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HARMONY GOLD MINING COMPANY LIMITED - Golpu gold equivalent reserve ounces significantly enhances value of Harmonys asset portfolio

Release Date: 29/08/2012 07:05:00      Code(s): HAR       PDF(s):  
Golpu gold equivalent reserve ounces significantly enhances value of Harmony’s asset portfolio

Harmony Gold Mining Company Limited
("Harmony" or "Company")
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
JSE Share code: HAR
NYSE Share code: HMY
ISIN: ZAE000015228

Golpu gold equivalent reserve ounces significantly enhances
value of Harmony's asset portfolio

- Harmony's gold equivalent reserves increases 31% year on year to
  52.9 Million ounces.
- Golpu* reserve of 450 million tonnes at 1.21% copper and 0.86 g/t
  gold for 12.4 Moz gold and 5.4 Million tonnes copper declared.

Johannesburg. Wednesday, 29 August 2012. 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 2012, 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, "Papua New Guinea (PNG) has
become one of the world's premier new gold regions. As part of Harmony's strategy to
diversify internationally, we have increased our exploration expenditure significantly over
the last 3 years. It is thus pleasing to see this investment has significantly enhanced the
value proposition of the Company. Gold equivalent reserve ounces in PNG now represent
42% of Harmony's total reserves in comparison to 11% as at 30 June 2011."


Briggs added, "In South Africa our world-class mines in build-up represent 32% of our
total gold equivalent mineral reserves. These mines, together with Wafi-Golpu in PNG,
are the solid foundation on which Harmony will in the long-term increase gold production,
reserves and profits."


As at 30 June 2012, Harmony's attributable gold equivalent Mineral Reserves in South
Africa and PNG amount to 52.9 million ounces (Moz), which represents a 31% annual
increase in declared reserves. The increase is largely due to the increase in mineral
reserves in PNG following the completion of the pre-feasibility study at Golpu*. As drilling
at Golpu continues, more ounces from PNG may be added to Harmony's Reserves.

*Jointly held by Harmony and Newcrest Mining Limited in a 50/50 joint venture

Figure 1. Geographical distribution of the Mineral Reserves (Please see PDF)

As at 30 June 2012 attributable gold equivalent Mineral Resources are 150.2 Moz, an 8% decrease year on year.
The decrease is largely due to not including the resources from the Evander assets being held for sale.
Harmony's PNG Gold Equivalent Resources at 41.2 Moz now represent 27% of Harmony's total Resources
(Figure 2).

Figure 2. Geographical distribution of the Mineral Resources (Please see PDF)

The Golpu pre-feasibility study Reserve and Resource statement validates management's long held belief that
Golpu is truly a world-class discovery and a company-changer for Harmony. On a 100% basis, Golpu alone now
hosts a high grade, quality reserve of 450Mt, containing 12.4Moz of gold and 5.4 million tonnes (Mt) of copper
(38.9Moz on a gold equivalent(1) basis).

Table 1. Golpu Mineral Resources on a 100% basis

                       Grade         Contained Metal          Gold   
                                                        Equivalent   
       M tonnes   Au g/t    Cu%     Au Moz      Cu Mt          Moz   
2010        501     0.54   0.96        8.8        4.8           32   
2011        869     0.69   1.03       19.3        8.9           62   
2012      1 000     0.63   0.90       20.3        9.0         65(1)   


1. Gold equivalent ounces are calculated assuming a US$1400/oz Au,
US$3.50/lb Cu and US$25.00/oz Ag with 100% recovery for all metals

Table 1 above depicts the resource changes at Golpu on a 100% basis during the previous three years. It is worth
noting that recent high grade intercepts from continued drilling on the ore body will further expand the resource in
future resource declarations (Figure 3), as the later results were not included in the pre-feasibility study.


Whilst the Golpu Resource is the largest, it is not the only mineralised body within the Wafi-Golpu complex. A
2.5km square around the diatreme (shown below in Figure 3) contains the Wafi and Nambonga Resources and
significant other mineralisation yet to be fully tested. Golpu has understandably been the focus of our drilling this
year, but other mineralisation continues to be found.        For example, the Northern Zone recently returned a
significant intercept of 157m @ 1.0g/t Au when a drill hole targeting the northern extension of Golpu passed
through this area. Golpu itself remains open at depth and to the north east.

Figure 3. The 2.5km square around the Wafi Golpu diatreme host the Golpu, Wafi and Nambonga Resource and other
significant mineralisation yet to be fully tested.
(Please see PDF for Plan View)

Regionally, the Wafi Transfer structure is dominated by copper and gold geochemical anomalies which are being
systematically tested by the exploration department. Many of these anomalies fall within 10km of Golpu and there
is significant potential to increase the Resources in the Wafi Golpu region.

Figure 4. Regional geology showing the Wafi Transfer Zone (Please see PDF)

Table 2. Golpu Mineral Reserve on a 100% basis

                       Grade        Contained Metal           Gold   
                                                        Equivalent   
       M tonnes   Au g/t    Cu%     Au Moz      Cu Mt          Moz   
2010         71     0.61   1.13        1.4        1.8           10   
2011         71     0.61   1.13        1.4        1.8           10   
2012        450     0.86   1.21       12.4        5.4       38.9(1)   


1. Gold equivalent ounces are calculated assuming a US$1400/oz Au, US$3.50/lb Cu and US$25.00/oz Ag with 100% recovery for all
   metals

Table 2 shows the year on year changes in the Golpu Reserve. The 2012 Golpu Reserve extracts ore from a two
lift block cave. Declines will be used for primary ore haulage and shafts will be used for early access, ventilation
and emergency egress. Processing will be via a conventional copper floatation plant with a copper gold
concentrate transported 70km to the Port of Lae for shipping to market.

The entirety of the Resource is not mined in the pre-feasibility study and therefore potential Reserve upside exist
with a third lift to be mined (Figure 5). Recent drilling also suggests that the Lift 1 ore body may extend to the
north and, importantly, closer to surface. The Resource is open at depth and to the north east. The 8 rig drill
programme is continuing and an additional drill fleet is being considered to expedite ore body growth and
definition.


Figure 5. Golpu ore body and associated mining lifts from the pre-feasibility study (Please see PDF)

More information on the results of the Golpu pre-feasibility study will be shared at Harmony's Investor Day held
on 29 August 2012.

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$1 400/oz
- an exchange rate of USD/ZAR 7.55
- the above parameters resulted in a gold price of R340 000/kg
- the Hidden Valley mine and Wafi-Golpu project in the Morobe Mining Joint Venture used prices of
  US$1 250/oz Au, US$21/oz Ag, US$15/lb Mo and AUD3.10/lb Cu at an exchange rate of US/AUD 0.90
- Gold equivalent ounces are calculated assuming a US$1400/oz Au, US$3.50/lb Cu and US$25.00/oz Ag
  with 100% recovery for all metals

Harmony's South African Resources to Reserves conversion process and three operations, Doornkop mine, Joel
mine and Kalgold 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 have been 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 FY2012 annual report, which
will be made available to shareholders towards the end of September 2012. 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                      89.6             8.51               762           24 499
Indicated                    104.9             8.07               846           27 201
Inferred                     209.4             7.01             1 467           47 176
Total                        403.9             7.61             3 075           98 876


SA surface operations

                        Tonnes (Mt)             g/t    Gold ('000 Kg)   Gold ('000 Oz)
Measured                      366.6            0.28               102            3 273
Indicated                     685.3            0.27               182            5 847
Inferred                       62.1            0.48                30              967
Total                       1 114.0            0.28               314           10 087


South Africa Total

                        Tonnes (Mt)   Gold ('000 Kg)   Gold ('000 Oz)
Measured                      456.2              864           27 772
Indicated                     790.1            1 028           33 048
Inferred                      271.6            1 497           48 143
Total                       1 517.9            3 389          108 963

Papua New Guinea

Hidden Valley mine

                   Tonnes (Mt) *   g/t   G   Gold ('000 Kg) *   Gold ('000 Oz) *    Equity Gold   
                                                                                   ('000 Oz) **   
Measured                     1.5      1.20                  2                 58             29   
Indicated                  146.6      1.32                194              6 238          3 119   
Inferred                    11.1      1.08                 12                386            193   
Total                      159.2      1.31                208              6 682          3 341   


Wafi-Golpu system                                                                  
                   Tonnes (Mt) *       g/t   Gold ('000 Kg) *   Gold ('000 Oz) *    Equity Gold   
                                                                                   ('000 Oz) **   
Measured                       -         -                  -                  -              -   
Indicated                  920.0      0.77                705             22 678         11 339   
Inferred                   252.0      0.70                177              5 662          2 831   
Total                    1 172.0      0.75                882             28 340         14 170   


* Represents Harmony / Newcrest joint venture 100% portion
** Represents Harmony's 50% portion

Equivalent gold ounces

Hidden Valley mine

                    Equivalent Gold ('000 Oz) *   Equity equivalent gold   
                                                            ('000 Oz) **   
Measured                                     76                       38   
Indicated                                 8 192                    4 096   
Inferred                                    512                      256   
Total                                     8 780                    4 390   


Wafi-Golpu system                                                          
                    Equivalent Gold ('000 Oz) *   Equity equivalent gold   
                                                            ('000 Oz) **   
Measured                                      -                        -   
Indicated                               59  768                   29 884   
Inferred                                 13 878                    6 939   
Total                                    73 646                   36 823   


* 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 (Mt) *    g/t   Ag ('000 Kg) *   Ag ('000 Oz) * *   Equity Silver   
                                                                        ('000 Oz) **   
Measured              1.5   19.2               28                900             450   
Indicated           950.5    4.5            4 295            138 086          69 043   
Inferred            240.1    2.2              519             16 678           8 339   
Total              1192.1    4.1            4 842            155 664          77 832   


Copper                                                                             
             Tonnes (Mt) *      %   Cu ('000 t) *   Cu (M lbs) *   Equity Copper   
                                                                      (M lbs) **   
Measured                 -      -               -              -               -   
Indicated            810.0   0.92           7 452         16 429           8 215   
Inferred             230.0   0.70           1 604          3 536           1 768   
Total              1 040.0   0.87           9 056         19 965           9 983   


Molybdenum                                                                         
             Tonnes (Mt) *    ppm   Mo ('000 t) *   Mo (M lbs) *          Equity   
                                                                      Molybdenum   
                                                                      (M lbs) **   
Measured                 -      -               -              -               -   
Indicated            810.0    100              81            179              90   
Inferred             190.0     75              14             31              15   
Total              1 000.0     95              95            210             105   


* Represents Harmony / Newcrest joint venture 100% portion
** Represents Harmony's 50% portion

Papua New Guinea including gold equivalents**

            Tonnes (Mt)   Gold ('000 Kg)   Gold ('000 Oz)   
Measured            0.7                1               38   
Indicated         533.3            1 057           33 980   
Inferred          131.6              224            7 195   
Total             665.6            1 282           41 213   


** Represents Harmony's 50% portion


Harmony Group including gold equivalents**

            Tonnes (Mt)   Gold ('000 Kg)   Gold ('000 Oz)   
Measured          457.0              865           27 810   
Indicated       1 323.4            2 085           67 028   
Inferred          403.1            1 721           55 338   
Total           2 183.5            4 671          150 176   


** Represents SA Total and Harmony's 50% portion from PNG

Gold Equivalent Mineral Resources Reconciliation - FY11 vs FY12
(Please see PDF for Graph)

MINERAL RESERVE STATEMENT

The following table shows more detail of the year-on-year Reserves reconciliation:

Mineral Reserves reconciliation: FY2011 to FY2012

                                Gold (tonnes)   Gold (million Oz)   
Balance at June 2011                    1 294                41.6   
Reductions                                                          
Evander held for sale                   (249)               (8.0)   
Mined during FY2012                      (47)               (1.5)   
Increases                                                           
Geology and Scope changes SA               40                 1.3   
PNG gold and gold equivalents             607                19.5   
Balance at June 2012                    1 645                52.9   


Gold Equivalent Mineral Reserves Reconciliation - FY11 vs FY12
(Please see PDF for Graph)

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 Kg)   Gold ('000 Oz)
Proved                        56.5    5.85               331           10 627
Probable                      63.3    6.21               393           12 635
Total                        119.8    6.04               724           23 262


SA surface operations

                        Tonnes (Mt)    g/t    Gold ('000 Kg)   Gold ('000 Oz)
Proved                       366.6    0.28               102            3 273
Probable                     523.8    0.26               136            4 389
Total                        890.4    0.27               238            7 662

South Africa Total

                     Tonnes (Mt)   Gold ('000 Kg)   Gold ('000 Oz)
Proved                     423.1              432           13 900
Probable                   587.1              530           17 024
Total                    1 010.2              962           30 924

Papua New Guinea*

Hidden Valley mine

                   Tonnes (Mt) *    g/t   Gold ('000 Kg) *   Gold ('000 Oz) *   Equity Gold **   
                                                                                     ('000 Oz)   
Proved                       1.5   1.20                  2                 58               29   
Probable                    77.4   1.52                118              3 794            1 897   
Total                       78.9   1.52                120              3 852            1 926   


Wafi-Golpu System                                                                 
                   Tonnes (Mt) *    g/t   Gold ('000 Kg) *   Gold ('000 Oz) *      Equity Gold   
                                                                                  ('000 Oz) **   
Proved                         -      -                  -                  -                -   
Probable                   450.0   0.86                387             12 442            6 221   
Total                      450.0   0.86                387             12 442            6 221   


* Represents Harmony / Newcrest joint venture 100% portion
** Represents Harmony's 50% portion

Equivalent gold ounces

Hidden Valley mine

           Equivalent Gold ('000 Oz) *   Equity equivalent gold   
                                                   ('000 Oz) **   
Proved                              74                       37   
Probable                         4 962                    2 481   
Total                            5 036                    2 518   


Golpu                                                             
           Equivalent Gold ('000 Oz) *   Equity equivalent gold   
                                                   ('000 Oz) **   
Proved                               -                        -   
Probable                        38 991                   19 496   
Total                           38 991                   19 496   


* 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 (Mt) *    g/t   Ag ('000 Kg) *    Ag ('000 Oz) *   Equity Silver
                                                                      ('000 Oz) **
Proved               1.5   19.5               28             916               458
Probable            72.8   27.9            2 032          65 308            32 654
Total               74.3   27.7            2 060          66 224            33 112


Copper 

           Tonnes (Mt) *      %     Cu ('000 t) *    Cu (M lbs) *    Equity Copper
                                                                        (M lbs) **
Proved                -       -                -                -                -
Probable          450.0    1.21            5 446           12 006            6 003
Total             450.0    1.21            5 446           12 006            6 003

Papua New Guinea including gold equivalents**

           Tonnes (Mt)   Gold ('000 Kg)   Gold ('000 Oz)   
Proved             0.8                1               38   
Probable         263.7              684           21 976   
Total            264.5              685           22 014   


** Represents Harmony's 50% portion

Harmony Group including gold equivalents **

                       Tonnes (Mt)            Gold ('000 Kg)   Gold ('000 Oz)
Proved                        423.9                      433           13 937
Probable                      850.8                    1 213           39 000
Total                       1 274.7                    1 646           52 937

** Represents SA Total and Harmony's 50% portion from PNG

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 is registered with the South African Council for
Natural Scientific Professions and a member of the South African Institute of Mining and Metallurgy.

Reserves and Resources PNG:
James Francis for the Wafi Golpu Mineral Resources, German Flores for the Golpu Mineral Reserve, Greg Job for the
Hidden Valley Mineral Resources and Anton Kruger for the Hidden Valley Mineral Reserve. Messrs Job, Francis,
Flores and Kruger are corporate members of the Australian Institute of Mining and Metallurgy 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 Messrs Francis, Flores and 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.

Issued by Harmony Gold
Mining Company Limited

29 August 2012

For more details contact:

Graham Briggs
Chief Executive Officer

+27 (0) 83 265 0274 (mobile)

Jaco Boshoff
Executive: Minerals and
Growth

+27 (0) 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 (0) 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


JSE:      HAR
NYSE:     HMY
ISIN No.: ZAE000015228

Registration number:
1950/038232/06


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