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HAR - Harmony Gold Mining Company Ltd - Mineral resources and mineral reserves

Release Date: 02/08/2010 15:57:02      Code(s): HAR
HAR - Harmony Gold Mining Company Ltd - Mineral resources and mineral reserves  
statement update as at 30 June 2010                                             
Harmony Gold Mining Company Ltd                                                 
Incorporated in the Republic of South Africa                                    
Registration number: 1950/038232/06                                             
JSE Share code: HAR                                                             
NYSE Share code: HMY                                                            
NASDAQ Share code: HMY                                                          
ISIN: ZAE000015228                                                              
PRESS RELEASE                                                                   
MINERAL RESOURCES AND MINERAL RESERVES STATEMENT UPDATE AS AT 30 JUNE 2010      
Harmony maintains reserves at 48 million ounces while focusing on better quality
ounces to realise safe, profitable and sustainable operations.                  
Johannesburg, Monday 02 August 2010. Harmony Gold Mining Company Limited        
(Harmony) is pleased to publish its Statement of Mineral Resources and Mineral  
Reserves as at 30 June 2010, which has been produced in accordance with the     
South African Code for the Reporting of Mineral Resources and Mineral Reserves  
(SAMREC Code) and the Australian Code (JORC Code). The Measured and Indicated   
Mineral Resources are inclusive of those Mineral Resources modified to produce  
the Mineral Reserves.                                                           
Graham Briggs, Chief Executive Officer of Harmony, notes that, "Careful,        
considered restructuring of Harmony`s asset base focusing on better-quality     
ounces is in line with Harmony`s strategy to produce profitable and sustainable 
operations. At the end of June 2010, Harmony`s attributable gold mineral reserve
was maintained at 48.1 million ounces, which is similar to the previous year`s  
declared reserve, despite shaft closures and depletion which occurred during the
year. Attributable gold mineral resources declined by 9% to 189.2 million       
ounces".                                                                        
Briggs says that steps taken to improve the quality of Harmony`s portfolio have 
included:                                                                       
closure of the Brand 3, Merriespruit 3, Harmony 2, Evander 2, 5 and 7 shafts (a 
total of six shafts) due to their ore bodies having reached the end of their    
economic lives;                                                                 
continued investment in exploration and development at the company`s Phakisa,   
Kusasalethu, Doornkop and Hidden Valley growth projects, reaffirming their      
robust life-of-mine plans and reserve positions;                                
acquisition of the Free State assets of Pamodzi Gold Mining Limited which       
includes President Steyn 1 and 2 shafts, Lorraine 3, Freddies 7 and 9, the Steyn
plant and surface stockpiles;                                                   
an international exploration program resulting in the discovery of a new zone of
mineralisation adjacent to the main Golpu resource;                             
the reassessment of the Evander operations and projects. Following a review of  
the economic viability of the Evander South project under various economic      
scenarios, it was decided to exclude if from Harmony`s reserves, while the Libra
project, (retreating the Evander tailings) has been included in the reserve     
statement;                                                                      
the sale of the Mount Magnet project in Western Australia, which allows us to   
focus on growing, developing and operating our portfolio of quality assets in   
Papua New Guinea.                                                               
In converting the Mineral Resources to Mineral Reserves the following parameters
were applied:                                                                   
a gold price of USD950/oz                                                       
an exchange rate of USD/ZAR 8.19 for South Africa                               
the above parameters resulted in a gold price of R250,000/kg                    
for the Papua New Guinea joint venture operations held within the Morobe Mining 
Joint Venture, prices of AUD$1000/oz Au, AUD$15.33/oz Ag, AUD$5,883/ton copper  
and AUD$17.33/lb Molybdenum were used with an exchange rate of PGK/AUDK2.30.    
Harmony`s South African resources and reserves (excluding Rand Uranium) were    
reviewed and audited by SRK Consulting Engineers and Scientists for compliance  
with the South African Code for Reporting Mineral Resources and Mineral Reserves
- SAMREC Code (2008), Industry Guide 7 of the United States Securities Exchange 
Commission and Sarbanes-Oxley requirements. Harmony`s Papua New Guinea Mineral  
Resources and Mineral Reserves were independently reviewed by AMC Consultants   
Pty Ltd for compliance with the standards set out in the Australasian Code for  
Reporting of Exploration Results, Mineral Resources and Ore Reserves - The JORC 
Code.                                                                           
The company`s detailed resource and reserve declaration will be published in the
FY2010 annual report, which will be made available to shareholders towards the  
end of September 2010. The annual report will also include the latest update on 
Harmony`s uranium resources.                                                    
We use certain terms in this press release such as "measured", "indicated" and  
"inferred" resources, which the United States` Securities and Exchange          
Commission (SEC) guidelines strictly prohibit US-registered companies from      
including in their filings with the SEC. US investors are urged to closely      
consider the disclosure in our Form 20-F.                                       
Mineral Resources statement                                                     
The following tables summarise the Mineral Resources for the South African and  
Papua New Guinea operations and projects:                                       
SA underground operations                                                       
Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Measured     137.9        7.16         988           31 769                     
Indicated    193.7        6.39         1 238         39 796                     
Inferred     452.5        4.53         2 049         65 887                     
Total        784.1        5.45         4 275         137 452                    
SA projects below infrastructure                                                
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
Kg)           Oz)                         
Measured     -            -            -             -                          
Indicated    70.1         8.90         624           20 077                     
Inferred     45.4         3.36         153           4 908                      
Total        115.5        6.73         777           24 985                     
SA surface                                                                      
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Measured     155.9        0.41         64            2 065                      
Indicated    1 248.0      0.29         356           11 471                     
Inferred     234.1        0.32         74            2 392                      
Total        1 638.0      0.30         495           15 928                     
Papua New Guinea*                                                               
Hidden Valley and Hamata                                                        
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Measured     4.3          2.07         9             287                        
Indicated    36.0         1.76         63            2 040                      
Inferred     11.3         1.33         15            486                        
Total        51.6         1.69         87            2 813                      
Wafi/Golpu/Nambonga                                                             
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Measured     -            -            -             -                          
Indicated    76.7         1.20         92            2 952                      
Inferred     245.1        0.64         156           5 044                      
Total        321.8        0.77         248           7 996                      
* Represents Harmony`s 50% equity portion.                                      
In addition to the gold resources, Harmony also reports its equity (50%) portion
of resources for silver, copper and molybdenum from its PNG operations.         
Silver                                                                          
            Tonnes (Mt)  g/t          Ag (`000      Ag(`000 Oz)                 
Kg)                                       
Measured     4.2          35.0         147           4 735                      
Indicated    33.1         33.4         1 105         35 511                     
Inferred     10.9         31.1         340           10 922                     
Total        48.2         33.0         1 592         51 168                     
Copper                                                                          
            Tonnes (Mt)  %            Cu (`000 t)   Cu (M lbs)                  
Measured                                                                        
Indicated    44.8         1.38         621           1 369                      
Inferred     225.3        0.80         1 806         3 982                      
Total        270.1        0.90         2 427         5 351                      
Molybdenum                                                                      
Tonnes (Mt)  ppm          Mo (`000 t)   Mo (M lbs)                  
Measured                                                                        
Indicated    44.8         107.72       5             11                         
Inferred     205.4        111.30       23            50                         
Total        250.2        110.68       28            61                         
Mineral Reserve statement                                                       
The following table shows more detail of the year-on-year reserve               
reconciliation:                                                                 
Mineral Reserve reconciliation: FY2009 to FY2010                                
                           Gold        Gold                                     
                           (tonnes)    (million Oz)                             
Balance at June 2009        1 498       48.2                                    

Reductions                                                                      
 Mined during FY2010       (54)        (1.7)                                    
 Mine closures             (13)        (0.4)                                    
Projects (Evander South)  (53)        (1.7)                                    
 Geology and scope         (14)        (0.5)                                    
changes                                                                         
Increases                                                                       
New acquisitions          36          1.2                                      
 Rand Uranium equity       37          1.2                                      
(40%)                                                                           
 Projects (Libra)          59          1.9                                      

Balance at June 2010        1 496       48.1                                    
The following tables show the Mineral Reserves for the South African and Papua  
New Guinea operations and projects:                                             
SA underground operations                                                       
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Proved       50.9         6.04         308           9 901                      
Probable     76.9         6.24         480           15 421                     
Total        127.9        6.16         788           25 322                     
SA projects below infrastructure                                                
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
Kg)           Oz)                         
Proved                                                                          
Probable     42.3         7.28         308           9 895                      
Total        42.3         7.28         308           9 895                      
SA surface                                                                      
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Proved       52.5         0.51         27            861                        
Probable     1 145.6      0.26         295           9 494                      
Total        1 198.1      0.27         322           10 355                     
Papua New Guinea*                                                               
Hidden Valley and Hamata                                                        
Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Proved       3.8          2.13         8             260                        
Probable     27.2         1.80         49            1 578                      
Total        31.0         1.84         57            1 838                      
Wafi/Golpu/Nambonga                                                             
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Proved                                                                          
Probable     35.4         0.61         21            694                        
Total        35.4         0.61         21            694                        
* Represents Harmony`s 50% equity portion                                       
In addition to the gold reserves, Harmony also reports its equity (50%) portion 
of reserves for silver, copper and molybdenum from its PNG operations.          
Silver                                                                          
            Tonnes (Mt)  g/t          Ag (`000      Ag(`000 Oz)                 
Kg)                                       
Proved       3.8          35.58        134           4 320                      
Probable     24.3         35.52        862           27 726                     
Total        28.1         35.53        996           32 046                     
Copper                                                                          
            Tonnes (Mt)  %            Cu (`000 t)   Cu (M lbs)                  
Proved                                                                          
Probable     35.4         1.13         400           882                        
Total        35.4         1.13         400           882                        
Molybdenum                                                                      
            Tonnes (Mt)  ppm          Mo (`000 t)   Mo (M lbs)                  
Proved                                                                          
Probable     35.4         121.00       4             9                          
Total        35.4         121.00       4             9                          
Mineral Reserve statement                                                       
The following table shows more detail of the year-on-year reserve               
reconciliation:                                                                 
Mineral Reserve reconciliation: FY2009 to FY2010                                
                           Gold        Gold                                     
                           (tonnes)    (million Oz)                             
Balance at June 2009        1 498       48.2                                    
                                                                                
Reductions                                                                      
 Mined during FY2010       (54)        (1.7)                                    
Mine closures             (13)        (0.4)                                    
 Projects (Evander South)  (53)        (1.7)                                    
 Geology and scope         (14)        (0.5)                                    
changes                                                                         
Increases                                                                       
 New acquisitions          36          1.2                                      
 Rand Uranium equity       37          1.2                                      
(40%)                                                                           
Projects (Libra)          59          1.9                                      
                                                                                
Balance at June 2010        1 496       48.1                                    
The following tables show the Mineral Reserves for the South African and Papua  
New Guinea operations and projects:                                             
SA underground operations                                                       
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Proved       50.9         6.04         308           9 901                      
Probable     76.9         6.24         480           15 421                     
Total        127.9        6.16         788           25 322                     
SA projects below infrastructure                                                
Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Proved                                                                          
Probable     42.3         7.28         308           9 895                      
Total        42.3         7.28         308           9 895                      
SA surface                                                                      
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Proved       52.5         0.51         27            861                        
Probable     1 145.6      0.26         295           9 494                      
Total        1 198.1      0.27         322           10 355                     
Papua New Guinea*                                                               
Hidden Valley and Hamata                                                        
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
                                      Kg)           Oz)                         
Proved       3.8          2.13         8             260                        
Probable     27.2         1.80         49            1 578                      
Total        31.0         1.84         57            1 838                      
Wafi/Golpu/Nambonga                                                             
            Tonnes (Mt)  g/t          Gold (`000    Gold (`000                  
Kg)           Oz)                         
Proved                                                                          
Probable     35.4         0.61         21            694                        
Total        35.4         0.61         21            694                        
* Represents Harmony`s 50% equity portion                                       
In addition to the gold reserves, Harmony also reports its equity (50%) portion 
of reserves for silver, copper and molybdenum from its PNG operations.          
Silver                                                                          
Tonnes (Mt)  g/t          Ag (`000      Ag(`000 Oz)                 
                                      Kg)                                       
Proved       3.8          35.58        134           4 320                      
Probable     24.3         35.52        862           27 726                     
Total        28.1         35.53        996           32 046                     
Copper                                                                          
            Tonnes (Mt)  %            Cu (`000 t)   Cu (M lbs)                  
Proved                                                                          
Probable     35.4         1.13         400           882                        
Total        35.4         1.13         400           882                        
Molybdenum                                                                      
            Tonnes (Mt)  ppm          Mo (`000 t)   Mo (M lbs)                  
Proved                                                                          
Probable     35.4         121.00       4             9                          
Total        35.4         121.00       4             9                          
The Mineral Resources and Mineral Reserves in the summary tables are based on   
information compiled by the following competent persons:                        
Reserves and Resources South Africa:                                            
Jaco Boshoff, Pri.Sci.Nat who has 15 years relevant experience and is registered
with the South African Council for Natural Scientific Professions.              
Reserves and Resources PNG:                                                     
Michael Smith for the Wafi Golpu Mineral Resources, Gregory Job for the Golpu   
Mineral Reserve, James Francis for the Hidden Valley Mineral Resources and Anton
Kruger for the Hidden Valley Mineral Reserve. Messers Smith, Job, Francis and   
Kruger are corporate members of the Australian Institute of Mining and          
Metallurgy and have relevant experience in the type and style of mineralisation 
for which they are reporting, and are `Competent Persons` as defined by the     
code.                                                                           
These competent persons consent to the inclusion in the report of the matters   
based on the information in the form and context in which it appears.  Mr       
Boshoff and and Mr Job are full-time employees of Harmony Gold Mining Company   
Limited Ltd and Mr Smith is a full time employee of Harmony Gold (PNG Services) 
(Pty) Ltd. Mr Francis and Mr Kruger are full-time employees of Newcrest Mining  
Limited. Newcrest is Harmony`s joint venture partner in the Morobe Mining Joint 
Venture in respect of the Hidden Valley mine.                                   
For more details contact:                                                       
Graham Briggs                                                                   
Chief Executive Officer                                                         
on +27(0)83 265 0274                                                            
or                                                                              
Jaco Boshoff                                                                    
Executive: Reserves and Resources                                               
on +27 (0)83 3953810                                                            
or                                                                              
Marian van der Walt                                                             
Executive: Corporate and Investor Relations                                     
on +27 (0)82 888 1242                                                           
Corporate Office:                                                               
Randfontein Office Park                                                         
P O Box 2                                                                       
Randfontein                                                                     
South Africa 1760                                                               
T +27 (11) 411 2000                                                             
www.harmony.co.za                                                               
Sponsor:                                                                        
J.P. Morgan Equities Limited                                                    
Date: 02/08/2010 15:57:01 Supplied by www.sharenet.co.za                     
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