Mon Mar 3, 2008 8:51am EST

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Johannesburg. Monday, 3 March 2008. In line with Harmony Gold Mining Company
Limited's (Harmony) drive to optimise value from its latent and low-priority
assets, the company has entered into two separate transactions with African
Precious Minerals (APM) and its subsidiary Taung Gold Holdings (Pty) Ltd

Freegold, a wholly owned subsidiary of Harmony, holds the prospecting rights on
several farms north of Tshepong and east of Target in the Free State where the
shafts of Jeanette Gold Mines Limited were sunk during the 1950s.

Harmony has entered into a sale agreement in terms of which the prospecting
rights, considered low-priority Harmony assets, is to be acquired by APM.

The purchase consideration payable to Harmony by APM will be as follows:

 1. 1 500 000 ordinary APM shares and 1 500 000 half warrants. Based on the
    capital raising conducted by APM during the last quarter of 2007, the
    shares and warrants to be granted to Harmony are estimated at being worth
    US$7,5 million (R52,5million).
 2. 1.5% Net Smelter Royalty (NSR) on all minerals extracted from the
    prospecting right area, subject to a maximum aggregate amount of R150
In addition to the above transaction, Harmony also entered into earn-in
agreements with APM for the Evander 6 shaft and Twistdraai assets in the
Evander basin.

Harmony concluded a strategic review of all its projects in the Evander basin
in the Mpumalanga province during 2007 and concluded that entering into earn-in
agreements with junior exploration companies would move the low ranking
projects in the Evander portfolio up the value curve more rapidly without
placing added pressure on Harmony's capital expenditure.

The Evander 6 shaft and Twistdraai areas are located on the eastern and south
eastern side of the Evander basin respectively.

The earn-in agreements between Harmony and APM for the Evander 6 shaft and
Twistdraai areas respectively is subject to and conditional upon the
fulfillment of the following significant conditions precedent by APM:

 1. Completion of a scoping study within two years with no earn-in.
 2. Completion of a pre-feasibility study within three years. At least 70% of
    the ounces during the pay-back period in the study must be of the indicated
    resource class and three-fifths (³/5) of the agreed minimum requirement
    exploration work plan must be completed for APM to earn-in 25%.
 3. The completion of a full bankable feasibility study within five years. At
    least 100% of the ounces during the pay-back period in the study must be of
    the indicated resource class and the agreed minimum requirement exploration
    work plan must be completed for APM to earn-in 52%.
 4. On completion of the bankable feasibility study, if both parties agree, an
    unincorporated joint venture (UJV) will be created and Harmony will share
    48% and APM, 52% of the development costs and revenue of the project in
    accordance with the economic interests in the project(s).
Harmony will also earn a 1.5% Net Smelter Royalty on all minerals extracted
from the lease area covered by the Evander 6 shaft and Twistdraai earn-in
agreements, subject to a maximum aggregate amount of R500 million.

Harmony's Chief Executive Officer Graham Briggs says, "The earn-in agreement
with African Precious Minerals is an excellent way of progressing our low
priority projects to bankable feasibility stage in the current positive
gold-price environment. In addition, the formation of strategic alliances with
other companies allows us to optimize the use of our resources without placing
additional pressure on our capital expenditure."

African Precious Minerals Profile

African Precious Minerals was established in 2004 by Rudolph de Bruin, David
Twist and Kweku Awotwi as a gold exploration company seeking early-stage
exploration properties in South Africa, but more specifically in the Free
State, Evander and Balfour regions, as well as Africa.

African Precious Minerals' strategic joint ventures include Taung Gold Holdings
and Sephaku Gold Exploration. It has projects in South Africa, Mali (all of
AngloGold Ashanti's previously held exploration leases outside Morila and
Sadiola), Mozambique, Tanzania. Its flagship property is the Monarch gold
project in Mozambique, historically the largest gold producing region in that

It purchased all the available exploration data (including drill core) in
respect of the Hilton project from AngloGold Ashanti, which adjoins the
Jeanette lease area, thereby justifying Harmony entering into an agreement with
APM. African Precious Minerals shareholders include very well known resource
funds, including RMB Resources and Investec.


Issued by Harmony Gold Mining Company Limited

3 March 2008

For more details contact:

Graham Briggs

Chief Executive Officer

on +27 (0)11 411 2012

+27 (0)83 265 0274


Bob Atkinson

Executive, Projects and

New Business

on +27 (0)11 411 2000

+27 (0)83 303 9815


Amelia Soares

General Manager, Investor Relations

on +27 11 411 2314 or

+27 (0)82 654 9241

Corporate Office:

Randfontein Gold Mine

P O Box 1


South Africa 1796

T +27 (11) 411 2000

For the comprehensive set of results please visit



ISIN No.: ZAE000015228

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