Company announcements

Harmony acquires full ownership of the Hidden Valley mine in Papua New Guinea

September 19, 2016

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Johannesburg, Monday, 19 September 2016: Harmony Gold MiningCompany Limited (Harmony) today announced that it has signedan agreement to purchase Newcrest PNG 1 Ltd, the wholly-ownedsubsidiary of Newcrest Mining Limited (Newcrest) which holdsNewcrest’s 50% interest in the Hidden Valley joint venture,for a cash consideration of US$1. Finalisation of thistransaction, which will give Harmony 100% ownership of theHidden Valley mine, is conditional upon regulatory approval inSouth Africa.

“Our acquisition of the Hidden Valley mine is aligned with ouroverall aspiration to increase our annual production profileto 1.5Moz within three years. We believe that Hidden Valleyhas the potential to contribute approximately 180 000oz goldper annum to Harmony’s production profile at an all-insustaining cost of less than US$ 950/oz within the next threeyears,” Peter Steenkamp, chief executive officer of Harmonysaid.

As at 30 June 2016, the Hidden Valley mine had an estimatedmineral reserve of 1.4Moz of gold at 1.6g/t and 27Moz ofsilver at 31g/t, resulting in total gold equivalent ounces of1.8Moz at 2 g/t. The estimated mineral resource includes 4Mozof gold at 1.6g/t and 73Moz of silver at 29g/t. Mining thestage 5 and 6 cutback will extend the current mine life by 7years and require an initial capital investment ofapproximately US$180 million.

Harmony will also acquire Newcrest’s 50% interest in theexploration tenements adjacent to the Hidden Valley mine.

On completion of the transaction, Harmony will assume allliabilities and expenses related to the Hidden Valley jointventure and mine, including all closure, rehabilitation andremediation obligations, with effect from 31 August 2016.Newcrest has funded Newcrest PNG 1 Ltd to an amount ofUS$22.5m, as its once-off contribution towards Hidden Valley’sfuture closure liability.

Harmony and Newcrest will remain joint venture partners in theWafi-Golpu project.

“Acquiring 100% of the Hidden Valley mine and its surroundingexploration tenements meet our acquisition criteria. Afterthe initial investment phase Hidden Valley will generatestrong free cash flows, which could be applied to thedevelopment of the Wafi-Golpu project and our excitingexploration portfolio in Papua New Guinea,” Peter Steenkampadded.

For more details contact:

Frank Abbott
Financial Director
+27 (0) 82 800 4290 (mobile)

Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0) 82 888 1242 (mobile)

Johannesburg, South Africa
19 September 2016

Sponsor: J.P. Morgan Equities South Africa Proprietary Limited