Harmony continues to strengthen its balance sheet

22 December 2008

Johannesburg, 22 December 2008. Harmony Gold Mining Company Limited (“Harmony”) is pleased to announce that despite international financial turmoil, it continues to strengthen its balance sheet.

Raising funds

Harmony has completed a capital raising by issuing shares for cash in the open market pursuant to its mandate given by shareholders at the Annual General Meeting. In the capital raising 10 504 795 shares have been placed between 25 November 2008 and 19 December 2008, at an average subscription price of R93.20, raising R979 million before costs. The average issue price compares favourable with the weighted average share price on the JSE over the same period of R92.79 per share. The number of shares issued is equivalent to 2.6% of Harmony’s issued share capital of 403 424 148 shares as at 30 September 2008. The cost of the placement was approximately R15 million, or 1.5% of the value of shares issued.

In line with Harmony’s stated intention to have zero net debt by June 2009, the proceeds will primarily be used to reduce debt levels.

Nedbank loan

Harmony has repaid R1,25 bn of the R2bn Nedbank debt which was repayable by December 2008. The Nedbank loan facility of R750 million is now repayable by December 2009.

Capital projects

Harmony recognises that its pipeline of projects is the future of the company and regularly reviews its cash flow to ensure that it supports the continuation of its projects. During a recent review Harmony reaffirmed its commitment to its capital expenditure plans.

For more details contact:

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

Graham Briggs
Chief Executive Officer
+27 (0)83 265 0274

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