HARMONY

 

PRESS RELEASE

 

EXCELLENT DRILLING RESULTS AT GOLPU WEST SPELLS EXCITEMENT FOR HARMONY'S
EXPLORATION ACTIVITIES IN PNG

Johannesburg. Tuesday, 26 January 2010. Harmony Gold Mining Company Limited
(Harmony) is pleased to advise that encouraging results were achieved from
recent drilling conducted on the Golpu West prospect, as part of the company's
exploration programme in Papua New Guinea (PNG).

Golpu West is located off the western margin of the Golpu orebody and entirely
outside of the existing resource limits. Drilling to date has defined
approximately 160 metres of strike and the high-grade mineralisation remains
open in all directions.

Results of the significant new drill intercepts include:

 

WR321:          331m @ 0.51 g/t Au & 0.93 % Cu from 694m                       
                                                                               
Including:      155m @ 0.88 g/t Au & 1.51% Cu from 868m                        
                                                                               
                                                                               
                                                                               
WR327A:         478.4m @ 0.85 g/t Au & 1.36 % Cu from 506m                     
                                                                               
Including:      155m @ 1.47 g/t Au & 2.29% Cu from 691m                        
                                                                               
                                                                               
                                                                               
WR328:          597m @ 0.57 g/t Au & 0.96 % Cu from 399m                       
                                                                               
Including:      198m @ 1.13 g/t Au & 1.88 % Cu from 788m                       
                                                                               

 

The Wafi-Golpu project area is located in the Morobe Province of PNG and is
part of Harmony's 50/50 Joint Venture with Newcrest Mining Limited of
Australia. 

 

The high grade portions of copper-gold intercepts are coincident with stockwork
veined and altered diorite porphyry. The porphyry is biotite altered, variably
silicified and veined, and contains abundant chalcopyrite as fine disseminated
sulphide. A halo of lower grade copper-gold mineralisation surrounds porphyry
and comprises a stockwork vein network of laminated
quartz-magnetite-chalcopyrite veins. Stockwork vein intensity is best developed
at the diorite porphyry contact in the adjacent metasediments and gradually
decreases away from the contact.

 

The tenor and continuity of the mineralisation is particularly encouraging. The
average gold and copper grades of the Golpu West intercepts are significantly
higher than the main Golpu porphyry, which for comparison averages 0.65 g/t Au
and 1.4% copper. The current Golpu resource is 163 Mt @ 0.6 g/t gold and 1.1%
copper for 2.93 Moz of gold and 1.76 million tonnes of copper.

 

The drilling has also intersected near surface supergene copper-gold
mineralisation including:

 

WR316:       24m @ 0.6 g/t Au & 0.54% Cu from 82m                              
                                                                               
WR327A:      22m @ 0.55 g/t Au & 0.9% Cu from 175m                             
                                                                               

 

Harmony's Chief Executive Officer, Graham Briggs says, "We are thrilled with
the outcome of the drilling results at Golpu West. The results are very
encouraging and highlight the fact that the Golpu system is poorly constrained
at depth. Excellent potential exists for additional mineralised intrusions and/
or structural repetitions around the margins."

 

The way forward and concept studies

Drilling to scope out the geometry and full extent of the new mineralised zone
is continuing, with three exploration drill rigs. Two additional deep capacity
rigs will arrive in mid-February to accelerate the work programme. It is
expected that this drilling will significantly expand the current Golpu
resource.

 

The 2007 Golpu pre-feasibility study contemplated a block cave operation that
would mine 100 million tonnes of ore and produce 1.7 million ounces gold and
1.0Mt copper over a 10 year life of mine. Per the pre-feasibility study the
operation would have a low cash cost of approximately US$0.54/lb Cu (or $300/
oz Au equivalent) but high capital expenditure of US$1.3 billion and a maximum
cash out of US$1.0 billion. It was considered that a resource upgrade or
significant change in upfront capital would be the most likely means to
increasing the margin and lowering the risk profile for a favourable
development decision.

The Golpu West drill results outline potential for a step-change impact on the
minable resource base. This would provide a key driver to fundamentally alter
the economics of the project.

In addition to resources, other aspects of the concept study, which may change
significantly from previous work include:

 

Reduced upfront infrastructure capital through advances caving technology, and
staged development options

Geo-metallurgical solution for treatment of high sulphidation ore from the Wafi
A,B and Link zones

 

The current schedule for completion of the new resource model and progressing
of the concept study is June 2010.

 

Ends

 

Issued by Harmony Gold Mining Company Limited

 
26 January 2010

 
For more details contact:

 

 

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

or

 
Esha Brijmohan
Investor Relations Officer
on +27(0)82 759 1775

 

 

Corporate Office:

Randfontein Office Park
P O Box 2
Randfontein
South Africa 1760
T +27 (11) 411 2000

 

 

www.harmony.co.za

 

 

JSE:          HAR     HAR
                         

NYSE:       HMY
NASDAQ: HMY

ISIN No.:   ZAE000015228