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HAR - Harmony Gold Mining Company Limited - Harmony officially signs deal

Release Date: 04/09/2007 08:25:52      Code(s): HAR
HAR - Harmony Gold Mining Company Limited - Harmony officially signs deal       
                                           with Pamodzi Gold                    
HARMONY GOLD MINING COMPANY LIMITED                                             
Incorporated in 1950                                                            
Registration number 1950/038232/06                                              
Share code: HAR                                                                 
NASDAQ, NYSE: HMY                                                               
ISIN: ZAE000015228                                                              
Harmony Gold Mining Company Limited (Harmony) announces that it has             
officially signed formal agreements with Pamodzi Gold Limited (Pamodzi Gold)    
for the sale to all rights, title and interest of Orkney shafts located near    
Orkney in the North West province.                                              
Pamodzi Gold has engaged Harmony in order to take management control of the     
Orkney operations under a contracting agreement by the 1 October prior to       
the all conditions precedent being met. Harmony has agreed in principle to      
this arrangement and both parties envisage signing a formal agreement within    
the next three weeks.                                                           
The initial purchase consideration payable to Harmony by Pamodzi Gold for       
the Orkney shafts is equal to R550 million, and a secondary consideration is    
calculated as follows: -                                                        
-    3% of the net smelter revenues in respect of the first one million         
    ounces of gold produced by Orkney after the effective date of the           
transaction; and                                                            
-    1.75% of the net smelter revenue in respect of all gold produced by the    
    Orkney thereafter subject to an maximum aggregate amount of R450 m          
The initial Orkney purchase consideration will be settled by Pamodzi Gold       
-    the payment of a cash amount of R350 million; and                          
-    the issue of 9,272,903 ordinary consideration shares to Harmony.           
The number of Pamodzi Gold ordinary shares to be issued to Harmony has      
    been calculated based on the 30 day VWAP of the Pamodzi Gold ordinary       
    share price on the JSE up to the business day immediately preceding the     
    date upon which the detailed cautionary was announced, being 24 April       
2007, which VWAP is equal to R21.57.                                        
The transaction is subject to, amongst others, the following conditions         
-    the shareholders of Pamodzi Gold passing all resolutions necessary in      
order to approve and implement the Orkney transaction;                      
-    Harmony converting its Old Order Mining Right to a New Order Mining        
    Right in terms of Item 7 of Schedule 2 of the MPDRA;                        
-    the Minister of Minerals and Energy consenting to the transfer of the      
New Order Mining Right  to Pamodzi Gold in terms of section 11 of the       
    MPRDA; and                                                                  
-    Pamodzi Gold obtaining funding for payment of the initial Orkney           
    purchase consideration.                                                     
Graham Briggs, acting Chief Executive says, "The official signing of the        
agreement highlights the willingness of both parties to meet the conditions     
precedent in order to successfully conclude the transaction by October          
Issued by Harmony Gold Mining Company Limited                                   
4 September 2007                                                                
For more details contact:                                                       
Graham Briggs                                                                   
Acting Chief Executive                                                          
on +27(0)83 265 0274                                                            
Amelia Soares                                                                   
General Manager, Investor Relations                                             
on +27(0)82 654 9241                                                            
Lizelle du Toit                                                                 
Investor Relations Officer                                                      
on +27(0)82 465 1244                                                            
Merrill Lynch South Africa (Pty) Limited                                        
Date: 04/09/2007 08:25:52 Supplied by www.sharenet.co.za                     
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