Media releases

Blyvoor reaches wage settlement with NUM, UASA

DRDGOLD Limited announced today that Blyvoor has reached a three-year wage settlement with the National Union of Mineworkers (NUM) and the United Association of South Africa (UASA).

Johannesburg, South Africa. 13 October 2011. DRDGOLD Limited (DRDGOLD; JSE: DRD, NASDAQ: DROOY) announced today that its 74%-owned Blyvooruitzicht Gold Mining Company Limited (Blyvoor) currently under business rescue proceedings in terms of Chapter 6 of the Companies Act has reached a three-year wage settlement with the National Union of Mineworkers (NUM) and the United Association of South Africa (UASA).

Key features of the settlement are:

  • a 7% annual basic wage increase for entry-level employees in job categories 4 and 5;
  • a 6% annual basic wage increase for employees in job categories 6 to 16; and
  • a profit-sharing scheme, in terms of which all employees can earn up to 8% more.

The agreement provides for a basic wage increase in the third year equivalent to the Consumer Price Index (CPI) should CPI exceed the 7% and 6% levels agreed.

DRDGOLD CEO Niël Pretorius complimented both the NUM and UASA for demonstrating understanding of Blyvoors current distressed position and of the business rescue process in progress.

The three-year span of the agreement is aligned with the envisaged span of the business rescue process, and acceptance of the profit-sharing scheme indicates positive progress towards an alignment of the interests of workers and shareholders, Pretorius said.

Queries:

South Africa & North America

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Disclaimer

Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements included in this document, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licences or other governmental approvals, changes in DRDGOLD's competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors.

These risks include, without limitation, those described in the section entitled Risk Factors included in our annual report for the fiscal year ended 30 June 2010, which we filed with the United States Securities and Exchange Commission on 29 October 2010 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events.

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