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HAR - Harmony Gold Mining Company Ltd - Harmony announces employee share

Release Date: 15/03/2012 07:30:06      Code(s): HAR
HAR - Harmony Gold Mining Company Ltd - Harmony announces employee share        
ownership plan                                                                  
Harmony Gold Mining Company Ltd                                                 
Incorporated in the Republic of South Africa                                    
Registration number: 1950/038232/06                                             
Share code: HAR                                                                 
ISIN: ZAE000015228                                                              
PRESS RELEASE                                                                   
More than 33,000 employees to become shareholders                               
Johannesburg. Thursday, 15 March 2012. Harmony Gold Mining Company Limited      
(`Harmony` or the `Company`) today announced the launch of its employee share   
ownership plan (ESOP) which will see approximately 33,000 employees             
participating in a direct ownership of the company.                             
The ESOP is an equity-settled share incentive and share appreciation rights     
scheme, in terms of which 4,288,000 ordinary shares in the share capital of the 
Company at par value and 8,576,000 share appreciation rights have been offered  
to these 33,000 Harmony employees.                                              
Says Harmony Chief Executive Officer, Graham Briggs, "It is with great          
excitement that we announce the launch of Harmony`s ESOP, a venture that        
recognises the importance of the employees who sustain our business. They are,  
in essence, our `human gold`. This plan not only benefits our employees, but has
also demonstrated and enhanced the Company`s close relationships with our       
unions. We look forward to reporting on the success of the plan going forward,  
as we share a common interest in delivering returns to all stakeholders."       
Frans Baleni, National Union of Mineworkers (NUM) General Secretary, is pleased 
with the outcome of Harmony`s ESOP process: "NUM believes each and every        
employee at Harmony to be deserving of a portion of the success to which they   
contribute. I`m pleased at the Company`s acknowledgement of this fact. NUM`s    
relationship with Harmony spans many years and will continue to grow as we      
strive to promote the interests of our members and protect their rights." He    
also emphasized that it was time that due recognition was provided for the      
sterling contributions of its members.                                          
Based on the number of shares in issue on 31 December 2011, the Harmony shares  
available for issue in terms of the ESOP may account for ownership of           
approximately 2.9% of the Company. Harmony`s black economic empowerment (BEE)   
status is thus further enhanced.                                                
In 2010, Harmony first engaged with the NUM, UASA and Solidarity over the       
proposed ESOP, offering a minimum of 100 ordinary shares per employee at full   
market value, vesting in equal annual amounts of 20 shares over a five-year     
period. The Company also offered to allocate a minimum of 200 share appreciation
rights per employee at market value, vesting in equal annual amounts of 40 share
appreciation rights over a five-year period. The proposed ESOP was approved by  
Harmony shareholders in December 2010 via the Harmony Employees` Share Trust.   
During 2011, discussions between the unions and Harmony centred on the value    
inherent in the ESOP for employees, and specifically the need to protect        
employee shareholders from the vacillations of the open market. An agreeable    
solution has been reached incorporating a minimum payout guarantee, which is    
concomitantly accompanied by a maximum payout ceiling per share appreciation    
right. Accordingly, the share appreciation component of the ESOP is based on a  
minimum offer of 200 share appreciation rights per employee allocated at the    
market price, with a guaranteed minimum payout of R18 per share appreciation    
right and a concomitant maximum payout of R32 per share appreciation right on   
each vesting date over the five-year period. All non-management employees will  
benefit from the scheme, with the only determining factor being length of       
By way of example, a qualifying employee will receive either a guaranteed       
minimum payout of R3 600 (R18 x 200), or the maximum payout of R6 400 (R32 x    
200) for the share appreciation rights over the five-year period. The employee  
will also receive the full market value of the ordinary shares, which at the    
current average market price of about R100, would amount to R10 000 for the 100 
ordinary shares over the five-year period.                                      
The ESOP was amended and approved by shareholders in December 2011. Compensation
Technologies has been appointed as administrator of the scheme. The scheme will 
be overseen by the Tlhakanelo Employee Share Trust, the trustees of which will  
comprise both management and union representatives.                             
Issued by Harmony Gold Mining Company Limited                                   
15 March 2012                                                                   
For more details contact:                                                       
Graham Briggs                                                                   
Chief Executive Officer                                                         
+27 (0) 83 265 0274 (mobile)                                                    
Marian van der Walt                                                             
Executive: Corporate and Investor Relations                                     
+27 (0) 82 888 1242 (mobile)                                                    
Corporate Office:                                                               
Randfontein Office Park                                                         
P O Box 2                                                                       
South Africa 1760                                                               
T +27 (11) 411 2000                                                             
J.P. Morgan Equities Limited                                                    
Date: 15/03/2012 07:30:05 Supplied by www.sharenet.co.za                     
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