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Harmony Gold Mining Company Limited - Disposal by Harmony of 30 million shares

Release Date: 03/06/2005 15:41:48      Code(s): HAR
Harmony Gold Mining Company Limited - Disposal by Harmony of 30 million shares  
in Gold Fields Limited ("Gold Fields")                                          
Harmony Gold Mining Company Limited                                             
(Incorporated in the Republic of South Africa)                                  
(Registration number 1950/038232/06)                                            
Share code: HAR     ISIN: ZAE000015228                                          
("Harmony")                                                                     
Disposal by Harmony of 30 million shares in Gold Fields Limited ("Gold Fields") 
Harmony hereby announces that on 2 June 2005 it placed 30 million shares in Gold
Fields, representing approximately 6.1% of the issued share capital of Gold     
Fields, to a broad range of institutional investors. The Gold Fields shares,    
which are listed on a number of international stock exchanges including the JSE 
Securities Exchange South Africa and the New York Stock Exchange (in the form of
American Depositary Receipts), were sold for a cash consideration of            
approximately R2.14 billion (US$315 million), representing a price of R71.40    
(US$10.50) per Gold Fields share before expenses. HSBC acted as the bookrunner  
for the disposal.                                                               
Following completion of the placement, Harmony still holds 26,629,409 Gold      
Fields shares, representing approximately 5.4% of the issued share capital Gold 
Fields, which it plans to retain in the interim to allow it to participate in   
any appropriate re-structuring of Gold Fields. Harmony believes that the        
invitation by Gold Fields to appoint two Norilsk Nickel nominees to its board   
defeated the potential to deploy its entire Gold Fields stake strategically. The
proceeds from the placement will be utilised to retire short term debt and      
ensure funding of the company"s Hidden Valley Project in Papa New Guinea. This  
growth project, which is planned to commence construction in July 2005, will add
approximately 300 000 ounces to Harmony"s gold production base and approximately
four million ounces of silver production. One of the considerations behind      
Harmony"s decision to self-fund Hidden Valley was its desire to remain unhedged.
Any decision to project finance Hidden Valley would likely have required part of
Hidden Valley"s production to be hedged. Harmony is also considering the buy    
back of its own shares in terms of its existing general authority from          
shareholders.                                                                   
Harmony has consciously remained internally focused despite the complications   
surrounding the proposed merger with Gold Fields. Harmony"s re-structuring is   
nearing completion and Harmony has continued to spend on building growth        
projects of which Hidden Valley is the newest. The process of completion of     
Harmony"s current project portfolio will substantially enhance the quality of   
Harmony"s asset portfolio.                                                      
The placement is expected to have no significant effects on Harmony"s net       
assets.                                                                         
ENDS                                                                            
Issued by:                                                                      
Harmony Gold                                                                    
Ferdi Dippenaar     +27 11 684 0140     +27 82 807 3684                         
Brenton Saunders    +27 11 684 0140                                             
Vusi Magadana       +27 11 684 0140                                             
Date: 03/06/2005 03:41:54 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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