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    Gold Fields Limited

Registration number: 1968/004880/06

ISIN: ZAE000018123 JSE Code: GFI

("Gold Fields" or the "company")

INITIAL RESPONSE BY BOARD OF DIRECTORS OF GOLD FIELDS TO OFFER BY HARMONY GOLD
MINING COMPANY LIMITED FOR GOLD FIELDS

Introduction

Shareholders of Gold Fields ("shareholders") are referred to the announcement
published today, Monday, 18 October 2004, by Harmony Gold Mining Company
Limited ("Harmony") in which it announced the terms of a proposed merger
between the two companies, subject to the fulfilment of certain conditions
precedent (the "Announcement"). Through making the Announcement, Harmony has
stated that it has irrevocably committed to offer to acquire the entire issued
share capital of Gold Fields in terms of Section 440 of the Companies Act, 1973
(Act 61 of 1973), as amended, in return for the issue of new ordinary shares in
Harmony ("Harmony consideration shares"). In order to implement the offer,
Harmony is extending two consecutive offers, the early settlement offer and the
subsequent offer (collectively, the "Offer") to shareholders to acquire all of
their ordinary shares in Gold Fields ("Gold Fields shares").

Terms of Offer

In terms of:

  * the early settlement offer, Harmony has made an initial offer to acquire up
    to 34.9% of the entire issued share capital of Gold Fields subject to:
   
  * the passing and, where applicable, registration, of the ordinary and
    special resolutions required, inter alia, to increase Harmony's share
    capital, to enable Harmony to implement the Offer and to issue the Harmony
    consideration shares (the "Harmony resolutions"); and
   
- the registration statement with respect to the Harmony consideration shares
to be issued in the United States in pursuance of the Offer having been
declared effective by the Securities and Exchange Commission ("SEC");

  * the subsequent offer, being an immediate follow-on offer on the same terms
    as the early settlement offer, Harmony has made an offer for the balance of
    the entire issued share capital of Gold Fields not already acquired by
    Harmony under the early settlement offer subject to:
   
- the passing and, where applicable, registration of the Harmony resolutions;

- Harmony receiving valid acceptances of the subsequent offer from shareholders
in respect of in excess of 50% of the entire issued share capital of Gold
Fields (including those Gold Fields shares acquired by Harmony under the early
settlement offer and those Gold Fields shares in respect of which Norilsk
Nickel has irrevocably undertaken to accept the subsequent offer);

- the proposed transaction with IAMGold Corporation Inc ("IAMGold" transaction)
not being implemented for whatever reason including, inter alia, shareholders
failing to approve the proposed IAMGold transaction at the general meeting
convened for such purpose;

- the proposed merger being approved by the South African Competition
Authorities under the Competition Act, 1998 (Act 89 of 1998), as amended;

  * the registration statement with respect to the Harmony consideration shares
    in the US Offer having been declared effective by the SEC; and
   
  * the approval of all regulatory authorities whose approval is required for
    the implementation of the proposed merger.
   
The consideration payable by Harmony in terms of the Offer is:

for each Gold Fields share 1.275 new Harmony shares,

for each Gold Fields ADS 1.275 new Harmony ADSs,

(the "proposed share exchange ratio").

Shareholders are advised that the Board of Directors of Gold Fields will
consider the advice to be received from its independent financial advisors,
Goldman Sachs International and JPMorgan, and is currently forming its own view
and recommendation regarding the Offer, the substance of which will be made
known to shareholders in due course. The preliminary view of the Board of
Directors however is that the Offer is not in line with Gold Fields' stated
strategy or in the interest of Gold Fields' shareholders. In coming to these
conclusions the following considerations, amongst others, have been taken into
account:

  * Harmony has stated that it's proposal will be subject to Gold Fields not
    proceeding with the proposed merger of its international assets with
    IAMGold Corporation Inc.. The Board of Gold Fields continues to firmly
    believe that the IAMGold transaction is in the best interests of
    shareholders as it provides an international platform for aggressive growth
    with full access to international debt and capital markets. It unlocks the
    intrinsic value of Gold Fields' international assets and places control of
    a global growth vehicle firmly in South African hands. The see through
    value of Gold Fields' International assets has increased by more than
    USD0.5bn from announcement of the IAMGold transaction till Friday 15th
    October close.
   
- The implied premium in the proposal, based on the closing price of Gold
Fields' ADSs in New York on Friday 15 October was 7%. The implied premium based
on current trading levels is negligible. Based on the Board of Gold Fields'
perception of relative fundamental value the proposed exchange ratio vastly
overvalues Harmony's asset contribution to any potential combination. Over the
past year the cost per Kilogram performance of Harmony has significantly lagged
that of Gold Fields.

The Board of Gold Fields therefore believes that the proposal significantly
undervalues Gold Fields' high quality portfolio of assets and completely
disregards the significant value that will be created from the IAMGold
transaction.

The Board of Gold Fields urges shareholders to continue to support Gold Fields'
stated strategy of pursuing the IAMGold transaction.

Further Announcements

The views of the company's independent financial advisors and of the Board of
Directors will be made known to shareholders shortly. Shareholders will be
advised accordingly, inter alia, by means of SENS and press announcements.

Johannesburg

18 October 2004

Joint Financial Advisors to Gold Fields Sponsor to Gold Fields                 
                                                                               
Goldman Sachs International             JPMorgan                               
                                                                               
JPMorgan                                                                       
                                                                               
Corporate law advisors and consultants to Gold Fields                          
                                                                               
Edward Nathan & Friedland (Pty) Limited                                        
                                                                               
Corporate Law Advisors and Consultants (Registration number 1999/026464/       
21)                                                                            



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