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HAR - Harmony - Press release: Harmony continues to drive its growth strategy

Release Date: 05/05/2011 08:01:03      Code(s): HAR
HAR - Harmony - Press release: Harmony continues to drive its growth strategy   
Harmony Gold Mining Company Limited                                             
Registration number 1950/038232/06                                              
Incorporated in the Republic of South Africa                                    
ISIN: ZAE000015228                                                              
JSE share code: HAR                                                             
("Harmony" or "the company")                                                    
PRESS RELEASE                                                                   
HARMONY CONTINUES TO DRIVE ITS GROWTH STRATEGY                                  
Johannesburg: 5 May 2011: Harmony Gold Mining Company Limited today released its
financial results for the period ending 31 March 2011.                          
"We remain committed to our long term strategy of generating earnings to fund   
growth. We have invested significant capital to build and commission some of the
best South African gold mining assets and the results of these efforts will be  
fully realised in the future.  Our transformational efforts and strategic       
initiatives undertaken over the last few years are all aimed at achieving robust
and sustainable financial results, with better cash costs and improved grade",  
said chief executive officer, Graham Briggs.                                    
Harmony`s strategy also includes a focus on both regional and asset             
diversification. In PNG, it has built a mine producing both gold and silver and 
is currently busy with further exploration in the area which includes 8 000km2  
of its own exploration tenements, in addition to the 3 200km2 held within the   
joint venture with Newcrest. The early findings from Wafi-Golpu have justified  
management`s long held belief that this is a world class asset.                 
Taking a holistic view, Harmony has several world-class mines in South Africa   
which are currently in the build-up phase and these together with Hidden Valley,
will be significant contributors to Harmony`s set production targets.           
Improved discipline and management of seismicity and falls of ground, value     
based safety behaviour and visible leadership from the operational management   
resulted in improved safety at most of our operations.                          
Gold production decreased by 2% quarter on quarter, from 10 055kg to 9 857kg.   
Underground production was only 1% lower at 8 164kg, despite volumes decreasing 
by 3% mainly as a result of the December break. However, tonnage was made up    
with surface tonnes being 2% higher quarter on quarter.                         
Quarter on quarter the rand per kilogram unit cost was kept at bay with a mere  
increase of 1% to R217 802/kg, in comparison to R216 595/kg in the previous     
quarter. This was mainly as a result of the 2% decrease in gold production as   
cash operating cost in Rand terms decreased by 2% (R48 million).                
In R/kg terms the gold price received increased by 3% from R303 354/kg in the   
December 2010 quarter to R312 029/kg in the current quarter. Revenue for the    
March 2011 quarter decreased by 1% as a result of a 330kg (3%) decrease in the  
gold sold.                                                                      
Quarter on quarter the capital expenditure decreased by R168 million (20%).     
Cash operating costs for the March 2011 quarter decreased by R48 million or 2%  
when compared to the previous quarter due to cost savings, decreased electricity
and labour costs.                                                               
Operating profit decreased by 1% to R855 million when compared to the R868      
million recorded in the December 2010 quarter.                                  
Drilling at the Wafi-Golpu project continues to be successful. The latest       
results confirm our previously held belief that this deposit is indeed a world- 
class discovery and the pre-feasibility study will be completed towards the end 
of December 2011.  The latest drill hole results at our Wafi-Golpu JV project   
(50% held by Harmony) have provided the highest mineralisation values to date.  
This project is growing with each new drill hole result and we are confident    
that this will be a mine.                                                       
In conclusion, the chief executive officer, Mr Graham Briggs commented that "the
company is showing significant progress both in the growth of its resources as  
well as its diversity. The key short term objective for us is the build-up of   
our production and to get there, the main focus is on getting the assets, in    
which we have invested considerable amounts of cash over the last few years,    
into full production. Harmony is a company which has dramatically improved the  
quality of its ounces, which will continue to do so with better cash costs and  
free cash flow in the future."                                                  
For more details contact:                                                       
Henrika Basterfield                                                             
Investor Relations Officer                                                      
on +27(0)82 759 1775                                                            
Marian van der Walt                                                             
Executive: Corporate and Investor Relations                                     
on +27(0)82 888 1242                                                            
Corporate Office:                                                               
Randfontein Office Park                                                         
P O Box 2                                                                       
South Africa 1760                                                               
T +27 (11) 411 2000                                                             
5 May 2011                                                                      
J.P. Morgan Equities Limited                                                    
Date: 05/05/2011 08:01:02 Supplied by www.sharenet.co.za                     
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