Harmony on target with Avgold

Johannesburg, 13 November 2003 – Harmony Gold Mining Company Limited (NYSE: HMY JSE: HAR) today announced that it had reached in principle agreement regarding the acquisition of Avmin’s 286 305 263 shares or 42,2% interest in Avgold Limited (Avgold) at R10.11 per share. The consideration of R2,894 million will be settled by the issue of 28 630 526 new Harmony shares.

On 15 July 2003 the company announced that it had acquired 11,5% or 77 540 830 shares in Avgold at a consideration of R7,91 per Avgold share.

If the acquisition of the Avgold shares becomes unconditional, the company will own approximately 54% of Avgold, and a mandatory offer of 1 Harmony share per 10 Avgold shares will be made to Avgold minorities. On an assumption of a 100% acceptance of the offer a total of 60 059 379 Harmony shares will be issued. At a Harmony share price of R98.50 per share the company will have a market capitalisation of R31.3 billion.

Avgold owns the Target Mine in the Free State. The mine is expected to produce 350 000 ounces per annum at a cash cost of US$180,00 per ounce over a life of mine of 18 years. Avgold also owns the prospective Target North Project area that has a resource of some 59,6 million ounces.

“Harmony has over the past three years upgraded its production base with arrange of value enhancing acquisitions. This has resulted in the company being in a fortunate position compared to its peer group in that it is currently developing five mines, which should result in the company’s underground recovery grade increasing by some 13% over the next four years. The acquisition of the Target Mine will further enhance the overall quality of the company’s production base,” commented Bernard Swanepoel, Chief Executive.

Harmony, South Africa’s largest gold producer, owns operations locally and in Australasia. The company already has a significant operational presence in the Free State, and with the inclusion of the Target Mine, sees this position increasing and realising a range of synergistic benefits.