and maintenance during the year ended June 30, 2009, as well as the remaining offshore operations disposed during the year ended June 30, 2008 are also included in this segment.

F-64

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

26. OPERATING SEGMENTS (continued)

2008

Revenues

Non-

current

assets

R’000 R’000

Geographical Information

South Africa

1,843,912 812,875

Australia

89,235 -

Total

1,933,147 812,875

Information about major customers

The group has only one major customer regarding the sale of gold ore in each geographical area which is due to regulatory authority.

F-65

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

27. RELATED PARTY TRANSACTIONS

The group has related party relationships with its associates, subsidiaries, and with its directors and key management personnel.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the company, directly or indirectly, including any director (whether executive or otherwise) of the company. For the
year ended June 30, 2010, long-service awards consist of share-based payment expense amounting to R0.4 million (2009: R0.8
million and 2008: R0.7 million) as well as a post-retirement medical benefit liability of Rnil (2009: Rnil and 2008: Rnil). Total
directors’ remuneration (short-term benefits) amounted to R13.8 million (2009: R16.4 million and 2008: R12.0 million) which
includes no end-of-contract payments (2009: R1.4 million and 2008: Rnil) and key management personnel remuneration (short-
term benefits) to R58.8 million (2009: R58.6 million and 2008: R61.0 million). For key management, long-service awards consist
of share-based payment expense amounting to R3.7 million (2009: R7.0 million and 2008: R5.9 million) as well as a post-
retirement medical benefit liability of R12.5 million (2009: R6.8 million and 2008: R6.8 million).

Prior to the awarding of a contract to a related party for the supply of goods and services the group procurement manager reviews
both the pricing, quality and the reliability of that party. The contract terms are compared to similar suppliers of goods and
services to ensure that the contract is on market related terms.

The company’s executive directors review the terms and conditions of all loans to ensure that the terms of the loans are similar to
those offered by financial institutions.

Transactions with associates, joint ventures and subsidiary companies
During the year ended June 30, 2010, the company earned management fees from DRDGOLD South African Operations (Pty)
Ltd (DRDGOLD SA) amounting to R34.6 million (2009: R15.6 million and 2008: R17.5 million and from DRD (Offshore)
Limited R5.9 million). Transactions with associates are priced on an arm’s length basis.

Subsidiaries

The following information relates to the group’s financial interest in its subsidiaries at June 30, 2010:

ISSUED ORDINARY SHARE

CAPITAL

NUMBER OF

SHARES

% HELD

SHARES AT COST

LESS

IMPAIRMENTS

R’000

EFFECTIVE

DATE OF

ACQUISITION

INDEBTEDNESS

NET OF

IMPAIRMENTS

R’000

South Africa

Argonaut Financial Services (Pty) Limited

100

Oct 1, 1997

(1,055)

Crown Consolidated Gold Recoveries Limited

51,300,000

100

Sep 14, 1998

(245,316)

DRDGOLD South African Operations (Pty) Limited

1,000,000

113,177

Nov 14 , 2005

1,352,200

Rand Leases (Vogelstruisfontein) Gold Mining

Company Limited

118,505,000

100

Jan 1, 1996

(42,092)

Roodepoort Gold Mine (Pty) Limited

100

Jan 1, 1996

West Witwatersrand Gold Holdings Limited

99,000,000

100

Apr 1, 1996

(22,996)

Guardrisk Insurance Company Limited

100

Jul 1, 2008

ErgoGold (1)

52,551

Mar 31, 2009

205,362

Total

165,828

1,246,103

DRDGOLD South African Operations (Pty) Limited holds the following investments: 100% of Blyvooruitzicht Gold Mining Company Limited, 100% of East

Rand Proprietary Mines Limited, 100% of Crown Gold Recoveries (Pty) Limited and 100% of Ergo Mining (Pty) Limited (Ergo JV) and 65% of the ErgoGold
(formerly Elsburg Gold Mining Joint Venture) (unincorporated).

F-66

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

27. RELATED PARTY TRANSACTIONS (continued)

Joint Ventures

The joint ventures for which the statement of comprehensive income and statement of financial position have been
proportionately consolidated are disclosed in note 13.

Rand Refinery agreement
The group has entered into an agreement with Rand Refinery Limited (Rand Refinery), for the refining and sale of all of its gold
produced in South Africa. Under the agreement, Rand Refinery performs the final refining of the group’s gold and casts it into
troy ounce bars. Rand Refinery then usually sells the gold on the same day as delivery for the London afternoon fixed price on
the day the gold is sold. In exchange for this service, the group pays Rand Refinery a variable refining fee plus fixed marketing,
loan and administration fees. Mr Pretorius, CEO of DRDGOLD, is also an alternate director of Rand Refinery and is a member
of their Audit Committee. The group currently owns 4.0% of Rand Refinery (which is jointly owned by South African mining
companies). Trade receivables to the amount of R12.4 million (2009: R31.0 million) relate to metals sold. The group received a
dividend of Rnil (2009: R4.1 million) from Rand Refinery.

Consultancy agreement
On June 23, 2008 DRDGOLD SA approved a consultancy agreement with Khumo Gold, which owns 20% of DRDGOLD SA.
The agreement provides for a monthly retainer of R200,000.

2010

2009

2008

R’000

Shares at cost, less impairment loss

165,828

165,828

1,121,105

Net indebtedness, less impairment loss

1,246,103

1,036,417

(344,781)

Amounts owing by subsidiaries

1,701,478

1,622,795

997,185

Impairments

(143,916)

(275,974)

(233,412)

Amounts owing to subsidiaries

(311,459)

(310,404)

(1,108,554)

Net investment in subsidiaries

1,411,931

1,202,245

776,324

The non-operating entity loans are interest free and the operational
entity loans bear interest at prime minus four. The loans are unsecured
and without any fixed re-payment arrangements.

The interest of the company in the (loss)/profit after taxation

of its subsidiaries is:

Aggregate losses

(84,845)

(163,271)

(84,397)

Aggregate profits

151,004

270,175

255,164

F-67

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

28. CASH GENERATED BY OPERATIONS

2010

2009

2008

R’000

Profit/(loss) before taxation

211,626

82,240

(87,853)

Adjusted for
Depreciation

190,769

99,217

69,931

Movement in provision for environmental rehabilitation

(88,034)

19,545

34,190

Movement in gold in progress

(29,941)

(7,018)

(5,184)

Loss on derivative instruments

433

Impairments

6,224

75,138

110,633

Profit on sale of property, plant and equipment

(13,722)

(10,266)

(10,054)

Share-based payments

4,115

7,873

6,591

Post-retirement and other employee benefits

5,015

2,673

(3,255)

Impairment/(reversal of impairment) on trade receivables

4,568

113

(5,227)

Actuarial (gain)/loss on post-retirement and employee benefits

(35,290)

18,226

Finance income

(200,273)

(205,991)

(95,015)

Finance expenses

24,132

41,743

167,693

Operating cash flows before working capital changes

79,189

123,493

182,883

Working capital changes

(31,453)

41,440

22,234

Change in trade and other receivables

19,650

156,042

(117,271)

Change in inventories

(10,070)

(16,648)

(3,310)

Change in trade and other payables

(41,033)

(97,954)

142,815

Cash generated by operations

47,736

164,933

205,117

F-68

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

29. CASH FLOW ON ACQUISITION/DISPOSAL OF SUBSIDIARIES, NET OF CASH

2010

2009

2008

R’000

Total net cash flow on acquisition/disposal of subsidiaries

Netgold Limited

(21,878)

Emperor Mines Limited

(99,883)

DRDGOLD Limited (Cell No. 170)

(100)

ErgoGold

(277,721)

Ergo Mining (Pty) Limited

(40,396)

(277,821)

(121,761)

Disposal of Netgold Limited

On March 30, 2008 DRDGOLD disposed of its 50.25% shareholding in
NetGold Services Limited (NetGold) and in exchange for its shareholding
in NetGold obtained a 12.3% stake in G.M. Networks Limited
(GoldMoney).

The fair value of the net assets disposed were as follows:

Inventories

21,908

Trade and other receivables

7,283

Cash and cash equivalents

21,878

Trade and other payables

(37,446)

Carrying value at time of disposal

13,623

Total cash consideration

Less: cash and cash equivalents of disposed entity

(21,878)

Cash flow on disposal of subsidiary net of cash disposed

(21,878)

Disposal of Emperor Mines Limited

DRDGOLD disposed of its 78.72% interest in Emperor on October 2007
for a total consideration of R355.8 million.

The fair value of the net assets disposed were as follows:

Property, plant and equipment

13,469

Inventories

32,646

Trade and other receivables

62,522

Cash and cash equivalents

455,709

Provision for environmental rehabilitation

(15,535)

Post-retirement and other employee benefits

(283)

Amounts owing by group companies

Trade and other payables

(138,189)

Taxation payable

(6,160)

Carrying value at time of disposal

404,210

Total cash consideration

355,826

Less: cash and cash equivalents of disposed entity

(455,709)

Cash flow on disposal of subsidiary net of cash disposed

(99,883)

F-69

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

29. CASH FLOW ON ACQUISITION/DISPOSAL OF SUBSIDIARIES, NET OF CASH (continued)

2010

2009

2008

R’000

Acquisition of DRDGOLD Limited (Cell No. 170)

On July 1, 2008, DRDGOLD acquired 100% of a separate class of share in
Guardrisk Insurance Company Limited known as DRDGOLD Limited (Cell
No 170).

Cash flow on acquisition of subsidiary

(100)

Acquisition of ErgoGold (formerly Elsburg Gold Mining Joint Venture)

On March 31, 2009, East Rand Proprietary Mines Limited and DRDGOLD
acquired 15% and 35% respectively, of ErgoGold from Mogale Gold
(Proprietary) Limited.

The fair value of the net assets acquired net of non-controlling interest were as
follows:

Property, plant and equipment

409,118

Inventories

8,236

Trade and other receivables

438

Amounts owing by group companies

13,975

Cash and cash equivalents

768

Deferred tax liability

(85,586)

Trade and other payables

(15,389)

Carrying value at time of acquisition

331,560

Less: Cash and cash equivalents acquired

(833)

Negative goodwill on acquisition

(53,006)

Cash flow on acquisition of subsidiary net of cash acquired

(277,721)

Acquisition of Ergo Mining (Pty) Limited

On April 30, 2010 DRDGOLD acquired the remaining 50% interest in Ergo
Mining (Pty) Limited (Ergo JV) from Ergo Uranium (Pty) Limited for a total
consideration of R82.1 million, R62.1 million settled in cash and the balance in
shares in Witfontein Mining (Pty) Limited. A further R0.3 million transaction
cost has been incurred. DRDGOLD has consolidated 100% of the Ergo JV
from May 1, 2010. Prior to the acquisition, the Ergo JV was accounted for as a
joint venture (refer note 13).

Total cash consideration paid

(62,438)

Add: Cash and cash equivalents of acquired entity

22,042

Cash flow on acquisition of subsidiary, net of cash acquired

(40,396)

F-70

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

30. CASH FLOW ON DISPOSAL/ACQUISITION OF JOINT VENTURES, NET OF CASH

2010

2009

2008

R’000

Disposal of Porgera Joint Venture

On August 17, 2007, Emperor Mines Limited disposed of its 20% interest in
the Porgera Joint Venture.

The fair value of the net assets disposed of were as follows:

Property, plant and equipment

500,698

Inventories

326,167

Trade and other receivables

17,616

Cash and cash equivalents

2,408

Trade and other payables

(48,133)

Provisions

(81,108)

Carrying value at time of disposal

717,648

Total cash consideration

1,939,134

Less: cash and cash equivalents of disposed entity

(2,408)

Cash flow on disposal of joint venture

1,936,726

Acquisition of Witfontein Mining (Pty) Limited

On February 28, 2009, DRDGOLD through its subsidiary Argonaut Financial
Services (Pty) Limited acquired a 50% interest in Witfontein Mining (Pty)
Limited and entered into a joint venture agreement with Mintails SA (Pty)
Limited which owns the remaining 50%.

Cash flow on acquisition of joint venture

(20,000)

Disposal of Witfontein Mining (Pty) Limited

On April 30, 2010 Argonaut Financial Services (Pty) Limited disposed of its
50% in the Witfontein Mining (Pty) Limited joint venture for R20.0 million.
No cash consideration was received as this disposal formed part of the
purchase consideration paid (value of R20.0 million) for the acquisition of the
remaining 50% interest in the Ergo JV.

The carrying value of the net asset disposed of were as follows:

Property, plant and equipment

28,809

Trade and other receivables

Cash and cash equivalents

166

Trade and other payables

(10,522)

Carrying value at time of disposal

18,500

Total cash consideration received

Less: cash and cash equivalents of disposed entity

(166)

Cash flow on disposal of joint venture

(166)

31. CASH FLOW ON ACQUISITION OF ASSOCIATE

Acquisition of West Wits SA (Pty) Limited

In January 2009, DRDGOLD acquired a 28.33% interest in West Wits SA
(Pty) Limited.

Cash flow on investment in associate

(2,700)

F-71

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended June 30, 2010

2010

2009

2008

R’000

32. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash on hand, demand deposits, and
highly liquid investments with an original maturity of three months or less.
Included in cash and cash equivalents are restricted cash in a form of a
guarantee relating to the rehabilitation of the Brakpan tailings dump, given to
AngloGold Ashanti Limited and amounting to R43.0 million (2009: R49.6
million).

Cash and cash equivalents

188,152

353,555

846,114

Bank overdrafts

(824)

(527)

188,152

352,731

845,587

33. CASH FLOWS FROM DISCONTINUED OPERATIONS

Net cash from operating activities

(150,703)

Net cash from investing activities

1,080,541

Net cash from financing activities

(1,046,610)

34. CASH FLOWS RELATING TO EXPLORATION ASSETS

Investing cash flow

57,993

27,401

82,129

35. SUBSEQUENT EVENTS

Non-fulfillment of conditions precedent on disposal of ERPM’s prospecting and mining rights over ERPM Extensions 1
and 2
The transaction was subject to successful conclusion of various conditions precedent, including its approval by White Water
Resources shareholders. As a result of the non-fulfillment of a condition precedent, being the approval of the disposal by the
board of directors of DRDGOLD, the disposal shall no longer proceed.

DRDGOLD raises R108 million for pipeline project

On October 5, 2010 DRDGOLD Limited announced that its 74%-owned subsidiary DRDGOLD South African Operations (Pty)
Limited (“DRDGOLD SA”) has established a R500 million Domestic Medium Term Note Programme ("DMTN Programme")
under which it may from time to time issue notes. DRDGOLD SA has successfully issued R108 million under the DMTN
Programme and the different notes issued mature 12 and 24 months from the date of issue and bear interest at the three month
JIBAR rate plus a margin ranging from 4% to 5% per annum.

The proceeds from this first issue will be applied towards the capital requirements of the Crown/Ergo pipeline project. The new,
50-kilometre pipeline currently under construction and scheduled for completion by August 2011, will link two of Crown’s plants
with Ergo. This will provide Crown with increased tailings deposition capacity – a constraint in recent times – and thus the
potential to extend Crown’s life by bringing to account further surface tailings resources on the western and central
Witwatersrand.

As part of the pipeline project, the Ergo plant’s second carbon in leach (CIL) circuit will be refurbished to increase capacity from
1.2Mtpm to 1.8Mtpm.

121

ITEM 19. EXHIBITS

The following exhibits are filed as a part of this Annual Report:

1.1

(1)

Memorandum of Association of DRDGOLD Limited.

1.2

(7)

Articles of Association of DRDGOLD Limited, as amended on November 8, 2002.

1.3

(1)

Excerpts of relevant provisions of the South African Companies Act.

1.4

(2)

Durban Roodepoort Deep (1996) Share Option Scheme as amended.

2.1

(1)

Excerpts of relevant provisions of the Johannesburg Stock Exchange Listings Requirements.

2.2

(7)

Indenture between DRDGOLD Limited, as Issuer, and The Bank of New York, as Trustee, dated November 12, 2002.

2.3

(7)

Purchase Agreement between DRDGOLD Limited and CIBC World Markets Corp., dated November 4, 2002.

2.4

(7)

Registration Rights Agreement between DRDGOLD Limited and CIBC World Markets Corp., dated
November 12, 2002.

2.5

(7)

DRDGOLD Limited 6% Senior Convertible Note Due 2006 in the amount of $61,500,000 issued pursuant to Rule
144A of the Securities Act of 1933, as amended.

2.6

(7)

DRDGOLD Limited 6% Senior Convertible Note Due 2006 in the amount of $4,500,000 issued pursuant to
Regulation S under the Securities Act of 1933, as amended.

4.1

(1)

Tribute Agreement, dated October 9, 1992, between DRDGOLD Limited and Rand Leases.

4.2

(1)

Service Agreement, dated July 27, 1995, between DRDGOLD Limited and Randgold.

4.3

(1)

Agreement, dated September 28, 1995, among First Westgold Mining (Proprietary) Limited, DRDGOLD Limited and
Rand Leases in respect of purchase of assets of First Westgold by Rand Leases.

4.4

(2)

Pumping Assistance, dated October 14, 1997, for the 1997/1998 fiscal year from the Minister of Mineral and Energy
Affairs – Republic of South Africa to DRDGOLD Limited.

4.5

(3)

Deposit Agreement among DRDGOLD Limited, The Bank of New York as Depositary, and owners and holders of
American Depositary Receipts, dated as of August 12, 1996, as amended and restated as of October 2, 1996, as further
amended and restated as of August 6, 1998, as further amended and restated July 23, 2007.

4.6

(4)

Security Agreement, dated November 5, 1998, between The Chase Manhattan Bank, DRDGOLD Limited, Blyvoor,
Buffels and West Wits.

4.7

(4)

Loan Agreement, dated June 8, 1999, between Industrial Development Corporation of South Africa Limited, Crown
and DRDGOLD Limited.

4.8

(4)

Lender Substitution Deed, dated August 18, 1999, between DRDGOLD Limited, DRD Australasia, NM Rothschild &
Sons (Singapore) Limited, NM Rothschild & Sons (Australia) Limited, as agent in its own capacity, and Rothschild
Nominees (Pty) Limited.

4.9

(4)

A $10m Facility Agreement, dated September 10, 1999, between DRDGOLD Limited, DRD Australasia and NM
Rothschild & Sons (Australia) Limited.

4.10

(4)

Facility Agreement, dated August 9, 1996, between PT Barisan Tropical Mining, Rothschild Australia Limited and the
Participants.

4.11

(4)

Deposit Agreement, dated September 30, 1999, between Buffels and BOE Merchant Bank, a division of BOE Bank
Limited.

4.12

(4)

Undertaking and Security Agreement, dated November 17, 1999, between BOE Bank Limited, through its division
BOE Merchant Bank, and Buffels.

4.13

(4)

Guarantee and Indemnity Agreement, dated November 17, 1999, between DRDGOLD Limited, Blyvoor, Argonaut
Financial Services (Proprietary) Limited, West Wits, Crown and BOE Bank Limited, through its division BOE
Merchant Bank.

4.14

(4)

Loan Security Agreement, dated November 17, 1999, between FBCF Equipment Finance (Proprietary) Limited and
Buffels.

4.15

(4)

Sale of Business Agreement in respect of Harties, dated August 16, 1999, between Avgold Limited, Buffels and
DRDGOLD Limited.

4.16

(4)

Form of Restraint Agreement.

4.17

(4)

Sale of Shares Agreement, dated September 29, 1997, between RMP Properties Limited, Randgold, Crown, City Deep
Limited, Consolidated Main Reef Mines and Estate Limited, Crown Mines Limited, RMP Properties SA Limited and
Industrial Zone Limited.

4.18

(5)

Form of Non-Executive Employment Agreement.

4.19

(5)

Form of Executive Employment Agreement.

122

4.20

(5)

Share Sale Option Agreement, dated March 12, 1993, between Newmont Proprietary Limited, Ballimore No. 56
Proprietary Limited, Clayfield Proprietary Limited and Dome Resources N.L.

4.21

(5)

Convertible Loan Agreement, dated November 19, 1997, between Tolukuma Gold Mines Proprietary Limited, Dome
Resources N.L. and Mineral Resources Development Company Proprietary Limited.

4.22

(5)

First Deed of Variation of Loan Agreement, between Mineral Resources Development Company Pty Limited, Dome
Resources N.L. and Tolukuma Gold Mines Pty Limited.

4.23

(5)

Agreement, dated February 21, 2000, between DRDGOLD Limited and Western Areas Limited.

4.24

(5)

Independent Auditor’s Report from PricewaterhouseCoopers to the Board of Directors and Shareholders of Crown
Consolidated Gold Recoveries Limited, dated August 28, 2000.

4.25

(5)

Shareholders’ Agreement, dated September 29, 2000, between DRDGOLD Limited, Fraser Alexander Tailings
(Proprietary) Limited and Mine Waste Solutions (Proprietary) Limited.

4.26

(5)

First Addendum to the Agreement, dated November 15, 2000, between DRDGOLD Limited and Western Areas
Limited.

4.27

(5)

Second Addendum to the Agreement, dated December 21, 2000, between DRDGOLD Limited and Western Areas
Limited.

4.28

(6)

Agreement between DRDGOLD Limited, Western Areas Limited, Consolidated African Mines Limited and JCI Gold
Limited, dated April 25, 2001.

4.29

(6)

Addendum to the Agreement between DRDGOLD Limited, Western Areas Limited, Consolidated African Mines
Limited and JCI Gold Limited, dated August 31, 2001.

4.30

(6)

Addendum to the Agreement between DRDGOLD Limited, Western Areas Limited, Consolidated African Mines
Limited and JCI Gold Limited, dated September 26, 2001.

4.31

(6)

Guarantee and Cession in Securitatem Debiti Agreement between DRDGOLD Limited and Investec Bank Limited,
dated October 9, 2001.

4.32

(6)

Second Deed of Variation of Loan Agreement between Tolukuma Gold Mines Limited, Dome Resources NL and
Mineral Resources Development Company Limited, dated June 28, 2001.

4.33

(6)

Principal Terms and Conditions for Waiving Right to Declare Default and Enforce Security Deed under 1993 Purchase
Agreement between Newmont Second Capital Corporation, Tolukuma Gold Mines (Pty.) Limited, Dome Resources
(PNG) Pty. Limited, Dome Resources NL and DRDGOLD Limited, dated July 16, 2001.

4.34

(6)

Loan Agreement between Bank of South Pacific Limited and Tolukuma Gold Mines Limited, dated November 8,
2001.

4.35

(7)

Master Finance Lease between Volvo Truck Finance Australia (Pty) Ltd and Dome Resources N.L., dated
November 1, 2000.

4.36

(7)

Agreement between DRDGOLD Limited and Rand Refinery Ltd, dated October 12, 2001.

4.37

(7)

Share Purchase Agreement between Crown Consolidated Gold Recoveries Ltd, The Industrial Development
Corporation of South Africa Ltd, Khumo Bathong Holdings (Pty) Ltd and DRDGOLD Limited, dated June 12, 2002.

4.38

(7)

Shareholder’s Agreement between The Industrial Development Corporation of South Africa Limited, Khumo Bathong
Holdings (Pty) Ltd, Crown Consolidated Gold Recoveries Ltd, and Crown Gold Recoveries (Pty) Ltd and DRDGOLD
Limited, dated June 12, 2002.

4.39

(7)

Addendum to Shareholder’s Agreement between The Industrial Development Corporation of South Africa Limited,
Khumo Bathong Holdings (Pty) Ltd, Crown Consolidated Gold Recoveries Ltd, Crown Gold Recoveries (Pty) Ltd and
DRDGOLD Limited, dated June 14, 2002.

4.40

(7)

Subscription Agreement between Khumo Bathong Holdings (Pty) Limited and DRDGOLD Limited, dated
June 12, 2002.

4.41

(7)

Loan Agreement between DRDGOLD Limited and Khumo Bathong Holdings (Pty) Ltd, dated June 12, 2002.

4.42

(7)

Memorandum of Loan Agreement No. 1 between Durban Roodepoort Deep and Crown Gold Recoveries (Pty) Ltd,
dated June 12, 2002.

4.43

(7)

Memorandum of Loan Agreement No. 2 between DRDGOLD Limited and Crown Gold Recoveries (Pty) Ltd, dated
June 12, 2002.

4.44

(7)

Memorandum of Loan Agreement No. 3 between Crown Consolidated Gold Recoveries Ltd and Crown Gold
Recoveries (Pty) Ltd, dated June 12, 2002.

4.45

(7)

Loan Agreement between Industrial Development Corporation of South Africa Ltd and Blyvooruitzicht Gold Mining
Company Ltd, dated July 18, 2002.

4.46

(7)

Agreement of Loan and Pledge between DRDGOLD Limited and East Rand Proprietary Mines Limited, dated
September 12, 2002.

4.47

(7)

Management Services Agreement between DRDGOLD Limited, Khumo Bathong Holdings (Pty) Ltd and Crown Gold
Recoveries (Pty) Ltd, dated October 1, 2002.

123

4.48

(7)

Agreement amongst DRDGOLD Limited, West Witwatersrand Gold Mines Limited and Bophelo Trading (Pty) Ltd,
dated June 12, 2002.

4.49

(7)

Letter Agreement between DRDGOLD Limited and The Standard Bank of South Africa, represented by its Standard
Corporate and Merchant Bank Division, dated October 7, 2002.

4.50

(7)

Memorandum of Agreement between Daun Et Cie A.G., Courthiel Holdings (Pty) Ltd, Khumo Bathong Holdings
(Pty) Ltd, Claas Edmond Daun, Paul Cornelis Thomas Schouten, Moltin Paseka Ncholo, Michelle Patience Baird,
Derek Sean Webbstock, as sellers, and Crown Gold Recoveries (Pty) Ltd, as purchaser, dated October 10, 2002.

4.51

(7)

Memorandum of Loan Agreement between DRDGOLD Limited and Crown Gold Recoveries (Pty) Ltd, dated
October 10, 2002.

4.52

(7)

Letter Agreement Relating to Consultancy Arrangement between DRDGOLD Limited and Nicolas Goodwin, dated
October 15, 2002.

4.53

(7)

Management Services Agreement between DRDGOLD Limited and East Rand Proprietary Mines Ltd, dated October
10, 2002.

4.54

(7)

Agreement for sale of shares in Emperor Mines Limited, between DRD (Isle of Man) Limited and Kola Ventures
Limited, dated December 13, 2002.

4.55

(8)

Confirmation, dated August 14, 2003, between DRDGOLD Limited and Investec Bank (Mauritius) Limited.

4.56

(8)

Amendment to Confirmation, dated September 4, 2003, between DRDGOLD Limited and Investec Bank (Mauritius)
Limited.

4.57

(9)

Deed of Amalgamation for the Corporate Restructuring of Orogen Minerals (Porgera) Limited, Mineral Resources
Porgera Limited and Dome Resources (PNG) Limited, dated October 14, 2003.

4.58

(9)

Undertaking, between Oil Search Limited and DRD (Isle of Man) Limited, dated October 14, 2003.

4.59

(9)

Loan Assignment Agreement between Orogen Minerals Limited, DRD (Isle of Man) Limited and Orogen Minerals
(Porgera) Limited, dated October 14, 2003.

4.60

(9)

Agreement between Orogen Minerals Limited and DRD (Isle of Man) Limited, dated October 14, 2003.

4.61

(9)

Loan Assignment Agreement, between Dome Resources (PNG) Limited, Dome Resources Pty Limited, DRD (Isle of
Man) Limited and Tolukuma Gold Mines Limited, dated November 21, 2003.

4.62

(9)

Memorandum of Agreement made and entered into between DRDGOLD Limited, West Witwatersrand Gold Mines
Limited, Mogale Gold (Proprietary) Limited and Luipaards Vlei Estates (Proprietary) Limited dated June 6, 2003.

4.63

(10)

Porgera Joint Venture Operating Agreement between Placer (P.N.G.) Pty Limited and Highlands Gold Properties Pty.
Limited and PGC (Papua New Guinea) Pty Limited, dated November 2, 1988.

4.64

(10)

Agreement of Employment between DRDGOLD Limited and Mr. D.J.M. Blackmur, dated as of October 21, 2003.

4.65

(10)

Banking Facilities Agreement made and entered between DRDGOLD Limited and Standard Bank of South Africa,
Limited, dated November 14, 2003.

4.66

(10)

Agreement of Employment between DRDGOLD Limited and Mr. M.M. Wellesley-Wood, dated as of December 1,
2003.

4.67

(10)

Service Agreement between DRD (Isle of Man) Limited and Mr. M.M. Wellesley-Wood, dated as of December 1,
2003.

4.68

(10)

Agreement of Employment between DRDGOLD Limited and Mr. I.L. Murray, dated as of December 1, 2003.

4.69

(10)

Service Agreement between DRD (Isle of Man) Limited and Mr. I.L. Murray, dated as of December 1, 2003.

4.70

(10)

Subscription and Option Agreement made and entered between DRD (Isle of Man) Limited, Net-Gold Services
Limited and G.M. Network Limited, dated January 26, 2004.

4.71

(10)

Forward Bullion Transaction Agreements made and entered between DRDGOLD Limited and Investec Bank Limited,
dated February 4, 2004, February 6, 2004, February 10, 2004, February 11, 2004 and February 12, 2004.

4.72

(10)

Loan Agreement made and entered between DRDGOLD Limited and Investec Bank Limited, dated June 24, 2004.

4.73

(10)

Termination Agreement made and entered between DRDGOLD Limited, Eskom Holdings Limited and Investec Bank
Limited, dated June 24, 2004.

4.74

(10)

Novation Agreement made and entered between J Aron & Company, Eskom Holdings Limited and Investec Bank
Limited, dated June 24, 2004.

4.75

(10)

Memorandum of Understanding made and entered between Buffelsfontein Gold Mines Limited, Buffelsfontein
Division and The National Union of Mineworkers, The United Association of South Africa, The Mine Workers
Union (Solidarity) and The South African Electrical Workers Association regarding retrenchments associated with
No. 9, 10 and 12 Shafts of Buffelsfontein Division, dated August 6, 2004.

4.76

(10)

CCMA Settlement Agreement made and entered between Blyvooruitzicht Gold Mining Company Limited and The
United Association of South Africa, South African Equity Workers’ Association, Solidarity and The National
Union of Mineworkers regarding the retrenchment of up to 2,000 employees of the Blyvooruitzicht Gold Mining
Company, dated September 2, 2004.

124

4.77

(10)

Loan Agreement made and entered between DRDGOLD Limited and Investec Bank Limited, dated September 15,
2004.

4.78

(10)

Subscription Agreement made and entered between DRD (Isle of Man) Limited and DRDGOLD Limited, dated
September 21, 2004.

4.79

(10)

Common Terms Agreement of Loan made and entered between DRD (Isle of Man) Limited and Investec Bank
(Mauritius) Limited, dated October 14, 2004.

4.80

(10)

Facility A Loan Agreement made and entered between DRD (Isle of Man) Limited and Investec Bank (Mauritius)
Limited, dated October 14, 2004.

4.81

(11)

Loan Agreement made and entered between DRDGOLD Limited and Investec Bank Limited, dated December 10,
2004.

4.82

(11)

Subscription Agreement between DRDGOLD Limited and Baker Steel Capital Managers LLP (BSCM), dated April 7,
2005.

4.83

(11)

Underwriting Agreement between DRDGOLD Limited, the Baker Steel Capital Managers LLP (BSCM) and certain
underwriters, dated April 5, 2005.

4.84

(11)

Memorandum of Agreement between DRDGOLD Limited, Simmer & Jack Mines Limited and Simmer & Jack
Investments (Proprietary) Limited (S&J Companies), dated August 31, 2005.

4.85

(11)

Cession Agreement entered into among The Industrial Development Corporation of South Africa Limited (IDC),
DRDGOLD Limited, Business Ventures Investment No. 750 (Pty) Ltd and Business Ventures Investment No. 751
(Pty) Ltd (the BVI Companies), dated July 13, 2005.

4.86

(11)

Share Sale Agreement entered into among The Industrial Development Corporation of South Africa Limited (IDC),
DRDGOLD Limited, Business Ventures Investment No. 750 (Pty) Ltd (BVI 1) and Business Ventures Investment No.
751 (Pty) Ltd (BVI 2), dated July 13, 2005.

4.87

(11)

Term Sheet concluded between DRDGOLD Limited and Khumo Bathong Holdings (Pty) Ltd (KBH), dated
July 6, 2005.

4.88

(11)

Facility B Loan Agreement between Investec Bank (Mauritius) Limited and DRD (Isle of Man)
Limited (DRDIOM), dated March 3, 2005.

4.89

(11)

Convertible Loan Facility Agreement between DRDGOLD Limited and Emperor Mines Limited (Emperor), dated
July 8, 2005.

4.90

(11)

Agreement of Employment between DRDGOLD Limited and Mr. J.W.C. Sayers, dated as of August 10, 2005.

4.91

(11)

Option Agreement entered into by and between DRDGOLD Limited and M5 Developments (Pty) Limited, dated July
21, 2005.

4.92

(11)

Share Sale Agreement between DRD (Offshore) Limited, DRDGOLD Limited and Emperor Mines Limited, dated
November 16, 2005.

4.93

(12)

Deed of Loan, Cession, Payment and Set-Off entered into between DRDGOLD Limited, East Rand Proprietary
Mines Limited, Crown Gold Recoveries (Pty) Limited and Blyvooruitzicht Gold Mining Company Limited, dated
November 7, 2005.

4.94

(12)

Share Sale Agreement between Business Venture Investments 750 (Pty) Ltd and DRDGOLD South African
Operations (Pty) Limited, dated November 8, 2005.
Share Sale Agreement between Business Venture Investments 751 (Pty) Limited and DRGOLD South African
Operations (Pty) Limited, dated November 8, 2005.

4.95

(12)

Subscription Agreement between DRDGOLD Limited and DRDGOLD South African Operations (Pty) Limited,
dated November 9, 2005.

4.96

(12)

Share Sale Agreement between Crown Consolidated Gold Recoveries Limited and DRDGOLD South African
Operations (Pty) Limited, dated November 14, 2005.

4.97

(12)

Subscription Agreement between DRDGOLD South African Operations (Pty) Limited and Khumo Gold SPV (Pty)
Limited, dated November 18, 2005.

4.98

(12)

Subscription Agreement between DRDGOLD Limited and Khumo Gold SPV (Pty) Limited, dated
November 18, 2005.

4.99

(12)

Cession Agreement between DRDGOLD Limited and Khumo Gold SPV (Pty) Limited and Khumo Bathong
Holdings (Pty) Limited, dated November 18, 2005.

4.100

(12)

Cession Agreement between DRDGOLD Limited and The Industrial Development Corporation of South Africa
Limited and Business Venture Investments No. 750 (Pty) Limited and Business Venture Investments No. 751 (Pty)
Limited, dated November 18, 2005.

4.101

(12)

Option Agreement between DRDGOLD Limited and Khumo Gold SPV (Pty) Limited and DRDGOLD South
African Operations (Pty) Limited, dated November 18, 2005.

4.102

(12)

Offer of Class A Preference Share between Khumo Gold SPV (Pty) Limited and East Rand Proprietary Mines Limited, dated November 18, 2005.

125

4.103

(12)

Offer of Class A Preference Share between Khumo Gold SPV (Pty) Limited and Blyvooruitzicht Gold Mining
Company Limited, dated November 18, 2005.

4.104

(12)

Offer of Class A Preference Share between Khumo Gold SPV (Pty) Limited and Crown Gold Recoveries (Pty)
Limited, dated November 18, 2005.

4.105

(12)

Shareholders’ Agreement between DRDGOLD Limited and Khumo Gold SPV (Pty) Limited and DRDGOLD
South African Operations (Pty) Limited, dated November 24, 2005.

4.106

(12)

Sale and Subscription Agreement between DRDGOLD Limited and DRD (Offshore) Limited, dated
January 4, 2006.

4.107

(12)

Share Sale Agreement between DRD (Isle of Man) Limited and DRD (Offshore) Limited, dated February 22, 2006.

4.108

(12)

Restructure Deed between DRD (Offshore) Limited and DRD (Isle of Man) Limited and Emperor Mines Limited
and Emperor Gold Mining Company Limited and Australia and New Zealand Banking Group Limited, dated
February 24, 2006.

4.109

(12)

Facility Agreement between DRD (Porgera) Limited and Tolukuma Gold Mines Limited and Australia and New
Zealand Banking Group Limited, dated March 20, 2006.

4.110

(12)

Settlement of Loans Agreement between DRD (Isle of Man) Limited and DRD (Offshore) Limited, dated March
23, 2006.

4.111

(14)

Option Exercise Agreement between DRDGOLD Limited, Khumo Gold SPV (Pty) Limited and the Trustees for the
time being of the DRDSA Empowerment Trust dated October 10, 2006.

4.112

(14)

Class B Preference Share Subscription Agreement between DRDGOLD Limited and Khumo Gold SPV (Pty)
Limited dated October 24, 2006.

4.113

(14)

Three Class B Preference Share Subscription Agreements between Khumo Gold SPV (Pty) Limited and
Blyvooruitzicht Gold Mining Company Limited, Crown Gold Recoveries (Pty) Limited and East Rand Proprietary
Mines Limited, dated October 24, 2006.

4.114

(14)

Three Class C Preference Share Subscription Agreements between the Trustees for the time being of the DRDSA
Empowerment Trust and Blyvooruitzicht Gold Mining Company Limited, Crown Gold Recoveries (Pty) Limited
and East Rand Proprietary Mines Limited, dated October 24, 2006.

4.115

(14)

Share Sale Agreement between Emperor Mines Limited and Westech Gold (Pty) Limited, dated March 22, 2007,`
regarding the disposal of its Fijian assets.

4.116

(14)

Joint Venture Interest Sale Deed – Procurement Deed between Barrick Gold Corporation, or Barrick, and Emperor
Mines Limited, dated April 12, 2007.

4.117

(14)

Subscription Agreement between Emperor Mines Limited and Barrick Gold Corporation, dated April 12, 2007.

4.118

(14)

Joint Venture Interest Sale Deed between Barrick Gold Corporation, Barrick (Niugini) Limited, Emperor Mines
Limited and DRD (Porgera) Limited dated July 19, 2007.

4.119

(14)

Deed of Assignment and Assumption between Barrick (Niugini) Limited (“Buyer”), DRD (Porgera) Limited
(“Seller”), Barrick (Goldfields PNG Holdings) Limited (“Goldfields”) and Minerals Resources Enga Limited
(“MRE”) (collectively “the parties”) dated July 19, 2007.

4.120

(14)

Memorandum of Agreement between Anglo Gold Ashanti Limited, Friedshelf 849 (Proprietary) Limited (renamed
Ergo Mining (Pty) Limited), DRDGOLD South African Operations (Pty) Limited and Mintails SA (Pty) Limited,
dated August 6, 2007.

4.121

(14)

Merger Implementation Deed between Emperor Mines Limited and Intrepid Mines Limited, dated
September 18, 2007.

4.122

(14)

Mandate for the Placement of DRD (Offshore) Limited’s 78.72% Shareholding in Emperor Mines Limited, dated
September 28, 2007.

4.123

(14)

Term Sheet for the joint venture agreement entered into by Acorn Gold (Proprietary) Limited, DRDGOLD Limited,
Durban Roodepoort Deep (Proprietary) Limited, Friedshelf 850 (Proprietary) Limited, Geotorm Investments
Limited, Kgosi Resource Management (Proprietary) Limited, Minerals and Mining Reclamation Services
(Proprietary) Limited, Mintails SA (Proprietary) Limited, West Witwatersrand Gold Mines Limited, West
Witwatersrand Holdings Limited, West Wits Mining Limited, West Wits Mining SA (Proprietary) Limited, dated
November 9, 2007.

4.124

(15)

Third Addendum to Memorandum of Agreement between AngloGold Ashanti Limited (“AGA”), Ergo Mining
(Pty) Limited (formerly called Friedshelf 849 (Pty) Limited) (“Ergo”), DRDGOLD South African Operations (Pty)
(“DRDGOLD SA”) Mintails South Africa (Pty) Limited dated November 14, 2007.

4.125

(15)

Fifth Addendum to Memorandum of Agreement between AngloGold Ashanti Limited (“AGA”), Ergo Mining (Pty)
Limited (formerly called Friedshelf 849 (Pty) Limited (“Ergo”), DRDGOLD South African Operations (Pty)
(“DRDGOLD SA”) Mintails South Africa (Pty) Limited dated May 22, 2008.

126

4.126

(15)

Mining User Contract between Crown Gold Recoveries (Pty) Limited (“Crown”), East Rand Proprietary Mines
Limited (“ERPM”), Elsburg Gold Mining Joint Venture (“Elsburg JV”), Ergo Mining (Pty) Limited (“Ergo”), Ergo
Uranium (Pty) Limited (“Ergo Uranium”) and Mogale Gold (Pty) Limited (“Mogale Gold”) dated August 15, 2008

4.127

(15)

Ergo Uranium Sale Agreement of Brakpan Plants to Ergo Mining between Ergo Uranium (Pty) Limited (“Ergo
Uranium”) and Ergo Mining (Pty) Limited (“Ergo”) dated August 15, 2008.

4.128

(15)

Ergo Mining Shareholders’ Agreement between Crown Gold Recoveries (Pty) Limited (“Crown”) and Ergo
Uranium (Pty) Limited (“Ergo Uranium”) dated August 15, 2008.

4.129

(15)

Elsburg Gold Mining Joint Venture (“Elsburg JV”) Agreement between East Rand Proprietary Mines Limited
(“ERPM”) and Mogale Gold (Pty) Limited (“Mogale Gold”) dated August 15, 2008.

4.130

(15)

Mogale Sale of Part Venture Interest in the Elsburg Gold Mining Joint Venture (“Elsburg JV”) between East Rand
Proprietary Mines Limited (“ERPM”) and Mogale Gold (Pty) Limited (“Mogale Gold”) dated September 29, 2008.

4.131

(16)

Heads of Agreement entered into by Mintails Limited, Mogale Gold (Pty) Limited (“Mogale Gold”), Ergo Mining
(Pty) Limited (“Ergo Joint Venture”), DRDGOLD Limited (“DRDGOLD”) and East Rand Proprietary Mines
Limited (“ERPM”), dated December 8, 2008.

4.132

(16)

Loan Facility entered into by Mintails South Africa (Pty) Limited (“Borrower”), DRDGOLD Limited (“Lender”),
Mintails Limited (“Borrower’s Guarantor”), Mogale Gold (Pty) Limited (Mogale Gold”) Ergo Uranium (Pty)
Limited (“Ergo Uranium”) dated December 8, 2008.

4.133

(16)

Subscription and shareholders’ Agreement entered into by Mintails SA (Proprietary) Limited (“Mintails SA”),
Witfontein Mining (Proprietary) Limited (“Witfontein”) and Argonaut Financial Services (Proprietary) Limited
(“Argonaut”) dated December 9, 2008.

4.134

(16)

4.135

(17)

4.136

(17)

4.137

(17)

Facility Agreement between Investec Bank limited (“the Lender”) and DRDGOLD Limited (“the Borrower”) dated
March 31, 2009.
Final Heads of Agreement between Chizim Investments (Pvt) Limited (“Chizim”) and DRDGOLD Limited
(“DRDGOLD”) dated December 9, 2009.
Memorandum of Agreement between Ergo Uranium (Pty) Ltd (“Ergo Uranium”) and East Rand Proprietary Mines
Limited (“ERPM”) dated January 21, 2010.
Heads of Agreement between East Rand Proprietary Mines Limited (“ERPM”) and Aurora Empowerment System
(Pty) Limited (“Aurora”) dated January 22, 2010.

4.138

(17)

Domestic Medium Term Note Programme (“Programme”) entered into by DRDGOLD South African Operations
(Pty) Limited (“Issuer”) and DRDGOLD Limited (“guarantor’) dated September 30 2010.

8.1

(17)

List of Subsidiaries.

12.1

(17)

Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

12.2

(17)

Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

13.1

(17)

Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

13.2

(17)

Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

15.1

(10)

Crown Gold Recoveries (Pty) Limited Consolidated Financial Statements for the years ended June 30, 2004 and 2003.

15.2

(11)

Crown Gold Recoveries (Pty) Limited Consolidated Financial Statements for the years ended June 30, 2005, 2004 and
2003.

15.3

(13)

Crown Gold Recoveries (Pty) Limited Unaudited Consolidated Financial Statements for the period ended
December 1, 2005 and the years ended June 30, 2005 and 2004.

15.4

(13)

Emperor Mines Limited Unaudited Consolidated Financial Statements for the period ended April 6, 2006 and the years
ended June 30, 2005 and 2004.

16.1

(11)

Emperor Mines Limited Consolidated Financial Statements for the years ended June 30, 2005 and 2004.

___________

(1)

Incorporated by reference to our Registration Statement (File No. 0-28800) on Form 20-F.

(2)

Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 1997.

(3)

Incorporated by reference to Amendment No. 1 to our Registration Statement (File No. 333-140850) on Form F-6.

(4)

Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 1999.

(5)

Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2000.

(6)

Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2001.

(7)

Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2002.

(8)

Incorporated by reference to Amendment No. 4 of our Annual Report on Form 20-F for the fiscal year ended
June 30, 2002.

(9)

Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2003.

(10)

Incorporated by reference to Amendment No. 3 of our Annual Report on Form 20-F for the fiscal year ended
June 30, 2004.

127

(11)

Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2005.

(12)

Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2006.

(13)

Incorporated by reference to Amendment No. 1 of our Annual Report on Form 20-F for the fiscal year ended
June 30, 2006.

(14)

Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2007.

(15)

Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2008.

(16)

Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended June 30, 2009.

(17)

Filed herewith.

128

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly

caused and authorized the undersigned to sign this annual report on its behalf.

DRDGOLD

LIMITED

By:

/s/

D.J.

Pretorius

D.J. Pretorius
Chief Executive Officer

By:

/s/

C.C.

Barnes

C.C. Barnes
Chief Financial Officer

Date: October 29, 2010