Name and Location
Phakisa mine, Free State, South Africa.

Client
Harmony Gold Mining Company.

Project Description
Phakisa, located between Odendaalsrus and Welkom, in the Free State, moved from project to operating mine on Basal reef in the 2011 financial year, after starting production in the 2008 financial year.

Once the expansion project is completed, the mine will operate to a depth of 2 400 m.

The operation uses the Nyala shaft, situated 5.5 km away, as a second escape route and to hoist rock. Ore handling between Nyala and Phakisa is done on 55 level using the advanced Rail-veyor ore transport system. Ore mined at Phakisa is processed at the Harmony 1 plant, about 20 km away from the mine.

Since it is a new mine, development activities at Phakisa are currently centred close to the shaft in the lower-grade southern areas. Grades will improve further as the development progresses towards the north and more reef is exposed within the major north-west- to south-east-trending Basal reef pay shoot.

A steep build-up in production is planned to reach a yearly production of more than one-million tonnes and to yield about 270 000 oz.

Total proven and probable mineral reserves as at June 30, 2013, were 20.2-million tonnes, with a grade of 7.04 g/t gold.

Value
The cost of the project has not been confirmed.

Duration
The mine came into production in Harmony’s 2008 financial year and build-up in production continues.

Latest Developments
The project is in the build-up phase.

In the year ended June, Phakisa produced 107 kg less gold than in the previous financial year, owing to the ventilation shaft failure in the March and June 2013 quarters. This resulted in tonnes milled being 2% lower than in the 2013 financial year, with the recovered grade 3% lower, at 4.75g/t, compared with 4.88 g/t in the 2012 financial year. As a result, Harmony has indicated that the operation will require more attention in the next financial year.

Meanwhile, the remedial work at Freddies No 3 ventilation shaft is on track and is expected to be completed by the end of 2013.

Key Contracts and Suppliers
Redpath (rehabilitation of the ventilation shaft).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Harmony investor relations manager Henrika Basterfield, tel +27 11 411 2314, fax +27 11 692 3879 or email henrika@harmony.co.za.