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HAR - Harmony Gold Mining Company Ltd - Excellent results at Harmony`s PNG

Release Date: 25/01/2011 07:30:01      Code(s): HAR
HAR - Harmony Gold Mining Company Ltd - Excellent results at Harmony`s PNG      
Harmony Gold Mining Company Ltd                                                 
Incorporated in the Republic of South Africa                                    
Registration number: 1950/038232/06                                             
Share code: HAR                                                                 
ISIN: ZAE000015228                                                              
PRESS RELEASE                                                                   
EXCELLENT RESULTS AT HARMONY`S PNG OPERATIONS                                   
Improved production figures and significant exploration intercepts reported     
Johannesburg. 25 January 2011. Harmony Gold Mining Company Limited (Harmony) is 
pleased to announce excellent quarterly production results at its Hidden Valley 
mine in Papua New Guinea (PNG), in line with its post-commissioning production  
ramp-up plan. In addition, further significant exploration drill hole intercepts
at the Wafi Golpu deposit were obtained during the quarter.                     
Both of these assets are part of the Company`s 50% interest in the Morobe Mining
Joint Venture.                                                                  
Gold production at Hidden Valley improved by 23%, quarter on quarter, at 26,584 
ounces of gold (Harmony`s 50%) produced, due to higher gold feed grades and     
improved recoveries. Silver production was 44% higher at 191,327 ounces of      
silver (Harmony`s 50%), as a result of higher recoveries. The average grade for 
the quarter was 2.21 g/t Au, while the silver grade was 26.6 g/t Ag, with unit  
costs lower at R195 605/kg  (US$884/oz), in comparison to  R244 720/kg (US      
$1042/oz) in the previous quarter.                                              
"These production results, together with the excellent safety performance by the
mine during the quarter, demonstrate that our strategy of investing in safe,    
quality growth projects is starting to deliver" says Harmony chief executive,   
Graham Briggs.                                                                  
In October 2010, Harmony reported on drilling of the Wafi Golpu deposit, which  
extended the mineralisation beyond the porphyry copper-gold resource of 16Moz of
gold and 4.8Mt of copper. Further drilling during the December 2010 quarter has 
again extended the deposit.                                                     
Golpu drill results include:                                                    
WR359          860m @ 1.37% Cu and 0.70g/t Au (2.68g/t Au equivalent*) from     
WR361     186m @ 2.01% Cu and 0.35g/t Au (3.25g/t Au equivalent*) from 446m     
WR362     274m @ 1.07% Cu and 0.29g/t Au (1.83g/t Au equivalent*) from 160m     
WR363     595m @ 2.03% Cu and 1.65g/t Au (4.58g/t Au equivalent*) from 914m     
In addition, drill hole WR377, has intersected well-mineralised porphyry at a   
depth of 1 091m down hole which, together with the significant intersections    
above, has extended the high grade porphyry more than 200m north of the current 
resource outline ( please refer to the press release on our website             
www.harmony.co.za to view the section and plan view).                           
Other drilling has focused on pre-feasibility study requirements to gain        
geotechnical and metallurgical data. The metallurgical drill holes targeted     
zones in the Wafi gold lodes and have returned significant intersections        
consistent with the known resource, but with an increased grade. Significant    
intersections include:                                                          
WR370     202m @ 1.77g/t Au from surface                                        
WR371     160m @ 3.35g/t Au from 41m                                            
"The Golpu resource continues to expand to the north as ongoing drilling defines
further mineralization, providing us with added confidence that we are well on  
track in achieving our previously stated exploration target of 30Moz of gold and
8Mt of copper.  Golpu will be a future world class copper gold mine", says      
Harmony chief executive, Graham Briggs.  "Continued hard work on ramping up     
production at Hidden Valley post commissioning is paying off and we are more    
than pleased with our offshore growth profile", he added.                       
Note: The Measured and Indicated Mineral Resources are inclusive of those       
Mineral Resources modified to produce the Ore Reserves. The estimates of Ore    
Reserves and Mineral Resources in this statement were prepared in accordance    
with the standards set out in the "Australasian Code for Reporting of           
Exploration Results, Mineral Resources and Ore Reserves - The JORC Code"        
(December 2004) as published by the Joint Ore Reserve Committee of the          
Australian Institute of Mining and Metallurgy, Australian Institute of          
Geoscientists and Minerals Council of Australia (JORC) The JORC Code is the     
accepted reporting standard for the Australian Stock Exchange (ASX).            
The Exploration Results, Mineral Resources and Ore Reserves in the summary      
tables and are based on information compiled by Greg Job who is corporate member
of the Australian Institute of Mining and Metallurgy and who has relevant       
experience of a `competent person` as defined by the code for reporting of      
Mineral Resources and Ore Reserves in relation to the mineralisation being      
reported on and consents to the inclusion in the report of the matters based on 
his information in the form and context in which it appears. Greg Job is a full-
time employee of Harmony Gold Mining Company Ltd.                               
Refer to www.harmony.co.za for details on Wafi Golpu Resources and the Golpu    
exploration target guidance.                                                    
* Gold equivalents calculated using a gold price of US$ 950/oz and copper price 
of US$2.00 lb and assuming 100% recovery for all metals.                        
For more details contact:                                                       
Johannes van Heerden                                                            
CEO South East Asia                                                             
+27 83 292 1650 (mobile)                                                        
Graham Briggs                                                                   
Chief Executive Officer                                                         
+27 83 265 0274 (mobile)                                                        
Marian van der Walt                                                             
Executive: Corporate and Investor Relations                                     
+27 82 888 1242 (mobile)                                                        
Henrika Basterfield                                                             
Investor Relations Officer                                                      
+27 82 759 1775 (mobile)                                                        
+27 11 411 2314(office)                                                         
Corporate Office:                                                               
Randfontein Office Park                                                         
P O Box 2                                                                       
South Africa 1760                                                               
T: +27 11 411 2000                                                              
J.P. Morgan Equities Limited                                                    
Date: 25/01/2011 07:30:01 Supplied by www.sharenet.co.za                     
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