Quality project pipeline developed solid balance between early-stage and more immediate prospects to underpin further growth

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1 Exploration Harmony integrated annual report 2012 Highlights Brownfields exploration in South Africa focused on quality ounces Excellent potential of Freddies 9 shaft Positive drill results from Joel new modelling outlines potential life-of-mine extension of seven years Quality project pipeline developed solid balance between early-stage and more immediate prospects to underpin further growth Resource growth in PNG Wafi-Golpu resource expanded to 27.3Moz gold, 9Mt copper, t molybdenum* Equivalent to a total gold endowment of 74Moz 1 Discovery cost less than US$10 per oz Three key exploration project areas in the New Guinea mobile belt a world-class copper and gold belt undergoing a resurgence in exploration Kurunga intrusive complex (porphyry-related gold, copper and molybdenum) at Mt Hagen Vein stockwork gold mineralisation at Amanab Porphyry copper-gold and associated gold skarn mineralisation at Tari. * Represents Harmony/Newcrest joint venture 100% portion. Total exploration expenditure for the Harmony group of companies was R500 million (US$64.4 million) (94% PNG and 6% SA) and can be broken up into greenfields and brownfields. Harmony s exploration strategy is to target key prospective geological terranes to create shareholder value through the discovery of large long-life gold orebodies. Harmony maintains a balanced approach to exploration: Brownfields exploration work to develop mineral districts, maximise value from established infrastructure and sustain our operations Greenfields exploration work to create new opportunities in highly prospective, under-explored mineral provinces and emerging gold districts. Organic growth and geographical diversification are fundamental to the company s strategy. This is reflected in the board s commitment to exploration. Harmony aims to develop a quality pipeline of projects across all stages of the exploration process (ie project generation, advanced projects, resource definition and projects moving into pre-feasibility) to sustain resource growth. Safety, maximising in-ground expenditure, and conviction to drill test high-priority targets are key operational strengths. Harmony s approach to access quality projects is flexible and can include JV partnerships, acquisition and other arrangements. New growth projects are subject to rigorous application of filter criteria based on project- and countryrelated risk and ability to meet minimum requirements on potential size, production profile and investment targets. Outside South Africa, Harmony has a strong focus on south-east Asia, targeting arc-related epithermal gold and porphyry copper-gold deposits, although sediment-hosted gold deposits are also highly ranked. Exploration projects The New Guinea mobile belt of Papua New Guinea is one of the world s pre-eminent geological terrains for porphyry copper-gold and epithermal gold mineralisation. The belt is host to several world-class mines including Grasberg-Ertzberg (copper-gold), Porgera (gold) and Ok Tedi (copper-gold), and continues to grow in endowment with recent discoveries and resource expansions at Wafi-Golpu, Frieda River and Yandera. Collectively these three development projects in PNG have grown to over 35Moz gold and 20Mt copper, and the belt is currently undergoing a resurgence in exploration on the back of this success. Harmony has been actively exploring in PNG since 2003 and is well positioned despite increasing competition for exploration acreage. We have an established quality project portfolio comprising over km 2 of exploration, encompassing some of the most prospective mineral provinces and emerging gold and copper districts. Harmony s exploration investment in PNG since 2003 now totals A$188.5 million. Our resource base has grown by 17.5Moz of gold, 4.5Mt copper, 77.8Moz silver and t 116

2 Harmony integrated annual report 2012 HARMONY IN BRIEF Harmony project pipeline Building Short/medium term Long term ANNUAL REVIEWS Tshepong Decline Kusasalethu Bambanani# pillar Doornkop Phakisa Phoenix 500 Expansion Freddies 9# 9.73 Exploration Projects OPERATIONAL REVIEW Target 1# Block Target 3# Joel North Decline Wafi Golpu TPM SA: B Reef at Masimong PNG: MT Hagen Amanab Tari Wafi transfer zone Kerimenge Garawaria Nambonga Geology Key Resources (Moz) Exploration Reserves (Moz) 1 2 Represents Harmony/Newcrest joint venture 100% portion Figures include gold equivalents for copper and silver Uranium oxide in million pounds TPM (Tshepong, Phakisa and Masimong) represents uranium oxide associated with the underground production of these operations FSTUP (Free State Tailing Uranium Project) represents uranium oxide associated with the surface tailings dams in the Free State molybdenum. On an ounce-equivalent basis, this represents 41.2Moz of gold 1 and equates to a cost per discovery ounce of less than US$10. The tenement portfolio includes the Morobe Mining Joint Ventures, a 50:50 partnership between Harmony and Newcrest, together with a number of 100%-owned projects including Mt Hagen, Amanab and Tari. These projects represent quality greenfield gold and copper-gold opportunities in highly prospective, under-explored districts of the New Guinea mobile belt. Morobe Mining Joint Venture (MMJV) The MMJV land holding comprises some 4 726km 2 of tenure. The tenements sit in a broader strategic alliance area where both Harmony and Newcrest operate as JV partners. The tenement package encompasses the Wafi-Golpu and Hidden Valley projects and is a key strategic holding in the Morobe goldfields district. Although prospecting and mining activities date back to the early 1900s, the true potential of the district is only now beginning to crystallise. Mineral resources and reserves governance FINANCIALS AND ADMINISTRATION 1 Gold equivalent ounces calculated based on prices of US$1 400/oz Au, US$3.50/lb Cu, with 100% recovery. 117

3 Exploration continued Harmony integrated annual report 2012 FY12 exploration expenditure for the MMJV totalled US$17 million (PGK36 million). The underlying strategy of the MMJV exploration programme is threefold: Wafi-Golpu Resource definition and brownfields exploration to develop Wafi-Golpu into a second mining operation for the MMJV Wafi transfer zone greenfields exploration targeting discovery of additional resources to expand Wafi-Golpu into a mineral district Hidden Valley district brownfields exploration in a 10km radius of the Hidden Valley plant to develop resources to replace mining depletion and support expansion Regional greenfields exploration develop a project pipeline capable of delivering additional quality resources and sustaining future growth and operations in the province. Work programmes and results for these activities are detailed below. The region is considered under-explored and has significant potential for discovery of additional multimillion-ounce gold deposits. Accordingly, the MMJV proposes to spend US$78 million on exploration in FY13 of which US$39 million will be Harmony s share. Wafi-Golpu Resource definition and greenfields exploration Drilling at Wafi-Golpu this year focused on delineation of the existing resource to bring the deposit into reserve and feasibility study. The drilling confirmed the high-grade nature of the deposit but added further knowledge on the internal geological structure of the deposit. The Golpu copper-gold deposit is a nested porphyry system that comprises at least four separate mineralised intrusions. There is strong potential for additional mineralised intrusives along strike from Golpu, at Nambonga, and for additional feeder zones around the margins and at depth below the diatreme. Recent drilling has shown that the upper area of Golpu (Lift 1 in the prefeasibility study) is open to the north and extending closer to surface in this area. The lower portions of the orebody are open at depth and to the east. In overall assessment, the deposit remains hugely prospective and under-explored. The Wafi epithermal gold system is also expanding, with new zones of gold mineralisation discovered off the northern margin of the diatreme. We have identified additional Wafi-style gold mineralisation adjacent to the Golpu porphyry in drill holes designed to target the latter deposit. The FY13 drilling strategy for Wafi-Golpu will find a balance between further resource growth, further resource definition and engineering-focused drilling for infrastructure, and geotechnical and hydrogeological system is to expand the known resource through step-out drilling while exploring for more Wafi and Golpu-style mineralisation via brownfields exploration strategies inside the 2.5km 2 project zone and greenfields exploration programmes along the Wafi transfer structure outside the project zone. Some of this drilling will specifically target areas of the existing resources requiring additional geotechnical, hydrological and metallurgical information. The majority will focus on resource extension and discovery. Golpu pre-feasibility study A pre-feasibility study on Golpu was completed and reported in August The study allows the Wafi-Golpu jointventure participants to report a substantially increased mineral reserve estimate for Golpu. Block caving is the mining method proposed for Golpu, with two lifts to an aggregate depth of 1.45km. Drilling beneath Lift 2 has returned significant high-grade intersections and mineralisation remains open at depth. The development capital costs and resulting preliminary valuations demonstrate a sound business case that supports the updated mineral reserve estimate associated with developing Lifts 1 and 2 at Golpu. The Golpu project is not yet in the feasibility study phase. The joint-venture partners are engaging with key stakeholders (including the PNG and provincial governments, landholders and community representatives) to ensure clear alignment on the objectives and requirements for the project s development, key elements of the next phase of work and how the project would proceed in the medium term. In addition, capital costs which have been estimated to pre-feasibility study level are now being closely evaluated to assess what opportunities exist to further refine these, given continuing weaker global economic conditions. It is anticipated that, subject to satisfactory resolution on these outstanding matters, Harmony and Newcrest will progress the Golpu project into the feasibility study phase in the first half of calendar Highlights of the Golpu pre-feasibility study Excellent potential for further mineral discoveries in the region Golpu deposit a large, low-cost, long-life, block-cave mining operation: Updated Golpu probable mineral reserve estimate containing 12.4Moz gold and 5.4Mt copper for 38.9M gold equivalent ounces 1 (see detailed tables in Mineral Resource and Reserves section) Drilling within Lift 1 post completion of the study has returned higher grades than modelled in the mineral reserve, thus there is grade upside potential to the mineral reserve estimate First production by 2019, subject to approvals and feasibility study Mine life of 26 years and annual production reaches ounces of gold and tonnes of copper 1 Gold equivalent ounces calculated based on prices of US$1 400/oz Au, US$3.50/lb Cu, with 100% recovery. 118

4 Harmony integrated annual report 2012 HARMONY IN BRIEF during the period 2026 to 2035 under the pre-feasibility basecase scenario First-quartile cash costs (whether measured by gold or copper unit cost) Estimated capital cost to first production of US$4.85 billion. This estimate is at pre-feasibility study level and capital costs are being further evaluated to optimise these Harmony has budgeted US$114 million for study and drilling programme costs for FY13 and the company s share of expenditure for the feasibility study is estimated at US$400 million, over half of which would comprise expenditure on additional resource definition drilling and early-stage access decline development Total capital expenditure to first production occurs over a six-year period. Harmony expects to be able to fund its share of the capital expenditure largely from operating cash flow (see investor day presentation on High-grade drill intercepts occur at depth, indicating good potential for a third mining lift Further metallurgical test work is expected to optimise metal recoveries assumed in the pre-feasibility study The Wafi deposit is in concept study phase, with progress to pre-feasibility likely to occur later this calendar year Greenfields exploration Wafi transfer structure The Wafi structural corridor is constrained between the faulted contact of the Babwaf conglomerate and the Owen Stanley metamorphics. It comprises over 25km of strike with 17km covered by MMJV tenements hosting a number of prospects defined by high-tenor gold and copper-gold geochemistry in stream sediment sampling. The entire corridor ranks as a high-priority target for major mineralised gold and porphyry copper-gold systems similar to Wafi-Golpu. Drilling activities focus on the Zimake and Kesiago prospects with target generation along the remainder of the structure. Zimake The Zimake prospect lies some 12km north-east of Wafi- Golpu. Ridge and spur soil sampling outlined a highly anomalous zone of copper and gold in soils, over a 1.5km area. Peak assays included 0.5g/t Au and 0.2% Cu. The anomaly is associated with a bulls-eye magnetic target, and is prospective for porphyry copper-gold mineralisation similar to Golpu. Two holes were drilled to test this anomaly. The initial drillholes did not encounter economic mineralisation but intersected unaltered hornblende diorite. Minor chalcopyrite occurs as vein infill, with very weak epidote alteration. The presence of chalcopyrite may explain the surface geochemical anomaly but further drilling is targeting the potassic altered hornfelsed margin of the diorite, which may be a focus for mineralisation. Kesiago The Kesiago prospect lies some 5km south-west of Wafi- Golpu on the Wafi Transfer structure. Historical drilling obtained a best drill intercept of 337.4m at 0.25g/t Au and identified potential for a mineralised porphyry system with characteristics similar to Golpu. One hole, KDH009, was drilled and returned a result of 246m at 0.6g/t Au from surface. Mineralisation is associated with a base metal-quartzcarbonate stockwork zone which decreases in intensity to 400m and transitions to propylitic alteration. The intercept is located at the interpreted intersection of the Nambonga and Rafferty s fault and may be indicative of porphyry mineralisation at depth. A second deep follow-up hole is under way. Hidden Valley Brownfields exploration Work to delineate additional resources and delineate high-grade feedstock for Hidden Valley continued on two fronts: Generative work targeting the Watut fault began with 137 soil samples collected as part of a systematic programme to generate new targets along strike to the north-west of Hidden Valley Kerimenge-Kulang trend; drill pad and set-up in preparation for drilling In addition, detailed mapping has defined excellent potential for high-quality, accessible limestone source immediately north of the Hidden Valley mining lease. Mungowe/Heyu prospect (EL497) Drilling at the Heyu prospect was designed to test the Morobe Granodiorite for a large-scale bulk mineable deposit, similar to Hidden Valley. Hole 1 intersected several base metal carbonate zoned below mineralised structures mapped at surface, together with veined and altered granodiorite at depth. Initial results include: HEYD001: 8m at 1.61g/t Au from 287m 8m at 0.53g/t Au from 592m Results support the interpretation for Au mineralisation as leakage into hanging wall metasediments from Hidden Valley-style mineralisation at depth. The results are not economic but encouraging and further work for FY13 is planned. ANNUAL REVIEWS OPERATIONAL REVIEW Geology Exploration Mineral resources and reserves governance FINANCIALS AND ADMINISTRATION 119

5 Exploration continued Harmony integrated annual report 2012 Limestone project Not gold-related but certainly important for operations at Hidden Valley is a supply of hard rock and preferably limestone. Mapping of the limestone bodies nearby at Hikinangowe and Mungowie over 25km 2 was undertaken to define a limestone source for the site. The exercise has been highly successful with a continuous limestone body mapped over a 4km strike length, ranging from several to tens of metres thick. The limestone unit lies some 3.5km north of the Hamata open pit, is relatively accessible from the mine access road and has potential for significant tonnage with little to no overburden. Access to hard rock and limestone will help to reduce operating costs and mitigate acid rock drainage at Hidden Valley. Morobe regional exploration The highlight of regional generative exploration activities is the exciting Garawaria prospect which is shaping up to be one of the largest and most prospective Au anomalies ever developed on the Morobe tenement package. Mapping and trenching has revealed significant surface mineralisation: 122 trench samples were collected and results have confirmed the prospectivity outlining a bedrock gold target over 600m of strike with +1g/t values. Individual trench results included 99m at 2.11g/t Au, 12m at 2.06g/t Au, and 12m at 1.2g/t Au. Mineralisation occurs associated with a hydrothermal breccia, intensely silicified with abundant dark fine-grained pyrite. Dickite and alunite identified with the mineralisation suggest a high sulphidation epithermal system and potential for porphyry copper gold mineralisation at depth. A drill programme is planned for FY13. Regional greenfields exploration work continued over the other tenements to develop the project pipeline. 100% Harmony PNG tenements A total of US$11 million was spent on greenfields exploration outside the Morobe JV on Harmony-owned projects in FY12 where work is now focused on three key projects: Mt Hagen: One of the highest-tenor copper-gold anomalies in the belt of rocks extending between the Frieda River and Yandera Cu-Au-Mo projects, targeting the Kurunga intrusive complex (porphyry-related gold, copper and molybdenum) and a major epithermal gold target at Penamb prospect Amanab: Located in Sandaun Province of western PNG, some 160km north of the Ok Tedi copper-gold mine, targeting vein stockwork hosted gold mineralisation Tari: Located in the Southern Highlands Province, around 50km south-west of Porgera, targeting porphyry coppergold and associated gold-base metal skarn mineralisation Harmony Exploration now holds interests in over 4 254km 2 of exploration tenure in PNG. A budget of US$14 million has been approved for FY º 140ª 150ª AMANAB: granted tenements: 466km 2 Target: Sediment hosted gold vein stockwork MT Hagen: granted tenements 994km 2 Target: Porphyry Cu and related skarn 0º Lihir Grasberg Ok Tedi Frieda Porgera Yandera Panguna Wafi/Golpu Hidden Valley -10o Key Interpreted transfer structures Strike slip faults Trend lines Thrust fault Accreted Terranes Melanesian Arc Papuan Ultramafic Belt Australian plate Mobile Belt Fold Belt Irian/Papuan Fold and Thrust Belt TARI: granted tenements 611km 2, ELA of 2 189km 2 Target: Porphyry Cu-Au and related skarn mineralisation Misima Fly platform Harmony Gold (PNG) Exploration Limited tenement portfolio 120

6 Harmony integrated annual report 2012 HARMONY IN BRIEF Mt Hagen project The Mt Hagen project forms a contiguous block of tenure covering 994km² in the Western Highlands region. Over the past two years, exploration work at Mt Hagen focused on the Kurunga Intrusive Complex with the aim of completing first-pass exploration over the target by December Drilling has been completed at Kurunga, Penamb and Bakil prospects for a total of m. Reconnaissance exploration activities comprised ridge and spur soil sampling and mapping, rock chip and stream sediment sampling. Three main anomalies have been identified, with a copper-gold system at Kurunga prospect, epithermal-style gold mineralisation at Penamb East and a copper-molybdenum porphyry system at Penamb (possibly similar to the Yanderra Cu-Mo porphyry). Drilling to date has defined a 400m zone of +0.1% copper at the Penamb porphyry prospect associated with outer potassic-style alteration. All five drillholes have obtained significant intercepts of anomalous copper mineralisation: PNDD m at 0.1% Cu, 83 Mo from 63m PNDD m at 0.1% Cu, 27ppm Mo from 32m 190m at 0.1% Cu, 47ppm Mo from 193m PNDD m at 0.1% Cu, 87ppm Mo from 456m PNDD m at 0.1% Cu, 135ppm Mo from 198m PNDD m at 0.13% Cu, 107ppm Mo from 20m Follow-up drilling before the end of 2012 aims to expand this footprint and determine vectors to high-grade mineralisation. To the north-east of Penamb prospect on EL1611, a 3km anomalous zone in excess of 0.5g/t gold has been defined from stream sediment and soil sampling programmes which will also see drill testing over coming months. ANNUAL REVIEWS OPERATIONAL REVIEW Au 60cpb Contour Drilled Hole Geology Exploration FINANCIALS AND ADMINISTRATION governance Mineral resources and reserves Kurunga and Penamb prospects showing helimag, gold grid, 60ppb gold contour (in white) and drilled holes 121

7 Exploration continued Harmony integrated annual report 2012 Amanab project The Amanab project covers 466km² in West Sepik Province and encompasses the Amanab alluvial goldfield, which is one of 17 recognised alluvial goldfields on the PNG mainland. Regional geology includes cretaceous metamorphic (phyllites, slates, marble and volcanics) intruded by younger metadiorites and there is a major anomalous stream sediment footprint. Magnetic anomalies at Amanab may reflect intrusions at depth, as an under-explored area with no drill testing for the hard rock source, this makes it highly prospective for large-scale epithermal gold deposits (+2Moz) and porphyry copper-gold deposits. To date, ridge and spur soil sampling has been encouraging with first-pass sampling returning values up to 13.8g/t gold. Some 70 line kilometres of mapping has also been undertaken on the project and over surface samples collected. As a result a high-tenor gold anomaly with a footprint of over 5km of strike and rock chip values to 39g/t gold has been developed, associated with north-west trending structural breaks in the magnetics. Drill testing is being planned. Tari project The Tari project consists of one granted exploration licence and one exploration licence application encompassing some 2 804km 2 of tenure in the Southern Highlands. Regional data assessment identified the tenements as being highly prospective for an Ok-Tedi-style copper-gold system. Key porphyry-epithermal gold targets have been identified at Kopiago and Parero Creek on the Porgera transfer structure some 30km south-west of Mt Kare. Geologically the tenements are located in miocene carbonates, intruded by late miocene/pliocene dioritic to monzonitic intrusions within the Papuan Fold Belt. The Lake Kopiago magnetic target is conspicuous as being intensely fractured by dominant NE trending fault systems, similar to the Porgera NE trending transfer. Following the tenement grant in March 2012, field work at Kopiago has included reconnaissance mapping and a detailed airborne magnetic-radiometric survey. Results have highlighted a bulls-eye magnetic target associated with strong pervasive propylitic altered intrusives. Previous explorers identified lead, zinc and copper mineralisation associated with hornblende porphyry sills intruding limestone, and goldbearing magnetite skarns on the periphery. 122

8 Harmony integrated annual report 2012 HARMONY IN BRIEF South Africa Brownfields exploration Joel North The feasibility study for mining down to 137 level was accepted and approved at the beginning of the year. Much of the increase in the reserve now being reported for Joel is due to the inclusion of this additional area, with the life-of-mine almost doubling from seven to 12 years. In due course, a decision may be taken to carry out further surface drilling to determine the extent of the orebody between 137 and 145 levels. The design of the access allows for excavations to be extended to mine this area should it be economical to do so. Capital for the project was approved at the beginning of the year and development to access the project area has started on 129 level. Freddies 9 shaft project Freddies 9 shaft A business case that concentrated on extracting five different blocks on ground in the Freddies 9 shaft area, from three different shafts, was completed during the year. Two of the blocks, however, need additional exploration before they can be carried forward. The business case showed that the remaining blocks can best be mined from Tshepong shaft. A pre-feasibility study to evaluate this project is expected to be completed early next year. Kalgold A project has been initiated to explore on the current mining right as well as on adjacent prospecting rights. Drilling will begin in the vicinity of the current mine while the regional exploration programme is being prepared. This drilling will target a number of small high-grade orebodies which could supplement feed to the present plant. Extensions to the current pits will also be explored, the first phase of which will be to drill near the Windmill target. ANNUAL REVIEWS OPERATIONAL REVIEW Geology N Freddies 9# Central Block AC Block Exploration Key Existing development Tshepong # Mineral resources and reserves Planned development Existing shafts Planned stoping governance 0 2,5 5 kilometres Nyala # FINANCIALS AND ADMINISTRATION Phakisa # 123

9 Exploration continued Harmony integrated annual report 2012 As part of the exploration project, we will also clean up historical information and generate a systematic, secure, three-dimensional geological database to facilitate efficient geological modelling and streamline information for grade control and reconciliation purposes. Regional exploration will start with a high-resolution airborne magnetic survey over the entire prospecting area. Based on the results of this survey and a review of the historical database, further regional exploration may be necessary. Masimong surface drilling All mining from the Masimong shafts, except for a single development end, has stopped against the north-south trending Saaiplaas fault, 1 500m east of Masimong 5 shaft. However, there is every reason to expect that these highgrade channels continue beyond the fault, further eastwards. Only 1650 level development has penetrated this fault and drilling from this level, beyond the fault, indicated the presence of the B Reef channel. One historic surface hole was drilled between the shaft and eastern boundary (in 1948) and it intersected the B Reef. The block of ground between the Saaiplaas fault and eastern lease boundary is at least as large as the area mined at Masimong 5 in the past 20 years. If the area is proven, the life of Masimong will be substantially increased. Because of the vast area, we believed an initial four surface holes should be drilled to a depth of some metres below surface to test the theory of continuity of the B Reef channels. Once proven, further phased drilling could be undertaken. Capital of R20.5 million was approved for the project in July Drilling started in October 2011 and, to date, two of the four holes have been completed. All planned reef horizons the Ventersburg Contact Reef, VS5 (mixed pebble conglomerate), A Reef (Witpan and Uitzig), B Reef, Leader Reef and Basal Reefs were intersected in both holes. The B1 facies type of the B Reef appears to be prevalent throughout the central target area. The northerly of the two holes also intersected a well-developed Basal Reef channel. The remaining two boreholes are due to be completed by the end of October On the strength of information received to date, Masimong has planned development on 1650 level to access and cross the B Reef channel and to undertake additional underground drilling. Retreatment projects Uranium project Tshepong, Phakisa, Masimong (TPM) Gold ore from Harmony s Free State mines contains uranium as an associated mineral. Accordingly, Project TPM was established to evaluate the potential for economic recovery of uranium from ore mined at Tshepong, Phakisa and Masimong mines in the Free State. The resource totals 202Mt and contains 76 million pounds of uranium, and the reserve 49Mt containing 13 million pounds of uranium. The project is expected to produce pounds of uranium per annum at peak production from tonnes of underground ore per month over a 20-year life. As an added benefit, uranium processing enhances gold recovery by around 0.1g/t, resulting in gold production from these operations potentially increasing by some 28kg per month. By treating the uranium as a by-product, it is accounted for as a credit, potentially reducing the operating costs of contributing shafts by over R10 000/kg. A value engineering study was completed during the year, resulting in a reduced capital cost for the project and mitigating potential gold loss in the uranium extraction process. The project is being evaluated further although current uranium prices and future price projections make it difficult for this project to compete for capital in the Harmony project pipeline. 124

10 Harmony integrated annual report 2012 HARMONY IN BRIEF Kalgold CIL tank replacement project The Kalgold metallurgical plant was constructed in 1997 and built to last ten years. While numerous repairs have enabled the plant to continue operating, the CIL (carbon-in-leach) tanks in particular have suffered considerable corrosion and a decision was taken in 2011 to replace them. Capital of over R77 million was set aside for the project which presented the added difficulty of having to be constructed within the same perimeter while the current tanks remained operational. The project was started in July 2011 and is expected to be completed by the end of September 2012, on time and below budget. Construction of the eight 500m³ CIL tanks is complete, along with the top platforms and mechanical equipment consisting of agitators, carbon transfer pumps and carbon inter-stage screens. A new power supply has also been constructed. Commissioning of the new tanks is under way. The new CIL tanks have a design life of 20 years which will enable gold processing to continue beyond the present 13-year life-of-mine. It will also provide more flexibility should production be increased and allow for safer operation of the overall plant. at which tailings could be deposited. Throughput was cut from tpm to tpm. Less gold was recovered but gold recovery percentages increased as the lower volume of feed material had more time to interact with the cyanide solution in the same number of tanks. In June 2011, capital expenditure of over R184 million was approved for returning throughput to tpm and to ensure Phoenix became a stand-alone project, able to operate separately from the treatment of all Free State underground production. This objective required a new tailings deposition site to be identified and constructed, a new 19km pipeline to be installed from the Saaiplaas plant to the deposition site, and additional tanks to be erected in the plant to maintain higher gold recovery. The project was started in July 2011 and is due for completion in April Good progress is being made on all aspects with the pipeline being manufactured, earthworks at the deposition site being excavated and additional tank construction at the Saaiplaas plant being well advanced. The project is expected to come in under budget and on time. ANNUAL REVIEWS OPERATIONAL REVIEW Geology Phoenix 500 The Phoenix surface tailings retreatment project in the Free State has been successfully operated for a number of years. However, heavier rainfall than usual last year reduced the rate governance Exploration FINANCIALS AND ADMINISTRATION Mineral resources and reserves Kalgold open pit operation near Mahikeng 125