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HARMONY GOLD MINING COMPANY LIMITED - Harmony settles dispute with FSCA relating to 2007 financial disclosure

Release Date: 05/10/2018 17:00:00      Code(s): HAR       PDF(s):  
Harmony settles dispute with FSCA relating to 2007 financial disclosure

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”)

Harmony settles dispute with FSCA relating to 2007 financial

Johannesburg. 5 October 2018: Harmony Gold Mining Company Limited
(“Harmony” and/or “the Company”) is pleased to announce that it has
reached a mutually acceptable settlement with the Financial Sector
Conduct Authority (“FSCA”) of South Africa (The Directorate of Market
Abuse substituted in terms of Section 300(3) of the Financial Sector
Regulation Act, 2017), which settlement has been confirmed by the
Enforcement Committee of the FSCA,relating to a SENS Announcement
published by the Company on 25 April 2007.

The April 2007 announcement related to the financial results for the
quarter ending 31 March 2007. The published results, at that stage
unknown to Harmony, were incorrect. The first indication that the
results published on 25 April 2007 for the quarter ended March 2007
were   erroneous, was end of July 2007. The Company immediately
informed the shareholders and the necessary authorities and reviewed
all financial reporting policies and systems to ensure that a similar
error would not occur.

At the time, the Directorate of Market Abuse alleged that Harmony
published misleading financial statements. Harmony cooperated with
the FSB to ensure that expensive and protracted enforcement
proceedings and possible litigation be avoided. Following various
discussions between the FSB and Harmony over more than a decade, the
Enforcement Committee of the FSCA confirmed the settlement reached
by Harmony and the Directorate of Market Abuse and determined on 4
October 2018 that Harmony contravened section 76 of the Securities
Services Act No.36 of 2004 by publishing misleading financial
statements and imposed an agreed administrative penalty of R30
million on Harmony.

Frank Abbott, financial director of Harmony, commented that: “The
inaccuracy of the March 2007 quarterly financial results was a bona
fide error, following the implementation of a new financial software
system.  This has been the only material weakness identified in our
internal control over financial reporting that we have had in 68


For more details contact:

Marian van der Walt
Executive: Investor Relations
+27 (0)82 888 1242 (mobile)

Frank Abbott
Financial Director
+27 (0)82 800 4290 (mobile)

5 October 2018

J.P. Morgan Equities South Africa Proprietary Limited.

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