Company announcements

Harmony further optimises value for shareholders

September 07, 2010

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Merriespruit South region and Freegold option

Johannesburg. Tuesday, 7 September 2010. Harmony Gold Mining Company Limited (Harmony) is pleased to announce that it has completed two transactions with Witwatersrand Consolidated Gold Resources Limited (Wits Gold).

In terms of these transactions, Wits Gold will obtain a prospecting right over Harmony’s Merriespruit South area and the option held by ARMGold/Harmony Joint Venture Company (Proprietary) Limited (Freegold), a wholly owned subsidiary of Harmony. The option was to acquire a beneficial interest of up to 40% in any future mines established by Wits Gold on certain properties in the Southern Free State (Freegold option), this will be cancelled.

The total consideration price of the transactions is R336 million, (R61 million for the prospecting area and R275 million for the cancellation of the option agreement) which will be settled in cash or in a combination of cash and shares in Wits Gold. The agreements were signed on 3 September 2010 and outstanding conditions precedent are expected to be fulfilled within the next 9 months.

Harmony will abandon a portion of its mining right in respect of the Merriespruit South area to enable Wits Gold to include this area in its prospecting right, which is located immediately south of the Merriespruit South area. The disposal of the Merriespruit South area does not have any impact on the existing Merriespruit 1 mining operations.

Harmony’s Chief Executive Graham Briggs says, “The Merriespruit South area and the Freegold option do not fit into our portfolio. Therefore these transactions are in line with Harmony’s strategy to focus on our growth projects in South Africa. This is an exciting opportunity for Wits Gold and will unlock value for our shareholders.”

For more details contact:

Jaco Boshoff
Executive: Reserves, Projects and New Business
+27 (0)83 395 3810

Esha Brijmohan
Investor Relations Officer
+27 (0)82 759 1775