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HAR - Harmony Gold Mining Company Ltd - Wafi-Golpu Project grows to a Billion

Release Date: 20/07/2011 13:13:38      Code(s): HAR
HAR - Harmony Gold Mining Company Ltd - Wafi-Golpu Project grows to a Billion   
Tonne Resource - Adds to growth in quality ounces; GOLPU`s grade at plus 1%     
copper                                                                          
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                                                                   
WAFI-GOLPU PROJECT GROWS TO A BILLION TONNE RESOURCE - ADDS TO GROWTH IN QUALITY
OUNCES; GOLPU`S GRADE AT PLUS 1% COPPER                                         
Harmony`s Resources and Reserves aligned with strategy                          
For the full press release including tables, technical diagrams and graphs,     
kindly go to the Harmony website on www.harmony.co.za.                          
Johannesburg. Wednesday, 20 July 2011. Harmony Gold Mining Company Limited      
(`Harmony` or `the Company`) is pleased to publish its Statement of Mineral     
Resources and Mineral Reserves as at 30 June 2011, 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 commented, "The Company`s Resource and   
Reserve base support our strategy of producing high quality ounces at lower     
costs. Harmony has invested a great deal in the expansion of its production base
in South Africa and Papua New Guinea (PNG). Our investment in exploration       
continues to pay dividends, with the Wafi-Golpu Resource showing a phenomenal   
57% increase to over 1 billion tonnes - confirming it is one of the highest     
grade copper gold porphyry systems in South East Asia. These excellent results  
validate our long held belief that PNG is a game changing asset for Harmony."   
Briggs added, "We continue to improve our business planning process, using      
benchmarks and targets we believe to be realistic.  Cut off grades have been    
revised, areas which require more geological work and minor reefs have been     
excluded from resources.  Results from extensive underground development and    
borehole drilling during the year have been used to improve the confidence in   
the geological models of our operations. Our `life of mine` plans support our   
commitment to improving the grades from our underground operations, lowering our
cost base and benchmarking our costing parameters - both internally across our  
operations and externally against other gold producers."                        
As at 30 June 2011, Harmony`s Mineral Reserves amounted to 41.6 million ounces  
(Moz) of gold, spread across Harmony`s assets in South Africa and PNG. The      
Reserves of Kusasalethu, Doornkop, Tshepong and Phakisa in South Africa and     
Hidden Valley in PNG now constitute 45% of Harmony`s total Mineral Reserves.    
Once the pre-feasibility study of Wafi-Golpu has been completed, more ounces    
from PNG may be added to Harmony`s reserves.                                    
The reserve declaration excludes Rand Uranium Reserves (which is being held for 
sale), as well as some Evander projects which are no longer included in         
Harmony`s long term mine plans. These exclusions, together with mine depletion, 
resulted in a decrease of 6.5 million ounces year on year, allowing Harmony to  
focus on growing, developing and operating its portfolio of quality assets.     
As at 30 June 2011 attributable gold Mineral Resources are 163.9 Moz. Harmony`s 
PNG Resources represent 10% of Harmony`s total Resources at 16.3 Moz - a 51%    
increase in the total amount of resources from PNG, largely due to the          
significant increase in the Wafi-Golpu Resource (jointly (50/50) held by Harmony
and Newcrest Mining Limited (Newcrest) in the Morobe Mining Joint Venture).     
The Wafi-Golpu Resource statement confirms Harmony`s long held belief that Golpu
is truly a world-class discovery. On a 100% basis, Golpu alone now hosts a      
Resource of 869Mt, containing 19.3Moz of gold and 9.0 million tonnes (Mt) of    
copper (62Moz on a gold equivalent(1) basis).  This represents a significant    
year-on-year increase, with an additional 368Mt (73% increase), comprising 4.2Mt
copper (88% increase) and 10.5Moz of gold (119% increase) (see Table 1 - refer  
website). The deposit has grown to the north and at depth, and the grade has    
also increased. The Resource remains open at depth and to the north, with       
extension and infill drilling continuing (see Figure 1 - refer website).        
Graham Briggs further commented, "The Golpu deposit benchmarks as one of the    
highest grade copper-gold deposits in South East Asia, and there is potential to
improve this further. The ultimate size of the system, including the gold       
mineralisation, is yet to be realised, but significant potential remains for    
additional growth in the district or as additional mineralisation centres       
aligned along the Wafi transfer structure. We are increasing the drill fleet    
from 5 to 8 rigs over the coming months to realise this potential".             
The Golpu copper-gold deposit is a nested porphyry system that comprises at     
least three separate mineralised intrusions. Potential for additional           
mineralised intrusives along strike from Golpu, at Nambonga, and for additional 
feeder zones around the margins and at depth below the diatreme is high, with   
the area hugely prospective and underexplored (see Figure 2 - refer website).   
The Wafi epithermal gold system is also expanding with new zones of gold        
mineralisation discovered off the northern margin of the diatreme in areas never
drill tested previously.                                                        
The increase in the Golpu Resource has increased the Wafi Golpu System Resource 
to over 1 billion tonnes, which is displayed in table 2 (refer website).        
The Wafi-Golpu Resource has world class credentials, compared with other similar
projects.  See the graph (Fig. 3 - refer website).  Wafi-Golpu is of substantial
size, with the resource having the highest copper and gold grade amongst its    
peers.                                                                          
Wafi-Golpu has grown into a tier one asset in its own right, with several first 
class gold and copper-gold targets being developed along strike on the Wafi     
Transfer structure (see Figure 4 - refer website).                              
Outside of the Morobe Mining Joint Venture, Harmony`s exploration strategy of   
targeting key prospective terrains to create shareholder value through the      
discovery of large long life gold orebodies, is proving successful. The New     
Guinea mobile belt is emerging as a premier copper-gold (Cu-Au) belt with recent
discoveries and resource expansions at Wafi-Golpu, Yandera, and Frieda River. At
Mount Hagen, at the Kurunga prospect, Harmony is currently drill testing one of 
the highest order Cu-Au geochemical anomalies in the entire belt (see Figure 5 -
refer website). Initial results are highly encouraging with numerous vein       
intervals of +0.1% copper, accompanied by high grade molybdenum (Mo) assays,    
which confirm the prospectivity of the anomaly and highlight the porphyry Cu-Au-
Mo potential.                                                                   
Please refer to Annexure A, included in this press release, which provides all  
the underlying detail to the information provided.                              
ANNEXURE A                                                                      
In converting the Mineral Resources to Mineral Reserves the following parameters
were applied:                                                                   
a gold price of US$1 150/oz                                                     
an exchange rate of USD/ZAR 7.57 for South Africa                               
the above parameters resulted in a gold price of                                
R280 000/kg                                                                     
the Hidden Valley mine and Wafi-Golpu project in the Morobe Mining Joint Venture
used prices of AUD1133/oz Au, AUD18.00/oz Ag, AUD18.00/lb Mo and AUD3.34/lb Cu  
at an exchange rate of US/AUD 0.75 and PGK/AUDK 2.30                            
Harmony`s South African Resources to Reserves conversion process and two        
operations, Tshepong mine and Kusasalethu mine, 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 will be 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
FY2011 annual report, which will be made available to shareholders towards the  
end of September 2011. The annual report will also include the latest update on 
Harmony`s uranium Resources.                                                    
We use certain terms in this document 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 Kg)  Gold (`000 Oz)            
Measured     93.7           9.08       851             27 365                   
Indicated    116.4          8.51       991             31 863                   
Inferred     209.2          7.12       1490            47 896                   
Total        419.3          7.95       3332            107 124                  
SA projects below infrastructure                                                
            Tonnes (Mt)    g/t        Gold (`000 Kg)  Gold (`000 Oz)            
Measured     -              -          -               -                        
Indicated    74.4           8.20       610             19 607                   
Inferred     57.0           3.87       221             7 089                    
Total        131.4          6.32       831             26 696                   
SA surface operations                                                           
            Tonnes (Mt)    g/t        Gold (`000 Kg)  Gold (`000 Oz)            
Measured     393.0          0.31       121             3 890                    
Indicated    890.6          0.29       257             8 259                    
Inferred     82.3           0.62       51              1 630                    
Total        1365.9         0.31       429             13 779                   
South Africa Total                                                              
             Tonnes (Mt)   Gold (`000 Kg)   Gold (`000 Oz)                      
Measured      486.7         972              31 255                             
Indicated     1 081.4       1 858            59 729                             
Inferred      348.5         1 761            56 615                             
Total         1 916.6       4 591            147 599                            
Papua New Guinea                                                                
Hidden Valley mine                                                              
Tonnes (Mt)*    g/t        Gold (`000 Kg)*  Gold (`000  Equity      
                                                        Oz)*        Gold        
                                                                    (`000       
                                                                    Oz)**       
Measured     8.1             1.74       14               454         227        
Indicated    95.9            1.57       151              4 852       2 426      
Inferred     17.2            1.24       21               686         343        
Total        121.2           1.54       186              5 992       2 996      
Wafi-Golpu system                                                               
          Tonnes      g/t       Gold (`000 Kg)*    Gold (`000   Equity Gold     
          (Mt)*                                    Oz)*         (`000 Oz)**     
Measured   -           -         -                  -            -              
Indicated  812.2       0.76      619                19 918       9 959          
Inferred   199.4       1.04      207                6 658        3 329          
Total      1 011.6     0.82      826                26 576       13 288         
*    Represents Harmony / Newcrest joint venture 100% portion                   
**   Represents Harmony`s 50% portion                                           
Equivalent gold ounces                                                          
Hidden Valley mine                                                              
               Equivalent      Equity                                           
Gold (`000      equivalent                                       
               Oz)*            gold (`000                                       
                               Oz)**                                            
Measured        542             271                                             
Indicated       5 914           2 957                                           
Inferred        830             415                                             
Total           7 286           3 643                                           
Wafi-Golpu system                                                               
Equivalent      Equity                                           
               Gold (`000      equivalent                                       
               Oz)*            gold (`000                                       
                               Oz)**                                            
Measured        -               -                                               
Indicated       56 521          28 261                                          
Inferred        13 370          6 685                                           
Total           69 891          34 946                                          
*    Represents Harmony / Newcrest joint venture 100% portion - gold, silver and
copper                                                                          
**   Represents Harmony`s 50% portion - gold, silver and copper                 
In addition to the gold resources, Harmony also reports on silver, copper and   
molybdenum from its PNG operations.                                             
Silver                                                                          
         Tonnes     g/t        Ag (`000  Ag (`000   Equity                      
         (Mt)*                 Kg)*      Oz)*       Silver                      
(`000 Oz)**                 
Measured  8.0        28.81      232       7 474      3 737                      
Indicated 90.2       31.24      2 816     90 534     45 267                     
Inferred  16.0       23.84      383       12 312     6 156                      
Total     114.2      30.03      3 431     110 320    55 160                     
Copper                                                                          
         Tonnes     %       Cu           Cu        Equity                       
         (Mt)*              (`000 t)*    (M lbs)*  Copper                       
(M lbs)**                    
Measured  -          -       -            -         -                           
Indicated 749.0      1.02    7 640        16 842    8 421                       
Inferred  159.5      0.88    1 400        3 086     1 543                       
Total     908.5      1.00    9 040        19 930    9 965                       
Molybdenum                                                                      
         Tonnes     ppm       Mo          Mo        Equity                      
         (Mt)*                (`000 t)*   (M lbs)*  Molybdenum                  
(M lbs)**                   
Measured  -          -         -           -         -                          
Indicated 749.0      99.00     74          164       82                         
Inferred  119.7      76.00     10          20        10                         
Total     868.7      95.83     84          184       92                         
*    Represents Harmony / Newcrest joint venture 100% portion                   
**   Represents Harmony`s 50% portion                                           
Papua New Guinea total **                                                       
Tonnes (Mt)  g/t          Gold          Gold                        
                                      (`000 Kg)     (`000 Oz)                   
Measured     4.0          1.74         7             227                        
Indicated    454.1        0.85         385           12 385                     
Inferred     108.3        1.05         114           3 672                      
Total        566.4        0.89         506           16 284                     
**   Represents Harmony`s 50% portion                                           
Harmony Group Total **                                                          
Tonnes (Mt)  Gold         Gold                                      
                         (`000 Kg)    (`000 Oz)                                 
Measured     490.8        979          31 482                                   
Indicated    1 535.5      2 243        72 114                                   
Inferred     456.8        1 875        60 287                                   
Total        2 483.1      5 097        163 883                                  
**   Represents SA Total and Harmony`s 50% portion from PNG                     
Please refer to website for Mineral Resources reconciliation graph.             
MINERAL RESERVE STATEMENT                                                       
The following table shows more detail of the year-on-year Reserves              
reconciliation:                                                                 
Mineral Reserves reconciliation: FY2010 to FY2011                               
Gold       Gold                        
                                         (tonnes)   (million Oz)                
Balance at June 2010                      1 496      48.1                       
                                                                                
Reductions                                                                      
 Mined during FY2011                     (47)       (1.5)                       
 Mine closures                           (2)        (0.1)                       
 Rand Uranium - non-current assets       (37)       (1.2)                       
held for sale                                                                   
 Projects SA - Poplar & Libra            (143)      (4.6)                       
Increases                                                                       
 Geology and scope changes - SA          27         0.9                         

Balance at June 2011                      1 294      41.6                       
Please refer to website for Mineral Reserves reconciliation graph.              
The following tables show the Mineral Reserves for the South African and Papua  
New Guinea operations and projects:                                             
SA underground operations                                                       
            Tonnes       g/t          Gold          Gold                        
            (Mt)                      (`000 Kg)     (`000 Oz)                   
Proved       51.8         6.18         320           10 295                     
Probable     66.0         6.38         421           13 542                     
Total        117.8        6.29         741           23 837                     
SA projects below infrastructure                                                
Tonnes       g/t          Gold          Gold                        
            (Mt)                      (`000 Kg)     (`000 Oz)                   
Proved       -            -            -             -                          
Probable     26.2         8.08         211           6 790                      
Total        26.2         8.08         211           6 790                      
SA surface                                                                      
            Tonnes       g/t          Gold          Gold                        
            (Mt)                      (`000 Kg)     (`000 Oz)                   
Proved       386.6        0.29         112           3 603                      
Probable     624.5        0.24         153           4 909                      
Total        1 011.1      0.26         265           8 512                      
South Africa Total                                                              
Tonnes       Gold         Gold                                      
            (Mt)         (`000 Kg)    (`000 Oz)                                 
Proved       438.4        432          13 898                                   
Probable     716.7        785          25 241                                   
Total        1 155.1      1 217        39 139                                   
Papua New Guinea*                                                               
Hidden Valley mine                                                              
         Tonnes     g/t     Gold         Gold       Equity                      
(Mt)*              (`000 Kg)*   (`000 Oz)* Gold**                      
                                                    (`000 Oz)                   
Proved    7.3        1.79    13           422        211                        
Probable  58.5       1.67    98           3 142      1 571                      
Total     65.8       1.68    111          3 564      1 782                      
Golpu                                                                           
         Tonnes     g/t     Gold         Gold       Equity Gold                 
         (Mt)*              (`000 Kg)*   (`000 Oz)* (`000 Oz)**                 
Proved    -          -       -            -          -                          
Probable  70.8       0.61    43           1 388      694                        
Total     70.8       0.61    43           1 388      694                        
*    Represents Harmony / Newcrest joint venture 100% portion                   
**   Represents Harmony`s 50% portion                                           
Equivalent gold ounces                                                          
Hidden Valley mine                                                              
               Equivalent      Equity                                           
Gold            equivalent                                       
               (`000 Oz)*      gold                                             
                               (`000 Oz)**                                      
Proved          502             251                                             
Probable        3 856           1 928                                           
Total           4 358           2 179                                           
Golpu                                                                           
               Equivalent      Equity                                           
Gold            equivalent                                       
               (`000 Oz)*      gold                                             
                               (`000 Oz)**                                      
Proved          -               -                                               
Probable        5 120           2 560                                           
Total           5 120           2 560                                           
*    Represents Harmony / Newcrest joint venture 100% portion - gold, silver and
copper                                                                          
**   Represents Harmony`s 50% portion - gold, silver and copper                 
In addition to the gold Reserves, Harmony also reports on silver, copper and    
molybdenum from its PNG operations.                                             
Silver                                                                          
Tonnes     g/t      Ag          Ag          Equity                     
         (Mt)*               (`000 Kg)*  (`000 Oz)*  Silver                     
                                                     (`000 Oz)**                
Proved    7.3        29.24    214         6 894       3 447                     
Probable  53.5       35.38    1 895       60 914      30 457                    
Total     60.8       34.64    2 109       67 808      33 904                    
Copper                                                                          
         Tonnes     %          Cu        Cu         Equity                      
(Mt)*                 (`000 t)* (M lbs)*   Copper                      
                                                    (M lbs)**                   
Proved    -          -          -         -          -                          
Probable  70.8       1.10       778       1 716      858                        
Total     70.8       1.10       778       1 716      858                        
Molybdenum                                                                      
         Tonnes     ppm      Mo          Mo         Equity                      
         (Mt)*               (`000 t)*   (M lbs)*   Molybdenum                  
(M lbs)**                   
Proved    -          -        -           -          -                          
Probable  70.8       121.00   8           18         9                          
Total     70.8       121.00   8           18         9                          
*    Represents Harmony / Newcrest joint venture 100% portion                   
**   Represents Harmony`s 50% portion                                           
Papua New Guinea Total **                                                       
            Tonnes       g/t          Gold          Gold                        
(Mt)                      (`000 Kg)     (`000 Oz)                   
Proved       3.7          1.79         7             211                        
Probable     64.6         1.09         70            2 265                      
Total        68.3         1.13         77            2 476                      
**   Represents Harmony`s 50% portion                                           
Harmony Group Total **                                                          
            Tonnes       Gold         Gold                                      
            (Mt)         (`000 Kg)    (`000 Oz)                                 
Proved       442.1        439          14 109                                   
Probable     781.3        855          27 506                                   
Total        1 223.4      1 294        41 615                                   
**   Represents SA Total and Harmony`s 50% portion from PNG                     
Gold equivalent ounces are calculated assuming a US$1150/oz Au, US$2.50/lb Cu   
and US$13.50/oz Ag with 100% recovery for all metals                            
The Mineral Resources and Mineral Reserves in the press release and 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 17 years relevant experience and is registered
with the South African Council for Natural Scientific Professions.              
Reserves and Resources PNG:                                                     
Stuart Hayward 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. Messrs Job, Francis and Kruger are
corporate members of the Australian Institute of Mining and Metallurgy and Mr   
Hayward is a member of the Australian Institute of Geoscientists and all 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  and Mr Hayward is a full time employee of Wafi Golpu Services Limited. 
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 and Wafi-Golpu project.                    
For more details contact:                                                       
Graham Briggs                                                                   
Chief Executive Officer                                                         
+27 83 265 0274 (mobile)                                                        
Jaco Boshoff                                                                    
Executive: Reserves, New Business and Projects                                  
+27 83 395 3810 (mobile)                                                        
Greg Job                                                                        
Harmony Gold (PNG Services) Pty Ltd:  Executive - Growth & Resource Development 
+61 417 172 387 (mobile)                                                        
Marian van der Walt                                                             
Executive: Corporate and Investor Relations                                     
+27 82 888 1242 (mobile)                                                        
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: 20/07/2011 13:13:37 Supplied by www.sharenet.co.za                     
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