Harmony Maintains Reserves at 48 million Ounces

Harmony Gold Mining Company Limited (Harmony) is pleased to publish its Statement of Mineral Resources and Mineral Reserves as at 30 June 2010, which has been produced in accordance with the South African Code for the Reporting of Mineral Resources and Mineral Reserves (SAMREC Code) and the Australian Code (JORC Code). The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce tzaranda clasificadora y molienda para orohe Mineral Reserves.

Graham Briggs, Chief Executive Officer of Harmony, notes that, “Careful, considered restructuring of Harmony’s asset base focusing on better-quality ounces is in line with Harmony’s strategy to produce profitable and sustainable operations. At the end of June 2010, Harmony’s attributable gold mineral reserve was maintained at 48.1 million ounces, which is similar to the previous year’s declared reserve, despite shaft closures and depletion which occurred during the year. Attributable gold mineral resources declined by 9% to 189.2 million ounces.”

Briggs, says that steps taken to improve the quality of Harmony’s portfolio have included:

• closure of the Brand 3, Merriespruit 3, Harmony 2, Evander 2,5 and 7 shafts (a total of six shafts) due to their ore bodies having reached the end of their economic lives;


• continued investment in exploration and development at the company’s Phakisa, Kusasalethu, Doornkop and Hidden Valley growth projects, reaffirming their robust life-of-mine plans and reserve positions;


• acquisition of the Free State assets of Pamodzi Gold Mining Limited which includes President Steyn 1 and 2 shafts, Lorraine 3, Freddies 7 and 9, the Steyn plant and surface stockpiles;


• an international exploration program resulting in the discovery of a new zone of mineralization adjacent to the main Golpu resource;


• the reassessment of the Evander operations and projects. Following a review of the economic viability of the Evander South project under various economic scenarios, it was decided to exclude it from Harmony’s reserves, while the Libra project, (retreating the Evander tailings) has been included in the reserve statement;


• the sale of the Mount Magnet project, in Western Australia, which allows us to focus on growing, developing and operating our portfolio of quality assets in Papua New Guinea.

In converting the Mineral Resources to Mineral Reserves the following parameters were applied:

• a gold price of US$950/oz


• an exchange rate of USD/ZAR 8.19 for South Africa


• the above parameters resulted in a gold price of R250 000/kg


• For the Papua New Guinea joint venture operations held within the Morobe Mining Joint Venture, prices of AUD$1000/oz Au, AUD$15.33/oz Ag, AUD$5,883/ton copper and AUD$17.33/lb Molybdenum were used with an exchange rate of PGK/AUDK2.30.

Harmony’s South African resources and reserves (excluding Rand Uranium) were reviewed and audited by SRK Consulting Engineers and Scientists for compliance with the South African Code for Reporting Mineral Resources and Mineral Reserves – SAMREC Code (2008), Industry Guide 7 of the United States Securities Exchange Commission and Sarbanes-Oxley requirements.

Harmony’s Papua New Guinea Mineral Resources and Mineral Reserves were independently reviewed by AMC Consultants Pty Ltd for compliance with the standards set out in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves – The JORC Code.

The company’s detailed resource and reserve declaration will be published in the FY2010 annual report, which will be made available to shareholders towards the end of September 2010. The annual report will also include the latest update on Harmony’s uranium resources.

We use certain terms in this press release such as ‘measured’, ‘indicated’ and ‘inferred’ resources, which the United States’ Securities and Exchange Commission (SEC) guidelines strictly prohibit US-registered companies from including in their filings with the SEC. US investors are urged to closely consider the disclosure in our Form 20-F.

Click Here to view the tables containing data pertaining to Mineral Resources for Harmony's South African and Papua New Guinea operations and projects.