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HAR - Harmony Gold Mining Company - Unaudited Pro Forma Financial Effects On

Release Date: 15/05/2008 16:17:02      Code(s): HAR
HAR - Harmony Gold Mining Company - Unaudited Pro Forma Financial Effects On    
                        Harmony And Withdrawal Of Cautionary Announcement       
Harmony Gold Mining Company Limited                                             
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1950/038232/06)                                           
Share code: HAR & ISIN: ZAE000015228                                            
CAUTIONARY ANNOUNCEMENT                                                         
Further to the announcement released on SENS on 22 April 2008 wherein it was    
stated that Harmony and Newcrest Mining Limited ("Newcrest") had signed an      
agreement which will allow Newcrest to earn 50% interest in Harmony`s Papua     
New Guinea gold assets ("the joint venture"), shareholders are advised of the   
pro forma financial effects of the transaction.                                 
Newcrest will earn its 50% interest in the joint venture by contributing a      
maximum of US$525 million(1). The commitment will be in two stages, namely, an  
initial US$180 million payment to acquire a 30.01% interest by 30 June 2008,    
together with a reimbursement to Harmony of US$45 million(1) in project         
expenditure ("Stage 1 completion"); and a farm-in commitment for the remaining  
19.99% of approximately US$300 million to fund project expenditure up to the    
commencement of mining operations at Hidden Valley.                             
(1) Based on the current estimate of Harmony`s project expenditure of           
US$150 million from 1 January 2008 to the expected Stage 1 completion date      
of 30 June 2008.                                                                
2.Pro forma financial effects                                                   
The unaudited pro forma financial effects of the transaction have been          
prepared for illustrative purposes only and because of its nature may not       
fairly present Harmony`s financial position, changes in equity, results of      
operations or cash flows. The pro forma financial effects are the               
responsibility of the directors of Harmony.                                     
Before the       After the                 
                                    transaction     transaction       Change    
                                        (cents)         (cents)          (%)    
(Loss)/Earnings per share                   (44)              48          209   
Fully diluted (loss)/earnings per share     (44)              47          207   
Headline earnings per share                   35              36            3   
Fully diluted headline earnings per share     35              36            3   
Net asset value per share                   6161            6264            2   
Tangible net asset value per share          5546            5649            2   
1.The pro forma financial effect was only calculated on Stage 1 of the          
transaction whereby Newcrest acquires a 30.01% interest.                        
2.The pro forma financial effects are based on the unaudited results of         
Harmony for the nine months ended 31 March 2008.                                
3.The financial impact on the earnings of Harmony is illustrated as if the      
joint venture had been completed at 1 July 2007 while the impact on the net     
assets of Harmony is shown as if the joint venture had been implemented on      
31 March 2008.                                                                  
4.The pro forma financial effects have been prepared using accounting policies  
that comply with International Financial Reporting Standards. The accounting    
policies are consistent with those applied in the previous financial year.      
3.Withdrawal of cautionary announcement                                         
Shareholders are advised that caution is no longer required when dealing in     
Harmony securities.                                                             
For more details contact:                                                       
Graham Briggs                                                                   
Chief Executive Officer                                                         
on +27 (0)83 265 0274                                                           
Amelia Soares                                                                   
General Manager, Investor Relations                                             
on +27 11 411 2314 or +27 (0)82 654 9241                                        
15 May 2008                                                                     
Merrill Lynch South Africa (Pty) Limited                                        
Date: 15/05/2008 16:17:01 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
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information disseminated through SENS.                                          

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