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ARMgold AND HARMONY MERGE TO CREATE SOUTH AFRICA"S LARGEST GOLD PRODUCER

Release Date: 02/05/2003 17:38:01      Code(s): HAR HARW
ARMgold AND HARMONY MERGE TO CREATE SOUTH AFRICA"S LARGEST GOLD PRODUCER        
Harmony Gold Mining Co                                                          
ISIN: ZAE000015228                                                              
Jse Share code: HAR                                                             
JOINT NEWS RELEASE                                                              
by Harmony Gold Mining Co. Ltd. and                                             
African Rainbow Minerals Gold Ltd.                                              
ARMgold AND HARMONY MERGE TO CREATE                                             
SOUTH AFRICA"S LARGEST GOLD PRODUCER                                            
Johannesburg, 2 May 2003 - Harmony Gold Mining Company                          
Limited (NYSE: HMY JSE: HAR) and ARMgold (JSE: AOD)                             
today announced details on a proposed merger of the two                         
companies and the joint acquisition of a 34,5% stake in Anglovaal               
Mining Limited ("Avmin") (JSE: AIN).                                            
The merger between the two companies, will create the fifth                     
largest gold producer in the world, producing approximately 4,1                 
million ounces per annum.  It is intended that the merger                       
will be effected by the issue of two Harmony shares for every three             
ARMgold shares held.  In addition,ARMgold will pay a special                    
dividend of 500 cents per ordinary share prior to implementation of             
the merger.  The merged company will be known as Harmony with                   
conspicuous and distinctive emphasis on the letters "ARM" to                    
reflect ARMgold"s identity in the merged company                                
"This merger will create the largest local producer of gold ounces in           
South Africa.  Harmony will be recognised as a role model in the                
industry and the country and will be truly representative of the new            
South Africa.  Merging the two companies seemed like the logical                
next step in both the companies" growth strategies.  We share one               
of the industry"s best gold assets in Free Gold and from a cultural,            
operational and strategic perspective, the fit seems natural, "                 
commented Patrice Motsepe. Mr Motsepe will become the new                       
Non-Executive Chairman of Harmony and will play an active and                   
extensive role in advancing the long-term interests of the company.             
Mr Adam Fleming, retiring Non-Executive Chairman of Harmony                     
commented: "After four exciting years of being part of the Harmony              
Team, it is an honour to hand over the reigns to Patrice, who I"m               
sure will chair the company during its next phase of development. I             
am and intend to remain a significant shareholder of Harmony."                  
"As an investment alternative, Harmony will now offer a unique opportunity,     
being the largest, unhedged South African gold producer, exposed to both the US 
Dollar gold price and the volatility of the SA Rand.  The new company will have 
the benefit of more than 45% shareholding in North America with enhanced        
liquidity on the NYSE. The company is now, more than ever, well positioned to   
continue with its strategy of growth and delivery of                            
shareholder value," commented Bernard Swanepoel, Harmony Chief Executive.       
The new company will have operating mines in all the major gold producing       
regions in South Africa.  It is anticipated that most of the synergies, will in 
the short term, be realised in the Free State, as the region will now be        
consolidated as one operating unit.  Optimal use of infrastructure and          
exploitation of the orebodies will deliver enhanced returns for the             
shareholders.                                                                   
The only other operations of note in the Free State are Beatrix mine, operated  
by Gold Fields Limited and Target mine, operated by Avgold, which has a resource
base of 78,1 million ounces of gold of which 2,6 million ounces are in the      
reserve category.  The two companies have now acquired a stake in Avgold through
the Avmin transaction referred to below.  The new Harmony will be well          
positioned to continue with its strategy of growth, both locally and            
internationally.                                                                
The two companies today also announced that they had jointly acquired Anglo     
American Plc"s 34,5% stake in Avmin for a cash consideration of R43,50 per      
share.  Harmony and ARMgold will participate on a 50/50 joint venture basis in a
transaction which is valued at R1,766 billion (a premium of 9% on the 90 day    
moving average price).  Avgold recently placed 90 million shares to retire      
offshore debt, decreasing its stake in Avgold to 42%.                           
Avmin, which has a market capitalisation of R3,4 billion, holds shares in the   
following companies;                                                            
-    Avgold Limited      42,0%                                                  
-    Chambisi            90,0%                                                  
-    Assmang             50,3%                                                  
-    Nkomati Mine        75,0%                                                  
-    Two Rivers Project  41,3%                                                  
The acquisition of the stake in Avmin creates an opportunity for Harmony and    
ARMgold to participate in unlocking value within that company.                  
A press conference has been scheduled for the morning of Monday May 5th, 2003.  
ENDS                                                                            
Disclaimer                                                                      
This presentation includes certain information that is based on management"s    
reasonable expectations and assumptions.  These "forward-looking statements"    
include, but are not limited to, statements regarding estimates, intentions and 
beliefs, as well as anticipated future production, mine life, market conditions 
and costs.  While management has prepared this information using the best of    
their experience and judgment, and in all good faith, there are risks and       
uncertainties involved which could cause results to differ from projections.    
Cautionary Note to US Investors - The United States Securities and Exchange     
Commission (the "SEC") permits mining companies, in their filings with the SEC, 
to disclose only those mineral deposits that a company can economically ad      
legally extract or produce. We use certain terms in this quarterly review, such 
as "resources", that the SEC guidelines strictly prohibit us from including in  
our filings with the SEC. U.S. Investors are urged to consider closely the      
disclosure in our public filings with the SEC available from us at Harmony Gold 
Mining Company Limited, P.O. Box 2, Randfontein, 1760, South Africa, Attention: 
Mr. Ferdi Dippenaar.  You can also obtain these filings from the SEC by calling 
1-800-SEC-0330.                                                                 
2 May 2003                                                                      
For more details contact:                                                       
Bernard Swanepoel                                                               
on +27(0)83 303 9922                                                            
or                                                                              
Patrice Motsepe                                                                 
on +27(0)82 560 0930                                                            
or                                                                              
Ferdi Dippenaar                                                                 
on +27(0)82 807 3684                                                            
or                                                                              
Pieter Taljaard                                                                 
on +27(0)82 441 8834                                                            
Harmony                                                                         
Investor Relations Officer                                                      
Corn Bobbert                                                                   
Tel +27 11 684 0146                                                             
Fax +27 11 684 0188                                                             
Mobile +27(0)83 380 6614                                                        
cbobbert@harmony.co.za                                                          
www.harmony.co.za                                                               
JSE:          HAR      HAR                                                      
NYSE:       HMY                                                                 
ISIN No.:   ZAE000015228                                                        
JSE:          HARW                                                              
NYSE:       HMYWS                                                               
ISIN No.:   ZAE000031209                                                        
ARMgold                                                                         
Investor Relations Officer                                                      
Mangisi Gule                                                                    
Tel +27 11 883 5606                                                             
Fax +27 11 883 5609                                                             
Mobile +27(0)82 805 3863                                                        
mangisi.gule@armgold.com                                                        
www.armgold.com                                                                 
JSE:          AOD      HAR                                                      
ISIN No.:   AE000039244                                                         



                                        
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