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A

‘Mineral Resource'

is a concentration [or occurrence] of material of economic interest in or on the Earth's

crust in such form, quality and quantity that there are reasonable and realistic prospects for eventual

economic extraction. The location, quantity, grade, continuity and other geological characteristics of a

Mineral Resource are known, estimated from specific geological evidence and knowledge, or interpreted

from a well constrained and portrayed geological model. Mineral Resources are subdivided, in order of

increasing confidence in respect of geoscientific evidence, into

Measured, Indicated and Inferred

categories.

The ‘

Measured Mineral Resource

' is that part of a Mineral Resource for which tonnage, densities, shape,

physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is

based on detailed and reliable exploration, sampling and testing information gathered through appropriate

techniques from locations such as workings and drill holes. The locations are spaced closely enough to

confirm geological and grade continuity.

The ‘

Indicated Mineral Resource

' is that part of a Mineral Resource for which tonnage, densities, shape,

physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence.

It is based on exploration, sampling and testing information gathered through appropriate techniques from

locations such as workings and drill holes. The locations are too widely or inappropriately spaced to confirm

geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

The ‘

Inferred Mineral Resource

' is that part of a Mineral Resource for which tonnage, grade and mineral

content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed

but not verified geological and/or grade continuity. It is based on information gathered through appropriate

techniques from locations such as workings and drill holes that may be limited or of uncertain quality and

reliability.

A ‘

Mineral Reserve

' is the economically mineable material derived from a Measured and/or Indicated Mineral

Resource. It is inclusive of diluting materials and allows for losses that may occur when the material is

mined. The Mineral Reserves are sub-divided in order of increasing confidence into Probable Mineral Reserves

and Proved Mineral Reserves.

The ‘

Probable Mineral Reserve

' is the economically mineable material derived from the Indicated Mineral

Resource. It is estimated with a lower level of confidence than a Proved Mineral Reserve and is inclusive

of diluting materials and allows for losses that may occur when the material is mined.

34

Mineral

Resources

Reported as

mineralisation estimates

Inferred

Indicated

Measured

Increasing

level of

geoscientific

knowledge

and confidence

Probable

Proved

Reported as mineable

production estimates

Mineral

Reserves

Consideration of mining, metallurgical, economic, marketing, legal,

environmental, social and governmental factors

(the ‘modifying factors’)

Exploration

Results

35

ore reserve statement

reclassify

3. Competent Persons

The main principles governing the operation and application of the SAMREC Code are transparency,

materiality and competence. Transparency requires that the reader of a Public Report is provided

with sufficient, clear and unambiguous information in order to understand the report and not

be misled. Materiality requires that a Public Report contains all the information which investors

and their professional advisers would reasonably require, and reasonably expect to find in the

report, for the purpose of making a reasoned and balanced judgement regarding the mineralisation

being reported. Competence requires that the Public Report be based on the work of a suitably

qualified, responsible and experienced person who is subject to an enforceable professional code

of ethics.

The documentation detailing the Mineral Resources and Mineral Reserves estimates has been

prepared under the direction of Graham Briggs, the company’s competent person for the purposes

of ore resource and reserve accounting. Mr Briggs is an alternate director of Harmony Gold

Mining Company Limited. He has a BSc Hons degree in Geology and is a registered Geological

Scientist (in terms of the Act). He has been a practising geologist for 16 years.

The shaft Ore Reserve Managers prepared the details of the Mineral Resources and Reserves for

each shaft. The company’s appointed Ore Reserve Managers all have a geological or mine survey

background. They are all graduate geologists, technikon diplomates or certified mine surveyors.

Harmony’s mineral resources and reserves were audited by Venmyn Rand (Pty) Limited to

investigate and ensure that the mineral resources and reserves are in all respects compliant with

the specifications embodied in the SAMREC Code. Their conclusion is as follows:

“Having reviewed the procedures and practices adopted by Harmony to categorise and calculate

the company's mineral resources and mineral reserves, we are satisfied that these are compliant

with the requirements of the SAMREC Code."

The ‘

Proved Mineral Reserve

' is the economically mineable material derived from the Measured

Mineral Resource and is estimated with a high level of confidence. It is inclusive of diluting

materials and allows for losses that may occur when the material is mined.

The ‘

Measured and Indicated Mineral Resources

’ are inclusive of those Mineral Resources

modified to produce the Mineral Reserves.

Grade Tonnage Curve

Tonnes Million & Average Grade

tonnes

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