Document:

Exhibit
4.31

	
  376/PVB/GF/AGREEMENT

  
	
  DJ/dk/4d/0e/2006-11-16

  
	
  GOLD2488.170

  

 

AGREEMENT

entered into between

GOLD FIELDS LIMITED

(Registration No. 1968/004880/06)

and

JCI LIMITED 

(Registration No. 1894/000854/06)

and

JCI INVESTMENT FINANCE (PROPRIETARY) LIMITED 

(Registration No. 2005/021440/07)

and

JCI GOLD LIMITED

(Registration No. 1998/005215/06)

 

WHEREBY IT IS AGREED AS FOLLOWS:

PART I

1.                     INTERPRETATION AND PRELIMINARY

The headings of the clauses in
the Agreements are for the purpose of convenience and reference only and shall
not be used in the interpretation of nor modify nor amplify the terms of the
Agreements nor any clause hereof.  Unless
a contrary intention clearly appears –

1.1.                                           words importing –

1.1.1.                                             any one gender include the other two genders;

1.1.2.                                             the singular include the plural and vice versa;  and

1.1.3.                                             natural persons include created entities
(corporate or unincorporate) and the state and vice
versa;

1.2.                                           the following terms shall have the meanings
assigned to them hereunder and cognate expressions shall have corresponding
meanings, namely –

1.2.1.                                             “Act” means the Companies
Act, No. 61 of 1973 as amended;

1.2.2.                                             “Acting In Concert” bears the meaning
ascribed to it in section 440 of the Act;

1.2.3.                                             “Additional Entity” has the meaning ascribed
to it in clause 10 (Purchaser’s Undertaking);

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1.2.4.                                             “Additional Entity’s Ratio” means the number
of issued shares in Gold Fields Limited’s share capital which it issues to an
Additional Entity in accordance with clause 10 (Purchaser’s
Undertaking) divided by the number of Western Areas Shares which the
Purchaser or Gold Fields Limited, as the case may be, acquires from the
Additional Entity in accordance with clause 10 (Purchaser’s
Undertaking);

1.2.5.                                             “Affected Transaction” bears the meaning
ascribed to it in section 440 of the Act as read with the SRP Code;

1.2.6.                                             the “Agreements” means collectively Transaction
No. 1, Transaction No. 2 and the General Agreement;

1.2.7.                                             “Business
Day”
means each day other than a
Saturday, Sunday or proclaimed public holiday in the Republic of South Africa;

1.2.8.                                             “Company” means Western Areas
Limited (Registration No. 1959/003209/06);

1.2.9.                                             “Competition Act” means the Competition Act,
89 of 1998, as amended;

1.2.10.                                       “CSDP” means a Central Securities Depository
Participant, accepted as a participant in terms of the Custody and
Administration of Securities Act, 1992, as amended;

1.2.11.                                       “Entity” means any
association, business, close corporation, company, concern, enterprise, firm,
partnership, person, trust, undertaking, voluntary association or other similar
entity whether corporate or unincorporated;

1.2.12.                                       “General Agreement” means the general
provisions as contained in Part IV of this document;

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1.2.13.                                       “Gold Fields Limited” means Gold Fields
Limited (Registration No. 1968/004880/06);

1.2.14.                                       “Gold Fields Limited Shares” means
9 450 000 (nine million four hundred and fifty thousand) ordinary
shares with a par value of R0,50 (fifty cents) each in Gold Fields Limited’s
share capital.;

1.2.15.                                       “Investec” means Investec Bank Limited
(Registration No. 1969/004763/06);

1.2.16.                                       “JCI” means JCI Limited (Registration
No. 1894/000854/06);

1.2.17.                                       “JCI Gold” means JCI Gold Limited
(Registration No. 1998/005215/06);

1.2.18.                                       “JCI Gold
Ratio” shall be the same ratio as the Sale Ratio;

1.2.19.                                       “JCI Gold
Shares” means 3 651 442 (three million six hundred and
fifty one thousand and four hundred and forty two) Western Areas Shares which
JCI Gold holds in the Company’s issued share capital as at the Date of
Signature Hereof.  The JCI Gold
Shares constitute approximately 3,4% (three comma four per cent) of the
Company’s issued share capital on the Date of Signature Hereof.  For purposes of clarity, the JCI Gold Shares
constitute all of the Western Areas’ Shares which JCI Gold holds in the Company’s
issued share capital on the Date of Signature Hereof and includes JCI Gold’s
portion of the Restricted Seller Shares;

1.2.20.                                       “JSE” means the JSE Limited (Registration
No. 2005/022939/06), a public company incorporated in South Africa,
licensed as an exchange under the Securities Services Act, No. 36 of 2004,
as amended;

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1.2.21.                                       “Parties” means JCI, JCI Gold, Gold Fields
Limited and the Seller;

1.2.22.                                       “Purchaser” means:-

1.2.22.1.                                                Gold Fields
Limited;  or

1.2.22.2.                                                a Subsidiary of Gold
Fields Limited nominated by Gold Fields Limited in terms of clause 22 (Purchaser’s Right to Nominate) (if applicable);  or

1.2.22.3.                                                Gold Fields Limited
and a Subsidiary of Gold Fields Limited nominated by Gold Fields Limited in
terms of clause 22 (Purchaser’s Right to
Nominate) (if applicable);

as
the case may be;

1.2.23.                                       “Randgold” means Randgold & Exploration
Company Limited (Registration No. 1992/005642/06);

1.2.24.                                       “Remaining Seller’s Shares” means
33 306 402 (thirty three million three hundred and six thousand four
hundred and two) Western Areas Shares which the Seller holds in the Company’s
issued share capital as at the Date of Signature Hereof less the Sold
Shares.  The Remaining Seller’s Shares include a portion of the Restricted Seller’s Shares;

1.2.25.                                       “Restricted Seller’s
Shares”
means 4 598 214 (four million five hundred and ninety eight thousand
two hundred and fourteen) Western Areas Shares which the Seller and JCI Gold
hold in the Company’s issued share capital as at the Date of Signature
Hereof.  The Restricted Seller’s Shares are subject to the Seller’s Claim;

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1.2.26.                                       “Sale Ratio” equals 35 (thirty five) shares
in the ordinary issued share capital of Gold Fields Limited with a par value of
50 (fifty) cents each per 100 (one hundred) Western Areas Shares;

1.2.27.                                       “Seller” means JCI
Investment Finance (Proprietary) Limited (Registration No. 2005/021440/07);

1.2.28.                                       “Seller’s
Ratio” shall be the same ratio as the Sale Ratio;

1.2.29.                                       “Sold
Shares”
means 27 000 000 (twenty seven million) ordinary shares with a par
value of R1,00 (one rand) each in the Company’s issued share capital which are
held by the Seller as at the Date of Signature Hereof;

1.2.30.                                       the “Seller’s Claim” means the claim by Trinity
Holdings (Proprietary) Limited (“Trinity”)
against JCI in relation to the Restricted Seller’s Shares which Trinity claims
has been exchanged by JCI for shares in Randgold and claims delivery of such
shares;

1.2.31.                                       “SRP Code” means the Securities Regulation
Code on Take Overs and Mergers;

1.2.32.                                       “Subsidiary” has the meaning ascribed to it
in the Act;

1.2.33.                                       “Three Month Period” means the period
commencing on the Transaction No. 1 Implementation Date and terminating
3 (three) months thereafter;

1.2.34.                                       “Transactions” means Transaction No. 1
and Transaction No. 2;

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1.2.35.                                       “Transaction No. 1” means the
transaction referred to in Part II read with Part IV in terms of which, inter alia, the Seller is selling the Sold Shares to the
Purchaser;

1.2.36.                                       “Transaction No. 2” means the
transaction referred to in Part III read with Part IV in terms of which, inter alia:-

1.2.36.1.                                                the Seller is
granting to the Purchaser an option to acquire the Remaining Seller’s Shares on the terms contained in Part III read
with Part IV;

1.2.36.2.                                                JCI Gold is granting
to the Purchaser an option to acquire the JCI Gold Shares on the terms
contained in Part III read with Part IV; and

1.2.36.3.                                                the Purchaser is
granting to:-

(a)                    the Seller an option
to put all of the Remaining Seller’s Shares to the
Purchaser; and

(b)                   JCI Gold an option to
put all of the JCI Gold Shares to the Purchaser;

on the terms contained in Part III read with
Part IV;

1.2.37.                                       “Transaction No. 1 Conditions Precedent”
means the conditions precedent set out in clause 2.1 of Transaction
No. 1;

1.2.38.                                       “Transaction No. 2 Conditions Precedent”
means the conditions precedent set out in clause 12.1 of Transaction
No. 2;

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1.2.39.                                       “Transaction No. 1 Implementation
Date”
means the date on which Transaction No. 1 becomes unconditional in
accordance with its terms;

1.2.40.                                       “Transaction No. 2 Implementation Date”
means the date on which Transaction No. 2 becomes unconditional in
accordance with its terms;

1.2.41.                                       “Western Areas Shares” means ordinary shares
with a par value of R1,00 (one rand) each in the Company’s share capital.

1.3.                                           any reference in any of the Agreements to “Date of Signature Hereof” shall be read as meaning a reference to the
date of the last signature of this document as recorded on page 42;

1.4.                                           any reference to an enactment is to that enactment
as at the Date of Signature Hereof and as amended or re-enacted from time to
time;

1.5.                                           if any provision in a definition is a
substantive provision conferring rights or imposing obligations on any Party,
notwithstanding that it is only in the definition clause, effect shall be given
to it as if it were a substantive provision in the body of the relevant
Agreement/s;

1.6.                                           when any number of days is prescribed in any of
the Agreement/s, same shall be reckoned exclusively of the first and
inclusively of the last day unless the last day falls on a Saturday, Sunday or
public holiday, in which case the last day shall be the next succeeding day
which is not a Saturday, Sunday or public holiday;

1.7.                                           where figures are referred to in numerals and
in words, if there is any conflict between the two, the words shall prevail;

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1.8.                                           where any term is defined within the context of
any particular clause in any of the Agreement/s, the term so defined, unless it
is clear from the clause in question that the term so defined has limited
application to the relevant clause, shall bear the meaning ascribed to it for
all purposes in terms of the Agreement/s, notwithstanding that that term has
not been defined in this interpretation clause;

1.9.                                           the expiration or termination of any of the
Agreement/s shall not affect such of the provisions of the Agreement/s as
expressly provide that they will operate after any such expiration or
termination or which of necessity must continue to have effect after such
expiration or termination, notwithstanding that the clauses themselves do not
expressly provide for this;

1.10.                                     the rule of construction that a contract shall
be interpreted against the party responsible for the drafting or preparation of
the contract, shall not apply;

1.11.                                     any reference in the Agreement/s to a Party
shall include a reference to that Party’s assigns, expressly permitted under
the Agreement/s and, if such Party is liquidated or sequestrated, be applicable
also to and binding upon that Party’s liquidator or trustee, as the case may
be;

1.12.                                     the words “include”, “including” and “in
particular” shall be construed as being by way of example or emphasis only and
shall not be construed as, nor shall they take effect as, limiting the
generality of any preceding word/s;

1.13.                                     the words “other” and “otherwise” shall not be
construed eiusdem generis with
any preceding words where a wider construction is possible.

PART II –
TRANSACTION NO. 1

2.                     TRANSACTION NO. 1 CONDITIONS PRECEDENT

2.1.                                           Transaction No. 1, save for the provisions
of this clause 2 (Transaction No. 1
Conditions Precedent) and clauses 1 (Interpretation
and Preliminary), 12 (Transaction No. 2
Condition

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Precedent), 7 (JCI’s Warranties and
Undertakings), 8 (Warranties and
Representations), 11 (Transaction No. 1
Breach), 15 (The Seller’s Warranties),
16 (JCI Gold’s Undertakings), 18 (Undertakings),  19 (Transaction No. 2 Breach), 21 (Confidentiality),
22 (Purchaser’s Right to Nominate),
23 (Suretyship by Gold Fields Limited), 24 (Suretyship by JCI), 26 (Specific Performance),
27 (Whole Agreement, No Amendment), 28 (Domicilium Citandi et Executandi), 29 (No Cession
or Assignment), 31 (Counterparts)
and 32 (Legal Costs) which shall be of immediate
force and effect, is subject to the following conditions precedent that:-

2.1.1.                                             JCI delivers to the Purchaser by
15 November 2006, a copy of a resolution passed in general meeting by the
shareholders of JCI approving the sale of the Sold Shares;

2.1.2.                                             the Seller delivers to the Purchaser by
15 November 2006, a copy of a resolution passed in general meeting by the
shareholders of the Seller in terms of section 228 of the Act, approving
the sale of the Sold Shares;

2.1.3.                                             JCI delivers to the Purchaser by
15 November 2006, a copy of all resolution/s passed in general meeting by
the shareholders of JCI, approving Transaction No. 2;

2.1.4.                                             the Seller delivers to the Purchaser by
15 November 2006, a copy of a resolution passed in general meeting by the
shareholders of the Seller approving Transaction No. 2;

2.1.5.                                             JCI Gold delivers to the Purchaser by
15 November 2006, a copy of a resolution passed in general meeting by the
shareholders of JCI Gold approving Transaction No. 2;

2.1.6.                                             by no later than the last signature of this
document, Investec:-

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2.1.6.1.                                                      signs a document in the form annexed hereto as Annexure A (the “Investec Irrevocable Undertaking”);  and

2.1.6.2.                                                      delivers the Investec Irrevocable Undertaking
to Gold Fields Limited.

2.2.                                           The Transaction No. 1 Conditions Precedent
contained in:-

2.2.1.                                             clauses 2.1.1 and 2.1.3 are for the
benefit of both JCI and the Purchaser, who may, by written agreement on or
before the date for fulfilment thereof:-

2.2.1.1.                                                      waive 1 (one) or both of the Transaction
No. 1 Conditions Precedent referred to in this clause 2.2.1;  or

2.2.1.2.                                                      postpone on 1 (one) or more occasions the date
for fulfilment of 1 (one) or both of the Transaction No. 1 Conditions
Precedent referred to in this clause 2.2.1;

2.2.2.                                             clauses 2.1.2 and 2.1.4 are for the
benefit of both the Seller and the Purchaser, who may, by written agreement on
or before the date for fulfilment thereof:-

2.2.2.1.                                                      waive 1 (one) or both of the Transaction
No. 1 Conditions Precedent referred to in this clause 2.2.2;  or

2.2.2.2.                                                      postpone on 1 (one) or more occasions the date
for fulfilment of 1 (one) or both of the Transaction No. 1 Conditions
Precedent referred to in this clause 2.2.2;

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2.2.3.                                             clause 2.1.5 is for the benefit of JCI
Gold and the Purchaser, who may, by written agreement on or before the date for
fulfilment thereof:-

2.2.3.1.                                                      waive same; 
or

2.2.3.2.                                                      postpone on 1 (one) or more occasions the date
for fulfilment of same;

2.2.4.                                             clause 2.1.6 is for the benefit of the
Purchaser, who may in writing on or before the date for fulfilment thereof:-

2.2.4.1.                                                      waive 1 (one), more than one or all of the
Transaction No. 1 Conditions Precedent referred to in this
clause 2.2.4;  or

2.2.4.2.                                                      postpone on 1 (one) or more occasions the date
for fulfilment of 1 (one), more than one or all of the Transaction No. 1
Conditions Precedent referred to in this clause 2.2.4.

2.3.                                           If Transaction No. 1 does not become
unconditional in accordance with clauses 2.1.1 and 2.1.2, the provisions
of clauses 1 (Interpretation and
Preliminary) and this clause 2 (Transaction
No. 1 Conditions Precedent), 12 (Transaction
No. 2 Condition Precedent), 7 (JCI’s
Warranties and Undertakings), 8 (Warranties and
Representations), 11 (Transaction No. 1
Breach), 15 (The Seller’s Warranties),
16 (JCI Gold’s Undertakings), 18 (Undertakings),
19 (Transaction No. 2  Breach), 21 (Confidentiality),
22 (Purchaser’s Right to Nominate), 23 (Suretyship by Gold Fields Limited), 24 (Suretyship
by JCI), 26 (Specific Performance),
27 (Whole Agreement, No Amendment), 28 (Domicilium Citandi et Executandi), 29 (No Cession
or Assignment), 31 (Counterparts)
and 32 (Legal Costs) shall continue to be of
force or effect, but the remainder of the Agreements shall never become
effective.

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2.4.                                           The Parties undertake to use reasonable
endeavours to procure that Transaction No. 1 Conditions Precedent are
fulfilled as timeously as possible.

3.                    SALE OF THE
SOLD SHARES

3.1.                                           The Seller sells to
the Purchaser, which purchases the Sold Shares.

3.2.                                           The Sold Shares are
sold with effect on and as from the Date of Signature Hereof from which date
all risk in and benefits attaching to them shall be deemed to have passed to
the Purchaser.

4.                    EXCHANGE
CONSIDERATION AND DISCHARGE OBLIGATION

4.1.                                           Subject to
clauses 4.2, 10 (Purchaser’s Undertaking)
and 5 (Implementation), Gold Fields Limited
shall discharge its obligation to the Seller in respect of the Sold Shares by
allotting and issuing to the Seller the Gold Fields Limited Shares on the
Transaction No. 1 Implementation Date and Gold Fields Limited warrants
that the Gold Fields Limited Shares will be validly allotted, issued and admitted
to the lists of the JSE.

4.2.                                           Subject to
clause 10 (Purchaser’s Undertaking) the Gold
Fields Limited Shares will be allotted and issued to the Seller against
compliance by the Seller with its obligations in terms of clause 5 (Implementation).

5.                    IMPLEMENTATION

On
the Transaction No. 1 Implementation Date:-

5.1.                                           the Seller shall
ensure that the appropriate entries in the Company’s Sub-Registers of
Securities Holders is made by the relevant CSDP reflecting that the Purchaser
is the registered holder of the Sold Shares; and

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5.2.                                           Gold Fields Limited
shall ensure that the appropriate entries in Gold Fields Limited’s
Sub-Registers of Securities Holders is made by the relevant CSDP reflecting
that the Seller is the registered holder of the Gold Fields Shares.

6.                     VOTING IN RESPECT OF THE SOLD SHARES

If the Company proposes any
general meeting prior to the Transaction No. 1 Implementation Date or the
date upon which any of the Transaction No. 1 Conditions Precedent lapse,
the Seller shall prepare a written instruction to the relevant CSDP in terms of
which it will instruct the CSDP to procure in the name of Gold Fields Limited a
letter of representation that will entitle Gold Fields Limited to attend and
vote the Sold Shares at such meeting.

7.                     JCI’S WARRANTIES AND UNDERTAKINGS

JCI warrants to the Purchaser that:-

7.1.                                           on the Date of Signature Hereof, the date on
which the Seller’s general meeting as contemplated in clauses 2.1.2
and 2.1.4 (“Seller’s General Meeting”)
takes place, and immediately prior to the Transaction No. 1 Implementation
Date and Transaction No. 2 Implementation Date, JCI is and will be the
sole registered and beneficial owner of all of the issued shares in the Seller’s
share capital (“JCIF Shares”);

7.2.                                           it shall vote in favour of the resolution/s
contemplated in clauses  2.1.2 and 2.1.4 at the Seller’s General Meeting
contemplated in such clauses;

7.3.                                           it shall not dispose of the JCIF Shares or any
voting rights in respect thereof prior to the:-

7.3.1.                                             Seller’s General Meeting; and

7.3.2.                                             Transaction No. 2 Implementation Date;

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7.4.                                           on the Date of Signature Hereof, the date on
which the JCI Gold general meeting as contemplated in clause 2.1.5 (“JCI Gold General Meeting”) takes place, and
immediately prior to the Transaction No. 1 Implementation Date and
Transaction No. 2 Implementation Date, JCI is and will be the sole
registered and beneficial owner of all the issued shares in JCI Gold’s share
capital (“JCI Gold Shares”);

7.5.                                           it shall vote in favour of the resolution
contemplated in clause 2.1.5 at the JCI Gold General Meeting;

7.6.                                           it shall not dispose of the JCI Gold Shares or
any voting rights in respect thereof prior to the:-

7.6.1.                                             JCI Gold General Meeting;  and

7.6.2.                                             Transaction No. 2 Implementation Date;

7.7.                                           it shall act in good faith and take all such
reasonable steps as are required by it to implement Transaction No. 1 and
Transaction No. 2;

7.8.                                           on the Date of Signature Hereof and on the date
on which the JCI general meeting as contemplated in clauses 2.1.1 and
2.1.3 (“JCI General Meeting”)
takes place –

7.8.1.                                             104 000 000 (one hundred and four
million) shares of JCI’s ordinary issued share capital (constituting 4,67%
(four comma six seven per cent) of JCI’s issued share capital) is and will be
held by T-Sec Pledge Account (“T-Sec Pledge
Shares”) and such shares will not be voted at the JCI General
Meeting;

7.8.2.                                             58 000 000 (fifty eight million)
shares of JCI’s ordinary issued share capital (constituting 2,54% (two comma
five four per cent) of JCI’s issued share capital) is and will be held by
Equitant Trading (Proprietary) Limited (“Equident
Trading Shares”) and such shares will not be voted at the JCI
General Meeting;

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7.8.3.                                             32 595 875 (thirty two million five
hundred and ninety five thousand eight hundred and seventy five) shares of JCI’s
ordinary issued share capital (constituting 1,47% (one comma four seven per
cent) of JCI’s issued share capital) is and will be held by Aculsha Nominees
Limited (“Aculsha Nominees Shares”)
and such shares will not be voted at the JCI General Meeting;

7.8.4.                                             25 870 589 (twenty five million eight
hundred and seventy thousand five hundred and eighty nine) shares of JCI’s
ordinary issued share capital (constituting 1,16% (one comma one six per cent)
of JCI’s issued share capital) is and will be held by Itsuseng Strategic
Investment (Proprietary) Limited (“Itsuseng
Strategic Shares”) and such shares will not be voted at the JCI
General Meeting;

7.8.5.                                              210 755 713 (two hundred and ten
million seven hundred and fifty five thousand seven hundred and thirteen) JCI
ordinary shares constituting 9,5% (nine coma five per cent) of JCI’s ordinary
issued share capital is and will be held by Matodzi Resources Limited (“Matodzi Shares”) and JCI undertakes to
procure that the Matodzi will not dispose of any of the voting rights in
respect of the Matodzi Shares prior to the JCI General Meeting and the Matodzi
Shares will not be voted at the JCI General Meeting; and

7.8.6.                                              76 387 800 (seventy six million three hundred
and eighty seven thousand and eight hundred) shares constituting 3,43% (three
comma four three per cent) of JCI’s ordinary share capital will be held in the
JCI Share Trust (“JCI Share Trust Shares”)
and the Share Trust Shares will not be voted at the JCI General Meeting;

7.9.                                           on the Date of Signature Hereof and on the date
of the JCI General Meeting, JCI is and will hold 56% (fifty six per cent) of
Matodzi Resources Limited issued share capital;

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7.10.                                     on the date on which the JCI General Meeting
takes place, the irrevocable undertakings attached hereto as Annexure C that Gold Fields Limited
has received prior to signature of this agreement shall constitute more than
46% (forty six per cent) of the shares capable of being voted at the JCI
General Meeting;

7.11.                                     it shall not dispose of the T-Sec Pledge
Shares, the Equident Trading Shares, the Aculsha Nominees Shares, Ituseng
Strategic Shares, Matodzi Shares and the JCI Share Trust Shares or the voting
rights in respect thereof prior to the JCI General Meeting;

7.12.                                     it is not aware of any transaction that the
Company is considering entering into in terms of which, inter alia,
the Company is proposing to allot and issue shares in its share capital.

8.                    WARRANTIES
AND REPRESENTATIONS

8.1.                                           The Seller warrants
to the Purchaser that -

8.1.1.                                             the Seller will be able to comply with its
obligations contained in clause 5 (Implementation);

8.1.2.                                             the Seller will be able to give free and
unencumbered title of the Sold Shares to the Purchaser;

8.1.3.                                             no person will have any right (including any
option or right of first refusal) to acquire any of the Sold Shares or any
voting rights in respect thereof;

8.1.4.                                             prior to the Transaction No. 2
Implementation Date, the Seller shall not allot and issue any shares in its
share capital;

8.1.5.                                             prior to the Transaction No. 2
Implementation Date, no person will have any right (including any option or
right of first refusal) to purchase, acquire, subscribe for or

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be
issued any of the issued or unissued shares or any other securities of the
Seller or any voting right in respect thereof;

8.1.6.                                             the Seller is the sole beneficial owner of the
Sold Shares;  and

8.1.7.                                             Transaction No. 1 and Transaction
No. 2 have been executed legally and are binding on both the Seller and
JCI and may be enforced by the Purchaser against them in accordance with its
terms.

8.2.                                           Nothing contained in
Part II shall relieve JCI and the Seller from their obligations to make those
disclosures which JCI and the Seller are in law obliged to make but which are
not recorded herein.

9.                    GOLD
FIELDS LIMITED’S WARRANTIES AND REPRESENTATIONS

9.1.                                           Gold Fields Limited
warrants to the Seller that -

9.1.1.                                             Gold Fields Limited will be able to comply with
its obligations contained in clause 5 (Implementation);

9.1.2.                                             no person will have any right (including any
option or right of first refusal) to acquire any of the Gold Fields Shares; and

9.1.3.                                             Transaction No. 1 has been executed
legally and is binding on the Purchaser and may be enforced by the other
Parties against them in accordance with its terms.

9.2.                                           Nothing contained in
Part II shall relieve Gold Fields Limited from its obligation to make those
disclosures which Gold Fields Limited is in law obliged to make but which are
not recorded herein.

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9.3.                                           Gold Fields Limited shall act in good faith and
take all such reasonable steps as are required by it to implement Transaction
No. 1 and Transaction No. 2.

10.             PURCHASER’S
UNDERTAKING

10.1.                                     The Purchaser undertakes to the Seller that if
during the period commencing on the Date of Signature Hereof and terminating 3
(three) months after the Transaction No. 2
Implementation Date it makes an
offer which results in it acquiring (either during or after the termination of
the aforementioned period) any Western Areas Shares (“Additional Western Areas’ Shares”) from any
Entity other than the Seller or JCI (“Additional
Entity”):-

10.1.1.                                       and utilises as consideration ordinary shares
in its share capital and the Additional Entity’s Ratio is greater than the Sale
Ratio, then the Sale Ratio shall be increased by the Purchaser ensuring, as
soon as is reasonably practicable after it has acquired the Additional Western
Areas Shares, that the appropriate entries in Gold Fields Limited’s
Sub-Registers of Securities Holders is made by the relevant CDSP, reflecting
that the Seller is the registered holder of such number of ordinary shares in
Gold Fields Limited’s share capital which will result in the Sale Ratio being
equal or as close to being equal as is possible) to the Additional Entity’s
Ratio; or

10.1.2.                                       and utilises cash or any other form of
consideration or a combination of both (the “Consideration”)
and the Consideration per Western Areas Share (calculated at the date that Gold
Fields Limited makes the offer for the Additional Western Area Shares) is
greater than R50,75 (fifty rand and seventy five cents) per Western Areas
Share, then the Purchaser undertakes to ensure, as soon as is reasonably
practicable after it has acquired the Additional Western Areas Shares, that the
appropriate entries in Gold Fields Limited’s Sub-Registers of Securities
Holders is made by the relevant CDSP, reflecting that the Seller is the
registered holder of such number of ordinary shares in Gold Fields Limited’s
share capital which is

 19
 

 

equal
to (or as close to being equal as is possible) the difference between the
Consideration and R50,75 (fifty rand and seventy five cents) per Sold Share.

10.2.                                     If the Sale Ratio is increased in accordance
with clause 10.1.1 and the Purchaser acquires the Remaining Seller’s
Shares and the JCI Gold Shares, then by no later than 10 (ten) Business Days
after it has acquired the aforesaid shares the Purchaser shall ensure that
appropriate entries in Gold Fields Limited’s Sub-Registers of Securities
Holders is made by the relevant CDSP, reflecting that –

10.2.1.                                       JCI Gold is the registered holder of such
number of ordinary shares in Gold Fields Limited’s share capital which will
result in the JCI Gold Ratio being equal (or as close to being equal as is
possible) to the Additional Entity’s Ratio; and

10.2.2.                                       the Seller is the registered holder of such
number of ordinary shares in Gold Fields Limited’s share capital which will
result in the Seller’s Ratio being equal (or as close to being equal as is
possible) to the Additional Entity’s Ratio.

10.3.                                     If the Purchase Price is increased in
accordance with clause 10.1.2 and the Purchaser acquires the Remaining
Seller’s Shares and the JCI Gold Shares, then by no later than 10 (ten)
Business Days after it has acquired the aforesaid shares the Purchaser shall
ensure that appropriate entries in Gold Fields Limited’s Sub-Registers of
Securities Holders is made by the relevant CDSP, reflecting that –

10.3.1.                                       JCI Gold is the registered holder of such
number of ordinary shares in Gold Fields Limited’s share capital which is equal
to (or as close to be equal as is possible) the difference the Consideration and
R50,75 (fifty rand and seventy five cents) per JCI Gold Share; and

10.3.2.                                       the Seller is the registered holder of such
number of ordinary shares in Gold Fields Limited’s share capital which is equal
to (or as close to be equal as is

 20
 

 

possible)
the difference between the Consideration and R50,75 (fifty rand and seventy
five cents) per Remaining Seller’s Share.

11.             TRANSACTION
NO. 1 BREACH

If any Party (“Defaulting Party”) materially breaches any
provision or term of this Part II (other than those which contain their own
remedies or limit the remedies in the event of a breach thereof) and fails to
remedy such breach within 20 (twenty) Business Days of receipt of written
notice from the any other Party who can demonstrate that he is suffering or
might suffer negative consequences as a result of such breach (“Non-Defaulting Party”) requiring it to do
so (or if it is not reasonably possible to remedy the breach within
20 (twenty) Business Days, within such further period as may be reasonable
in the circumstances (the onus of demonstrating such reasonableness being on
the Defaulting Party) provided that the Defaulting Party also furnishes
evidence within the period of
5 (five) Business Days, reasonably satisfactory to the Non-Defaulting
Party, that it has taken whatever steps are available to it, to commence
remedying the breach) then the Non-Defaulting Party shall be entitled without
notice, in addition to any other remedy available to it at law or under Part
II, including obtaining an interdict, to cancel Transaction No. 1 as
contained in this Part II read with Part IV or to claim specific performance of
any obligation whether or not the due date for performance has arrived, in
either event without prejudice to the Non-Defaulting Party’s right to claim
damages.

PART III –
TRANSACTION NO. 2

12.             TRANSACTION
NO. 2 CONDITION PRECEDENT

12.1.                                     Transaction No. 2, save for the provisions
of this clause 12 (Transaction No. 2
Condition Precedent) and clauses 1 (Interpretation
and Preliminary), clauses 2 (Transaction
No. 1 Conditions Precedent), 7 (JCI’s
Warranties and Undertakings), 8 (Warranties and
Representations), 11 (Transaction No. 1
Breach), 15 (The Seller’s Warranties),
16 (JCI Gold’s Undertakings), 18 (Undertakings), 19 (Transaction No. 2
Breach), 21 (Confidentiality),
22 (Purchaser’s Right to Nominate), 23 (Suretyship by Gold Fields Limited), 24 (Suretyship
by JCI), 26 (Specific Performance),
27 (Whole Agreement, No Amendment), 28 (Domicilium Citandi et Executandi), 29 (No Cession
or Assignment), 31 (Counterparts) and
32 (Legal

 21
 

 

Costs) which shall be of immediate force and effect,
is subject to the following conditions precedent, namely that by
15 November 2006 or such later date to which any of the Transaction
No. 1 Conditions Precedent have been extended in accordance with
clause 2 (Transaction No. 1 Conditions Precedent),
Transaction No. 1 becomes unconditional in accordance with its terms.

12.2.                                     Unless the Transaction No. 2 Condition
Precedent is fulfilled by 15 November 2006 (or such later date as is
contemplated in clause 12.1,) the provisions of this clause 12 (Transaction No. 2 Condition Precedent) and
clauses 1 (Interpretation and Preliminary),
clauses 2 (Transaction No. 1 Conditions Precedent),
7 (JCI’s Warranties and Undertakings), 8 (Warranties and Representations), 11 (Transaction
No. 1  Breach), 15 (The Seller’s Warranties), 16 (JCI Gold’s
Undertakings), 18 (Undertakings),
19 (Transaction No. 2 Breach), 21 (Confidentiality), 22 (Purchaser’s Right to
Nominate), 23 (Suretyship by Gold Fields
Limited), 24 (Suretyship by JCI),
26 (Specific Performance), 27 (Whole Agreement, No Amendment), 28 (Domicilium
Citandi et Executandi), 29 (No Cession or Assignment),
31 (Counterparts) and 32 (Legal Costs) shall continue to be of force or effect, but
the remainder of the Agreements shall never become effective.

12.3.                                     The Parties undertake to use their reasonable
endeavours to procure that the Transaction No. 2 Condition Precedent is
fulfilled as timeously as possible.

13.             CALL
OPTIONS

13.1.                                     It is recorded that the Restricted Seller’s
Shares are subject to the Seller’s Claim and have been set aside to settle the
Seller’s Claim.  If, prior to the offers
being accepted or options being exercised, as the case may be, as contemplated
in this clause 13 (Call Options),
and clause 14 (Put Options)
the Seller is obligated to dispose or is prohibited from disposing of any of
the Restricted Seller’s Shares as a result of the Seller’s Claim, then such
Restricted Seller’s Shares will no longer form part of the Remaining Seller’s
Shares and will no longer be subject to the abovementioned options and
offers.  For purposes of clauses 13
(Call Options) and 14 (Put Options) any reference to the Seller in regard to the
Restricted Seller’s Shares

 22
 

 

shall
be read to include JCI Gold and the Seller jointly and severally.  Furthermore, upon any of the offers being
accepted or the options being exercised in accordance with clauses 13 (Call Options) and 14 (Put Options)
the Seller shall notify the Purchaser –

13.1.1.                                       if any of the Restricted Seller’s Shares have
been disposed of as a result of the Seller’s Claim or if the Seller is
prohibited from disposing of such shares as a result of the Seller’s Claim;

13.1.2.                                       of how many Restricted Seller’s Shares will be
acquired by the Purchaser; and

13.1.3.                                       from whom the Purchaser will acquire the
Restricted Seller’s Shares referred to in clause 13.1.2.

13.2.                                     The Purchaser shall at any stage, subject to
clause 14.2.1, during the Three Month Period be entitled to notify JCI
Gold and the Seller in writing (“Purchaser’s
Notification Date”) that it is considering acquiring from:-

13.2.1.                                       the Seller, the Remaining Seller’s Shares;  and

13.2.2.                                       JCI Gold, the JCI Gold Shares.

13.3.                                     Should the Purchaser deliver the notice
referred to in clause 13.2 , then:-

13.3.1.                                       the Seller shall be deemed to have granted the
Purchaser an option to acquire all of the Remaining Seller’s Shares; and

13.3.2.                                       JCI Gold shall be deemed to have granted the
Purchaser an option to acquire all of the JCI Gold Shares.

 23
 

 

13.4.                                     The aforesaid options shall be open for
acceptance in writing by the Purchaser for a period of 90 (ninety) days
(subject to clause 13.7) from the Purchaser’s Notification Date.

13.5.                                     Should the Purchaser accept the aforesaid
options during the time period contemplated in clause 13.4 read with
clause 13.7, then by no later than 10 (ten) Business Days after the date
on which the aforesaid options are accepted the Purchaser shall discharge the
purchase price in respect of the JCI Gold Shares and Remaining Seller’s Shares
by ensuring that the appropriate entries in Gold Fields Limited’s Sub-Registers
of Securities Holders is made by the relevant CSDP reflecting that:-

13.5.1.                                       the Seller is the registered holder of 35
(thirty five) ordinary shares in
Gold Fields Limited’s share capital for every 100 (one hundred) of the
Remaining Seller’s Share that the Purchaser has acquired (the “Seller’s Consideration”);  and

13.5.2.                                       JCI Gold is the registered holder of 35
(thirty five ordinary shares in Gold Fields Limited’s share capital for every 100 (one
hundred) of the JCI Gold Share that the Purchaser has acquired (the “JCI Gold Consideration”).

13.6.                                     Simultaneously with the Purchaser complying
with its obligation in:-

13.6.1.                                       clause 13.5.1, the Seller shall ensure
that the appropriate entries in the Company’s Sub-Registers of Securities
Holders is made by the relevant CSDP reflecting that the Purchaser is the
registered holder of the Remaining Seller’s Shares;  and

13.6.2.                                       clause 13.5.2, JCI Gold shall ensure
that the appropriate entries in the Company’s Sub-Registers of Securities
Holders is made by the relevant CSDP reflecting that the Purchaser is the
registered holder of the JCI Gold Shares.

 24

 

 

13.7.                                     Should the acceptance of the options
contemplated in this clause 13 (Call Options)
in the reasonable opinion of the Purchaser require any approvals in terms of
the Competition Act, then the Purchaser shall give written notice to JCI Gold
and the Seller of its willingness to accept the offers (“Acceptance Notice”) and obtain approval of
the Competition Authorities :-

13.7.1.                                       in such event, the Purchaser shall be entitled
to extend the date referred to in clause 13.4 in writing by 120 (one
hundred and twenty) days after the Acceptance Notice (“Terminal Date”).  In the event that the Purchaser extends the
date referred to in clause 13.4 in accordance with this clause 13.7.1
then the Purchaser undertakes to accept the aforesaid options by no later than
the Terminal Date.  The Purchaser hereby
irrevocably and unconditionally undertakes, that, in the event that it shall
not have obtained the written approval of the Competition Authorities by no
later than the Terminal Date, to dispose of as many Western Areas Shares as
shall be necessary  to ensure that the
Purchaser shall not own or control, whether directly or indirectly, voting
rights attaching to more than 34,9% (thirty four comma nine percent) of the
ordinary shares in the issued share capital of the Company after the acceptance
of the options.  Without limiting the
generality of the foregoing, nothing in this clause 13.7.1 shall entitle
the Purchaser to extend the Terminal Date and/or to delay the payment of the
full purchase consideration to JCI Gold and/or the Seller to any date which
shall be later than the Terminal Date; and

13.7.2.                                       the Purchaser shall be responsible for making
the requisite application in accordance with the Competition Act (and the
regulations promulgated thereunder) and for the preparation and lodging of all
documents in connection therewith and each of JCI, JCI Gold and the Seller
shall render to the Purchaser all reasonable assistance in connection with such
application.  The costs (including all
legal costs) of and incidental to such application and any filing and
administrative fees payable to the Competition Commission and/or the
Competition Tribunal shall be borne and paid by the Purchaser.

 25
 

 

 

13.8.                                     For purposes of clarity, the Purchaser shall
only be entitled to exercise all of the aforesaid options and not just
1 (one) of them.

13.9.                                     Should any of the offers be accepted in
accordance with clauses 13 (Call Options)
and 14 (Put Options) then all risk in and
benefit (apart from any voting rights in respect thereof which shall only vest
in the Purchaser upon acquisition of the aforesaid shares) attaching to the JCI
Gold Shares and the Remaining Seller’s Shares shall be deemed to have passed to
the Purchaser with the effect from the Date of Signature Hereof.

13.10.                               In the event that the Seller and JCI Gold
receive  the written notice referred to
in clause 13.2 and the Purchaser does not acquire the Remaining Seller’s
Shares and the JCI Gold Shares in accordance with this clause 13 (Call Options), then:-

13.10.1.                                 the Seller shall be deemed to have offered the
Remaining Seller’s Shares to the Purchaser; 
and

13.10.2.                                 JCI Gold shall be deemed to have offered
the JCI Gold Shares to the Purchaser.

13.11.                               The Seller and JCI Gold can compel the
Purchaser in writing to accept the offers referred to in clause 13.10
during the period commencing 91 (ninety one) days after the Purchaser’s
Notification Date and terminating 10 (ten) days thereafter.

13.12.                               The consideration for the JCI Gold Shares and
the Remaining Seller’s Shares shall be the identical consideration referred to
previously in this clause 13 (Call Options)
against the Seller and JCI Gold complying with the identical obligations as are
stipulated in clause 13.6. 
Implementation of the transactions contemplated in this
clause 13.12 shall take place 10 (ten) Business Days after the Purchaser
has accepted the relevant offers.

 26
 

 

 

14.              PUT OPTIONS

14.1.                                     The Seller and JCI Gold shall, subject to
clause 14.2.2, at any stage during the Three Month Period be entitled to
collectively notify the Purchaser in writing (“Notification Date”) that it is considering compelling the
Purchaser to purchase from:-

14.1.1.                                       the Seller, the Remaining Seller’s Shares;  and

14.1.2.                                       JCI Gold, the JCI Gold Shares.

14.2.                                     Should -

14.2.1.                                       the Notification Date occur prior to the
Purchaser’s Notification Date then the Purchaser shall not be entitled to
deliver the notice referred to in clause 13.2; and

14.2.2.                                       the Purchaser’s Notification Date occur prior
to the Notification Date then JCI Gold and the Seller shall not be entitled to
deliver the notice referred to in clause 14.1.

14.3.                                     Should the Seller and JCI Gold deliver the
notice referred to in clause 14.1 then the Purchaser shall be deemed to
have offered to acquire the:-

14.3.1.                                       Remaining Seller’s Shares from the Seller; and

14.3.2.                                       JCI Gold Shares from JCI Gold.

14.4.                                     The aforesaid offers shall be open for
acceptance in writing for a period of 90 (ninety) days (subject to
clause 14.7) from the Notification Date. 
JCI Gold and the Seller undertake not to accept the aforesaid offers
during the first 60 (sixty) days of the abovementioned 90 (ninety)
day period.

 27
 

 

 

14.5.                                     Should JCI Gold and the Seller accept the
offers during the time period contemplated in clause 14.4 read with 14.7,
then by no later than 10 (ten) Business Days after the date on which the
aforesaid offers have been accepted the Purchaser shall discharge the purchase
price in respect of the JCI Gold Shares and the Remaining Seller’s Shares by
ensuring that the appropriate entries in Gold Fields Limited’s Sub-Registers of
Security Holders is made by the relevant CSDP reflecting that :-

14.5.1.                                       the Seller is the registered holder of the
Seller’s Consideration;  and

14.5.2.                                       JCI Gold is the registered holder of the
JCI Gold Consideration.

14.6.                                     Simultaneously with the Purchaser complying
with is obligation in -

14.6.1.                                       clause 14.5.1, the Seller shall ensure
that the appropriate entries in the Company’s Sub-Registers of Securities
Holders is made by the relevant CSDP reflecting that the Purchaser is the
registered holder of the Remaining Seller’s Shares;  and

14.6.2.                                       clause 14.5.2, JCI Gold shall ensure
that the appropriate entries in the Company’s Sub-Registers of Securities
Holders is made by the relevant CSDP reflecting that the Purchaser is the
registered holder of the JCI Gold Shares.

14.7.                                     Should the acceptance of the offers
contemplated in this clause 14 (Put Options)
require, in the reasonable opinion of the Purchaser, any approvals in terms of
the Competition Act, then:-

14.7.1.                                       the Purchaser shall be entitled to give written
notice suspending the acceptance of the offer referred to in
clause 14.4  for a period of up to
120 (one hundred and twenty) days after the date that the offer has been
accepted (“120 Day Date”).  In

 28
 

 

the
event that the Purchaser extends the date referred to in clause 14.4 in
accordance with this clause 14.7.1 then –

14.7.1.1.                                                JCI Gold and the Seller undertake to accept the
aforesaid offer on the 120 Day Date; and

14.7.1.2.                                                the Purchaser undertakes that in the event that
it shall not have obtained the written approval of the Competition Authorities
by no later than the 120 Day Date, to dispose of as  many Western Areas Shares as shall be
necessary to ensure that the Purchaser shall, whether directly or indirectly,
not own and/or control more than 34,9% (thirty four comma nine percent) of the
shares in the issued share capital of the Company after the acceptance of the
offer as contemplated in 14.7.1.1. 
Without limiting the generality of the foregoing, nothing in this
clause 14.7.1 shall entitle the Purchaser to extend the 120 Day Date
and/or to delay the payment of the full purchase consideration to JCI Gold
and/or the Seller to any date which shall be later than the 120 Day Date; and

14.7.2.                                       the Purchaser shall be responsible for making
the requisite application in accordance with the Competition Act (and the
regulations promulgated thereunder) and for the preparation and lodging of all
documents in connection therewith and each of JCI, JCI Gold and the Seller
shall render to the Purchaser all reasonable assistance in connection with such
application.  The costs (including all
legal costs) of and incidental to such application and any filing and
administrative fees payable to the Competition Commission and/or the
Competition Tribunal shall be borne and paid by the Purchaser.

14.8.                                     In order for Seller or JCI Gold to accept
the offers contemplated in this clause 14 (Put Options)
each one of them must accept their offer.

 29
 

 

 

14.9.                                     In the event that the Purchaser receives the
written notice referred to in clause 14.1 and the Purchaser does not
acquire the Remaining Seller’s Shares and the JCI Gold Shares in
accordance with this clause 14 (Put Options),
then:-

14.9.1.                                       the Seller shall be deemed to have offered the
Remaining Seller’s Shares to the Purchaser; 
and

14.9.2.                                       JCI Gold shall be deemed to have offered
the JCI Gold Shares to the Purchaser.

14.10.                               The offers referred to in clause 14.9
shall be open for acceptance during the period 
commencing 91 (ninety one) days after the Notification Date and
terminating 10 (ten) days thereafter.

14.11.                               Should the Purchaser accept the aforesaid
offers during the time period stipulated in clause 14.10, then the
consideration for the JCI Gold Shares and the Remaining Seller’s Shares shall
be the identical consideration referred to previously in clauses 13 (Call Options) and 14 (Put Options)
against the Seller and JCI Gold complying with the identical obligations as are
stipulated in clauses 14.6. 
Implementation of the transactions contemplated in this clause 14.11
shall take place 10 (ten) Business Days after the Purchaser has accepted the
relevant offers.

14.12.                               For purposes of clarity, in order for the
Purchaser to accept the offers contemplated in clauses 14.9, 14.10 and
14.11 it must accept the offers in respect of all of the Remaining Seller’s
Shares and the JCI Gold Shares.

15.               THE SELLER’S WARRANTIES  

The Seller hereby warrants to the Purchaser from the Date of Signature
Hereof until the Remaining Seller’s Shares have been acquired by the Purchaser
in accordance with clauses 13 (The Purchaser’s Call
Options) and 14 (Put Options):-

 30
 

 

 

15.1.                                     the Seller is and will remain the sole
beneficial owner of the Remaining Seller’s Shares;

15.2.                                     the Remaining Seller’s Shares are and will
remain free of any encumbrances and that the Seller will be able to transfer to
the Purchaser beneficial and registered ownership of the Remaining Seller’s
Shares;

15.3.                                     it shall not transfer to any Entity (other than
the Purchaser) the Remaining Seller’s Shares or any voting rights in respect
thereof; and

15.4.                                     it shall not grant to any person (other than
the Purchaser) any right (including any option or right of first refusal) to
acquire the Remaining Seller’s Shares or any voting rights in respect thereof.

16.               JCI GOLD’S UNDERTAKINGS

JCI Gold warrants to the Purchaser that from the Date of Signature
Hereof until the JCI Gold Shares  have
been acquired by the Purchaser in accordance with clauses 13 (The Purchaser’s Call Options) and 14 (Put Options):-

16.1.                                     JCI Gold is and will remain the sole beneficial
owner of the JCI Gold Shares;

16.2.                                     the JCI Gold Shares are and will remain free of
any encumbrances and that JCI Gold will be able to transfer to the Purchaser
beneficial and registered ownership of the JCI Gold Shares;

16.3.                                     it shall not transfer to any Entity (other than
the Purchaser) the JCI Gold Shares or any voting rights in respect thereof; and

16.4.                                     it shall not grant to any person (other than
the Purchaser) any right (including any option or right of first refusal) to
acquire the JCI Gold Shares or any voting rights in respect thereof.

17.               PURCHASER’S WARRANTIES

The
Purchaser warrants to –

 31
 

 

 

17.1.                                     the Seller from the Date of Signature Hereof
until the Seller’s Consideration has been acquired by the Seller in accordance
with clauses 13 (Call Options) and
14 (Put Options) –

17.1.1.                                       the Seller’s Consideration is and will remain
free of any encumbrances and that Gold Fields Limited will be able to transfer
the Seller’s Consideration and registered ownership of the Seller’s
Consideration to the Seller; and

17.1.2.                                       no person will have any right (including any
option or right of first refusal) to acquire the Seller’s Consideration.

17.2.                                     JCI Gold from the Date of Signature Hereof
until the JCI Gold Consideration has been acquired by JCI Gold in accordance
with clauses 13 (Call Options) and
14 (Put Options) –

17.2.1.                                       the JCI Gold Consideration is and will remain
free of any encumbrances and that Gold Fields Limited will be able to transfer
the JCI Gold Consideration and registered ownership of the JCI Gold
Consideration to JCI Gold; and

17.2.2.                                       no person will have any right (including any
option or right of first refusal) to acquire the JCI Gold Consideration.

18.               UNDERTAKINGS

JCI undertakes:-

18.1.                                     to procure that the Seller shall pass all resolutions
and do all that is necessary as soon as is reasonably practicable in regard to
what is contemplated in this Transaction No. 2 including, without
limitation, any section 228 resolutions as contemplated in the Act;  and

18.2.                                     to convene any meetings as soon as reasonably
practicable to obtain the necessary shareholder consents and any consents
required by the JSE Securities Exchange South Africa Listings Requirements in
regard to Transaction No. 2.

 32
 

 

 

19.               TRANSACTION NO. 2 BREACH

If any Party (“Breaching Party”) breaches any material
provision or term of this Part III (other than those which contain their own
remedies or limit the remedies in the event of a breach thereof) and fails to
remedy such breach within 20 (twenty) Business Days of receipt of written
notice from the non-breaching Party (the “Non-Breaching
Party”) requiring it to do so (or if it is not reasonably possible
to remedy the breach within 20 (twenty) Business Days, within such further
period as may be reasonable in the circumstances (the onus of
demonstrating such reasonableness being on the Breaching Party) provided that
the Breaching Party also furnishes evidence within the period of 5 (five) Business Days, reasonably
satisfactory to the Non-Breaching Party, that it has taken whatever steps are
available to it, to commence remedying the breach) then the Non-Breaching Party
shall be entitled without notice, in addition to any other remedy available to
it at law or under Part III, including obtaining an interdict, to cancel
Transaction No. 2 as contained in this Part III read with Part IV or to
claim specific performance of any obligation whether or not the due date for
performance has arrived, in either event without prejudice to the Non-Breaching
Party’s right to claim damages.

PART IV –
GENERAL AGREEMENT

20.               MANDATORY OFFER AND SRP INDEMNITY

20.1.                                     In the event that the Purchaser, Gold Fields
Limited or any Entity Acting In Concert with the Purchaser and/or Gold Fields
Limited concludes a transaction/s that result/s in an Affected Transaction
occurring, Gold Fields Limited undertakes to the Seller that it will make a
mandatory offer to the shareholders of the Company as contemplated in
Rule 8 of the SRP Code.

20.2.                                     If, as a result of the acquisition of any
Western Areas Shares by Gold Fields Limited, the Purchaser and/or any Entity
Acting In Concert (save for the Seller, JCI and JCI Gold if the Seller, JCI or
JCI Gold is deemed for any reason to be Acting In Concert with the Purchaser
and/or Gold Fields Limited) with Gold Fields Limited and/or the Purchaser,
results in the Seller, JCI and/or JCI Gold being obliged to extend a mandatory
offer to the shareholders of the Company as contemplated in Rule 8.2 of
the SRP Code, Gold Fields Limited hereby

 33
 

 

indemnifies
and holds harmless the Seller, JCI and JCI Gold against any costs, losses,
claims, damages and/or expenses made against or suffered by any of them and
arising from or in connection with the obligation of the Purchaser or Gold
Fields Limited acting either alone or in concert with any other party, to make
a mandatory offer to any party in terms of the SRP code and/or the failure by
the Purchaser or Gold Fields Limited to make such mandatory offer and/or to
take all steps required in respect of and/or in connection therewith.

21.               CONFIDENTIALITY

21.1.                                     Each Party shall keep confidential and shall
not disclose to any person, without the prior written consent of the other
Parties all information (the “Confidential
Information”) –

21.1.1.                                       contained in the Agreements as well as all
details of the transactions or agreements contemplated in the Agreements; and

21.1.2.                                       relating to the business/es or the operations
and affairs of the Parties and/or their Subsidiaries,

21.2.                                     The Parties agree to keep all Confidential
Information secret and confidential and to disclose it only to their employees,
directors, officers, agents, professional advisors and/or contractors who –

21.2.1.                                       have a need to know, and to that extent only;

21.2.2.                                       are aware of the disclosing Party’s undertaking
in relation to such Confidential Information in terms of the Agreements; and

21.2.3.                                       have been directed by the disclosing Party to
keep the Confidential Information confidential and have undertaken, in writing,
to keep the Confidential Information confidential.

 34
 

 

 

21.3.                                     The obligations of the Parties in relation to
the Confidential Information do not extend to information that –

21.3.1.                                       is known to be in the lawful possession or
control of the person to whom it is disclosed and is not subject to an
obligation of confidentiality;

21.3.2.                                       is or becomes public knowledge, otherwise than
in terms of a breach of the Agreements; and

21.3.3.                                       is required by the provisions of any law,
statute,  regulation, rules of any stock
exchange, or during any court proceedings and the Party required to make the
disclosure has taken all reasonable steps to ensure that, where reasonably
possible, the Confidential Information is not further disclosed by the person
to whom disclosure is made in terms of this clause 21.3.3.

21.4.                                     Without limiting the remaining provisions of
the Agreements, each Party to the Agreements agrees to return to the other
Parties, copies of all documents, handwritten notes, computer discs and other
formats in which Confidential Information is stored (irrespective of which
Party prepared or produced same), together with a certificate confirming that
no part of the Confidential Information has been retained, unless the other
Party agrees otherwise in writing.

22.               GOLD FIELDS LIMITED’S RIGHT TO NOMINATE

By
giving notice in writing to that effect to the other Parties at any time prior
to the Transaction No. 1 Implementation Date, Gold Field Limited shall
have the right to nominate one of its Subsidiaries (“Nominated
Party”) to replace it under the Agreements and acquire all or part
of its rights and obligations under the Agreements (if Gold Fields Limited
elects to cede and delegate only some of its rights and obligations under the
Agreements to the Nominated Party then Gold Fields Limited shall notify the
other Parties in the aforesaid written notice which rights and obligations it
is ceding and delegating to the Nominated Party), on the basis that:-

 35
 

 

 

22.1.                                     such written notice
shall designate the Nominated Party (whose domicilium for
purposes of the Agreements shall remain that specified in
clause 28.1.1));  and

22.2.                                     the Nominated Party
shall (subject to what is stated above) assume all of the rights and
obligations of Gold Fields Limited in terms of the Agreements.

23.               SURETYSHIP BY GOLD FIELDS LIMITED

In the event that Gold Fields
Limited elects to cede and delegate all or some of its obligations to the
Nominated Party in accordance with clause 22 (Gold Fields
Limited’s Right to Nominate), then Gold Fields Limited hereby agrees
to bind itself to the other Parties as surety for and co-principal debtor in solidum with the Nominated Party for all of the Nominated
Party’s obligations under the Agreements, subject to the following conditions:-

23.1.                                     Gold Fields Limited renounces the benefits of
excussion and division;

23.2.                                     no indulgence, latitude or extension of time
which may be granted or allowed to the Nominated Party shall in any way affect
Gold Fields Limited’s liabilities hereunder; and

23.3.                                     all acknowledgments of debt, admissions or
liability and judgments by or against the Nominated Party shall be binding on
Gold Fields Limited.

24.               SURETYSHIP BY JCI

JCI hereby binds itself to the
other Parties as surety for and co-principal debtor in solidum
with the Seller and JCI Gold for all of the Seller’s and JCI Gold’s obligations
under the Agreements, subject to the following conditions:-

24.1.                                     JCI renounces the benefits of excussion and
division;

 36
 

 

 

24.2.                                     no indulgence, latitude or extension of time
which may be granted or allowed to the Seller or JCI Gold shall in any way
affect JCI’s liabilities hereunder; and

24.3.                                     all acknowledgments of debt, admissions or
liability and judgments by or against the Seller or JCI Gold shall be
binding on JCI.

25.               LOCK UP

25.1.                                     It is recorded
that :

25.1.1.                                       the Purchaser
intends in writing to announce an offer to acquire the entire issued share
capital of the Company (the “Offer”).  The terms of the Offer are set out in the
draft announcement annexed hereto as Annexure B;

25.1.2.                                       the SRP Executive
Director has indicated that if JCI, the Seller or JCI Gold shall be entitled to
dispose of the Gold Fields Limited’s Shares and/or the Gold Fields Limited’s
shares to be received pursuant to the put and call options set out in
clause 13 (Call Options) and 14 (Put Options) (the “Option Shares”),
or any of such shares before the date on which offerees in terms of the Offer
shall be entitled to receive Gold Fields Limited’s shares pursuant to their
acceptance of and/or implementation of the Offer, the SRP will regard the issue
of the Gold Fields Limited Shares and the Option Shares as a cash offer
requiring a similar cash offer to be made to all minority shareholders of the
Company; and

25.1.3.                                       Gold Fields Limited
is not prepared to make a cash offer to minority shareholders of the Company.

25.2.                                     Accordingly JCI,
the Seller and JCI Gold, hereby undertake to the Purchaser:-

25.2.1.                                       that they will hold
the Gold Fields Limited Shares and the Option Shares until the date upon which
shareholders of the Company shall be entitled to receive Gold

 37
 

 

Fields Limited shares pursuant to the implementation
of the agreement arising from the Offer;

25.2.2.                                       in the event that
they, or any of them, shall enter into any form of hedging arrangements, in
respect of the Gold Fields Limited Shares, or any of them, the party which
shall so enter into such hedging arrangements hereby undertakes not to deliver
the Gold Fields Limited Shares or the Option Shares or any of them, to any such
counter party to such hedging arrangements until the date upon which the
offerees in terms of the offer shall be entitled to receive Gold Fields Limited’s
shares pursuant to implementation of the Offer

25.3.                                     In the event that
the Offer does not become unconditional or lapses or Gold Fields Limited makes
a cash offer or the SRP provides a written opinion stating that Gold Fields
Limited will not be required to make a cash offer should JCI, JCI Gold and the
Seller be released from the undertakings set out in clause 25.2, the
undertakings contained in this clause 25 (Lock Up)
shall cease to be of force and effect and each of the Seller, JCI Gold and JCI
shall be entitled at its or their election and at any time to dispose of the
Gold Fields Limited shares or any of them.

26.               SPECIFIC PERFORMANCE

Each
of the Parties acknowledges that it may be difficult or even impossible to measure
in money the damages that will arise from the failure of another Party to
perform any of its obligations under this Part IV. Cancellation of any of
the Agreement/s is not a remedy available should any breach take place in
respect of this Part IV, the Parties agree that it shall be competent for
any Party to bring an action for specific performance of the provisions of this
Part IV and the Parties waive their rights to claim or raise as a defence
that an alternative adequate remedy exists at law.

 38
 

 

 

27.               WHOLE AGREEMENT, NO AMENDMENT

27.1.                                     This document constitutes the whole agreement
between the Parties relating to the subject matter hereof and supersedes any
other discussions, agreements and/or understandings regarding the subject
matter hereof.

27.2.                                     No amendment or consensual cancellation of any
of the Agreements or any provision or term hereof or of any agreement, bill of
exchange or other document issued or executed pursuant to or in terms of the
Agreement/s and no settlement of any disputes arising under any Agreement/s and
no extension of time, waiver or relaxation or suspension of or agreement not to
enforce or to suspend or postpone the enforcement of any of the provisions or
terms of the Agreement/s or of any agreement, bill of exchange or other document
issued pursuant to or in terms of the Agreement/s shall be binding unless
recorded in a written document signed by the Parties (or in the case of an
extension of time, waiver or relaxation or suspension, signed by the Party
granting such extension, waiver or relaxation). 
Any such extension, waiver or relaxation or suspension which is so given
or made shall be strictly construed as relating strictly to the matter in
respect whereof it was made or given.

27.3.                                     No oral pactum
de non petendo shall be of any force or effect.

27.4.                                     No extension of time or waiver or relaxation of
any of the provisions or terms of the Agreement/s or any agreement, bill of
exchange or other document issued or executed pursuant to or in terms of the
Agreement/s, shall operate as an estoppel against any Party in respect of its
rights under the Agreement/s, nor shall it operate so as to preclude such Party
thereafter from exercising its rights strictly in accordance with the
Agreement/s.

27.5.                                     To the extent permissible by law no Party shall
be bound by any express or implied term, representation, warranty, promise or
the like not recorded herein, whether it induced the contract and/or whether it
was negligent or not.

 39
 

 

 

28.               DOMICILIA CITANDI ET EXECUTANDI

28.1.                                     The Parties choose as their domicilia citandi et executandi for all
purposes under the Agreement/s, whether in respect of court process, notices or
other documents or communications of whatsoever nature (including the exercise
of any option), the following addresses :

28.1.1.                                    Gold Fields Limited:

Physical:       24 St Andrews Road Parktown

Telefax:         011 484 4882

28.1.2.                                       JCI Limited:

Physical:      13th Floor,
28 Harrison Street, Johannesburg

Telefax:        011 492
1070

28.1.3.                                       JCI Investment Finance  (Proprietary) Limited

Physical:      13th Floor, 28
Harrison Street, Johannesburg

Telefax:        011 492
1070

28.1.4.                                       JCI Gold Limited

Physical:      13th Floor, 28 Harrison Street,
Johannesburg

Telefax:        011 492 1070

28.2.                                     Any notice or communication required or
permitted to be given in terms of the Agreement/s shall be valid and effective
only if in writing but it shall be competent to give notice by telefax.

28.3.                                     Any Party may by notice to the other Parties
change the physical address chosen as its domicilium
citandi et executandi to another physical address in South Africa or
its telefax number, provided that the change shall become effective on the 10th (tenth) Business Day from the deemed
receipt of the notice by the other Parties.

 40
 

 

 

28.4.                                     Any notice to a Party -

28.4.1.                                       delivered by hand to a responsible person
during ordinary business hours at the physical address chosen as its domicilium citandi et executandi shall be
deemed to have been received on the day of delivery; or

28.4.2.                                       sent by telefax to its chosen telefax number
stipulated in clause 28.1, shall be deemed to have been received on the
date of despatch (unless the contrary is proved).

28.5.                                     Notwithstanding anything to the contrary herein
contained a written notice or communication actually received by a Party shall
be an adequate written notice or communication to it notwithstanding that it
was not sent to or delivered at its chosen domicilium
citandi et executandi.

29.               NO CESSION OR ASSIGNMENT

Save
as expressly provided in this document no Party shall be entitled to cede their
rights or assign their rights and obligations hereunder to any third party
without the prior consent of the other Parties.

30.               COSTS

30.1.                                     The Purchaser shall
pay the stamp duty in respect of the registration of transfer of the Sold
Shares into the Purchaser’s name.

30.2.                                     The Purchaser shall
pay the stamp duty in respect of the transfer of the Remaining Seller’s Shares and the JCI Gold Shares, if it acquires
same.

31.               COUNTERPARTS

This document may be executed
in counterparts, each of which shall together constitute one and the same
instrument.

 41
 

 

 

32.               LEGAL COSTS

Each party to bear its own
legal costs in connection with the preparation, negotiating and entering into
of this document (including prior drafts and consultations).

SIGNED by the parties and witnessed on the following dates and at the
following places respectively:

	
  DATE

  	
   

  	
  PLACE

  	
   

  	
  WITNESS

  	
   

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   1.

  	
   

  	
  For: GOLD FIELDS LIMITED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   2.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   1.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   2.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1.

  	
   

  	
  For: JCI LIMITED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1.

  	
   

  	
  For: JCI INVESTMENT FINANCE 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (PROPRIETARY) LIMITED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1.

  	
   

  	
  For: JCI GOLD LIMITED

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 42

 

Annexure A – Investec’s
Undertakings

 

	
  

  
	
  INVESTEC BANK
  LIMITED’S IRREVOCABLE UNDERTAKING  1.
  It is recorded that Gold Fields Limited, (Registration
  No. 1968/004880/06) (the “Purchaser”), JCI Limited, (Registration
  No. 1894/000854/06) (“JCI”), JCI Investment Finance (Proprietary)
  Limited, (Registration No. 2004/005665/07) (“SPV Co”) and JCI Gold Limited
  (Registration No. 1998/005215/06) (the “Parties”) are entering into an
  agreement on or about the date of signature of this irrevocable undertaking
  (the “Date of Signature”) in terms of which, inter alia:  1.1. SPV Co (the “Seller”) is selling 27
  000 000 (twenty seven million) ordinary shares with a par value of R1.00 each
  (the “Sold Shares”) in Western Areas Limited’s (the “Company”) issued share
  capital, which are currently held by SPV Co, to the Purchaser. The Purchaser
  is discharging the purchase price for the Sold Shares by issuing to the
  Seller 9 450 000 ordinary shares with a par value of R0.50 (fifty cents) each
  in its share capital (“Gold Fields Limited Shares”). Furthermore, the
  Purchaser undertakes to the Seller that if during the period commencing on
  the date upon which Transaction No. 2 (as defined below) becomes
  unconditional and terminating three months thereafter it enters into any
  transaction to acquire any shares in the Company’s issued share capital
  (“Additional Western Areas Shares”) from any entity other than the Seller
  (“Additional Entity”) and utilises as consideration ordinary shares in its
  share capital and the ratio of the number of issued shares in the Purchaser’s
  share capital which it issues to an Additional Entity divided by the number
  of Additional Western Areas Shares (“Additional Entity’s Ratio”) is greater
  than the Sale Ratio (as defined below), then the Purchaser undertakes to deliver
  to the Seller, as soon as is reasonably practicable, such number of ordinary
  shares in its share capital which will result in the Sale Ratio being equal
  (or as close to being equal as is possible) to the Additional Entity’s Ratio.
  If the Purchaser utilises cash or any other form of consideration or a
  combination of both and the cash value of the consideration offered per share
  in the Company’s share capital (“Western Areas Share”) (calculated at the
  date that the offer is made) is greater than R50,75 (fifty rand and seventy
  five cents) per Western Areas Share (the “Cash Consideration”), then the
  Purchaser undertakes to deliver to the Seller, as soon as is reasonably
  practicable, such number of ordinary shares in its share capital which is
  equal to (or as close to being equal as is possible) the difference between
  the Cash Consideration and R50,75 (fifty rand and seventy five cents) per
  Western Areas share. The transaction contemplated in this paragraph 1.1 is
  hereinafter referred to as (“Transaction No. 1”). Furthermore, the number of
  Gold Fields Limited Shares divided by the number of Sold Shares is
  hereinafter referred to as the (“Sale Ratio”);  1.2. the Seller and JCI Gold have granted
  the Purchaser an option to acquire all the remaining ordinary shares which
  the Seller and JCI Gold hold in the Company’s issued share capital (the
  “Remaining Western Area Shares”). For purposes of clarity, the Remaining
  Western Area Shares are all of the shares in the Company’s issued share
  capital which the Seller and JCI Gold currently hold, other than the Sold
  Shares;  1.3. the Purchaser has granted
  the Seller and JCI Gold an option to put all of the Remaining Western Area
  Shares to the Purchaser (the transactions contemplated in paragraphs 1.2 and
  this paragraph 1.3 are hereinafter referred to as “Transaction No. 2”).  2. Should either of the options
  contemplated in Transaction No. 2 be exercised then the Purchaser shall
  discharge the purchase price for the relevant shares by issuing to JCI such
  number of ordinary shares with a par value of R0.50 (fifty cents) each in its
  share capital which will result in such discharge equalling the Sale Ratio or
  as close to the Sale Ratio as is reasonably practicable.  3. We, Investec Bank Limited (Registration
  No. 1969/004763/06) (“Investec”) hereby – 
  3.1. consent to the sale of the Sold Shares;  3.2. undertake to do anything that may be
  required of ourselves in order to give effect to the sale of the Sold Shares
  and the Remaining SPV Co Shares (including, without limitation, releasing SPV
  Co, JCI Gold and JCI from any security in respect of the Sold Shares and the
  Remaining SPV Co Shares); and  3.3.
  waive any claims or security of any nature whatsoever which we may have
  against or hold over any of the Parties in respect of the sale of the Sold
  Shares and the Remaining SPV Co Shares.

  

 

	
  

  
	
  3.4. undertake
  not to cede any of our claims of whatsoever nature against the Seller, JCI
  Gold and JCI Limited to any third party prior to the date that Transaction No
  2 is implemented.  4. Each of the
  undertakings given in paragraph 3 above are given to each of the Parties and
  shall be capable of being accepted and being enforced by any of the
  Parties.  /s/ [ILLEGIBLE] For Investec
  Bank Limited (who warrants that he is duly authorised hereto)

  

 

Annexure B – The Draft Announcement

 

	
  

  
	
  Gold Fields
  Limited (Reg. No. 1968/004880/06) (Incorporated in the Republic of South
  Africa) JSE Share Code : GFI

  NYSE Share Code: GFI ISIN Code : ZAE000018123 (“Gold Fields” or the
  “Company”)  Offer by Gold Fields to acquire
  the entire issued share capital of Western Areas Limited (“Western Areas”)
  and cautionary announcement 
  1.   Introduction 
  Gold Fields shareholders are advised that Gold Fields has undertaken
  to the Board of Directors of Western Areas to make an offer to the Western
  Areas shareholders to acquire the entire issued share capital of Western
  Areas (other than those shares already owned by Gold Fields), subject to the
  fulfilment of the conditions precedent reflected in paragraph 4 (the
  “Offer”). Gold Fields currently holds 18% of the issued share capital of
  Western Areas.  The Offer will be
  implemented by way of a general offer in terms of section 440 et seq of the
  Companies Act (Act 61 of 1973) as amended (the “Act”) to which there will be
  no condition as to a minimum level of acceptances.  Gold Fields may, however, subject to the
  approval of the Western Areas Board, implement the Offer by way of a scheme
  of arrangement (the “Scheme”) in terms of Section 311 of the Act should Gold
  Fields deem it appropriate.  If the
  Offer is accepted by all Western Areas shareholders, Gold Fields will own the
  entire share capital of Western Areas and it is intended that the listing of
  the ordinary shares in Western Areas (the “Western Areas shares”) on the JSE
  Limited (the “JSE”) will be terminated. 
  Western Areas’ largest asset is its 50% interest in the South Deep
  Gold Mine (“South Deep”), which is currently owned and operated through the
  Barrick Gold Western Areas Joint Venture, an unincorporated entity in which
  Barrick Gold South Africa (Proprietary) Limited (“BGSA”) holds the other 50%.
  Gold Fields’ shareholders are referred to a separate announcement published
  today relating to Gold Fields’ acquisition of BGSA.  2   The Offer
  Consideration  In terms of the Offer,
  Western Areas shareholders will receive 35 ordinary shares with a par value
  of 50 cents each in the capital of Gold Fields (“Gold Fields shares”) for
  every 100 Western Areas shares in respect of which the Offer has been
  accepted. Based on the closing price of Gold Fields shares on 7 September
  2006, namely R150.20 per share, this represents a value of R52.57 per Western
  Areas share. The consideration represents a premium of 16.82% to the closing
  price of Western Areas on 7 September 2006. This consideration is based on
  the

  

 

	
  

  
	
  amount payable
  by Gold Fields for BGSA’s 50% interest in South Deep, adjusted for the
  additional assets and liabilities of Western Areas.  3   Rationale  The acquisition by Gold Fields of Western
  Areas allows Gold Fields to increase its exposure to South Deep, which is
  adjacent to Gold Fields’ Kloof Gold Mine. South Deep will secure Gold Fields’
  position as the premier gold producer in South Africa, and one of the leading
  producers in the world. South Deep is a natural fit with the Gold Fields’
  portfolio of high quality, long life assets, providing Gold Fields with a
  solid base from which to pursue its existing commitment to international
  growth.  4   Condition
  Precedent  The Offer is subject to
  certain regulatory approvals, including the granting of the requisite
  approvals by the JSE and the Competition Authorities in South Africa.  5.   Cautionary and further
  announcement  A further announcement
  setting our the salient dates and times and financial effects of the Offer on
  the shareholders of Gold Fields will be made in due course. Shareholders are
  advised to exercise caution when trading in the Company’s securities until
  such time as such further announcement is made.  Parktown 11 September 2006  Sponsor to Gold Fields: JPMorgan  Financial advisers to Gold Fields JPMorgan
  Citigroup  Legal advisers to Gold
  Fields Edward Nathan Linklaters

  

 

Annexure C – Irrevocable
Undertakings

	
  

  
	
  10 September
  2006  Peter Gray Chief Executive
  Officer JCI Limited 3rd Floor 28 Harrison Street Johannesburg 2001  Dear Peter 
  ALLAN GRAY LIMITED’S IRREVOCABLE UNDERTAKING  1.It is recorded that Gold Fields Limited, (Registration
  No.1968/004880/06) (the “Purchaser”), JCI Limited, (Registration
  No.1894/000854/06) (“JCI”), JCI Investment Finance (Proprietary) Limited, (Registration
  No. 2004/005665/07) (“SPV Co”) and JCI Gold Limited (Registration No.
  1998/005215/06) (the “Parties”) are entering into an agreement on or about
  the date of signature of this irrevocable undertaking (the “Date of
  Signature”) in terms of which, inter alia: 
  1.1.SPV Co (the “Seller”) is selling 27 000 000 (twenty seven
  million) ordinary shares with a par value of R1.00 each (the “Sold Shares”)
  in Western Areas Limited’s (the “Company”) issued share capital, which are
  currently held by SPV Co, to the Purchaser. The Purchaser is discharging the
  purchase price for the Sold Shares by issuing to the Seller 9 450 000
  ordinary shares with a par value of R0.50 (fifty cents) each in its share
  capital (“Gold Fields Limited Shares”). Furthermore, the Purchaser undertakes
  to the Seller that if during the period commencing on the date upon which
  Transaction No. 2 (as defined below) becomes unconditional and terminating
  three months thereafter it enters into any transaction to acquire any shares
  in the Company’s issued share capital (“Additional Western Areas Shares”)
  from any entity other than the Seller (“Additional Entity”) and utilises as
  consideration ordinary shares in its share capital and the ratio of the
  number of issued shares in the Purchaser’s share capital which it issues to
  an Additional Entity divided by the number of Additional Western Areas Shares
  (“Additional Entity’s Ratio”) is greater than the Sale Ratio (as defined
  below), then the Purchaser undertakes to deliver to the Seller, as soon as is
  reasonably practicable, such number of ordinary shares in its share capital
  which will result in the Sale Ratio being equal (or as close to being equal
  as is possible) to the Additional Entity’s Ratio. If the Purchaser utilises
  cash or any other form of consideration or a combination of both and the cash
  value of the consideration offered per share in the Company’s share capital
  (“Western Areas Share”) (calculated at the date that the offer is made) is
  greater than R50,75 (fifty rand and seventy five cents) per Western Areas
  Share (the “Cash Consideration”), then the Purchaser undertakes to deliver to
  the Seller, as soon as is reasonably practicable, such number of ordinary
  shares in its share capital which is equal to (or as close to being equal as
  is possible) the difference between the Cash Consideration and R50.75 (fifty
  rand and seventy five cents) per Western Areas share. The transaction
  contemplated in this paragraph 1.1 is hereinafter referred to as
  (“Transaction No. 1”). Furthermore, the number of Gold Fields Limited Shares
  divided by the number of Sold  Allan Gray Limited is an authorised Financial Services provider.
   Allan Gray
  Limited Directors: S C Mildenhall B Com (Hons) CA (SA) CFA Registration
  Number 1992/006778/06 G W Fury LLB MA CFA W J C Mitchell B Com Granger Bay
  Court, Beach Road A W B Gray B Com CA (SA) MBA CFA Hon LLD* S Moodley-Moore
  BA (Hons) MA PhD V&A Waterfront, Cape Town 8001 W B Gray B Com MBA CFA (Irish)*
  F J van der Merwe LLB MA* P O Box 51318 V&A Waterfront E D Loxton B Com
  (Hons) MBA * Non-Executive Cape Town 8002 South Africa J A Lugtenburg M Com
  CA (SA) CFA  Docex 16 V&A
  Waterfront S C Marais PhD CFA* Company Secretary: Tel 021 415 2300 Fax 021
  415 2400 A A McGregor B Sc BA (Hons) C J Hetherington B Com CA (SA) Email
  info@allangray.co.za www.alliangray.co.za  

  

 

 

	
  

  
	
  Shares is
  hereinafter referred to as the (“Sale Ratio”);  1.2. 
  the Seller and JCI Gold have granted the Purchaser an option to
  acquire all the remaining ordinary shares which the Seller and JCI Gold hold
  in the Company’s issued share capital (the “Remaining Western Area Shares”).
  For purposes of clarity, the Remaining Western Area Shares are all of the
  shares in the Company’s issued share capital which the Seller and JCI Gold
  currently hold, other than the Sold Shares; 
  1.3  the Purchaser has granted
  the Seller and JCI Gold an option to put all of the Remaining Western Area
  Shares to the Purchaser (the transactions contemplated in paragraphs 1.2 and
  this paragraph 1.3 are hereinafter referred to as “Transaction No. 2”).  2. 
  Should either of the options contemplated in Transaction No. 2 be
  exercised then the Purchaser shall discharge the purchase price for the
  relevant shares by issuing to JCI such number of ordinary shares with a par
  value of R0.50 (fifty cents) each in its share capital which will result in
  such discharge equalling the Sale Ratio or as close to the Sale Ratio as is
  reasonably practicable.  3.  We confirm that, as at 8 September 2006,
  third party clients (“clients”) that have appointed Allan Gray Limited
  (“Allan Gray”) as their portfolio manager hold in aggregate 516 283 264
  shares in JCI Limited in respect of 226 701 644 of which Allan Gray has an
  absolute discretion to vote on behalf of each such client (“Allan gray
  shares”); and in respect of 289 581 620 of which the relevant clients retain
  the discretion to vote the shares (“Allan Gray client shares”).  3.1 
  In respect of the Allan Gray Shares, we hereby irrevocably undertake
  (subject to 4 and 5 below) to vote in favour of–  3.1.1. 
  a shareholders resolution at the general meeting of JCI (“JCI General
  Meeting”) approving the sale of the Sold Shares;  3.1.2. 
  all resolutions that are put to the shareholders of JCI at the JCI
  General Meeting which are required to approve Transaction No.1 and Transaction
  No.2;  3.1.3.  the entering into of appropriate hedging
  structures and/or agreements by JCI, from time to time, as determined in the
  discretion of the directors, in respect of the Gold Fields Limited Shares, or
  any of them, which will be issued to the Seller in terms of respectively
  Transaction No. 1 and Transaction No.2, in order to preserve the value to JCI
  of the consideration received in respect of the Western Areas Shares sold by
  the Seller;  3.2.  In respect of the Allan Gray Client Shares,
  we hereby irrevocably undertake (subject to 4 and 5 below) that we will
  recommend to our clients to vote in favour of –  3.2.1. 
  a shareholders resolution at the general meeting of JCI approving the
  sale of the Sold Shares;  3.2.2.  all resolutions that are put to the
  shareholders of JCI at the JCI General Meeting which are required to approve
  Transaction No. 1 and Transaction No.2; 
  3.2.3.  the entering into of
  appropriate hedging structures and/or agreements by JCI, from time to time,
  as determined in the discretion of the directors, in respect of the Gold
  Fields Limited Shares, or any of them, which will be issued to the Seller in
  terms of respectively Transaction No. 1 and Transaction No. 2, in order to
  preserve the value to JCI of the consideration received in respect of the
  Western Areas Shares sold by the Seller; 
  3.3.  we will not dispose of the
  Allan Gray Shares nor the Allan Gray Client Shares nor any voting rights in
  respect thereof prior to –

  

 

 

	
  

  
	
  3.3.1.  the JCI General Meeting; and  3.3.2. 
  having received written notice from the Purchaser and JCI that
  Transaction No. 1 has become unconditional in accordance with its terms;  3.4. 
  we will not vote in favour of any resolution to dispose of the Sold
  Shares to any third party prior to JCI General Meeting;  3.5. 
  we will act in good faith and take all necessary steps including,
  without limitation, the exercise of all voting rights which we are able to
  exercise to influence the implementation of Transaction No. 1 and Transaction
  No. 2;  3.6.  without derogating from anything contained
  herein, to take all such actions as the Purchaser may reasonably require to
  give effect to this undertaking including without limitation the granting of
  a proxy or letter of representation in favour of the Purchaser to vote at the
  JCI General Meeting in respect of the Allan Gray Shares.  4. 
  This irrevocable undertaking is subject to and conditional upon the
  continuing mandate of our clients on the same terms as presently in
  effect.  5.  This irrevocable undertaking, including specifically
  the undertakings contained in clauses 3.1 to 3.6 above, will be valid until 1
  December 2006 whereafter it will expire. 
  /s/ S.C. Mildenhall S.C. Mildenhall Chief Investment Officer  For Allan Gray Limited (who warrants that
  he is duly authorised hereto)

  

 

 

	
  

  
	
  TOP FLITE ASSET
  MANAGEMENT IRREVOCABLE UNDERTAKING 
  1.  It is recorded that Gold
  Fields Limited, (Registration No. 1988/004880/06) or a wholly owned
  subsidiary (the “Purchaser”), JCI Limited, (Registration No. 1894/000854/06)
  (“JCI”), JCI Investment Finance (Proprietary) Limited, (Registration No.
  2004/005665/07) (“SPV Co”) and JCI Gold Limited (Registration No.
  1998/005215/06) (the “Parties”) are entering into an agreement on or about
  the date of signature of this irrevocable undertaking (the “Date of
  Signature”) in terms of which, inter alia: 
  1.1.  SPV Co (the “Seller”) is
  selling 27 000 000 (twenty seven million) ordinary shares with a par value of
  R1.00 each (the “Sold Shares”) in Western Areas Limited’s (the “Company”)
  issued share capital, which are currently held by SPV Co, to the Purchaser.
  The Purchaser is discharging the purchase price for the Sold Shares by
  issuing to the Seller 8 450 000 ordinary shares with a par value of R0.50
  (fifty cents) each in its share capital (“Gold Fields Limited Shares”).
  Furthermore, the Purchaser undertakes to the Seller that if during the period
  commencing on the date upon which Transaction No. 2 (as defined below)
  becomes unconditional and terminating three months thereafter it enters into
  any transaction to acquire any shares in the Company’s issued share capital
  (“Additional Western Areas Shares”) from any entity other than the Seller
  (“Additional Entity”) and utilises as consideration ordinary shares in its
  share capital and the ratio of the number of issued shares in the Purchaser’s
  share capital which it issues to an Additional Entity divided by the number
  of Additional Western Areas Shares (“Additional Entity’s Ratio”) is greater
  then the Sale Ratio (as defined below), then the Purchaser undertakes to
  deliver to the Seller, as soon as is reasonably practicable, such number of
  ordinary shares in its share capital which will result in the Sale Ratio
  being equal (or as close to being equal as is possible) to the Additional
  Entity’s Ratio. If the Purchaser utilises cash or any other form of
  consideration or a combination of both and the cash value of the
  consideration offered per share in the Company's share capital (“Western
  Areas Share”) (calculated at the date that the offer is made) is greater than
  R50.75 (fifty rand and seventy five cents) per Western Areas Share (the “Cash
  Consideration”), then the Purchaser undertakes to deliver to the Seller, as
  soon as is reasonably practicable, such number of ordinary shares in its
  share capital which is equal to (or as close to being equal as is possible)
  the difference between the Cash Consideration and R50.75 (fifty  rand and seventy five cents) per Western
  Areas share. The transaction contemplated in this paragraph 1.1 is
  hereinafter referred to as (“Transaction No. 1”). Furthermore, the number of
  Gold Fields Limited Shares divided by the number of Sold Shares is
  hereinafter referred to as the (“Sale Ratio”);  1.2. 
  the Seller and JCI Gold have granted the Purchaser an option to
  acquire all the remaining ordinary shares which the Seller and JCI Gold hold
  in the Company’s issued share capital (the “Remaining Western Area Shares”).
  For purposes of clarity, the Remaining Western Area Shares are all of the
  shares in the Company’s issued share capital which the Seller and JCI Gold
  currently hold, other than the Sold Shares; 
  1.3.  the Purchaser has granted
  the Seller and JCI Gold an option to put all of the Remaining Western Areas
  Shares to the Purchaser (the transactions contemplated in paragraphs 1.2 and
  this paragraph 1.3 are hereinafter referred to as “Transaction No. 2”).  2. 
  Should either of the options contemplated in Transaction No. 2 be exercised
  then the Purchaser shall discharge the purchase price for the relevant shares
  by issuing to JCI such number of ordinary shares with a par value of R0.50
  (fifty cents) each in its Shares capital which will result in such discharge
  equalling the Sale Ratio or as close to the Sale Ratio as is reasonably
  practicable.  3.  We, Top Flite Asset Management (“Top
  Flite”) confirm that as at 8 September 2006, third party clients that have
  appointed Top Flite as there portfolio manager hold in aggregate 5,000,000
  ordinary shares in JCI in respect of which Top Flite has an absolute
  discretion to vote on behalf of each such client (“Client Shares”). In
  addition Top Flite currently is the beneficial owner of 10,000,000 ordinary
  shares in JCI’s issued share capital (“Top Flite Shares”).  3.1. 
  In respect of the Client Shares and the Top Flite Shares we hereby
  irrevocably undertake to vote favour of - 
  3.1.1.  a shareholders
  resolution at the general meeting of JCI (“JCI General Meeting”) approving
  the sale of the Sold Shares;

  

 

 

	
  

  
	
  3.1.2. all
  resolutions that are put to the shareholders of JCI at the JCI General Meeting
  which are required to approve Transaction No. 1 and Transaction No 2;  3.1.3. the entering into of appropriate
  hedging structures and/or agreements by JCI, from time to time, as determined
  in the discretion of the directors, in respect of the Gold Fields Limited
  Shares, or any of them, which will be issued to the Seller in terms of
  respectively Transaction No. 1 and Transaction No. 2, in order to
  preserve the value to JCI of the consideration received in respect of the
  Western Areas Shares sold by the Seller; 
  3.2. We will not prior to 1 December 2006 dispose of the Top Flite
  Shares or any voting rights in respect thereof.  3.3. We will not vote in favour of any
  resolution to dispose of the Sold Shares to any third party prior to JCI
  General Meeting;  3.4. We will act in
  good faith and take all necessary steps including, without limitation, the
  exercise of all voting rights which we are able to exercise to influence the
  implementation of Transaction No. 1 and Transaction No. 2;  3.5. without derogating from anything
  contained herein, to take all such actions as the Purchaser may reasonable
  require to give effect to this undertaking including without limitation the
  granting of a proxy or letter representation in favour of the Purchaser to
  vote at the JCI General Meeting.  /s/
  RT Ririe For Top Flite Asst Management (who warrants that he is duly
  authorised hereto)  /s/ RT Ririe RT
  Ririe 10/9/2006

  

 

 

	
  

  
	
  TOP-GOLD AG
  MVK’S IRREVOCABLE UNDERTAKING  1.
  It is recorded that Gold Fields Limited, (Registration No. 1968/004880/06) or
  a wholly owned subsidiary (the “Purchaser”), JCI Limited, (Registration No.
  1894/000854/06) (“JCI”), JCI Investment Finance (Proprietary) Limited,
  (Registration No. 2004/005665/07) (“SPV Co”) and JCI Gold Limited
  (Registration No. 1998/005215/06) (the “Parties”) are entering into an
  agreement on or about the date of signature of this irrevocable undertaking
  (the “Date of Signature”) in terms of which, inter alia:  1.1. SPV Co (the “Seller”) is selling 27
  000 000 (twenty seven million) ordinary shares with a par value of R1.00 each
  (the “Sold Shares”) in Western Areas Limited’s (the ”Company”) issued
  share capital, which are currently held by SPV Co, to the Purchaser. The
  Purchaser is discharging the purchase price for the Sold Shares by issuing to
  the Seller 9 450 000 ordinary shares with a par value of R0.50 (fifty cents)
  each in its share capital (“Gold Fields Limited Shares”). Furthermore, the
  Purchaser undertakes to the Seller that if during the period commencing on
  the date upon which Transaction No. 2 (as defined below) becomes
  unconditional and terminating three months thereafter it enters into any
  transaction to acquire any shares in the Company’s issued share capital
  (“Additional Western Areas Shares”) from any entity other than the Seller
  (“Additional Entity”) and utilises as consideration ordinary shares in its
  share capital and the ratio of the number of issued shares in the Purchaser’s
  share capital which it issues to an Additional Entity divided by the number
  of Additional Western Areas Shares (“Additional Entity’s Ratio”) is greater
  than the Sale Ratio (as defined below), then the Purchaser undertakes to
  deliver to the Seller, as soon as is reasonably practicable, such number of
  ordinary shares in its share capital which will result in the Sale Ratio
  being equal (or as close to being equal as is possible) to the
  Additional Entity’s Ratio. If the Purchaser utilises cash or any other form
  of consideration or a combination of both and the cash value of the
  consideration offered per share in the Company’s share capital (“Western
  Areas Share”) (calculated at the date that the offer is made) is greater than
  R50.75 (fifty rand) per Western Areas Share (the “Cash Consideration”), then
  the Purchaser undertakes to deliver to the Seller, as soon as is reasonably
  practicable, such number of ordinary shares in its share capital which is
  equal to (or as close to being equal as is possible) the difference between
  the Cash Consideration and R50,00 (fifty rand) per Western Areas share. The
  transaction contemplated in this paragraph 1.1 is hereinafter referred to as
  (“Transaction No. 1”). Furthermore, the number of Gold Fields Limited Shares
  divided by the number of Sold Shares is hereinafter referred to as the (“Sale
  Ratio”);  1.2. the Seller and JCI Gold
  have granted the Purchaser an option to acquire all the remaining ordinary
  shares which the Seller and JCI Gold hold in the Company’s issued share
  capital (the “Remaining Western Area Shares”). For purposes of clarity, the
  Remaining Western Area Shares are all of the shares in the Company’s issued
  share capital which the Seller and JCI Gold currently hold, other than the
  Sold Shares;  1.3. the Purchaser has
  granted the Seller and JCI Gold an option to put all of the Remaining Western
  Area Shares to the Purchaser (the transactions contemplated in paragraphs 1.2
  and this paragraph 1.3 are hereinafter referred to as “Transaction No.
  2”).  2. Should either of the options
  contemplated in Transaction No. 2 be exercised then the Purchaser shall
  discharge the purchase price for the relevant shares by issuing to JCI such
  number of ordinary shares with a par value of R0.50 (fifty cents) each in its
  share capital which will result in such discharge equalling the Sale Ratio or
  as close to the Sale Ratio as is to the reasonably practicable.  3. We, Top-Gold AG MVK (“Top-Gold”) hereby
  irrevocably undertake in favour of the Parties that –  3.1. we currently hold 20 000 000 (twenty
  million) ordinary shares in JCI’s issued share capital (the “Top-Gold
  Shares”);  3.2. we will vote in favour
  of –  3.2.1. a shareholders resolution
  at the general meeting of JCI (“JCI General Meeting”) approving the sale of
  the Sold Shares;  3.2.2. all
  resolutions that are put to the shareholders of JCI at the JCI General
  Meeting which are required to approve Transaction No. 1 and Transaction
  No. 2;

  

 

 

	
  

  
	
  3.2.3. the
  entering into of appropriate hedging structures and/or agreements by JCI,
  from time to time, as determined in the discretion of the directors, in
  respect of the Gold Fields Limited Shares, or any of them, which will be
  issued to the Seller in terms of respectively Transaction No. 1 and
  Transaction No. 2, in order to preserve the value to JCI of the consideration
  received in respect of the Western Areas Shares sold by the Seller;  3.3. we will not dispose of the Top-Gold
  Shares or any voting rights in respect thereof prior to –  3.3.1. the JCI General Meeting; and  3.3.2. having received written notice from
  the Purchaser and JCI that Transaction No. 1 has become unconditional in
  accordance with its terms;  3.4. we
  will not vote in favour of any resolution to dispose of the Sold Shares to
  any third party prior to JCI General Meeting; 
  3.5. we will act in good faith and take all necessary steps including,
  without limitation, the exercise of all voting rights which we are able to
  exercise to influence the implementation of Transaction No. 1 and Transaction
  No. 2;  3.6. on the Date of Signature,
  the date on which the JCI General Meeting will be held and the date on which
  we receive the written notice referred to in paragraph 3.3.2, we are and will
  be the sole registered and beneficial owner of the Top-Gold Shares and will
  be reflected in the register of members of JCI as the sole owner thereof
  and  3.7. without derogating from
  anything contained herein, to take all such actions as the Purchaser may
  reasonably require to give effect to this undertaking including without
  limitation the granting of a proxy or letter representation in favour of the
  Purchaser to vote at the JCI General Meeting.   /s/ [ILLEGIBLE] CEO For Top-Gold AG MVK
  (who warrants that she is duly authorised hereto) 

  

 

 

	
  

  
	
  LETSENG
  DIAMONDS LIMITED’S IRREVOCABLE UNDERTAKING 
  1. It is recorded that Gold Fields Limited, (Registration No.
  1968/004880/06) (the “Purchaser”), JCI Limited, (Registration No.
  1894/000854/06) (“JCI”), JCI Investment Finance (Proprietary) Limited,
  (Registration No. 2004/005665/07) (“SPV Co”) and JCI Gold Limited
  (Registration No. 1998/005215/06) (the “Parties”) are entering into an
  agreement on or about the date of signature of this irrevocable undertaking
  (the “Date of Signature”) in terms of which, inter alia:  1.1. SPV Co (the “Seller”) is selling 27
  000 000 ordinary shares with a par value of R1.00 each (the “Sold Shares”) in
  Western Areas Limited’s (the “Company”) issued share capital, which are
  currently held by SPV Co, to the Purchaser. The Purchaser is discharging the
  purchase price for the Sold Shares by issuing to the
  Seller 9 450 000 ordinary shares with a par value of R0.50
  (fifty cents) each in its share capital (“Gold Fields Limited Shares”).
  Furthermore, the Purchaser undertakes to the Seller that if during the period
  commencing on the date upon which Transaction No. 2 (as defined below)
  becomes unconditional and terminating three months thereafter it enters into
  any transaction to acquire any shares in the Company’s issued share
  capital (“Additional Western Areas Shares”) from any entity other than
  the Seller (“Additional Entity”) and utilises as consideration ordinary
  shares in its share capital and the ratio of the number of issued shares in
  the Purchaser’s share capital which it issues to an Additional Entity divided
  by the number of Additional Western Areas Shares (“Additional Entity’s
  Ratio”) is greater than the Sale Ratio (as defined below), then the Purchaser
  undertakes to deliver to the Seller, as soon as is reasonably practicable,
  such number of ordinary shares in its share capital which will result in the
  Sale Ratio being equal (or as close to being equal as is possible) to the
  Additional Entity’s Ratio. If the Purchaser utilises cash or any other form
  of consideration or a combination of both and the cash value of the
  consideration offered per share in the Company’s share capital (“Western
  Areas Share”) (calculated at the date that the offer is made) is greater than
  R50,75 (fifty rand and seventy five cents) per Western Areas Share (the “Cash
  Consideration”), then the Purchaser undertakes to deliver to the Seller, as
  soon as is reasonably practicable, such number of ordinary shares in its share
  capital which is equal to (or as close to being equal as is possible) the
  difference between the Cash Consideration and R50,75 (fifty rand and seventy
  five cents) per Western Areas share. The transaction contemplated in this
  paragraph 1.1 is hereinafter referred to as (“Transaction No. 1”).
  Furthermore, the number of Gold Fields Limited Shares divided by the number
  of Sold Shares is hereinafter referred to as the (“Sale Ratio”);  1.2. the Seller and JCI Gold have granted
  the Purchaser an option to acquire all the remaining ordinary shares which
  the Seller and JCI Gold hold in the Company’s issued share capital (the
  “Remaining Western Area Shares”). For purposes of clarity, the Remaining
  Western Area Shares are all of the shares in the Company’s issued share
  capital which the Seller and JCI Gold currently hold, other than the Sold
  Shares;  1.3. the Purchaser has granted
  the Seller and JCI Gold an option to put all of the Remaining Western Area
  Shares to the Purchaser (the transactions contemplated in paragraphs 1.2 and
  this paragraph 1.3 are hereinafter referred to as “Transaction No. 2”).  2. Should either of the options
  contemplated in Transaction No. 2 be exercised then the Purchaser shall
  discharge the purchase price for the relevant shares by issuing to JCI such
  number of ordinary shares with a par value of R0.50 (fifty cents) each in its
  share capital which will result in such discharge equalling the Sale Ratio or
  as close to the Sale Ratio as is reasonably practicable.  3. We Letseng Diamonds Limited
  (Registration No. 31750) (“Letseng”) hereby irrevocably undertake in favour
  of the Parties that –  3.1. we are
  currently the registered holders of 177 455 884 (hundred and seventy seven
  million four hundred and fifty five thousand and eight hundred and eighty
  four) ordinary shares in JCI’s issued share capital (the “Letseng
  Shares”);  3.2. we will vote in favour
  of –  3.2.1. a shareholders resolution
  at the general meeting of JCI (“JCI General Meeting”) approving the sale of
  the Sold Shares and the shares in Transaction No. 2;

  

 

	
  

  
	
  3.2.2. the
  entering into of appropriate hedging structures and/or agreements by JCI,
  from time to time, as determined in the discretion of the directors, in
  respect of the Gold Fields Limited Shares, or any of them, which will be
  issued to the Seller in terms of respectively Transaction No. 1 and
  Transaction No. 2, in order to preserve the value to JCI of the consideration
  received in respect of the Western Areas Shares sold by the Seller;  3.3. we will not for a period of 3 (three)
  months from date hereof dispose of or agree to dispose of the Letseng Shares
  or any voting rights in respect thereof prior to –  3.3.1. the JCI General Meeting; and  3.3.2. having received written notice from
  the Purchaser and JCI that Transaction No. 1 has become unconditional in
  accordance with its terms;  without
  binding all subsequent registered holders to this irrevocable undertaking who
  shall forthwith on acquiring the shares provide the Parties hereto with an
  undertaking on the same terms as this undertaking;  3.4. we will act in good faith;  3.5. should we not be in a position to
  attend any JCI General Meeting relating to the sale of the shares referred to
  in clause 3.2 we will appoint a proxy to vote in accordance with this
  undertaking;  4. I, Montague
  Koppel,  4.1. hereby irrevocably
  undertake in favour of the Parties that all of the undertakings set out in
  paragraph 3 above –  4.1.1. are
  correct; and  4.1.1 capable of being
  fulfilled.  /s/ Monty Koppel for
  Letseng Diamonds Limited (who warrants that he is duly authorised
  hereto)   /s/ Monty Koppel Monty Koppel

  

 

	
  

  
	
  HAWKHURST
  INVESTMENT LIMITED’S IRREVOCABLE UNDERTAKING 
  1.  It is recorded that Gold
  Fields Limited, (Registration No. 1968/004880/06) (the “Purchaser”), JCI
  Limited, (Registration No. 1894/000854/06) (“JCI”), JCI Investment
  Finance (Proprietary) Limited, (Registration No. 2004/005665/07) (“SPV
  Co”) and JCI Gold Limited (Registration No. 1998/005215/06) (the
  “Parties”) are entering into an agreement on or about the date of signature of
  this irrevocable undertaking (the “Date of Signature”) in terms of which,
  inter alia:  1.1.  SPV Co (the “Seller”) is selling 27 000 000
  ordinary shares with a par value of R1.00 each (the “Sold Shares”) in Western
  Areas Limited’s (the “Company”) issued share capital, which are currently
  held by SPV Co, to the Purchaser.  The
  Purchaser is discharging the purchase price for the Sold Shares by issuing to
  the Seller 9 450,000 ordinary shares with a par value of R0.50 (fifty cents)
  each in its share capital (“Gold Fields Limited Shares”). Furthermore, the
  Purchaser undertakes to the Seller that if during the period commencing on
  the date upon which Transaction No. 2 (as defined below) becomes
  unconditional and terminating three months thereafter it enters into any
  transaction to acquire any shares in the Company’s issued share capital
  (“Additional Western Areas Shares”) from any entity other than the Seller
  (“Additional Entity”) and utilises as consideration ordinary shares in its
  share capital and the ratio of the number of issued shares in the Purchaser’s
  share capital which it issues to an Additional Entity divided by the number
  of Additional Western Areas Shares (“Additional Entity’s Ratio”) is greater
  than the Sale Ratio (as defined below), then the Purchaser undertakes to
  deliver to the Seller, as soon as is reasonably practicable, such number of
  ordinary shares in its share capital which will result in the Sale Ratio
  being equal (or as close to being equal as is possible) to the Additional
  Entity’s Ratio. If the Purchaser utilises cash or any other form of
  consideration or a combination of both and the cash value of the
  consideration offered per share in the Company’s share capital (“Western
  Areas Share”) (calculated at the date that the offer is made) is greater than
  R50,75 (fifty rand and seventy five cents) per Western Areas Share (the “Cash
  Consideration”), then the Purchaser undertakes to deliver to the Seller, as
  soon as is reasonably practicable, such number of ordinary shares in its
  share capital which is equal to (or as close to being equal as is possible)
  the difference between the Cash Consideration and R50,75 (fifty rand and
  seventy five cents) per Western Areas share. The transaction contemplated in
  this paragraph 1.1 is hereinafter referred to as (“Transaction No.1”).
  Furthermore, the number of Gold Fields Limited Shares divided by the number
  of Sold Shares is hereinafter referred to as the (“Sale Ratio”);  1.2. 
  the Seller and JCI Gold have granted the Purchaser an option to
  acquire all the remaining ordinary shares which the Seller and JCI Gold hold
  in the Company’s issued share capital (the “Remaining Western Area Shares”).
  For purposes of clarity, the Remaining Western Area Shares are all of the
  shares in the Company’s issued share capital which the Seller and JCI Gold
  currently hold, other than the Sold Shares; 
  1.3.  the Purchaser has granted
  the Seller and JCI Gold an option to put all of the Remaining Western Area
  Shares to the Purchaser (the transactions contemplated in paragraphs 1.2 and
  this paragraph 1.3 are hereinafter referred to as “Transaction
  No. 2”).  2.  Should either of the options contemplated
  in Transaction No. 2 be exercised then the Purchaser shall discharge the
  purchase price for the relevant shares by issuing to JCI such number of
  ordinary shares with a par value of R0.50 (fifty cents) each in its share
  capital which will result in such discharge equalling the Sale Ratio or as
  close to the Sale Ratio as is reasonably practicable.  3. 
  We Hawkhurst Investments Limited, (Registration
  No. 1959/003209/06) (“Hawkhurst”) hereby irrevocably undertake in favour
  of the Parties that –  3.1.  we are currently the registered holders of
  212 165 628 (two hundred and twelve million one hundred and sixty five
  thousand six hundred and twenty eight) ordinary shares in JCI’s issued share
  capital (the “Hawkhurst Shares”); 
  3.2.  we will vote in favour of
  –  3.2.1.  a shareholders resolution at the general
  meeting of JCI (“JCI General Meeting”) approving the sale of the Sold Shares
  and the shares in Transaction No 2,

  

 

 

	
  

  
	
  3.2.2.  the entering into of appropriate hedging
  structures and/or agreements by JCI, from time to time, as determined in the
  discretion of the directors, in respect of the Gold Fields Limited Shares, or
  any of them, which will be issued to the Seller in terms of respectively
  Transaction No. 1 and Transaction No. 2, in order to preserve the
  value to JCI of the consideration received in respect of the Western Areas
  Shares sold by the Seller;  3.3.  we will not for a period of 3 (three)
  months from date hereof dispose of or agree to dispose of the Hawkhurst
  Shares or any voting rights in respect thereof prior to –  3.3.1. 
  the JCI General Meeting; and 
  3.3.2.  having received written
  notice from the Purchaser and JCI that Transaction No. 1 has become
  unconditional in accordance with its terms; 
  without binding all subsequent registered holders to this irrevocable
  undertaking who shall forthwith on acquiring the shares provide the Parties
  hereto with an undertaking on the same terms as this undertaking,  3.4. 
  we will act in good faith; 
  3.5.  should we not be in a
  position to attend any JCI General Meeting relating to the sale of the shares
  referred to in clause 3.2 we will appoint a proxy to vote in accordance with
  this undertaking.  4.  I, Montague Koppel,  4.1. 
  hereby irrevocably undertake in favour of the Parties that all of the
  undertakings set out in paragraph 3 above – 
  4.1.1.  are correct; and
  4.1.2.  capable of being
  fulfilled.  /s/ Montague Koppel for
  Hawkhurst Investments Limited (who warrants that he is duly authorised
  hereto)   /s/ Montague Koppel Montague
  Koppel 

  

 

	
  

  
	
  RANDGOLD &
  EXPLORATION COMPANY LIMITED’S IRREVOCABLE UNDERTAKING  1. 
  It is recorded that Gold Fields Limited, (Registration
  No. 1968/004880/06) or a wholly owned subsidiary (the “Purchaser”), JCI
  Limited, (Registration No. 1894/000854/06) (“JCI”), JCI Investment
  Finance (Proprietary) Limited, (Registration No. 2004/005665/07) (“SPV
  Co”) and JCI Gold Limited (Registration No. 1998/005215/06) (the
  “Parties”) are entering into an agreement on or about the date of signature
  of this irrevocable undertaking (the “Date of Signature”) in terms of which,
  inter alia:  1.1  SPV Co (the “Seller”) is selling 27 000 000
  (twenty seven million) ordinary shares with a par value of R1.00 each (the
  “Sold Shares”) in Western Areas Limited’s (the “Company”) issued share
  capital, which are currently held by SPV Co, to the Purchaser.  The Purchaser is discharging the purchase
  price for the Sold Shares by issuing to the Seller 9 450 000 ordinary shares
  with a par value of R0.50 (fifty cents) each in its share capital (“Gold
  Fields Limited Shares”). Furthermore, the Purchaser undertakes to the Seller
  that if during the period commencing on the date upon which Transaction No. 2
  (as defined below) becomes unconditional and terminating three months
  thereafter it enters into any transaction to acquire any shares in the
  Company’s issued share capital (“Additional Western Areas Shares”) from any
  entity other than the Seller (“Additional Entity”) and utilises as
  consideration ordinary shares in its share capital and the ratio of the
  number of issued shares in the Purchaser’s share capital which it issues to
  an Additional Entity divided by the number of Additional Western Areas Shares
  (“Additional Entity’s Ratio”) is greater than the Sale Ratio (as defined
  below), then the Purchaser undertakes to deliver to the Seller, as soon as is
  reasonably practicable, such number of ordinary shares in its share capital
  which will result in the Sale Ratio being equal (or as close to being equal
  as is possible) to the Additional Entity’s Ratio. If the Purchaser utilises
  cash or any other form of consideration or a combination of both and the cash
  value of the consideration offered per share in the Company’s share capital
  (“Western Areas Share”) (calculated at the date that the offer is made) is
  greater than R50,75 (fifty rand and seventy five cents) per Western Areas
  Share (the “Cash Consideration”), then the Purchaser undertakes to deliver to
  the Seller, as soon as is reasonably practicable, such number of ordinary
  shares in its share capital which is equal to (or as close to being equal as
  is possible) the difference between the Cash Consideration and R50,75 (fifty
  rand and seventy five cents) per Western Areas share. The transaction
  contemplated in this paragraph 1.1 is hereinafter referred to as
  (“Transaction No.1”). Furthermore, the number of Gold Fields Limited Shares
  divided by the number of Sold Shares is hereinafter referred to as the (“Sale
  Ratio”);  1.2  the Seller and JCI Gold have granted the
  Purchaser an option to acquire all the remaining ordinary shares which the
  Seller and JCI Gold hold in the Company’s issued share capital (the
  “Remaining Western Area Shares”). For purposes of clarity, the Remaining
  Western Area Shares are all of the shares in the Company’s issued share
  capital which the Seller and JCI Gold currently hold, other than the Sold
  Shares;  1.3  the Purchaser has granted the Seller and
  JCI Gold an option to put all of the Remaining Western Area Shares to the
  Purchaser (the transactions contemplated in paragraphs 1.2 and this paragraph
  1.3 are hereinafter referred to as “Transaction No. 2”).  2. 
  Should either of the options contemplated in Transaction No. 2 be
  exercised then the Purchaser shall discharge the purchase price for the
  relevant shares by issuing to JCI such number of ordinary shares with a par
  value of R0.50 (fifty cents) each in its share capital which will result in
  such discharge equalling the Sale Ratio or as close to the Sale Ratio as is
  reasonably practicable.  3.  We, Randgold & Exploration Company
  Limited (Registration No. 1992/005642/06) (“Randgold”) hereby
  irrevocably undertake in favour of the Parties that –  3.1. 
  we currently hold 89 526 009 (eighty nine million five hundred and
  twenty six thousand and nine) ordinary shares in JCI’s issued share capital
  (the “Randgold Shares”);  3.2.  we will vote in favour of –  3.2.1. 
  a shareholders resolution at the general meeting of JCI (“JCI General
  Meeting”) approving the sale of the Sold Shares;

  

 

 

	
  

  
	
  3.2.2.  all resolutions that are put to the
  shareholders of JCI at the JCI General Meeting which are required to approve
  Transaction No. 1 and Transaction No. 2;  3.2.3. 
  the entering into of appropriate hedging structures and/or agreements
  by JCI, from time to time, as determined in the discretion of the directors,
  in respect of the Gold Fields Limited Shares, or any of them, which will be
  issued to the Seller in terms of respectively Transaction No. 1 and
  Transaction No. 2, in order to preserve the value to JCI of the
  consideration received in respect of the Western Areas Shares sold by the
  Seller;  3.3.  we will not dispose of the Randgold Shares
  or any voting rights in respect thereof prior to –  3.3.1. 
  the JCI General Meeting; and 
  3.3.2.  having received written
  notice from the Purchaser and JCI that Transaction No. 1 has become
  unconditional in accordance with its terms; 
  3.4.  we will not vote in favour
  of any resolution to dispose of the Sold Shares to any third party prior to
  JCI General Meeting;  3.5.  we will act in good faith and take all
  necessary steps including, without limitation, the exercise of all voting
  rights which we are able to exercise to influence the implementation of
  Transaction No. 1 and Transaction No. 2;  3.6 
  on the Date of Signature, the date on which the JCI General Meeting
  will be held and the date on which we receive the written notice referred to
  in paragraph 3.3.2, we are and will be the sole registered and beneficial
  owner of the Randgold Shares and will be reflected in the register of members
  of JCI as the sole owner thereof’ and 
  3.7  without derogating from
  anything contained herein, to take all such actions as the Purchaser may
  reasonable require to give effect to this undertaking including without
  limitation the granting of a proxy or letter representation in favour of the
  Purchaser to vote at the JCI General Meeting 
  /s/ [ILLEGIBLE] For Randgold & Exploration Company Limited
  (who warrants that she is duly authorised hereto)

  

 

 

TABLE OF
CONTENTS

	
  CLAUSE NUMBER AND
  DESCRIPTION

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  PART I

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.

  	
  INTERPRETATION AND PRELIMINARY

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  PART II – TRANSACTION NO. 1

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  2.

  	
  TRANSACTION NO. 1 CONDITIONS PRECEDENT

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  SALE OF THE SOLD SHARES

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  EXCHANGE CONSIDERATION AND DISCHARGE OBLIGATION

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  IMPLEMENTATION

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  VOTING IN RESPECT OF THE SOLD SHARES

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  JCI’S WARRANTIES AND UNDERTAKINGS

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  WARRANTIES AND REPRESENTATIONS

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  GOLD FIELDS LIMITED’S WARRANTIES AND REPRESENTATIONS

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  PURCHASER’S UNDERTAKING

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  TRANSACTION NO. 1 BREACH

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  PART III – TRANSACTION NO. 2

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  12.

  	
  TRANSACTION NO. 2 CONDITION PRECEDENT

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  CALL OPTIONS

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  PUT OPTIONS

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  THE SELLER’S WARRANTIES

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  JCI GOLD’S UNDERTAKINGS

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  PURCHASER’S WARRANTIES

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  UNDERTAKINGS

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  TRANSACTION NO. 2 BREACH

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  PART IV – GENERAL AGREEMENT

  	
   

  	
  33

  
	
   

  	
   

  	
   

  
	
  20.

  	
  MANDATORY OFFER AND SRP INDEMNITY

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  CONFIDENTIALITY

  	
   

  	
  34

  

 

 

 

	
  22.

  	
  GOLD FIELDS LIMITED’S RIGHT TO NOMINATE

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
  SURETYSHIP BY GOLD FIELDS LIMITED

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
  SURETYSHIP BY JCI

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
  LOCK UP

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
  SPECIFIC PERFORMANCE

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
  WHOLE AGREEMENT, NO AMENDMENT

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
  DOMICILIA CITANDI ET EXECUTANDI

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  29.

  	
  NO CESSION OR ASSIGNMENT

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
  30.

  	
  COSTS

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
  31.

  	
  COUNTERPARTS

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
  32.

  	
  LEGAL COSTS

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  ANNEXURE A – INVESTEC’S UNDERTAKINGS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ANNEXURE B – THE DRAFT ANNOUNCEMENT

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ANNEXURE C – IRREVOCABLE UNDERTAKINGS

  	
   

  	
  1Exhibit 4.32

EXECUTION COPY

FACILITY AGREEMENT

dated        
November 2006

among

GOLD FIELDS LA CIMA S.A.

as Borrower

CITIGROUP GLOBAL MARKETS INC.

as Mandated Lead
Arranger

THE ROYAL
BANK OF SCOTLAND PLC

as Mandated Lead Arranger and Facility Agent

THE BANK OF NOVA SCOTIA

as Mandated Lead
Arranger

SCOTIABANK PERU S.A.A.

as Onshore
Security Agent

THE BANK OF NOVA SCOTIA TRUST
COMPANY OF NEW YORK

as Offshore
Security Trustee

and

THE
FACILITY LENDERS

MILBANK, TWEED, HADLEY &
McCLOY LLP

London

CONTENTS

	
  Clause

  	
   

  	
  Page

  
	
  SECTION 1            INTERPRETATION

  	
  2

  
	
  1.

  	
  Definitions and
  Interpretation

  	
  2

  
	
  SECTION 2            THE FACILITY

  	
  38

  
	
  2.

  	
  The Facility

  	
  38

  
	
  3.

  	
  Purpose

  	
  39

  
	
  4.

  	
  Conditions Precedent

  	
  39

  
	
  SECTION 3            UTILISATION

  	
  41

  
	
  5.

  	
  Utilisation

  	
  41

  
	
  SECTION 4            REPAYMENT, PREPAYMENT AND
  CANCELLATION

  	
  43

  
	
  6.

  	
  Repayment

  	
  43

  
	
  7.

  	
  Prepayment and
  Cancellation

  	
  43

  
	
  8.

  	
  Mandatory Prepayments

  	
  45

  
	
  SECTION 5            COSTS OF ADVANCE

  	
  47

  
	
  9.

  	
  Interest

  	
  47

  
	
  10.

  	
  Interest Periods

  	
  48

  
	
  11.

  	
  Changes to the
  Calculation of Interest

  	
  49

  
	
  SECTION 6            NOTES

  	
  51

  
	
  12.

  	
  The Notes

  	
  51

  
	
  SECTION 7            ADDITIONAL PAYMENT OBLIGATIONS

  	
  53

  
	
  13.

  	
  Tax Gross Up and Tax
  Indemnity

  	
  53

  
	
  14.

  	
  Increased Costs

  	
  55

  
	
  15.

  	
  Other Indemnities

  	
  56

  
	
  16.

  	
  Mitigation by the
  Facility Lenders

  	
  58

  
	
  17.

  	
  Fees

  	
  58

  
	
  18.

  	
  Costs and Expenses

  	
  59

  
	
  SECTION 8            REPRESENTATIONS, UNDERTAKINGS AND
  EVENTS OF DEFAULT

  	
  60

  
	
  19.

  	
  Representations

  	
  60

  
	
  20.

  	
  Information
  Undertakings

  	
  66

  
	
  21.

  	
  Positive Covenants

  	
  74

  
	
  22.

  	
  Negative Covenants

  	
  78

  
				

 

 

 

	
  23.

  	
  Security Interests

  	
  83

  
	
  24.

  	
  Events of Default

  	
  84

  
	
  25.

  	
  Remedies Following
  Default

  	
  90

  
	
  SECTION 9            CHANGES TO PARTIES

  	
  92

  
	
  26.

  	
  Changes to the Facility
  Lenders

  	
  92

  
	
  SECTION 10          ADMINISTRATION

  	
  97

  
	
  27.

  	
  Role of the Facility
  Agent

  	
  97

  
	
  28.

  	
  Conduct of Business by
  the Finance Parties

  	
  102

  
	
  29.

  	
  Sharing Among the
  Finance Parties

  	
  103

  
	
  30.

  	
  Payment Mechanics

  	
  104

  
	
  SECTION 11          MISCELLANEOUS

  	
  107

  
	
  31.

  	
  Set–off

  	
  107

  
	
  32.

  	
  Notices

  	
  107

  
	
  33.

  	
  Calculations and
  Certificates

  	
  109

  
	
  34.

  	
  Partial Invalidity

  	
  109

  
	
  35.

  	
  Remedies and Waivers

  	
  109

  
	
  36.

  	
  Confidentiality

  	
  109

  
	
  37.

  	
  Amendments and Waivers

  	
  110

  
	
  38.

  	
  Counterparts

  	
  110

  
	
  39.

  	
  Governing Law

  	
  110

  
	
  40.

  	
  Jurisdiction

  	
  111

  
	
  41.

  	
  Arbitration

  	
  111

  
	
  42.

  	
  Waiver of Sovereign
  Immunity

  	
  112

  
	
  Schedule 1

  	
  The Original Facility
  Lenders and Commitments

  	
  113

  
	
  Schedule 2

  	
  Conditions Precedent

  	
  114

  
	
  Schedule 3

  	
  Drawdown Request

  	
  120

  
	
  Schedule 4

  	
  Form of Note

  	
  121

  
	
  Schedule 5

  	
  Form of Transfer
  Certificate

  	
  122

  
	
  Schedule 6

  	
  Form of New Facility
  Lender Accession Deed

  	
  124

  
	
  Schedule 7

  	
  Form of Compliance
  Certificate

  	
  125

  
	
  Schedule 8

  	
  Insurances

  	
  126

  
	
  Schedule 9

  	
  Consents

  	
  142

  
	
             Part I

  	
   

  	
  Consents

  	
  142

  
					

 

 ii
 

 

 

	
             Part II

  	
   

  	
  Applications

  	
  146

  
	
  Schedule
  10

  	
   

  	
  Timetables

  	
  147

  
	
  Schedule
  11

  	
   

  	
  Repayment Schedule

  	
  148

  
	
  Schedule
  12

  	
   

  	
  Mandatory Cost Formulae

  	
  149

  
	
  Schedule
  13

  	
   

  	
  Concessions

  	
  151

  
	
             Part I

  	
   

  	
  Material Concessions

  	
  151

  
	
             Part II

  	
   

  	
  Other Concessions

  	
  152

  
	
  Schedule
  14

  	
   

  	
  Conditions for Issuance
  of Bonds

  	
  154

  
	
  Schedule
  15

  	
   

  	
  Document Review List

  	
  156

  

 

 iii

THIS AGREEMENT
(this “Agreement”) is dated             November
2006

AMONG:

(1)                        GOLD FIELDS LA CIMA S.A. (formerly known as Sociedad Minera La Cima S.A.), a company
incorporated under the laws of Peru registered at Entry A00001 of File 11606015
of the Companies Registry of Lima, with taxpayer number 20507028915 and
registered office at Av. Victor Andres Belaunde 147, Via Principal 155, Oficina
1401, San Isidro, Lima, Peru (the “Borrower”);

(2)                        CITIGROUP GLOBAL MARKETS INC., THE BANK OF
NOVA SCOTIA and THE ROYAL BANK OF SCOTLAND
PLC together as mandated lead arrangers
(the “Mandated Lead  Arrangers”);

(3)                        THE ROYAL BANK OF SCOTLAND PLC as Facility Agent (the “Facility Agent”);

(4)                        THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK as
Offshore Security Trustee (the “Offshore Security Trustee”);

(5)                        SCOTIABANK PERU S.A.A. as Onshore Security Agent (the “Onshore  Security Agent”);
and

(6)                        THE FINANCIAL INSTITUTIONS listed in Schedule 1 (The Original Facility Lenders) (the “Original
Facility Lenders”, each an “Original  Facility Lender”).

RECITALS:

(A)                    The Borrower
has been granted various Concessions in order to implement the Project.

(B)                      Pursuant to
a sponsor support agreement dated on or about the date of this Agreement
entered between the Borrower, the Shareholder, the Guarantor, GFL Mining
Services Limited, the Facility Agent and the Offshore Security Trustee (the “Sponsor Support Agreement”), the Shareholder will make
available certain Shareholder Contributions on the terms set out in the Sponsor
Support Agreement.

(C)                      The parties
hereto intend to raise a portion of the finance for the Project by entering
into this Agreement and the other Financing Documents.

IT IS AGREED as
follows:

 

SECTION 1

INTERPRETATION

1.          DEFINITIONS AND INTERPRETATION

1.1             DEFINITIONS

In this Agreement:

“Acceptable GFL Entity”
means (i) the Guarantor or Orogen Holding (BVI) Limited or (ii) any Affiliate
of the Guarantor (other than the Borrower or any of its subsidiaries or Orogen
Holding (BVI) Limited) which has a long term credit rating of at least A or the
equivalent thereof from Standard & Poor’s and/or at least A2 or the
equivalent thereof from Moody’s.

“Accession Deed”
means any New Facility Lender Accession Deed or any Bondholders’ Representative
Accession Deed as the case may be.

“Accounts” means the Onshore Accounts and the Offshore
Accounts.

“Account Banks”
means the Onshore Account Bank and the Offshore Account Bank.

“Accounts Management
Agreement” means the agreement so entitled entered into on or about
the date of this Agreement between the Borrower, the Account Banks, the
Offshore Security Trustee, the Onshore Security Agent and the Facility Agent.

“Advances” means
the Tranche A Advances and/or the Tranche B Advances (as from time to time
reduced by repayment) made, or to be made, by the Facility Lenders under the
Facility, each an “Advance”.

“Affiliate”
means, in relation to any person, a subsidiary of that person or a holding
company of that person or any other subsidiary of that holding company.

“Agents” means
the Offshore Security Trustee, the Onshore Security Agent and the Facility
Agent.

“Annual Operating Budget”
has the meaning given to it in Clause 20.10 (Operating
Budgets).

“Applicable Law”
means any law, regulation, rule, executive order, decree, code of practice,
circular, guidance note or injunction of, or made by, any Competent Authority,
which is binding and enforceable on or against the Borrower, the Project or the
subject matter of, or any party to, any of the Transaction Documents, as the
case may be.

“Authorised Investment”
means, with respect to any Account at any time, any of the following:

(a)                        a freely
negotiable and marketable debt security which is denominated in Dollars and
issued or guaranteed by any sovereign government or governmental agency with a
long term credit rating of at least A or the equivalent thereof by Standard
&

 2
 

 

Poor’s and at least A2 or the equivalent thereof by
Moody’s, and has a maturity of less than five (5) years from the date of
acquisition;

(b)                       demand
deposits, time deposits, certificates of deposit or other obligations
(including acceptances) maturing or capable of redemption by the holder not
more than six (6) months after the date of investment or acquisition thereof
which are issued, accepted or guaranteed by a bank with a credit rating (as
most recently published) on its outstanding senior long-term unsecured,
unguaranteed indebtedness of A or higher by Standard & Poor’s and A2 or
higher by Moody’s;

(c)                        any other
investments so long as the Borrower notifies in writing the Facility Agent of
the proposed investment and the Facility Agent acting pursuant to written
instructions from the Majority Facility Lenders, consents to such proposal; and

(d)                       money
market funds capable of redemption at any time having substantially all the
assets of which are comprised of securities of the types described in
paragraphs (a) and (b) above.

“Available Commitment”
means, in relation to a Facility Lender, at any time, its Commitment minus:

(a)                        the amount
of its participation in any outstanding Advances under the Facility at such
time; and

(b)                       in relation
to any proposed Advance under the Facility, the amount of its proposed
participation in any other Advance under the Facility that is due to be made on
or before the proposed Drawdown Date for such proposed Advance.

“Available Facility”
means, at any time, the aggregate for the time being of each Facility Lender’s
Available Commitment.

“Available Funding”
means, on any date, the aggregate (without double counting) of:

(a)                        cash and
other cash-equivalent assets of the Borrower;

(b)                       amounts
available to be drawn under the Facility on that date;

(c)                        amounts
available to be drawn under the Sponsor Support Agreement on that date;

(d)                       amounts
available through the Bonds that have been issued on or prior to that date; and

(e)                        any other
amounts which the Borrower and the Facility Agent agree are, or will be,
available to the Borrower to meet the relevant Project Costs prior to the
Financial Completion Date.

 3
 

 

“Availability Period”
means the period from (and including the date of) this Agreement to the
earliest of:

(a)                        the date
on which the amount of the Available Facility has been reduced to zero;

(b)                       the date
falling 24 months from the date of this Agreement; and

(c)                        the
Financial Completion Date.

“Base Case”
means the base case financial projections and ratios for the Project prepared
by the Borrower using the Computer Model and provided to the Facility Agent as
a condition precedent to Financial Close, based on the Base Case Assumptions
(and such other construction and operating assumptions as agreed by the
Facility Agent, acting reasonably on the advice of the Independent Technical
Consultant).

“Base Case  Assumptions” means the following assumptions on which the
Initial Mine Plan (including the Ore Reserve Report) is based, namely:

(a)                        cut-off
prices of US$375 per ounce for gold and US$0.90 per pound for copper;

(b)                       a mining
rate of 6.2 million tonnes of ore per year;

(c)                        a 15-year
mine life; and

(d)                       commodity
prices as follows:

	
  Year

  	
   

  	
  Au ($/oz)

  	
   

  	
  Cu ($/lb)

  	
   

  	
  Oil ($/bbl)

  	
   

  
	
  2005

  	
   

  	
  650

  	
   

  	
  2.59

  	
   

  	
  50

  	
   

  
	
  2006

  	
   

  	
  520

  	
   

  	
  2.25

  	
   

  	
  52

  	
   

  
	
  2007

  	
   

  	
  500

  	
   

  	
  1.40

  	
   

  	
  48.50

  	
   

  
	
  2008

  	
   

  	
  450

  	
   

  	
  1.15

  	
   

  	
  46

  	
   

  
	
  2009

  	
   

  	
  400

  	
   

  	
  1.05

  	
   

  	
  43.50

  	
   

  
	
  2010 & beyond

  	
   

  	
  400

  	
   

  	
  0.95

  	
   

  	
  40

  	
   

  

 

“Base Equity Amount”
means a Shareholder Contribution in the amount equal to (i) US$163,000,000 less
(ii) the aggregate amount contributed to the Borrower by way of equity by the
shareholders of the Borrower (other than the Shareholder) since Financial Close
pursuant to the exercise of their respective pre-emptive rights.

“Bonds” has the meaning
given to it in Clause 2.1 (The Senior Loans).

“Bonds Closing Date”
has the meaning given to it in Clause 2.1 (The Senior Loans)

“Bondholders”
means the holders of the Bonds.

“Bondholders’
Representative” means Citicorp Peru, S.A., S.A.B. of Av. Canaval y
Moreyra 480, Piso 6, San Isidro, Lima 27, Peru, appointed as a trustee of the

 4
 

 

Bondholders under the Indenture or such other person
as may be appointed as a trustee of the Bondholders under the terms of the
Indenture.

“Bondholders’
Representative Accession Deed” means an accession deed substantially
in the form set out in Schedule 3 to the Master Security and Intercreditor
Deed.

 “Break Costs”  means the amount (if any) by which:

(a)                        the
interest (other than that attributable to the applicable Margin) which a
Facility Lender should have received for the period from the date of receipt of
all or any part of its participation in an Advance or Unpaid Sum to the last
day of the current Interest Period in respect of that Advance or Unpaid Sum,
had the amount of that Advance or Unpaid Sum received been paid on the last day
of that Interest Period;

exceeds:

(b)                       the amount
which that Facility Lender would be able to obtain by placing an amount equal
to the amount of that Advance or Unpaid Sum received by it on deposit with a
leading bank in the London interbank market for a period starting on the
Business Day following receipt or recovery and ending on the last day of the
current Interest Period.

“Business Day”
means a day (other than a Saturday and Sunday) on which banks are open for
general business in London, New York  and
Lima, Peru.

“Buy-out Option”
has the meaning given to it in Clause 26.1 (Assignments and transfers
by the Facility Lenders).

“Calculation Date”
means the last day of each financial half-year.

“Calculation Period”
has the meaning given to it in Clause 20.2 (Compliance Certificate).

“Cancelled Undrawn Amount”
has the meaning given to it in Clause 2.1(d) (The Facility).

“Capital Compensation
Proceeds” means:

(a)                        all
consideration or indemnification received by the Borrower in respect of partial
or total nationalisation, expropriation or compulsory purchase of the Project
or any material part thereof or any material interest therein;

(b)                       any sum
paid to or for the account of the Borrower in respect of the release,
inhibition, modification, dispersion or extinguishment of any material rights,
easements or covenants enjoyed by or benefiting any of the Borrower’s assets,
or the imposition of any material restrictions affecting any of the Borrower’s
assets,

 5
 

 

or the grant of any material easement or rights over
or affecting the Borrower’s assets or any material part of them;

(c)                        any sum
paid to or for the account of the Borrower in respect of the refusal,
revocation, suspension or modification of any material Consent;

(d)                       any other
amounts designated from time to time as Capital Compensation Proceeds by
agreement between by the Facility Agent and the Borrower; and

(e)                        any
amounts received by the Shareholder or the Guarantor, following the Financial
Completion Date, of the same nature as described in paragraphs (a) to (d)
above.

“Commitment”
means:

(a)                        in
relation to an Original Facility Lender, the amount set opposite its name under
the heading “Commitment” in Schedule 1 (The Original
Facility Lenders and Commitments) and the amount of any other
Commitment transferred to it under this Agreement; and

(b)                       in relation
to any other Facility Lender, the amount of any Commitment transferred to it
under this Agreement, to the extent not cancelled, reduced or transferred by it
under this Agreement.

“Commitment Letter”
means the commitment letter dated 28 February 2006 between the Borrower and the
Mandated Lead Arrangers as amended by a supplemental commitment letter dated on
or about the date of this Agreement between the Borrower and the Mandated Lead
Arrangers.

“Competent Authority”
means a government, supranational, local government, statutory or regulatory
body or any subdivision thereof and any ministerial or governmental, quasi
governmental, mining industry or other regulatory department, body,
instrumentality, agency or official court or tribunal having jurisdiction over
the Borrower, the Project or the subject matter of, or any party to, any of the
Transaction Documents.

“Completion Certificate”
has the meaning given to it in the Sponsor Support Agreement.

“Compliance Certificate”
means a certificate substantially in the form set out in Schedule 7 (Form of Compliance Certificate) or otherwise in form and
substance satisfactory to the Facility Agent.

“Computer Model”
means a computer model which is prepared for the Project by the Borrower and
audited by an expert acceptable to the Facility Agent acting reasonably with
respect to Peruvian tax and accounting requirements and which will be provided
to the Facility Agent prior to Financial Close.

 6
 

 

“Concentrates”
means the gold copper concentrates produced by the Borrower from the sulphide
ore mined from the Deposit.

“Concentrate Sale
Agreements” means the offtake agreements entered into by the
Borrower in relation to the sale of Concentrates.

“Concentrate Transport and
Handling Agreement” means an agreement to be entered into as a
condition to the occurrence of the Financial Completion Date between the
Borrower and a counterparty on the terms described in the Sponsor Support
Agreement relating to the transport and handling of Concentrates between the
Site and the port of Salaverry, Peru.

“Concessions”
means the Material Concessions and the Other Concessions.

“Condemnation”
means any legal or regulatory process which prevents use of the Site,
facilities and assets (or any material part of any of the foregoing) of the
Project on the grounds of health and safety for a continuous period of ninety
(90) days or more.

“Consents”
means:

(a)                        those consents listed in Schedule 9 (Consents); and

(b)                       all other
material authorisations, consents, approvals, permits, resolutions, licences,
exemptions, filings or registrations required:

(i)               in connection with
the construction, operation and maintenance of the Project including, without limitation,
land use and access rights;

(ii)            prior
to the Financial Completion Date, for the Guarantor to act as guarantor under
the Sponsor Support Agreement (including, without limitation, from the South
African Reserve Bank);

(iii)         in connection with the
entry into and performance by the Borrower of the Transaction Documents to
which it is a party and the transactions contemplated thereby;

(iv)        in connection with the
validity and enforceability against the Borrower of the Transaction Documents
to which it is a party; and

(v)           in connection with the
admissibility in evidence in Peru and England and any other relevant
jurisdiction of the Transaction Documents to which the Borrower is a party.

“Construction Contracts” means:

(a)                        an Onshore Contract for Detail Engineering and
Procurement Services dated 1 September 2005 between Cosapi Peru S.A. and
Minera; and

 7
 

 

(b)                       an Offshore Contract for the provision of
Engineering and Procurement Services outside of Peru dated 1 October 2005
between Hatch Ingeneria Consultores Ltda. and Minera,

in each case as novated to the
Borrower pursuant to the Onshore Construction Contract Novation Agreement and
the Offshore Construction Contract Novation Agreement, respectively.

“Construction
Report” means each report delivered or to be delivered by the
Borrower pursuant to Clause 20.4 (Construction Reports).

“Contract Mining Agreement”
means the agreement dated 20 January 2006 entered into between Minera and
Compañía Minera San Martín S.A. relating to certain surface mining operations in
respect of the Project, as novated to the Borrower pursuant to the Contract
Mining Agreement Novation Agreement.

“Contract Mining Agreement
Novation Agreement” means the novation agreement dated 2 October
2006 between Minera Goldfields S.A., Compañía Minera San Martín S.A. and the
Borrower.

“Contract Mining Agreement
Supplemental Agreement” means the letter agreement dated on or about
the date of this Agreement between the Borrower and Compañía Minera San Martín
S.A..

“Debt Service”
means for any given period, the sum of all principal, interest and financing
fees with respect to the Senior Loans that become due and payable during such
period (excluding any mandatory prepayments under Clause 8 (Mandatory Prepayments).

“Debt Service
Coverage Ratio” or “DSCR” means on
any given date and in respect of the 12 month period ending on that date the
ratio of:

(a)                        Operating Cash Flow during that period; to

(b)                       Debt Service during that period,

taking into account incoming
and outgoing payments resulting from the Hedging Agreements entered into for
the purpose of managing risks with respect to interest rates under the Senior
Loans.

“Debt Service Reserve
Account” has the meaning given to it in the Accounts Management
Agreement.

“Debt Service Undertaking”
has the meaning given to it in the Sponsor Support Agreement.

“Default” means
an Event of Default or a Potential Event of Default.

 8
 

 

“Deposit” means
the Cerro Corona copper-gold porphyry deposit located in Hualgayoc province in
the Cajamarca department in northern Peru.

“Designated Website”
means an electronic website designated by the Borrower and the Facility Agent
for posting information pursuant to Clause 20.15 (Use of
Websites).

“Direct Agreement”
means the direct agreement in relation to the Contract Mining Agreement dated
on or about the date of this Agreement.

“Discharge Date”
means the date on which:

(a)                        all of the
Liabilities have been discharged in full; and

(b)                       no Finance
Party has any obligation or liability (whether actual or contingent) pursuant
to, or in connection with, the Financing Documents, or any of them, which could
give rise to any liability.

“Disputes” has
the meaning given to it in Clause 40.1 (English Courts).

“Distributions Account”
has the meaning given to it in the Accounts Management Agreement.

“Drawdown Date”
means the date of a Advance, being the date on which the relevant Advance is to
be made.

“Drawdown Request”
means a notice substantially in the form set out in Schedule 3 (Drawdown Request).

“DSRA Required Balance”
has the meaning given to in the Accounts Management Agreement.

“DSU Fee Agreement”
means the agreement so titled dated 31 October 2006 between the Borrower, the
Guarantor and the Shareholder.

“Environmental Claim”
means any investigation, claim, litigation, arbitration or other proceedings
made in connection with any environmental or social matters relating to the
Project.

“Environmental Laws”
means any statute, law, ordinance, code, rule, regulation, order, decree or
other requirement of any relevant governmental authority regulating the
protection of human health (as it relates to releases of, or exposure to,
hazardous substances) or the environment, applicable to the Project or the
Borrower.

“Environmental Management
Plan” or “EMP” means the
environmental and social management plan for the Project (which shall include
the Mine Closure Plan) that describes the measures to be taken (and the actions
needed to implement such measures) during the implementation and operation of
the Project to eliminate, off-set or reduce the adverse environmental and
social impacts, which shall be prepared by the Borrower and provided to the
Facility Agent prior to Financial Close.

 9
 

 

“Environmental Permits”
means the permits listed in paragraphs 2, 3, 4, 5, 6, 7, 8, 9, 10, 14, 15, 30,
32, 33, 34, 35 and 36 of Section B of Part I and paragraph 7 of Part II of
Schedule 9 (Consents).

“Equator
Principles” means those principles so entitled and described therein
as “An industry approach for financial institutions in determining, accessing
and managing environmental and social risk in project financing” dated 4 June
2003, as amended or superseded by a “A financial industry benchmark for
determining, assessing and managing social and environmental risk in project
financing” dated 6 July 2006 and developed and adapted by the International
Finance Corporation and various other banks and financial institutions.

“Event of
Default” means any event or circumstance described in Clause 24
(Events of Default).

“Event of
Loss” means any event that renders repair or restoration of the Site
or facilities or assets (or any material part of any of the foregoing) of the
Project impracticable or impossible unless adequately insured.

“Event of
Political Force Majeure” means:

(a)                        the
occurrence of War;

(b)                       an
Expropriation Event;

(c)                        a
Transferability Event; or

(d)                       a
material breach or effective material unilateral amendment (other than an
amendment which is not detrimental to the Project or the Borrower in any
respect) or cancellation by the Republic of Peru of any Material Concession or
any land use or access right required in connection with the Project.

“Existing
Interest Period” has the meaning given to it in Clause 10.3(b).

“Expropriation
Event” means any of the following:

(a)                        all or a
majority of the Shares of the Borrower; or

(b)                       the whole
or a substantial part of the Borrower’s revenues or assets,

is seized, nationalised, confiscated, expropriated or
compulsorily acquired by Peru without prompt, adequate and effective
compensation in violation of international law (without regard to the
availability of local remedies).

“Facility” has
the meaning given to it in Clause 2.1(a) (The Facility).

“Facility Lender”
means:

(a)                        any
Original Facility Lender; and

 10
 

 

(b)                       any bank,
financial institution, trust, fund or other entity which has become a Party in
accordance with Clause 26 (Changes to the Facility
Lenders),

which in each case has not ceased to be a Party in
accordance with the terms of this Agreement.

“Facility Office”
means the office or offices notified by a Facility Lender to the Facility Agent
in writing on or before the date it becomes a Facility Lender (or, following
that date, by not less than five (5) Business Days’ written notice) as the
office or offices through which it will perform its obligations under the
Financing Documents to which it is party.

“Facility Repayment
Instalment” has the meaning given to it in Clause 6 (Repayment).

“Feasibility Study”
means the document entitled “Proposal for Acquisition and Development of the
Cerro Corona Deposit on behalf of Minera Gold Fields S.A - Project Description
and Investment Appraisal - November 2005”.

“Fee Letter”
means any letter or letters dated on or about the date of this Agreement
entered into by the Borrower setting out any of the fees referred to in
Clause 17 (Fees).

“Final Maturity Date”
means the date falling ten (10) years after the date of this Agreement.

“Finance Parties”
means:

(a)       the
Facility Agent;

(b)       the
Mandated Lead Arrangers;

(c)       each
Facility Lender;

(d)       the
Onshore Security Agent;

(e)       the
Offshore Security Trustee;

(f)        each
Account Bank; and

(g)       each
Secured Hedging Counterparty (if any),

and “Finance
Party” means any one of them.

“Financial
Close” means the first Business Day after the date on which the
Facility Agent gives notification that the conditions precedent referred to in
Clause 4.1 (Conditions Precedent to
Financial Close) have either
been satisfied or waived.

“Financial
Completion Date” has the meaning given to it in the Sponsor Support
Agreement.

 

 11

 

“Financial Indebtedness” means any indebtedness for or in
respect of:

(a)                        moneys borrowed;

(b)                       any amount
raised by acceptance under any acceptance credit facility or dematerialised
equivalent;

(c)                        any amount
raised pursuant to any note purchase facility or the issue of bonds, notes,
debentures, loan stock or any similar instrument;

(d)                       the amount
of any liability in respect of any lease or hire purchase contract which would,
in accordance with GAAP, be treated as a finance or capital lease;

(e)                        receivables
sold or discounted (other than any receivables to the extent they are sold on a
non–recourse basis);

(f)                          any
amount raised under any other transaction (including any forward sale or
purchase agreement) having the commercial effect of a borrowing;

(g)                       any derivative transaction entered into in
connection with protection against or benefit from fluctuation in any rate or
price (and, when calculating the value of any derivative transaction, only the
marked-to-market value shall be taken into account);

(h)                       any counter–indemnity obligation in respect of a guarantee, indemnity, bond, standby
or documentary letter of credit or any other instrument issued by a bank or
financial institution; and

(i)                           the
amount of any liability in respect of any guarantee or indemnity for any of the
items referred to in paragraphs (a) to (h) above.

“Financial Statements”
means, in respect of any person, the cashflow statement, balance sheet, profit
and loss account and explanatory notes thereto in accordance with applicable
accounting standards.

“Financial Year”
means the twelve-month period ending on 31 December of each calendar year.

“Financing Costs”
means interest, fees and any other costs or expenses payable under the
Financing Documents (excluding with respect to funding the Debt Service Reserve
Account).

“Financing Documents”
means:

(a)                        this
Agreement;

(b)                       each
Security Document;

(c)                        any
Secured Hedging Agreement;

 12
 

 

(d)                       the
Accounts Management Agreement;

(e)                        each Fee
Letter;

(f)                          any
Accession Deed;

(g)                       the Sponsor
Support Agreement;

(h)                       each Note;
and

(i)                           any
other document from time to time designated as such in writing by the Borrower
and the Facility Agent,

and “Financing Document”
means any one of them.

“Forecast Funding Shortfall”
means, on any date, the amount, if any, by which the Projected Cost to Complete
on that date exceeds the Available Funding on that date so that, if there is
such an excess, there shall be a Forecast Funding Shortfall of an amount equal
to the excess, and if there is no such excess, there shall be no Forecast
Funding Shortfall.

“GAAP” means
generally acceptable accounting principles in Peru in relation to the Borrower,
or International Financial Reporting Standards in relation to the Guarantor, as
applicable, consistently applied.

“Good Industry
Practice” means international standards, practices, methods and
procedures complying with Applicable Law and all Consents required to have been
obtained pursuant to Clause 21.6 (Consents) and with that degree of skill,
diligence, judgment, prudence and foresight which would reasonably and
ordinarily be expected under the same or similar circumstances from (as
applicable) an international skilled and experienced owner, contractor,
manufacturer, marketer, sales company or, as the case may be, operator engaged
in designing, engineering, constructing, developing, commissioning, repairing,
refurbishing, operating, maintaining, insuring and/or owning mining facilities
for the purposes of producing, marketing or selling the Concentrates.

“Guarantor”
means Gold Fields Limited, a company incorporated under the laws of South
Africa and having its registered address at 24 St Andrews Road, Parktown, 2193,
South Africa.

“Guidelines”
means:

(a)                        the World
Bank General Environmental Guidelines as contained in the Pollution Prevention
and Abatement Handbook (July 1998);

(b)                       the IFC
Environmental Guidelines for Occupational Health and Safety;

(c)                        the
Operational Policy 4.37 - Safety of Dams Guideline;

(d)                       the IFC
Occupational Health and Safety Guidelines (2003);

 13
 

 

(e)                        the
Operational Directive 4.30 - Involuntary Resettlement;

(f)                          the IFC
Policy Statement on Forced Labour and Harmful Child Labour;

(g)                       the
Operational Policy 4.01 Environmental Assessment, Annex C, Paragraph 5; and

(h)                       the IFC
Guideline - Electrical Power Transmission and Distribution IFC Guideline - Port
and Harbour Facilities Operational Policy 4.01 - Environmental Assessment, IFC
Guideline - Roads and Transportation,

to the extent, in each case, applicable to the
Project.

“Hedging Agreements”
means:

(a)                        currency
swap agreements, option contracts, futures contracts, option on future
contracts, spot or forward contracts or other agreements to purchase or sell
currency or any other hedging arrangement entered into by the Borrower to hedge
the Borrower’s exposure to movements in the rates of exchange of non-Dollar
currencies;

(b)                       interest rate swaps, option contracts, future
contracts, options on futures contracts, cap, floors, collars or any other similar hedging arrangements
entered into by the Borrower to hedge the Borrower’s exposure to movements in
interest rates;

(c)                        forward purchases and sales, put options,
synthetic put options, call options, collars or any other arrangement entered into by the Borrower to hedge the
Borrower’s exposure to movements in prices of final products produced or inputs
consumed in the production process; and

(d)                       
any other derivative transaction
or hedging arrangements into which the Borrower may enter.

“Indenture”
has the meaning given to it in Clause 2.1(b) (The Senior
Loans).

“Independent Operating
Report” has the meaning given to it in Clause 20.5 (Operating Reports).

“Independent
Technical Consultant” or “ITC” means
Chlumsky, Armbrust and Meyer, LLC or such other reputable and experienced
consultant as may from time to time be appointed to review and report on the
Project (including but not limited to the Initial Mine Plan and the Ore Reserve
Report) by the Mandated Lead Arrangers with the consent of the Borrower (not to
be unreasonably withheld or delayed) for, and on behalf of, the Facility
Lenders.

“Initial Concentrate Sale
Agreement” means one or more Concentrate Sale Agreements with
creditworthy counterparties which (a) provide for floating TC/RC/PP, have a
term of not less than seven (7) years and cover in the aggregate not less than
two-thirds

 14
 

 

of 80% of the Borrower’s annual estimated Concentrate
production during each year in such term and (b) provide for fixed TC/RC/PP,
have a term of not less than five (5) years and cover not less than one-third
of 80% of the Borrower’s annual estimated Concentrate production during each
year in such term.

“Initial Mine Plan” means the mine plan for the Project,
which shall be prepared by the Borrower and provided to the Facility Agent
prior to Financial Close and shall incorporate the Environmental Management
Plan, and the Ore Reserve Report and the Mine Plan.

“Initial Operating Budget” has the meaning given to it in
Clause 20.10 (Operating Budgets).

“Initial Ownership Interest” means the interest of the
Shareholder in the Borrower equal to the ownership of 92.014% of the Shares and
80.724% of all issued and outstanding shares in the capital of the Borrower
(including the Shares and non-voting shares).

“Initial Project Documents” means:

(a)                        the Construction Contracts;

(b)                       the Initial Concentrate Sale Agreements;

(c)                        the Contract Mining Agreement;

(d)                       the Contract Mining Agreement Supplemental
Agreement;

(e)                        the Power Supply Contract;

(f)                          the Novation Agreements;

(g)                       the
Management Services Agreement; and

(h)                       the DSU Fee Agreement.

“Insolvency Event” means, in respect of any relevant person,
that:

(a)                        it is, or
is deemed for the purposes of any Applicable Law to be, insolvent, or unable to
pay its debts as they fall due, or is declared bankrupt, or is compelled to
enter into an insolvency or bankruptcy proceeding (procedimiento
concursal) under the Ley General del Sistema
Concursal or any law which may replace it from time to time;

(b)                       it has, for
the purposes of any Applicable Law, incurred sufficient cumulative losses for
it to be considered or deemed to be insolvent or bankrupt;

(c)                        it admits
in writing its inability to pay its debts as they fall due or its insolvency or
bankruptcy situation;

 15
 

 

(d)                       it suspends
making payments on any of its debts or announces an intention to do so;

(e)                        by reason
of actual or anticipated financial difficulties, it begins negotiations with
any creditor for the rescheduling of any of its indebtedness;

(f)                          a
moratorium is declared in respect of any of its indebtedness;

(g)                       any step is
taken with a view to a moratorium or a composition, work out, assignment or
similar arrangement with any of its creditors;

(h)                       a
resolution of its shareholders, directors or other officers to petition for or
to file documents with a court or any registrar for its winding-up,
administration, bankruptcy proceeding, liquidation, or dissolution is passed;

(i)                           it is
required by Applicable Law to reduce or increase capital (excluding, for the
avoidance of doubt, any reduction in capital permitted by Clause 10.1 (Tangible Net Worth) of the Sponsor Support Agreement) or to
call a meeting of creditors or shareholders for purposes of discussing its
financial status or to file for insolvency or bankruptcy (procedimiento
concursal);

(j)                           any
person presents a petition, or files documents with a court, administrative
authority or any registrar for the Borrower’s winding-up, administration,
bankruptcy proceeding or liquidation (excluding any frivolous or vexatious
petitions which are dismissed within thirty (30) days);

(k)                        an order
for the Borrower’s winding-up, administration, bankruptcy proceeding or
liquidation or dissolution is made;

(l)                           any
liquidator, trustee in bankruptcy, judicial custodian, compulsory manager,
receiver, administrative receiver, administrator or similar officer is
appointed in respect of it or any of its assets;

(m)                     its
shareholders, directors or other officers request a declaration of insolvency
or bankruptcy (procedimiento concursal), the
appointment of, or give notice of their intention to appoint a liquidator,
trustee in bankruptcy, judicial custodian, compulsory manager, receiver,
administrative receiver, administrator or similar officer;

(n)                       any other
analogous step or procedure is taken in any jurisdiction; or

(o)                       any
attachment, sequestration, distress, execution or analogous event affects any
of its asset(s) having an aggregate value of US$5,000,000 if such person is the
Borrower or US$50,000,000 if such person is the Shareholder or the Guarantor
and is not discharged within sixty (60) days.

 16
 

 

“Insurances”
means each of the contracts of insurance entered into by, or on behalf of, the
Borrower in respect of the Project and in accordance with its obligations under
Schedule 8 (Insurances).

“Insurance
Adviser” means Aon
Risk Services Inc. or such other reputable and experienced adviser, as may from
time to time, be acceptable to the Mandated Lead Arrangers and the Borrower,
and appointed by the Mandated Lead Arrangers for, and on behalf of, the
Facility Lenders to review, report on and monitor insurance matters relating to
the Project.

“Insurance Adviser’s Report”
means a report from the Insurance Adviser in relation to the Insurances.

“Insurance Proceeds”
has the meaning given to it in the Accounts Management Agreement.

“Interest Period”
means, in relation to an Advance, each period determined in accordance with
Clause 10 (Interest Periods) and, in
relation to an Unpaid Sum, each period determined in accordance with
Clause 9.3 (Default interest).

“International Financial
Reporting Standards” means the international financial reporting
standards as promulgated by the International Accounting Standards Board from
time to time.

“ITC Report”
means an independent report from the ITC concerning this Project, in form and
substance satisfactory to the Facility Lenders.

“Joint Venture”
means a joint venture constituted by the Joint Venture Agreement.

“Joint Venture Agreement”
means a shareholders agreement entered into or to be entered into between JV
Holdco and the JV Partner.

“Joint Venture Company”
means one or more limited liability companies incorporated or to be
incorporated by JV Holdco and the JV Partner under the laws of Peru for the
purposes of implementing the Joint Venture.

“JORC Code”
means the Code for Reporting of Mineral Resources and Ore Reserves by the
Australasian Joint One Reserves Committee, originally published in 1990 and
further revised on 17 December 2004.

“JV Account”
means one or more accounts to be opened by the Borrower from time to time in
connection with the Joint Venture.

“JV  Applicable Law” means any law, regulation, rule, executive
order, decree, code of practice, circular, guidance note or injunction of, or
made by, any JV Competent Authority, which is binding and enforceable on or
against JV Holdco or any Joint Venture Company (as applicable) or the business
or assets comprising the Joint Venture, as the case may be.

 17
 

 

“JV Asset” means
any of the Borrower’s shares or any other interests in JV Holdco and any of JV
Holdco’s shares or any other interests in any Joint Venture Company (and any
rights of the Borrower or JV Holdco to receive dividends or other distributions
in respect of such shares), any amounts standing to the credit of the Borrower
in any JV Account, any rights of the Borrower in respect of any shareholder
loans made by the Borrower to JV Holdco and any rights of the Borrower to
receive any consideration or other proceeds in connection with a sale or other
disposal of any of the foregoing.

“JV  Competent Authority” means a government, supranational,
local government, statutory or regulatory body or any subdivision thereof and
any ministerial or governmental, quasi governmental, mining industry or other
regulatory department, body, instrumentality, agency or official court or
tribunal having jurisdiction over JV Holdco or any Joint Venture Company (as
applicable) or the business or assets comprising the Joint Venture.

“JV  Consents” means
all material authorisations, consents, approvals, permits, resolutions,
licences, exemptions, filings or registrations required:

(a)                        in
connection with the operation of the Joint Venture; and

(b)                       in
connection with the entry into and performance by JV Holdco of the Joint
Venture Agreement and the transactions contemplated thereby.

“JV Holdco”
means a limited liability company incorporated or to be incorporated by the
Borrower under the laws of Peru for the purposes of holding the Borrower’s
interest in the Joint Venture.

“JV Partner”
means Compañía Minera Colquirrumi S.A., a company incorporated under the laws
of Peru, or any Affiliate thereof.

“LCIA Rules”
has the meaning given to it in Clause 41.1 (LCIA Rules).

“Liabilities”
means all present and future liabilities (actual or contingent) payable or
owing by the Borrower to the Finance Parties in connection with the Financing
Documents.

“LIBOR” means,
in relation to any Advance:

(a)                        the
applicable Screen Rate; or

(b)                       (if no
Screen Rate is available for Dollars or for the Interest Period of that
Advance) the arithmetic mean of the rates (rounded upward, to four decimal
places) as supplied to the Facility Agent at its request quoted by the
Reference Bank(s) to leading banks in the London Interbank market,

as of the Specified Time
on the Quotation Day for the offering of deposits in Dollars and for a period
comparable to the Interest Period for that Advance.

 18
 

 

“Majority Facility Lenders” means a Facility Lender or Facility
Lenders whose Commitments aggregate more than 662¤3 per cent. of
the Total Commitments (or, if the Total Commitments have been reduced to zero,
aggregated more than 662¤3
per cent. of the Total Commitments immediately prior to that reduction).

“Management Services
Agreement” means the agreement so titled dated 31 October 2006
between the Borrower and GFL Mining Services Limited.

“Mandatory Cost”
means the percentage rate per annum calculated by the Facility Agent in
accordance with Schedule 12 (Mandatory Cost Formulae).

“Margin” means
in respect of the Senior Facility Loan:

(a)                        0.45% p.a.
during the period from, and including, Financial Close until the Financial
Completion Date; and

(b)                       For the
annual periods from, and including, the Financial Completion Date:

	
  Year 1

  	
   

  	
  1.25% p.a.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Year 2

  	
   

  	
  1.25% p.a.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Year 3

  	
   

  	
  1.25% p.a.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Year 4

  	
   

  	
  1.50% p.a.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Year 5

  	
   

  	
  1.50% p.a.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Year 6 and thereafter

  	
   

  	
  1.75% p.a.

  	
   

  

 

“Master Security and
Intercreditor Deed” means the intercreditor and security sharing
deed dated on or about the date of this Agreement entered between the Onshore
Security Agent, the Offshore Security Trustee, the Borrower, the Facility
Lenders and the Facility Agent, and following its accession, the Bondholders’
Representative.

“Material Adverse Effect” means
that the relevant event or circumstance (or any effect or consequence thereof):

(a)                        would or
would be reasonably likely to affect materially and adversely the ability of
the Borrower (or, prior to the Financial Completion Date, the Guarantor) to
comply with any of its payment or other material obligations under any of the
Financing Documents to which it is a party;

(b)                       would or
would be reasonably likely to affect materially and adversely the ability of
the Borrower to comply with any of its payment or other material obligations
under any of the Project Documents;

 19
 

 

(c)                        would or
would be reasonably likely to affect materially and adversely the validity or
enforceability of any of the Financing Documents or the Project Documents; or

(d)                       would or
would be reasonably likely to affect materially and adversely the rights and
remedies of the Facility Lenders and the Facility Agent under any of the
Financing Documents.

“Material Concessions”
means each mining concession of the Borrower listed in Part 1 of
Schedule 13 (Concessions).

“Merger” means a
proposed transaction pursuant to which the Borrower will:

(a)                        enter into
an agreement with Minera under which Minera will invoice
the Borrower (which invoice will be satisfied by the delivery by the
Borrower to Minera of a subordinated note) for (i) the provision of
certain mining and management services rendered by Minera to the Borrower
and the reimbursement of certain expenses of Minera incurred in relation
thereto; and/or (ii) the transfer of certain moveable assets from
Minera to the Borrower; or

(b)                       effect a
merger (for the avoidance of doubt, a fusión, escisión or reorganizacion simple)
with Minera pursuant to the Peruvian Companies Act (Ley General
de Sociedades), for the purpose of consolidating
the assets and liabilities of Minera into the Borrower,

and:

(i)                       in the case
of paragraph (a) and (to the extent that Minera continues to exist as a legal
entity following such merger) paragraph (b) above, Minera has acceded to the
Sponsor Support Agreement as a Subordinated Party by entering into an Accession
Deed (as defined in the Sponsor Support Agreement); and

(ii)                    in the case of paragraphs (a) and (b) above,
any liabilities coming into the Borrower as a result of such merger are
subordinated to the Facility to the satisfaction of the Facility Agent, acting
reasonably, and amounts payable in respect of such liabilities are to be paid
only from amounts standing to the credit of the Distributions Account; and

(iii)                 in the case of
paragraph (b) above, has been consented to in writing by the Facility Agent
prior to such merger becoming effective, which consent shall not be
unreasonably withheld or delayed; provided that nothing in this definition
shall prevent the Facility Agent from conducting appropriate due diligence in
relation to the provision of such consent.

“Mine Closure Plan”
means the mine closure plan
prepared by the Borrower in relation to the Project and provided to the
Facility Lenders as amended by any mine closure plan

 20
 

 

prepared by the Borrower under Applicable Law and
approved by the applicable regulatory authorities in Peru.

“Mine Plan”
means the schedule of ore and waste extraction as set out in the Feasibility
Study and incorporated into the Initial Mine Plan or any update thereto
provided to the Facility Agent in accordance with Clause 20.6 (Mine Plan).

“Minera”
means Minera Gold Fields S.A., a company incorporated under the laws of Peru,
2,999 of the issued and outstanding shares of which are held by the Shareholder
and 751 of the issued and outstanding shares of which are held by Orogen
Holdings (BVI) Limited, as at the date hereof.

“Mineral Exploration” means all
activities directed toward ascertaining the existence, location, quantity,
quality, grade or commercial value of deposits of minerals, including, without
limitation, prospecting, mapping, sampling, drilling, pitting, trenching,
analysis, process testing, test marketing, surveying, geophysics, photography
and investigation, but excluding, for the avoidance of doubt, any commercial
mining operations and mine development.

“Mineralised Oxide”
means the oxidised material forming part of the overburden overlying the
Deposit as described in the Initial Mine Plan.

“Model Auditor” means Deloitte & Touche or such other
reputable and experienced auditor as may from time to time be appointed by the
Mandated Lead Arrangers with the consent of the Borrower (not to be
unreasonably withheld or delayed) for, and on behalf of, the Facility Lenders.

“Model Auditor’s Report”
means the report from the Model Auditor as to the Base Case and related matters
in relation to the Project.

“Month” means a
period starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month, except that in the case of the
last Month of any period the following shall apply:

(a)                        subject to
paragraph (c) below, if the numerically corresponding day is not a Business
Day, that period shall end on the next Business Day in that calendar month in
which that period is to end if there is one, or if there is not, on the
immediately preceding Business Day;

(b)                       if there is
no numerically corresponding day in the calendar month in which that period is
to end, that period shall end on the last Business Day in that calendar month;
and

(c)                        if an
Interest Period begins on the last Business Day of a calendar month, that
Interest Period shall end on the last Business Day in the calendar month in
which that Interest Period is to end.

“Monthly Operating
Report” has the meaning given to it in Clause 20.5(a).

 21

 

“New Facility
Lender” has the meaning given to it in Clause 26.1 (Assignments and transfers by the Facility Lenders).

“New Facility
Lender Accession Deed” means an accession deed substantially
in the form set out in Schedule 6 (Form of New Facility
Lender Accession Deed).

“Note” means a promissory note substantially
in the form of that set out in Schedule 4 (Form of Note)
delivered or to be delivered to the Facility Agent pursuant to Clause 12 (The Notes).

“Novation Agreements”
means the Onshore Construction Contract Novation Agreement, the Offshore
Construction Contract Novation Agreement and the Contract Mining Agreement
Novation Agreement.

“Obligors”
means the Borrower, the Shareholder and the Guarantor, and “Obligor” means any of them.

“Offshore
Account Bank” means The Bank of Nova Scotia.

“Offshore
Accounts” means the Offshore Disbursement Account, the Offshore
Revenue Account, the Offshore Operating Account, the Distributions Account, the
Offshore Insurance Proceeds Account, the Debt Service Reserve Account and other
accounts that may be agreed between the Facility Agent and the Borrower.

“Offshore Construction
Contract Novation Agreement” means the novation agreement dated 25
October 2006 between Hatch Ingeneria Consultores Ltda., Minera and the Borrower.

“Offshore Disbursement
Account” has the meaning given to it in the Accounts Management
Agreement.

“Offshore  Insurance Proceeds Account”
has the meaning given to it in the Accounts Management Agreement.

“Offshore Operating Account”
has the meaning given to it in the Accounts Management Agreement.

“Offshore Revenue Account”
has the meaning given to it in the Accounts Management Agreement.

“Offshore Security”
means the security created by the Offshore Security Documents.

“Offshore Security
Documents” means:

(a)                        the Master
Security and Intercreditor Deed;

(b)                       the Direct
Agreement;

(c)                        the
Offshore Share Security; and

 22
 

 

(d)                       any other
document under which security is constituted in favour of the Offshore Security
Trustee in respect of the Secured Obligations as contemplated under the Finance
Documents; and

(e)                        any other
agreement or document, filings, notices, arrangements or the like which are
required to establish and maintain the security interest in the Offshore
Security for the benefit of the Secured Parties.

“Offshore Share Security”
has the meaning given to it in the Sponsor Support Agreement.

“Onshore Account Bank”
means Scotiabank Peru S.A.A.

“Onshore Accounts”
means the Onshore Disbursement Accounts, the Onshore Operating Account, the
Onshore Insurance Proceeds Account, Onshore Dollar Receipts Account and the
Onshore Revenue Account.

“Onshore Construction
Contract Novation Agreement” means the novation agreement dated 5
October 2006 between Cosapi Peru S.A., Minera
and the Borrower.

“Onshore Disbursement Accounts”
has the meaning given to it in the Accounts Management Agreement.

“Onshore Dollar Receipts
Account” has the meaning given to it in the Accounts Management
Agreement.

“Onshore Insurance Proceeds
Account” has the meaning given to it in the Accounts Management
Agreement.

“Onshore Operating Account”
has the meaning given to it in the Accounts Management Agreement.

“Onshore Revenue Account”
has the meaning given to it in the Accounts Management Agreement.

“Onshore Security”
means the security created pursuant to the Onshore Security Documents.

“Onshore Security Documents”
means each of the following documents governed by Peruvian law:

(a)                        the mining
mortgages (hipoteca minera), in the form annexed to
the Master Security and Intercreditor Deed;

(b)                       the mining
pledge (garantía mobiliaria sobre activos)
(equipment, machinery and movable assets of the Project), in the form annexed
to the Master Security and Intercreditor Deed;

 23
 

 

(c)                        the
floating mining pledge (garantía mobiliaria sobre
inventario) (minerals and Concentrates in inventory), in the form
annexed to the Master Security and Intercreditor Deed;

(d)                       the Share
Pledge (garantía mobiliaria sobre acciones) in
relation to the Shares held by the Shareholder in the form annexed to the
Master Security and Intercreditor Deed;

(e)                        the
conditional assignments of rights and of contracts (cesión
condicionada de derechos y de posición contractual) in the form
annexed to the Master Security and Intercreditor Deed;

(f)                          the
pledge of the Onshore Accounts (garantía sobre saldos de
cuentas) in the form annexed to the Master Security and
Intercreditor Deed;

(g)                       the civil
mortgage (hipoteca civil) over real property in
the form annexed to the Master Security and Intercreditor Deed; and

(h)                       any other
agreement or document, filings, notices, arrangements or the like which are
required to establish and maintain the security interest in the Onshore
Security for the benefit of the Secured Parties.

“Operating
Budget” means the Initial Operating Budget and an Annual Operating
Budget.

“Operating Cash Flow” means, for any given
period, (a) all operating revenues of the Borrower received or projected to be
received during such period and all interest income earned in the Accounts
during such period minus (b) the Operating Costs paid or projected to be paid
for such period.

“Operating
Costs” means, for any period, all cash expenditure incurred or
projected to be incurred during such period by the Borrower in relation to:

(a)                        the
Project’s operating and maintenance costs including in respect of each of the
items set out in the Base Case or in the most recent Operating Budget as
operating costs or maintenance costs (including capital expenditure required
for maintenance, premia in respect of the Insurances, employees salaries,
administration costs and payments by the Borrower under the Project Documents);

(b)                       any
Taxes;

(c)                        any
Professional Expenses;

(d)                       any
fees, costs or other expenses relating to the issue and maintenance of any
Security Interests under the Security Documents;

(e)                        any
costs and expenses payable in connection with any Consent; and

 24
 

 

(f)                          such
other amounts as the Borrower and the Facility Agent may agree to include as
Operating Costs,

but excluding (to the extent included) Financing Costs.

“Operating
Report” means a Monthly Operating Report or a Semi Annual
Operating Report, as the case may be, delivered or to be delivered by the
Borrower pursuant to Clause 20.5(Operating Reports).

“Operating Report
Information” means for any relevant period:

(a)                        details of
the operation and maintenance of the Project during that period, including as
to environmental matters and compliance with the requirements of the
Environmental Management Plan;

(b)                       details of
any actual material maintenance for that period;

(c)                        any
material defects or material malfunctions in relation to the Project during
that period which are likely, individually or when taken into consideration
with any other facts or circumstances then in existence, to have a Material
Adverse Effect, together with summary details of the action being taken to
remedy those material defects or malfunctions; and

(d)                       a summary
of the:

(i)                          revenues
and Operating Costs incurred to date, and a comparison against the existing
projected figures;

(ii)                       capital
expenditures for the relevant reporting period compared to the existing
projected figures; and

(iii)                    production
levels for the relevant reporting period compared to the existing projected
figures.

“Ore Processing Agreement”
means any agreement entered into by the Borrower in relation to the processing
of Mineralised Oxide.

“Ore Reserve Report”
means a statement of the proven and probable ore reserves for the Project
prepared in accordance with the JORC Code and included in the Initial Mine
Plan.

“Original Financial
Statements” means the audited consolidated financial statements of
the Borrower for the Financial Year ended 31 December 2005 and of the Guarantor
for the 12-month period ended on 30 June 2006.

“Other Concessions”
means the concessions listed in Part 2 of Schedule 13 (Concessions)
including any agreements, permits and other assets necessarily incidental to
the exploration of such concessions, but excluding for the avoidance of doubt,
any

 25
 

 

agreement, permits and assets that relate in any
manner whatsoever to the Project or any aspect of it.

“Paper Form Facility Lender”
has the meaning given to it in Clause 20.15(a).

“Party” means a
party to this Agreement.

“Permitted
Indebtedness” means any Financial Indebtedness:

(a)                        arising
under the Financing Documents and the Bonds or for the financing of development
expenditures permitted under this Agreement;

(b)                       that is
either unsecured or secured by a Permitted Security Interest and which does not
at any time exceed, when aggregated with amounts permitted under paragraphs (c)
and (e) below, an aggregate amount of US$10,000,000 (or its equivalent in other
currencies);

(c)                        arising
under trade accounts payable incurred or arising in the ordinary course of
business on typical commercial terms so long as the aggregate amount of such
trade accounts does not, at any time, exceed, when aggregated with amounts
permitted under paragraphs (b) above and (e) below, US$10,000,000 (or its
equivalent in other currencies) and which are not more than 90 days past due,
or if past due, are being contested in good faith;

(d)                       arising
under any Hedging Agreements which are not restricted by Clause 22.19 (Speculative Hedging);

(e)                        in respect
of any leases entered into primarily as a method of raising finance (or
financing the acquisition of an asset) up to an aggregate amount, when
aggregated with amounts permitted under paragraphs (b) and (c) above, of
US$10,000,000 (or its equivalent in other currencies);

(f)                          arising
under any Subordinated Loan or other Shareholder funding on terms as agreed in
the Sponsor Support Agreement;

(g)                       arising
under any subordinated loans owing to an Affiliate of the Shareholder provided that such Affiliate has acceded to the Sponsor
Support Agreement;

(h)                       arising
under other unsecured indebtedness subordinated on terms acceptable in all
material respects to the Facility Agent; or

(i)                           on
terms agreed to by the Facility Agent.

“Permitted
Security Interest” means:

(a)                        any
Security Interest arising under any Transaction Document and any documentation
relating to the Bonds (in form and substance acceptable to the Facility Agent);

 26
 

 

(b)                       any netting
or set-off arrangement entered into by the Borrower in the ordinary course of
its banking arrangements for the purpose of netting debit and credit balances;

(c)                        any
Security Interest arising by operation of law or in the ordinary course of
trade and on terms customary in that trade, or over assets supplied to the
Borrower in the ordinary course of business;

(d)                       Tax liens
not yet delinquent or that are being contested in good faith and for which
adequate reserves have been maintained in accordance with GAAP;

(e)                        any
Security Interests existing as of the date of this Agreement;

(f)                          any
Security Interest over or affecting any asset acquired by the Borrower after
the date of this Agreement if:

(i)                          the
Security was not created in contemplation of the acquisition of that asset by
the Borrower;

(ii)                       the
principal amount secured has not been increased in contemplation of, or since
the acquisition of that asset by the Borrower; and

(iii)                    the
Security is removed or discharged within 3 months of the date of acquisition of
such asset;

(g)                       any
Security Interest securing indebtedness the principal amount of which (when
aggregated with the principal amount of any other indebtedness which has the
benefit of a Security Interest given by the Borrower other than any Security
Interests permitted under paragraphs (a) to (f) above) does not exceed
US$10,000,000 (or its equivalent in another currency or currencies);

(h)                       any
Security Interest over any JV Asset or any of the Other Concessions; and

(i)                           any
Security Interest created with the prior written consent of the Facility Agent
(acting on the instructions of the Majority Facility Lenders).

“Peru” means the
Republic of Peru.

“Peruvian Law”
means the laws of Peru.

“Port Access Agreement”
means an agreement to be entered into on the terms described in the Sponsor
Support Agreement as a condition to the occurrence of the Financial Completion
Date between the Borrower and the port authority of the port of Salaverry, Peru
relating to the provision of certain rights of access to the port of Salaverry,
Peru.

“Potential Event of Default”
means any event or circumstances which, with the giving of notice, the lapse of
time, the expiry of a grace period, the making of any

 27
 

 

determination or the fulfilment of any other
applicable condition (or any combination of the foregoing), would constitute an
Event of Default.

“Power Supply Contract”
means the power supply contract dated 14 July 2006 between the Borrower and
Globeleq Peru S.A. for the supply of electricity.

“Prepayment Amount” has the meaning given to it in Clause
7.3(b) (Voluntary Prepayment by Borrower).

“Professional Advisers” means:

(a)                        international and Peruvian legal counsel to the
Facility Lenders in connection with the Financing Documents;

(b)                       the Independent Technical Consultant;

(c)                        the Insurance Adviser;

(d)                       the Model Auditor; and

(e)                        any tax advisor appointed by the Facility Agent
in connection with the Financing Documents.

“Professional Expenses”
means the costs, fees, expenses and disbursements of the Professional Advisers.

“Project”
means:

(a)                        the
development, financing, design, engineering, procurement, construction,
operation and ownership of mining facilities for the purposes of extraction of
gold and copper from the Deposit by conventional surface mining methods;

(b)                       the
development, financing, design, engineering, procurement, construction,
operation and ownership of the processing facilities;

(c)                        the
development, financing, design, engineering, procurement, construction,
operation and ownership of certain related infrastructure facilities;

(d)                       extracting
ore (including the Mineralised Oxide) and waste rock from the Deposit;

(e)                        exploring
for other mineral deposits in the area surrounding the Deposit;

(f)                          processing
ore extracted from the Deposit to produce Concentrates;

(g)                       selling or
delivering the Mineralised Oxide for processing by third parties;

(h)                       disposing
of waste rock and tailings; and

(i)                           transporting,
marketing and selling the Concentrates and any concentrates produced from the
Mineralised Oxide,

 28
 

 

all as more particularly
set out in the Initial Mine Plan and the Feasibility Study and any activities
reasonably incidental to the foregoing.

“Project Budget”
means a budget of projected expenditure required to achieve the Financial
Completion Date consistent with the Base Case.

“Project Costs”
means all costs and expenses relating to the Project paid or payable by the
Borrower (and in the case of any amount for which Advances under the Facility
and/or the Base Equity Amount are applied, as set out in the Project Budget)
including the following, without duplication:

(a)                        all costs
and expenses incurred to design, develop, engineer, procure, construct,
complete, test, commission, operate, maintain, manage and insure the Project
(including any reinstatement premium, and those contingency items that are
identified in the Base Case);

(b)                       all costs
and expenses incurred to acquire all required interests in the Site for the
Project and any other land necessary for the Project;

(c)                        all costs and
expenses incurred in connection with any Consent;

(d)                       all costs
and expenses incurred to establish an initial inventory of spares and other
consumables for the Project;

(e)                        working
capital requirements up to the Financial Completion Date;

(f)                          interest,
fees and other amounts (excluding principal) payable in respect of the  Facility, the Bonds, any hedging agreements
and all agreed fees until the Financial Completion Date and other costs,
charges and expenses associated with the financing of the Project including
professional expenses, development costs and expenses, commitment fees,
management fees, agency fees, up–front or arrangement fees, underwriting fees,
hedging costs, taxes, interest amounts and other related out–of–pocket expenses
payable by the Borrower;

(g)                       costs and
expenses incurred in establishing and operating the Borrower, and related
venture costs, including all the operating costs of the Borrower prior to the
Financial Completion Date;

(h)                       any value
added or similar Tax in respect of any of the foregoing;

(i)                           the
amount of the initial DSRA Required Balance (if any);

(j)                           costs,
expenses and fees associated with the provision of the Debt Service
Undertaking; and

(k)                        such other
items as may from time to time be approved for this purpose by the Facility
Agent (acting reasonably).

“Project Documents”
means:

 29
 

 

(a)                        
the Initial Project Documents;

(b)                       when
entered into, the Port Access Agreement;

(c)                        when
entered into, the Concentrate Transport and Handling Agreement;

(d)                       when
entered into, the Transmission Services Agreement; and

(e)                        any
other document designated as a Project Document by the Borrower and the
Facility Agent.

“Projected Cost to
Complete” means, on any date, the aggregate amount of all costs,
expenses and liabilities which have been incurred, or are payable, by the
Borrower but are unpaid as at that date and all costs, expenses and liabilities
then estimated by the Borrower acting reasonably (as agreed with the
Independent Technical Consultant and the Facility Agent, each acting reasonably)
to be incurred, paid or payable by the Borrower in connection with the Project
after that date up to the Financial Completion Date.

“Quotation Day”
means the day on which an interest rate is determined for an Interest Period.

“Reference Banks”
means the principal London offices of Citibank, N.A., The Royal Bank of
Scotland plc and The Bank of Nova Scotia or such other banks as may be
appointed by the Facility Agent in consultation with the Borrower.

“Reinsurances”
means each of the reinsurances taken out or maintained (or required to
be taken out or maintained) in accordance with Clause 21.13 (Insurances) and/or Schedule 8 (Insurances), with respect to any part of any of the
Insurances.

“Relevant
Reports” has the meaning given to it in Clause 19.10 (No Misleading Information).

“Repayment Date”
means each date specified as such in Schedule 11 (Repayment
Schedule).

“Repeating
Representations” means the representations and warranties set out in
Clause 19 (Representations) other than those set out in Clauses 19.3
(Legal Validity), 19.4 (No Conflict), 19.5 (Validity and
Admissibility in Evidence),
19.6 (Governing Law and Enforcement and Immunity), 19.7 (Withholding
Tax), 19.8 (Stamp Duty), 19.10 (No Misleading Information),
19.14(a) and (c) (Security Documents and
Assets), 19.15 (Other Business), 19.16
(No Breach), 19.17 (Taxes), 19.18 (Absence of
Obligations), 19.19 (No Amendment), 19.20 (Subsidiaries), 19.21 (Transaction Documents),
19.23 (Intellectual Property) 19.24 (Ownership of Borrower),
19.25(a) (Site) and 19.27 (Affiliates).

“Restricted Payment” means any dividend, return of capital or other
payment or distribution in respect of any Share (or the repurchase, redemption
or retirement thereof)

 30
 

 

or in respect of any
subordinated debt (including but not limited to any Subordinated Obligation) or
any other payment of whatever nature to the Shareholder or any of its
Affiliates (except for the fees payable to the Shareholder and the Guarantor
for entering into the Sponsor Support Agreement as specified in Clause 17 (Fees) of the Sponsor Support Agreement as
set out in the DSU Fee Agreement as at the date of this Agreement and any fees
payable as set out in the Management Services Agreement as at the date of this
Agreement other than any Excluded Management Services Fees (as defined in the
Accounts Management Agreement)).

“Revenue Compensation
Proceeds” means:

(a)                        any
Insurance Proceeds in respect of delay in start-up;

(b)                       any delay
liquidated damages payable by any contractor (including any amount paid under
any letter of credit or performance bond in relation to delay liquidated
damages);

(c)                        any amount
payable to the Borrower under the Concentrate Sale Agreements;

(d)                       any other
amounts designated from time to time as Revenue Compensation Proceeds by the
Facility Agent and the Borrower.

“Screen Rate”
means the British Bankers’ Association Interest Settlement Rate for the
relevant currency and period and displayed on the appropriate page of the
Reuters screen.  If the agreed page is
replaced or service ceases to be available, the Facility Agent may specify
another page or service displaying the appropriate rate after consultation with
the Borrower and the Facility Lenders.

“Secured Hedging Agreement”
means a Hedging Agreement entered into between the Borrower and a Secured
Hedging Counterparty.

“Secured Hedging
Counterparty” means an Original Facility Lender that enters into a
Hedging Agreement with the Borrower or such other person as may be agreed
between the Borrower and the Facility Agent to be a Secured Hedging Counterparty.

“Secured Obligations”
has the meaning given to it in the Sponsor Support Agreement.

“Secured Parties”
means the Senior Lenders, the Offshore Security Trustee, the Onshore Security
Agent, the Facility Agent and the Secured Hedging Counterparties.

“Security” means
the Onshore Security and the Offshore Security.

“Security Documents”
means the Onshore Security Documents and the Offshore Security Documents.

“Security Agents”
means the Onshore Security Agent and the Offshore Security Trustee and “Security Agent” means either one of them.

 31

 

“Security Interest”
means a mortgage, charge, pledge, lien or other security interest securing any
obligation of any person or any other agreement or arrangement having a similar
effect.

“Semi-Annual Operating
Report” has the meaning given to it in Clause 20.5(b).

“Senior Facility Loan”
means the loan provided by the Facility Lenders under the Facility.

“Senior Lenders”
means prior to an issuance of Bonds, each Facility Lender, and after an
issuance of Bonds, collectively the Facility Lenders and the Bondholders, it
being understood that the Bondholders shall collectively count as one Senior
Lender.

“Senior Loans”
means prior to an issuance of Bonds, the Senior Facility Loan, and after an
issuance of Bonds, collectively the Senior Facility Loan and the Bonds.

“Senior Loan Documents”
means this Agreement and the Indenture.

“Shareholder”
means Gold Fields Corona (BVI) Limited, a company incorporated under the laws
of the British Virgin Islands and having its registered office at 9 Columbus
Centre, Pelican Drive, Road Town, Tortola, British Virgin Islands.

“Shareholder
Contributions” has the meaning given to it in the Sponsor Support
Agreement.

“Share Pledge”
means the share pledge (guarantia mobiliaria sobre
acciones) dated on or about the date of this Agreement pursuant to
which the Shareholder grants a pledge over the Initial Ownership Interest.

“Shares” means
all issued and outstanding voting shares from time to time of the Borrower.

“Site” means the
site upon which the facilities for the Project are to be constructed and
operated.

“Specified Time”
means a time determined in accordance with Schedule 10 (Timetables).

“Sponsor
Support Agreement” has the meaning given to it in the Recitals.

“Subordinated
Loans” has the meaning given to it in
the Sponsor Support Agreement.

“Subordinated
Obligations” has the meaning given to it in the Sponsor Support
Agreement.

“Subordinated
Parties” has the meaning given to it in the Sponsor Support
Agreement.

“Tax”
means any tax, levy, impost, duty (including stamp duties) or other charge or
withholding of a similar nature (including any penalty or interest payable in
connection 

 32
 

 

with any failure to pay or any
delay in paying any of the same) and “Taxes”
shall be construed accordingly.

“Tax Deduction”
means a deduction or withholding for or on account of Tax from a payment under
a Financing Document.

“Tax Payment”
has the meaning given to it in Clause 13.3 (Tax Credit).

“Technical Agent”
means Citigroup Global Markets Inc. of 388 Greenwich Street, NY 10013, New
York, United States of America or any substitute technical agent appointed by
the Majority Lenders.

“Third
Parties Act” has the meaning given to it in Clause 1.4 (Third Party Rights).

“Total Commitments” means the aggregate of the Commitments of each Facility
Lender under this Agreement being US$150,000,000 at the date of this Agreement.

“Tranche” has
the meaning given to it in Clause 2.1 (The Facility).

“Tranche A Advance”
has the meaning given to it in Clause 5.1 (Timing of Advances).

“Tranche A Amount”
has the meaning given to it in Clause 2.1 (The Facility).

“Tranche A Commitment”
means, in relation to a Facility Lender, its Commitment with regards to the
Tranche A Commitment.

“Tranche B Advance”
has the meaning given to it in Clause 5.1 (Timing of Advances).

“Tranche B Amount”
has the meaning given to it in Clause 2.1 (The Facility).

“Tranche B Commitment”
means, in relation to a Facility Lender, its Commitment with regards to the
Tranche B Commitment.

“Transaction Documents”
means the Indenture (if any), the Financing Documents and the Project
Documents.

“Transferability Event”
means any of the following:

(a)                        the
inability of the Borrower to obtain Dollars in a lawful market of Peru; or

(b)                       the
inability of the Borrower or the Facility Agent to effect the transfer outside
Peru of Dollars lawfully obtained directly or indirectly to the Finance Parties
under the Financing Documents; or

(c)                        the
introduction of a requirement binding on the Borrower pursuant to Applicable
Law requiring the Borrower to repatriate to Peru and retain onshore Peru all or
any amounts payable to the Borrower by a counterparty located offshore Peru,

provided that (i) such
Transferability Event affects the Borrower’s ability to comply with its payment
obligations under this Agreement (taking into account, among other 

 33
 

 

things, the provisions of the Sponsor Support
Agreement and availability to the Borrower of Dollars from other sources,
including, without limitation, revenues received under the Concentrate Sale
Agreements) and (ii) the Borrower or the Facility Agent have made all
reasonable efforts to obtain, convert and/or transfer such Dollars in
accordance with the laws, regulations and procedures of Peru, through all
customary lawful channels that could have been reasonably utilised.

 “Transfer Certificate” means a certificate substantially in
the form set out in Schedule 5 (Form of Transfer
Certificate) or any other form agreed between the Facility Agent and
the Borrower.

“Transfer
Date” means, in relation to a transfer, the later of (a) the
proposed Transfer Date specified in the Transfer Certificate and (b) the date
on which the Facility Agent executes the Transfer Certificate.

“Transmission Services
Agreement” means an agreement to be entered into on the terms
described in the Sponsor Support Agreement as a condition to the occurrence of
the Financial Completion Date between the Borrower and Compañía Transmisora
Norperuana S.R.L, relating to the operation and maintenance of, and the
transmission of power via, a power line to the Site.

“Unpaid Sum”
means any sum due and payable but unpaid by the Borrower under the Financing
Documents.

“VAT” means
value added tax as provided for in Decreto Supremo 055-99-EF (“Texto Unico Ordenado de lay Ley del Impuesto General a las Ventas e
Impuesto Selectivo al Consumo”), as amended, and its regulations
approved by Decreto Supremo 029-94-EF, as amended, and any other tax of a
similar nature.

“War” means war
(declared or undeclared), civil war, revolution, insurrection, civil strife or
terrorism (other than any such acts undertaken primarily to achieve labour or
student objectives or any acts of violence directed at a specific individual or
individuals which is motivated by personal reasons specific to the parties,
including robbery, kidnapping, assault and murder) in Peru which directly or
proximately causes (i) cessation of substantially all construction or operation
of the Project for a period of at least thirty (30) consecutive days and
renders it unreasonable or impossible without unreasonable risk of physical
harm to the Project workers at the Site to resume significant construction or
operation activities at the Project or (ii) physical damage to or destruction
of the Borrower’s assets to such extent that it would be unreasonable for the
Borrower to proceed to completion of the Project.

“Website Facility Lenders”
has the meaning given to it in Clause 20.15 (Use of
Websites).

 34
 

 

1.2             Construction

(a)                        Unless a
contrary indication appears, any reference in this Agreement to:

(i)                          any
“Account Bank”, any “Agent”, the “Borrower”, the “Facility
Agent”, the “Technical Agent”, any “Finance Party”, any “Facility Lender”, any “Obligor”, any “Party”, the “Offshore
Security Trustee” or the “Onshore
Security Agent”, or any other person shall be construed so as to
include its successors in title, permitted assigns and permitted transferees;

(ii)                       an
“acquisition” shall be construed so as
to include any purchase, taking of a lease, assignment, conveyance, transfer or
gift, acquisition of any form of ownership, title, estate or interest, subscription
for an investment and any option or pre—emption right to do any of the
foregoing and “acquire” shall be construed
accordingly;

(iii)                    the
“agreed form” of a document shall be
construed as a reference to the form of that document initialled on or prior to
the date hereof for the purposes of identification as such by or on behalf of
the Borrower and the Facility Agent;

(iv)                   “assets” includes any rights or interest in,
to or under property, revenues and rights of any description whatsoever
(whether real, personal or mixed and whether tangible or intangible), whether
currently owned or hereafter acquired and where ever located;

(v)                      “control” shall be construed such that a company or
corporation shall control another company or corporation if:

(A)                    more
than half the issued share capital of that other company or corporation is
beneficially owned, directly or indirectly, by the first company or
corporation; or

(B)                      it
is able to direct the affairs and/or control the composition of the board of
directors or equivalent body of that company or corporation;

(vi)                   an
“encumbrance” shall be construed as a
reference to (A) a mortgage, charge (whether legal or equitable, fixed or
floating), pledge, lien or other encumbrance securing any obligation of any
person; (B) any arrangement under which money or claims to, or the benefit of,
a bank or other account may be applied, set—off or made subject to a
combination of accounts so as to effect payment of sums owed or payable to any
person; or (C) any other type of preferential arrangement (including title
transfer or retention, sale and leaseback or sale and purchase arrangements)
having a similar effect;

(vii)                a
“Transaction Document” or any
other agreement or instrument is, save as otherwise provided in this Agreement,
a reference to that Transaction Document or other agreement or instrument as
amended, restated, varied, 

 35
 

 

novated, replaced or supplemented in accordance with the terms of this
Agreement;

(viii)             a
“holding company” of a company or
corporation shall be construed as a reference to any company or corporation of
which the first mentioned company or corporation is a subsidiary;

(ix)                     “indebtedness” includes any obligation
(whether incurred as principal or as surety) for the payment or repayment of
money, whether present or future, actual or contingent;

(x)                        a
“person” includes any person,
firm, company, corporation, government, state or agency of a state or any
association, trust or partnership (whether or not having separate legal
personality) or two or more of the foregoing;

(xi)                     a
“regulation” includes any
regulation, rule, official directive, request or guideline (whether or not
having the force of law) of any governmental, intergovernmental or
supranational body, agency, department or regulatory, self—regulatory or other
authority or organisation;

(xii)                  “repay” (or any derivative form thereof) shall, subject to
any contrary indication, be construed so as to include “prepay”
(or, as the case may be, the corresponding derivative form thereof);

(xiii)               a
“subsidiary” of
a company or corporation shall be construed as a reference to any company or
corporation:

(A)                    which
is controlled, directly or indirectly, by the first—mentioned company or
corporation;

(B)                      more
than half the issued share capital of which is beneficially owned, directly or
indirectly, by the first—mentioned company or corporation; or

(C)                      which
is a subsidiary of another subsidiary of the first—mentioned company or
corporation;

(xiv)              “value added tax” shall be construed so as to include any
similar tax in any relevant jurisdiction including any similar tax which may be
imposed in place thereof from time to time;

(xv)                 the
“winding—up”, “dissolution”, “administration”
or “bankruptcy” of a person shall be
construed so as to include any equivalent or analogous proceedings under the
laws of any jurisdiction in which such person is incorporated or resident or
any jurisdiction in which such person carries on business or in which any of
its assets are located (including the seeking of liquidation, winding—up,
appointment of a bankruptcy trustee, 

 36
 

 

reorganisation,
dissolution, administration, arrangement, adjustment, protection or relief of
debtors, insolvency and suspension of payments);

(xvi)              a
provision of law is a reference to that provision as amended or re—enacted; and
a statute, statutory provision or code shall be construed as a reference to
such statute, statutory provision or code as the same may have been, or may
from time to time be, amended or re—enacted and all instruments, orders, plans,
regulations, bye—laws, permissions and directions at any time made thereunder;

(xvii)           a
time of day is a reference to London time; and

(xviii)        a
requirement on the Majority Facility Lenders to act reasonably is a requirement
that each Facility Lender is to act reasonably in deciding whether or not to
vote in favour of the relevant consent, waiver or other discretion.

(b)                      Section,
Clause and Schedule headings are for ease of reference only.

(c)                       Unless
a contrary indication appears, a term used in any other Financing Document or
in any notice given under or in connection with any Financing Document has the
same meaning in that Financing Document or notice as in this Agreement.

(d)                      A
Default is “continuing” if it has
not been remedied or waived.

1.3             Currency Symbols and Definitions

(a)                       “US$” and “Dollars”
denotes the lawful currency of the United States of America.

(b)                      “Peruvian Nuevo Sol”, “nuevo
sol” and “PEN” denotes
the lawful currency of Peru.

1.4             Third Party Rights

A person who is not a Party has no right under the Contracts (Rights of
Third Parties) Act 1999 (the “Third Parties Act”)
to enforce or to enjoy the benefit of any term of this Agreement.

1.5             Conflict with other Financing Documents

In the event of any
conflict or inconsistency between the provisions of this Agreement and any
other Financing Document, the provisions of this Agreement shall govern and
prevail.

 37
 

 

SECTION 2

THE FACILITY

 

2.                            THE
FACILITY

2.1             The Senior Loans

(a)                        Subject
to the terms of this Agreement, the Facility Lenders make available to the
Borrower a term loan facility in an aggregate amount of US$150,000,000 (the “Facility”) which shall be split into the
following two (2) tranches (each a “Tranche”):

(i)                          a
US$50,000,000 commercial bank tranche (the “Tranche
A Amount”); and

(ii)                       a
US$100,000,000 bond bridge tranche (the “Tranche
B Amount”).

(b)                       The
Facility Lenders acknowledge and agree that, following the date hereof, the
Borrower shall have the right to issue bonds up to an aggregate principal
amount of US$100,000,000 (the “Bonds”)
under an indenture to be entered into between the Borrower and the Bondholders’
Representative on terms consistent with the provisions of Schedule 14 (Conditions for Issuance of Bonds) or otherwise on terms and
conditions acceptable to the Facility Agent, acting reasonably (the “Indenture”).

(c)                        Immediately
prior to the closing of the first issuance of the Bonds by the Borrower (the “Bonds Closing Date”), or before if required
by the Peruvian Securities Market regulations or regulating authority, the
Bondholders’ Representative shall become a party to the Master Security and
Intercreditor Deed by entering into, in its capacity as Bondholders’
Representative, a Bondholders’ Representative Accession Deed and thereupon the
Bondholders’ Representative and the Bondholders shall have all the rights and
obligations of, respectively, the Bondholders’ Representative and the
Bondholders under the Master Security and Intercreditor Deed.

(d)                       On
each date of issuance of Bonds by the Borrower any undrawn portion of the
Tranche B Commitment, if any, shall be automatically cancelled (the “Cancelled Undrawn Amount”) without penalty (to the extent of
the amount of the proceeds of the Bonds issued on such date) and the amount
equal to the excess of (i) the net proceeds of the Bonds issued on such date
over (ii) the applicable Cancelled Undrawn Amount, shall be applied to
mandatory prepayment of the outstanding Tranche B Amount (without prepaying the
Tranche A Amount) in accordance to Clause 8.6 (Mandatory
Prepayment from proceeds of Bond) subject to payment of any Break
Costs but without any prepayment fee or penalty.

2.2             Finance Parties’ rights and obligations

(a)                        The
obligations of each Finance Party under the Financing Documents are
several.  Failure by a Finance Party to
perform its obligations under the Financing 

 38
 

 

Documents does
not affect the obligations of any other Party under the Financing
Documents.  No Finance Party is
responsible for the obligations of any other Finance Party under the Financing
Documents.

(b)                       The
rights of each Finance Party under or in connection with the Financing
Documents are separate and independent rights and any debt arising under the
Financing Documents to a Finance Party from the Borrower shall be a separate
and independent debt.

(c)                        A
Finance Party may, except as otherwise stated in the Financing Documents,
separately enforce its rights under this Agreement.

3.                            PURPOSE

3.1             Purpose

The Borrower shall apply all Advances under
the Facility towards the financing of the Project Costs.

3.2             Monitoring

No Finance Party is bound
to concern itself, monitor or verify the application of the proceeds of any
Advance borrowed pursuant to this Agreement.

4.                            CONDITIONS
PRECEDENT

4.1             Conditions Precedent to Financial Close

The Borrower may not
deliver a Drawdown Request for the first Advance unless the Facility Agent has
received all of the documents and other evidence listed in Part 1
Schedule 2 (Conditions Precedent) in form and
substance satisfactory to the Facility Agent.

4.2             Notice of Satisfaction

The Facility Agent shall
notify the Borrower and the Facility Lenders promptly upon being satisfied that
the conditions precedent referred to in Clause 4.1 (Conditions
Precedent to Financial Close) have either been satisfied or waived.

4.3             Conditions Precedent to all Advances

It is a condition
precedent to the making of each Advance that on and as of the proposed date for
making of such Advance:

(a)                        no
Default has occurred and is continuing or would result from the proposed
Advance;

(b)                       in
the case of the first Advance, the Representations are true and accurate in all
material respects by reference to the facts and circumstances then subsisting;

 39
 

 

(c)                        in
the case of each subsequent Advance, the Repeating Representations are true and
accurate in all material respects by reference to the facts and circumstances
then subsisting;

(d)                       all
Shareholder Contributions required by the terms of the Financing Documents to
be made at that time shall have been made;

(e)                        delivery
of a Drawdown Request by the Borrower and a Note in accordance with Clause
12.1(a) (Delivery of Notes); and

(f)                          the
Sponsor Support Agreement remains in full force and effect on its terms at that
time,

provided
that no Advance (other than the first Advance) shall
be required to be made unless all registrations and filings required in
accordance with Applicable Law in connection with the enforceability of and/or
the creation and/or perfection of first-ranking priority Security under each
Security Document (other than the Offshore Share Security and any document
related thereto) have been effected.

4.4             Conditions Precedent to Second Advance

The Borrower may not
deliver a Drawdown Request for the second Advance unless the Facility Agent has
received all of the documents and other evidence listed in Part 2 of
Schedule 2 (Conditions Precedent) in form and
substance satisfactory to the Facility Agent.

4.5             Maximum Limit

The Borrower may deliver
no more than two (2) Drawdown Requests in respect of the Facility in any
calendar month.

 40
 

 

SECTION 3

UTILISATION

 

5.                            UTILISATION

5.1             Timing of Advances

Subject to Clause 4.3 (Conditions Precedent to all Advances), the Borrower shall
have the right to request Advances from the Facility Lenders in accordance with
Schedule 1 (The Original Facility Lenders and
Commitments) provided that:

(a)                        the
Borrower shall first request Advances (a “Tranche
A Advance”) from the Facility Lenders on a pro rata
basis up to their respective Tranche A Commitment; and

(b)                       after
the Facility Lenders have made Advances in an amount equal to their respective
Tranche A Commitment, the Borrower may request any subsequent Advances (a “Tranche B Advance”) from the Facility
Lenders on a pro rata basis up to their
respective Tranche B Commitment.

5.2             Delivery of a Drawdown Request

The Borrower may utilise
the Facility by delivery to the Facility Agent of a duly completed Drawdown
Request no later than the Specified Time on the date falling five (5) Business
Days before the proposed Drawdown Date.

5.3             Completion of a Drawdown Request

(a)                        Each
Drawdown Request for an Advance is irrevocable and will not be regarded as
having been duly completed unless:

(i)                          the
proposed Drawdown Date is a Business Day within the Availability Period;

(ii)                       the
currency and amount of the Advance comply with Clause 5.4 (Currency and
amount); and

(iii)                    the
proposed Interest Period complies with Clause 10.1 (Selection of
Interest Periods).

(b)                       Only
one (1) Advance may be requested in each Drawdown Request.

5.4             Currency and amount

(a)                        The
currency specified in a Drawdown Request must be Dollars.

(b)                       The
amount of the proposed Advance must be an amount which is a minimum of
US$500,000 (and an integral multiple of US$500,000).

 41
 

 

5.5             Facility Lenders’ Participation

(a)                        If
the conditions set out in this Agreement have been met, each Facility Lender
shall make its participation in each Advance available no later than the
Drawdown Date through its Facility Office.

(b)                       The
amount of each Facility Lender’s participation in each Advance will be equal to
the proportion borne by its Available Commitment to the Available Facility
immediately prior to making the Advance.

(c)                        The
Facility Agent shall notify each Facility Lender of the amount of its
participation in each Advance no later than the Specified Time on the date
falling three (3) Business Days before the proposed date of that Advance.

 42

 

SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

6.          REPAYMENT

The Borrower shall repay the Advances made to it under the Facility by
repaying:

(a)        on each Repayment Date on
or prior to the Final Maturity Date, an amount which reduces the outstanding
Advances under the Facility by an amount in US Dollars (the “Facility Repayment Instalment”) equal to
the product of (i) the aggregate amount of the Advances borrowed by the
Borrower under the Facility immediately following the end of the Availability
Period in relation to the Facility, and (ii) the relevant percentage amount set
out in the second column headed “Repayment (%) Facility”
in Schedule 11 (Repayment Schedule) (as reduced from time to time by any
prepayment); and

(b)        on the Final Maturity
Date, the full amount of the outstanding Advances on that date under the
Facility.

7.          PREPAYMENT
AND CANCELLATION

7.1             Illegality

If it becomes
unlawful in any jurisdiction for a Facility Lender to perform any of its
obligations as contemplated by this Agreement or to fund or maintain its
participation in any Advance:

(a)        that Facility Lender shall
promptly notify the Facility Agent upon becoming aware of that event;

(b)        upon the Facility Agent
notifying the Borrower, the Commitment of that Facility Lender will be immediately
cancelled; and

(c)        the Borrower shall repay
that Facility Lender’s participation in the Advances on the last day of the
Interest Period for each Advance occurring after the Facility Agent has
notified the Borrower or, if earlier, the date specified by the Facility Lender
in the notice delivered to the Facility Agent (being no earlier than the last
day of any applicable grace period permitted by law).

7.2        Voluntary Cancellation by the Borrower

At any time during
the Availability Period, the Borrower may, without penalty or cancellation fee,
if it gives the Facility Agent not less than five (5) Business Days’ prior
written notice, cancel the whole or any part of any undrawn Commitment if:

(a)        the Facility Agent is
satisfied (acting on the advice of the Independent Technical Consultant, if
necessary) that there will be no Forecast Funding Shortfall following such
cancellation; and

 43
 

 

(b)        the Available Commitment
of each Facility Lender is cancelled on a pro rata basis.

7.3        Voluntary
Prepayment by Borrower

(a)        The Borrower may upon five
(5) Business Days’ prior written notice elect to prepay the whole or any part
of the Senior Facility Loan provided that
(i) the Facility Agent is satisfied (acting on the advice of the Independent
Technical Consultant, if necessary) there will be no Forecast Funding Shortfall
following such prepayment and (ii) any prepayment in part of the Senior
Facility Loan must be in a minimum amount of US$500,000 and is an integral
multiple of US$500,000.

(b)        If the Borrower elects to
make a voluntary prepayment under the Facility, it shall give the Facility
Agent no less than five (5) Business Days’ prior written notice of:

(i)         the aggregate amount of the proposed
prepayment (the “Prepayment Amount”);
and

(ii)        the date on which it proposes to make such
prepayment.

(c)        If the Borrower elects to
make a voluntary prepayment under Clause 7.3(a):

(i)         such prepayment shall be made on the date so
notified; and

(ii)        the Prepayment Amount shall be applied pro rata between the remaining Facility Repayment
Instalments.

(d)        Without prejudice to its
right to make any mandatory prepayments required under the Indenture, the
Borrower may not make any voluntary prepayment of the outstanding amounts under
the Bonds until the Senior Facility Loan has been fully repaid.

7.4        Right of
Repayment and Cancellation

(a)        If:

(i)         any sum payable to any Facility Lender by the
Borrower is required to be increased under Clause 13.1(c) (Payments to
be Free and Clear); or

(ii)        any Facility Lender claims indemnification from
the Borrower under Clause 13.2 (Tax Indemnity)
or Clause 14.1 (Increased Costs),

the Borrower may,
whilst the circumstance giving rise to the requirement or indemnification
continues, give the Facility Agent notice of cancellation of the Commitment of
that Facility Lender and its intention to procure the repayment of that
Facility Lender’s participation in the Senior Facility Loan.

 44
 

 

(b)        On receipt of a notice
referred to in Clause 7.4(a), the Commitment of that Facility Lender shall
immediately be reduced to zero.

(c)        Subject to clause 6.3 (Withdrawals from the Revenue Accounts) of the Account
Management Agreement, on the last day of each Interest Period which ends after
the Borrower has given notice under Clause 7.4(a) (or, if earlier, the date
specified by the Borrower in that notice), the Borrower shall repay that
Facility Lender’s participation in the Senior Facility Loan.

7.5        Restrictions

(a)        Any notice of cancellation
or voluntary prepayment given under this Clause 7 shall be irrevocable
and, unless a contrary indication appears in this Agreement, shall specify the
date or dates upon which the relevant cancellation or prepayment is to be made
and the amount of that cancellation or prepayment and, in the case of
prepayment, oblige the Borrower to prepay.

(b)        Any prepayment under this
Agreement shall be made together with accrued interest on the amount prepaid
and, subject to any Break Costs, without premium or penalty.

(c)        The Borrower shall not
repay or prepay all or any part of the Advances or cancel all or any part of
the Commitments except at the times and in the manner expressly permitted in
this Agreement.

(d)        The Borrower may not
re-borrow any part of the Facility which is prepaid or repaid.

(e)        No amount of the Available
Commitments cancelled under this Agreement may be subsequently reinstated.

8.          MANDATORY
PREPAYMENTS

8.1        Mandatory
Prepayment from Insurance Proceeds

(a)        In the event of a whole or
partial loss or damage to the Project after the Financial Completion Date, if
the Insurance Proceeds exceed US$10,000,000, the Borrower shall apply all such
Insurance Proceeds in prepayment of the Senior Facility Loan, provided that the Borrower will instead be permitted to
repair or rebuild the Project with such Insurance Proceeds if:

(i)         it has sufficient committed funds (including
such insurance proceeds) to do so; and

(ii)        the Independent Technical Consultant has
confirmed to the Facility Lenders that the proposed repair or rebuild will be
adequate and sufficient for the Borrower to operate the Project in the manner
demonstrated in the Base Case.

 45
 

 

(b)        The Insurance Proceeds
referred to in Clause 8.1(a) shall exclude any insurance proceeds payable in
respect of claims by third parties against the Borrower and any Revenue
Compensation Proceeds.

8.2        Mandatory Prepayment
from Performance Liquidated Damages

In the event any
amount is paid to the Borrower as performance liquidated damages under a
Project Document after the Financial Completion Date as a result of performance
tests not being met (including but not limited to any amount paid under any
letter of credit or performance bond in relation to the performance liquidated
damages), and the amount of such liquidated damages exceeds US$10,000,000, the
Borrower shall apply all such proceeds in prepayment of the Senior Facility
Loan.

8.3        Mandatory
Prepayment from Capital Compensation Proceeds

Following receipt
of any Capital Compensation Proceeds by the Borrower, the Shareholder or the
Guarantor, as applicable, other than any amounts received by the Borrower as
referred to in Clauses 8.1 (Mandatory Prepayment from
Insurance Proceeds) and 8.2 (Mandatory Prepayment from
Performance Liquidated Damages), the Borrower shall apply or procure
the application of such Capital Compensation Proceeds in prepayment of the
Senior Facility Loan.

8.4        Mandatory
Prepayment from other Debt or Equity Issuance

Following any
issuance by the Borrower of debt or equity securities (other than the Bonds or
any issuance of debt or equity securities to the existing shareholders of the
Borrower) the Borrower shall apply the net proceeds of such issuance in the
prepayment of the Senior Facility Loan.

8.5        Mandatory
Prepayment on Restricted Payments

In the event that
the Borrower is required to prepay the Facility under Clause 22.16 (Transfers to Distributions Account) upon making a Restricted
Payment, the Borrower shall prepay the Facility in an amount equal to 50% of
such Restricted Payment.

8.6        Mandatory
Prepayment from proceeds of Bond issuance

Following the
issuance of any Bonds, the Borrower shall apply the amount equal to the excess
of (i) the net proceeds of the Bonds issued on such date over (ii) the
Cancelled Undrawn Amount relating to such issuance, to mandatory prepayment of
the outstanding Tranche B Amount (without prepaying the Tranche A Amount).

8.7        Mandatory
Prepayment – General

The prepayments in Clauses 8.1 (Mandatory
Prepayment from Insurance Proceeds) to Clause 8.6 (Mandatory Prepayment from proceeds of Bond issuance) shall
be applied pro rata between the
remaining Facility Repayment Instalments.

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SECTION
5

COSTS OF ADVANCE

9.          INTEREST

9.1        Calculation
of interest

The rate of
interest on each Advance for each Interest Period is the percentage rate per
annum which is the aggregate of the applicable:

(a)        Margin;

(b)        LIBOR; and

(c)        Mandatory Cost, if any.

9.2        Payment of
interest

On the last day of
each Interest Period the Borrower shall pay accrued interest on that Advance.

9.3        Default
interest

(a)        Default interest shall
accrue on any Unpaid Sum from the due date up to the date of actual payment
(both before and after judgment) at a rate which, subject to Clause 9.3(b), is
2 (two) per cent. higher than the rate which would have been payable if the
overdue amount had, during the period of non-payment, constituted an Advance in
the currency of the overdue amount for successive Interest Periods, each of a
duration selected by the Facility Agent (acting reasonably).  Any interest accruing under this
Clause 9.3 shall be immediately payable by the Borrower on demand by the
Facility Agent.

(b)        If any overdue amount
consists of all or part of an Advance which became due on a day which was not
the last day of an Interest Period relating to that Advance:

(i)         the first Interest Period for that overdue
amount shall have a duration equal to the unexpired portion of the current
Interest Period relating to that Advance; and

(ii)        the rate of interest applying to the overdue
amount during that first Interest Period shall be 2 (two) per cent. higher than
the rate which would have applied if the overdue amount had not become due.

(c)        Default interest (if
unpaid) arising on an Unpaid Sum will be compounded with the overdue amount at
the end of each Interest Period applicable to that overdue amount but will
remain immediately due and payable.

9.4        Notification
of rates of interest

The Facility Agent
shall promptly notify the Facility Lenders and the Borrower of the
determination of a rate of interest under this Agreement.

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10.        INTEREST PERIODS

10.1      Selection of
Interest Periods

(a)        In the case of Advances,
the Borrower shall select an Interest Period for an Advance in the Drawdown
Request for that Advance.

(b)        Subject to this
Clause 10, the Borrower may select an Interest Period of one (1), two (2),
three (3) or six (6) Months or any other period agreed between the Borrower and
the Facility Agent (acting on the instructions of the Facility Lenders).

(c)        The Borrower shall select
and notify the Facility Agent of the First Interest Period in the relevant
Drawdown Request, and the subsequent Interest Periods, prior to the last day of
each Interest Period.

(d)        An Interest Period for an
Advance shall not extend beyond the Final Maturity Date.

(e)        Each Interest Period for
an Advance shall start on the Drawdown Date for that Advance or (if already
made) on the last day of its preceding Interest Period.

10.2      Non–Business
Days

If an Interest
Period would otherwise end on a day which is not a Business Day, that Interest
Period will instead end on the next Business Day in that Month (if there is
one) or the preceding Business Day (if there is not).

10.3      Consolidation
of Advances

(a)        If two or more Interest
Periods:

(i)         relate to Advances made under the same
Tranche; and

(ii)        end on the same date,

those Advances
will be consolidated into, and treated as, a single Advance made on the last
day of the Interest Period.

(b)        Any Advance made during an
Interest Period for a previous Advance (an “Existing
Interest Period”) will, subject to Clauses 10.3(c) and (d), have an
initial Interest Period ending on the last day of such Existing Interest
Period.

(c)        The Facility Agent shall
be entitled to shorten any Interest Period for any Advance to ensure that the
aggregate principal amount of Advances with an Interest Period ending on a
Repayment Date is not less than the amount of principal due to be repaid on
that Repayment Date.

(d)        If Clause 10.3(b) would
result in an Advance having an Interest Period of less than one (1) Month, then
the initial Interest Period for such Advance will be such period as the
Facility Agent and the Borrower may agree.

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11.        CHANGES
TO THE CALCULATION OF INTEREST

11.1      Absence of
quotations

Subject to
Clause 11.2 (Market disruption), if the LIBOR
is to be determined by reference to the Reference Bank(s) but a Reference Bank
does not supply a quotation by the Specified Time on the Quotation Day, the
applicable LIBOR shall be determined on the basis of the quotations of the
remaining Reference Bank(s).

11.2      Market
disruption

(a)        If a Market Disruption
Event occurs in relation to an Advance for any Interest Period, then the rate
of interest on each Facility Lender’s share of that Advance for the Interest
Period shall be the rate per annum which is the sum of:

(i)         the Margin; and

(ii)        the rate notified to the Facility Agent by that
Facility Lender as soon as practicable and in any event before interest is due
to be paid in respect of that Interest Period, to be that which expresses as a
percentage rate per annum the cost to that Facility Lender of funding its
participation in that Advance from whatever source it may reasonably select.

(b)        In this Agreement, “Market Disruption Event” means:

(i)         at or about noon on the Quotation Day for the
relevant Interest Period the Screen Rate is not available and none or only one
of the Reference Banks supplies a rate to the Facility Agent to determine LIBOR
for Dollars for the relevant Interest Period; or

(ii)        before close of business in London on the
Quotation Day for the relevant Interest Period, the Facility Agent receives
notifications from a Facility Lender or Facility Lenders (whose participations
in an Advance exceed 51 per cent. of that Advance) that LIBOR does not
accurately reflect its cost of funding.

11.3      Alternative
basis of interest or funding

(a)        If a Market Disruption
Event occurs and the Facility Agent so requires, the Facility Agent and the
Borrower shall enter into negotiations (for a period of not more than thirty
(30) days) with a view to agreeing a substitute basis for determining the rate
of interest.

(b)        Any alternative basis
agreed pursuant to Clause 11.3(a) shall, with the prior consent of all the
Facility Lenders and the Borrower, be binding on all Parties.

11.4      Break Costs

(a)        The Borrower shall, within
three (3) Business Days of demand by a Finance Party, pay to that Finance Party
its Break Costs attributable to all or any part of an

 49
 

 

Advance or Unpaid Sum being paid by the
Borrower on a day other than the last day of an Interest Period for that
Advance or Unpaid Sum.

(b)        Each Facility Lender
shall, as soon as reasonably practicable after a demand by the Facility Agent,
provide a certificate confirming the amount of its Break Costs for any Interest
Period in which they accrue.

 50
 

 

SECTION 6

NOTES

12.        THE NOTES

12.1      Delivery of
Notes

The Borrower shall
deliver to the Facility Agent:

(a)        on or before the date on
which it delivers each Drawdown Request in respect of a Tranche A Advance or a
Tranche B Advance, a Note having a face amount equal to the sum of:

(i)         the amount of that Advance; and

(ii)        the amount of interest that will accrue on that
Advance during the Interest Period selected in such Drawdown Request; and

(b)        on each date on which it
repays or prepays part of a Tranche A Advance or a Tranche B Advance a Note
having a face amount equal to the sum of:

(i)         the amount of that Advance that remains
outstanding after that repayment or prepayment; and

(ii)        the amount of interest that will accrue, during
the remainder of the applicable Interest Period, on the amount of that Advance
that remains outstanding after such repayment or prepayment,

whereupon the
Facility Agent shall immediately destroy the Note delivered to it by the
Borrower prior to such repayment or prepayment and promptly confirm to the
Borrower in writing that it has done so, provided that, should the Borrower
have notified the Facility Agent in writing that the Borrower requires such
Note to be returned to it, promptly return such Note to the Borrower.

12.2      Destruction
of Other Notes

In addition to
destroying Notes as provided in Clause 12.1(b), the Facility Agent shall on
each date on which the Borrower repays or prepays in full a Tranche A Advance
or a Tranche B Advance and the interest due in respect of that Advance for the
applicable Interest Period, immediately destroy the Note delivered to it by the
Borrower prior to such repayment or prepayment and promptly confirm to the
Borrower in writing that it has done so, provided that, should the Borrower
have notified the Facility Agent in writing that the Borrower requires such
Note to be returned to it, promptly return such Note to the Borrower.

12.3      Execution Formalities

Each Note to be
delivered by the Borrower pursuant to Clause 12.1 (Delivery of
Notes) shall be:

(a)        signed by a duly
authorised signatory of the Borrower;

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(b)        dated the date on which it
is delivered to the Facility Agent; and

(c)        otherwise completed in
such manner as the Facility Agent (acting reasonably) may consider necessary to
ensure that the Note is enforceable under the laws of Peru.

12.4      Presentment
of the Notes

The Facility Agent
agrees that no Note shall be presented for payment unless the Facility Agent
has issued a notice to the Borrower declaring the Tranche A Advances and/or (as
applicable) the Tranche B Advances (or any of them) to be immediately due and
payable subject to and in accordance with Clause 25.1(b) (Remedies
Following Default).

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SECTION 7

ADDITIONAL PAYMENT OBLIGATIONS

13.        TAX GROSS UP
AND TAX INDEMNITY

13.1      Payments to
be Free and Clear

(a)        The Borrower shall make
all payments to be made by it under any Financing Document without any Tax
Deduction, unless a Tax Deduction is required by  Applicable Law.

(b)        The Borrower shall,
promptly upon becoming aware that it must make a Tax Deduction (or that there
is any change in the rate or the basis of a Tax Deduction), notify the Facility
Agent, who will notify the relevant Finance Parties.  Similarly, a Finance Party shall notify the
Facility Agent on becoming so aware in respect of a payment payable to that
Finance Party.  If the Facility Agent
receives such notification from a Finance Party it shall notify the Borrower.

(c)        If a Tax Deduction is
required by Applicable Law to be made by the Borrower, the amount of the
payment due from the Borrower shall be increased by such additional amount as
is necessary to ensure that the person to which that sum is due receives on the
due date and retains (free from any liability in respect of any such Tax
Deduction) a net sum equal to what it would have received and so retained if no
Tax Deduction had been required or made. 
Alternatively, if permitted by Applicable Law, the Borrower will assume
the tax obligation to pay the amount of such Tax Deduction.

(d)        If the Borrower is
required to make a Tax Deduction, the Borrower shall make that Tax Deduction or
assume the tax obligation related to such Tax Deduction and will make any
payment required in connection therewith within the time allowed and in the
minimum amount required by Applicable Law.

(e)        Within thirty (30) days of
making either a Tax Deduction or any payment required in connection with that
Tax Deduction, the Borrower shall deliver to the Facility Agent evidence
reasonably satisfactory to the Finance Party entitled to such payment that the
Tax Deduction has been made or (as applicable) any appropriate payment paid to
the relevant taxing or other authority.

13.2      Tax
Indemnity

(a)        The Borrower shall (within
three (3) Business Days of demand by the Facility Agent) pay to a Finance Party
an amount equal to the loss, liability or cost which that Finance Party
determines will be or has been (directly or indirectly) suffered for or on
account of Tax by that Finance Party in respect of any sum received or
receivable by it under any Financing Document.

(b)        Clause 13.2(a) above shall
not apply:

(i)         with respect to any Tax assessed on a Finance
Party:

 53
 

 

(A)       under the law of the
jurisdiction in which that Finance Party is incorporated or, if different, the
jurisdiction (or jurisdictions) in which that Finance Party is treated as
resident for tax purposes; or

(B)       under the law of the
jurisdiction in which that Finance Party’s Facility Office is located in
respect of amounts received or receivable in that jurisdiction,

if that Tax is imposed on
or calculated by reference to the net income received or receivable (but not
any sum deemed to be received or receivable) by that Finance Party; or

(ii)        to the extent a loss, liability or cost is
compensated for by an increased payment under Clause 13.1 (Payments to be Free and Clear).

(c)        A Finance Party making, or
intending to make, a claim under paragraph (a) above shall promptly notify the
Facility Agent of the event which will give, or has given, rise to the claim,
following which the Facility Agent shall notify the Borrower.

(d)        A Finance Party shall, on
receiving a payment from the Borrower under this Clause 13.2, notify the
Facility Agent.

13.3      Tax Credit

If the Borrower
makes an additional payment under this Clause 13 (Tax Gross Up
and Tax Indemnity) to a Finance Party (a “Tax Payment”)
and that Finance Party determines that it has obtained a refund of Tax or
obtained and used a credit against Tax (a “Tax Credit”)
which is attributable either to an increased payment of which that Tax Payment
forms part or to that Tax Payment, that Finance Party shall pay an amount to
the Borrower which that Finance Party determines will leave it (following that
payment) in the same post–Tax position as it would have been in had the Tax
Payment not been required to be made by the Borrower.

13.4      Double Tax
Treaty Forms

(a)        If the Borrower seeks to
obtain authority, in accordance with a double tax treaty, not to make a Tax
Deduction under any of the Financing Documents which the Borrower would
otherwise be required to make without operation of such double tax treaty, the
Borrower may request in writing that each Finance Party:

(i)         complete and deliver to the relevant agency or
other authority such application forms (if any) specified by the Borrower in
that written request as being necessary to be completed and delivered by such
Finance Party; and

(ii)        at the Borrower’s expense, take such other
action (if any) as is reasonable and is specified by the Borrower to be
necessary for the purpose of the relevant double tax treaty applicable to the
relevant sum paid or at any time payable by the Borrower to that Finance Party.

 54
 

 

(b)        A Finance Party receiving
a request pursuant to paragraph (a) above shall use its reasonable efforts to
comply with such request as soon as reasonably practicable following receipt of
such request provided that such Finance Party:

(i)         is given such assistance by the Borrower in
relation to the matters referred to in this Clause 13.4 as may be required by
it;

(ii)        is able to complete such application form(s)
and take such actions with out disclosing its tax affairs or other business
information relating to it or its operations; and

(iii)       in completing such forms, complying with such
request and/or taking such action it remains at all times in compliance with
all law, regulations and other requirements of any governmental or other agency
or authority or other procedures with which it habitually complies that may be applicable
to it or any of its assets.

13.5      Stamp Taxes

The Borrower shall
pay and, within three (3) Business Days of demand, indemnify each Finance Party
against any cost, loss or liability that Finance Party incurs in relation to
all stamp duty, registration and other similar Taxes payable in respect of any
Financing Document.

13.6      Value Added
Tax

(a)        All consideration
expressed to be payable under a Financing Document by the Borrower to a Finance
Party shall be deemed to be exclusive of any value-added Tax.  If value-added Tax is chargeable on any
supply made by any Finance Party to any person in connection with a Financing
Document, that person shall pay to the Finance Party (in addition to and at the
same time as paying the consideration) an amount equal to the amount of the
value-added Tax.

(b)        Where a Financing Document
requires any person to reimburse a Finance Party for any costs or expenses,
that person shall also at the same time pay and indemnify the Finance Party
against all value-added Tax incurred by the Finance Party in respect of the
costs or expenses to the extent that the Finance Party determines that it is
not entitled to credit or repayment of the value added Tax.

14.        INCREASED
COSTS

14.1      Increased
costs

(a)        Subject to Clause 14.3 (Exceptions), the Borrower shall, within three (3) Business
Days of a demand by the Facility Agent, pay to the Facility Agent for the
account of a Facility Lender the amount of any Increased Costs incurred by that
Facility Lender or any of its Affiliates as a result of (i) the introduction of
or any change in (or in the interpretation, administration or application of)
any law or regulation or (ii) compliance with any law or regulation made
after the date of this Agreement.

 55
 

 

(b)        In this Agreement, “Increased Costs” means:

(i)         a reduction in the rate of return from the
Facility or on a Facility Lender’s (or its Affiliate’s) overall capital;

(ii)        an additional or increased cost; or

(iii)       a reduction of any amount due and payable under
any Financing Document,

which is incurred
or suffered by a Facility Lender or any of its Affiliates to the extent that it
is attributable to that Facility Lender having entered into its Commitment or
funding or performing its obligations under any Financing Document.

14.2      Increased
cost claims

(a)        A Facility Lender
intending to make a claim pursuant to Clause 14.1 (Increased
Costs) shall notify the Facility Agent of the event giving rise to
the claim, following which the Facility Agent shall promptly notify the
Borrower.

(b)        Each Facility Lender
shall, as soon as practicable after a demand by the Facility Agent, provide a
certificate confirming the amount of any Increased Costs in respect of which it
proposes to make a claim under this Clause 14.

14.3      Exceptions

Clause 14.1 (Increased Costs)
does not apply to the extent any Increased Cost is:

(a)        attributable to a Tax
Deduction required by Applicable Law to be made by the Borrower;

(b)        compensated for by Clause
13.2 (Tax Indemnity) (or
would have been compensated for under Clause 13.2 (Tax Indemnity)
but was not so compensated solely because any of the exclusions in Clause
13.2(b) applied);

(c)        attributable to the breach
by the relevant Facility Lender or its Affiliates of any law or regulation; or

(d)        attributable to compliance
with any capital adequacy requirement which has been publicly announced in
writing prior to the date of this Agreement.

15.        OTHER
INDEMNITIES

15.1      Currency
Indemnity

(a)        If any sum due from the
Borrower under any Financing Document (a “Sum”),
or any order, judgment or award given or made in relation to a Sum, has to be
converted from the currency (the “First
Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose of:

(i)         making or filing a claim or proof against the
Borrower; or

 56
 

 

(ii)        obtaining or enforcing an order, judgment or
award in relation to any litigation or arbitration proceedings,

the Borrower
shall, as an independent obligation, within three (3) Business Days of demand,
indemnify each Finance Party to whom that Sum is due against any cost, loss or
liability arising out of or as a result of the conversion including any
discrepancy between (A) the rate of exchange used to convert that Sum from the
First Currency into the Second Currency and (B) the rate or rates of exchange
available to that person at the time of its receipt of that Sum.

(b)        The Borrower waives any
right it may have in any jurisdiction to pay any amount under the Financing
Documents in a currency or currency unit other than that in which it is expressed
to be payable.

15.2      Other
Indemnities

(a)        The Borrower shall, within
three (3) Business Days of demand, indemnify each Finance Party and each of its
and their affiliates and each of their respective officers, directors,
employees, agents, Advisers and representatives (each, an “Indemnified Party”) from and against any
and all claims, damages, losses, liabilities, costs, legal expenses and
expenses (altogether “Losses”),
joint or several, that may be incurred by or asserted or awarded against any
Indemnified Party, in each case arising out of or in connection with or
relating to:

(i)         the occurrence of any Event of Default;

(ii)        a failure by the Borrower to pay any amount due
under a Financing Document on its due date, including without limitation, any
cost, loss or liability arising as a result of Clause 29 (Sharing
Among the Finance Parties);

(iii)       funding, or making arrangements to fund, its
participation in an Advance requested by the Borrower in a Drawdown Request but
not made by reason of the operation of any one or more of the provisions of
this Agreement (other than by reason of negligence or wilful misconduct or
wilful breach by that Finance Party alone); or

(iv)      an Advance (or part of an Advance) not being
prepaid in accordance with a notice of prepayment given by the Borrower.

15.3      Indemnity to
the Agents

The Borrower shall
promptly indemnify each Agent against any cost, loss or liability incurred by
that Person as a result of:

(a)        investigating any event
which it reasonably believes is a Default; or

(b)        acting or relying on any
notice, request or instruction which it reasonably believes to be genuine,
correct and appropriately authorised.

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16.        MITIGATION
BY THE FACILITY LENDERS

16.1      Mitigation

(a)        Each Facility Lender
shall, in consultation with the Borrower, take all reasonable steps to mitigate
any circumstances which arise and which would result in any amount becoming
payable under or pursuant to, or cancelled pursuant to, any of Clause 7.1 (Illegality), Clause 13 (Tax Gross Up and Tax
Indemnity) or Clause 14 (Increased Costs),
including but not limited to transferring its rights and obligations under this
Agreement to another Affiliate, Facility Office or other bank or financial
institution.

(b)        Clause 16(a) does not in
any way limit the obligations of the Borrower under this Agreement or reduce
any rights of the Facility Lenders.

16.2      Limitation
of liability

(a)        The Borrower shall
indemnify each Finance Party for all costs and expenses reasonably incurred by
that Finance Party as a result of steps taken by it under Clause 16.1 (Mitigation).

(b)        A Finance Party is not
obliged to take any steps under Clause 16.1 (Mitigation)
if, in the opinion of that Finance Party (acting reasonably), to do so might be
prejudicial to it or would be unlawful.

17.        FEES

17.1      Commitment
Fee

(a)        During the Availability
Period, the Borrower shall pay to the Facility Agent (for the account of each
Facility Lender) a fee in Dollars computed at a rate per annum of 50 per cent.
of the then applicable Margin on the amount of that Facility Lender’s Available
Commitment.

(b)        The accrued commitment fee
is payable on the last day of each successive period of three (3) Months which
ends during the Availability Period, on the last day of the Availability Period
and on the cancelled amount of the relevant Facility Lender’s Commitment at the
time the cancellation is effective.

17.2      Arrangement
Fee

The Borrower shall
pay to each Mandated Lead Arranger an arrangement fee in the amount and at the
times agreed in a Fee Letter.

17.3      Facility Agent
Fee

The Borrower shall
pay to the Facility Agent (for its own account) an agency fee in the amount and
at the times agreed in a Fee Letter.

 58
 

 

17.4      Trustee Fees

The Borrower shall
pay to each of the Offshore Security Trustee and the Onshore Security Agent
(each for its own account) a trustee fee in the amount and at the times agreed
in separate Fee Letters.

17.5      Technical
Agent Fee

The Borrower shall
pay to the Technical Agent (for its own accord) a technical agent fee in the
amount and at the times agreed in a Fee Letter.

18.        COSTS AND
EXPENSES

18.1      Transaction
expenses

The Borrower shall, subject to the limitations set out
in the Commitment Letter, on or promptly after the date of Financial Close and
thereafter within thirty (30) days of the presentation of an invoice pay each
Mandated Lead Arranger the amount of all costs and expenses (including but not
limited to Professional Expenses) incurred by it in accordance with the
Commitment Letter in connection with syndication and the negotiation, preparation
and execution of any Financing Document.

18.2      Amendment
costs

If any amendment,
waiver or consent is requested by the Borrower to be made to or under any
Financing Document, the Borrower shall, within three (3) Business Days of
demand, reimburse each Finance Party for the amount of all reasonable costs and
expenses (including but not limited to Professional Expenses) incurred by that
Finance Party in responding to, evaluating, negotiating or complying with, that
request.

18.3      Enforcement
Costs

The Borrower
shall, within ten (10) Business Days of demand, pay to each Finance Party the
amount of all costs and expenses (including but not limited to Professional
Expenses) in connection with:

(a)        the preservation of any
rights under any Financing Documents reasonably incurred by that Finance Party;
and

(b)        the enforcement of any
rights under any Financing Document incurred by that Finance Party.

18.4      Limitation on Professional Expenses

The Agents and the
Facility Lenders shall consult with the Borrower on a regular basis with
respect to ongoing costs of Professional Advisers and other costs and expenses
payable by the Borrower under this Agreement or the Commitment Letter (other
than costs and expenses referred to in Clause 18.3(b)) and shall use reasonable
endeavours to minimise such costs.

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SECTION
8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

19.       Representations

The Borrower makes
the representations and warranties set out in this Clause 19 to each Finance
Party that:

(a)                        as
at the date hereof and as at the date of Financial Close by reference to the
facts and circumstances then existing; and

(b)                       in
the case of the Repeating Representations, on each Drawdown Date, by reference
to the facts and circumstances then existing,

each of the following
representations and warranties is true and accurate, subject to (in the case of
Clauses 19.3 (Legal Validity), 19.4 (No Conflict), 19.5 (Validity and Admissibility
in Evidence), 19.6, (Governing Law and
Enforcement and Immunity), 19.7 (Withholding Tax),
19.8 (Stamp Duty), 19.13 (Consents)
and 19.14 (Security Documents and Assets) the
qualifications of law (but not of fact) set out in the legal opinions referred
to in paragraph II of Schedule 2 (Conditions Precedent).

19.1       Status

It is a sociedad anónima duly incorporated and validly existing
under Peruvian law.

19.2       Power and Authority

(a)                        It
has the power to enter into, perform and deliver, and has taken, fulfilled and
performed (or will effect when required in the case of any Transaction Document
to be entered into by the Borrower after the date hereof) all necessary action
to authorise its entry into, and performance and delivery of, the Transaction
Documents to which it is a party and the transactions contemplated therein.

(b)                       It
has all corporate and other power to own, operate or control its assets and
conduct its business.

19.3       Legal Validity

The obligations expressed
to be assumed by it in each Transaction Document are its legal, valid, binding
obligations enforceable in accordance with their terms.

19.4       No Conflict

The entry into, and performance by it of, and the
transactions contemplated by, the Transaction Documents do not and will not
conflict with:

(a)                        any
Applicable Law;

(b)                       its
constitutional documents; or

(c)                        any
agreement or instrument binding upon it or any of its assets.

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19.5       Validity and Admissibility in Evidence

All Consents
required:

(a)                        to
enable it lawfully to enter into, exercise its rights and comply with its
obligations in the Transaction Documents to which it is a party; and

(b)                       to
make the Transaction Documents to which it is a party admissible in evidence in
its jurisdiction of incorporation,

have been obtained or
effected and are in full force and effect.

19.6       Governing Law and Enforcement and Immunity

(a)                        The
choice of Peruvian law or English law as the governing law of the Transaction
Documents will be recognised and enforced in Peru.

(b)                       Any
judgment obtained in England in relation to a Transaction Document will be
recognised and enforced in Peru.

(c)                        The
submissions to jurisdiction made by the Borrower in the Transaction Documents
are legal, valid and enforceable.

(d)                       It
is acting in a commercial and private capacity and it will not be entitled to
claim for itself or any of its assets immunity (sovereign or otherwise) from
suit, execution, attachment or other legal process in connection with any
proceedings taken in Peru in relation to any Transaction Document.

19.7       Withholding Tax

Under Peruvian Law as in
force on the date hereof, it is not required to make any deduction for or on
account of Tax from any payment it may make under any Financing Document except
(i) any income tax required by Peruvian Law to be withheld by the Borrower on
any payment of interest, fees, commissions or any other amount considered to be
a payment of interest by Peruvian Law; and (ii) any financial transactions tax
(impuesto a las transacciones financieras)
required to be charged to the Borrower on any payment made from an Account.

19.8       Stamp Duty

Under Peruvian Law as in
force on the date hereof, it is not necessary that any Transaction Documents be
filed, recorded or enrolled with any court or other authority in that
jurisdiction or that any stamp, registration, notarial or similar Taxes or fees
be paid on or in relation to the Transaction Documents or the transactions
contemplated therein except (a) any such filing, recording or enrolling or any
such tax or fee payable in relation to the Transaction Documents which will be
made or paid at or prior to Financial Close or which has not become due and
payable prior to Financial Close and (b) any such registrations and filings
required in accordance with Applicable Law in connection with the
enforceability of and/or the creation and/or perfection of

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first-ranking priority
Security under each Security Document which will be made within the time limits
contemplated by this Agreement.

19.9       No Default

No Default has occurred and is continuing
unwaived or might reasonably be expected to result from the making of any
Advance.

19.10     No Misleading Information

(a)                        To
the best of the Borrower’s knowledge, information and belief, any written
factual information contained in the Initial Mine Plan, the Feasibility Study,
the Base Case and the Ore Reserve Report (the “Relevant Reports”):

(i)                          was
true, complete and accurate in all material respects as at the date it was
issued or as at the date (if any) at which it is stated;

(ii)                       as at the
date of this Agreement remains true, complete and accurate in all material
respects;

(iii)                    did not omit
any material information which renders the Relevant Reports misleading or incorrect
in any material respect;

save to the extent advised to the Facility Agent on or
prior to the date of this Agreement;

(b)                       The
financial projections contained in the Relevant Reports have been prepared in
good faith, on the basis of assumptions reasonable at the time they were made.

19.11     Litigation

Other than as disclosed
to the Facility Agent in writing prior to the date on which this representation
is deemed to be repeated, no investigation, litigation, arbitration or
administrative proceedings of or before any court, arbitral body or agency
involving it or the Project are current or pending or, to its knowledge and
belief, threatened, which are reasonably likely to be adversely determined
against it, and if so adversely determined, would have, individually or when
taken into consideration with any other facts or circumstances then in
existence, a Material Adverse Effect.

19.12     Financial Statements and Material Adverse Change

The Original Financial
Statements of the Borrower and the most recent unaudited Financial Statements
of the Borrower most recently delivered to the Facility Agent:

(a)                        have
been prepared in accordance with GAAP, consistently applied; and

(b)                       fairly
represent the financial condition and operational results of the Borrower as at
the date on which they were prepared and for the period to which they relate,

and there has been no
material adverse change in the business, operations or condition (financial or
otherwise) or prospects of the Borrower and no event or series of events

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has occurred, in each
case which has or which might have a Material Adverse Effect, since the date to
which those Financial Statements were prepared.

19.13     Consents

(a)                        All
material Consents that are necessary to carry out all or any part of the
Project in accordance with the Transaction Documents or Good Industry Practice
are listed in Schedule 9 (Consents).

(b)                       All
Consents (other than those referred to in Clause 19.5 (Validity and
Admissibility in Evidence)) either:

(i)                          have, to
the extent necessary at the date this representation is made or repeated, been
obtained and are in full force and effect and have not been revoked or
cancelled; or

(ii)                       have not
been obtained, but the Borrower has no reason to believe that such Consents
shall not be obtained.

19.14     Security Documents and Assets

(a)                        The
Security Interests created or expressed to be created under each of the
Security Documents are (or will be) on the date of execution, or if later,
registration of such Security Documents (where registration is required under
Applicable Law to create or perfect such Security Interest), legal, valid and
enforceable first ranking Security Interests, subject only to those Security
Interests or claims which may be preferred by equitable principles and
applicable bankruptcy, insolvency, liquidation, reorganisation or similar laws
of general application affecting creditors’ rights generally.

(b)                       Other
than Permitted Security Interests and claims arising under law which are
mandatorily preferred by law, no Security Interest exists over any of the
present or future assets, rights or revenues of the Borrower.

(c)                        It
has good and marketable title to its assets, property and revenues over which
Security Interests are expressed to be created under the Security Documents.

19.15               Other Business

Other than (i) any
Exploration Activities carried out by or on behalf of it in relation to the
Other Concessions prior to the transfer of all or any of the Other Concessions
to JV Holdco or any Joint Venture Company; and (ii) its shareholding in JV
Holdco and the exercise of any rights in relation thereto, it is not conducting
any business or activities other than those associated with or necessarily
incidental to the acquisition, development, construction and operation of the
Project or contemplated by or permitted pursuant to the Transaction Documents,
and has not traded or otherwise carried on business unconnected to the Project.

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19.16               No Breach

To the best of the
Borrower’s knowledge, no event or circumstance is outstanding or has occurred,
individually or when taken into consideration with any other facts or
circumstance then in existence, (with the passage of time, the giving of
notice, the making of any determination or any combination of the foregoing)
which constitutes or may constitute a default under any agreement or instrument
which is binding on it or to which its assets are subject and which might have
a Material Adverse Effect.

19.17     Taxes

It has filed or has
caused to be filed all tax returns that are required to be filed by it, and has
paid and discharged all Taxes due and payable from it or against its assets
other than taxes contested in good faith and by appropriate means and for which
adequate reserves have been established and maintained in accordance with GAAP.

19.18     Absence of Obligations

The Borrower has no
Financial Indebtedness or other material obligations (contingent or otherwise)
save for Permitted Indebtedness or as otherwise contemplated by, or permitted
pursuant to, the Transaction Documents.

19.19     No Amendment

The Borrower’s
constitutional documents have not been amended since the date of certification
of those provided pursuant to paragraph 1.1 of Schedule 2 (Conditions Precedent) save for any amendments permitted in
accordance with this Agreement.

19.20     Subsidiaries

(a)                        It
has no direct subsidiaries other than JV Holdco; and

(b)                       JV
Holdco has no subsidiaries other than any Joint Venture Company and does not
hold shares in any other company.

19.21     Transaction Documents

(a)                        It
is in compliance in all material respects with its respective obligations under
the Transaction Documents.

(b)                       To
the best of the Borrower’s knowledge, no event has occurred and no condition or
circumstance exists that could render any Transaction Document void,
unenforceable or capable of revocation or rescission.

19.22     Environmental Requirements

(a)                        It
is in compliance with the Equator Principles and, in all material respects, the
requirements of the Environmental Management Plan.

(b)                       It
is in compliance with the Environmental Permits and all applicable
Environmental Laws, save where such non-compliance or potential non-compliance
would not have a Material Adverse Effect.

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(c)                        To
the best of its knowledge, information and belief, no Environmental Claim, has
been started, pending or is threatened against it which might reasonably be
expected to be decided against it and which, if adversely decided when taken
into consideration with other facts or circumstances then in existence, would
have a Material Adverse Effect.

19.23               Intellectual Property

It has available to it
now, or will at the time necessary for the business of the Project have, all
material intellectual property licences necessary for the Project (if any)
including in relation to all patents, trade marks, service marks, designs,
utility models, copyrights, design rights, licences, inventions, confidential
information, know–how and rights of like nature.

19.24               Ownership of Borrower

The Shareholder owns the
Initial Ownership Interest.

19.25   Site

(a)                        The
Borrower has, or will prior to the date when it is required have, the benefit
of such interests in land as may be necessary to:

(i)                          provide
all necessary access to the Site; and

(ii)                       provide all
other rights in relation to the Site necessary to carry out and complete the
Project, including the construction and (to the extent the Borrower is aware
and to the extent available) operation of the Project,

in each case, free
from all material Security Interests (other than Permitted Security Interests).

(b)                       No
Event of Loss or Condemnation has occurred in connection with the Site or other
assets of the Project which would have a Material Adverse Effect.

19.26               Insurances

All Insurances are or
will be in place when required by the terms of this Agreement and when in place
are in full force and effect and nothing has been done, suffered or omitted to
be done by the Borrower which would render any of such Insurance unenforceable,
suspended, void or voidable, in whole or in a material part.

19.27               Affiliates

It has no agreements with
its Affiliates save as (i) disclosed to the Facility Lenders in writing prior
to the date of this Agreement or (ii) made on arms’ length terms and
conditions.

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20.       Information
Undertakings

The undertakings in this
Clause 20 remain in force from the date of this Agreement for so long as any
amount is outstanding under the Financing Documents or any Commitment is in
force.

20.1       Financial Statements

The Borrower shall
deliver or procure delivery to the Facility Agent in sufficient copies for all
the Facility Lenders:

(a)                        as
soon as the same become available, but in any event within 90 days after the
end of each of its Financial Years, audited annual Financial Statements of the
Borrower for that Financial Year, which shall be prepared on an unconsolidated
basis;

(b)                       as
soon as the same become available, but in any event within 45 days after the
end of each fiscal semi-annual period, the unaudited semi-annual Financial
Statements of the Borrower for that semi-annual period, which shall be prepared
on an unconsolidated basis;

(c)                        during
the period prior to the Financial Completion Date, as soon as the same become
available, but in any event within 120 days after the end of each of its
financial years, audited annual Financial Statements of the Guarantor for that
financial year; and

(d)                       during
the period prior to the Financial Completion Date, as soon as the same becomes
available, but in any event within 60 days after the end of each quarterly
period, the unaudited quarterly Financial Statements of the Guarantor for that
quarterly period.

20.2                    Compliance Certificate

The Borrower shall
deliver or procure delivery to the Facility Agent, together with each set of
Financial Statements delivered pursuant to Clause 20.1 (Financial
Statements), a Compliance Certificate signed by the Borrower’s chief
executive officer setting out (in reasonable detail) computations as to
compliance by the Borrower or the Guarantor with any financial ratios required
to be complied with under the terms of the Financing Documents as at the date
to which those Financial Statements were drawn up, including, without
limitation, the DSCR for the twelve-month period ending on the date as at which
such Financial Statements were prepared (each such period, a “Calculation Period”).

20.3       Requirements as to Financial Statements

(a)                        Each
set of Financial Statements delivered by the Borrower pursuant to
Clause 20.1 (Financial Statements) shall be
certified by an authorised officer of the Borrower or the Guarantor, as the
case may be, as fairly representing the financial condition of such Persons as
at the date to which those Financial Statements were drawn up.

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(b)                       The
Borrower shall procure that each set of Financial Statements delivered pursuant
to Clause 20.1 (Financial Statements) is prepared
on an unconsolidated basis and in
accordance with GAAP, on a basis consistent with the Original Financial
Statements, unless, in relation to any set of Financial Statements, it
notifies the Facility Agent that there has been a change in GAAP, the
accounting practices or reference periods and, if such change affects the
Financial Statements of the Borrower, its auditors deliver to the Facility
Agent:

(i)                          a
description of any change necessary for those Financial Statements to reflect
the GAAP, accounting practices and reference periods upon which the previous
Financial Statements were prepared; and

(ii)                       sufficient
information, in form and substance as may be reasonably required by the
Facility Agent, to enable the Facility Lenders to determine whether the
requisite financial ratios have been complied with and make an accurate
comparison between the financial position indicated in those Financial
Statements and the previous Financial Statements.

20.4                    Construction Reports

The Borrower shall
deliver to the Facility Agent (in an electronic form or in sufficient copies
for each of the Facility Lenders) and the Independent Technical Consultant, no
later than sixty (60) days after the end of each financial quarter (commencing
with the quarter in which this Agreement is signed and ending on the Financial
Completion Date), a quarterly construction progress report in relation to the
Project (a “Construction Report”) setting out
the following:

(a)                        a summary of the progress of
construction during that quarter including:

(i)                          a
summary of actual progress during that quarter against planned progress,
including a description of physical progress and expenditures during such
quarter;

(ii)                       details of
any matters which are likely to materially and adversely affect  the construction of the Project, including
material variations in physical progress and total project costs; and

(iii)                    areas of
significant concern (if any) and the action being taken to resolve  any significant difficulties;

(b)                       details of any event of force majeure under any Project Document which has occurred and
affected the performance by the parties of their obligations thereunder,
including details of any mitigation of the effects thereof undertaken by the
Borrower;

(c)                        an analysis showing actual
expenditure by the Borrower in that quarter and accumulated through the end of
such quarter against the most recent Project Budget;

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(d)                       all cost items under the
Construction Contracts in respect of which payment is due after the Financial
Completion Date; and

(e)                        a current forecast of the
likely date of the Financial Completion Date.

20.5       Operating Reports

(a)                        The Borrower shall deliver to
the Facility Agent (in an electronic form or in sufficient copies for each of
the Facility Lenders) no later than fifteen (15) days after the end of each
monthly period from the date of commencement of operations to the Financial
Completion Date, a monthly operating summary report (a “Monthly Operating Report”) prepared by the
Borrower and signed by an authorised officer of the Borrower in respect of the
Project during the last monthly period including a discussion of any adverse
developments with respect thereto and including the Operating Report
Information.

(b)                       The Borrower shall deliver to
the Facility Agent (in an electronic form or in sufficient copies for each of
the Facility Lenders) no later than sixty (60) days after the end of each
semi-annual period following the Financial Completion Date, an operating
summary report (a “Semi-Annual Operating
Report”) prepared by the Borrower and signed by an authorised
officer of the Borrower in respect of the Project during the last semi-annual
period including a discussion of any adverse developments with respect thereto
and including the Operating Report Information.

(c)                        The Borrower shall provide
access and assistance to the Independent Technical Consultant in connection
with the review set forth in Clause 20.5(d).

(d)                       On an annual basis and
additionally upon the request of the Facility Agent if the Facility Agent
reasonably believes that it has good cause to require such review, the Independent
Technical Consultant will review the summaries prepared by the Borrower
pursuant to Clause 20.5(b) and prepare a report (an “Independent Operating Report”) for the Facility Lenders on
such summaries and setting out the following:

(i)                          a
summary of operations advised in the two (2) most recent Semi-Annual Operating
Reports and in aggregate since the first such Semi-Annual Operating Report:

(A)             a
summary of actual performance during that period against planned performance;

(B)               a
report on the implementation of the Environmental Management Plan;

(C)               details
of any matters which are likely to materially and adversely affect the Project;
and

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(D)              areas
of significant concern (if any) and the action being taken to resolve any
significant difficulties;

(ii)                        details of
any event of force majeure under any Project
Document which has occurred, including details of any mitigation undertaken by
the Borrower; and

(iii)                     a summary of
the actual operating expenditure incurred to date, the source of funding such costs
and a comparison against the existing Operating Budget.

20.6                    Mine Plan

The Borrower shall
deliver to the Facility Agent (in an electronic form or in sufficient copies
for each of the Facility Lenders), promptly after it is available, a copy of
any revision to the Initial Mine Plan.

20.7                    Computer Model

The Borrower shall
deliver to the Facility Agent an updated version of the Computer Model (i) not
less than fifteen (15) days prior to the commencement of any Financial Year, to
reflect the Mine Plan then in effect and the Project Budget and Operating
Budget for such Financial Year; and (ii) at any time upon the request of any
Facility Lender in connection with any revision to the Mine Plan.  Any updated version of the Computer Model
delivered in connection with a revision to the Mine Plan shall reflect the
Borrower’s current economic and operational assumptions for the Project.

20.8                    Report Undertakings

The Borrower undertakes
in relation to each Construction Report delivered pursuant to Clause 20.4 (Construction Reports), each Operating Report delivered
pursuant to Clause 20.5 (Operating
Reports) each revision to the Mine Plan delivered pursuant to Clause
20.6 (Mine Plan) and
each updated version of the Computer Model delivered pursuant to Clause 20.7 (Computer Model) that, as at the date of delivery thereof:

(a)                        all
the factual information set out therein will (or, to the extent that
information has been provided by others, to the best of its knowledge) be true,
complete and accurate in all material respects and will be compiled in good
faith; and

(b)                       all
projections, forecasts, estimates and opinions made by it therein will be
compiled on a reasonable basis.

20.9       Project Budget

(a)                        The
Borrower shall deliver the Project Budget together with confirmation from the
Independent Technical Consultant as to the reasonableness of the construction
schedule and cost items (including contingency) set out therein, to the
Facility Agent prior to Financial Close and thereafter, as soon as reasonably
practicable and in any event within sixty (60) days of the end of each
Financial Year falling

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after
Financial Close until the Financial Completion Date, an updated (and amended if
necessary) Project Budget.

(b)                       The
Project Budget and each updated Project Budget shall set out:

(i)                          projected
construction schedule milestones agreed to by the Contractor (broken down into
line items);

(ii)                       projected
costs anticipated to be incurred to achieve the Financial Completion Date; and

(iii)                     the
anticipated (A) drawdown requirements of the Borrower in respect of the
Facility and (B) issuance of Bonds by the Borrower.

20.10     Operating Budgets

(a)                        The
Borrower shall, not less than thirty (30) days prior to the Financial
Completion Date, deliver to the Facility Agent an initial operating budget in
respect of the Project for the period from the Financial Completion Date to the
fifth anniversary of the Financial Completion Date (the “Initial Operating Budget”).

(b)                       Within
sixty (60) days after the start of each subsequent Financial Year of the Borrower
commencing after the Financial Completion Date, the Borrower shall deliver to
the Facility Agent an annual operating budget in respect of the Project for
that Financial Year (the “Annual Operating
Budget”).

(c)                        Each
Operating Budget shall comprise an operating plan and an operating budget in
respect of the Project for the relevant period in a form consistent with that
of the Initial Operating Budget setting out, on an annual basis, the
projections of the Borrower (prepared in good faith) of the Operating Costs to
be incurred during the relevant Financial Year together with all technical and
operational assumptions relating thereto.

(d)                       If
an Annual Operating Budget or the Mine Plan as revised deviates from the
Initial Operating Budget or the Initial Mine Plan (as applicable) in a manner
that would have a Material Adverse Effect, the Facility Agent shall have the
right, within sixty (60) days following receipt by it of such Annual Operating
Budget or revised Mine Plan, as the case may be, to (i) request for good faith
negotiations with the Borrower with a view to agreeing such Annual Operating
Budget or revised Mine Plan and/or (ii) request for the ITC to determine the
reasonableness of the content of such Annual Operating Budget or revised Mine
Plan, as the case may be.

(e)                        If
the Facility Agent and the Borrower are unable to agree such Annual Operating
Budget or revised Mine Plan, as the case may be, as described in paragraph
(d)(i) above, within ten (10) Business Days from the date of commencement of
such negotiations, then the dispute shall be determined by an independent
expert of

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appropriate
qualifications and experience appointed by the Facility Agent and the Borrower
to act as an expert and any determination by such expert in respect of the
disputed Annual Operating Budget or revised Mine Plan, as the case may be,
shall, in the absence of manifest error, be conclusive and binding on the
parties.

20.11     Notification and Information: Miscellaneous

The Borrower shall
promptly upon becoming aware of the same inform and supply details to the
Facility Agent (in an electronic form or in sufficient copies for all the
Facility Lenders, if the Facility Agent so requests) of the following:

(a)                        any
litigation, arbitration or administrative proceedings against the Borrower
which are current, threatened or pending, and which, if adversely determined,
is likely to have a Material Adverse Effect;

(b)                       any
material notices given or received by the Borrower pursuant to the Project
Documents;

(c)                        any
Insurance claim made by the Borrower where the aggregate sum involved is in
excess of US$1,000,000;

(d)                       any
material amendment, exercise of discretion or waiver, termination or material
suspension or material breach in respect of the Project Documents, to the
extent that such has or is likely to have a Material Adverse Effect;

(e)                        any
prospective and actual change in the Shareholder ownership of the Borrower and
change to the Borrower’s constitutional documents;

(f)                          all
notices of default under, non-availability, termination or non renewal of, or
imposition of unusual or onerous conditions upon any Consent;

(g)                       any
event which could reasonably be expected to result in the revocation,
withdrawal, cancellation, termination, suspension, forfeiture or variation of
any Consent, except where any such Consent is no longer required for the
Project; and

(h)                       such
further information regarding the financial condition, business and operations
of the Borrower, the Project or (if the Borrower holds any direct or indirect
interest in the Joint Venture) the Joint Venture or any Joint Venture Company
as any Finance Party (through the Facility Agent) may reasonably request.

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20.12     Joint
Venture Information

The Borrower
shall, upon the reasonable request of the Facility Agent, supply the Facility
Agent with information in relation to Clauses 24.16 (Liability in
relation to Joint Venture) to 24.26 (Joint
Venture Company or JV Holdco Insolvency Event) (inclusive), in a
form reasonably satisfactory to the Facility Agent.

20.13        Notification of Default

(a)                        The
Borrower shall notify the Facility Agent of any Default (and the steps, if any,
being taken to remedy it) promptly upon becoming aware of its occurrence.

(b)                       Promptly
upon a request by the Facility Agent, the Borrower shall supply to the Facility
Agent a certificate signed by two (2) of its directors or senior officers on
its behalf certifying that no Default is continuing (or if a Default is
continuing, specifying the Default and the steps, if any, being taken to remedy
it).

20.14        Change of
Financial Year

The Borrower shall notify
the Facility Agent of any change to its Financial Year.

20.15        Use of
Websites

(a)                        The
Borrower may satisfy its obligation under this Agreement to deliver any
information in relation to those Facility Lenders (together the “Website Facility Lenders”) who accept this
method of communication by posting this information onto an electronic website
designated by the Borrower and the Facility Agent (the “Designated Website”) if:

(i)                          the
Facility Agent expressly agrees (after consultation with each of the Facility
Lenders) that it will accept communication of the information by this method;

(ii)                       both
the Borrower and the Facility Agent are aware of the address of and any
relevant password specifications for the Designated Website; and

(iii)                    the
information is in a format previously agreed between the Borrower and the
Facility Agent.

If any Facility Lender
(in each case, a “Paper Form Facility Lender”)
does not agree to the delivery of information electronically then the Facility
Agent shall notify the Borrower accordingly and the Borrower shall supply the
information to the Facility Agent (in sufficient copies for each Paper Form
Facility Lender) in paper form.  In any
event the Borrower shall supply the Facility Agent with at least one copy in
paper form of any information required to be provided by it.

(b)                       The
Facility Agent shall supply each Website Facility Lender with the address of
and any relevant password specifications for the Designated Website following
designation of that website by the Borrower and the Facility Agent.

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(c)                        The
Borrower shall promptly upon becoming aware of its occurrence notify the Facility
Agent if:

(i)                          the
Designated Website cannot be accessed due to technical failure;

(ii)                       the
password specifications for the Designated Website change;

(iii)                    any
new information which is required to be provided under this Agreement is posted
onto the Designated Website;

(iv)                   any
existing information which has been provided under this Agreement and posted
onto the Designated Website is amended; or

(v)                      the
Borrower becomes aware that the Designated Website or any information posted
onto the Designated Website is or has been infected by any electronic virus or
similar software.

If the Borrower notifies
the Facility Agent under paragraph (c)(i) or paragraph (c)(v) above, all
information to be provided by the Borrower under this Agreement after the date
of that notice shall be supplied in paper form unless and until the Facility
Agent and each Website Facility Lender is satisfied that the circumstances
giving rise to the notification are no longer continuing.

(d)                       Any
Website Facility Lender may request, through the Facility Agent, one paper copy
of any information required to be provided under this Agreement which is posted
onto the Designated Website.  The
Borrower shall comply with any such request within ten (10) Business Days.

20.16        “Know your
customer” checks

(a)                        If:

(i)                          the
introduction of or any change in (or in the interpretation, administration or
application of) any law or regulation made after the date of this Agreement;

(ii)                       any
change in its status after the date of this Agreement;

(iii)                    any
change in its shareholding; and

(iv)                   a
proposed assignment or transfer by a Finance Party of any of its rights and
obligations under this Agreement to a party that is not a Finance Party prior
to such assignment or transfer,

obliges a Finance Party
(or, in the case of paragraph (iii) above, any prospective new Finance Party)
to comply with “know your customer” or similar
identification procedures in circumstances where the necessary information is
not already available to it, the Borrower shall promptly upon the request of
the Facility Agent supply, or procure the supply of, such documentation and
other evidence as is 

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reasonably requested by
the Facility Agent (for itself or on behalf of any Finance Party or, in the
case of the event described in paragraph (iii) above, on behalf of any
prospective new Finance Party) in order for the relevant Finance Party or, in
the case of the event described in paragraph (iii) above, any prospective new
Finance Party to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all
applicable laws and regulations pursuant to the transactions contemplated in
the Financing Documents.

(b)                       Each
Facility Lender shall promptly upon the request of the Facility Agent supply,
or procure the supply of, such documentation and other evidence as is
reasonably requested by the Facility Agent (for itself) in order for the
Facility Agent to carry out and be satisfied it has complied with all necessary
“know your customer” or other similar checks
under all applicable laws and regulations pursuant to the transactions
contemplated in the Financing Documents.

20.17        Financial
Completion Date

The Borrower shall notify the Facility Agent
of the occurrence of the Financial Completion Date.

20.18        Environmental
Issues

The Borrower shall
forthwith upon the receipt of any notice alleging that it is not in compliance
with any Environmental Law in any material respect or upon becoming aware that
there exists any Environmental Claim pending, threatened or current against it
which is likely to give rise to any material liability on the part of the
Borrower:

(a)                        provide
to the Facility Agent details of the nature of such event and the action which
the Borrower intends to take in response thereto together with, to the extent
that the same can be calculated, an estimate of the cost of such action; and

(b)                       upon
the written request of the Facility Agent, submit to the Facility Agent at
reasonable intervals a report providing an update of the situation resulting
from such event.

21.        POSITIVE COVENANTS

The Borrower shall comply
with the following covenants until the Discharge Date unless the Facility Agent
acting on the instructions of the Majority Facility Lenders has otherwise
consented in writing.

21.1           Construction,
Operation and Maintenance

The Borrower shall
diligently construct or cause to be constructed the Project in accordance with
the Construction Contracts and repair, operate and maintain the assets of the
Project and conduct the business of the Project (including but not limited to
the sale and marketing activities) and obligations, in each case, in accordance
with the Project Documents, Good Industry Practice, the Guidelines, the
Environmental 

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Management Plan
requirements (in all material respects), the requirements of the Insurances and
the Equator Principles.

21.2           Obligations
Under Project Documents

The Borrower shall:

(a)                        comply
with, and perform, all of its obligations under each of the Project Documents
to the extent that failure to do so would have a Material Adverse Effect; and

(b)                       maintain
all land use and access rights and Material Concessions necessary to
successfully carry out, complete and operate the Project.

21.3           Application
of Proceeds

The Borrower shall apply
the proceeds of the Advances only for the purposes permitted under the
Financing Documents.

21.4           Accounts and Application of Revenues

(a)                        The
Borrower shall open and maintain the Accounts in accordance with the terms of
the Financing Documents.

(b)                       The
Borrower shall procure that revenues of the Project are paid directly, or
promptly upon receipt by the Borrower, to the relevant Account and are applied
in accordance with the terms of the Financing Documents.

21.5           Compliance

(a)                        The
Borrower shall comply with all Applicable Laws and all Consents to the extent
that failure to do so would have a Material Adverse Effect.

(b)                       The
Borrower shall from time to time upon reasonable request of the Facility Agent,
supply the Facility Agent with such information in a form satisfactory to the
Facility Agent as it may require in relation to compliance by the Borrower with
Clause 21.1 (Construction, Operation and Maintenance)
and Clause 21.5(a).

21.6           Consents

The Borrower shall obtain
and do all that is necessary to maintain in full force and effect, all Consents
(or procure that the Consents are obtained and so maintained), and make all
filings, notifications and notarisations, in any case, which at any time or
from time to time are required:

(a)                        for
the construction, operation and maintenance of the Project;

(b)                       to
enable it lawfully to enter into, exercise its rights under and perform and
comply with the obligations expressed to be assumed by it under each of the
Transaction Documents to which it is expressed to be a party; and

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(c)                        to
ensure the legality, validity, enforceability or admissibility in evidence in
each relevant jurisdiction of each of the Transaction Documents to which it is
expressed to be a party,

except where the failure
to do so would not have a Material Adverse Effect, and, from time to time upon
any reasonable request of the Facility Agent, supply the Facility Agent with
evidence (in form and substance reasonably satisfactory to the Facility Agent)
that all such Consents have been so obtained and maintained and all such
filings, notifications and notarisations have been so made.

21.7           Ranking
of Obligations

The Borrower shall ensure
that at all times the claims of the Finance Parties against it under each of
the Financing Documents rank at least pari
passu with the claims of all its unsecured and unsubordinated
creditors, save those whose claims are preferred solely by any fiscal,
bankruptcy, insolvency, liquidation or other similar laws of general
application.

21.8           Property

The Borrower shall
maintain good title to, or valid leasehold or other equivalent interest in its
property and assets (including but not limited to the Site, but excluding any
sale or other disposal of assets expressly permitted by Clause 22.4 (Disposals)) where failure to do so would have a Material
Adverse Effect.

21.9           Taxes

The Borrower shall file,
or cause to be filed, all tax returns required to be filed by it and promptly
pay all Taxes to which it is assessed liable as they fall due except to the
extent it contests (in good faith and by appropriate means) its obligation to
pay any such Taxes where the Borrower may lawfully withhold payment of such
Taxes pending resolution of such dispute provided  that it has made adequate provision for the payment of those
Taxes in accordance with GAAP.

21.10        Corporate Existence

The Borrower shall do, or
cause to be done, all things necessary to preserve and keep in full force and
effect:

(a)                        its
corporate existence, power and authority to conduct its business in the manner
contemplated in the Transaction Documents (in particular, to develop and
operate the Project) and all material rights arising as a consequence thereof;
and

(b)                       its
existing corporate or business purposes without any material change.

21.11        Subsidiaries

The Borrower shall obtain
the consent of the Facility Agent prior to creating any subsidiaries other than
JV Holdco or any Joint Venture Company.

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21.12        Accounting
Systems

(a)                        The
Borrower shall install and maintain adequate accounting, management
information, cost control and accounting systems for the Project and maintain
books of accounts and other records to give a true and fair view of the
financial condition of the Borrower and the result of its operations in
accordance with GAAP.

(b)                       The
Borrower shall employ one of the following internationally recognised firms of
independent auditors licensed to practice in Peru:

(i)                          Deloitte
& Touche;

(ii)                       KPMG;

(iii)                    PriceWaterhouseCoopers;

(iv)                   Ernst
& Young; or

(v)                      such
other firm as the Majority Facility Lenders may agree,

to audit annually its
Financial Statements and shall authorise such auditors to communicate directly
with the Facility Agent in relation to the Borrower’s accounts and operations.

21.13        Insurances

The Borrower shall:

(a)                        effect
and maintain or cause to be effected and maintained in full force and effect contracts
and policies of Insurance and reinsurance as required under Schedule 8 (Insurances);

(b)                       punctually
pay when due any premium and any other amount necessary for effecting and
maintaining in force each Insurance;

(c)                        effect
all other insurances which may be required from time to time by Applicable Law;
and

(d)                       use
its reasonable endeavours to procure that the portions of all policies of
insurance required to be effected in accordance with the terms of the Contract
Mining Agreement Supplemental Agreement shall contain terms and conditions
reasonably acceptable to the Facility Agent.

21.14        Access for
Inspection

The Borrower shall permit
each of the Mandated Lead Arrangers, the Facility Agent, the Independent
Technical Consultant and the Insurance Adviser and their authorised
representatives reasonable access, upon request and reasonable notice, to
inspect the construction, commissioning and operation of the Project and
related technical data, data books and records and co-operate with such Persons
to enable them to prepare their 

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reports, provided that, so long as there is no Default, the Borrower
shall be under no obligation to grant such access more often than once each
quarter prior to the Financial Completion Date and once in any calendar year
thereafter.

21.15        Revenues
from Offshore Entities

The Borrower shall ensure at all times that
more than 80% of its revenues in any Financial Year (excluding any revenues
associated with the Joint Venture) is generated from offshore entities.

21.16        Concentrate Sale Agreements

The Borrower shall, at
all times from and after the Financial Completion Date, ensure that it
maintains Concentrate Sale Agreements for greater than 80% of the Concentrate
scheduled to be produced in the next twelve (12) Months on a rolling basis.

21.17        JV Account

(a)                        The
Borrower may procure that:

(i)                          the
proceeds of equity and shareholder loans made available to the Borrower (which
are not Shareholder Contributions); and

(ii)                       any
dividend, return of capital or other payment or distribution in respect of any
share in JV Holdco (including the repurchase, redemption or retirement thereof)
or any payment by JV Holdco in respect of any shareholder loan made by the
Borrower to JV Holdco or any other payment of whatever nature made by JV Holdco
to the Borrower,

are paid into any JV
Account.

(b)                       Subject
to paragraph (a)(i), the Borrower may apply amounts standing to the credit of
any JV Account to make payments (including, but not limited to, Restricted
Payments) to any person or to subscribe for shares in or make shareholder loans
to JV Holdco.

22.        NEGATIVE COVENANTS

22.1           Negative
Pledge

The Borrower shall not
create, grant, extend or permit to subsist any encumbrance over all or any of
its present or future revenues or assets other than a Permitted Security
Interest.

22.2           No
Liquidation or Merger

The Borrower shall not,
without the Facility Agent’s consent, voluntarily enter into liquidation or
dissolution, any scheme of arrangement or analogous arrangement in relation to
any of its Creditors or any proceeding under the Ley General
del Sistema Concursal or any law which may replace it from time to
time, or enter into any de-merger, merger, reorganisation, amalgamation or
consolidation with any other person, other than the Merger.

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22.3           Loans and
Guarantees

The Borrower shall not
make any loans, grant any credit, enter into any investment or give any
guarantee or indemnity (except as required by the Financing Documents) to or
for the benefit of any person or otherwise voluntarily assume any liability,
whether actual or contingent, in respect of any obligation of any person other
than those:

(a)                        contemplated
by the Project Documents;

(b)                       in
an aggregate amount from time to time of not more than US$1,000,000 (or its
equivalent from time to time in other currencies);

(c)                        by
way of trade credit in the ordinary course of the Borrower’s business; or

(d)                       comprising
subscriptions for shares in and/or shareholder loans to JV Holdco funded solely
from amounts standing to the credit of the Borrower in any JV Account.

22.4           Disposals

The Borrower shall not
sell, lease or hire out, transfer, discount, factor, assign or otherwise
dispose of, lend or cease to exercise control over, by one or more transactions
or series of transactions (whether related or not), the whole or any
substantial part of its revenues or assets other than:

(a)                        sales
or other disposals in the ordinary course of business;

(b)                       sales
or other disposals of any worn out or obsolete assets which have been replaced
by assets of the same or greater value;

(c)                        sales
or other disposals of any or all of the Other Concessions to (i) JV Holdco or
any Joint Venture Company or (ii) to any person (other than JV Holdco and any
Joint Venture Company) on arms’ length terms;

(d)                       sales
or other disposals of Concentrates or Mineralised Oxide;

(e)                        any
sale or other disposal of any JV Asset; or

(f)                          any
such sale or other disposals not in excess of US$1,000,000 in aggregate in any
calendar year or otherwise which would not be expected to have a Material
Adverse Effect.

22.5           No Joint
Venture or Interests of Other Persons

The Borrower shall not
enter into any joint venture, partnership, profit sharing, royalty or analogous
arrangement in relation to the Project or otherwise whereby any income or
profits are, or might be, shared with any other person and shall not form or
acquire any interest (whether by shareholding, partnership or otherwise) in any
other person (other than JV Holdco or any Joint Venture Company) except as may
be required by Applicable Law provided that, for greater certainty, nothing in
this clause shall be taken to (i) restrict the Borrower from carrying out or
entering into any agreement in 

 79
 

 

 

connection with any
Exploration Activities in relation to any or all of the Other Concessions prior
to the transfer of any or all of the Other Concessions to JV Holdco; (ii)
restrict the Borrower from acquiring or holding the JV Assets or from
exercising its rights as a shareholder of JV Holdco; or (iii) restrict JV
Holdco from entering into the Joint Venture Agreement or from acquiring or
holding any interest in any Joint Venture Company.

22.6           Share
Capital

(a)                        The
Borrower shall not without the prior written consent of the Facility Agent:

(i)                          repurchase,
cancel, redeem or otherwise reduce any of its share capital (other than by
application of any Restricted Payments permitted hereunder);

(ii)                       issue
any new shares if such issuance would result in any dilution of the interest of
the Shareholder in the Borrower;

(iii)                    alter
the nature of, nor any rights attaching to, any of its shares; or

(iv)                   without
prejudice to the Shareholder’s right to transfer Shares in compliance with the
Sponsor Support Agreement, take any action which would result in any reduction
in the interest of the Shareholder in the Borrower below the Initial Ownership
Interest,

other than, in each case,
as may be necessary to effect the Merger.

(b)                       The
Borrower shall not make, agree to, or permit any amendment to, variation or
waiver of any of the terms of the Sponsor Support Agreement.

22.7           Amendment of Constitutional Documents

The Borrower shall not
agree to or permit any amendment to, variation or waiver in a material manner
of any of the terms or conditions, or scope, of its constitutional documents
(or propose any resolution for any such amendment, variation or waiver) save as
may be required by Applicable Law or to effect the Merger.

22.8           Contracts

The Borrower shall not
enter into contracts or agreements that impose material obligations on the
Borrower other than those:

(a)                        contemplated
by or permitted under the Transaction Documents (including but not limited to
documentation relating to the Bonds and contracts or agreements required to
effect development expenditures permitted by the Transaction Documents);

(b)                       entered
into in the ordinary course of business of the Borrower, on arm’s length
commercial terms and which would not reasonably be expected to have a Material
Adverse Effect;

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(c)                        entered
into for the disposal of the output of the Project unless such contracts or
agreements (i) would reasonably be expected to have a Material Adverse Effect
and/or (ii) have not been entered into by the Borrower in order to comply with
its obligations under the Financing Documents and/or (iii) would be contrary to
the then current market practice applicable to sales or purchase contracts of
similar duration;

(d)                       entered
into (i) to dispose of the JV Assets or any or all of the Other Concessions
and/or (ii) in connection with any Exploration Activities in relation to any or
all of the Other Concessions prior to the transfer of any or all of the Other
Concessions to JV Holdco or any Joint Venture Company, in each case, unless the
Borrower would incur any material liability under such contracts or agreements
or the entrance into such contracts or agreements would reasonably be expected
to have a Material Adverse Effect; or

(e)                        approved
by the Facility Agent.

22.9           Change in Counterparties

The Borrower shall not
agree to or permit any assignment, novation or transfer of any of the rights
and/or obligations of any Person under any Project Document to which it is a
party other than pursuant to the Security Documents.

22.10        Further Financial Indebtedness

The Borrower shall not
create, permit to subsist or have outstanding any Financial Indebtedness except
Permitted Indebtedness.

22.11        Change of Business

The Borrower shall not
carry on any business or activity other than as contemplated by the Project or
any Financing Document provided that, for greater certainty, nothing in this
clause shall be taken to (i) restrict the Borrower from carrying out or
entering into any agreement in connection with any Exploration Activities in
relation to any or all of the Other Concessions prior to the transfer of any or
all of the Other Concessions to JV Holdco or any Joint Venture Company; (ii) restrict
the Borrower from acquiring or holding the JV Assets or from exercising its
rights as a shareholder of JV Holdco; or (iii) restrict JV Holdco from entering
into the Joint Venture Agreement or from acquiring or holding any interest in
any Joint Venture Company

22.12        Shareholder or Affiliate Transaction

Other than in respect of
the funding of JV Holdco from any JV Account, the Borrower shall not enter into
any transaction with the Shareholder or any of its Affiliates on terms less
favourable to the Borrower than if such transaction had been entered on an arms’
length basis with an unrelated party.

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22.13        Immunity

The Borrower shall not in
any proceedings in Peru or in any other jurisdiction in relation to any
Financing Document, claim or seek in any way to claim, for itself or any of its
assets, immunity from execution, attachment or other similar legal process.

22.14        Project Documents

The Borrower shall not,
except with the prior written consent of the Facility Agent, waive a right
under or amend, terminate or assign or exercise any rights under any Project
Documents in a manner which would reasonably be expected to have a Material
Adverse Effect.

22.15        Construction Contracts

The Borrower shall not,
except (a) where the Borrower is contractually obliged to do so or (b) with the
prior written consent of the Facility Agent, give instructions for or agree any
variation or amendment to any part of the Construction Contracts unless such
implementation would not or would not be likely to (i) adversely affect the
overall facility production capacity, the standards of safety of operation or
reliability of the Project or (ii) have a Material Adverse Effect.

22.16        Transfers to Distributions Account

The Borrower shall not make any transfer of funds into
the Distributions Account unless the following conditions are met:

(a)                        no
Default has occurred and is continuing;

(b)                       the
Financial Completion Date has occurred;

(c)                        after
giving effect to such transfer, the credit balance on the Debt Service Reserve
Account shall not be less than the DSRA Required Balance; and

(d)                       the
DSCR calculated as of the end of the most recent Calculation Period as set out
in each Compliance Certificate in accordance with Clause 20.2 (Compliance Certificate) exceeds 1.25:1,

provided that,
if the DSCR calculated as of the end of the most recent Calculation Period is
less than 1.35:1, the Borrower shall prepay the Facility in the amount set out
in Clause 8.5 (Mandatory Prepayment on Restricted Payments).

22.17        Deposits

The Borrower shall not
make or agree to make any deposits with, any person or maintain any bank
account other than:

(a)                        the
Accounts and any JV Account;

(b)                       in
connection with any working capital facility provided by way of overdraft; or

(c)                        otherwise
pursuant to the Financing Documents.

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22.18        Investments

The Borrower shall not,
without the prior written consent of the Facility Agent, acquire or subscribe
for any share or other capital of any corporate body or other investments apart
from (i) Authorised Investments; (ii) those made in connection with the Merger;
or (iii) subscriptions for shares in the capital of, or shareholder loans to,
JV Holdco made with funds standing to the credit of the Borrower from time to
time in any JV Account.

22.19        Speculative Hedging

The Borrower shall not
enter into any Hedging Agreements that are (a) of a speculative nature or (b)
not with reputable counterparties.

22.20        Environmental Management Plan

The Borrower shall notify
the Facility Agent of any amendment to the Environmental Management Plan.

23.        SECURITY
INTERESTS

23.1           Further Assurance

(a)                        The
Borrower shall, at all times on or before the Discharge Date, at its own cost,
do any act, make any filing or registration or sign, seal, execute and/or
deliver such mortgages, charges, transfers, assignments, securities, deeds,
instruments or other documents as in each case the Facility Agent shall
stipulate (acting reasonably) in such form as the Facility Agent may require
to:

(i)                          perfect
and protect the security intended to be conferred on the Offshore Security
Trustee or the Onshore Security Agent, as the case may be, by the Security
Documents (for avoidance of doubt, excluding any Permitted Security Interest of
the Borrower) with the first priority ranking thereof;

(ii)                       (save
as otherwise provided herein or therein) maintain the Security Interests
thereby intended to be created or the first priority ranking thereof;

(iii)                    create,
perfect or protect any Security Interest which it may, or may be required to,
create in connection with any of the Financing Documents;

(iv)                   ensure
that each of the Security Interests constituted by or pursuant to the Security
Documents secures all of the Liabilities; and/or

(v)                      if
a successor Account Bank is nominated pursuant to the Accounts Management
Agreement, create and perfect a first fixed security interest in favour of the
Offshore Security Trustee or the Onshore Security Agent, as the case may be,
over all of the Borrower’s right, title and interest in, and rights and claims
in relation to, any monies at any time standing to the credit of any account in
the name of the Borrower opened on the
books of that successor Account Bank (other than any JV Account if held at that
Account Bank).

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23.2           Creation of New Security

The Borrower shall update
its fixed asset register promptly on the acquisition of any material asset or
group of assets and otherwise shall update its fixed asset register no less
frequently than once a year.  If at any
time any assets or group of assets (apart from the assets subject to any
Permitted Security Interest of the Borrower or any JV Assets) registered in the
Borrower’s fixed asset register is not subject to first priority ranking
security interest in favour of the Offshore Security Trustee or the Onshore
Security Agent, as the case may be, the Borrower shall at its own cost create
such first priority ranking security interest over such assets in a manner
satisfactory to the Facility Agent, provided that
the Borrower shall not be required to create Security Interests pursuant to
this Clause more often than once a year unless the value of any such single
asset exceeds US$1,000,000 in which case the Borrower shall create a first
ranking priority security interest over such asset within ninety (90) days
following its acquisition.

24.        EVENTS OF
DEFAULT

24.1           Failure to Pay Scheduled Amounts

The Borrower fails to
fulfil any scheduled payment obligation due from it under any of the Financing
Documents unless:

(a)        such
failure is due solely to technical or administrative delays in the transmission
of funds outside the control of the Borrower; and

(b)        the
relevant amount is paid in full within five (5) Business Days of its due date.

24.2           Failure to Pay Unscheduled Amounts

The Borrower fails to
fulfil any unscheduled payment obligation due from it under any of the
Financing Documents unless:

(a)        such
failure is due solely to technical or administrative delays in the transmission
of funds outside the control of the Borrower; and

(b)        the
relevant amount is paid in full within thirty (30) days of its due date.

24.3           Misrepresentation

Any representation or
warranty made or deemed to be repeated by each Obligor in any Financing
Documents or any certificate issued pursuant thereto or in connection therewith
is incorrect in a material respect when made or repeated unless the
circumstances or events giving rise to such incorrectness are capable of remedy
and are remedied within sixty (60) days of the Borrower receiving written
notice from the Facility Agent to do so.

24.4           Breach of Financing Documents

The Borrower fails to
perform or comply in a material respect with its obligations under the
Financing Documents to which it is a party (apart from as referred to in
Clauses 24.1

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and 24.2) unless such
failure is capable of remedy and is remedied within sixty (60) days of the
Borrower receiving written notice from the Facility Agent of such failure.

24.5           Breach of Sponsor Support Agreement

The Guarantor or the
Shareholder fails to perform or comply with any obligation assumed by it in the
Sponsor Support Agreement within ten (10) days in case of a payment obligation,
or within sixty (60) days in the case of a non-payment obligation, of the
Guarantor or the Shareholder, as the case may be, receiving written notice from
the Facility Agent of such failure.

24.6           Termination of Financing Documents

At any time any of the
Financing Documents (other than any Direct Agreement that has been replaced
within a period of sixty (60) days from its termination or becoming invalid or
illegal or otherwise ceasing to be in full force and effect, on substantially
similar terms) or any of their material provisions:

(a)        is
terminated (other than termination in accordance with the terms thereof
following discharge of all obligations or liabilities thereunder which, for
avoidance of doubt, does not include termination as a result of any default
under any such agreements); or

(b)        becomes
invalid or illegal or otherwise cease to be in full force and effect.

24.7           Termination of Project Documents

At any time any of the
Project Documents or any of their material provisions:

(a)        is
terminated (other than termination in accordance with the terms therein
following discharge of all obligations or liabilities thereunder, which, for
the avoidance of doubt, does not include termination as a result of any default
under any such agreements); and

(b)        become
invalid or illegal or otherwise cease to be in full force and effect,

(each, a “Termination Event”) provided that
an Event of Default shall only occur pursuant to this Clause 24.7 if the
Termination Event does, or would reasonably be expected to, result in a
Material Adverse Effect (taking into account when making such determination of
a Material Adverse Effect (i) the damages that it is reasonable for the
Borrower to determine will be received within a reasonable period of time
following such Termination Event including, without limitation, the financial
and credit status of the counterparty and whether such damages are in dispute
under the relevant Project Document and (ii) the terms of any replacement
Project Document, provided that such replacement
Project Document is entered into within ninety (90) days of the Termination
Event on terms and conditions acceptable to the Facility Agent).

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24.8           Cross Default

(a)        Any
Financial Indebtedness of the Borrower (other than financial indebtedness under
the Financing Documents or financial indebtedness which has been subordinated
to the obligations of the Borrower under the Financing Documents), in an amount
in excess of US$5,000,000 (or its equivalent in other currencies) in aggregate
is not paid when due (after giving effect to any applicable grace period) or is
accelerated.

(b)        At
any time prior to the Financial Completion Date, any Financial Indebtedness of
the Guarantor in an amount in excess of US$50,000,000 (or its equivalent in the
other currencies) is accelerated or placed on demand.

24.9           Security Interests

Except as otherwise
provided in Clause 24.6 (Termination of Financing
Documents), any Security Interest constituted by any Security
Document at any time:

(a)        ceases
to be valid or enforceable; or

(b)        does
not or ceases to confer in a material respect the Security it purports to
create; or

(c)        ceases
to be a valid and perfected first ranking priority Security Interest, which is
not subject to any prior or pari passu
Security Interests, save for any Permitted Security Interests,

in each case other than
as a result of a matter or circumstance indicated in any legal opinions
delivered by the Borrower to the Facility Agent pursuant to Clause 4.1 (Conditions Precedent to Financial Close) or, if later, at
the time of entering into such Security Documents, provided
that no Event of Default shall occur pursuant to this Clause 24.9 if
such event arises in relation to security over any asset by reason of any event
or circumstance which cannot be attributed to fault on the part of the Borrower
and which is remedied to the satisfaction of the Facility Agent (acting on the
instructions of the Majority Facility Lenders) within sixty (60) days of the
Borrower becoming aware, or receiving notice from the Facility Agent, of that
event or circumstance.

24.10        Insolvency Event

Any Insolvency Event
(other than solvent reorganisations that have the approval of the Facility
Agent acting on the instruction of the Majority Facility Lenders) occurs in
relation to the Borrower or the Shareholder (or, prior to the Financial
Completion Date, the Guarantor), provided that no
Event of Default shall occur pursuant to this Clause 24.10 where the
obligations of the Guarantor under the Sponsor Support Agreement are, prior to
the expiry of the relevant cure period, unconditionally assumed by any other
person(s) to the reasonable satisfaction of the Facility Agent (acting on the
instruction of the Facility Lenders).

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24.11        Long-stop Date

The Financial Completion
Date has not occurred by the date falling four (4) years after the date of this
Agreement.

24.12        Abandonment

Abandonment of all or
substantially all of the Project.

24.13        Political Force Majeure

An Event of Political
Force Majeure occurs and is not remedied within one hundred and eighty (180)
days of receiving notice from the Facility Agent.

24.14        Revocation of Consents

Any Consent is revoked or
not renewed and such revocation or non-renewal has or could reasonably be
expected to have a Material Adverse Effect.

24.15        Security Registration

All registrations and
filings required in accordance with Applicable Law in connection with the
enforceability of and/or the creation and/or perfection of first-ranking
priority Security under each Security Document have not been effected within
120 days after the date of such Security Document.

24.16        Liability in relation to Joint Venture

The Borrower incurs any
liability of whatever nature (other than in respect of any Subordinated Loan)
as a result of the existence or activities of JV Holdco or any Joint Venture
Company or otherwise in connection with the Joint Venture (including as a
result of the introduction of or any change in (or in the judicial
interpretation, administration or application of) any JV Applicable Law made
after the date of this Agreement), unless:

(a)        the
Borrower provides an indemnity in favour of the Finance Parties from an
Acceptable GFL Entity in respect of any such liability within ten (10) Business
Days of the date on which such liability arises; or

(b)        the
Shareholder and/or the Borrower take such steps as may be necessary to
eliminate any such liability of the Borrower within ten (10) Business Days of
the date on which such liability arises,

in each case on such
basis as may be acceptable to the Facility Lenders (acting reasonably).

24.17        Operation of Joint Venture

Any Joint Venture Company
fails, in any material respect, to conduct its business in accordance with good
industry practice and the Equator Principles and the requirements of its
insurances (if any), unless such failure is capable of remedy and is remedied
within five (5) Business Days of its occurrence

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24.18        Compliance by Joint Venture Companies

JV Holdco or any Joint Venture Company fails
to comply with any JV Applicable Law or JV Consent in any material respect
unless such failure is capable of remedy and is remedied within five (5)
Business Days of its occurrence.

24.19        Joint Venture Consents

Either JV Holdco or any Joint Venture Company
fails to obtain and do all that is necessary to maintain in full force and
effect, all material JV Consents (or procure that the material JV Consents are
obtained and so maintained) and make all filings, notifications and
notarisations which at any time or from time to time are required for the
operation of the Joint Venture, unless such failure is capable of remedy and is
remedied within five (5) Business Days of its occurrence.

24.20        Joint Venture Taxes

Either JV Holdco or any
Joint Venture Company fails to file, or cause to be filed, all tax returns
required to be filed by it and promptly pay all Taxes to which it is assessed
liable as they fall due except to the extent it contests (in good faith and by
appropriate means) its obligation to pay any such Taxes where JV Holdco or any
such Joint Venture Company (as the case may be) may lawfully withhold payment
of such Taxes pending resolution of such dispute unless such failure is capable
of remedy and is remedied within five (5) Business Days of its occurrence.

24.21        Joint Venture Change of Business

(a)        JV
Holdco trades, carries on any business, owns any assets or incurs any
liabilities other than:

(i)         the
ownership of shares in the capital of or the provision of shareholder loans to
any Joint Venture Company and the exercise of its rights as shareholder and
lender in connection therewith or the funding of any Joint Venture Company by
way of cash or cash-equivalent investments or any right to any royalty, net
smelter return or similar right or interest in respect of the Joint Venture
Company; or

(ii)        any
liabilities and other obligations incurred by JV Holdco under the Joint Venture
Agreement or in connection with any sale of its shares or other interests in
any Joint Venture Company.

(b)        Any
Joint Venture Company trades, carries on any business, owns any assets or
incurs any liabilities other than in connection with the Joint Venture.

24.22        Joint Venture Management

(a)        The
Borrower provides, or enters into any agreement to provide, any management or
administrative services to JV Holdco or any Joint Venture Company.

(b)        JV
Holdco provides or enters into any agreement to provide any management or
administrative services to any Joint Venture Company.

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(c)        The
Borrower’s management personnel performs any management or administrative
services for JV Holdco or any Joint Venture Company.

(d)        JV
Holdco’s management personnel performs any management or administrative
services for any Joint Venture Company.

24.23        Joint Venture Guarantees

(a)        JV
Holdco gives any guarantee or indemnity or provides any other form of credit
enhancement to or for the benefit of any person or otherwise voluntarily
assumes any liability, whether actual or contingent, in respect of any
obligation of any person.

(b)        Any
guarantor or provider of an indemnity or other form of credit enhancement in
respect of any liability or obligation of JV Holdco in connection with the
Joint Venture fails to waive any right of subrogation it may have against JV
Holdco (if any).

24.24        Joint Venture Shareholdings

(a)        The
Borrower ceases to hold 100% of the voting shares in JV Holdco unless the
Borrower has disposed of all of its shares in JV Holdco in accordance with
Clause 22.4(e).

(b)        JV
Holdco ceases to hold or exercise control over at least 50% of the voting
shares in any Joint Venture Company unless:

(i)         JV
Holdco has disposed of all of its shares in any such Joint Venture Company; or

(ii)        such
circumstance is remedied within thirty (30) days of its occurrence.

24.25        Scope of Joint Venture Company Activities

Any Joint Venture Company
undertakes any activity or business other than Mineral Exploration.

24.26        Joint Venture Company or JV Holdco Insolvency Event

Any Insolvency Event occurs in relation to JV
Holdco or any Joint Venture Company (other than a solvent reorganisation or
winding-up which does not result in the Borrower or, as the case may be, JV
Holdco incurring or assuming any liability or other obligation, whether actual
or contingent).

24.27        Disposal of Joint Venture

No Event of Default shall occur pursuant to
Clauses 24.16 (Liability in relation to Joint Venture)
to 24.26 (Joint Venture Company or JV Holdco Insolvency Event)
above if the Borrower has disposed of all its shares and interest in JV Holdco
or JV Holdco has disposed of all its shares and interest in any Joint Venture
Company such that the Borrower no longer has any indirect interest of any
nature in any Joint Venture Company and the Joint Venture, provided that, for
greater certainty and upon any such

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disposal, nothing in this Agreement shall be
taken to prevent the Borrower or JV Holdco from benefiting from any royalty,
net smelter return or similar right or interest.

25.        REMEDIES FOLLOWING DEFAULT

25.1           Remedies Following Default

At any time and from time
to time after the occurrence of an Event of Default and while the same is
continuing, without prejudice to any of its other rights under any Financing
Document or otherwise, the Facility Agent may, and shall, if so instructed by
the Majority Facility Lenders:

(a)        issue
a notice to the Borrower declaring the Available Commitments to be cancelled,
whereupon they shall be so cancelled, the Available Commitments of each
Facility Lender shall be reduced to zero and no further drawings shall be
requested or made under the Facility; and/or

(b)        issue
a notice to the Borrower declaring all or any part of the Facility, accrued
interest thereon, any fees and any other amounts payable under the Financing
Documents to be immediately due and payable (or due and payable on demand or on
such dates as the Facility Agent may specify) whereupon they shall become so
due and payable; and/or

(c)        issue
a notice to the Borrower declaring that all or any of the security constituted
by the Security Documents has become enforceable and that any of the rights of
the Finance Parties under the Security Documents may be exercised and issue
notices to the Offshore Security Trustee or the Onshore Security Agent, as
applicable, instructing them to enforce all or part of the security constituted
by the Security Documents and to the Account Banks instructing them to block
the Accounts and to apply all monies on deposit in any Account to the
satisfaction of amounts outstanding under the Financing Documents; and/or

(d)        cure
any default under any of the Project Documents by exercising rights under any
Direct Agreement; and/or

(e)        set–off
and apply all monies on deposit in any Account to the satisfaction of the
amounts outstanding under the Financing Documents; and/or

(f)         exercise
any rights available to it under the Accounts Management Agreement and/or the
Master Security and Intercreditor Deed,

provided that
at any time following the exercise of rights under this Clause 25 by any Agent,
any question as to the manner in which a Security Interest is enforced shall be
determined by the Majority Facility Lenders.

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25.2           No Independent Action

None of the Finance
Parties nor any person acting for or appointed by any of them may, except with
the prior consent of the Majority Facility Lenders as otherwise provided in
this Agreement:

(a)        enforce
any Security Interest created or evidenced by any Security Document or require
any Agent to enforce any such Security Interest; or

(b)        sue
for, or institute any creditor’s process (including a freezing order,
garnishment, execution or levy, whether before or after judgment) against the
Borrower in respect of any obligation (whether or not for the payment of money)
owing to it under or in respect of any Financing Document; or

(c)        take
any step (including petition, application, notice of meeting or proposal to
creditors) for the winding-up or administration of, or any insolvency
proceeding, voluntary arrangement or scheme of arrangement in relation to the
Borrower; or

(d)        apply
for any order for an injunction or specific performance in respect of the
Borrower in relation to any of the Financing Documents.

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SECTION
9

CHANGES TO PARTIES

26.                       CHANGES TO
THE FACILITY LENDERS

26.1                 Assignments and transfers by the Facility Lenders

Subject to this
Clause 26, a Facility Lender (the “Existing Facility Lender”)
may:

(a)                        assign any
of its rights; or

(b)                       transfer by
novation any of its rights and obligations,

under any Financing
Document to any of the following (the “New Facility Lender”):

(i)                              another
bank or financial institution; or

(ii)                        a
trust, fund or other entity which is regularly engaged in or established for the
purpose of making, purchasing or investing in loans, securities or other
financial assets; or

(iii)                     the Shareholder purchasing the
Facility following issuance of an enforcement notice under Clause 25.1 (Remedies Following Default) upon which each Facility Lender
will transfer to the Shareholder its rights and obligations in relation to the
Facility for full payment by the Shareholder of all outstanding amounts due and
payable under the Facility (the “Buy-out Option”)
in accordance with Clause 5 of the Sponsor Support Agreement.

26.2                 Conditions of assignment or transfer

(a)                        An
Existing Facility Lender shall obtain the consent of the Borrower prior to
making an assignment or transfer in accordance with Clause 26.1 (Assignments and transfers by the Facility Lenders) unless
the assignment or transfer is:

(i)                             to
another Facility Lender or an Affiliate of a Facility Lender;

(ii)                          to the
Shareholder exercising its Buy-out Option; or

(iii)                       made at a
time when an Event of Default is continuing.

Such consent of the Borrower
to an assignment or transfer shall not be unreasonably withheld or delayed and
shall be deemed to be given, if the Borrower raises no objections, within ten
(10) Business Days of the Borrower receiving written notice of such assignment
or transfer from the Facility Agent.

(b)                       An
assignment or transfer will only be effective:

(i)                             on
receipt by the Facility Agent of written confirmation from the New Facility
Lender (in form and substance satisfactory to the Facility Agent) that the New
Facility Lender will assume the same obligations to the other

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Finance Parties as it would have been under
if it was an Original Facility Lender and in the case of the Shareholder
exercising its Buy-out Option, in addition to the foregoing, receipt of the
Facility Agent of written notice from the Shareholder agreeing to pay all
amounts outstanding under the Facility in consideration for the transfer by
each Facility Lender to the Shareholder of all its rights and obligations in
relation to the Facility;

(ii)                          except
in the case of the Shareholder exercising its Buy-out Option, on the New
Facility Lender entering into the documentation required for it to accede as a
party to the Master Security and Intercreditor Deed;

(iii)                       except in
the case of the Shareholder exercising its Buy-out Option, on the performance
by the Facility Agent of all “know your customer”
or other checks relating to any person that it is required to carry out in
relation to such assignment to a New Facility Lender, the completion of which
the Facility Agent shall promptly notify to the Existing Facility Lender and
the New Facility Lender; and

(iv)                      only if the
procedure set out in Clause 26.5 (Procedure for transfer)
is complied with.

(c)                        If:

(i)                             a
Facility Lender assigns or transfers any of its rights or obligations under the
Financing Documents or changes its Facility Office; and

(ii)                          as a
result of circumstances existing at the date the assignment, transfer or change
occurs, the Borrower would be obliged to make a payment to the New Facility
Lender or Facility Lender acting through its new Facility Office under
Clause 13 (Tax Gross Up and Tax Indemnity)
or Clause 14 (Increased Costs),

then the New Facility
Lender or Facility Lender acting through its new Facility Office is only
entitled to receive payment under those provisions to the same extent as the
Existing Facility Lender or Facility Lender acting through its previous
Facility Office would have been if the assignment, transfer or change had not
occurred.

26.3                 Assignment or transfer fee

Except in the case of the
Shareholder exercising its Buy-out Option and unless the Facility Agent
otherwise agrees and excluding an assignment or transfer to an Affiliate of a
Facility Lender or made in connection with primary syndication of the Facility,
the New Facility Lender shall, on the date upon which an assignment or transfer
takes effect, pay to the Facility Agent (for its own account) a fee of
US$2,000.

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26.4                 Limitation of responsibility of Existing Facility Lenders

(a)                        Unless
expressly agreed to the contrary, an Existing Facility Lender makes no
representation or warranty and assumes no responsibility to a New Facility
Lender for:

(i)                             the
legality, validity, effectiveness, adequacy or enforceability of the
Transaction Documents, the Security or any other documents;

(ii)                          the
financial condition of the Borrower;

(iii)                       the
performance and observance by the Borrower of its obligations under the
Transaction Documents or any other documents; or

(iv)                      the accuracy
of any statements (whether written or oral) made in or in connection with any
Transaction Document or any other document,

and any representations
or warranties implied by law are excluded.

(b)                       Each
New Facility Lender confirms to the Existing Facility Lender and the other
Finance Parties, where applicable, that it:

(i)                             has
made (and shall continue to make) its own independent investigation and
assessment of the financial condition and affairs of the Borrower and its
related entities in connection with its participation in this Agreement and has
not relied exclusively on any information provided to it by the Existing
Facility Lender or any other Finance Party in connection with any Transaction
Document or the Security; and

(ii)                          will
continue to make its own independent appraisal of the creditworthiness of the
Borrower and its related entities whilst any amount is or may be outstanding
under the Financing Documents or any Commitment is in force.

(c)                        Nothing
in any Financing Document obliges an Existing Facility Lender to:

(i)                             accept
a re-transfer from a New Facility Lender of any of the rights and obligations
assigned or transferred under this Clause 26.4; or

(ii)                          support
any losses directly or indirectly incurred by the New Facility Lender by reason
of the non-performance by the Borrower of its obligations under the Transaction
Documents or otherwise.

26.5                 Procedure for transfer

(a)                        Subject
to the conditions set out in Clause 26.2 (Conditions
of assignment or transfer), a transfer is effected in accordance
with Clause 26.5(c) when the Facility Agent executes an otherwise (i) duly
completed Transfer Certificate and (ii) duly executed New Facility Lender
Accession Deed delivered to it by the Existing Facility Lender and the New
Facility Lender.  The Facility Agent
shall,

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subject to
Clause 26.5(b), as soon as reasonably practicable following receipt by it of
such documents in satisfactory form execute each of them.

(b)                       Except
in the case of the Shareholder exercising its Buy-out Option, the Facility
Agent shall only be obliged to execute a Transfer Certificate delivered to it
by the Existing Facility Lender and the New Facility Lender once it is
satisfied it has complied with all necessary “know your
customer” or similar other checks under all applicable laws and
regulations in relation to the transfer to such New Facility Lender.

(c)                        On
the Transfer Date:

(i)                             to
the extent that in the Transfer Certificate the Existing Facility Lender seeks
to transfer by novation its rights and obligations under the Financing
Documents, the Borrower and the Existing Facility Lender shall be released from
further obligations towards one another under the Financing Documents and their
respective rights against one another under the Financing Documents shall be
cancelled (being the “Discharged Rights and
Obligations”);

(ii)                          the
Borrower and the New Facility Lender shall assume obligations towards one
another and/or acquire rights against one another which differ from the
Discharged Rights and Obligations only insofar as the Borrower and the New
Facility Lender have assumed and/or acquired the same in place of the Borrower
and the Existing Facility Lender;

(iii)                       the
Agents, the Mandated Lead Arrangers, the New Facility Lender and the other
Facility Lenders shall acquire the same rights and assume the same obligations
between themselves as they would have acquired and assumed had the New Facility
Lender been an Original Facility Lender with the rights, and/or obligations
acquired or assumed by it as a result of the transfer and to that extent the
Agents, the Mandated Lead Arrangers, the other Facility Lenders and the
Existing Facility Lender shall each be released from further obligations to
each other under the Financing Documents; and

(iv)                      the
New Facility Lender shall become a Party as a “Facility
Lender”.

26.6                 Transfer certificate and further documents

(a)                        The
Facility Agent shall as soon as reasonably practicable after it has executed a
Transfer Certificate, send to the Borrower a copy of that Transfer Certificate.

(b)                       Each
Party agrees at the request of the Facility Agent to execute and deliver such
additional documents and take such further steps as may be reasonably necessary
or desirable in the opinion of the Facility Agent to perfect any assignment or
transfer effected in accordance with this Clause 26.

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26.7                 Disclosure of information

(a)                        Any
Facility Lender may disclose to any of its Affiliates and any other person:

(i)                             to
(or through) whom that Facility Lender assigns or transfers (or may potentially
assign or transfer) all or any of its rights and obligations under the
Financing Documents; or

(ii)                          with
(or through) whom that Facility Lender enters into (or may potentially enter
into) any sub—participation in relation to, or any other transaction under
which payments are to be made by reference to, the Financing Documents or the
Borrower; or

(iii)                       to
whom, and to the extent that, information is required to be disclosed by any
applicable law or regulation; and

(b)                       any
Finance Party may disclose to:

(i)                             a
rating agency; or

(ii)                          its
professional advisers; or

(iii)                       (with
the consent of the Borrower) any other person,

any information regarding
the Borrower and the Financing Documents as that Facility Lender or other
Finance Party shall consider appropriate if, in relation to paragraphs (a)(i)
and (ii) and (b)(iii) above, the person to whom the information is to be given
has entered into a confidentiality undertaking on terms reasonably acceptable
to the Borrower.

26.8                 Changes to the Obligors

(a)                        The
Borrower may not assign or transfer any of its rights or obligations under the
Financing Documents.

(b)                       An
Obligor other than the Borrower may only assign or transfer its rights and
obligations under the Financing Documents in accordance with the Sponsor
Support Agreement.

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SECTION 10 

ADMINISTRATION

27.                       ROLE OF THE
FACILITY AGENT

27.1                 Appointment of the Facility Agent

(a)                        Each
of the Facility Lenders appoints the Facility Agent to act as its agent under
and in connection with the Financing Documents.

(b)                       Each
of the Facility Lenders authorises the Facility Agent to exercise the rights,
powers, authorities and discretions specifically given to the Facility Agent
under or in connection with the Financing Documents together with any other
incidental rights, powers, authorities and discretions.

27.2                 Duties of the Facility Agent

(a)                        The
Facility Agent shall promptly forward to a Party the original or a copy of any
document which is delivered to the Facility Agent for that Party by any other
Party.

(b)                       Except
where a Financing Document specifically provides otherwise, the Facility Agent
is not obliged to review or check the adequacy, accuracy or completeness of any
document it forwards to another Party.

(c)                        If
the Facility Agent receives notice from a Party referring to this Agreement,
describing a Default and stating that the circumstance described is a Default,
it shall promptly notify the other Finance Parties.

(d)                       If
the Facility Agent is aware of the non—payment of any principal, interest,
commitment fee or other fee payable to a Finance Party (other than the Agents
or the Mandated Lead Arrangers) under this Agreement it shall promptly notify
the other Finance Parties.

(e)                        The
Facility Agent’s duties under the Financing Documents are solely mechanical and
administrative in nature.

27.3                 Role of the Mandated Lead Arrangers

Except as specifically
provided in the Financing Documents, each Mandated Lead Arranger has no
obligations of any kind to any other Party under or in connection with any
Financing Document.

27.4                 No fiduciary duties

(a)                        Nothing
in this Agreement constitutes the Facility Agent and/or the Mandated Lead
Arrangers, as a trustee or fiduciary of any other person.

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(b)                       None
of the Agents, and/or the Mandated Lead Arrangers shall be bound to account to
any Facility Lender for any sum or the profit element of any sum received by it
for its own account.

27.5                 Business with the Borrower and the Shareholder

The Agents and/or the
Mandated Lead Arrangers may accept deposits from, lend money to and generally
engage in any kind of banking or other business with the Borrower, the
Shareholder and the Guarantor.

27.6                 Rights and discretions

(a)                        The
Facility Agent may rely on:

(i)                             any
representation, notice or document believed by it to be genuine, correct and
appropriately authorised; and

(ii)                          any
statement made by a director, authorised signatory or employee of any person
regarding any matters which may reasonably be assumed to be within his
knowledge or within his power to verify.

(b)                       The
Facility Agent may assume (unless it has received notice to the contrary in its
capacity as agent for the Facility Lenders) that:

(i)                             no
Default has occurred (unless it has actual knowledge of a Default arising under
Clause 24.1 (Failure to Pay Scheduled Amounts)
and Clause 24.2 (Failure to Pay Unscheduled Amounts);
and

(ii)                          any
right, power, authority or discretion vested in any Party or the Majority
Facility Lenders has not been exercised.

(c)                        The
Facility Agent may engage, pay for and rely on the advice or services of any
lawyers, accountants, surveyors or other experts.

(d)                       The
Facility Agent may act in relation to the Financing Documents through its
personnel and agents.

(e)                        The
Facility Agent may disclose to any other Party any information it reasonably
believes it has received as agent under this Agreement.

(f)                          Notwithstanding
any other provision of any Financing Document to the contrary, the Facility
Agent is not obliged to do or omit to do anything if it would or might in its
reasonable opinion constitute a breach of any law or regulation or a breach of
a fiduciary duty or duty of confidentiality.

27.7                 Majority Facility Lenders’ instructions

(a)                        Unless
a contrary indication appears in a Financing Document, the Facility Agent shall
(i) exercise any right, power, authority or discretion vested in it as
Agent in accordance with any instructions given to it by the Majority Facility
Lenders (or, if so instructed by the Majority Facility Lenders, refrain from
exercising any right,

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power,
authority or discretion vested in it as Agent) and (ii) not be liable for
any act (or omission) if it acts (or refrains from taking any action) in accordance
with an instruction of the Majority Facility Lenders.

(b)                       Unless
a contrary indication appears in a Financing Document, any instructions given
by the Majority Facility Lenders will be binding on all the Finance Parties.

(c)                        The
Facility Agent may refrain from acting in accordance with the instructions of
the Majority Facility Lenders (or, if appropriate, the Facility Lenders) until
it has received such security as it may require for any cost, loss or liability
(together with any associated VAT) which it may incur in complying with the
instructions.

(d)                       In
the absence of instructions from the Majority Facility Lenders, (or, if
appropriate, the Facility Lenders) the Facility Agent may act (or refrain from
taking action) as it considers to be in the best interest of the Facility
Lenders as a whole.

(e)                        The
Facility Agent is not authorised to act on behalf of a Facility Lender (without
first obtaining that Facility Lender’s consent) in any legal or arbitration
proceedings relating to any Financing Document. 
It is hereby understood that the instructions from the Majority Facility
Lenders authorise the Facility Agent to act on behalf of all Facility Lenders.
This Clause 27.7(e) shall not apply to any legal or arbitration proceeding
relating to the perfection, preservation or protection of rights under the
Security Documents or enforcement of the Security or Security Documents.

27.8                 Responsibility for documentation

Neither the Facility
Agent nor any of the Mandated Lead Arrangers:

(a)                        is
responsible for the adequacy, accuracy and/or completeness of any information
(whether oral or written) supplied by it, an Obligor or any other person given
in or in connection with any Financing Document or the Relevant Reports or the
transactions contemplated in the Financing Documents; or

(b)                       is
responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Financing Document or the Security or any other
agreement, arrangement or document entered into, made or executed in
anticipation of or in connection with any Financing Document or the Security.

27.9                 Exclusion of liability

(a)                        Without
limiting Clause 27.9(b), the Facility Agent will not be liable for any action
taken by it under or in connection with any Financing Document or the Security,
unless directly caused by its gross negligence or wilful misconduct.

(b)                       No
Party (other than the Facility Agent) may take any proceedings against any
officer, employee or agent of the Facility Agent in respect of any claim it
might have against the Facility Agent or in respect of any act or omission of
any kind by

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that officer,
employee or agent in relation to any Financing Document or any Transaction
Document and any officer, employee or agent of the Facility Agent may rely on
this Clause 27.9 subject to Clause 1.4 (Third Party
Rights) and the provisions of the Third Parties Act.

(c)                        The
Facility Agent will not be liable for any delay (or any related consequences)
in crediting an account with an amount required under the Financing Documents
to be paid by the Facility Agent if the Facility Agent has taken all necessary
steps as soon as reasonably practicable to comply with the regulations or
operating procedures of any recognised clearing or settlement system used by
the Facility Agent for that purpose.

(d)                       Nothing
in this Agreement shall oblige the Facility Agent or the Mandated Lead
Arrangers to carry out any “know your customer”
or other checks in relation to any person on behalf of any Facility Lender and
each Facility Lender confirms to the Facility Agent and the Mandated Lead
Arrangers that it is solely responsible for any such checks it is required to
carry out and that it may not rely on any statement in relation to such checks
made by the Facility Agent or the Mandated Lead Arrangers.

27.10           Facility Lenders’
indemnity to the Facility Agent

Each Facility Lender
shall (in proportion to its share of the Total Commitments or, if the Total
Commitments are then zero, to its share of the Total Commitments immediately
prior to their reduction to zero) indemnify the Facility Agent, within three
(3) Business Days’ of demand, against any cost, loss or liability incurred by
the Facility Agent (otherwise than by reason of the Facility Agent’s gross
negligence or wilful misconduct) in acting as Agent under the Financing Documents
(unless the Facility Agent has been reimbursed by the Borrower pursuant to a
Financing Document).

27.11           Resignation of the
Facility Agent

(a)                        The
Facility Agent may resign by giving thirty (30) days’ prior written notice to
the Facility Lenders and the Borrower, in which case the Majority Facility
Lenders (after consultation with the Borrower) may appoint a successor Facility
Agent.

(b)                       If
the Majority Facility Lenders have not appointed a successor Facility Agent in
accordance with Clause 27.11(a) within thirty (30) days after notice of
resignation was given, the Facility Agent (after consultation with the
Borrower) may appoint a successor Facility Agent.

(c)                        The
retiring Facility Agent shall, at its own cost, make available to the successor
Facility Agent such documents and records and provide such assistance as the
successor Facility Agent may reasonably request for the purposes of performing
its functions as Facility Agent under the Financing Documents.

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(d)                       The
Facility Agent’s resignation notice shall only take effect upon the appointment
of a successor.

(e)                        Upon
the appointment of a successor, the retiring Facility Agent shall be discharged
from any further obligation in respect of the Financing Documents but shall
remain entitled to the benefit of this Clause 27.  Its successor and each of the other Parties
shall have the same rights and obligations amongst themselves as they would
have had if such successor had been an original Party.

(f)                          After
consultation with the Borrower, the Majority Facility Lenders may, by notice to
the Facility Agent, require it to resign in accordance with Clause
27.11(a).  In this event, the Facility
Agent shall resign in accordance with Clause 27.11(a).

27.12           Relationship with the
Facility Lenders

(a)                        The
Facility Agent may treat each Facility Lender as a Facility Lender, entitled to
payments under this Agreement and acting through its Facility Office unless it
has received not less than five (5) Business Days prior notice from that
Facility Lender to the contrary in accordance with the terms of this Agreement.

(b)                       Each
Facility Lender shall supply the Facility Agent with any information that the
Offshore Security Trustee or the Onshore Security Agent may reasonably specify
(through the Facility Agent) as being necessary or desirable to enable the
Offshore Security Trustee and the Onshore Security Agent to perform their
respective functions as security agents. 
Each Facility Lender shall deal with the Offshore Security Trustee and the
Onshore Security Agent exclusively through the Facility Agent and shall not
deal directly with the Offshore Security Trustee and the Onshore Security Agent
respectively.

27.13           Credit appraisal by the
Facility Lenders

Without affecting the
responsibility of the Borrower for information supplied by it or on its behalf
in connection with any Financing Document, each Facility Lender confirms to the
Facility Agent and the Mandated Lead Arrangers that it has been, and will
continue to be, solely responsible for making its own independent appraisal and
investigation of all risks arising under or in connection with any Financing
Document including but not limited to:

(a)                        the
financial condition, status and nature of the Borrower;

(b)                       the
legality, validity, effectiveness, adequacy or enforceability of any Financing
Document and the Security and any other agreement, arrangement or document
entered into, made or executed in anticipation of, under or in connection with
any Financing Document or the Security;

(c)                        whether
that Finance Party has recourse, and the nature and extent of that recourse,
against any Party or any of its respective assets under or in connection with
any Financing Document, the Security, the transactions contemplated by the

 101
 

 

Financing
Documents or any other agreement, arrangement or document entered into, made or
executed in anticipation of, under or in connection with any Financing
Document;

(d)                       the
adequacy, accuracy and/or completeness of the Reports and any other information
provided by the Facility Agent, any Party or by any other person under or in
connection with any Financing Document, the transactions contemplated by the
Financing Documents or any other agreement, arrangement or document entered
into, made or executed in anticipation of, under or in connection with any
Financing Document; and

(e)                        the
right or title of any person in or to, or the value or sufficiency of any part
of the charged property, the priority of any of the Security or the existence
of any Security affecting the charged property.

27.14           Reference Banks

If a Reference Bank (or,
if a Reference Bank is not a Facility Lender, the Facility Lender of which it
is an Affiliate) ceases to be a Facility Lender, the Facility Agent shall (in
consultation with the Borrower) appoint another Facility Lender or an Affiliate
of a Facility Lender to replace that Reference Bank.

27.15           Deduction from amounts
payable by the Facility Agent

If any Party owes an
amount to the Facility Agent under the Financing Documents the Facility Agent
may, after giving notice to that Party, deduct an amount not exceeding that
amount from any payment to that Party which the Facility Agent would otherwise
be obliged to make under the Financing Documents and apply the amount deducted
in or towards satisfaction of the amount owed. 
For the purposes of the Financing Documents that Party shall be regarded
as having received any amount so deducted.

28.                       CONDUCT OF
BUSINESS BY THE FINANCE PARTIES

No provision of this
Agreement will:

(a)                        interfere
with the right of any Finance Party to arrange its affairs (tax or otherwise)
in whatever manner it thinks fit;

(b)                       oblige
any Finance Party to investigate or claim any credit, relief, remission or
repayment available to it or the extent, order and manner of any claim; or

(c)                        oblige
any Finance Party to disclose any information relating to its affairs (tax or
otherwise) or any computations in respect of Tax.

 102
 

 

29.                       SHARING AMONG THE FINANCE PARTIES

29.1                 Payments to Finance Parties

If a Finance Party (a “Recovering Finance Party”) receives or
recovers any amount from the Borrower other than in accordance with
Clause 30 (Payment Mechanics) and applies
that amount to a payment due under the Financing Documents then:

(a)                        the
Recovering Finance Party shall, within three (3) Business Days, notify details
of the receipt or recovery, to the Facility Agent;

(b)                       the
Facility Agent shall determine whether the receipt or recovery is in excess of
the amount the Recovering Finance Party would have been paid had the receipt or
recovery been received or made by the Facility Agent and distributed in
accordance with Clause 30 (Payment Mechanics),
without taking account of any Tax which would be imposed on the Facility Agent
in relation to the receipt, recovery or distribution; and

(c)                        the
Recovering Finance Party shall, within three (3) Business Days of demand by the
Facility Agent, pay to the Facility Agent an amount (the “Sharing Payment”) equal to such receipt or
recovery less any amount which the Facility Agent determines may be retained by
the Recovering Finance Party as its share of any payment to be made, in
accordance with Clause 30.5 (Partial Payments).

29.2                 Redistribution of payments

The Facility Agent shall
treat the Sharing Payment as if it had been paid by the Borrower and distribute
it between the Finance Parties (other than the Recovering Finance Party) in
accordance with Clause 30.5 (Partial Payments).

29.3                 Recovering Finance Party’s rights

(a)                        On
a distribution by the Facility Agent under Clause 29.2 (Redistribution of payments), the Recovering Finance Party
will be subrogated to the rights of the Finance Parties which have shared in
the redistribution.

(b)                       If
and to the extent that the Recovering Finance Party is not able to rely on its
rights under Clause 29.3(a), the Borrower shall be liable to the Recovering
Finance Party for a debt equal to the Sharing Payment which is immediately due
and payable.

29.4                 Reversal of redistribution

If any part of the
Sharing Payment received or recovered by a Recovering Finance Party becomes
repayable and is repaid by that Recovering Finance Party, then:

(a)                        each
Finance Party which has received a share of the relevant Sharing Payment
pursuant to Clause 29.2 (Redistribution of payments)
shall, upon request of the Facility Agent, pay to the Facility Agent for
account of that Recovering Finance Party an amount equal to the appropriate
part of its share of the Sharing Payment (together with an amount as is
necessary to reimburse that Recovering Finance 

 103
 

 

Party for its
proportion of any interest on the Sharing Payment which that Recovering Finance
Party is required to pay); and

(b)                       that
Recovering Finance Party’s rights of subrogation in respect of any
reimbursement shall be cancelled and the relevant Borrower will be liable to
the reimbursing Finance Party for the amount so reimbursed.

29.5                 Exceptions

(a)                        This
Clause 29 shall not apply to the extent that the Recovering Finance Party
would not, after making any payment pursuant to this Clause 29, have a valid
and enforceable claim against the Borrower.

(b)                       A
Recovering Finance Party is not obliged to share with any other Finance Party
any amount which the Recovering Finance Party has received or recovered as a
result of taking legal or arbitration proceedings, if:

(i)                             it
notified the other Finance Party of the legal or arbitration proceedings; and

(ii)                          the
other Finance Party had an opportunity to participate in those legal or
arbitration proceedings but did not do so as soon as reasonably practicable
having received notice and did not take separate legal or arbitration
proceedings.

30.                       PAYMENT
MECHANICS

30.1                 Payments to the Facility Agent

(a)                        On
each date on which the Borrower or a Facility Lender is required to make a
payment under a Financing Document, the Borrower or such Facility Lender shall
make the same available to the Facility Agent (unless a contrary indication
appears in a Financing Document) for value on the due date at the time and in
such funds specified by the Facility Agent as being customary at the time for
settlement of transactions in the relevant currency in the place of payment.

(b)                       Payment
shall be made to such account in the principal financial centre of the country
of that currency with such bank as the Facility Agent specifies.

30.2                 Distributions by the Facility Agent

Each payment received by
the Facility Agent under the Financing Documents for another Party shall,
subject to Clause 30.3 (Distributions)
and Clause 30.4 (Clawback) be
made available by the Facility Agent as soon as practicable after receipt to
the Party entitled to receive payment in accordance with this Agreement (in the
case of a Facility Lender, for the account of its Facility Office), to such
account as that Party may notify to the Facility Agent by not less than five
(5) Business Days’ notice with a bank in the principal financial centre of the
country of that currency.

 104
 

 

30.3                 Distributions

The Facility Agent may
(with the consent of the Borrower or in accordance with Clause 31 (Set—off)) apply any amount received by it for the Borrower
in or towards payment (on the date and in the currency and funds of receipt) of
any amount due from the Borrower under the Financing Documents or in or towards
purchase of any amount of any currency to be so applied.

30.4                 Clawback

(a)                        Where
a sum is to be paid to the Facility Agent under the Financing Documents for
another Party, the Facility Agent is not obliged to pay that sum to that other
Party (or to enter into or perform any related exchange contract) until it has
been able to establish to its satisfaction that it has actually received that
sum.

(b)                       If
the Facility Agent pays an amount to another Party and it proves to be the case
that the Facility Agent had not actually received that amount, then the Party
to whom that amount (or the proceeds of any related exchange contract) was paid
by the Facility Agent shall on demand refund the same to the Facility Agent
together with interest on that amount from the date of payment to the date of
receipt by the Facility Agent, calculated by the Facility Agent to reflect its
cost of funds.

30.5                 Partial Payments

(a)                        Subject
to the Master Security and Intercreditor Deed, if the Facility Agent receives a
payment for application against amounts due in respect of any Financing
Documents that is insufficient to discharge all the amounts then due and
payable by the Borrower under those Financing Documents, the Facility Agent
shall apply that payment towards the obligations of the Borrower under those
Financing Documents in the following order:

(i)                             first, in or towards payment pro rata of any unpaid fees, costs and expenses of the
Agents under those Financing Documents;

(ii)                          secondly, in or towards payment pro rata of any accrued interest, fee or commission due but
unpaid under those Financing Documents;

(iii)                       thirdly, in or towards payment pro rata of any principal due but unpaid under those
Financing Documents; and

(iv)                      fourthly, in or towards payment pro rata of any other sum due but unpaid under the Financing
Documents.

(b)                       The
Facility Agent shall, if so directed by the Majority Facility Lenders, vary the
order set out in paragraphs (a)(ii) to (iv) above.

(c)                        Clauses
30.5(a) and 30.5(b) will override any appropriation made by the Borrower.

 105
 

 

30.6                 No Set–Off

All payments to be made
by the Borrower under the Financing Documents shall be calculated and be made
without (and free and clear of any deduction for) set–off or counterclaim.

30.7                 Business Days

(a)                        Any
payment which is due to be made on a day that is not a Business Day shall be
made on the next Business Day in the same calendar month (if there is one) or
the preceding Business Day (if there is not).

(b)                       During
any extension of the due date for payment of any principal or Unpaid Sum under
this Agreement interest is payable on the principal or Unpaid Sum at the rate
payable on the original due date.

30.8                 Currency of Account

(a)                        Dollars
is the currency of account and payment for any sum due from the Borrower under
any Financing Document.

(b)                       Each
payment in respect of costs, expenses or Taxes shall be made in the currency in
which the costs, expenses or Taxes are incurred.

(c)                        Any
amount expressed to be payable in a currency other than Dollars shall be paid
in that other currency.

30.9                 Change of Currency

(a)                        Unless
otherwise prohibited by law, if more than one currency or currency unit are at
the same time recognised by the central bank of any country as the lawful
currency of that country, then:

(i)                             any
reference in the Financing Documents to, and any obligations arising under the
Financing Documents in, the currency of that country shall be translated into,
or paid in, the currency or currency unit of that country designated by the
Facility Agent (after consultation with the Borrower); and

(ii)                          any
translation from one currency or currency unit to another shall be at the
official rate of exchange recognised by the central bank for the conversion of
that currency or currency unit into the other, rounded up or down by the
Facility Agent (acting reasonably).

(b)                       If
a change in any currency of a country occurs, this Agreement will, to the
extent the Facility Agent (acting reasonably and after consultation with the
Borrower) specifies to be necessary, be amended to comply with any generally
accepted conventions and market practice in the London interbank market and
otherwise to reflect the change in currency.

 106

 

SECTION 11 

MISCELLANEOUS

31.                       SET–OFF

A Finance Party may
set-off any matured obligation due from the Borrower under the Financing
Documents (to the extent beneficially owned by that Finance Party) against any
matured obligation owed by that Finance Party to the Borrower, regardless of
the place of payment, booking branch or currency of either obligation.  If the obligations are in different
currencies, the Finance Party may convert either obligation at a market rate of
exchange in its usual course of business for the purpose of the set-off.

32.                       NOTICES

32.1                 Communications in writing

Any communication to be
made under or in connection with the Financing Documents shall be made in
writing and, unless otherwise stated or permitted by the purported recipient, may
be made by fax or letter.

32.2                 Addresses

The address and
fax number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to
be made or delivered under or in connection with the Financing Documents is:

(a)                        in
the case of the Mandated Lead Arrangers, the Borrower, each Original Facility
Lender and each Agent that identified with its name at the end of this
Agreement;

(b)                       in
the case of each other Facility Lender and each successor Agent, that notified
in writing to the Facility Agent on or prior to the date on which it becomes a
Party,

or any substitute address
or fax number or department or officer as the Party may notify to the Facility
Agent (or the Facility Agent may notify to the other Parties, if a change is
made by the Facility Agent) by not less than five (5) Business Days’ notice.

32.3                 Delivery

(a)                        Any
communication or document made or delivered by one person to another under or
in connection with the Financing Documents will only be effective if sent by
fax, delivered by hand or sent by reputable courier and shall be effective
from:

(i)                          if
sent by way of fax, the time at which it is received in legible form; or

(ii)                       if
hand delivered or sent by courier, the date on which it has been left at the
relevant address,

and, if a particular
department or officer is specified as part of its address details provided
under Clause 32.2 (Addresses), if
addressed to that department or officer.

 107
 

 

(b)                       Any
communication or document to be made or delivered to the Facility Agent will be
effective only when actually received by the Facility Agent and then only if it
is expressly marked for the attention of the department or officer identified
with the Facility Agent’s signature below (or any substitute department or
officer as the Facility Agent shall specify for this purpose).

(c)                        All
notices from or to the Borrower shall be sent through the Facility Agent.

32.4                 Notification of address and fax number

Promptly upon receipt of
notification of an address or fax number or change of address or fax number
pursuant to Clause 32.2 (Addresses) or
changing its own address or fax number, the Facility Agent shall notify the
other Parties.

32.5                 Electronic communication

(a)                        Any
communication to be made between any of the Borrower, the Facility Agent and a
Facility Lender under or in connection with the Financing Documents may be made
by electronic mail or other electronic means, if the Borrower, the Facility
Agent and the relevant Facility Lender:

(i)                          agree
that, unless and until notified to the contrary, this is to be an accepted form
of communication;

(ii)                       notify
each other in writing of their electronic mail address and/or any other
information required to enable the sending and receipt of information by that
means; and

(iii)                    notify
each other of any change to their address or any other such information
supplied by them.

(b)                       Any
electronic communication made between any of the Borrower, the Facility Agent
and a Facility Lender will be effective only when actually received in readable
form and in the case of any electronic communication made by a Facility Lender
to the Facility Agent, only if it is addressed in such a manner as the Facility
Agent shall specify for this purpose.

32.6                 English language

(a)                        Any
notice given under or in connection with any Financing Document must be in
English.

(b)                       All
other documents provided under or in connection with any Financing Document
must be:

(i)                          in
English; or

(ii)                       if
not in English, and if so required by the Facility Agent, accompanied by a
certified English translation and, in this case, the English translation will

 108
 

 

prevail unless
the document is a constitutional, statutory or other official document.

33.                       CALCULATIONS
AND CERTIFICATES

33.1                 Accounts

In any litigation or
arbitration proceedings arising out of or in connection with a Financing
Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.

33.2                 Certificates and Determinations

Any certification or
determination by a Finance Party of a rate or amount under any Financing
Document is, in the absence of manifest error, conclusive evidence of the
matters to which it relates.

33.3                 Day count convention

Any interest or fee
accruing under a Financing Document will accrue from day to day and is
calculated on the basis of the actual number of days elapsed and a year of 360
days, or in any case in which the practice in the relevant interbank market
differs in accordance with that market practice.

34.                       PARTIAL
INVALIDITY

If, at any time, any
provision of the Financing Documents is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions nor the
legality, validity or enforceability of such provision under the law of any
other jurisdiction will in any way be affected or impaired.

35.                       REMEDIES
AND WAIVERS

No failure to exercise,
nor any delay in exercising, on the part of any Finance Party, any right or
remedy under the Financing Documents shall operate as a waiver, nor shall any
single or partial exercise of any right or remedy prevent any further or other
exercise or the exercise of any other right or remedy.  The rights and remedies provided in this
Agreement are cumulative and not exclusive of any rights or remedies provided
by law.

36.                       CONFIDENTIALITY

36.1                 Confidentiality Undertaking

Save as permitted
pursuant to the terms of the Financing Documents, any information, reports or
documents furnished pursuant to the Financing Documents to the Finance Parties
shall be kept confidential by the recipient and the Finance Parties agree not
to disclose to any third party any of the information, reports or documents
supplied by, or on behalf of, the Borrower under the Financing Documents
without the prior consent of the Borrower (such consent not to be unreasonably
withheld or delayed).

 109
 

 

36.2                 Exceptions

The provisions of Clause
36.1 (Confidentiality Undertaking) shall not
apply:

(a)                        to
any information already known to the recipient, having emanated in conditions
free from confidentiality bona fide from
some person other than the Borrower or any agent of the Borrower;

(b)                       to
any information subsequently received by the recipient which it would otherwise
be free to disclose, having emanated in conditions free from confidentiality bona fide from some person other than the Borrower or any
agent of the Borrower;

(c)                        to
any information which is or becomes public knowledge;

(d)                       to
prohibit disclosure of any information to the extent that the recipient is
required to disclose the same pursuant to any law or order of any court or
order of any governmental agency or regulatory body or securities exchange with
whose instructions the recipient habitually complies;

(e)                        to
prohibit the supply of any information to the auditors of any of the Finance
Parties;

(f)                          any
disclosure in accordance with Clause 26.7 (Disclosure of information);
or

(g)                       to
any third party approved by the Borrower who has signed a confidentiality
undertaking on terms reasonably acceptable to the Borrower.

37.                       AMENDMENTS
AND WAIVERS

(a)                        Subject
to the terms of this Agreement and the Master Security and Intercreditor Deed,
any term of the Financing Documents may be amended or waived only with the consent
of the Majority Facility Lenders and the Borrower and any such amendment or
waiver will be in writing, binding on all Parties.

(b)                       The
Facility Agent may effect, on behalf of any Finance Party, any amendment or
waiver permitted by this Clause 37.

38.                       COUNTERPARTS

Each Financing Document
may be executed in any number of counterparts, and this has the same effect as
if the signatures on the counterparts were on a single copy of the Financing
Document.

39.                       GOVERNING
LAW

This Agreement is
governed by and shall be construed in accordance with English law.

 110
 

 

40.                       JURISDICTION

40.1                 English Courts

The Parties agree that
the courts of England shall have jurisdiction to settle any dispute,
controversy or claim arising out of or in connection with this Agreement (including
a dispute, controversy or claim regarding the existence, validity, performance
under or termination of this Agreement or the consequences of its nullity) (a “Dispute”).

40.2                 Appropriate Forum

Each of the Parties
hereby irrevocably and unconditionally submit and consent to the non—exclusive
jurisdiction of the courts of England in respect of any Dispute and agree not
to claim that any such court is not a convenient or appropriate forum.

40.3                 Non–exclusive Submission

This Clause 40 (Jurisdiction) is for the benefit of the Finance Parties
only.  As a result and notwithstanding
Clause 40.1 (English Courts) above, no Finance
Party shall be prevented from taking proceedings relating to a Dispute in any
other court of competent jurisdiction. 
To the extent allowed by law, the Finance Parties may take concurrent
proceedings in any number of jurisdictions.

40.4                 Service of Process

Without prejudice to any
other mode of service allowed under any relevant law, the Borrower:

(a)                        irrevocably
appoints Law Debenture Corporate Services Limited of Fifth Floor, 100 Wood
Street, London  EC2V 7EX, England as its
agent for service of process in relation to any proceedings before the English
courts in connection with any Financing Document;

(b)                       agrees
that failure by a process agent to notify the Borrower of the process will not
invalidate the proceedings concerned; and

(c)                        hereby
irrevocably authorises the Facility Agent to appoint an agent for service of
process on behalf of the Borrower should the Borrower at any time fail to
maintain in full force and effect a process agent in accordance with this
Clause 40.4, and the Facility Agent shall promptly notify the Borrower of any
such appointment.

41.                       ARBITRATION

41.1                 LCIA Rules

The Facility Agent only
may, at any time before instituting any court proceedings pursuant to Clause 40
(Jurisdiction), or within ten (10)
Business Days after the Borrower institutes any such proceedings, elect to have
any Dispute finally and exclusively settled under the Rules of Arbitration of
the London Court of International Arbitration from time to time in effect (the “LCIA Rules”).  Should
the Facility Agent

 111
 

 

so elect, the Borrower
shall immediately discontinue any court proceedings it has instituted pursuant
to Clause 40 (Jurisdiction).

41.2                 Nomination of Arbitrators

There shall be three (3)
arbitrators.  The Borrower shall nominate
an arbitrator and the Facility Agent shall nominate an arbitrator in accordance
with the LCIA Rules.  The third
arbitrator, who shall be the Chairman of the arbitral tribunal, shall be
nominated jointly by the first two arbitrators within fourteen (14) days of the
confirmation by the London Court of International Arbitration of the
appointment of the second arbitrator. 
Failing such agreement between the first two arbitrators, the third
arbitrator shall be appointed by the London Court of International Arbitration.

41.3                 General Provisions

The place of arbitration
shall be London.  The language of the
arbitration shall be English.  The
Parties hereby expressly exclude Section 45 of the English Arbitration Act
1996.  Any award shall be final and
binding upon the Parties, and shall be the sole and exclusive remedy between
the Parties regarding any claims, counterclaims, issues, or accountings
presented to the arbitral tribunal. 
Judgment upon any award may be entered in any court of competent
jurisdiction.  The Parties hereby waive
any rights of appeal to any court of competent jurisdiction (including but not
limited to the courts of Peru and England) to the fullest extent permitted by
law with respect to any award made.  This
Agreement and the rights and obligations of the Parties shall remain in full
force and effect pending the award in any arbitration proceeding hereunder.  Any monetary award shall be made and payable
in Dollars, and the arbitral tribunal shall be authorised to grant pre-award
and post-award interest at commercial rates. This Agreement to arbitrate shall
be binding upon the successors, assigns and any trustee or receiver of each
Party.

42.                       WAIVER OF
SOVEREIGN IMMUNITY

To the extent that the
Borrower may in any jurisdiction claim for itself or its assets immunity from
suit, execution, attachment (whether before the issue of an award or judgment
or otherwise) or other legal process and to the extent that in any such
jurisdiction there may be attributed to itself or its assets or revenues such
immunity (whether or not claimed), the Borrower hereby irrevocably agrees not
to claim and hereby irrevocably waives such immunity to the full extent
permitted by the laws of such jurisdiction.

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date stated above.

 112
 

 

Schedule 1 

THE ORIGINAL FACILITY LENDERS AND COMMITMENTS

	
   

  	
   

  	
  COMMITMENT

  (US$)

  	
   

  
	
  NAME OF ORIGINAL FACILITY LENDER

  	
   

  	
  Tranche A

  Commitment

  	
   

  	
  Tranche B

  Commitment

  	
   

  
	
  Citibank N.A.

  	
   

  	
  16,666,666.66

  	
   

  	
  33,333,333.33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Royal Bank
  of Scotland plc

  	
   

  	
  16,666,666.68

  	
   

  	
  33,333,333.34

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Bank of Nova Scotia

  	
   

  	
  16,666,666.66

  	
   

  	
  33,333,333.33

  	
   

  

 

 113
 

 

Schedule 2 

CONDITIONS PRECEDENT

Part I 

First Advance

1.                             CORPORATE DOCUMENTS

1.1                       A
copy certified as true, complete and up–to–date of the constitutional documents
of each Obligor and GFL Mining Services Limited.

1.2                       A certified
copy of a resolution of the board of directors of each Obligor in each case:

(a)                        approving
the terms of, and the transactions contemplated by, the Financing Documents to
which it is a party and resolving that it execute the Financing Documents to
which it is a party;

(b)                       authorising
a specified person or persons to execute the Financing Documents to which it is
a party on its behalf; and

(c)                        authorising
a specified person or persons, on its behalf, to sign and/or despatch all
documents and notices to be signed and/or despatched by it under or in
connection with the Financing Documents to which it is a party.

1.3                       Incumbency
certificates or specimen signatures of each Person authorised by the resolution
referred to in item 1.2(b) above.

1.4                       A
certificate of an authorised signatory of the relevant Obligor certifying that
each copy document relating to it specified in this Schedule 2 is correct,
complete and in full force and effect as at a date no earlier than the date of
this Agreement.

2.                             LEGAL OPINIONS

2.1                       A legal
opinion of Milbank, Tweed, Hadley & McCloy LLP, legal advisers to the Facility
Lenders in England.

2.2                       A legal
opinion of Miranda & Amado Abogados, legal advisers to the Facility Lenders
in Peru.

2.3                       A legal
opinion of Payet Rey Cauvi, legal advisers to the Borrower in Peru.

2.4                       A legal
opinion of Edward Nathan, legal advisers to the Guarantor in South Africa.

2.5                       A legal
opinion of Maples & Calder, legal advisers to the Shareholder in the
British Virgin Islands.

 114
 

 

3.                             OTHER DOCUMENTS AND
EVIDENCE

3.1                       A
confirmation by the Borrower that all fees, costs and expenses required to be paid
by and then due from the Borrower under this Agreement or the Commitment Letter
respectively have been paid or will be paid from the proceeds of the first
Advance.

3.2                       Evidence
that initial funding of at least US$55,000,000 of the Base Equity Amount has
been made.

3.3                       A
certificate of the Borrower (signed by a director) certifying that no Default
has occurred and is continuing.

3.4                       A copy of
the Project Budget.

4.                             TRANSACTION DOCUMENTS

4.1                       A duly
executed original of each of the following Financing Documents:

(a)                        this Agreement;

(b)                       the Secured Hedging Agreements (if any);

(c)                        the Accounts Management Agreement;

(d)                       each Fee Letter;

(e)                        any Accession Deed entered into prior to
Financial Close;

(f)                          the Sponsor Support Agreement; and

(g)                       any other document designated prior to Financial
Close as a Financing Document in writing by the Borrower and the Facility
Agent.

4.2                       A duly
executed original of each of the following Security Documents:

(a)                        the Master Security and Intercreditor Deed;

(b)                       the Direct Agreement;

(c)                        the mining
mortgages (hipoteca minera), the mining pledge (garantía mobiliaria sobre activos) (equipment, machinery and
movable assets of the Project), the floating mining pledge (garantía mobiliaria sobre inventario) (minerals and
Concentrates in inventory), each in the form annexed to the Master Security and
Intercreditor Deed;

(d)                       the Share
Pledge (garantía mobiliaria sobre acciones) in
relation to the Shares held by the Shareholder in the form annexed to the
Master Security and Intercreditor Deed;

 115
 

 

(e)                        the
conditional assignments of rights and of contracts (cesión
condicionada de derechos y de posición contractual) in the form
annexed to the Master Security and Intercreditor Deed;

(f)                          the
pledge of Onshore Accounts (contrato de garantía
mobiliaria sobre saldos de cuentas) in the form annexed to the
Master Security and Intercreditor Deed;

(g)                       the civil
mortgage (hipoteca civil) over
real property located within the Material Concessions granted pursuant to
the  Master Security and Intercreditor
Deed; and

(h)                       any other
agreement or document, filings, notices, arrangements or the like which are
required to establish and maintain the security interest in the Onshore
Security and the Offshore Security for the benefit of the Secured Parties.

4.3                       Certified
copies of each Initial Project Document (together with all amendments thereto,
if any) duly executed by all parties thereto, in form and substance
satisfactory to the Facility Agent.

4.4                       Evidence
that any applicable taxes, stamp duties, material fees, notarial fees or other
registration fees have been paid with respect to each Financing Document which
is required to be entered into as a condition precedent to Financial Close.

4.5                       Evidence
(in the form and substance satisfactory to the Facility Agent) that all duly
completed forms required in connection with the enforceability of and/or the
creation and/or perfection of first-ranking priority Security under the
Security Documents under English and Peruvian law, as applicable, have been
filed with the relevant  authorities or
registries and all other acts required for such authorities or registries to
effect such filing have been carried out, including but not limited to payment
of all registration, stamp or similar tax or fees paid in respect of each
Security Document which is required to be entered into as a condition precedent
to Financial Close (if any).

4.6                       Evidence
all notices and acknowledgements required to have been given or obtained under
the terms of the Security Documents required to be entered into as a condition
precedent to Financial Close have been issued and received by the relevant
parties.

5.                             REPORTS AND PLANS

5.1                       The Ore
Reserve Report;

5.2                       A report by
the ITC confirming that the Ore Reserve Report demonstrates that the Deposit
contains ore reserves that at the Financial Completion Date are adequate and
sufficient to operate the Project as per the Base Case (which may be included
within the ITC Report referred to in paragraph 5.7 below);

5.3                       The Model
Auditor’s Report as addressed to the Facility Lenders;

5.4                       The
Feasibility Study;

 116
 

 

5.5                       The Initial
Mine Plan;

5.6                       The Base
Case;

5.7                       The ITC
Report, in form and substance satisfactory to the Facility Agent; and

5.8                       confirmation
from the ITC that it has reviewed the technical information listed in Schedule 15
(Document Review List).

6.                             FINANCIAL INFORMATION

6.1                       A copy,
certified by a duly authorised officer of the Borrower or the Guarantor,
respectively, as being true, complete and accurate, of the Original Financial
Statements of each of the Borrower and the Guarantor.

6.2                       A copy,
certified by a duly authorised officer of the Borrower or the Guarantor,
respectively, as giving a true and fair view of the respective entity’s
financial condition as at the end of the period to which each Financial Statement
relates and of the result of its operations during such period, of the most
recent publicly available, unaudited Financial Statements (prepared in
accordance to GAAP) of each of the Borrower and the Guarantor.

7.                             CONSENTS

7.1                       A copy of
each of the Consents listed in Part 1 of Schedule 9 (Consents).

7.2                       A copy of
each of the applications for Consents listed in Part 2 of Schedule 9 (Consents).

7.3                       Evidence
(which may be in the form of a legal opinion of Peruvian counsel to the
Borrower) that:

(a)                        the Consents
listed in Part 1 of Schedule 9 (Consents)
include all Consents which are required to be in effect at Financial Close
(including Consents required for the performance by the Borrower of its
obligations under the Transaction Documents); and

(b)                       each such
Consent is in full force and effect.

8.                             ENVIRONMENT

8.1                       A copy
certified by the Borrower, to be a true, correct and complete copy, of the
Environmental Management Plan.

8.2                       Evidence
that all Environmental Permits then required to be obtained for the Project
have been obtained.

8.3                       A
certificate from the Borrower certifying that all Environmental Permits
referred to in Clause 8.2 are in full force and effect and it has not reason to
believe that any such Environmental Permit could reasonably be expected to be
revoked or that any other

 117
 

 

Environmental Permit for the Project not then required
to be obtained but for which an application has been or will be made will not
be granted in a timely manner.

9.                             INSURANCE

9.1                       A letter of
undertaking from each insurance broker substantially in the form set out in
Annex 1 of Schedule 8 (Insurances).

10.                       ACCOUNTS

10.1                 Confirmation from
the Account Bank that the Accounts have been opened.

10.2                 Evidence that all
existing accounts of the Borrower (other than any JV Accounts) have been closed
and the balances transferred to the Offshore Disbursement Account or Onshore
Disbursement Account.

11.                       PROCESS AGENT

Letters of acceptance of
appointments from agents for service of process (if any) under each of the
Financing Documents required to be entered into as a condition precedent to
Financial Close on behalf of each Obligor for the service of process on such
parties in England.

12.                       MATERIAL ADVERSE
CHANGE

The Majority Facility
Lenders have not determined (acting reasonably) that an event has occurred that
individually or when taken into consideration with any other facts or
circumstances then in existence has had or is likely to have a Material Adverse
Effect.

13.                       AUDITORS

13.1                 Evidence that (a)
the Borrower has appointed internationally recognised auditors acceptable to
the Facility Lenders to act as auditors of the Borrower in accordance with
Clause 21.12 (Accounting
Systems) and (b) the auditors have accepted such appointment.

13.2                 A copy, certified
by a duly authorised officer of the Borrower to be a true, correct and complete
copy, of a letter from the Borrower authorising the auditor(s) to communicate
directly with the Facility Agent with regard to the accounts and operations of
the Borrower with a copy of any such communication being provided to the
Borrower by the auditors.

14.                       BASE CASE

A CD-Rom containing a
copy of the Base Case which demonstrates that the minimum forward-looking
average DSCR for each consecutive annual period from such date up to the Final
Maturity Date is at least 1.50:1 calculated on the Base Case Assumptions
(taking into account any scheduled repayment of the Facility to be made in
accordance with this Agreement prior to the commencement of the relevant
Calculation Period).

 118
 

 

Part II 

Second Advance

1.                             Certificate
from the Insurance Adviser that all Insurances and Reinsurances required to be
in place by Financial Close pursuant to the Financing Documents have been taken
out with financially sound and reputable insurers (or reinsurers, as
applicable) and are in full force and effect.

2.                             The
Insurance Adviser’s Report as addressed to the Facility Lenders.

 119
 

 

Schedule 3 

DRAWDOWN REQUEST

From:                                              Gold
Fields La Cima S.A.

as Borrower

To:                                                        The
Royal Bank of Scotland plc

                                                                          as
Facility Agent

Dated:

Dear Sirs

Gold Fields La Cima S.A. –
US$150,000,000 Facility Agreement

dated [                      ]
(the “Agreement”)

1.                             We
refer to the Agreement.  This is a
Drawdown Request. Terms defined in the Agreement have the same meaning in this
Drawdown Request unless given a different meaning in this Drawdown Request.

2.                             We
wish to borrow an Advance on the following terms:

	
  Proposed Drawdown Date:

  	
  [•]                              (or,
  if that is not a Business Day, the next Business Day)

  
	
  Currency of Advance:

  	
  US$

  
	
  Amount:

  	
  [•]                              or,
  if less, the Available Facility

  
	
  Interest Period:

  	
  [•]                              

  

 

3.                             We
confirm that each condition specified in Clause 4.3 (Conditions Precedent to all Advances) of the Facility
Agreement is satisfied on the date of this Drawdown Request.

4.                             The
proceeds of this Advance should be credited to the Onshore Dollar Receipts
Account.

5.                             This
Drawdown Request is irrevocable.

	
  Yours faithfully

  
	
   

  
	
   

  	
   

  
	
  Authorised
  Signatory

  
	
  acting for and
  on behalf of

  
	
  GOLD
  FIELDS LA CIMA S.A.

  

 

 120
 

 

Schedule 4 

FORM OF NOTE

PROMISSORY NOTE

	
  PLACE OF ISSUE:

  	
   

  	
   

  	
  DATE OF ISSUE:

  	
   

  

 

Value: US$                     

Issuer: GOLD FIELDS LA
CIMA S.A., a company incorporated under the laws of Peru registered at Entry
A00001 of File 11606015 of the Companies Registry of Lima, with taxpayer
identification number 20507028915 and registered office at Av. Victor Andres
Belaunde 147, Via Principal 155, Oficina 1401, San Isidro, Lima, Peru.

This Note is issued in
accordance with, and is subject in all respects to, Section 6 of the Facility
Agreement entered into on (                       )
between GOLD FIELDS LA CIMA S.A., and Citigroup Global Markets Inc. as Mandated
Lead Arranger, the Royal Bank of Scotland PLC. as Mandated Lead Arranger,
Facility Lender and Facility Agent, The Bank of Nova Scotia as Mandated Lead
Arranger and Facility Lender, The Bank of Nova Scotia Trust Company of New York
as Offshore Security Trustee, Scotiabank Peru S.A.A. as Onshore Security Agent,
and Citbank N.A. as Facility Lender.

For value received, GOLD
FIELDS LA CIMA S.A. unconditionally and irrevocably undertakes to pay to or to
the order of [name of Facility Agent] the sum
of US$ [amount to be completed] on [date of maturity to be completed].  The amount owed under this note shall accrue
compensatory and default interest in accordance with the Facility Agreement
referred to above.

Payment of the amount
contained in this Note must be made exclusively in US$ to the bank account at [indicate Bank and account N°                    ].

The holder of this Note
may obtain payment without protest of non–payment.

This Note is governed by
and shall be enforceable in accordance with Peruvian law.

Signature of Authorized
Representative of Issuer:

[NAME] [IDENTITY
DOCUMENT]

for and on behalf of GOLD
FIELDS LA CIMA S.A.

 121

 

Schedule 5

Form of Transfer Certificate

To:                              The Royal Bank of Scotland plc

as Facility Agent

From:                  [The
Existing Facility Lender] (the “Existing
Facility Lender”) and [The New
Facility Lender] (the “New
Facility Lender”)

Dated:

Gold Fields La Cima S.A. – US$150,000,000 Facility
Agreement

dated [                   ] (the “Agreement”)

1.                             We refer to the Agreement.  This is a Transfer Certificate.  Terms defined in the Agreement have the same
meaning in this Transfer Certificate unless given a different meaning in this
Transfer Certificate.

2.                             We refer to Clause 26.5 (Procedure for
transfer):

(a)                        The Existing Facility Lender and the New
Facility Lender agree to the Existing Facility Lender transferring to the New
Facility Lender by novation all or part of the Existing Facility Lender’s
Commitment, rights and obligations referred to in the Schedule in accordance
with Clause 26.5 (Procedure
for transfer).

(b)                       The proposed Transfer Date is
[               ].

(c)                        The Facility Office and address, fax number
and attention details for notices of the New Facility Lender for the purposes
of Clause 32.2 (Addresses)
are set out in the Schedule.

3.                             The New Facility Lender expressly
acknowledges the limitations on the Existing Facility Lender’s obligations set
out in Clause 26.4 (Limitation of responsibility of Existing Facility Lenders).

4.                             This Transfer Certificate may be executed in
any number of counterparts and this has the same effect as if the signatures on
the counterparts were on a single copy of this Transfer Certificate.

5.                             This Transfer Certificate is governed by and
construed in accordance with English law.

 122
 

 

THE SCHEDULE

Commitment/rights and obligations to be transferred

[insert relevant details]

[Facility Office address, fax number and
attention details for notices and account details for payments]

	
  [Existing Facility Lender]

  	
  [New Facility Lender]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

This Transfer Certificate is
accepted by the Facility Agent and the Transfer Date is confirmed as
[           ].

	
  The Royal Bank of Scotland plc

  
	
   

  
	
  By:

  

 

 123
 

 

Schedule 6

FORM OF
NEW FACILITY LENDER ACCESSION DEED

To:                              The Royal Bank of Scotland plc

as Facility Agent

From:                                     [Finance
Party]

Date:

Dear
Sirs

Gold Fields La Cima S.A. – US$150,000,000 Facility
Agreement

dated [             ] (the “Agreement”)

1.                             We refer to the Agreement.  This is an Accession Deed.  Terms defined in the Agreement have the same
meaning in this Accession Deed unless given a different meaning in this
Accession Deed.

2.                             [Name
of new Party] agrees to
become a [insert capacity in which acceding] and to be bound by the terms of
the Agreement as [insert
capacity in which acceding]
and the Master Security and Intercreditor Deed and any other instruments and
documents furnished pursuant thereto.  [Name of new Party] is a company duly incorporated under the
laws of [name of relevant
jurisdiction].

3.                             [Name
of new Party] administrative
details are as follows:

Address:

Fax No:

Attention:

4.                             This Accession Deed is governed by English
law.

	
    [Borrower]

  	
  [Name of new Party]

  

 

 124
 

 

Schedule 7

Form of Compliance Certificate

To:                                                          The Royal Bank of Scotland plc

as Facility Agent

From:                                              Gold Fields La Cima S.A.

as Borrower

Dated:

Dear
Sirs

Gold Fields La Cima S.A. –
US$150,000,000 Facility Agreement

dated [           ] (the “Agreement”)

1.                             We refer to the Agreement.  This is a Compliance Certificate.  Terms defined in the Agreement have the same
meaning when used in this Compliance Certificate unless given a different
meaning in this Compliance Certificate.

2.                             We confirm that:  [Insert details of covenants to be certified]

3.             [We confirm that no Default is
continuing.] *

	
  Signed:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Director

  	
  Director

  
	
   

  	
  Gold Fields La Cima S.A.

  	
  Gold Fields La Cima S.A.

  

 

[insert applicable certification language]

	
  

  	
   

  
	
  for and on
  behalf of

  
	
  [name
  of auditors of the Borrower]

  

 

*                    If this statement
cannot be made, the certificate should identify any Default that is continuing
and the steps, if any, being taken to remedy it.

 125
 

 

Schedule 8

Insurances

(A)                   Insurance by the Borrower:  The
Borrower shall effect and maintain or cause to be effected and maintained in
full force and effect at all times on and after the Closing Date (unless
otherwise specified below) and continuing throughout the term of this Agreement
(unless otherwise specified below) insurance policies with insurance companies
(i) having an A.M. Best Insurance Reports rating of “A-” or better and a
financial size category of “VIII” or higher, or (ii) having a Standard &
Poor’s financial strength rating of “A-” or higher, or (iii) otherwise
acceptable to the Facility Agent.  Such
insurance policies shall contain limits and coverage provisions sufficient to
satisfy the express, insurance-related requirements set forth in each of the
Project Documents, but in no event less than the limits and coverage provisions
set forth below.  If an insurance company
cannot meet the requirements of the above subsections (i) or (ii), the Facility
Agent may require that all or part of the risk be reinsured (in which case the
minimum requirements for any reinsurance policies, including limits and
coverage provisions, shall be equivalent to the minimum requirements for
insurance policies pursuant to this Schedule 8) and that an assignment of
reinsurance be put in effect that allows the Borrower or the Finance Parties
direct access to any reinsurers for direct payment of premiums and losses;
provided that, the provisions of any such assignment of reinsurance, shall be
subject to the approval of the Facility Agent (which approval shall not be
unreasonably withheld) and any such reinsurers shall also be subject to the
same financial approval standards as outlined above in subsections (i) and
(ii).

(1)                       General Liability Insurance: Liability insurance on an occurrence basis
against claims filed anywhere in the world and occurring anywhere in the world
for the Borrower’s liability arising out of claims for personal injury
(including bodily injury and death) and property damage.  Such insurance shall provide coverage for
completed operations, contractual liability, independent contractors and sudden
and accidental pollution liability (which may be written separately on a claims
made basis) with a $25,000,000 minimum limit per occurrence for combined bodily
injury and property damage.  A maximum
deductible or self-insured retention of $100,000 per occurrence shall be
allowed.

(2)                       Automobile Liability Insurance: Automobile liability insurance for the
Borrower’s liability arising out of claims for bodily injury and property
damage covering all owned (if any), leased, non-owned and hired vehicles of the
Borrower, including loading and unloading, with a $10,000,000 minimum limit per
accident for combined bodily injury and property damage.  A maximum deductible or self-insured
retention of $100,000 per occurrence shall be allowed.

(3)                       Aircraft Liability Insurance: Aircraft liability insurance if the
Borrower uses an aircraft (fixed wing or helicopter) that is owned, operated or
chartered by the Borrower, for liability arising out of the operation of such
aircraft.  The insurance shall be provided
for a combined single limit not less than $15,000,000 each occurrence and such
limit shall

 126
 

 

apply to bodily injury (including passengers)
and property damage liability.  In the
event the Borrower charters aircraft, the foregoing insurance and evidence of
insurance may be furnished by the owner of the aircraft with the Borrower
included as additional insured.  In the
event that a chartered aircraft hull is insured, such insurance shall provide
for an insurer’s waiver of subrogation in favor of Borrower.

(4)                       Construction All Risk Insurance: Property damage insurance on an “all risk”
basis covering the insurable assets of the Project with limits and coverage
during the construction period as follows:

·                                          Limits - Contract works Sum Insured for the
full Contract Value - $277,000,000

·                                          Inland Transit - $10,000,000

·                                          Removal Of Debris - 20% of loss maximum
$5,000,000

·                                          Expediting Expenses - 20% of loss maximum
$5,000,000

·                                          Professional Fees - $1,000,000

·                                          Plans and Documents - $500,000

·                                          Strike, riot and civil commotion -
$10,000,000

·                                          Cost Escalation - 20% of contract value

·                                          50/50 Marine Contribution Clause

(5)                       Marine Cargo Insurance: 
Marine cargo insurance on a “warehouse to warehouse” basis, including
land, air and marine transit, insuring “all risks” of loss or damage on a
replacement cost basis, based on a maximum any one shipment sum insured of
$10,000,000.

(6)                       Operational Property Damage Insurance:  On
or before the Financial Completion Date, property damage insurance on an “all
risk” basis, covering all insurable assets of the  Project, insuring the Borrower and Finance
Parties, as their interests may appear, including coverage against damage or
loss caused by earth movement (including but not limited to earthquake,
sabotage, landslide, subsidence and volcanic eruption), flood, windstorm, boiler
and machinery accidents, strike, riot, civil commotion and “terrorism”.   For purposes of this clause “terrorism”
shall be defined as an act, including but not limited to the use of force or
violence and/or the threat thereof, of any person or group(s) of persons,
whether acting alone or on behalf of or in connection with any organization(s)
or governments(s), committed for political, religious, ideological or similar
purposes including the intention to influence any government and/or to put the
public, or any section of the public, in fear. 
Terrorism may be insured under a separate policy.

(a)                        Property Insured:  The
property damage insurance shall provide coverage for (i) all real and personal
property constituting a part of the Project in respect of which the
Borrower  has an insurable interest, (ii)
the cost of recreating plans, drawings

 127
 

 

or any other documents or computer system
records, (iii) electronic equipment and (iv) foundations and other property
below the surface of the ground.

(b)                       Additional Coverages:  The
property damage policy shall insure (i) when 
needed, insured property prior to its being moved to or from the Site
and while located away from the Site, including ocean marine and air transit
coverage (if applicable) with limits sufficient to insure the full replacement
value of the property or equipment (other than mobile equipment), (ii)
reasonable attorney’s fees, engineering and other consulting costs, and permit
fees directly incurred in order to repair or replace damaged insured property,
(iii) increased cost of construction and loss to undamaged property as the
result of enforcement of building laws or ordinances, (iv) debris removal (v)
the cost of preventive measures to reduce or prevent a loss (sue & labor)
and (vi) expediting expenses (defined as extraordinary expenses incurred after
an insured loss to make temporary repairs and expedite the permanent repair of
the damaged property in excess of the business interruption even if such
expense does not reduce the business interruption loss).

(c)                        Special Clauses:  The
property damage policy shall include (i) a 72 hour clause for flood, windstorm
and earthquakes, (ii) an unintentional errors and omissions clause, (iii) a
requirement that the insurer pay losses within 60 days after receipt of an
acceptable proof of loss or partial proof of loss, (iv) an other insurance
clause making this insurance primary over any other insurance (excluding the
extended maintenance coverage provided by the construction all risk policy) and
(v) a clause requiring payment in U.S. dollars.

(d)                       Sum Insured:  The property damage policy
shall (i) value property damage  losses
at their repair or replacement cost (excluding mobile equipment which may
insured on the basis of the value of such equipment immediately anterior to the
loss or damage), without deduction for physical depreciation or obsolescence,
including custom duties, taxes and fees and (ii) insure the Project in an
amount not less than the “Full Insurable Value” (for purposes of this
Agreement, “Full Insurable Values” shall mean the full replacement value of the
Project’s insurable assets, including any improvements, equipment, spare parts
and supplies, without deduction for physical depreciation and/or obsolescence)
or such lesser amount as agreed to by the Facility Agent after consultation
with the Insurance Adviser (each acting reasonably) based in part on the
results of an acceptable maximum foreseeable loss report commissioned by the
Borrower.  For those perils and coverages
required to be insured by this Section (6), sub-limits are allowed only for the
following coverages and subject to the following minimum limits.

·                                          Professional fees - $1,000,000

·                                          Undamaged property & building laws -
$10,000,000

·                                          Debris removal – greater of 25% of the loss
or $10,000,000

·                                          Expediting expenses - $5,000,000

 128
 

 

·                                          Extra expenses - $5,000,000

·                                          Property in transit - $10,000,000

·                                          Sue & Labor - $2,000,000

·                                          Damage underground - $100,000,000

·                                          Terrorism - $25,000,000

The perils of flood, earthquake and terrorism
for damage over-ground may be insured in amounts less than the Full Insurable
Value as agreed to by the Facility Agent after consultation with the Insurance
Adviser (each acting reasonably) based in part on an acceptable maximum
foreseeable loss report, commissioned by the Borrower that addresses these
perils.

(e)                        Deductibles:  The property damage policy may
have deductibles of not greater than $3,000,000 per occurrence subject to
higher deductibles for the perils of earthquake and terrorism, as agreed to by
the Facility Agent.

(f)                          Prohibited Exclusions:  The
property damage policy shall not contain any (i) coinsurance provision, (ii)
exclusion for loss or damage resulting from freezing, mechanical breakdown,
(iii) exclusion for property covered under any guarantee or warranty arising
out of an insured peril or (iv) exclusion for resultant damage caused by
ordinary wear and tear, gradual deterioration, normal subsidence, settling
cracking, expansion or contraction, faulty workmanship, design or materials.

(7)                       Business Interruption Insurance:  On
or prior to the Financial Completion Date, business interruption insurance
insuring the Borrower and Finance Parties, as their interests may appear,
covering loss of income sufficient to insure the Borrower’s continuing normal
operating expenses including payroll and debt service for a period not less
than 18 months (or such lesser amounts as agreed to by the Facility Agent after
consultation with the Insurance Adviser (each acting reasonably) and based in
part on the results of an acceptable maximum foreseeable loss report
commissioned by the Borrower) arising from any loss required to be insured by
the operational property damage insurance section (5) above.

Such insurance shall include coverage for (a)
loss of utility services, (b) damage to third party transportation facilities
including but not limited to roads, tracks and bridges providing access to and
from the Site or to the port facilities, (c) port facilities including port
blockage, in an amount not less than 6 months of continuing normal operating
expenses including payroll and debt services (or such lesser amounts as may be
agreed to by the Facility Agent after consultation with the Insurance Adviser
(each acting reasonably), based in part on the results of a maximum foreseeable
loss study commissioned by the Borrower).

 129
 

 

Such insurance shall include a clause
allowing interim payments on account pending finalization of the claim payment
and shall not contain any coinsurance clause or include a waiver of such
clause.

Such insurance shall be subject to a maximum
deductible of 30 days per occurrence.

(B)       Amendment of Requirements:

(1)        Amendment by the Facility Agent:

(a)                      Notwithstanding any other provision of this
Schedule 8, the Facility Agent may, by at least thirty (30) days notice in
writing to the Borrower, amend the minimum insurance requirements set out in
this Schedule 8, if, in the Facility Agent’s opinion (acting reasonably and
following consultation with the Insurance Adviser), the failure to amend such
minimum requirements (and the relevant insurance or reinsurance or related
provisions (including the limits or deductibles thereof)) would pose a material
risk to the Project and provided always that the relevant amendments to the
insurance or reinsurance or related provisions (including the limits or
deductibles thereof) proposed by the Facility Agent are available on
commercially reasonable terms in the commercial insurance market and the
Borrower (acting reasonably and following consultation with its insurance adviser)
does not notify the Facility Agent in writing within thirty (30) days of such
notice from the Facility Agent that it disagrees with the Facility Agent.

(b)                       In the event that the Facility Agent and the
Borrower disagree as to the matters set out in paragraph (a), above, and fail
to reach agreement on such matters within twenty (20) days of such
disagreement, they shall jointly refer the matter to an independent insurance
expert (whose identity and terms of reference shall be agreed upon by the
Borrower and the Facilty Agent or in the absence of such agreement, specified
by the Chairman of the Association of British Insurers) who shall make a
determination within thirty (30) days as to the matters set out in paragraph
(a).  In making such determination, the
independent insurance expert shall act as an expert and not as an
arbitrator.  The determination by the
independent expert shall be binding upon the Borrower, the Facility Agent and
the other Finance Parties.  In the event
that the independent expert makes a determination in favour of the Facility
Agent, the Borrower shall promptly procure such insurance or reinsurance or
related provisions, as the case may be.

(2)        Amendment Due To Commercial
Unfeasibility:

(a)                        Notwithstanding any other provision of this Schedule
8, the Borrower shall not be required to maintain any insurance or reinsurance
or related provisions (including the limits or deductibles thereof) hereby
required to be maintained, to the extent that the Borrower notifies the
Facility Agent in writing, at least ninety (90) days prior to the renewal of
any of the relevant policies, that in the Borrower’s opinion (acting reasonably
and following consultation with its insurance adviser) any such insurance or
reinsurance or related provisions are not available on commercially

 130
 

 

reasonable terms in the commercial insurance
market and the Facility Agent (acting reasonably and following consultation
with the Insurance Adviser) does not notify the Borrower in writing within
thirty (30) days of such notice from the Borrower that it disagrees with the
Borrower.

(b)                       In the event that the Facility Agent and the
Borrower disagree as to whether the relevant insurance or reinsurance or
related provisions (including the limits or deductibles thereof) are available
on commercially reasonable terms in the commercial insurance market and fail to
reach agreement on such matter within twenty (20) days of such disagreement,
they shall jointly refer the matter to an independent insurance expert (whose
identity and terms of reference shall be agreed upon by the Borrower and the
Facility Agent or in the absence of such agreement, specified by the Chairman
of the Association of British Insurers) who shall make a determination within
thirty (30) days as to the availability on commercially reasonable terms in the
commercial insurance market of the relevant insurance or reinsurance or related
provisions.  In making such
determination, the independent insurance expert shall act as an expert and not
as an arbitrator.  The determination by
the independent expert shall be binding upon the Borrower, the Facility Agent
and the other Finance Parties.  In the
event that the independent expert determines that the relevant insurance or
reinsurance or related provisions are available on commercially reasonable
terms in the commercial insurance market, or if the relevant insurance or
reinsurance or related provisions that were not previously available on
commercially reasonable terms in the commercial insurance market subsequently
become available on commercially reasonable terms in the commercial insurance
market, the Borrower shall promptly procure such insurance or reinsurance or
related provisions, as the case may be.

(c)                        In the event that any insurance, reinsurance
or related provisions  (including the
limits or deductibles thereof) are not required to be maintained in accordance
with paragraphs (a) and (b), above, the Borrower and the Facility Agent (in
consultation with their respective insurance advisers) shall confer at least
annually and in any event at least ninety (90) days prior to renewal of the
relevant policies to assess whether cover has become available on commercially
reasonable terms in the commercial insurance market and the Borrower shall keep
the Facility Agent informed of the availability of such cover.

(d)                       Without prejudice to the rights of the
Borrower, the Facility Agent or the independent insurance expert to use any
other determination, for the purposes of Section B(1) and this Section B(2),
insurance, reinsurance or related provisions shall be determined as “not
available on commercially reasonable terms in the commercial insurance market”
if such insurance, reinsurance or related provisions are obtainable only at
excessive costs which are not justified in terms of the risk to be insured and
are generally not being carried by or applicable to projects or operations
similar to the Project because of such excessive costs.

 131

 

(C)       Borrower Conditions and Requirements:

(1)                       Loss
Notification:  The Borrower shall
promptly notify the Facility Agent of any single loss or event reasonably
likely to give rise to a claim against an insurer for an amount in excess of
$2,000,000 covered by any insurance policy after application of the deductible
in the policy.

(2)                       Loss
Adjustment and Settlement:  A loss
under the insurance policies providing operational property damage or business
interruption, shall be adjusted with the insurance companies, including the
filing in a timely manner of appropriate proceedings, by the Borrower, who
shall consult in good faith with the Facility Agent if such loss is in excess
of $2,000,000 after application of the deductible in the policy.  In addition the Borrower may in its
reasonable judgment consent to the settlement of any loss, provided that in the
event that the amount of the loss exceeds $2,000,000, after application of the
deductible in the policy, the terms of such settlement is concurred with by the
Facility Agent.

(3)                       Compliance
With Policy Requirements:  The
Borrower shall not intentionally violate or permit to be violated any of the
material conditions, provisions or requirements of any insurance policy
required by this Schedule 8, and without prejudice to Section B(2) above, the
Borrower shall use commercially reasonable efforts to perform, satisfy and
comply with, or cause to be performed, satisfied and complied with, all
conditions, provisions and requirements of all insurance policies.

(4)                       Waiver
of Subrogation:  The Borrower hereby
waives any and every claim for recovery from the Finance Parties for any and
all loss or damage covered by any of the insurance policies to be maintained
under this Schedule 8 to the extent that such loss or damage is recovered under
any such policy.  If the foregoing waiver
will preclude the assignment of any such claim to the extent of such recovery,
by subrogation (or otherwise), to an insurance company (or other person), the Borrower
shall give written notice of the terms of such waiver to each insurance company
which has issued, or which may issue in the future, any such policy of
insurance (if such notice is required by the insurance policy) and shall
endeavor to cause each such insurance policy to be properly endorsed by the
issuer thereof to, or to otherwise contain one or more provisions that, prevent
the invalidation of the insurance coverage provided thereby by reason of such
waiver.

(5)                       Evidence
of Insurance:  On the date of
Financial Close and on an annual basis prior to each policy anniversary, the
Borrower shall furnish the Facility Agent with (1) evidence of insurance
evidencing all of the insurance required by the provisions of this Schedule
8.  Such evidence of insurance shall be
executed by each insurer or by an authorized representative of each insurer
where it is not practical for such insurer to execute the evidence of insurance
itself.  Such evidence of insurance shall
identify the insurer, the type of insurance, the insurance limits and the
policy term and shall specifically contain the special provisions enumerated
for such insurance required by this Schedule 8. 
Upon request, the Borrower will promptly furnish the Facility Agent with
copies of all

 132
 

 

insurance policies, reinsurance policies, binders and cover notes or
other evidence of such insurance relating to the insurance required to be
maintained by the Borrower.

(6)                       Reports:  At least 10 Business Days prior to the
insurance renewal or anniversary, the Borrower shall furnish the Facility Agent
with a report of a broker (in the form of Annex A (Insurance Broker’s Letter of
Undertaking) to this Schedule 8), signed by an officer of the broker.

In addition, at least 10 days prior to the Financial Completion Date,
the Insurance Adviser shall furnish the Facility Agent with a report providing
the opinion of the Insurance Adviser regarding the Borrower’s compliance with
the terms of this Schedule 8.

The Borrower will advise the Facility Agent in writing promptly of (1)
any failure that it is reasonably aware of to maintain insurance in compliance
with the minimum insurance required by this Schedule 8 and (2) any default in
the payment of any premium and of any other act or omission on the part of the
Borrower that it is reasonably aware of which may invalidate or render
unenforceable, in whole or in part, any insurance being maintained by the
Borrower pursuant to this Schedule 8.

(D)       Insurance Policy Conditions and
Requirements

(1)                       Loss
Survey:  All policies of insurance
required to be maintained pursuant to this Schedule 8, wherein more than one
insurer provides the coverage on any single policy, shall have clause (or a
separate agreement among the insurers) wherein all insurers have agreed upon
the employment of a single firm to survey and investigate all losses on behalf
of the insurers.  Where the insurer(s) on
any single policy do not meet the financial rating requirements specified in
this Schedule 8, the provisions of this clause shall also apply to all
reinsurers where the reinsurers and insurers will have agreed upon a firm with
authority to survey and investigate losses on behalf of all insurers and
reinsurers.

(2)                       Policy
Cancellation and Change:  All
policies of insurance or reinsurance required to be maintained pursuant to this
Schedule 8 shall be endorsed so that if at any time they are canceled (by any
party including the insured) so as to affect the interests of the Finance
Parties, such cancellation shall not be effective as to the Finance Parties for
60 days except for non-payment of premium which shall be for 10 days, after
notification to the Facility Agent of written notice from such insurer of such
cancellation or reduction.  Where it is
impossible for the Borrower to obtain agreement from insurers for such notice,
an agreement with its insurance broker to provide the notice will be
acceptable.

(3)                       Miscellaneous
Policy Provisions:  The portions of
the insurance policies providing the required operational property damage or
business interruption insurance shall (i) not include any annual or term
aggregate limits of liability except for the perils of flood, earth movement
and terrorism, (ii) have any aggregate limits of liability apply separately
with respect to the Project (iii) include the Finance Parties as additional
insureds as their interest may appear, (iv) include a clause requiring the
insurer to make final payment on

 133
 

 

any claim within 60 days after the submission of proof of loss and its
acceptance by the insurer and (v) shall be denominated and losses payable in
Dollars.

(4)                       Separation
of Interests:  All policies of
insurance and reinsurance: (i) shall specify that the Borrower (or, in the case
of any policies of reinsurance, the insurer) and the Finance Parties comprise
more than one insured party each operating as a separate and distinct entity
and cover shall apply in the same manner and to the same extent as if
individual policies had been issued to each such insured party; (ii) may,
subject to paragraph (iii), provide that the relevant insurer or reinsurer
shall be entitled to avoid liability to or claim damages from any of the
insured parties in circumstances of fraud, deliberate misrepresentation,
deliberate non-disclosure or breach of any warranty or condition (a “Vitiating
Act”) in such policies committed by that insured party; (iii) shall specify
that a Vitiating Act committed by one insured party shall not prejudice the
right to indemnity of any other insured party who has an insurable interest and
who has not committed a Vitiating Act.

(5)                       Liability
Insurance Endorsements:  All policies
of liability insurance required to be maintained by the Borrower shall be
endorsed as follows:

(a)        To name the Finance
Parties as additional insureds;

(b)       To
provide a severability of interests and/or cross liability clause or a
separation of insureds clause;

(c)                        That
the insurance shall be primary and not excess to or contributing with any
insurance or self-insurance maintained by the Finance Parties, and

(d)                       Maintain
policies denominated and losses payable in Dollars (to the extent permitted by
Peruvian laws and regulations from time to time).

(6)                       Payment
of Loss Proceeds:  The insurance
policies and any reinsurance policies shall specify that the proceeds of any
claims thereunder (other than (i) the proceeds of any such claims which are in
respect of amounts claimed by third parties and are paid directly thereto or
have already been paid by the Borrower and which may be paid directly to the
Revenue Accounts in accordance with clause 6 (Revenue
Accounts) of the Accounts Management Agreement or (ii) Revenue
Compensation Proceeds) shall be payable into the respective Offshore Insurance
Proceeds Account or Onshore Insurance Proceeds Account in accordance with
clause 9 (Insurance Proceeds Accounts) of the
Accounts Management Agreement.

(E)                      Failure
to Maintain Insurance:  In the event
the Borrower fails to maintain or cause to be effected and maintained full
insurance coverage required by this Schedule 8, the Facility Agent, upon 30
days’ prior notice (unless the aforementioned insurance would lapse within such
period, in which event notice should be given as soon as reasonably possible)
to the Borrower of any such failure, may (but shall not be obligated to) take
out the required policies of insurance and pay the premiums on the same.  All amounts so advanced thereof by the
Facility Agent shall become an additional obligation of the

 134
 

 

Borrower to the Facility Agent, and the Borrower shall forthwith pay
such amounts to the Facility Agent, together with interest thereon at the rate
of the aggregate of LIBOR and the applicable Margin from the date so advanced.

(F)                      No
Duty of Finance Parties to Verify or Review:  No provision of this Schedule 8 or any
provision of this Agreement or any Project Document shall impose on the Finance
Parties any duty or obligation to verify the existence or adequacy of the
insurance coverage maintained by the Borrower, nor shall the Finance Parties be
responsible for any representations or warranties made by or on behalf of the
Borrower to any insurance company or underwriter.  Any failure on the part of the Finance
Parties to pursue or obtain the evidence of insurance required by this Schedule
8 from the Borrower and/or failure of the Finance Parties to point out any
non-compliance of such evidence of insurance shall not constitute a waiver of
any of the insurance requirements in this Schedule 8.

(G)                     Acceptable
Policy Terms and Conditions:  The
portions of all policies of insurance required to be maintained pursuant to
this Schedule 8 shall contain terms and conditions reasonably acceptable to the
Facility Agent.  If the requirements of
this Schedule 8 are satisfied through a global insurance policy maintained by
Gold Fields Limited or any of its Affiliates, the requirements of this Schedule
8 shall be required to be satisfied by such policy only in so far as it relates
to the Borrower.

 135
 

 

Annex A

Insurance Broker’s
Letter of Undertaking

INSURANCE BROKER’S LETTER OF UNDERTAKING

To:                   The Royal Bank of Scotland
plc as Facility Agent

Attention:      Mr. Greg Arandt

[date]

Dear
Sirs,

Cerro
Corona Project – Gold Fields La Cima S.A. (the “Borrower”)

Any
capitalised word, term or phrase that is used herein that is not specifically
defined herein shall have the meaning ascribed to such word, term or phrase in
the facility agreement dated [•] 2006 entered into between the Borrower,
Citigroup Global Markets Inc., The Royal Bank of Scotland plc. and The Bank of
Nova Scotia (Trust Company of New York), among others (the “Facility Agreement”)

Pursuant
to instructions received from the Borrower in connection with the arrangement
of the Insurances and (to the extent required in accordance with Schedule 8 (Insurance) of the Facility Agreement) Reinsurances (the
details of which Insurances and (if applicable) Reinsurances are set out in
Schedule A to this letter) we confirm that:

(i)                           to the best of our knowledge and belief, the
Insurances and (if applicable) Reinsurances are in full force and effect as
evidenced by the information in Schedule A to this letter;

(ii)                        no information disclosed by us to the
insurers in relation to the Insurances (“Insurers”) was
actually known by us to be inaccurate, incomplete or misleading; and

(iii)                     we are not aware (after making reasonable
enquiry) of any reason why the Borrower or any Insurer may be unwilling or
unable to honour its obligations in relation to the Insurances and (if
applicable) Reinsurances, or to avoid them or any claim, in whole or in part.

We
have arranged the Insurances and (if applicable) Reinsurances on the basis of
information and instructions given to us by the Borrower and the Insurers,
respectively, and we have not made any particular or special enquiry regarding
the Insurances or (if applicable) Reinsurances beyond those that we normally
make in the ordinary course of arranging insurance or reinsurance on behalf of
our clients.

We
hereby agree in respect of the interests of the Borrower and the Facility
Lenders in the Insurances and Reinsurances:

 136
 

 

1.                            to notify promptly to all (Re)Insurers from
time to time of the Insurances and (if applicable) Reinsurances of the
assignment to the Facility Lenders of the Borrower’s rights under the
Insurances and (if applicable) Reinsurances and to the proceeds thereunder and
to use our reasonable endeavours to procure their acknowledgement of receipt of
such notices of assignment and to use reasonable endeavours to have the notices
endorsed on the policies of Insurance and Reinsurance, and to provide you with
true copies of such notices and endorsements.

2.         to notify you:

(a)                        promptly when we are informed of any proposed
changes in the terms of the Insurances or (if applicable) Reinsurances which we
reasonably believe would, if effected, result in any material reduction in
limits or alteration in coverage (including those resulting from extensions) or
increase in deductibles, exclusions or exceptions;

(b)                       promptly if any premium due has not been paid
to us when due, or should we become aware of any (Re)Insurer giving notice of
cancellation non-renewal or avoidance of any Insurance and (if applicable)
Reinsurance or threatens to us to do so; and

(c)                        other than in respect of the assignment
contemplated in paragraph 1., above, immediately in the event of our becoming
actually aware of any purported assignment of, or the creation of any security
interest over, the Borrower’s interest or rights in any of the Insurances or
(if applicable) Reinsurances.

3.                            to provide to you, at least 10 Business Days
prior to the expiry of the Insurances and (if applicable) Reinsurances, all
reasonable information regarding their renewal arrangements, including
premiums, the Insurers and terms and conditions of renewal cover.

4                               to hold all Insurance and (if applicable) Reinsurance policies received
by us to your order, free from any lien, if any, in respect of monies owing to
us in respect of any Insurance and (if applicable) Reinsurance save for any
lien that secures any premium that we have paid on behalf of the Borrower or
any claim that we have paid on behalf of the (Re)Insurers.

5.                            to procure payment of any claim collected by
us on behalf of the Borrower or the Facility Agent acting on behalf of the
Facility Lenders in accordance with the loss payee provision (if any) within
any Insurance or Reinsurance without deduction or set off of any kind for any
reason.

6.                            to pay promptly to Insurers all premiums
received by us from the Borrower in order to ensure that each Insurance is
valid and enforceable in accordance with its terms.

7.                            to the extent to which we are required to
make such documents available to the Borrower, we shall make available to you
on reasonable request copies of any such

 137
 

 

documents from our placing and claims files
in respect of the Insurance but excluding any information that is commercially
sensitive and does not relate to any claims made under the Insurances and (if
applicable) Reinsurances or, any information which is confidential to third
parties.

8.                            to inform you in writing immediately if we
receive or give notice that we are to cease to act as (re)insurance brokers to
the Borrower or Insurers in respect of the Insurances and (if applicable)
Reinsurances previously arranged by us. 
Paragraphs 1 through 7 above are subject to our continuing appointment
as(re) insurance brokers in relation to the Insurances and (if applicable)
Reinsurances concerned and the handling of claims in relation to them and shall
automatically cease upon termination of our appointment for any reason (but
without prejudice to matters arising prior to such termination).

We
acknowledge and confirm that the Facility Lenders have a direct interest in the
Insurances and (if applicable) Reinsurances as co-insureds and an indirect
interest in them arising from their security interest in them and in the claims
proceeds deriving from them but we hereby declare that we owe neither them nor
you any duty of care except as set out in this letter.

Save
as provided in the preceding paragraph of this letter, and save insofar as we
have given any confirmations, undertakings or assurances in this letter, it is
to be understood by the Facility Lenders that we have not acted as their
insurance broker and that accordingly they may not rely on any advice which we
have given to the Borrower in respect of the Insurance or the Insurers in
respect of any Reinsurances, and we do not represent that the Insurances or any
Reinsurances are suitable or sufficient to meet the needs of the Facility
Lenders, who must take such steps and advice of their own as they consider
necessary in order to protect their own position.

This
letter has been prepared exclusively for the use of the addressee and the Facility
Lenders.  No responsibility is accepted
to any third party for the whole or any part of its contents and in the event
that it is disclosed to a third party any and all liability howsoever arising
(including negligence) to such third party is hereby expressly excluded. No
person except the addressee, the Facility Lenders, us and our directors and
employees have any rights arising out of this letter under the Contracts
(Rights of Third Parties) Act 1999.

Strictly
without prejudice to the preceding exclusion of liability, our and our
directors’ and employees’ aggregate liability to any persons, companies or
organisation who acts in reliance on this letter for any and all matters
arising from this letter and the contents thereof shall in any and all events
be limited to the sum of US$10,000,000 (ten million United States dollars) even
if we are negligent, or are in breach of contract or breach of duty. We shall
not be liable in any circumstances for (whether direct or indirect) loss of
revenue, loss of opportunity, loss or profits, loss of anticipated savings or
any indirect or consequential losses. We do not limit liability for our fraud
or wilful misconduct.

This
letter is given by us on the instruction of the Borrower and with the Borrower’s
full knowledge and consent as to its terms as evidence by the Borrower’s
signature below.

 138
 

 

Please
countersign and return a copy of this letter to indicate that you accept its
terms, failing which you should not reply upon the contents of this letter and
we disclaim any duty of care to you.  By
signing you also warrant that you have authority to do so and bind yourself and
the Facility Lenders (for whom you are agent) to the terms of this letter.

This
letter shall be governed by and construed in all respects in accordance with
English law and is subject to the exclusive jurisdiction of the English Courts.

	
  Yours faithfully,

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Title:

  
	
  For and
  on behalf of [name of insurance broker]

  
	
   

  
	
   

  
	
  Countersigned
  by:

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Title:

  
	
  For and on
  behalf of Gold Fields La Cima S.A.

  

 

 139
 

 

We
hereby accept the terms of this letter, a copy of which is attached hereto.

	
  By:

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Title:

  
	
   

  
	
  For and on
  behalf of The Royal Bank of Scotland plc, in its capacity as Facility Agent

  

 

[attach copy of insurance broker’s letter of
undertaking]

 140
 

 

Schedule
A

Insurance
and Reinsurance Policies

Details
of Insurance Policies

	
  Name of Policy

  	
   

  	
  Name of Insurer

  	
   

  	
  Policy Number

  	
   

  	
  Type of

  Insurance

  	
   

  	
  Major Limits of

  Liability

  	
   

  	
  Date of

  Expiry

  	
   

  
	
                           

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  
	
                           

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  

 

Details of Reinsurance Policies

	
  Name of Policy

  	
   

  	
  Name of Insurer

  	
   

  	
  Policy Number

  	
   

  	
  Type of Insurance

  	
   

  	
  Major Limits of

  Liability

  	
   

  	
  Date of

  Expiry

  	
   

  
	
                           

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  
	
                           

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  	
                       

  	
   

  

 

 141

 

Schedule 9

Consents

Part I  

Consents

A.        Material Concessions

	
  

  	
   

  	
  Name of the right

  	
   

  	
  Code

  	
   

  
	
  1.

  	
   

  	
  Alfa 23-I
  (Acumulado)

  	
   

  	
  03000715Y01

  	
   

  
	
  2.

  	
   

  	
  Alfa 23-II
  (Acumulado)

  	
   

  	
  03000716Y01

  	
   

  
	
  3.

  	
   

  	
  Alfa Veintitrés
  (Reducido)

  	
   

  	
  03001066X01

  	
   

  
	
  4.

  	
   

  	
  Alfa-C

  	
   

  	
  03002889X01

  	
   

  
	
  5.

  	
   

  	
  Alfa-E

  	
   

  	
  03002890X01

  	
   

  
	
  6.

  	
   

  	
  Arpón 19-I
  (Acumulado)

  	
   

  	
  03003206X01

  	
   

  
	
  7.

  	
   

  	
  Arpón C

  	
   

  	
  03003101X01

  	
   

  
	
  8.

  	
   

  	
  Arpón Diecinueve

  	
   

  	
  03001067X01

  	
   

  
	
  9.

  	
   

  	
  Cañón

  	
   

  	
  03001629X01

  	
   

  
	
  10.

  	
   

  	
  Carolina Uno
  2003

  	
   

  	
  010265003

  	
   

  
	
  11.

  	
   

  	
  Cerro

  	
   

  	
  03002064X01

  	
   

  
	
  12.

  	
   

  	
  Chela Veintidós

  	
   

  	
  03001014X02

  	
   

  
	
  13.

  	
   

  	
  Fumisa No 3

  	
   

  	
  03001918X01

  	
   

  
	
  14.

  	
   

  	
  Fumisa No 3-A

  	
   

  	
  03002736X01

  	
   

  
	
  15.

  	
   

  	
  Fumisa No 3-B

  	
   

  	
  03002737X01

  	
   

  
	
  16.

  	
   

  	
  Fumisa No 3-H

  	
   

  	
  03002746X01

  	
   

  
	
  17.

  	
   

  	
  Fumisa No
  3-H-A2-(Fraccionado)

  	
   

  	
  0302746AX01

  	
   

  
	
  18.

  	
   

  	
  Juan XXIII

  	
   

  	
  03003661X01

  	
   

  
	
  19.

  	
   

  	
  Nancy

  	
   

  	
  03000479X01

  	
   

  
	
  20.

  	
   

  	
  Nilda

  	
   

  	
  03000078X01

  	
   

  
	
  21.

  	
   

  	
  Proyecto 2004

  	
   

  	
  010070004

  	
   

  
	
  22.

  	
   

  	
  Redención

  	
   

  	
  03002204X01

  	
   

  
	
  23.

  	
   

  	
  Tara

  	
   

  	
  03002284X01

  	
   

  
	
  24.

  	
   

  	
  Vale

  	
   

  	
  03002471X01

  	
   

  
	
  25.

  	
   

  	
  Valle

  	
   

  	
  03002085X01

  	
   

  
	
  26.

  	
   

  	
  Valle-A

  	
   

  	
  03002350X01

  	
   

  

 

 142
 

 

 

B.        Other
Consents

 

1.                           Approval
of the Administrative Economic Unit (Unidad Económica
Administrativa)  Carolina N° 1
(01-00001-84-U) in the name of Sociedad Minera La Cima S.A., granted by
Resolución Jefatural 02561-2005-INACC/J.

2.                           Environmental
Impact Study (Estudio de Impacto Ambiental)
approved by  Directorate Resolution No.
514-2005-MEM/AAM.

3.                           Permit
for Ground Water Use - Quebrada Chorro Blanco y Las Gordas (4.8 l/s. - Mining
Purposes) granted by Administrative Resolution No. 025-2006-GR-CAJ/DRA-ATDRC.

4.                           Permit
for Ground Water Use - Quebrada Chorro Blanco y Las Gordas (1.4 l/s. - Domestic
Purposes) granted by Administrative Resolution No. 024-2006-GR-CAJ/DRA-ATDRC.

5.                           Permit
for Ground Water Use of PP3 Well (7.50 lts/s – Mining Purposes) approved by
Administrative Resolution No 152-2006-GR-CAJ/DRA-ATDRC. This Administrative
Resolution was rectified by Administrative Resolution No
342-2006-GR-CAJ/DRA-ATDRC.

6.                           License
for Surface Water Use - Manantial Coymolache (0.20 lts/s. - Domestic Purposes)
granted by Administrative Resolution No. 374-2004-GR-CAJ-DRA-ATDRC.

7.                           License
for Surface Water Use - Quebrada Chorro Blanco (5 lts/s. - Domestic and Mining
Purposes) granted by Administrative Resolution No. 373-2004-GR-CAJ-DRA-ATDRC.

8.                           License
for Surface Water Use - Quebrada Las Aguilas (10 lts/s. - Domestic Purposes) granted
by Administrative Resolution No. 372-2004-GR-CAJ-DRA-ATDRC.

9.                           License
for Surface Water Use - Río El Puente de la Hierba (50 lts/s. - Mining
Purposes) granted by Administrative Resolution No. 371-2004-GR-CAJ-DRA-ATDRC.

10.                     Authorization
to construct sedimentation ponds in Las Aguilas and Las Gordas granted by Administrative
Resolution No. 114-2006-GR-CAJ/DRA-ATDRC.

11.                     Favourable
Opinion for the Use of Explosives – Construction Activities issued by
Resolution No 594-2006-MEM-DGM-V.

12.                     Certificate of
Mining Operation (COM) - COM No. 155-2006, as amended by Report No
208-2006-MEM-DGM-FMI-COM.

13.                     Direct
Consumer Registry for Fixed Tanks of Gasoline and Diesel (57,079 gal.) –Registration
No. 0001-CDFJ-06-2004.

 143
 

 

14.                     Certificate
of Nonexistence of Archaeological Remains - CIRA No. 2005-00244.

15.                     Certificate
of Nonexistence of Archaeological Remains - Cerro Corona Project Area CIRA
No. 2004-0176.

16.                     Technical
Report for the Inspection of Roads 501 and 557 - Oficio No. 1263-2005-MTC/14.

17.                     Authorization
for “Teleservicio Privado” with 22 stations approved by Directorate
Resolution No. 912-2006-MTC-17.

18.                     Operation
License of Magazine Explosives Storage, requested by Compañía Minera San Martín
S.A. (contractor) and approved by Directorate Resolution No. 02982-2005-IN-1703-2.

19.                     Direct
Consumer Registry with Mobile Tanks of Diesel (15,930 gal.) requested by
Compañía Minera San Martín S.A. (contractor) and with Registration No.
0010-CDMV- 06-2006.

20.                     Mining
Contractor Registry - Authorization for Exploration, Development, Exploitation
and Benefits Works, requested by Compañía Minera San Martín S.A. (contractor)
and approved by Directorate Resolution No. 258-2005-MEM-DGM.

21.                     Operation
Municipal Authorization (Kitchen and Warehouse), requested by Eurest Compass
and approved by Authorization No. 000001-96.

22.                     Authorization
for the Construction of the “Cerro Corona” Beneficiation Plant and ancillary
facilities granted by Directorate Resolution No 116-2006-MEM-DGM/V.

23.                     Third
Extension of the Temporary “Eventual” Authorization for Explosives Use
requested by Compañía Minera San Martín S.A. (contractor) approved by Directorate
Resolution No. 02783-2006-IN-1703-2 (extends the Authorizations granted by Directorate
Resolution No. 01764-2006-IN-1703-2, Directorate Resolution No
00102-2006-IN-1703-2 and Directorate Resolution No 00891-2006-IN-1703-2).

24.                     Operation
License of Magazine Explosives Storage, requested by Compañía Minera San Martín
S.A. (contractor) and approved by Directorate Resolution No. 00781-2006-IN-1703-2.

25.                     Technical
File of the Relocation Project of Manuel Vasquez Pipeline and the authorization
to perform works for such Relocation approved by  Administrative Resolution No
344-2006-GR-CAJ/DAR-ATDRC.

26.                     Global
Explosives Authorization – Pit granted by Directorate Resolution No
02060/2006-N-1703-2.

 144
 

 

27.                     Technical
File Approval  for the Construction / Improvement of Road
501 Tingo - Pilancones - Hualgayoc (Replacing Part of the Road 3N -
Tingo) granted by Oficio No 0524-2006-MTC/14.

28.                     Certificate of
Registration before the DREM - Cajamarca (Dirección Regional de Energía y
Minas) as a Direct Consumer with Movable Facilities, under registry number 0008
– CDMV – 06 – 2006.

29.                     Certificate
of Registration before the DREM - Cajamarca (Dirección Regional de Energía y
Minas) as a Direct Consumer with Movable Facilities, under registry number 0007
– CDMV – 06 – 2006.

30.                     Certificate
of Nonexistence of Archaeological Remains – CIRA No. 2006-0500 (Roads 557 and
501).

31.                     Operation
License of Magazines (Explosives Storage) - 3 Containers and 1 Nitrate Deposit
approved by Directorate Resolution No 02739-2006-IN-1703-2.

32.                     Authorization
to Perform Surface Water Studies for Hidraulic and Geotechnical Structures in
Quebradas Las Aguilas, Las Gordas, Corona, Mesa de Plata, and rivers Tingo –
Maygasbamba and Hualgayoc – Arascorge, granted by Administrative Resolution No
386-2006-GR-CAJ/DRA-ATDRC.

33.                     Sanitary
Authorization for the Treatment and Disposal System of Domestic Sewage Waters
at the Construction Camp – Cerro Corona, granted by Directorate Resolution No
1627-2006-DIGESA-SA.

34.                     Sanitary
Authorization for the Treatment System of Drinkable Water at the Construction
Camp – Cerro Corona, granted by Directorate Resolution No 1623-2006-DIGESA-SA.

35.                     Approval of
the Technical Filing of the Permanent Structures for Sediment Control in
Quebrada Mesa de Plata and Corona and authorization for the construction of two
Sedimentation Ponds, granted by Administrative Resolution No
399-2006-GR-CAJ/DRA-ATDRC.

36.                     Approval of the
performance of the Archaeological Evaluation Project for the Improvement of
Transit on the Access Road to Cerro Corona requested by Cesel Ingenieros
(contractor), granted by Directorate Resolution No 1762/INC.

 145
 

 

Part II

Applications

 

	
   

  	
   

  	
  Consent

  	
   

  	
  Applicant

  	
   

  	
  Authority

  
	
  1.

  	
   

  	
  Public Infrastructure Service Investment (works for
  rehabilitation and improvement of Road No. 557).

  	
   

  	
  Gold Fields La Cima S.A. (formerly Sociedad Minera
  La CimaS.A).

  	
   

  	
  Dirección General de Minería

  
	
  2.

  	
   

  	
  Procedure for the inclusion of the Mining
  Concessions named Proyecto 2004, Carolina Uno 2003 and Amanecer Minero GF
  into the UEA Carolina No 1.

  	
   

  	
  Gold Fields La Cima S.A. (formerly Sociedad Minera
  La CimaS.A).

  	
   

  	
  INACC

  
	
  3.

  	
   

  	
  Authorization to Construct Tailing Dam and
  Complementary Facilities.

  	
   

  	
  Gold Fields La Cima S.A. (formerly Sociedad Minera
  La CimaS.A).

  	
   

  	
  ATDR

  
	
  4.

  	
   

  	
  Operation License for Magazine Silo (Storage of
  Emulsions).

  	
   

  	
  Gold Fields La Cima S.A. (formerly Sociedad Minera
  La CimaS.A).

  	
   

  	
  DICSCAMEC

  
	
  5.

  	
   

  	
  Extension of Certificate of Mining Operation (COM) -
  2006

  	
   

  	
  Gold Fields La Cima S.A. (formerly Sociedad Minera
  La CimaS.A).

  	
   

  	
  Ministry of Energy and Mines

  
	
  6.

  	
   

  	
  Certificate of Mining Operation (COM) for 2007.

  	
   

  	
  Gold Fields La Cima S.A. (formerly Sociedad Minera
  La CimaS.A).

  	
   

  	
  Ministry of Energy and Mines

  
	
  7.

  	
   

  	
  Second extension of the authorization for the
  performance of Ground Water Studies – Cerro Corona granted by Administrative
  Resolution No 322-2005-GR-CAJ/DRA-ATDRC (extended by Administrative
  Resolution No 330-2006-GR-CAJ/DRA-ATDRC).

  	
   

  	
  Gold Fields La Cima S.A. (formerly Sociedad Minera
  La CimaS.A).

  	
   

  	
  ATDR

  

 

 146
 

 

Schedule 10

Timetables

 

	
  Delivery of a duly completed
  Drawdown Request in accordance with Clause 5.2
  (Delivery of a Drawdown Request)

  	
   

  	
  U-5

  9.30 a.m.

  
	
   

  	
   

  	
   

  
	
  Facility Agent notifies
  the Facility Lenders of the Advance in accordance with Clause 5.5 (Facility Lenders’ Participation)

  	
   

  	
  U–5

  3.00 p.m.

  
	
   

  	
   

  	
   

  
	
  LIBOR is fixed

  	
   

  	
  U

  11:00 a.m.

  

 

“U”                  =          date of Advance

“U – X”          =          X
Business Days prior to date of Advance

 147
 

 

Schedule 11

Repayment Schedule

 

	
  Repayment Date

  	
   

  	
  Repayment (%) Facility

  	
   

  
	
  30 June 2009

  	
   

  	
  6.500

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2009

  	
   

  	
  6.500

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2010

  	
   

  	
  4.750

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2010

  	
   

  	
  4.750

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2011

  	
   

  	
  5.625

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2011

  	
   

  	
  5.625

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2012

  	
   

  	
  6.500

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2012

  	
   

  	
  6.500

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2013

  	
   

  	
  6.750

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2013

  	
   

  	
  6.750

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2014

  	
   

  	
  6.375

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2014

  	
   

  	
  6.375

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2015

  	
   

  	
  6.750

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2015

  	
   

  	
  6.750

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  30 June 2016

  	
   

  	
  6.750

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  31 December 2016

  	
   

  	
  6.750

  	
  %

  

 

 148
 

 

Schedule 12

MANDATORY COST FORMULAE

1.                             The
Mandatory Cost is an addition to the interest rate to compensate Facility
Lenders for the cost of compliance with (a) the requirements of the Financial
Services Authority (or any other authority which replaces all or any of its
functions) or (b) the requirements of the European Central Bank.

2.                             On
the first day of each Interest Period (or as soon as possible thereafter) the
Facility Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Facility Lender, in
accordance with the paragraphs set out below. 
The Mandatory Cost will be calculated by the Facility Agent as a
weighted average of the Facility Lenders’ Additional Cost Rates (weighted in
proportion to the percentage participation of each Facility Lender in the
relevant Senior Loan) and will be expressed as a percentage rate per annum.

3.                             The
Additional Cost Rate for any Facility Lender lending from a Facility Office in
a Participating Member State will be the percentage notified by that Facility
Lender to the Facility Agent.  This
percentage will be certified by that Facility Lender in its notice to the
Facility Agent to be its reasonable determination of the cost (expressed as a
percentage of that Facility Lender’s participation in all Loans made from that
Facility Office) of complying with the minimum reserve requirements of the
European Central Bank in respect of loans made from that Facility Office.

4.                             The
Additional Cost Rate for any Facility Lender lending from a Facility Office in
the United Kingdom will be calculated by the Facility Agent as follows:

	
  A x 0.01

  	
   

  
	
  300

  	
   

  
	
   

  	
   

  
	
   

  	
  per cent. per annum.

  

 

Where:

A                             is designed to compensate
Facility Lenders for amounts payable under the Fees Rules and is calculated by
the Facility Agent as being the average of the most recent rates of charge
supplied by the Reference Banks to the Facility Agent pursuant to paragraph 7
below and expressed in pounds per £1,000,000.

5.                             For
the purposes of this Schedule:

(A)                                          “Fees Rules” means the rules on periodic
fees contained in the FSA Supervision Manual or such other law or regulation as
may be in force from time to time in respect of the payment of fees for the
acceptance of deposits;

(B)                                            “Fee Tariffs” means the fee tariffs
specified in the Fees Rules under the activity group A.1 Deposit acceptors
(ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules
but taking into account any applicable discount rate); and

 149
 

 

(C)                                            “Tariff Base” has the meaning given to it
in, and will be calculated in accordance with, the Fees Rules.

6.                             If
requested by the Facility Agent, each Reference Bank shall, as soon as
practicable after publication by the Financial Services Authority, supply to
the Facility Agent, the rate of charge payable by that Reference Bank to the
Financial Services Authority pursuant to the Fees Rules in respect of the
relevant financial year of the Financial Services Authority (calculated for
this purpose by that Reference Bank as being the average of the Fee Tariffs
applicable to that Reference Bank for that financial year) and expressed in
pounds per £1,000,000 of the Tariff Base of that Reference Bank.

7.                             Each
Facility Lender shall supply any information required by the Facility Agent for
the purpose of calculating its Additional Cost Rate.  In particular, but without limitation, each
Facility Lender shall supply the following information on or prior to the date
on which it becomes a Facility Lender:

(A)                                          the
jurisdiction of its Facility Office; and

(B)                                            any
other information that the Facility Agent may reasonably require for such
purpose.

Each Facility Lender
shall promptly notify the Facility Agent of any change to the information
provided by it pursuant to this paragraph.

8.                             The
Facility Agent shall have no liability to any person if such determination
results in an Additional Cost Rate which over or under compensates any Facility
Lender and shall be entitled to assume that the information provided by any
Facility Lender or Reference Bank pursuant to paragraphs 3, 6 and 7 above is
true and correct in all respects.

9.                             The
Facility Agent shall distribute the additional amounts received as a result of
the Mandatory Cost to the Facility Lenders on the basis of the Additional Cost
Rate for each Facility Lender based on the information provided by each
Facility Lender and each Reference Bank pursuant to paragraphs 3, 6 and 7
above.

10.                       Any
determination by the Facility Agent pursuant to this Schedule in relation to a
formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a
Facility Lender shall, in the absence of manifest error, be conclusive and
binding on all Parties.

11.                       The
Facility Agent may from time to time, after consultation with the Borrower and
the Facility Lenders, determine and notify to all Parties any amendments which
are required to be made to this Schedule in order to comply with any change in
law, regulation or any requirements from time to time imposed by the Financial
Services Authority or the European Central Bank (or, in any case, any other
authority which replaces all or any of its functions) and any such
determination shall, in the absence of manifest error, be conclusive and
binding on all Parties.

 150
 

 

Schedule 13

CONCESSIONS

 

Part I

Material Concessions

 

	
  

  	
   

  	
  Name of the right

  	
   

  	
  Code

  	
   

  
	
  1.

  	
   

  	
  Alfa 23-I
  (Acumulado)

  	
   

  	
  03000715Y01

  	
   

  
	
  2.

  	
   

  	
  Alfa 23-II
  (Acumulado)

  	
   

  	
  03000716Y01

  	
   

  
	
  3.

  	
   

  	
  Alfa Veintitrés

  	
   

  	
  03001066X01

  	
   

  
	
  4.

  	
   

  	
  Alfa-C

  	
   

  	
  03002889X01

  	
   

  
	
  5.

  	
   

  	
  Alfa-E

  	
   

  	
  03002890X01

  	
   

  
	
  6.

  	
   

  	
  Arpón 19-I
  (Acumulado)

  	
   

  	
  03003206X01

  	
   

  
	
  7.

  	
   

  	
  Arpón C

  	
   

  	
  03003101X01

  	
   

  
	
  8.

  	
   

  	
  Arpón Diecinueve

  	
   

  	
  03001067X01

  	
   

  
	
  9.

  	
   

  	
  Cañón

  	
   

  	
  03001629X01

  	
   

  
	
  10.

  	
   

  	
  Carolina Uno
  2003

  	
   

  	
  010265003

  	
   

  
	
  11.

  	
   

  	
  Cerro

  	
   

  	
  03002064X01

  	
   

  
	
  12.

  	
   

  	
  Chela Veintidós

  	
   

  	
  03001014X02

  	
   

  
	
  13.

  	
   

  	
  Fumisa No 3

  	
   

  	
  03001918X01

  	
   

  
	
  14.

  	
   

  	
  Fumisa No 3-A

  	
   

  	
  03002736X01

  	
   

  
	
  15.

  	
   

  	
  Fumisa No 3-B

  	
   

  	
  03002737X01

  	
   

  
	
  16.

  	
   

  	
  Fumisa No 3-H

  	
   

  	
  03002746X01

  	
   

  
	
  17.

  	
   

  	
  Fumisa No
  3-H-A2-(Fraccionado)

  	
   

  	
  0302746AX01

  	
   

  
	
  18.

  	
   

  	
  Juan XXIII

  	
   

  	
  03003661X01

  	
   

  
	
  19.

  	
   

  	
  Nancy

  	
   

  	
  03000479X01

  	
   

  
	
  20.

  	
   

  	
  Nilda

  	
   

  	
  03000078X01

  	
   

  
	
  21.

  	
   

  	
  Proyecto 2004

  	
   

  	
  010070004

  	
   

  
	
  22.

  	
   

  	
  Redención

  	
   

  	
  03002204X01

  	
   

  
	
  23.

  	
   

  	
  Tara

  	
   

  	
  03002284X01

  	
   

  
	
  24.

  	
   

  	
  Vale

  	
   

  	
  03002471X01

  	
   

  
	
  25.

  	
   

  	
  Valle

  	
   

  	
  03002085X01

  	
   

  
	
  26.

  	
   

  	
  Valle-A

  	
   

  	
  03002350X01

  	
   

  

 

 151
 

 

Part II
Other Concessions

 

	
  

  	
   

  	
  Name of the right

  	
   

  	
  Code

  	
   

  
	
  1.

  	
   

  	
  Acumulación
  Chelita

  	
   

  	
  010001701L

  	
   

  
	
  2.

  	
   

  	
  Alejandrito MP

  	
   

  	
  03003400X01

  	
   

  
	
  3.

  	
   

  	
  Alfa 23-IV
  (Acumulado)

  	
   

  	
  03003205X01

  	
   

  
	
  4.

  	
   

  	
  Alfa-F

  	
   

  	
  03002891X01

  	
   

  
	
  5.

  	
   

  	
  Alfa-G

  	
   

  	
  03002892X01

  	
   

  
	
  6.

  	
   

  	
  Alfa-M

  	
   

  	
  03002900X01

  	
   

  
	
  7.

  	
   

  	
  Amanecer Minero
  GF

  	
   

  	
  010231904

  	
   

  
	
  8.

  	
   

  	
  Ancla

  	
   

  	
  03002283X01

  	
   

  
	
  9.

  	
   

  	
  Ancla A-4
  (Fraccionado)

  	
   

  	
  0302283AX01

  	
   

  
	
  10.

  	
   

  	
  Ancla A-5
  (Fraccionado)

  	
   

  	
  0302283BX01

  	
   

  
	
  11.

  	
   

  	
  Angélica

  	
   

  	
  0302963BX01

  	
   

  
	
  12.

  	
   

  	
  Bella Unión

  	
   

  	
  03000376X01

  	
   

  
	
  13.

  	
   

  	
  Caliza

  	
   

  	
  03001366X01

  	
   

  
	
  14.

  	
   

  	
  Cordillera

  	
   

  	
  03002144X01

  	
   

  
	
  15.

  	
   

  	
  Don Jorge

  	
   

  	
  03000397X01

  	
   

  
	
  16.

  	
   

  	
  Don Paco

  	
   

  	
  03001043X01

  	
   

  
	
  17.

  	
   

  	
  Dos Amigos

  	
   

  	
  03002145X01

  	
   

  
	
  18.

  	
   

  	
  El Manjar N° 2

  	
   

  	
  03002146X01

  	
   

  
	
  19.

  	
   

  	
  El Manjar No
  2-A3 (Fraccionado)

  	
   

  	
  0302146AX01

  	
   

  
	
  20.

  	
   

  	
  El Manjar No
  2-A4 (Fraccionado)

  	
   

  	
  0302146BX01

  	
   

  
	
  21.

  	
   

  	
  El Manjar No
  2-A6 (Fraccionado)

  	
   

  	
  0302146CX01

  	
   

  
	
  22.

  	
   

  	
  El Manjar No
  2-A7 (Fraccionado)

  	
   

  	
  0302146DX01

  	
   

  
	
  23.

  	
   

  	
  El Manjar No
  2-A8 (Fraccionado)

  	
   

  	
  0302146EX01

  	
   

  
	
  24.

  	
   

  	
  El Manjar No
  2-A9 (Fraccionado)

  	
   

  	
  0302146FX01

  	
   

  
	
  25.

  	
   

  	
  El Mesías

  	
   

  	
  03001926X01

  	
   

  
	
  26.

  	
   

  	
  Ensenada-MC

  	
   

  	
  0302960BX01

  	
   

  
	
  27.

  	
   

  	
  Fortuna I-M.C.

  	
   

  	
  0302964BX01

  	
   

  
	
  28.

  	
   

  	
  Gemela Derecha
  M.R.

  	
   

  	
  03003451X01

  	
   

  
	
  29.

  	
   

  	
  Gemela Derecha
  M.R.- A4-(Fraccionado)

  	
   

  	
  0303451AX01

  	
   

  
	
  30.

  	
   

  	
  Japón Trece

  	
   

  	
  03001228X01

  	
   

  
	
  31.

  	
   

  	
  Lucha M.R.

  	
   

  	
  03003605X01

  	
   

  
	
  32.

  	
   

  	
  Maruja

  	
   

  	
  03000273X01

  	
   

  
	
  33.

  	
   

  	
  Maruja 1A

  	
   

  	
  03000023X01

  	
   

  
	
  34.

  	
   

  	
  Mi Romy M.C.

  	
   

  	
  03003426X01

  	
   

  
	
  35.

  	
   

  	
  Milagritos
  G.A.-A1(Fraccionado)

  	
   

  	
  0303613AX01

  	
   

  
	
  36.

  	
   

  	
  Milagritos-G.A.

  	
   

  	
  03003613X01

  	
   

  
	
  37.

  	
   

  	
  Olvidada

  	
   

  	
  03003324X01

  	
   

  

 

 152
 

 

 

	
  38.

  	
   

  	
  Orlandito

  	
   

  	
  03000267X01

  	
   

  
	
  39.

  	
   

  	
  Orlando

  	
   

  	
  03000144X01

  	
   

  
	
  40.

  	
   

  	
  Orlando I

  	
   

  	
  03000151X01

  	
   

  
	
  41.

  	
   

  	
  Orlando II

  	
   

  	
  03000152X01

  	
   

  
	
  42.

  	
   

  	
  Orlando III

  	
   

  	
  03000156X01

  	
   

  
	
  43.

  	
   

  	
  Paty M.C.
  (Fraccionado)

  	
   

  	
  0303236CX01

  	
   

  
	
  44.

  	
   

  	
  Paty-M.C.

  	
   

  	
  0303236AX01

  	
   

  
	
  45.

  	
   

  	
  Punto Victoria
  Seis

  	
   

  	
  03000403X01

  	
   

  
	
  46.

  	
   

  	
  Quijote

  	
   

  	
  03001032X01

  	
   

  
	
  47.

  	
   

  	
  Quijote No 2

  	
   

  	
  03001824X01

  	
   

  
	
  48.

  	
   

  	
  Quijote-A1

  	
   

  	
  0301032AX01

  	
   

  
	
  49.

  	
   

  	
  Rulito

  	
   

  	
  03000158X01

  	
   

  
	
  50.

  	
   

  	
  Satélite

  	
   

  	
  03000298X01

  	
   

  
	
  51.

  	
   

  	
  Satélite No 2

  	
   

  	
  03000024X01

  	
   

  
	
  52.

  	
   

  	
  Satélite No1

  	
   

  	
  03000368X01

  	
   

  
	
  53.

  	
   

  	
  Tara A-1
  (Fraccionado)

  	
   

  	
  0302284AX01

  	
   

  
	
  54.

  	
   

  	
  Tara A-2
  (Fraccionado)

  	
   

  	
  0302284BX01

  	
   

  
	
  55.

  	
   

  	
  Tara A-3
  (Fraccionado)

  	
   

  	
  0302284CX01

  	
   

  
	
  56.

  	
   

  	
  Tara A-4
  (Fraccionado)

  	
   

  	
  0302284DX01

  	
   

  
	
  57.

  	
   

  	
  Trinitaria V

  	
   

  	
  03002219X01

  	
   

  
	
  58.

  	
   

  	
  Víctor

  	
   

  	
  03000883X01

  	
   

  
	
  59.

  	
   

  	
  Virgen De Las
  Mercedes - 85

  	
   

  	
  0303291AX01

  	
   

  
	
  60.

  	
   

  	
  Alfa 23-III
  (Acumulado)

  	
   

  	
  03000721Y01

  	
   

  
	
  61.

  	
   

  	
  Alfa-D

  	
   

  	
  03002896X01

  	
   

  
	
  62.

  	
   

  	
  Alfa-H

  	
   

  	
  03002897X01

  	
   

  
	
  63.

  	
   

  	
  Arpón-A

  	
   

  	
  03002887X01

  	
   

  
	
  64.

  	
   

  	
  San Ramón

  	
   

  	
  03000176X01

  	
   

  

 

 153

 

Schedule 14

Conditions for Issuance of Bonds

For the purposes of
Clause 2.1 (The Senior Loans), the Facility Agent
shall not be entitled to withhold its consent to the issuance of the Bonds, if
each of the following conditions shall have been satisfied:

1.          BOND FINAL MATURITY
DATE

The final maturity date
for the Bonds (the “Bond Final Maturity Date”)
shall be a date not earlier than the Final Maturity Date.

2.          SCHEDULED PRINCIPAL
REPAYMENTS

Either:

(a)                        the
principal amount of the Bonds will be repaid in several instalments on
Repayment Dates for the Facility, provided that the aggregate amount of all
such repayment instalments made up to and including the relevant Repayment Date
together with the aggregate amount of the Facility repaid up to and including such
Repayment Date does not exceed the amount of the Facility that would have been
repaid up to and including such Repayment Date if no Bonds had been issued.(1)

(b)                       the
principal amount of the Bonds will be repaid in full after the Final Maturity
Date.

3.          COUPON

Prior to the issuance of
the Bonds the Borrower delivers to the Facility Agent a revised Base Case,
calculated on the basis of (a) the Base Case Assumptions; (b) the most
up-to-date Operating Costs and (c) the anticipated coupon rate for such Bonds,
which demonstrates that for each consecutive annual period from the proposed
Bond issuance date up to the Final Maturity Date the minimum forward-looking
average DSCR calculated taking into account the issuance of the Bonds with the
maximum coupon rate that the Borrower would accept for such Bonds (and
consequent repayment of the portion of the Facility with the proceeds of the
Bonds in accordance with this Agreement) is not less than 1.50:1.

4.          BONDHOLDERS’ REPRESENTATIVE.

Immediately prior to the
offering of the Bonds the Borrower appoints Citigroup Peru S.A. or another
international bank to act as the Bondholders’ Representative pursuant to the
Indenture and related supplemental indentures governing the terms of the Bonds.

(1)                       For the
avoidance of doubt, to the extent that the Bonds are amortising Bonds,
repayments can only be made on Repayment Dates and the repayment profile for
the Facility must not be affected or altered in any way.

 154
 

 

 

5.          SECURITY

The Bondholders shall
share in the Security on the terms set out in the Master Security and
Intercreditor Deed, subject to, if necessary, the existing Security being
re-granted to take into account the fact that the Secured Obligations
thereunder would include the obligations of the Borrower in respect of the
Bonds in addition to the obligations of the Borrower in respect of the Facility
and certain Hedging Agreements.  The
Borrower shall not be required to grant any other security to secure its
obligations under the Bonds for so long as the Facility remains outstanding.  Any costs and expenses associated with the
Facility Lenders maintaining their existing security position, or any
re-granting of Security and associated registration/perfection requirements,
shall be for the account of the Borrower.

6.          BONDHOLDER REMEDIES

Except as required by
law, (i) no Bondholder shall have the right to directly enforce any term or
condition of the Indenture, other than through Bondholders’ Representative and
(ii) any remedies of the Bondholders and the Bondholders’ Representative shall
be subject to the Master Security and Intercreditor Deed for as long as the
Facility remains outstanding.

7.          OTHER TERMS AND CONDITIONS

The terms of the
Indenture shall not require the Borrower to take any action that would result
in a breach by the Borrower of the Facility Agreement or any other Financing
Document.

8.          MASTER SECURITY AND
INTERCREDITOR DEED

The Bondholders’
Representative shall, prior to the issuance of any Bonds, accede to the Master
Security and Intercreditor Deed in accordance with the terms thereof and the
voting and enforcement procedures and arrangements as between the Facility
Lenders and the Bondholders shall be as set out in the Master Security and
Intercreditor Deed as at the date of this Agreement.

 155
 

 

 

Schedule 15

Document Review List

1.               Proposal for
Acquisition and Development of the Cerro Corona Deposit on Behalf of Minera
Gold Fields S.A., Project Description and Investment Proposal, November 2005
(developed internally by Gold Fields personnel)

2.               Minera Gold Fields
S.A., Cerro Corona Project, EP Services Phase, Final Report Document N°
H318608-000-X-24-006 and appendices listed below:

a.               Appendix 1         List of Deliverables

b.              Appendix 2         EP Services Costs and
Schedule

c.               Appendix 3         Process Design Criteria
& Mass Balance

d.              Appendix 4         Mechanical &
Electrical Equipment Lists

e.               Appendix 5         Equipment Requisition
Listing

f.                 Appendix 6         Capital Cost Estimate
Back-up

g.              Appendix 7         Operating Cost Estimate
Details

h.              Appendix 8         Project Implementation
Schedules

i.                  Appendix 9         Project Risk Analysis
Schedules

3.               Minera Gold Fields
S.A., Engineering & Procurement Services, Cerro Corona Project, Capital
Cost Estimate, Document N° H-318608-000-H-06-001

4.               Cerro Corona
Project Update, Oct 2004, T. Vehrs.

5.               Definitive
Feasibility Study (DFS), Dec 2001,Grd Minproc

6.               Technical Report
for The Cerro Corona Project, Sep 2005, Norwest Corporation.

7.               Thesis “Geology,
Alteration And Mineralization Of Cerro Corona, Porphyry Copper-Gold Deposit”,
Cajamarca Province, 1998, John James.

8.               Late Timing For
High Sulfidation Cordilleran Base Metal Lode And Replacement Deposits In
Porphypy-Related Districts: The Case Of Colquijilca, Central Peru: Sganews,
2002, Bendezú, R. And Fontboté.

9.               The Litographic,
Stratigraphic And Structural Setting Of The Gian Antamina Copper-Zinc Skarn
Deposit,  Ancash, Peru Econ.Geol, 2004,
Love D A, Clark A H And Glover J K 2004.

10.         Cerro Corona Activity
Report Geology And Resource Evaluation, Minera Gold Fields S.A.  Jul 2005 and Sep 2005

11.         Geologia Del Area Del
Tajo Cerro Corona, Ago 2005, A.Uzátegui.

12.         Cerro Corona, Resource
Model, Jun 13,2005, Norwest Corporation.

 156
 

 

 

13.         Informe Final Programa De
Interpretacion De Arcillas En Cerro Corona, Ago 12,2005, Lucia Torres &
Alex Santos, Minera Gold Fields Peru S.A.

14.         Cerro Corona Project,
Contract Mining Tender Evaluation, Feb 2005, Rsg Global For Minera Gold Fields
Peru S.A.

15.         Confidential Tender
Evaluation Report For The Contract Mining Services For Cerro Corona, Dec 2004,
Srk Consulting.

16.         Cerro Corona Project,
Initial Assessment Of Humidity Cell Tests, Memorandum No. Pem-1053-2005, File
No. Li201-00117/14, Oct  05,2005, Knight
Piésold Consultores S.A.

17.         Cerro Corona Project,
Geotechnical Review Of Open Pit Slope Designs, Oct 21,2005, Piteau Associates
Engineering Ltd.

18.         Cerro Corona Project,
Mining Contract-Unit Rates, Apr 28, 2005, Minera San Martin/Minera Gold Fields
S.A.

19.         Administracion De
Laboratorio De Mina, Jul 15,2005, Sgs Del Perú S.A., Chapter 26 Propuesta
Económica

20.         Due Dilligence Mining
Study Of The Cerro Corona Project, March 2, 2004, Wlr Consulting Inc.

21.         Review Of Mineral Reserve
Estimates For The Cerro Corona Project, Sep 17,2003, Wlr Consulting, Inc.

22.         Results Of Flotation Test
Work Including Locked Cycle Flotation On Samples From The Cerro Corona Orebody
In Peru, Project No. P-2777, Feb 10,2004, Dawson Metallurgical Laboratories,
Inc.

23.         Results Of Test Work To
Produce Flotation Concentrate For Smelther Evaluation On Cerro Corona Ore
Samples From Peru, Project No.P-2777, Nov 15,2004, Revised Jan 20,2005, Dawson
Metallurgical Laboratories, Inc.

24.         Gold Fields Memorandum “Cerro
Corona Additional Flotation Test Results”, Nov 21, 2004,  M.I.Brittan.

25.         Gold Fields Memorandum “Cerro
Corona Metallurgy And Process Development Due Diligence Report”, Feb 17,
2004,  M.I.Brittan.

26.         Thickener Sizing For
Tailing Disposal At High Yield Stress Paste, Sep 11,2005, Dorr-Oliver Eimco.

27.         Memoria Descriptiva –
Estudio De Rehabilitacion Y Mejoramiento Del Camino Vecinal No. 557: El
Tingo-Pilancones-Hualgayoc” Oct 17,2005, Document No Csl-0554400-0-Md-001,
Cesel

 157
 

 

 

28.         Baseline Data Adequacy
Review For The Environmental Impact Study Cerro Corona Project, Apr 2004, Mwh
Peru S.A.

29.         Cerro Corona Project,
Draft Project Compilation Document Tailings, Mine Waste And Associated Water
Management Facilities, Oct  27,2005,
Knight Piésold Consultores S.A.

30.         Safety Policy And
Requirements, Oct 20,2005, Minera Gold Fields S.A.

31.         Summary Of Smelter
Charges And Certain Other Offsite Costs, Cerro Corona Project, Oct 2004, Selmar
International Services Ltda.

32.         Capex Review  And Development, Cerro Corona Project, Audit
Of The Cerro Corona Capital Cost Estimate., Set 2005, Aker Kvaerner.

33.         Environmental Impact
Assessment, May 20005, Knight Piésold Consultores S.A., Volume 1-10 + Resumen
Ejecutivo

a.               Annex 26.1          EIA, May 2005, KP,
Resumen Ejecutivo

b.              Annex 26.2          EIA, May 2005, KP,
Volume Ib

c.               Annex 26.3          EIA, May 2005, KP,
Volume Ii

d.              Annex 26.4          EIA May 2005, KP, Volume
Vi

34.         Estudio Geotecnico Del
Area Del Tajo Cerro Corona, Sep 2005, J.Marca.

35.         Cc_Map_Gt_Pit_A0_(27sep05).Pdf

36.         Cc_Mapeo_A0_(27
Sep)Total.Pdf

37.         Informe Final Servicio
EP, Documentos, Jul 15,2005, Hatch.

38.         Architectural Design
Criteria Document No H318608-000-A-22- Rev 0.

39.         Civil Structural Design
Criteria Document No H318608-000-C-22-001, Rev 0.

40.         Electrical Design
Criteria, Document No H318608-000-E-22-001, Rev 0.

41.         Electrical Equipment List
Document No H318608-000-E-44-001, Rev 0.

42.         Process Design Criteria
And Plant Mass Balance, Document No H318608-000-F-22-001, Rev 3.

43.         Engineering &
Procurement Services Cerro Corona Project, 
Capital Cost Estimate Document No H318608-000-H-06-001, Rev 0.

44.         Engineering &
Procurement Services Cerro Corona Project, Capital Cost Estimate Document No
H318608-000-H-06-003, Rev 0.

45.         Mechanical Equipment
List, Document No H318608-000-M-44-001, Rev 0

 158
 

 

 

46.         Cerro Corona Project,
Diseño De Las Instalaciones Para El Manejo De Relaves, Desmonte De Mina Y
Cantera De Roca, Oct 19,2005, Knight Piésold Consultores S.A.

47.         Cerro Corona Project,
Technical Specifications For Haul Road Earthworks, May 16, 2005, Knight Piésold
Consultores S.A.

48.         Cerro Corona Project,
Mine Waste And Associated Water Management Facilities, Report On Capital And
Operating Cost, Aug 2005, Knight Piésold Consultores S.A.

49.         Programa Formando
Competencias, Oct 26,2005, Rosa Calvo & Miguel Yrivarren.

50.         Estudio De Ruta Para El
Transporte De Carga Entre Los Puertos Del Callao Y Salaverry Hasta La Mina
Cerro Corona, Elaborado Por: Stiglich Transportes S.A., Enero 2006

51.         Detail Capital and
Operating Cost Analysis

a.               Cerro Corona Budget
& Transfers.xls, Hatch, Feb. 6, 2006

b.              Cerro Corona MGF
Forecast Master Sheet 31 October 05 rev 4.xls

c.               Owners PM Team
Master 31 Oct 2005.xls, MGF

d.              Paste Thickening
Estimate September Nov 05.xls, MGF

e.               Pull Out and
Summaries Cerro Corona Final Rev Oct 05.xls, MGF

f.                 Tailing Review
RevA1 Comparison 31 Oct 05.xls, MGF

g.              Working
Capital-Preproduction Labour Model 25-7-05.xls, MGF

h.              Yanacocha Processing
Feasibility - Fixed at 5 convoys per hour Rev. 2.xls, MGF

52.         Cerro_Corona_Concessions_final_list.xls,
Mar 2006

53.         INACC_list_larger_scale_chart.
pdf, Mar 2006

 159
 

 

 

SIGNATURE PAGES

	
  GOLD FIELDS LA CIMA S.A.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  Address:

  
	
   

  
	
  Av. Victor
  Andrés Belaúnde 147

  
	
  Via Principal
  155

  
	
  Edificio Real
  Tres. Of. 1401

  
	
  San Isidro.

  
	
  Lima 27 - PERU

  
	
   

  
	
   

  
	
  Tel:

  	
  +51 1 706 0431

  
	
  Fax:

  	
  +51 1 422 5259

  
	
  Attention:

  	
  Mr. Richard
  Graeme

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE
  ROYAL BANK OF SCOTLAND PLC

  
	
  as
  Facility Agent, Mandated Lead Arranger and Original Facility Lender

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  Address:

  
	
   

  
	
  Risk and
  Portfolio Management

  
	
  The Royal Bank
  of Scotland plc

  
	
  5th Floor

  
	
  135 Bishopsgate

  
	
  London, EC2M 3UR

  
	
   

  
	
   

  
	
  Tel:

  	
  +44 (0)207 085
  6389

  
	
  Fax:

  	
  +44 (0)207 085
  6396

  
				

 160
 

 

 

	
  Attention:   John
  Lane, Associate Director

  
	
   

  
	
   

  
	
  THE
  BANK OF NOVA SCOTIA

  
	
  as
  Mandated Lead Arranger and Original Facility Lender

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  and

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  Address:

  
	
   

  
	
  40 King Street
  West

  
	
  62nd Floor

  
	
  Toronto

  
	
  Ontario, Canada
  M5H 1H1

  
	
   

  
	
   

  
	
  Tel:

  	
  +1 416 866 7186

  
	
  Fax:

  	
  +1 416 866 2009

  
	
  Attention:

  	
  Michael K. Eddy,
  Director

  
				

 

 161
 

 

 

	
  THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK

  
	
  as
  Offshore Security Trustee

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  and

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  Address:

  
	
   

  
	
  One Liberty
  Plaza

  
	
  23 Floor

  
	
  New York

  
	
  NY 10006

  
	
  USA

  
	
   

  
	
  Tel:

  	
  +1 212-225-5056

  
	
  Fax:

  	
  +1 212 225 5436

  
	
  Attention:

  	
  Administrator

  
				

 

 162
 

 

 

	
  SCOTIABANK PERU S.A.A.

  
	
  as
  Onshore Security Agent

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  and

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  Address:

  
	
   

  
	
  Av. Dionisio
  Derteano No 102

  
	
  Piso 5

  
	
  San Isidro Lima

  
	
  Perú

  
	
   

  
	
  Tel:

  	
  +51 1 211-6395

  
	
  Fax:

  	
  +51 1 211-6834

  
	
  Attention:

  	
  Alfredo Dancourt / Cecilia Marín

  
	
   

  
	
   

  
	
  CITIGROUP
  GLOBAL MARKETS INC.

  
	
  as
  Mandated Lead Arranger

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  Address:

  
	
   

  
	
  388 Greenwich
  Street

  
	
  20th Floor

  
	
  New York

  
	
  NY 10013

  
	
   

  
	
   

  
	
  Tel:

  	
  +1 212-816-1089

  
	
  Fax:

  	
  +1 646-291-1075

  
	
  Attention:

  	
  Mr Juan Moreyra, Director

  
				

 

 163
 

 

 

	
  CITIBANK N.A.

  
	
  as
  Original Facility Lender

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
   

  
	
  Address:

  
	
   

  
	
  388 Greenwich
  Street

  
	
  20th Floor

  
	
  New York

  
	
  NY 10013

  
	
   

  
	
   

  
	
  Tel:

  	
  +1 212-816-1089

  
	
  Fax:

  	
  +1 646-291-1075

  
	
  Attention:

  	
  Mr Juan Moreyra, Vice President

  
				

 

 164

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