HMY 0001628280-22-027351 6-K as filed: Oct 31, 2022

HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Target Gold Mine

Free State Province, South Africa

Effective Date: 30 June 2022

Final Report Date: 31 July 2022


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.


Effective Date: 30 June 2022 i


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Signature Page

/s/ Seabata Motlatla

___________________________________

Mr Seabata Motlatla

BSc. Hons (Geol), GDE (Mining),

Project Man Cert NQF Level5

SACNASP (No.400451/14)

Ore Reserve Manager, Target Gold Mine

Harmony Gold Mining Company Limited

/s/ Dries Fourie

___________________________________

Mr Dries Fourie

MSc. (Min Eng), GDE (Mining)

SAIMM (No.706555)

Head of Department Geostatistician

Harmony Gold Mining Company Limited


Effective Date: 30 June 2022 i


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

List of Contents


1	Executive Summary			1
2	Introduction			6
3	Property Description and Location			7
	3.1	Mineral Tenure		7
	3.2	Property Permitting Requirements		7
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			10
	4.1	Accessibility		10
	4.2	Physiography and Climate		10
	4.3	Local Resources and Infrastructure		10
5	History			11
	5.1	Historical Ownership and Development		11
	5.2	Historical Exploration		11
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		12
	5.4	Past Production		12
6	Geological Setting, Mineralisation and Deposit			14
	6.1	Regional Geology		14
	6.2	Local Geology		14
	6.3	Property Geology		17
		6.3.1	Heevenrust Member (“EA Zone”)	17
		6.3.2	Uitkyk Member	18
		6.3.3	Structure	18
	6.4	Mineralisation		19
	6.5	Deposit Type		20
	6.6	Commentary on Geological Setting, Mineralisation and Deposit		20
7	Exploration			21
	7.1	Geophysical Surveys		21
	7.2	Underground Mapping		21
	7.3	Topographic Surveys		21
	7.4	Channel Sampling Methods and Sample Quality		21
	7.5	Surface Drilling Campaigns, Procedures and Results		22
		7.5.1	Drilling Methods	22
		7.5.2	Collar and Downhole Surveys	22
		7.5.3	Logging Procedure	22
		7.5.4	Drilling Results	24
		7.5.5	Core Recovery	24
		7.5.6	Sample Length and True Thickness	24
	7.6	Underground Drilling Campaigns, Procedures and Results		24
		7.6.1	Drilling Methods	25
		7.6.2	Collar and Downhole Surveys	25
		7.6.3	Logging Procedure	25
		7.6.4	Drilling Results	26
		7.6.5	Core Recovery	26
		7.6.6	Sample Length and True Thickness	26
	7.7	Hydrogeology		26
	7.8	Geotechnical Data		26


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


	7.9	Commentary on Exploration		27
8	Sample Preparation, Analyses and Security			28
	8.1	Sampling Method and Approach		28
		8.1.1	Channel Samples	28
		8.1.2	Core Samples	28
	8.2	Density Determination		29
	8.3	Sample Security		29
	8.4	Sample Storage		29
	8.5	Laboratories Used		29
	8.6	Laboratory Sample Preparation		29
	8.7	Assaying Methods and Analytical Procedures		30
	8.8	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)		30
		8.8.1	Standards	30
		8.8.2	Blanks	31
		8.8.3	Duplicates	31
	8.9	Commentary on Sample Preparation, Analyses and Security		31
9	Data verification			32
	9.1	Databases		32
	9.2	Data Verification Procedures		32
	9.3	Limitations to the Data Verification		32
	9.4	Comment on Data Verification		32
10	Mineral Processing and Metallurgical Testing			33
11	Mineral Resource Estimate			34
	11.1	Geological Database		34
	11.2	Global Statistics		34
	11.3	Geological Interpretation		36
		11.3.1	Unfolding	37
		11.3.2	Unfaulting	37
		11.3.3	Structural Update	37
	11.4	Drill Hole De-survey		38
	11.5	Compositing		38
	11.6	Capping		38
	11.7	Experimental Semi-Variograms and Fitted Models		39
	11.8	Block Model		39
	11.9	Grade Estimation		39
	11.10	Relative Density and Tonnage Calculation		39
	11.11	Block Model Validation		40
	11.12	Mineral Resource Evaluation		41
	11.13	Mineral Resource Classification and Uncertainties		41
	11.14	Mineral Resource Estimate		42
	11.15	Audits and Reviews		42
	11.16	Mineral Resource Reconciliation		45
	11.17	Commentary on Mineral Resource Estimate		45
12	Mineral Reserve Estimate			46
	12.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve		46


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


	12.2	Modifying Factors		46
	12.3	Mineral Reserve Estimate		47
	12.4	Mineral Reserve Reconciliation		48
	12.5	Commentary on Mineral Reserve Estimate		48
13	Mining Method			49
	13.1	Mining Operations		49
		13.1.1	Scattered Massive Open Stoping	49
		13.1.2	Sub-level Open Stoping – Block 12	49
		13.1.3	Narrow Reef Conventional Mining (“NRM”)	51
	13.2	Mine Design		54
	13.3	Mine Plan Development and Life of Mine Schedule		55
	13.4	Geotechnical and Hydrological Considerations		55
	13.5	Dilution and Grade Control		56
	13.6	LOM Schedule		57
	13.7	Ore Transport		58
	13.8	Mining Equipment and Machinery		58
	13.9	Mining Personnel		61
	13.10	Commentary on Mining Method		62
14	Processing and Recovery Methods			63
	14.1	Mineral Processing Description		63
	14.2	Plant Throughput, Design, Equipment Characteristics and Specifications		63
	14.3	Energy, Water, Process Material and Personnel Requirements		65
		14.3.1	Energy	65
		14.3.2	Water	65
		14.3.3	Process Material	65
		14.3.4	Personnel	65
	14.4	Commentary on the Processing and Recovery Methods		65
15	Infrastructure			67
	15.1	Surface Infrastructure		67
		15.1.1	Ore and Waste Rock Storage Facilities	67
		15.1.2	Tailings Storage Facilities	67
		15.1.3	Power and Electrical	67
		15.1.4	Water Usage	67
		15.1.5	Logistics and Supply	68
	15.2	Underground Infrastructure		68
	15.3	Commentary on Infrastructure		68
16	Market Studies			72
	16.1	Market Overview		72
	16.2	Global Production and Supply		72
		16.2.1	New Mine Production	72
		16.2.2	Recycling	72
	16.3	Global Consumption and Demand		72
		16.3.1	Jewellery	72
		16.3.2	Investment	73
		16.3.3	Currency	73
	16.4	Gold Price		73


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


		16.4.1	Historical Gold Price	73
		16.4.2	Forecast Gold Price	73
		16.4.3	Harmony Group Gold Hedging Policy	73
	16.5	Commentary on Market Studies		75
	16.6	Material Contracts		75
17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			76
	17.1	Results of Environmental Studies		76
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		76
	17.3	Permitting and Licences		77
	17.4	Local Stakeholder Plans and Agreements		78
	17.5	Mine Closure Plans		79
	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups		79
	17.7	Local Procurement and Hiring		79
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		79
18	Capital and Operating Costs			81
	18.1	Capital Costs		81
	18.2	Operating Costs		81
	18.3	Comment on Capital and Operating Costs		81
19	Economic Analysis			83
	19.1	Key Economic Assumptions and Parameters		83
		19.1.1	Metallurgical Recoveries	83
		19.1.2	Gold Price	83
		19.1.3	Exchange Rate	83
		19.1.4	Royalties	84
		19.1.5	Capital Expenditure	84
		19.1.6	Operating Expenditure	84
		19.1.7	Working Capital	84
		19.1.8	Taxes	84
		19.1.9	Closure Cost and Salvage Value	85
		19.1.10	Summary	85
	19.2	Economic Analysis		85
	19.3	Sensitivity Analysis		86
20	Adjacent properties			88
21	Other Relevant Data and Information			89
22	Interpretation and Conclusions			90
23	Recommendations			92
	23.1	Recommendation 1		92
	23.2	Recommendation 2		92
	23.3	Recommendation 3		92
24	References			93
25	Reliance on Information Provided by the Registrant			94


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

List of Figures


Figure 3-1: Location of Target			8
Figure 3-2: Mineral Tenure for Target			9
Figure 5-1: Graph of Past Production – Tonnes and Grade			13
Figure 5-2: Graph of Past Metal Production			13
Figure 6-1: Geological setting of the Witwatersrand Basin			15
Figure 6-2: Stratigraphic Column of the Free State Goldfield			16
Figure 6-3: Schematic Cross-Section through the Heeversust and Uitkyk Members at Target			18
Figure 7-1: Location of Target Surface Drill Holes			23
Figure 7-2: Location of Target Underground Drill Holes			23
Figure 11-1: Location of Structurally Defined Blocks			35
Figure 11-2: Distribution of the Gold Grade at Target			40
Figure 11-3: Location and Classification of Targets Mineral Resources and Mineral Reserves			44
Figure 13-1: Schematic Plan View - Massive Open Stope Design			50
Figure 13-2: Schematic Section View - Massive Open Stope Design			50
Figure 13-3: Schematic Representation of the Modified Top-Down Sub-level Caving Mining Method			52
Figure 13-4: Section of a Typical Footwall Crosscut at Target			52
Figure 13-5: Plan Showing the NPM Sequence at Target			53
Figure 13-6: Schematic Mine Design Layout for Target Mine			54
Figure 13-7: Schematic Cross Section of a Ring Blast Design			57
Figure 13-8: Cross Section Representation of the CMS Results			57
Figure 13-9: Graph of LOM for Target – Tonnes (by Mining Method) and Grade			59
Figure 13-10: Graph of LOM for Target – Gold Produced			59
Figure 13-11: Plan Showing Target Massives LOM			60
Figure 14-1: Schematic Flow Diagram for Target Gold Plant			64
Figure 14-2: Graph of Historical Gold Recovery at Target Gold Plant			66
Figure 15-1: Infrastructure Plan for Target			69
Figure 15-2: Target Location of Surface Infrastructure			70
Figure 15-3: Target Mine Detailed Surface Layout			71
Figure 16-1: Graph of Annual Gold Price History – ZAR/kg			74
Figure 16-2: Graph of Consensus View of Forecast Gold Price			74
Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast			84


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

List of Tables


Table 1-1: Summary of the Target Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-8			2
Table 1-2: Summary of Target Mineral Reserves as at 30 June 2022 1-5			3
Table 1-3: Summary of LOM Capital Cost Estimate for Target			4
Table 1-4: Summary of Operating Cost Estimates for Target			4
Table 1-5: Status of Environmental Permits and Licences			5
Table 2-1: List of Responsible and Contributing Authors			6
Table 3-1: Summary of the Mineral Tenure for Target			7
Table 5-1: Summary of Historical Ownership Changes and Activities of Target			11
Table 5-2: Summary of the Previous Target Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)			12
Table 5-3: Summary of the Previous Target Mineral Reserves as at 30 June 2021			12
Table 7-1: Summary of Surface Drill Holes Drilled at Target			24
Table 8-1: Summary of Steyn SRM Performance			31
Table 11-1: Summary of the Gold Assay Descriptive Statistics			36
Table 11-2: Grade and CW Capping Parameters			38
Table 11-3: Harmony Economic Assumptions (30 June 2022)			41
Table 11-4: Target Mineral Resource Classification Criteria			41
Table 11-5: Summary of the Target Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-8			42
Table 12-1: Target Mineral Reserves Modifying Factors (30 June 2022)			47
Table 12-2: Summary of Target Mineral Reserves as at 30 June 2022 1-5			47
Table 13-1: Results of Sub-Level Caving Analysis			51
Table 13-2: Trackless Mining and Support Services Equipment			61
Table 13-3: Mining Personnel			62
Table 14-1: Design Parameters and Equipment Specifications			65
Table 14-2: Reagent Consumption			65
Table 16-1: Material Contracts			75
Table 17-1: Status of Environmental Permits and Licences			78
Table 18-1: Target Capital Cost Estimates			82
Table 18-2: Target Operating Cost Estimates			82
Table 19-1: Conversions Used in Gold Price Calculations			83
Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)			83
Table 19-3: Key Economic Assumptions and Parameters			85
Table 19-4: Target Cash Flow			85
Table 19-5: Target Gold Price Sensitivity on NPV			87
Table 19-6: Target Operating Cost Sensitivity on NPV			87
Table 19-7: Target Gold Price, Operating Costs, And Production Variation Sensitivity on NPV			87
Table 25-1: Other Specialists			94


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
°			Degrees
°C			degrees Celsius
3D			Three-dimensional
AE			Abnormal expenditure
AMIS			African Minerals Standards
Au			Gold
Avg.			Average
Avgold			Avgold Limited
BP			Business plan
c.			Approximately
CBA			Core bedding angle
CIP			Carbon-In-Pulp
cm			Centimetre
cmg/t			Centimetre grams per tonne
CMS			Cavity Monitoring System
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COV			Coefficient of Variation
CRG			Central Rand Group
CW			Channel width
DatamineTM			Datamine Studio RM or Datamine Studio OP
DMRE			Department of Mineral Resources and Energy
DSSI			Dilution Stress-Strain Index
DTM			Digital Terrain Model
DWS			Department of Water and Sanitation
EIA			Environmental Impact Assessment
EMPR			Environmental Management Programme
EMS			Environmental Management System
EPS			Enhanced Production Scheduling
ESG			Environmental Social and Governance
ETF			Exchange traded fund
Excl.			Excluding
FY			Financial year
g			Gram
g/t			Grams per tonne
ha			Hectare
Harmony			Harmony Gold Mining Company Limited
Heeversrust			van den Heeversrust
Incl.			Including
kg			Kilogram
km			Kilometre
km2			Square kilometre
koz			Thousand troy ounces
LBMA			London Bullion Market Association
LHD			Load haul dump
LOM			Life of Mine
Loraine			Loraine Gold Mine
Ltd			Limited
m			Metre


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


M			Million
MCC			Mining Charter Compliance
MCF			Mine Call Factor
Moz			Million troy ounces
MPRDA			Mineral and Petroleum Resources Development Act, 28 of 2002
MRO			Mine Reserve Optimiser
Mt			Million tonnes
Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
MW			Megawatts
NEMA			National Environmental Management Act, 107 of 1998
No.			Number
NPV			Net present value
NRM			Narrow reef mining
OCD			On-going capital development
OTC			Over the counter
oz			Troy ounce
oz/kg			Troy ounce per kilogram
PSGM			President Steyn Gold Mine
Pty			Proprietary
QAQC			Quality Assurance/Quality Control
QP			Qualified Person
RBE			Rail-bound equipment
RD			Relative density
ROM			Run-of-Mine
SABLE			SABLE® Data Warehouse
SACNASP			South African Council for Natural Scientific Professions
SAG			Semi autogenous grinding
SAMREC			The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves
SANAS			South African National Accreditation System
SEC			Securities and Exchange Commission
SGS			SGS South Africa (Pty) Limited
SLOS			Sub-level open stope
SLP			Social Labour Plan
SR			Slope of Regression
SRM			Standard Reference Material
Sun			Sun Mining and Prospecting Company (Pty) Ltd
t			Metric tonne
t/m3			Tonne per cubic metre
Target			Target Mine which includes the Target 1 deposit
tpd			Tonnes per day
TRS			Technical Report Summary
TSF			Tailings Storage Facility
UCS			Unilateral Compressive Strength
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
WRG			West Rand Group
WUL			Water Use Licence
ZAR			South African Rand
ZAR/kg			South African Rand per kilogram


Effective Date: 30 June 2022 iii


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Glossary of Terms


Term			Definition
Cut-off grade			Cut-off grade is the grade (i.e. the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Dilution			Unmineralized rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Head grade			The average grade of ore fed into the mill.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project and may not be converted to a Mineral Reserve.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Modifying Factors			Modifying factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include but are not restricted to: mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product.
			(1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable.
			(2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is:
			(1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and
			(2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must:
			(i) Be either:
			(A) An organization recognized within the mining industry as a reputable professional association; or
			(B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field;
			(ii) Admit eligible members primarily on the basis of their academic qualifications and experience;
			(iii) Establish and require compliance with professional standards of competence and ethics;
			(iv) Require or encourage continuing professional development;
			(v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and
			(vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.


Effective Date: 30 June 2022 iii


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Person(s) (“QP”) of Harmony Gold Mining Company Limited (“Harmony” or the “Company”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Company’s Target Mine (“Target Mine” or “Target”), comprising the Target 1 deposit. The TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, with an effective date as at 30 June 2021. No material changes have occurred between the effective date and the date of signature of this TRS.

Property Description

Target is a deep-level underground gold producing mine situated in the Free State Goldfield, 30km north of the town of Welkom, Free State Province, South Africa. Most of the gold mineralisation is currently extracted by mechanised mining (massive mining techniques).

Harmony holds several mining rights for Target, which have been successfully converted and executed as new order mining rights. The mining rights that have been registered as new order mining rights include the following:

•FS30/5/1/2/2/14MR, which is valid from 30 November 2007 to 29 December 2025 and covers 4,237.00ha; and

•FS30/5/1/2/2/225MR, which is valid from 12 December 2013 to 11 December 2026 and 3,715.78ha.

All relevant underground mining and surface right permits, and any other permit related to the work conducted on the property have been obtained and are valid. There are no known legal proceedings (incl. violations or fines) against Harmony, which threaten its mineral rights, tenure, or operations.

Ownership

Target is 100% owned by Harmony, including the associated mineral rights, through its interest in Avgold Limited (“Avgold”).

Geology and Mineralisation

Target is situated on the north-western margin of the Witwatersrand Basin of South Africa, one of the prominent gold provinces in the world. The major gold bearing conglomerate reefs are mostly confined to the Central Rand Group (“CRG”) of the Witwatersrand Supergroup.

Folding forms the major structural feature within the lease is and is manifested as an asymmetric syncline whose axis trends N15°W, with a general plunge of 10° to 12° north, although this is variable due to local structural features. The dip of the western limb of the syncline is often more than 55° eastwards. Numerous minor faults are also present.

These faults, with a displacement generally of less than 15m and traceable over a strike distance of less than 150m are too numerous to classify. however, it can be said that the eastern limb of the trough is less faulted than the western limb.

Gold mineralisation currently exploited is hosted within a succession of Elsburg (EA) and Dreyerskuil (DK) quartz pebble conglomerate reefs hosted by the van den Heeversrust and Dreyerskuil (Uitkyk) Members of the Eldorado (Elsburg) Formation, respectively.

Additional mineralisation occurs in the Big Pebble Reef of the underlying the Kimberley (formerly Aandenk) Formation. All these units are within the Turffontein Subgroup of the CRG. Mineralisation is associated with the presence of medium to coarse, clast-supported oligomictic pebble horizons. The presence of allogenic (buckshot) pyrite and detrital carbon is also common.


Effective Date: 30 June 2022 1


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Current Status of Exploration, Development and Operation

Target has a six-year life of mine (“LOM”) plan and the planned reefs to be exploited include the Dreyerskuil (DK4 and DK1) and EA Reefs. The LOM plan is expected to produce 4.45Mt at a grade of 4.24g/t, reported as milled tonnes.

A total of seven drill holes with a total of 183m drilled length, was last completed in 2020. The drilling added an additional 23 zone code intersections to the estimation and geological databases. An underground infill drilling system is in place to improve the data density in specific areas and are drilled from the underground development access drives.

Mineral Resource Estimate

The current Mineral Resource estimate for Target was completed by the Harmony QP using wireframes of the mineralised reefs created in DatamineTM Studio RM (“DatamineTM”) version 64-bit1.4.132.0 EN software. The QP created block models based on validated SABLE® Data Warehouse (“SABLE”) and GEOLOG databases containing surface drillhole data, as well as underground drilling, mapping, and sampling data obtained until December 2021. Gold values were estimated using the ordinary kriging interpolation method.

The Mineral Resources were originally prepared, classified and reported according to the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 edition (“SAMREC, 2016”). For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Mineral Resource estimate, as at 30 June 2022, exclusive of the reported Mineral Reserves is summarised in Table 1-1.

The QP compiling the Mineral Resource estimate is Mr D Fourie, Head of Department Geostatistician, and employee of Harmony.

Table 1-1: Summary of the Target Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	4.374	8.89	38,860
Indicated	3.193	7.76	24,780
Total / Ave. Measured + Indicated	7.567	8.41	63,640
Inferred	4.028	5.96	24,007
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	4.821	0.259	1.249
Indicated	3.520	0.226	0.797
Total / Ave. Measured + Indicated	8.341	0.245	2.046
Inferred	4.440	0.174	0.772
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr D Fourie, who is Head of Department Geostatistician, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off grade of 3.05g/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.


Effective Date: 30 June 2022 2


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Mineral Reserve Estimate

The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning processes. Mine planning takes into consideration historical technical parameters achieved as well as the Modifying Factors, such as cut-off grade, the Mine Call Factor (“MCF”), the stoping width, the mining width and the plant recovery factor.

The reported Mineral Reserve estimate as at 30 June 2022 is summarised in Table 1-2. In the opinion of the QP, given that Target is an established operation, the Modifying Factors informing the Mineral Reserve estimates would at minimum, satisfy the confidence levels of a Pre-Feasibility Study.

The declared Mineral Reserves are depleted to generate the Target cash flows. The economic analysis of the cash flows displays positive results and are deemed both technically and economically achievable.

The QP compiling the Mineral Reserve estimate is Mr S Motlatla, Ore Reserve Manager at Target, and employee of Harmony.

Table 1-2: Summary of Target Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	2.722	4.32	11,744
Probable	1.726	4.11	7,096
Total (Proved + Probable)	4.447	4.24	18,840
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	3.000	0.126	0.378
Probable	1.902	0.120	0.228
Total (Proved + Probable)	4.902	0.124	0.606
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr S Motlatla, who is the Target Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. The NRM Mineral Reserves are reported using a cut-off value of 821cmg/t determined using a gold price of USD1,546/oz. The massive open stoping Mineral Reserves are reported using a cut-off grade of 3.40g/t determined using a gold price of USD1,546/oz.

Capital and Operating Cost Estimates

The capital cost estimates for Target are determined at a corporate level, using the business plan as the basis. The capital costs are associated with major equipment outside the main operating sections which is termed abnormal expenditure (“AE”), infrastructure development, as well as ongoing capital development (“OCD”), as presented in the Table to follow. Costs associated with the Mining Charter Compliance (“MCC”), as per South Africa’s Social Labour Plan (“SLP”) requirements are also included in the capital estimates. The capital and operating costs are reported in ZAR terms and on a real basis. The economic analysis, including the capital and operating costs are reported for the period comprising financial year (“FY”) July - June.

The capital cost estimates for Target are presented in Table 1-3.

The operating cost estimates for Target are categorised into direct and re-allocated costs. A summary of the Target operating cost estimates is shown in Table 1-4.


Effective Date: 30 June 2022 3


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Table 1-3: Summary of LOM Capital Cost Estimate for Target


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2028)
AE			211,852
Shaft projects			229,139
Major projects			117,329
MCC			50,527
Total (excl OCD)			608,847
OCD			662,321
Total (incl OCD)			1,271,168

Table 1-4: Summary of Operating Cost Estimates for Target


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2028)
Wages - payroll 1			2,961,604
Wages - payroll 2			1,295,226
Stores and materials			2,182,055
Electric power and water			1,815,259
Outside contractors			789,235
Other			265,685
Direct Costs			9,309,064
Pumping			235,548
Refining charge			29,791
Backfill costs			58,689
Assay costs			37,277
Hostel costs			27,962
Plant treatment cost			973,936
OCD re-allocated			-108,076
Re-allocated costs			1,255,127
Mine overheads re-allocated			567,533
Total			11,131,724


Effective Date: 30 June 2022 4


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Permitting Requirements

Target has the following valid permits, administered and managed by various departments, and does not require any additional permits to continue with their mining operations, except for the applications which have been submitted to amend the existing Environmental Management Programme (“EMPR”) required for a slurry pipeline project and Water Use Licence (“WUL”). Target is awaiting approval from the regulator at the effective date of this TRS. These pending environmental permits and licences do not pose a material risk to the continuation of the operation. The permits and licences are summarised in Table 1-5.

Table 1-5: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

EMPR

FS 30/5/1/2/3/2/1(14) EM

DMRE

16-Apr-2010

Atmospheric Emission Licence

LDM/AEL/YMK/013

Lejweleputswa District Municipality

05-Nov-2018

05-Nov-2023

Water Permit

789N

DWS

04-Nov-2008

Valid pending issue of new license

Water Permit

1046B

DWS

04-Nov-2008

Valid pending issue of new license

Note: DMRE - Department of Mineral Resources and Energy, DWS - Department of Water and Sanitation

Conclusions

Under the assumptions in this TRS, Target shows a positive cash flow over the life-of-mine which supports the Mineral Resource and Mineral Reserve estimates. The mine plan is achievable under the set of assumptions and parameters used.

Recommendations

The QP’s recommendations include the following:

•the full potential of the Basal Reef, which produces 85% of the gold from the Free State Goldfield, has yet to be established on the Target property as initial drilling had focused on the shallower Eldorado (Elsburg) and Kimberley (Aandenk) reefs. Therefore, the QP recommends that delineation drilling be undertaken to establish this;

•exploration drilling is recommended to determine the potential of EA3 reefs in the inter-fan areas north of Eldorado fan in BLK12;

•data with regards to over-break/caving to be collected during mining of the sub-level open stope (“SLOS”) to determine the amount of dilution for future planning process; and

•results of relative density tests taken on Dreyerskuil reefs were higher than 2.71 standard for Target Mine, and therefore more tests are required to verify the density of the Dreyerskuil reefs.


Effective Date: 30 June 2022 5


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

2Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS on Target has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the U.S. SEC Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 - Technical Report Summary. The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand Target which forms part of Harmony’s activities.

This TRS has been prepared from the following sources of information:

•Target Mining Operations - Competent Person’s Report Ore Reserves, prepared by Mr S Motlatla, dated 30 June 2022;

•the 2021 and 2022 Harmony Corporate Business Plan; and

•published Harmony 2022 Mineral Resources and Mineral Reserves Report as at 30 June 2022.

The TRS was prepared by QPs employed by Harmony or Target, comprising the Target 1 deposit. The QPs qualifications, areas of responsibility and personal inspection of the properties are presented in Table 2-1.

Table 2-1: List of Responsible and Contributing Authors

Qualified Person

Professional Organisation

Qualification

TRS Section Responsibility

Personal Insp.

Mr S Motlatla

SACNASP (No. 400451/14)

BSc. (Hons) Geol, GDE (Mining), Project Management Cert NQF Level 5

All the sections

Full Time

Mr D Fourie

SAIMM (No. 706555)

MSc. Min Eng, GDE (Mining)

Regular

Mrs M Ncube

SACNASP (No. 123075)

BSc. (Hons) Geol

8, 9, 11

Full Time

Dr PJ Le Roux

ECSA (No. 200970121)

PhD. Min Eng

13.1 - 13.2, 13.10

Full Time

Mr M Gxekwa

AMIHRP

Dip HR Man, PgDip. (Labour law)

13.9

Full Time

Mr T Holl

AMRE

GCC Electrical

13.7-13.8

Full Time

Mr C Radebe

MMMA

B.Tech Metallurgy

Full Time

Mr A Relebona

BA (Hons) Env Sci

Regular

Mr D Graham

B.Com (Bus & Man Accounting)

18, 19

Full Time

Mr E Naude

MRM Certificate

Full Time

Mr J van Deventer

SACNASP

BSc. (Hons) Geol

6, 7

Full Time

This TRS is the first filing of such a document with the SEC and has an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature.


Effective Date: 30 June 2022 6


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

3Property Description and Location

Section 229.601(b)(96) (3) (i-vii)

Target is an advanced, single-shaft, deep-level gold mine which has been operational for approximately 30 years. While most of the gold mineralisation extracted comes from mechanised mining (massive mining techniques), conventional stoping is still employed primarily to de-stress areas ahead of mechanised mining.

It is located in the Free State Province of South Africa, approximately 270km southwest of Johannesburg and 30km north of the town of Welkom (Figure 3-1).

3.1Mineral Tenure

South African Mining Law is regulated by the MPRDA which is the predominant piece of legislation dealing with acquisitions or rights to conduct reconnaissance, prospecting and mining. There are several other pieces of legislation which deal with such ancillary issues such as royalties (the Mineral and Petroleum Resources Royalty Act, 2008), title registration (the Mining Titles Registration Act, 1967), and health and safety (the Mine Health and Safety Act, 1996).

The current mining rights encompasses an area of 7,952.78ha (Figure 3-2). Harmony holds several mining rights for the Target Mine, which were successfully converted and executed as new order mining rights. Certain of these rights are still to be registered at the Mineral and Petroleum Resources Titles Office (“MPRTO”). The summary of mineral tenure and the approved mining rights are shown in Table 3-1.

Table 3-1: Summary of the Mineral Tenure for Target

Licence Holder

Licence Type

Reference No.

Effective Date

Expiry Date

Area (ha)

Harmony

Mining Right

FS30/5/1/2/2/14MR

30-Nov-2007

29-Dec-2025

4,237.00

Harmony

Mining Right

FS30/5/1/2/2/225MR

12-Dec-2013

11-Dec-2026

3,715.78

Total

7,952.78

There are no known legal proceedings (including violations or fines) against the Company which threatens its mineral rights, tenure, or operations.

3.2Property Permitting Requirements

All relevant underground mining and surface right permits, and any other permit related to the work conducted on the property have been obtained and are valid.

Harmony monitors complaints and litigation against the Company as part of its risk management systems, policies, and procedures. There is no material litigation (including violations or fines) against the Company as at the date of this report which threatens its property permitting. The Company is also not aware any land claims or other legal proceedings that may have an influence on the rights to mine the minerals.


Effective Date: 30 June 2022 7


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 3-1: Location of Target


Effective Date: 30 June 2022 8


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 3-2: Mineral Tenure for Target


Effective Date: 30 June 2022 9


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

4Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

4.1Accessibility

The Target shafts (1, 2 and 5-ventilation) is accessible via the local R30 road between Allanridge and Odendaalsrus, (Figure 3-1). The area also has well-established rail links and an airfield within proximity.

Entry into the mining area is restricted by security fencing, security guards, booms and lockable gates at the main entrance. In addition, a communication system and access control system monitors personnel entering and leaving the mine property.

4.2Physiography and Climate

The mine lease area is flat with an average elevation of approximately 1,320m above sea level (“asl”). The area is relatively flat with an overall slope to the southwest. There are no prominent topographical landmarks in the area.

No significant topographical disturbances are expected from mining operations. However, the topography is affected by slimes dams, waste rock dumps and solid waste disposal sites.

Target is situated in the Free State, a semi-arid region with an annual rainfall of between 400mm and 600mm. Local thunderstorms and showers are responsible for most of the precipitation during summer – from October to March with peak rainfall occurring in January. Hail is sometimes associated with thunderstorms.

January is the warmest month of the year. The temperature in January averages 19.2°C. July has the lowest average temperature of the year and is 7.7°C. Target Mine is not restricted by climatic or seasonal occurrences.

4.3Local Resources and Infrastructure

The surrounding areas of Welkom and Virginia are well developed in terms of access and mining-related infrastructure supporting the numerous operational gold mines in the area. The regional infrastructure includes national and provincial paved road networks, power transmission and distribution networks, water supply networks and communication infrastructure. Target’s surface and underground infrastructure, including its power and water supplies, are sufficient for the LOM plan production requirements.

The Target operation includes a single underground mine constructed as an extension to the Loraine Gold Mine (“Loraine”) and uses a single shaft as access. The ore and development rock are hoisted together, with ore milled and processed at the Target plant adjacent to the mine (Figure 3-2). Target ‘s plant is also used for the treatment of a Harmony waste rock dump, monitored and managed by Surface Sources. Operations are powered by electricity from Eskom Holdings State Owned Company (“SOC”) Limited.


Effective Date: 30 June 2022 10


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

5History

Section 229.601(b)(96) (5) (i-ii)

5.1Historical Ownership and Development

Anglovaal previously held the mineral rights for the Target property. Target Exploration Company Limited, a company formed by Anglovaal specifically for the purpose of exploration, later acquired this area. Options to the mineral rights north of Target were acquired by Sun Mining and Prospecting Company (Pty) Limited (“Sun”). The formation of Avgold in 1996 was intended to further the gold mining and exploration interests of Anglovaal. Harmony acquired Target in 2002. The historical ownership and associated activities related to Target are summarised in Table 5-1.

Table 5-1: Summary of Historical Ownership Changes and Activities of Target


Year			Asset History Highlights
1890			Prospecting on the Loraine property, south of Target commences and is shortly abandoned.
1909			Prospecting on Loraine re-commences.
1933			Allan Roberts and associates execute exploration drilling in proximity to initial prospecting activity.
1946			Drillhole VDH1, located near the present Target 3 Shaft, intersects the Basal Reef.
1978			Chief geologist for Loraine recommends that Anglovaal investigate the possible northward extension of the Elsburg reefs.
1980s			Sun Mining and Prospecting Company (Pty) Limited (“Sun”) acquires mining rights north of Target and demonstrate positive results for the Kimberley Formation and Ventersdorp Contact Reef.
1990			Target Exploration Company Limited acquires the Mining Rights and continue exploration, siting 17 drillholes. Drilling was aimed at and showed robust results for the EA, Kimberley and Basal Reefs, respectively.
1996			Avgold takes ownership of the Target operations and continues exploration into the early 2000s.
2002			Harmony acquired Target by acquiring 100% of Avgold’s shares.

5.2Historical Exploration

Prospecting on historical Loraine property, situated immediately south of Target, was first undertaken around 1890, with the beginning of a vertical and incline shaft. This was, however, soon abandoned with interest being revived in 1909 when promising gold values were reported.

In 1933, mainly on the initiative of Allan Roberts and associates, a diamond drillhole was started on the Farm Aandenk, not far from the site of the earlier prospecting. Consequent upon Roberts’s work, further surface drilling and geophysical surveys (gravimetric) were undertaken.

Of particular interest was drillhole VDH1, which was started in 1946 on the Farm van den Heeversrust near the present Target 3 Shaft. This drillhole intersected the Basal Reef, but also intersected a series of high pay reef bands stratigraphically higher up than the Basal Reef. These were originally called the Rainbow reefs but are now correlated as the Eldorado (Elsburg) reefs.

In 1978, the Chief Geologist for Loraine recommended that Anglovaal investigate the possible northward extension of the Elsburg reefs, as they showed no sign of attenuating northward through Loraine. Consequently, the area north of what was termed the Loraine Mineral Holdings (now Target) was explored by the Sun, a wholly owned subsidiary of Anglovaal.

Encouraging gold values intersected in the Kimberley Formation and Ventersdorp Contact Reef by drillholes in the Sun project, which culminated in the formation of Target Exploration Company, specifically for the purpose of exploring the Loraine Mineral Holdings area.

5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous Mineral Resource estimate Target was declared as at 30 June 2021 by Harmony, according to the definitions stipulated in the SAMREC Code, 2016. The previous Mineral Resource estimate summarised in Table 5-2, is reported exclusive of Mineral Reserves, and has been superseded by the current estimate prepared by Harmony in Section 11 of this TRS.


Effective Date: 30 June 2022 11


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Table 5-2: Summary of the Previous Target Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	4.706	8.67	40,817
Indicated	3.236	8.13	26,304
Total / Ave. Measured + Indicated	7.943	8.45	67,121
Inferred	4.453	5.50	24,513
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	5.188	0.253	1.312
Indicated	3.567	0.237	0.846
Total / Ave. Measured + Indicated	8.755	0.246	2.158
Inferred	4.909	0.161	0.788

The previous Mineral Reserve estimate for Target was declared by Harmony on 30 June 2021 in accordance with the SAMREC Code, 2016. Modifying Factors were considered and applied to the Mineral Resource to arrive at the Mineral Reserve estimate. These factors included the cut-off grade, the MCF, the stoping width, the mining width and the plant recovery factor. The previous Mineral Reserve estimate is summarised in Table 5-3 and has been superseded by the current estimate prepared by Harmony as detailed in Section 12 of this TRS.

Table 5-3: Summary of the Previous Target Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	2.903	4.46	12,933
Probable	1.846	3.89	7,183
Total (Proved + Probable)	4.748	4.24	20,116
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	3.200	0.130	0.416
Probable	2.035	0.113	0.231
Total (Proved + Probable)	5.234	0.124	0.647

5.4Past Production

The Target mining area is a continuation of the adjacent Loraine Mine. Loraine hoisted approximately 51Mt of ore at a grade of 7.2g/t. At the end of 1997, approximately 75% of the hoisted ore came from the basal and B reefs, combined. The remaining 25% of gold production (approximately 13Mt) was mined from numerous horizons within the EA reefs. The feasibility was concluded in May 1998 and during the next two years the project progressed to the stage where access to the orebody and infrastructure to support production was completed. Production commenced in May 2002 until April 2004 under Anglo-Vaal, and a total 2.8Mt of ore was milled at 9.02g/t, producing 24,857kg.

Target milled approximately 14.8Mt of ore at recovery grade of 4.59g/t since May 2004 from the EA reefs. The massives stoping section accounted for approximately 75% of the production and the remainder is divided between trackless development and NRM stoping sections. Past production for Target over the last five years is presented in Figure 5-1 and Figure 5-2.


Effective Date: 30 June 2022 12


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 5-1: Graph of Past Production – Tonnes and Grade

Figure 5-2: Graph of Past Metal Production


Effective Date: 30 June 2022 13


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii)

6.1Regional Geology

Target is located on the south-western margin of the Archean Witwatersrand Basin, one of the prominent gold provinces in the world. The Witwatersrand Basin is an approximately 7,000m thick terrigenous sequence comprising mainly of arenaceous and argillaceous, together with minor rudaceous, lithologies deposited in a fluvio-deltaic environment in the centre of the Archaean Kaapvaal Craton of South Africa (Robb and Meyer, 1995). The regional geology of the Witwatersrand Basin is shown in Figure 6-1.

The Witwatersrand Basin hosts the Witwatersrand Supergroup, which either conformably or unconformably overlies the metamorphosed volcanic and minor clastic sediments of the Dominion Group (Tucker et al., 2016). The Dominion Group overlies the older granite-greenstone basement.

Majority of the Witwatersrand Supergroup is capped by the volcano-sedimentary sequence of the Ventersdorp Supergroup through an angular unconformity. The Ventersdorp Supergroup is in turn overlain by the dolomitic and quarzitic sequence of the Transvaal Supergroup, and sediments of the Karoo Supergroup (Tucker et al., 2016). Several suites of dykes and sills cut across the Archaean basement and the Witwatersrand, Ventersdorp, Transvaal and Karoo supergroups, and form important geological time-markers.

The CRG is up to 2,880m thick and covers an area of up to 9,750km2, with a basal extent of c.290km x 150km. It is sub-divided into the lower Johannesburg Subgroup and upper Turffontein Subgroup. These subgroups are separated by the Booysens Shale Formation. The stratigraphic succession of the CRG comprises coarse-grained fluvio-deltaic sedimentary rocks.

The major gold bearing (auriferous) conglomerates are mostly confined to the CRG, and these conglomerate horizons are known as reefs. The most important reefs within the CRG are at six stratigraphic positions, three within the Johannesburg Subgroup and three within the Turffontein Subgroup. The reefs are mined in seven major goldfields, and a few smaller occurrences, which extend for over 400km in what has been called “The Golden Arc”. This arc is centred on the prominent Vredefort Dome (Figure 6-1), which is thought to be a major meteorite impact site in the centre of the Witwatersrand Basin (Therriault et al., 1997). The seven major goldfields (Figure 6-1) include East Rand, South Rand, Central Rand, West Rand, West Wits, Klerksdorp, Free State (Welkom) and Evander.

6.2Local Geology

Target is located within the Free State Goldfield (Figure 6-1). The stratigraphic column of the Free State Goldfield is presented in Figure 6-2. The Johannesburg Subgroup comprises the Virginia, St Helena, Welkom, Harmony and Dagbreek formations.

The Virginia Formation is up to 800m thick and is composed of a transition from the underlying finer-grained Jeppestown Quartzites into an alternating sequence of grayish green argillaceous quartzites with pebble lags.

The first pebble layer may be characterized by kerogen (carbon) known as the Beisa Reef. The St Helena Formation is a ±300m sequence of alternating mature quartzites and argillaceous, pebbly protoquartzites, with a distinct change from the khaki yellow sericitic quartzites (LF1) of the underlying Virginia Formation to coarse grained, light grey siliceous quartzites (MF4) at the base of the St Helena Formation. The top of this formation is marked by mineralized gravels up to 2m thick known as the Intermediate Reef or UF4 (base of Welkom Formation).

The Welkom Formation comprises approximately 250m of argillaceous quartzites, gritty and pebbly quartzites, with polymictic clast composition of yellow silicified shales, green siliceous quartzites and black chert.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 6-1: Geological setting of the Witwatersrand Basin


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 6-2: Stratigraphic Column of the Free State Goldfield


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

This unit both thins from west to east with a corresponding grain size decrease. The Harmony Formation contains the most important gold-producing reef in the Free State Goldfield, namely the Basal Reef representing the Basal and Steyn placers. It varies from a single pebble lag to channels of more than 2m thick. It is commonly overlain by shale, which thickens northwards. The Dagbreek Formation comprises a composite of oligomictic and polymictic conglomerate termed the Leader Reef, which caps the Harmony Formation. This is overlain by interbedded siliceous and argillaceous quartzites with lithic fragments (Leader Reef Zone).

The Turffontein Subgroup comprises the Kimberly (formerly Aandenk) and Eldorado (Elsburg) formations. The Kimberly Formation is sub-divided into the lower Spec Bona Big Pebble and upper Big Pebble (Earls Court) members. The Spec Bona Member consists of a basal polymictic conglomerate which may have associated kerogen (carbon) - B Reef, overlain by khaki-yellow coarse pebbly argillaceous quartzites with polymictic conglomerate horizons. The Big Pebble Member hosts two main conglomerate reefs, namely the basal Big Pebble Reef and the A Reef, referred to at Target as the BP1a and BP6a reefs, respectively. These placers occur with a sequence of khaki to brown argillaceous quartzites with interbedded pebbly quartzites.

The Eldorado Formation is sub-divided into three members, namely the Rosedale, Heeversust and Uitkyk members. These members consist of argillaceous quartzwacke with interbedded siliceous quartzite. The Rosedale Member consists of a basal, polymictic immature conglomerate (VS5), overlain by immature dark grey, gritty quartzite, which increases in maturity northwards.

The Heeversrust Member consists of a basal polymictic conglomerate overlain by yellowish argillaceous quartzite. The Uitkyk Member underlies the Ventersdorp lavas and is locally referred to as the Dreyerskuil (or Boulder Beds) which consist of a polymictic coarsening-up sequence with heterogeneous pebbles/cobbles of black, yellow and green shale, greenstones, porphyritic lava, chert quartzite and quartz.

The Free State Goldfield is structurally divided into two sections, cut by the north-south striking De Bron Fault (Figure 6-1). This major structure has a downward vertical displacement to the west of about 1,500m in the region of Bambanani, as well as a dextral shift of 4km. This known lateral shift allows a reconstruction of the reefs to the west and east of the De Bron Fault. Several other major faults lie parallel to the De Bron Fault.

Target lies to the west of the De Bron Fault. Dips of the reef are mostly towards the east, averaging 30° but become steeper approaching the De Bron fault. Between the east and west blocks lies the uplifted Horst block of WRG sediments with no reef preserved.

6.3Property Geology

The reefs currently exploited at Target are the conglomerates in the Heeversrust (Elsburg) and Uitkyk (Dreyerskuil) members of the upper Eldorado (Elsburg) Formation (Figure 6-2). These Elsburg-Dreyerskuil conglomerates form a wedge-shaped stacked package, comprising 35 separate reef horizons, often separated by quartzite beds.

The Elsburg (EA) reefs are truncated by an unconformity surface at the base of the overlying Uitkyk (Dreyerskuil) Member (Figure 6-3). Below the sub-outcrop, the Elsburg reefs dip steeply to the east, with dips becoming progressively shallower down dip.

Close to the sub-outcrop, the thickness of the intervening quartzites reduces, resulting in the Elsburg reefs merging to form composite reef packages that are exploited by massive mining techniques at Target. The Dreyerskuil (DK4, DK5 and DK6)-reefs also consists of stacked reefs dipping shallowly to the east. These reefs tend to be less numerous, but more laterally extensive than the underlying Elsburg reefs.

6.3.1 Heevenrust Member (“EA Zone”)

The EA Zone comprises interbedded green to black, coarse to medium grained argillaceous quartzwackes (referred to on Target as subgreywackes) interbedded with polymictic to oligomictic conglomerates and locally quartzites.

In the south greywacke and polymictic conglomerates predominate while in the north, a relatively high proportion of quartzites with interbedded oligomictic conglomerates exist. A combination of facies variations, local differences in source areas and tectonics are proposed as a possible explanation for the difference.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 6-3: Schematic Cross-Section through the Heeversust and Uitkyk Members at Target
Source: Avmin

The EA Zone contains most of the Eldorado Reefs mined at Target, namely the EA1 at the base and, ranging up through the succession, the EA2, EA3, EA4, EA5, EA7A, EA7B, EA8 bottom and top, the EA12, EA13 and EA15 (Figure 6-3). Except for the EA1 with its EB footwall, and the EA8 and EA15 bands, there are no distinctive markers, which can be used for identifying the different reefs.

6.3.2Uitkyk Member

The Uitkyk Member covers the entire Target lease area. It commences as a sericitized polymictic large pebble agglomerate varying in thickness from 2m to 12m. This unit was often referred to as the Lower Agglomerate (“L.A.G”) or lower Dreyerskuil at Target. Above the L.A.G., up to 18m of argillaceous quartzwackes intercalated with light grey quartzites and polymictic, loosely packed conglomerate bands are developed. The upper portions of the member are characterized by the presence of cobble and boulder beds of varying composition ranging from greenstones, granites, black, yellow and green shales, altered porphyritic rocks, cherts, quartzites and quartz.

6.3.3Structure

Within the Target Mining Right, folding forms the major structural feature and is manifested as an asymmetric syncline whose axis trends N15°W, with a general plunge of 10° to 12° north (Chapman, 1969), although this is variable due to local structural features. The dip of the western limb of the syncline is often in excess of 55° eastwards. However, due to local faulting and minor folding, the reefs may be vertical in places. Below the EA1 reef, all zones and reefs sub-outcrop against either the Dreyerskuil (Uitkyk) or against EA (Heeversrust) reefs.

The lower lying EA reefs (EA1-EA8) sub-outcrop against either higher EA reefs or Boulder Beds, while the upper reefs (EA12-EA15) generally appear to become more conformable with the Dreyerskuil. Below the EA1 Reef the underlying Rosedale Member of the Eldorado Formation, the Kimberley Formation and the Dagbreek Formation all appear conformable with one another, although subtle very low angle unconformities exist between each one. The eastern limb of the syncline has an almost constant dip of 10° to 15° to the west, similar to that of the Uitkyk Beds.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Olivier (1965) considered the major episodes of faulting to have occurred during CRG, lower Ventersdorp Supergroup and post Ventersdorp times. CRG events are characterized by north-south trending thrust faults (Rheedersdam Fault), which are confined to the western margin of the Free State Goldfield and may have formed in response to either compression forces (Callow & Myers, 1986) or extensional forces (Winter, 1986).

At Target these events are manifested by the Spec Bona faults, two major reverse faults which both plunge to the north. Geological information south of PSGM 3 Shaft indicates that these systems persist through the southern boundary of PSGM 3 Shaft, and tie up with the Phillipi Fault, encountered near the western boundary of PSGM 7 Shaft and eventually the Rheedersdam Fault (Chapman, 1969).

The earliest faulting correlated with the lower Ventersdorp times, consists of east-west reverse faults. These are thought to be of Late Klipriviersberg age as the Merriespruit fault displaces the Klipriviersberg lavas. The major fault system correlated with this event is that of the major north-south trending normal faults, namely the Eldorado and Border faults. These faults have an associated right lateral movement that in some cases is greater than the vertical movement (Minter, 1986).

Two main fault systems are evident in post Ventersorp times. The first being vertical north-west and north-east trending wrench faults, and the second being reactivation of the major strike faults with a reverse movement (Minter, 1986). Late Ventersdorp dykes or intrusions strike consistently north or east and are usually near vertical in dip.

The Damn Fault is a normal down throw fault dipping towards north, and striking SW-NS. The throw on the fault ranges between 25m-35m. Fault 76X is striking SW-NE and dipping towards north. The fault has a 5m strike slip component, and 15m down-throw component.

Blast dyke has a downthrow of 35m on the northern side. The dyke has a thickness of 25m-35m, and is striking SW-NE and dipping towards north.

Bedding Plane Fault is an N-S striking fault in the western margin of the orebody which cuts off the lower reefs in all the mining blocks.

The presence of numerous minor faults is of more practical mining related interest. These faults, with a displacement generally of less than 15m and traceable over a strike distance of less than 150m are too numerous to classify.

It is believed that the eastern limb of the trough is less faulted than the western limb. Thus, they are mainly of Witwatersrand age, (pre-Ventersdorp in that they are related to the folding). Downthrows to the west appear to be more abundant in the north-south striking faults.

6.4Mineralisation

Exploitable mineralisation within the EA reefs, as developed in the Target Mine area, is associated with the presence of medium to coarse, clast-supported oligomictic pebble horizons. The presence of allogenic (buckshot) pyrite and detrital carbon is also common.

Although the lithostratigraphic location of the reef zone can generally be recognized throughout the mine, reef development and hence payability has no definable lateral contiguity, with favourable reef development being restricted to channelized zones of reworking. In this regard the laterally most persistent (dip and strike extent) reefs are the EA1, EA3, EA7 and EA12.

A further important point to note is that the minable extents of most reefs are generally restricted to the western limb of the asymmetric syncline and, in addition, to within 40m of the sub-outcrop areas. Payable extensions of reefs east of the trough axis have been encountered for selected reefs.

In the northern portions of Target, the exploitable mineralisation within the EA reefs is associated with medium to coarse clast to matrix supported oligomictic pebble horizons. However, allogenic (buckshot) pyrite along with free milling gold can be associated with oligomictic grit horizons especially east of the trough axis, representing distal facies of the above assemblage.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

In limited exposures towards the south of the lease area, allogenic (buckshot) pyrite is associated with medium to coarse grained, clast supported polymictic pebble horizons, with clasts of yellow, black and green shale, black chert and quartzite and white vein quartz. This may represent a localized influx of unsorted material into an area of reworking.

It is proposed that the Heeversrust (Eslburg) Member comprises several, locally overlapping alluvial fans with entry, in general, from the west. Beyond the present position of the trough axis (80m to 100m east of sub-outcrop against the EA12 reef), it is envisaged that a lower energy braided fluvial environment predominated.

6.5Deposit Type

The Target deposit is an alluvial fan-type deposit. The bulk of the mineralisation is specifically within the Eldorado Fan, a structure with dimensions of approximately 135m vertically, 450m down-dip and 500m along strike. This fan is connected to the subsidiary Zuurbron Fan, located between Target and Loraine, by a thinner and lower grade sequence of Elsburg (EA) reefs termed the Interfan area. To the north of the Eldorado Fan, several fans are known, including the Siberia and Mariasdal fans.

6.6Commentary on Geological Setting, Mineralisation and Deposit

The Target geological model is based on the stratigraphy as determined through the mining and drilling. The geological model has been well tested through years of mining and exploration drilling. New drilling does not result in significant changes to the geological model; however, it does improve the data density, which improves the delineation of the geological blocks.

The full potential of the Basal Reef, which produces 85% of the gold from the Free State Goldfield, has yet to be established on the Target property because initial drilling has focused on the shallower Eldorado (Elsburg) and Kimberley (Aandenk) reefs.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

7Exploration

Section 229.601(b)(96) (7) (i-vi)

Geological data has been obtained through initial surface drilling, followed by underground drilling, mapping and channel (chip) sampling.

7.1Geophysical Surveys

A 3D seismic survey covering 13 x 5km was conducted by French company, CGG, in 1997. Seismic attributes from the acquired 3D seismic data were used for the interpretation of structure, and to image lithological variations in the reef zones, and continuity of fault structures on a macroscale. Reflective amplitude plots showed the base of the Klipriviersberg lavas as a major reflection unit above lower reflection amplitudes of conglomerates. Linear amplitude lows were interpreted as faults or potential dykes.

7.2Underground Mapping

Stope and development mapping is undertaken by the geologists. Strike tape is setup along gullies (strike) and base tape along the stope face, and both are fixed using the latest survey pegs installed in the workplaces.

Reef position and other lithological and stratigraphic information are recorded and measured relative to the base tapes (strike tape). In trackless development, the base tape is fixed parallel with the end using two survey pegs, while the second tape is used to measure and record information from base tape to the side-walls. The lithological units and geological features are identified and marked before mapping commences. Stratigraphic interpretation is made easy by the presence of numerous distinctive quartzwacke, and multi-colour markers.

Mapping sections are identified and marked at intervals (3 – 10m) depending on the level of detail required in line with the complexity of geology on the face. Inclined development includes raises, winzes, boxholes, travelling ways, slushers and inclined shafts are also mapped applying the same principle as in the flat ends. The base tape must therefore provide the reference line from which both horizontal and vertical measurements are made during mapping. The base tape must be located in three dimensions relative to the two survey pegs.

Once on surface, the geologist transfers the information from the field-book to compile a geological mapping report. The mapping reports depict the geological information graphically relative to the survey measurement points. Data from the mapping is captured into StopeCad, and subsequently get exported into Datamine for geological modelling.

Geological mapping and interpretation of stratigraphy is done by the geologist, and interpretation goes through internal peer reviews and is signed off by the section geologist and head of geology to ensure consistency. Data from the mapping is subsequently incorporated into the geological models.

7.3Topographic Surveys

No topographic survey has been completed in the past, and in the opinion of the QP, these surveys are not necessary as the information in this TRS relates to an underground operation.

7.4Channel Sampling Methods and Sample Quality

Channel sampling is undertaken according to industry best practice, as well as the Mine’s underground sampling procedure.

Two parallel lines, 4cm apart are drawn at right angles to the dip of the reef, across the reef exposure, from hanging wall to the footwall of the stope panel or development end. Another line is also drawn parallel to the average reef dip at the base of the reef package.

Sample intervals are marked beginning at the base of the reef. The samples extend the full height of the face and extended beyond the parallel lines to ensure that the sampled position can be located after sampling is completed. Reef bands are marked off by drawing lines parallel to the reef contact, 2cm below and above the reef contacts. The inclusion of such waste is essential to avoid loss of any gold, which may be concentrated on the contact between reef and waste. Samples are chipped from the rock face at 2cm intervals. Samples


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

are weighed and submitted to the designated laboratory for assay. A detailed description of the sampling process is provided in Section 8.1.1.

7.5Surface Drilling Campaigns, Procedures and Results

Initial surface drilling carried out during the 1980s, under the auspices of Sun, was designed to delineate the northward continuation of the synclinal axis, around which most of Loraine Mine’s gold deposits are located. Following the incorporation of Target Exploration Company in 1990, a total of 17 drillholes and three long deflections from existing drillholes were drilled in three arrays parallel to the western margin, namely the Western, Central and Eastern arrays. The location of the drill holes is presented in Figure 6-3 and Figure 7-1.

The Central Array targeted the EA reefs, while the Western and Eastern arrays focused on definition of the proximal (steep west limb) and distal Kimberley and Basal reefs, respectively (Figure 7-1).

7.5.1Drilling Methods

Surface diamond core drilling was undertaken using Sulliman 50 drill rigs, which typically drilled CHD (58.7mm diameter) core size to depths of 4,000m. The drill grid spacing of the surface drill-holes intersections is up to 500m on original holes and deflections typically intersected reefs from 170m to 250m away from the original holes.

No surface drilling activities were undertaken since the completion of ERO4 drill hole in 1995.

7.5.2Collar and Downhole Surveys

Both surface and underground exploration drill holes are surveyed to confirm both collar position and trajectory. Surveying of exploration drillholes at Target is outsourced to Digital Surveying (Pty) Limited.

7.5.3Logging Procedure

Upon arrival at the core yard, drilled core is cleaned and marked at every meter interval. The core is then orientated so that the low point of bedding is coincident with the edge of the angle iron. The core splitting line is defined and drawn by following low point of the bedding at the base of the reef units from left to right in the direction of increasing drillhole depth. The core is then rotated 90° and a yellow split line is drawn prior to the cutting. All drill cores are photographed prior to logging and sampling. The logs are checked by the Senior Geologist prior to sampling.

Drill core logging is quantitative and qualitative. The following information is recorded:

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and alteration.

The geologist responsible for logging the core keeps the original paper record. Internal peer reviewing is undertaken on the interpretation of the stratigraphy and spatial correlation of drill holes. The logs are checked by the Senior Geologist prior to sampling once stratigraphic interpretation is agreed upon and signed off by the section geologist or head of geology. Data from core logging is then captured into Sable Database Management System by the geologist responsible for logging.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 7-1: Location of Target Surface Drill Holes
Source: Avgold
Figure 7-2: Location of Target Underground Drill Holes


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

7.5.4Drilling Results

Drill hole ERO1 in the Central Array (Figure 6-3, Figure 7-1) was collared over the predicted position of the next EA reef fan. A well-mineralised package of vertically superimposed conglomerates in the Eldorado Formation was intersected between 2,194m and 2,353m below surface, yielding a gold grade of 6.42g/t over a true interval of 128.63m. More than 17 individual conglomerate reefs are superimposed in this section.

Subsequent long deflections from the primary drill hole were aimed at substantiating the tonnage and grade potential of the newly discovered ERO1 mineralisation. Drill holes on the periphery of the proposed fan outline were deflected toward the fan to establish areal continuity of the reefs (Z2NW, ERO1SE, ERO1S). These deflections intersected the EA reefs at distances of 250m south-southeast, 170m south-southeast and 130m south-southwest of the original ERO1 intersection. Gold values returned from the drill holes constrained the outline of the fan.

The encouraging gold grades obtained from the surface drilling programme led to the decision to drill a high-density pattern from an underground drilling platform. A summary of the drill holes drilled at Target is presented in Table 7-1.

Table 7-1: Summary of Surface Drill Holes Drilled at Target


Year	Company	No. Drill Holes	Surface (m)	Underground (m)
1981-1992	Anglovaal	177	134,418
1992-1995	Anglovaal	2	3,445
1995-1998	Anglovaal	189		84,992
1997-2000	Anglovaal	80		123,484
2002-2004	Anglovaal	43		11,548
2006-2007	Harmony	18	6,933	599
2007-2021	Harmony	351		25,695
Total		860	144,796	246,248

With over 499,233 samples having been taken since 1980, the results are too voluminous to be reported in this report. The results have, however, been included into the geological modelling and Mineral Resource estimation process.

7.5.5Core Recovery

Upon delivery to the core yard, and prior to logging and sampling, the drill core is checked to ensure 100% core recovery. Core recovery is determined by dividing the measured length of the recovered core by the total length of the core run.

An intersection is complete and representative if core recovery is greater than 99%. Drill holes with poor core recovery are not sampled. Extra caution is taken during the drilling process to ensure maximum core recovery on reef intersections, to prevent sample bias.

7.5.6Sample Length and True Thickness

Sample lengths were taken at 25cm intervals within the reef which is a representative sample. Mineralisation is perpendicular or at an angle to the drill holes. In the case of angled holes, all drill hole reef intersection widths are corrected to true thickness for gold value calculation.

7.6Underground Drilling Campaigns, Procedures and Results

The positive surface drilling results led to the construction of an underground drilling platform. Twin declines, of sufficiently large dimensions to support a man/rock conveyor system and to provide adequate ventilation, with connecting crosscuts at 100m intervals, have been developed from the 67 level at Loraine. The total length of the decline system is sufficient to provide geological information along the entire strike length of the Eldorado Fan.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Underground exploration drilling has been on-going throughout the operational life of Target as the mine deepens. Most of the underground drillholes are used in the geological modelling and estimation of the current Mineral Resources. (Figure 7-2)

7.6.1Drilling Methods

Underground diamond core drilling is conducted using hydraulic driven drill rigs, which typically drill AXT core. The standard sample length is 25cm, where half a AXT core is sent for analytical analysis. Drill holes are typically short, rarely exceeding 300m in length.

Fans of drill holes are drilled from diamond drilling bays, which are developed at 50m intervals along the decline return airway (“RAW”) decline. The drilling fans consist of up to ten individual drill holes at inclinations ranging from -15° East to +30° West of vertical, or as dictated by local geological structures. An example of a stretch of underground drilling is presented in Figure 7-2, in relation to the original surface drill holes.

Maximum drillhole lengths of 350m are required for complete Dreyerskuil intersections in the synclinal axis. Drill holes are stopped once the Ventersdorp lava has been intersected, or, in the case of flatter drill holes, once the trough axis has been identified and the drill hole is drilling parallel to the bedding.

Due to the divergent nature of individual drill holes away from their collars, intersection points on the numerous EA reefs vary in accordance with distance along the drill hole. Drill hole fans were originally constructed to obtain an optimum 50m x 50m grid on the base of the Dreyerskuil Reef (DK1a).

7.6.2Collar and Downhole Surveys

Drill holes are surveyed to confirm both collar position and trajectory. Surveying of exploration drill holes at Target is outsourced to Digital Surveying (Pty) Limited. All underground drillhole surveys are conducted using an Electronic Multishot Survey instrument. The instrument is a magnetic based tool and as such all results are relevant to Magnetic North, utilizing normal mining conventions of Dip Positive Up (meaning a positive measurement on the inclination means a drillhole drilled with a positive plunge) and 0 = NORTH (meaning a direction / azimuth of 0 is Magnetic North).

7.6.3Logging Procedure

Upon arrival at the core yard, drilled core is cleaned and marked off at every meter interval. The core is then orientated so that the low point of bedding is coincident with the edge of the angle iron. The core splitting line is defined and drawn by following low point of the bedding at the base of the reef units from left to right in the direction of increasing drillhole depth. The core is then rotated 90° and a yellow split line is drawn prior to the cutting. All drill cores are photographed prior to logging and sampling. The logs are checked by the Senior Geologist prior to sampling.

All drill cores are photographed prior to logging and sampling. Drill core logging is quantitative and qualitative. The following information is recorded:

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and alteration.

The geologist responsible for logging the core keeps the original paper record. Internal peer reviewing is undertaken on the interpretation of the stratigraphy and spatial correlation of drill holes.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Drill hole log data is then captured into Sable Database Management System by the responsible geologist.

A standard procedure for the underground sampling is used to ensure quality of sampling information and safety in its collection. All samplers and sampling crews are trained based on the rules of the sampling standard. Particular attention is given to quality of information captured, and planned task observations are routinely carried out to ensure adherence to the standard.

7.6.4Drilling Results

By the end of December 2021, a total of 96,041m of drilling was completed. Data density and distribution for majority of reefs are generally 25m on strike and 40m on dip, with higher density in the western limb of the asymmetric syncline.

Exploration drilling was undertaken on 284 level for Block 3 and then 284 take over exploration for the more proximal western portion of Block 3. Exploration into Block 12 was done at various drives and a recent drilling programme was designed to improve Mineral Resource classification. The density of drillholes decrease towards the east because of limited access. Grade was also distance sensitive towards the east. A summary of the drill holes drilled at Target is presented in Table 7-1.

7.6.5Core Recovery

An intersection is complete and representative if core recovery is greater than 99%. Drillholes with poor recovery are not sampled. Extra caution is taken during the drilling process to ensure maximum core recovery on reef intersections, to prevent sample bias.

7.6.6Sample Length and True Thickness

Sample lengths were taken at 25cm of the reef and is considered as representative of the mineral deposit. Mineralisation is perpendicular or at an angle to the drill holes. In the case of angled holes, all drill hole reef intersection widths are corrected to true thickness for gold value calculation.

For underground drillholes, all widths are measured at right angles to the dip of the reef. Individual sample widths are measured from bottom to top along the two parallel lines. All measurements are made to the nearest centimetre.

7.7Hydrogeology

Throughout the mine, water and gas, usually in small quantities, may occur at the contact zones of dykes and sills. Intersections of water and gas in geological cover drilling account for most of the delays in the mine development due to sealing that must be done before mining activity can resume. Prominent East-West striking water dyke which carries significant amount of water was intersected at 272 RAW and 272 Cross Cut 96.

7.8Geotechnical Data

Geotechnical issues related to underground workings are discussed in more detail in the Mining and Mine Design sections (Section 13).

7.9Commentary on Exploration

Surface drilling was used as the initial exploration drilling, and this was later infilled to provide sufficient detail for geological modelling and Mineral Resource estimation. Subsequently more drilling was undertaken from underground between 1995 and 2000 to further improve confidence on the understanding of the orebody and geological modelling.

The underground infill drilling system is in place to improve data density in specific areas (planned massives) and are drilled from the underground development access drives.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to support the estimation of Mineral Resources and Mineral Reserves.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

8.Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

This section summarises information relating to the sample preparation on site through to the laboratory preparation and analysis.

8.1Sampling Method and Approach

Sample types used to support both production and geological exploration include diamond drill core samples and channel (chip) samples.

8.1.1Channel Samples

A standard practice for the sampling of stopes and development ends is required to ensure quality of sampling information and safety in its collection. Such a document exists within Harmony, and all samplers and sampling crews are trained based on the rules of the sampling standard. The standard specifies all the steps and rules involved in the preparation of the face and the collection of samples, as well as all safety aspects of sampling.

The channel and sample lines are chipped out using a standard chisel and mallet. An electric saw has previously been used for taking samples in some development sections and is considered an excellent method of taking samples as it allows for an evenly cut and more representative sample. Practical difficulties and safety issues forced an end to sampling with the diamond saw.

The samples are individually chipped out to an even depth (1-2cm to replicate the same amount of sample as would be recovered from half BX core), commencing from the bottom sample. The remainder of the samples are chipped in succession up the face. Contamination of samples is reduced to a minimum by starting at the bottom.

A sampling dish is used to collect the chipped samples. If any contamination occurs from the surrounding rock, the sample is discarded and the section re-sampled. The samples are transferred from the sample dish to the sample bag. The sample dish is cleaned thoroughly before using it for the next sample.

All geological data (faults, dykes) between sampling sections are measured and recorded in the sampler’s field book. The sampler also records the numbering and positions of samples.

Samples are taken from underground by the samplers and delivered to Steyn laboratory. All inter-person transfers are recorded. This process continues until the samples are delivered to the laboratory, where the chain of custody form is signed evidencing the date and time of sample receipt.

8.1.2Core Samples

Once core logging is completed, exploration drill-holes core is split into two halves prior to sampling, while in many cases full core is sampled on infill drill holes. The guideline is that all exploration drill core, as well as those drill holes where interpretation of stratigraphy is complex, should be split. The HOD Geology and Section Geostatistitian must ratify holes that full core is sampled and those that core is split.

Core that has to be split is marked off and sampled. Reefs are sampled in such a way that the samples overlap the top and bottom contacts by 2cm to prevent dilution of the reef samples and to determine existence of mineralisation on contacts.

The core yard assistants use the contacts marked by the Senior Geologist to demarcate the samples. The standard sample length is 25cm (±10cm) and the core is split along the apparent dip direction (low point) to preserve the apparent dip angles for the geologist to record. The split also follows-on from one tray to the next.

Details of the samples are captured on hard-copy log sheets and include the drillhole name, samples numbers, sample depths, from and to interval, and date on which the samples were submitted for assay. The log sheet is captured on the electronic database pending results from the designated laboratory.

8.2Density Determination


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

A relative density (“RD”) of 2.71 has been determined for Target based on a comprehensive study undertaken by Avgold in early 2000, under supervision of Dr B Northrop. A process to determine the specific gravity using Snowrex Precision NHV-3 density scale (Archimedes method) was re-started in 2013, which validated the specific gravity of 2.71 within the current mining blocks, including Block 3 and Block 12.

A total of 19 drill holes in different strategic locations (mining blocks 3 and 12) were measured until 2017. The measurements were performed on the remaining half of the samples sent to the laboratory for analysis. The sample sizes used for RD measurements were the same as the sample sizes sent to the designated laboratory for assays (half BX core ±25cm length).

During 2018, a total of four exploration drill holes (GBH2210, GBH 2216, GBH 4028 and GBH4034) in Block 12, consisting of 520 samples, were measured for RD using the Archimedes method. The scale was calibrated regularly according to the prescribed procedure. The RD of 2.71 was measured on EA reefs.

8.3Sample Security

Chip samples are put in sample bags, sealed and transported to the core yard on the same day as they are collected. The core yard is a secure facility with access control measures in place. Samples are subsequently delivered to the laboratory by the mine.

Cores are delivered to the core yard at the end of each day for secure storage. Sampling only takes place at the core yard. The samples are put in the bags and sealed and stored until they are delivered to the laboratory.

Samples can only be transported by a permit holder for transporting gold bearing material. Waybills and registers are checked and signed off by security prior to transporting samples to the laboratory. The samples are received at the laboratory from the mine in locked containers with seals.

The sample labels are scanned at the designated laboratory and the batches are compared to the submitted sample sheets. The scanned bar codes are kept at the laboratory and compared to the work sheets automatically created by the system. Sample lists submitted by the mine are used to compare samples received by the laboratory.

8.4Sample Storage

All pulp samples of exploration drill hole intersections and underground chip sample are kept for a few months at the laboratory and later discarded. The remaining half of the sampled core of exploration holes is kept at the core yard for future references.

8.5Laboratories Used

Both the underground and surface exploration samples were historically sent to the SGS South Africa (Pty) Limited (“SGS”) independent laboratory, with Anglo American Laboratories used as a secondary independent laboratory.

Currently, both core and chip samples are sent to are sent to the internal Steyn laboratory. Steyn laboratory is ISO/IEC 17025:2017 accredited for gold analysis by the South African National Accreditation System (“SANAS”). The SANAS accreditation number for Steyn Laboratory is T0520.

8.6Laboratory Sample Preparation

Upon receipt at the laboratories, the samples are dried, crushed, pulverized and goes through the sorting process. Chip samples are pulverized, and the aliquot size of the samples is 25g. The core samples are milled to a pulp as per the internal Standard Operating Procedure document (reference no. M501). From the prepared pulp, an aliquot sample size of 50g is mixed with the prescribed flux and fused at a temperature ranging between 1,100°C to 1,200°C.

8.7Assaying Methods and Analytical Procedures


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All samples are assayed for gold using fire assay and gravimetric finish methods. Pulverised samples (85% passing 106 microns) are fused with a suitable flux. The flux combines with the gangue to form a fluid slag and the litharge in the flux is reduced to minute globules of lead.

The rain of lead globules, falling through the molten mass, collects the particles of precious metal and coalesces into a button at the bottom of the crucible. For effective collection, the composition of the flux, the temperature and its rate of increase is optimised. On cooling, the slag solidifies and is separated from the lead button containing the precious metals.

During cupellation, lead is oxidised to molten litharge, which wets the inner surface of the hot porous cupel and is absorbed. The molten precious metals are not absorbed because of their high surface tension, and because they do not oxidise. Parting is the separation of silver from gold alloys by acid dissolution of the silver. Where gold is not soluble, silver is readily soluble in hot nitric acid.

The prill after parting, has the black amorphous appearance of sponge gold which must be annealed at 800°C. After annealing, the gold contracts into the form of a coherent, malleable prill of the classic golden yellow colour. The mass of the prill is measured on an assay balance. To ensure that a high standard of analysis is maintained, each step of the analytical process and procedure, including the adherence to safety standards, is checked by a supervisor.

8.88.8 Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

The assessment of assaying accuracy and precision is carried out using certified Standard Reference Materials (“SRM”), blanks and duplicates. SRMs, blank samples and duplicate samples are added to the underground chip samples and drill hole core samples sent to the assay laboratory.

If the SRM or blank sample has been deemed to have failed, the entire batch of samples assayed with this failed QAQC sample must be identified. A request must then be sent to the laboratory requesting the laboratory to repeat the assay procedure on all samples within the batch.

A second SRM or blank sample is provided to the laboratory to include with the batch of samples. Should the batch of samples fail the QAQC standards again, these samples are excluded from the sampling database (not captured in the sampling system), and the panel/drillhole will have to be resampled if necessary. In addition, regular audits of the laboratory processes and facilities are conducted by mine evaluators and regional experts to monitor compliance and quality controls.

8.8.1Standards

A range of SRMs were sourced from the African Minerals Standards (“AMIS”) and inserted into the sample sequence by the logging geologist.

For analysis of underground chip samples, the total number of SRMs, blank samples and duplicate samples to be added to the daily underground samples equal approximately 5% of the total underground samples submitted for that day. Generally, this equates to approximately 2% of each type of QAQC sample.

For analysis of underground/surface drill holes one gold SRM is required for every 20 drill hole samples assayed, or 5% of the total drill hole samples analysed.

A total of 166 SRM were submitted to Steyn during 2021, for which the results are summarised in Table 8-1. A total of eight (4%) SRMs failed with the first analysis but passed with second analysis, where samples were sufficient to repeat. Review of the QAQC performance of the SRM AMIS0430 sent to Steyn illustrates some outliers falling outside two Standard Deviations from the expected result.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Table 8-1: Summary of Steyn SRM Performance


SRM	No. Submitted	No. Failed	% Failed	% Bias
AMIS0428	48	0	0.00	-1
AMIS0429	53	1	2.00	2
AMIS0430	65	3	5.00	6
Total	166	4	2.41

8.8.2Blanks

A total of 72 blank samples were submitted to Harmony Laboratory during 2021. The lowest detection limit at the laboratory is 0.063g/t. A control chart for performance was assessed for the blank samples. The results indicated that two outliers (results outside two standard deviations) were observed out of a total of 72 observations (2.7%).

8.8.3Duplicates

For the samples analysed at Harmony Laboratory during 2021, results of duplicate analysis indicated issues with precision for those samples assaying below 4.0g/t and higher than 7.7 g/t. The assay results for the grades within this range returned precision within the required limits.

8.9Commentary on Sample Preparation, Analyses and Security

It is the opinion of the QP that:

•the chip sampling method is appropriate for the mineralisation styles encountered at Target;

•the drill core sampling method is appropriate for the mineralisation styles encountered at Target;

•the RD of most of the EA reefs indicate a 3% lower RD than the expected 2.71. This was, however, not considered material to the tonnage estimates;

•the RDs for the DK reefs were above 2.71, and it was expected because of the higher clay content and lavas;

•the sample preparation, security and analytical procedures followed for gold grade determination are adequate; and

•the results of the QAQC assessment have been appropriately addressed to ensure that the assay results of the primary samples are adequate for Mineral Resource estimation.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

9Data verification

Section 229.601(b)(96) (9) (i-iii)

9.1Databases

Underground and surface drill hole data is stored in SABLE® Data Warehouse (“SABLE”) database. The drill holes data is stored in real coordinate systems (True North is 0° and LO X, Y and Z above MSL). This standard is used to facilitate the presence of both surface and underground drill holes in one database.

SQL queries were run on the database allowing for the data transformation from the LO system into the mine local grid system, where True North is 90° (east bearing or True North plus 90°). The SQL queries also zero deflections and recalculate “From” and “To” values. Chip sampling data is stored in GEOLOG database. Both SABLE and GEOLOG databases are protected through administration rights allocated to an authorised administrator.

9.2Data Verification Procedures

Data verification procedures included the following:

•the drillhole database is checked against the original logs;

•the database is checked for missing collar coordinates, collar position and elevation errors, downhole survey errors, interval errors and duplicate sample records;

•Assay results for drillholes when received from the laboratory, are captured into SABLE by the Data Manager (Senior Geostatistician). The QC sample results are assessed for performance before the primary sample results could be used for Mineral Resource estimation;

•the primary assay results captured in the database are validated by spot checking a selection of drillholes used in the current Mineral Resource estimate; and

•the assays results captured in the GEOLOG and SABLE databases are checked against the original laboratory certificates.

Duplicates, as well as any obvious inconsistencies were removed from the GEOLOG database. The extracted data is visually checked in DatamineTM modelling software to ensure that spatial position and elevation is correct.

9.3Limitations to the Data Verification

Although every effort has been made to ensure the drillhole data is correct, accurate and valid, there are some risks to the data integrity, and below are some risks:

•Co-ordinates: The X and Y coordinates in many cases are very similar in nominal terms and the possibility exists that in occasional cases the co-ordinates may be reversed. Spatial verification of drill-hole in 3D by HOD Geology and Section Geologist minimizes this risks; and

•Zone Coding is a process whereby a STRAT code is assigned to package number of mineralised reef units into one zone in the drillholes. Process is reviewed and signed off by HOD Geology and Section Geostatistitian to ensure consistency.

The full reef exposures are the basic requirement to ensure zone coding is conducted properly and in the manner in line with the mine’s procedure. In many occasions, underground chip sampling on EA reefs is done on partial reef exposures due to the recommended stoping widths and development height limitations, and as a results data collected from the EA chip sampling is not used for modelling process.

9.4Comment on Data Verification

The QP is of the opinion that the Target drill hole and sample database is reliable and adequate for the purposes of Mineral Resource estimation.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

Target and its processing facility have been in operation since November 2001 as such the processing method is considered well established for the style of mineralisation processed. The plant therefore makes use of historical trends and data as a basis for their recoveries of the CRG of the Witwatersrand Supergroup. However planned projects aimed at optimisation, will have the appropriate test work performed.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

11.Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

The current Mineral Resources for Target have been estimated using DatamineTM. A scripting/macro system has been generated, which is linked to a customised scripting menu. This scripting menu allows for professional and easy managing of the data and building of geostatistical models.

The Target orebody is comprised multiple reef packages. The mining area is divided into blocks delineated by major fault structures, where each block comprises of a series of reef packages.(Figure 11-1). Each of the reefs packages within these blocks is modelled separately.

Geological modelling, via wireframes of faults and lower surfaces of mineralized packages, is the primary control in the geostatistical evaluation. The estimation method used for local Measured, Indicated and Inferred Mineral Resource estimates at Target is ordinary kriging. A total of 23 reef packages are estimated individually without data from adjacent reefs. Estimates are generally kriged into parent cells and then assigned to sub-cells, using associated variograms and estimation parameters.

Distinctions between the Mineral Resource categories, based on data density and spatial relationships of gold grades, are defined through variography. Where block grades are estimated by data and separated by distances greater than the maximum grade continuity ranges, they have been classified as an Inferred Mineral Resource.

11.1Geological Database

The Target Mineral Resource estimate is based on historic drill hole and chip sampling data collected since the mine began operation in the early 1990s. The drill hole and chip sampling information consists of only those portions of the sampled sections that are thought to be representative of a particular mineralized horizon or reef package. They therefore represent a sub-set of the drill hole and chip sampling database with the unrepresentative sections and the “waste” zones between the mineralized horizons removed, leaving only that data that is suitable for use in evaluation. All information has been de-surveyed so that it lies in the correct position and orientation relative to the mineralized horizons as it was drilled or sampled i.e., “un-faulted” to move it back into its original position relative to a reference point in the mineralized horizons.

Due to the complex nature of the lithostratigraphic units at Target, a system of defining the stratigraphy (Zone Coding) has been designed to assist in highlighting only the most obvious mineralized zones in the drill hole data. Several stratigraphic descriptions are captured during chip sampling and core logging and stored in the SABLE GEOLOG database.

11.2Global Statistics

Histograms and statistics of the raw data are calculated for each geological domain for comparison purposes. The coefficient of variation ("COV"), calculated by dividing the standard deviation with the mean, gives a measure of the variability of the data. A high COV (>1) represents highly variable or highly skewed data, which may require some form of capping of extreme values to lower the COV to a more reasonable value (c.1).

The global statistics by geozone are presented in Table 11-1.

Histograms and statistics of the raw data are calculated for each Zone Code for comparison purposes. Outlying values for both g/t Au and channel width (“CW”) are calculated per geo-zone at an optimal percentile using the Quantile process.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 11-1: Location of Structurally Defined Blocks


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Table 11-1: Summary of the Gold Assay Descriptive Statistics


Block / Reef ID	No. Samples	Minimum (g/t Au)	Maximum (g/t Au)	Mean (g/t Au)	Variance	SD (g/t Au)	COV
1BC	5,273	0.001	341.330	6.48	281	16.76	259
1MC	8,715	0.001	653.400	4.03	208	14.44	358
1BC	4,476	0.001	351.000	5.62	246	15.67	279
2BC	2,100	0.005	423.000	5.26	254	15.94	303
3AC	2,628	0.005	280.280	4.82	314	17.72	368
3BBC	2,326	0.001	440.000	7.81	786	28.04	359
3BMC	14,331	0.001	1,133.333	9.53	1,485	38.53	404
3BTC	3,087	0.001	451.000	3.77	197	14.02	372
3CC	4,875	0.001	880.795	5.55	321	17.92	323
5BC	1,950	0.005	90.821	3.36	68	8.23	245
7ATC	6,616	0.001	689.300	6.89	412	20.29	295
7BMC	6,379	0.000	829.733	8.24	1,077	32.82	398
7BMH	4,067	0.001	1,433.333	7.15	1,259	35.48	497
8BC	4,437	0.005	463.000	9.71	943	30.71	316
8MC	3,745	0.001	255.015	6.34	445	21.11	333
9BC	2,732	0.005	1,087.700	6.21	961	31.00	499
12C	4,223	0.005	959.900	7.68	943	30.70	400
13AC	2,924	0.005	1,951.870	15.58	4,470	66.86	429
13BQW	1,877	0.005	569.500	12.35	1,463	38.24	310
13CC	2,331	0.000	564.700	6.48	615	24.79	383
D1AC	4,459	0.005	1,233.600	15.41	3,112	55.78	362
D4DC	24,004	0.000	3,116.020	32.03	14,391	119.96	375
D9A	10,180	0.000	572.440	4.02	340	18.43	458
Total	127,735

11.3Geological Interpretation

Geological sections orthogonal to strike were interpreted to form the basis of the geological model. The geological sections were orientated in logical positions relative to de-surveyed underground drillholes. Sections were created at intervals, selected so that each section lies along a series of drillholes. The strings falling along a particular field are assigned the same code in the “SECTION” field. The geological sections formed the basis of the geological wireframe model creation in DatamineTM version 1.4.132.0.

The structural and geological styles were propagated from section to section, by superimposing successive sections on one another. When constructing sections, the following datasets were be utilized:

•drillholes from SABLE;

•geological mapping from StopeCad; and

•structural mapping from StopeCad.

A great deal of information for the section creation was interpreted from drill hole information. Although underground geological mapping was also utilised more specifically for identifying structural traces and orientations.

Base intersection positions for individual Zone Codes were utilised. Due to the abundance of small-scale structures (less than 2m), it was also necessary to simplify the interpretation to honour major structural features only. All the sections were interpreted in DatamineTM wireframing.

The wireframes were checked in two ways. The first was a visual inspection of the wireframes to check that the upper and lower surfaces do not cross through each other and that the surfaces do correspond to the relevant horizons in the drill holes and the development mapping.


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11.3.1Unfolding

The process of unfolding has remained unchanged for blocks 1, 2, 5, 6 and 9. The process of unfolding has, however, changed for blocks 4 and 8. Essentially the wireframe models are used to determine the relative displacements of the faults and to create the empty block models.

The drill holes and chip sample data sets are then moved back to their “original” positions according to the X, Y and Z displacements identified by the modelling process.

It became apparent that the previous unfold of data and estimation process developed by ExplorMine Consultants for block 4 and 8 also introduced bias, like Block 3, Block 12 changed in 2017. Block 5 was also identified to resemble similar bias and was converted in 2018. Initial testing done indicated that the estimation model in the 3D position was not corresponding to the data graphically. Somehow during the back transformation of the model, it artificially shifted the true position of the model blocks further to the east.

Since most of the western area contains higher grades the artificial shift of the model to the east caused the higher grades to smear or extend further than it should according to the data. After several attempts a simple unfold of the data managed to reduce the error and improved correlation between estimated grade and its corresponding data in the 3D space. The same methodology was applied to blocks 4 and 8 for 2017 and Block 5 for 2018 Mineral Resources.

11.3.2Unfaulting

To accurately determine the relative displacement across a fault plane or fault zone two formerly contiguous points are identified (one on each side of the fault plane/fault zone) such as a line of intersection of two planar features.

In the absence of a feature such as this there are limited corrections that can be made with the data (such as correction for elevation differences) but a true reconstruction of the original data pattern may not be possible or at least there may be no evidence that the shifted data is in the correct position.

To reconstruct the “original” configuration of sample data, Blocks 1 and 2 are used as an “anchor” and the movements necessary to bring adjacent data back into the “original” position relative to a particular mining block are determined.

The only displacements evident are in the late-stage northeast-southwest trending normal faults defining the southern and northern boundaries of Mining Block 3, the Damn Fault and Blast Faults, respectively.

11.3.3Structural Update

Major structural change occurred in Block 8, whereby direction and dip of the Border Fault changed resulting in the loss of Mineral Resources on DK4 Reef. The attitude changes of the fault structure did not affect other reef units.

These structural changes were only established late with new data collected from reef development mappings and thus confirming unpredictability nature of Border Fault’s dip. Special drilling program to mitigate risks posed by erratic nature of the Border Fault will be put in place in future exploration projects (i.e., BLK12 DK4 Exploration project).

In Block 12 strike direction change on 76X Fault was established with data collected from mapping of 287 EA3 North Reef Drive. The change resulted in minor loss of Mineral Resources on reefs such as EA1 and EA3 which forms part of major missives mining horizons at Target.

Structure has been identified as a major risk in Block 12 due to proximity or presence of major structures such as Blast Dyke, Border Fault and Bedding Plane Fault, and infill drilling will be done is to mitigate the risks posed by faulting.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

11.4Drill Hole De-survey

Drillholes are de-surveyed utilising the DatamineTM HOLES3D de-survey process. An error log is generated as part of this process and any identified errors are repaired accordingly. A DatamineTM script is utilised to prepare the downhole surveys to add in a zero-position survey, which DatamineTM requires to de-survey a drillhole.

A core bedding angle (“CBA”) field is also created, which is sourced from both the Assay and Geology SABLE logs. Missing CBA values are populated using an algorithm which utilises existing data. True channel widths are determined in later processes using the CBA field. The average gold grade for each sample is determined from the SABLE Assay Log.

11.5Compositing

Compositing at Target Mine starts with correlation of reef/lithological units of the same stratigraphic position over a significant amount of drill holes. The aim of the process is to identify stratigraphic positions of economic interests, and the process is primarily based on the consistency of gold mineralisation. The reef units of gold mineralisation on each hole are merged into one simplified mineralised package (Zone Code/Strat5) which will later be used as a full-length reef composite during estimation purposes. Chip sampling data, which is largely collected in the Narrow Reef mining section where DK reefs are mined, is composited over the full length of the intersection.

11.6Capping

Capping allows for meaningful semi-variogram modelling and avoids potential over-estimation due to extreme sample values. aping parameters for both grade and CW are summarised in Table 11-2.

Table 11-2: Grade and CW Capping Parameters


Block / Reef ID	Au Cut (g/t) (Max)	CW Cut (cm) (Max)
12C	397	558
13AC	465	398
13BC	456	228
13BQW	456	331
13CC	422	287
1BC	199	820
1MC	164	950
1TC	187	686
2BC	196	449
3AC	207	419
3BBC	385	346
3BMC	548	950
3BTC	183	340
3CC	203	300
5BC	85	251
7ATC	257	610
7BMC	428	566
7BMH	441	458
8BC	392	391
8MC	236	437
9BC	300	519
D1AC	520	325
D4DC	603	335
D9A	204	306


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

11.7Experimental Semi-Variograms and Fitted Models

The directions and magnitude of grade continuity for each reef were determined through modelling normal variograms. The data representing all the Zone Codes used to calculate the experimental variograms were converted to a standard elevation of -2,900m. There is also a very steep limb area in Block 12, which has been evaluated in the vertical plane.

The final modelled variograms and search volumes done on the horizontal plane were also used for the steep planes due to limited data available on the steep areas. Continuity directions are quite variable between individual reefs.

For some of the reefs (2bc, 3bbc, 3btc, 3cc, 5bc, 7bmc, 8bc, 8mc, 9bc, 12c, 13ac, 3bqw, 4d4c and d9a) it was necessary to apply a log transform to the sample values (g/t) to get a visible relationship in the spatial variability of the samples. Since natural log values can be back transformed to real values, the semi-variogram models derived from transformed sample values can be used to predict spatial variation.

The various search parameter files are based on the modelled semi-variograms. The defined search ellipse adheres to the direction of the associated semi-variogram, as well as the range distances. The minimum and maximum number of points used for kriging was optimised.

The current minimum and maximum is 4 and 10 for Measured Mineral Resource estimation, 3 and 8 for indicated Mineral Resource estimation and 1 and 20 for Inferred Mineral Resource estimation. For the search parameter files, the ellipsoid search is equivalent to the associate variogram angles and ranges.

11.8Block Model

Pivot points defining a significant change in attitude of the wireframe reefs in estimation blocks were created, for the block model and data sets for each reef. This facilitated the rotation of the data into vertical and inclined (varied from 2° to 25°) planes for each reef.

The block specific pivot point was utilized to define where block would be filled in the X-Z plane for vertically orientated estimates and in the X-Y plane for inclined estimates. This block modelling process was used to facilitate the creation of a single cell in the true vertical orientation of the reef, so that true volume calculations could be estimated into the block model from estimated CW. The methodology allows for an estimated spatially variable reef CW and volume.

The vertically estimated block models were combined with the inclined estimated block models (the standard Target block model Proto412.dm was utilized). A 5m overlap between the two block models could ensure model continuity. The models were corrected for overlaps and gaps.

During the combination of the individual reef models an adding order (bottom to top) was established to ensure on lapping geological sub- outcrop relationships were honoured.

11.9Grade Estimation

Gold grades have been estimated using Ordinary Kriging interpolations into the parent cells. This estimation is then assigned to the sub-cells. After estimation is done on the set position, the “SDIP” and estimated CW is used to calculate the true model thickness of the reef (CW_C). CW_C=CW_T/COS (SDIP).

Each model gets restored to its original elevation and combined with the rest of the fault blocks for that specific reef. The 23 individual reef models are combined for each block. The distribution of the gold grade is show in Figure 11-2.

11.10Relative Density and Tonnage Calculation

An average specific gravity of 2.71 is applied to covert the model volume to tonnes.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 11-2: Distribution of the Gold Grade at Target

11.11Block Model Validation

The Target block model was also validated using the following:

•visual comparisons with the raw drillhole data;


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

•comparisons of the raw drillhole data statistics with the model statistics;

•model volume; and

•visual assessment of the block model with drillhole intersections to ensure that the grades are locally honoured by the model.

The QP did not identify any critical errors in the block model.

11.12Mineral Resource Evaluation

The Mineral Resource estimate is reported in-situ within the Target lease area, as determined through the analysis of the reasonable prospect for economic extraction by underground mining methods. The cut-off grade for the Mineral Resource is determined at 3.05g/t, based on the economic assumptions presented in Table 11-3 at the effective date 30 June 2022.

This cut-off grade represents typical costs for the mining method and preliminary mining and metallurgical recovery assumptions.

Table 11-3: Harmony Economic Assumptions (30 June 2022)


Description	Unit	Value
Gold Price	USD/oz	1,723
Exchange Rate	ZAR:USD	15.35
Gold Price	ZAR/kg	850,191
Plant Recovery Factor	%	94.36
Unit Cost	ZAR/t	2,461
Notes: Unit cos (ZART/t) includes cash-operating cost, royalty and on-going development capital.

The gold price was derived by the Harmony Executive Committee at Head Office. The QP considers the price to be appropriate for Mineral Resource estimation and is slightly higher than that used for estimating Mineral Reserves (USD1,546/oz). The operating costs (both mining and processing) are based on historical performance and budget.

11.13Mineral Resource Classification and Uncertainties

The Target Mineral Resources have been classified into Measured, Indicated and Inferred categories. The classification for Mineral Resource blocks 1, 2, 3, 4, 5, 8 and 12 is based on search radius results and data spacing which is in line with the drilling grid. The classification criteria for blocks 3, 4 and 8 is summarised in Table 11-4 and, in general, the drill hole spacing used is based on the slope of regression (“SR”).

Table 11-4: Target Mineral Resource Classification Criteria

Blocks 1, 2, 3, 4, 5, 8

Block 12

Mineral Resource Category

Drill Grid (m)

Measured

> 0.7

50 x 50

> 0.9

Indicated

> 0.6

150 x 150

> 0.8

Inferred

< 0.6

> 150

< 0.8

Note: SR - slope of regression

The classification criteria for Mineral Resource Block 12 is slightly more conservative due to limited information available. However, geological factors and understanding may affect the boundaries of the halos. The SR for Block 12 classification is presented in Table 11-4.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

No geological discounts are applied to either the geological or estimation models. Geological losses are already built in the wireframes of individual reefs.

11.14Mineral Resource Estimate

The Mineral Resource estimate, as at 30 June 2022, exclusive of the reported Mineral Reserves is presented in Table 11-5. The location and classification of the Mineral Resources is presented in Figure 11-3.

The QP compiling the Mineral Resource estimate is Mr D Fourie, Head of Department Geostatistician, and employee of Harmony.

Table 11-5: Summary of the Target Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	4.374	8.89	38,860
Indicated	3.193	7.76	24,780
Total / Ave. Measured + Indicated	7.567	8.41	63,640
Inferred	4.028	5.96	24,007
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	4.821	0.259	1.249
Indicated	3.520	0.226	0.797
Total / Ave. Measured + Indicated	8.341	0.245	2.046
Inferred	4.440	0.174	0.772
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr D Fourie, who is Head of Department Geostatistician, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off grade of 3.05g/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.

Factors that may affect the Mineral Resource estimates include the following:

•actual RD values different to the single RD of 2.71 used;

•gold price assumptions;

•exchange rate assumptions;

•operating and capital cost assumptions; and

•gold recovery assumptions.

11.15Audits and Reviews

The Mineral Corporation (Pty) Limited carried out a Mineral Resource audit for Target in 2017. It was recommended that the Mineral Resources should be declared including dilution. The remedial action


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

included diluting the reef horizons usually mined conventionally, different from the reefs mined through massive extraction. Dilution was done post estimation and only considered for a CW <140cm.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 11-3: Location and Classification of Targets Mineral Resources and Mineral Reserves


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Dilution for the massive mining method was based on historic massive mining shapes to calculate the average dilution. The historic dilution percentages were applied to the in-situ resources post the Mineral Resource estimation process, and the new diluted grade in g/t was used to determine Mineral Resources in relation the cut-off grades.

The methodology of estimating the Mineral Resources was agreed in conjunction with The Mineral Corporation. The new estimating technique showed a difference of approximately 19.44kg of gold content between the undiluted Mineral Resources available for 2018 versus the diluted Mineral Resources available for the same year.

11.6Mineral Resource Reconciliation

The Measured Mineral Resource gold content estimate for 2022, exclusive of Mineral Reserves, decreased by 8%, from 1.353Moz as at June 2021 to 1.249Moz as at June 2022.

The Indicated Mineral Resource gold content estimate for 2022, exclusive of Mineral Reserves, decreased by 6%, from 0.846Moz as at June 2021 to 0.797Moz as at June 2022.

The Inferred Mineral Resource gold content estimate for 2022 exclusive of Mineral Reserves decreased by 2%, from 0.788Moz as at June 2021 to 0.772Moz as at June 2022.

The changes are mainly due to depletion and the Mineral Resource cut-off increase from 2.98 g/t to 3.05 g/t.

11.7Commentary on Mineral Resource Estimate

All gold grades reported for Target were determined using data from the underground channel sampling and drillholes. Methodologies applied are based on historical operational parameters and infrastructure capacities.

The current Mineral Resource estimate is declared in-situ, including dilution. There is a risk that this may result in an overstatement of the Mineral Resources at cut-off. However, it may be considered as a more realistic expectation which is in line with the grade reflected in the Mineral Reserve estimate.

The RD of most of the EA reefs measured were 3% lower than the expected RD of 2.71. This was, however, not considered material to the tonnage estimates.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

The reported Mineral Reserves are derived through a business planning process and consideration by the Chief Operating Decision-Maker (“CODM”). The business planning process comprises multi-functional reviews inclusive of all mining, support and service departments that are involved in the verification of the inputs and the Modifying Factors. The CODM comprises various executive roles and responsibilities. These executives assess the profitability, the revenue and production costs. The CODM also considers capital expenditure, gold production and tonnes milled when assessing the overall economic sustainability.

12.1Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

The results and assumptions derived from the business planning process extends over an 18-month period. The planning process carefully considers strategic plan directives; analysis of historical performance; realistic productivity, and cost parameters; Modifying Factors; and technical and economic studies that have demonstrated justified extraction, as applicable to specific portions of the Mineral Resources and Mineral Reserves.

All reported Mineral Reserves originate in situ from the underground exploitation of the EA reef package emanating from the Eldorado Formation and the Dreyerskuil Reef. The Mineral Reserves are considered based on several factors, including the:

•latest geological structure and associated Mineral Resource estimation models that constrain the layout for the mine design and LOM planning;

•mining methodologies. At Target Mine the predominant mining method is the massive open stoping which extracts the EA reef packages, while the Dreyerskuil reefs are mined through the Narrow Reef Mining (“NRM”) method. Mineral Reserves are also supplemented by trackless on-reef development sections;

•identified mining areas referred to as Blocks. Respective mining reefs has a series of ascribed mining blocks;

•dilution, which is attributed to the non-selective nature of the open stope mining method. A dilution threshold of >10% is considered. The Dilution Stress-Strain Index (“DSSI”) was developed to determine the dilution that can be expected to lie outside the designed tolerance level. The DDSI method, is associated to an equation, that considers a 13-year historic average of dilution data, rock mass quality, stress-strain state, and the size of stope hanging wall exposed;

•dilution, which is attributed to the NRM is predominantly attributed to the differences in CW and stoping width being mined;

•rock engineering design guidelines, which is guided by the results of the DSSI calculations and informs the mining methodologies. Rock engineering stability pillars are used for mining and geological support; and

•only Measured and Indicated Mineral Resources are used to derive the Mineral Reserves.

An updated DatamineTM Mineral Resource model forms the basis of identifying potential mining areas. The potential mining areas are refined to produce the Mineral Reserves model, using the Mine 2-4D Software script optimiser and the applicable Modifying Factors.

The Mineral Reserves model forms the basis of mine planning, for the different mining methods, including massive open stoping, NRM, and trackless on-reef development. These mineable areas are then planned and scheduled, as per Target Mine design parameters and layout. The location of the EA reef Mineral Reserve, in relation to the Target Mine boundary, is presented in Figure 11-3.

12.2Modifying Factors

The Modifying Factors used to convert the Mineral Resource to a Mineral Reserve for Target are presented in Table 12-1.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

The Modifying Factors are consistent with the modelling, planning and computing estimates used in determining the Mineral Reserves, which are also consistent with historical performance. Plant recovery (Table 12-1) is also consistent with the processing and available recovery as defined in Section 14.

Table 12-1: Target Mineral Reserves Modifying Factors (30 June 2022)


Modifying Factor	Unit	Value
Relative Density	t/m3	2.71
Average Stoping Width	cm	196.00
Mine Call Factor	%	95.00
Plant Recovery Factor	%	94.36
Mineral Reserve Paylimit - NRM	cmg/t	821.00
Mineral Reserve Cut-off - Massive Open Stoping	g/t	3.40
Mineral Reserve Cut-off - Development	g/t	3.40
Dilution - Massive Open Stoping	%	6.00

12.3Mineral Reserve Estimate

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning processes. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral Resource conversion to Mineral Reserves considers Modifying Factors, dilution, ore losses, minimum mining widths, planned mine call and plant recovery factors.

The reported Mineral Reserves, as at 30 June 2022, are declared as delivered to the plant, except for the recovered gold content. This gold content is calculated after factoring in the plant recovery as a Modifying Factor. The Mineral Reserve estimate for Target is summarised in Table 12-2. The location and classification of Mineral Reserve is presented in Figure 11-3.

The QP compiling the Mineral Reserve estimate is Mr S Motlatla, Ore Reserve Manager at Target, and employee of Harmony.

Table 12-2: Summary of Target Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	2.722	4.32	11,744
Probable	1.726	4.11	7,096
Total (Proved + Probable)	4.447	4.24	18,840
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	3.000	0.126	0.378
Probable	1.902	0.120	0.228
Total (Proved + Probable)	4.902	0.124	0.606
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr S Motlatla, who is the Target Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. The NRM Mineral Reserves are reported using a cut-off value of 821cmg/t determined using a gold price of USD1,546/oz. The massive open stoping Mineral Reserves are reported using a cut-off grade of 3.40g/t determined using a gold price of USD1,546/oz.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

12.4Mineral Reserve Reconciliation

The declared Mineral Reserve decreased from 0.647Moz as at 30 June 2021 to 0.606Moz as at 30 June 2022

12.5Commentary on Mineral Reserve Estimate

The Mineral Reserve is estimated at 4.447Mt of milled ore containing 0.606Moz of gold as at 30 June 2022. The declared Mineral Reserves takes into consideration all Modifying Factors. The Mineral Reserves are depleted to generate the cash flows presented in Section 19 and are deemed by the relevant QP's to be appropriate and, both technically and economically achievable.

Any by-products that are recovered as part of the refining process, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimate. There are no obvious material risks that could have significant effect on the Mineral Reserves.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

13Mining Method

Section 229.601(b)(96) (13) (i-v)

The Target Mine deposit is made up of mineralised multiple reef bands overlying one another (Figure 6-3). The EA reef is composited into thick packages, whilst the Dreyerskuil reefs are separated into thinner discrete horizons. These differences have led to the application of multiple mining methods.

13.1Mining Operations

Target Mine is essentially a trackless mining operation with a combination of highly mechanised mining, scattered mining and labour-intensive narrow reef stoping, the latter being more typical of South African gold mines’ conventional stoping.

The primary ore extraction method adopted at Target Mine is massive mining of the thick mining horizons (EA1, EA3, EA7 and EA8) through a combination of scattered open stoping supplemented with the use of a 6%-cement backfill, and sub-level open stoping which does not make use of backfilling.

The balance of the ore is mined using an NRM method on the thinner Dreyerskuil reefs, which does not make use of backfilling either.

Massive open stoping accounts for ±70% of the ore production with ±20% coming from conventional narrow reef stoping. The ±10% balance of production comes from trackless on-reef development sections.

13.1.1Scattered Massive Open Stoping

Massive open stoping is the preferred method for exploiting selected reef packages within the deposit. These open stopes are large, varying from 10m to 45m in width (span), 10m to 35m in height, and 10m to 100m in length. Ideally, massive open stopes can only take place in a de-stressed environment of no more than 50 MPa for rock with a Uniaxial Compressive Stress (“UCS”) of 2,00MPa, which is achieved by de-stressing the area above the planned massive stopes by NRM unless stipulated otherwise by the Rock Engineering Department.

To establish an open stope, a reef drive is developed from the access drive on strike at the lowest point where the stope will be situated. This reef drive is developed to the mining limit of that specific open stope (Figure 13-1). At the end of the open stope, slot cubbies are developed, cutting across the dip of the strata. In one of the cubbies, a drop raise is developed to hole into the top drive for ventilation and to create a “free-face” for blasting of the initial slot. Once the drop raise has been developed the slot is drilled across the width of the stope and the blast rings for the open stope are drilled in a fan pattern from the reef drive to the limit of the mining cut (Figure 13-2).

When the drilling is completed, the slot is blasted. This is followed by successive drill rings which are blasted in retreat towards the haulage, until the full width of the deposit has been removed. A maximum of four rings are blasted at any one time. Cleaning of the ore takes place after the rings are blasted utilizing remote control loading, haul and dump (“LHD”) mechanized equipment.

Once mined out, an open stope is backfilled with cement. This is done in 2m flights to prevent excess pressure on the bulkhead plugging the stope. The process generally takes 4-5 months to complete. Alternate stopes are mined out thus leaving the adjacent stopes intact. Once the cemented fill has cured (~28 days), the alternate stopes are mined. The last open stopes mined out are also backfilled to ensure there are no unfilled cavities remain which may destabilise the general mining area. The overall sequence is to mine the lower blocks first and work upwards to the higher blocks above the backfilled stopes.

13.1.2Sub-level Open Stoping – Block 12

The initial massive mining design for Block 12 (below 287 level) was done in 2017 utilizing the scattered open stoping method. This was based on the expected development and available geological data at that time. This required a total of c.143,000m2 of NRM de-stressing to implement the plan to mine the Block 12.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 13-1: Schematic Plan View - Massive Open Stope Design

Figure 13-2: Schematic Section View - Massive Open Stope Design


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

Prior to this de-stress mining, access development for Block 12 will have to be developed into virgin stress conditions, and in some areas, through high-stress abutments. When de-stressed, significant stress changes can be expected at these excavations and the installation of secondary support consisting of weld mesh is paramount to the stability of these access drives.

After further analysis and considering improved geological and geotechnical information now available as compared to 2017, an alternative mining method considered and subsequently adopted for Block 12 is a modified top-down sub-level cave mining method. This does away with the NRM de-stressing and the use of backfill. With this method the top massive stopes will create a de-stressed window which retreats ahead of the lower massive stopes below. A schematic representation of this method is presented in Figure 13-3 showing a similar development plan and use of drill rings from the reef drives as in the scattered open stopes. It should be noted that the drill rings only “fan out” to an angle of 50° to keep the drill holes roughly aligned with the direction of the primary in-situ stresses, and to create the drawbell loading points to assist with mucking the ore.

As the mining retreats and the open stope grows in extent stress-induced failure and caving of the hanging wall and sidewalls will ensue resulting in increasing dilution. The level of dilution has been estimated by making use of the DSSI which was developed from back analysis done on Target Mine.

Although the three-dimensional stress-strain environment plays a significant role in the stability of the massive open stopes in Block 12, the rock mass properties will also have a significant impact. Evaluations for Block 12 indicate the expected stand-up time and dilution can be determined for the hanging wall and sidewalls and the analysis delivered the results tabulated in Table 13-1.

These results indicate as the open stopes stand for extended periods, the stopes will start to cave, and the amount of dilution is expected to increase to an estimated 20% using the DSSI, during the life of the sub-level caving stopes. This is significantly higher than the estimated 6% for the scattered massive open stopes.

Table 13-1: Results of Sub-Level Caving Analysis


Component	Units	Measurement
Average induced stress at the centre line of open stope hanging wall	MPa	12.7
Estimated open stope stand-up time	months	1-2
Open stope volume	m3	851,892
Dilution volume from DSSI	m3	171,674
Calculated dilution from the modified stability number (N)	%	22
Calculated dilution from the hydraulic radius (HR)	%	98
Calculated dilution from DSSI	%	20

13.1.3Narrow Reef Conventional Mining (“NRM”)

NRM stoping for de-stressing of the massive open stopes is necessary unless otherwise stipulated by the Rock Engineering Department. The need for de-stressing is the primary consideration when planning the NRM stopes with the consequence that some areas are mined which fall below the economic cut-off. These stopes are not cleaned completely of broken ore to minimise dilution whilst those that are above the cut-off are cleaned and swept to minimise gold losses.

The NRM stopes are typical of labour-intensive deep level South African gold mines, where panels are laid out either side of central raises and mined away from the raises with the broken ore being scrapped using electrically powered winches to tips that gravity feed mucking bays where the ore is loaded into load, haul dumpers (“LHDs”) (Figure 13-4 and Figure 13-5). The ore is then transported to the main tips on 282 level (Figure 13-6).

Drilling is done with compressed air driven hand-held rock drills and the support regime consists of timber packs, in-stope bolting and wooden elongates. Characteristically, there is a low level of mechanisation in the NRM areas of the mine compared with the open stoping areas.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 13-3: Schematic Representation of the Modified Top-Down Sub-level Caving Mining Method

Figure 13-4: Section of a Typical Footwall Crosscut at Target


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 13-5: Plan Showing the NPM Sequence at Target


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 13‑6: Schematic Mine Design Layout for Target Mine

13.2Mine Design

Target Mine is a deep-level underground mine that was developed as an extension to the previously operational Loraine, maximising the use of Loraine’s serviceable infrastructure. Loraine is connected to the Target mining area through a sub-vertical shaft and a system of decline shafts, ventilation connections and ore passes (Figure 13-6).

The decline systems extend from the main vertical shaft approximately 6km to access the mining areas, some 2300m below surface. There are three vertical shafts (previous Loraine shafts) that support the mining in the Target mining block which has no direct connection to surface. The details of the Target shaft systems are discussed in Section 15.

Target Mine is essentially a trackless mining operation where conventional mining and sub-level open stope methods are practiced to mine the deposit. In the Target area the mining production levels are connected by a series of ramps. However, Loraine Mine was historically designed with all the service and transport systems based on rail-bound equipment (“RBE”).

Therefore, there is an interface between the old Loraine Mine and the new Target Mine where equipment and material are re-handled from the RBE system to the trackless system. This occurs on 67 level which is referred to as the interchange-level which connects the sub-vertical shaft to the Target mining area. Historical levels of the mine are numbered according to old imperial feet elevations below surface (i.e., 30 level to 67 level) whereas the newer Target nomenclature is referenced in metres (208 level to 291 level).

The working shift is conveyed down Target 1 shaft to 50 level from where they travel on the dual-purpose man-riding conveyor belt all the way down to 282 level, c.6.5 km in length. The conveyor is split into six separate flights with stations at each section for the workers to onboard or disembark from the conveyor. From 282 level all workers travel on foot to their respective working areas. They reverse this trip at the end of the shift to return to surface. There is a fleet of light service vehicles to support engineering, survey and other service departments.

Material and equipment on RBE flatbeds are conveyed down Target 1 shaft to 52 level and transported across to 1C shaft where it is conveyed down to the interchange-level (67 level) for re-handling from RBE flatbeds to trackless flatbeds for transport down to the deeper levels within the Target mining block.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

The dual-purpose conveyor belt system which runs between 282 level and 50 level is also used for the conveying of all rock from the Target mining area to the loading station at the bottom of the main vertical shaft.

Water reticulation around the mine has been designed to maximise water re-use minimise the amount of water pumped to surface. Pumping operations are done from various levels into skidams (small metal dams) and eventually into main settling dams on 266 level from where it is pumped to the hot water dam on 67 level. The hot water is fed to a refrigeration plant on 67 level for chilling and in turn into a cold-water dam from where it supplies chilled water to banks of bulk air coolers on 67, 276, 284 and 289 levels to provide cool air for the Target mining block. This is supplemented by a bulk air cooler on surface at 1 shaft.

Excess water from the 266 level settlers is transferred to a pump station on 53 level at the main vertical shaft and then to surface via a mid-shaft pump station on 30 level. On surface this water is pumped to a 4.5 mega litre dam where it is treated for re-use at the gold plant. The backfill plant is located near the mineral processing plant.

13.3Mine Plan Development and Life of Mine Schedule

The LOM planning process is based on the resources available at a required mining value where cut-off values for massive open stopes and NRM are applied. Safety and practicality of the plan form the base for optimisation and execution of this plan.

Using an updated geological model, the planning department will run the model through Mine Reserve Optimiser (“MRO”) script applying prescribed reserve cut-offs of 3,49g/t for massive open stopes and 884cmg/t for narrow reefs.

The model is used as a base for open stope, narrow reef and development planning and design. The output product of the process will be a geological model showing only reserves above the 3,49g/t cut-off for open stopes and 884cmg/t for narrow reefs. For NRM CW and grade distribution along the reef profile are fundamental in optimisation, and a maximum stoping width of 230cm is applied in areas where CW is thick.

The LOM planning design process is undertaken using Mine2-4D software. Once the designs are completed and ratified by relevant departments (Rock Engineering, Mining, Ventilation, and Geology) scheduling and reporting processes will be completed using the Enhanced Production Scheduling (“EPS”) programme. Cut-off grades are derived by taking into consideration the available resource for the selected project areas, the operating cost as captured for the business plan, gold price and the required margin.

The 4.45Mt of Mineral Reserves are included in the LOM plan and are fully accessible through Target’s existing infrastructure. The mining rates used in determining the LOM plan are based on the current and expected operational performance, notwithstanding any unforeseen underground mining constraints. The remaining LOM for the operations is planned for seven years, with a planned mining rate averaging at approximately 696ktpa (milled tons) over the LOM period.

13.4Geotechnical and Hydrological Considerations

Apart from the geotechnical risks that can be caused by the existence of geological structures and the presence of water and gas, there is also a seismicity risk at Target due to the depth of the current mining operations. Target maintains a working geotechnical model, with improved data quality post 2017.

This model is used to manage and control seismicity risk, consisting of primary data sourced from the Cavity Monitoring System (“CMS”), reinforced with data inputs from geohydrological and other seismic monitoring processes. The geotechnical model for Target takes the latest geological structural model and the selected mining method into account to design a suitable pillar layout.

The purpose of the pillar designs, regardless of the pillar type, is to customize them to the prevailing mining conditions, with the objective of making the mine design safe, practical, easy to implement, and profitable. Rock Engineers assess the hydraulic radius of the proposed mine designs to determine potential caving and pillar failures to make recommendations on mining sequence and stope dimensions.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

The CMS also provides data from fresh blasts which allows engineers to check for adherence to design, in terms of under break and over break. The ring blast design versus. actual post-blast representations are shown in Figure 13-7 and Figure 13-8, respectively.

13.5Dilution and Grade Control

Based on an 18-month mining history, a dilution factor of 6% is applied in planning of the massive open stopes to provide for dilution caused by over-break and under break during blasting of the drill rings. Alternatively, Rock Engineering has developed a method using 13 years of data and can predict the percentage dilution in open stoping considering rock mass quality, stress-strain state, and the extent of stope hanging wall exposed (hydraulic radius). The DSSI was developed which allows the user to calculate, with certainty, the stability of the open stope and determine if major dilution (>10%) can be expected.

Dilution in massive open stope mining is factored in early stages of the mining value chain with a thoughtful and realistic planning process carried out on a reliable geological model and the input of Rock Engineering. Rock Engineering will receive planning designs and assess hydraulic radius of the designs to determine potential caving and pillar failures to make recommendations on mining sequence and stope dimensions. After a ring has been blasted and loaded CMS (“Cavity Monitoring System”) will be done to check for under break and over break to ascertain the extent of the dilution (Figure 13-8).

For NRM, dilution controls are implemented through ongoing geology department observations during visits to the working stopes. This is followed by compilation of geology mapping, grade-loss and sampling reports which are circulated to Production Managers within 24 hours after the visit. The reports will highlight where footwall and hanging wall waste is exposed, off-reef mining if any, faulting, and sweeping compliance (where sweepings are required).


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 13-7: Schematic Cross Section of a Ring Blast Design

Figure 13-8: Cross Section Representation of the CMS Results

13.6LOM Schedule

Mining production rates are based on an 18-month production history and expected underground conditions and identified constraints, whilst development advance rates are maintained to meet the mining production plan. Primary development ends are advanced using trackless mechanised mining while secondary


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

development to access and open up NRM panels on the reef plane is done with conventional non-mechanised methods.

Narrow reef stoping for de-stressing of the massive stopes is necessary regardless of payability unless stipulated otherwise by Rock Engineering. The extraction rate in NRM stoping is higher in stopes where the grades are above the cut-off grades and lower where the grades are below the cut-off because the stopes are not cleared fully of blasted rock and sweepings because of the low grade.

The mining rates and sources of ore show the significant contribution from the sub-level open stopes once they begin with a corresponding reduction from the scattered open stopes (Figure 13-9). Development tonnages from both trackless development and NRM development reduce over time, as the development to open-up Block 12 reached completion. The gold production for the LOM is presented in Figure 13-10.

The extent of the Target LOM plan for the massives, which represents 78% of the LOM tonnage, is presented in Figure 13-11.

13.7Ore Transport

All mined rock is deemed ore and hence there is no separate ore and waste rock handling systems. All ore from the stoping and development areas, both above and below the 278 level reports to the east or west crushers passes on that level (Figure 13-6).

Ore from below 278 level is transported up to that level by dump truck. Ore is fed through jaw crushers and is loaded onto the same 6.5km man-riding conveyor belt system which transports the ore from 282 all the way up to 50 level at the main Target 1 shaft. The conveyor belt can handle 88ktpm (c.2,900tpd) running at a speed of 2.5m/sec and considering stoppage for 4 hours a day for maintenance and time for the bulk movement of the workers back up at the end of the shift.

The ore reporting to 50 level is fed into the pass to the loading boxes and flasks which load the skips on 53 level. The hoisting capacity of the main vertical shaft is approximately 90ktpm using light weight 8.5t aluminium skips which have a shorter life than the normal mild steel skips but provide a higher load capacity. Ore tipped into the headgear bins on surface which is conveyed to the gold plant ore silo.

13.8Mining Equipment and Machinery

Most of the mining operations in the Target mining block are based on trackless development and mining. The equipment fleet to conduct mine development activities, mining operations and the vehicles for support services are listed in Table 13-2.

This equipment is typical for this type of mining with the LHD/dump truck combination for rock handling, electro-hydraulic rigs for development end drilling as well as drilling of the drill rings for the open stopes, and a roof bolter for support installation. The balance of the equipment is to assist support services and for the transport of material and equipment.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa


Figure 13-9: Graph of LOM for Target – Tonnes (by Mining Method) and Grade

Figure 13-10: Graph of LOM for Target – Gold Produced


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Figure 13-11: Plan Showing Target Massives LOM


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Table 13-2: Trackless Mining and Support Services Equipment


Manufacturer	Vehicle Type	Model	Quantity
Sandvik	LHD	LH 514	7
Sandvik	LHD	L 410	2
Epiroc	LHD	2D	1
Epiroc	LHD	2G	1
Epiroc	LHD	ST7	1
Epiroc	Dump Truck	MT 436 B	10
Fermel	Dump Truck	Liberator	1
Sandvik	Solo`s	DL 421 - 15 C	2
Sandvik	Solo`s	DL 420 - 10 C	1
Sandvik	Drill Rigs	DD420 - 60	4
Sandvik	Drill Rigs	DD421-60 C	2
Sandvik	Drill Rigs	DD321	1
Epiroc	Drill Rigs	282 Boomer	1
Sandvik	Roof Bolter	DS311	4
CAT	Roadway Grader	120 - G	2
Toyota	LDV	Land Cruiser 4.2L	29
Fermel	Cement Mixer	Agi Car	3
Fermel	Utility Vehicle	Scissor Lift / Flat bed	26
Mecalac	Forklift	AS90	3
Bobcat	Skid Loader	S220	4

13.9Mining Personnel

The underground work force is essentially split into two categories that are either involved in production activities or they provide supporting services required underground. Production activities are directly related to the mining of ore and non-production personnel provide supporting services such as safety, engineering functions, maintenance, decline conveyor management and underground store controls (Table 13-3). In the trackless mechanised working areas and massive open stoping a large portion of the personnel are machine operators (LHD’s, drill rigs, dump trucks etc.). In the NRM stoping the lack of mechanisation gives rise to a different profile of mining crews with most of the personnel being supervisors, rock drill operators, winch operators and general stope team members who install support, conduct material handling and cleaning of the broken ore.


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Table 13-3: Mining Personnel


Labour Requirement			No. of Employees
Production
Underground			499
Contractors			70
Sub Total Production Employees			569
Underground Services
Safety			20
Stores			20
Mineral Reserves			26
Vehicle Maintenance			130
Production Engineering			97
Engineering Decline			159
Engineering Services			335
Contractors			201
Total Services Employees			988
Grand Total Mining Employees			1,557

13.10Commentary on Mining Method

The different types of mining methods employed at Target are appropriate for the characteristics of the ore body and the deep level mining conditions.

Although the NRM mining is sometimes carried out in areas which are below the cut-off grade this is necessary to de-stress the underlying high grade massive stopes for open stoping to be conducted.

The use of backfill in the massive open stopes is used to ensure the surrounding areas are stabilised to allow extraction to be maximised. The sub-level caving method has been designed to maximise extraction of Block 12’s mineable ore although the resulting waste dilution is considerably higher than for the scattered massive open stopes. However, this method provides the benefits of doing away with potential uneconomic NRM mining and the need for the use of expensive cemented backfilling. This has been considered in the overall design and the resulting economic outcome.


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14Processing and Recovery Methods

Section 229.601(b)(96) (14) (i-iv)

The Target Plant was designed and commissioned in November 2001. The plant was designed to treat a total tonnage of 105ktpm with a potential to expand to 160ktpm for future demand. Currently the plant treats ore from Target, the Joel Mine plant clean-up and Target 2 waste dump.

14.1Mineral Processing Description

The mineral processing flow sheet is presented in Figure 14-1. Shaft reef tons and waste rock dump material are both conveyed on the belt from their respective reception areas into the feed bin whereby they are first blended before moving to the ROM and semi autogenous grinding (“SAG”) mills. By continuously triggering the silo overflow, the plant has ensured that in the case where the plant feed conveyor belt fails the flow of ore to the plant can be maintained.

The feed ore is ground down to a smaller particle size distribution by a SAG or ROM mill. The product from the mills is pumped to the cyclone for the classification of fine from course particles. The course particles from the cyclone underflow gravitate back to the mills for further comminution.

The fine particles report to cyclone overflow and then onto the gravity screen with a product estimated at 75% passing 75μm. This stream is then pumped out to the thickeners for dewatering prior to leaching. The underflow of the thickener, which is rich in gold reports to the pre-aeration tank for pre-conditioning prior to the addition of cyanide.

Once the gold is dissolved into the cyanide solution it has a higher ability to adsorb (attach) onto activated carbon through the application Carbon-In-Pulp (“CIP”) technology. There are eight stages in the CIP process with an average of 96% of gold adsorbed onto activated carbon. Once the carbon loading in the head tank reaches the required gold loading, the stream is pumped to the load make-up screen for the elution process.

Target plant employs the Zadra elution process for gold recovery where the loaded carbon is treated with a hot caustic and cyanide solution. The pregnant solution is pumped into the electro-winning circuit, where the gold will “de-absorb” from the activated carbon and attach onto stainless-steel wool.

Activated carbon can be regenerated for use again and as such, once the gold has been removed from the activated carbon, the eluted carbon passes through the acid column to be treated with hydrochloric acid for the removal of inorganic material.

Acid-treated carbon is rinsed with high-pH water to neutralise the acid and transferred to the kiln for carbon regeneration. The regeneration process takes place at temperatures above 700°C in the absence of air to drive off the organic material.

The electro-winning cathodes are washed through the gold table and filtered through the press to retain the gold sludge, which is dried and smelted in the induction furnace, and then dispatched to Rand Refinery for refining. Tailings from the adsorption circuit is screened to remove fine carbon and then pumped to the tailings dam for storage.

14.2Plant Throughput, Design, Equipment Characteristics and Specifications

The plant was designed to treat a total tonnage of 105ktpm with a potential to expand to 160ktpm for future demand. Currently the plant treats ore from Target, Joel Plant clean-up and Target 2 waste dump. The design parameters and equipment specifications are presented in Table 14-1.


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Figure 14‑1: Schematic Flow Diagram for Target Gold Plant


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Table 14-1: Design Parameters and Equipment Specifications


Process	Parameter	Unit	Value
Overall Plant	Recovery	%	96
	Availability	%	94
Milling	Steel Ball Size for SAG Mill	mm	125
	Throughput SAG Mill	t/hr	70
	Steel Ball Size for ROM Mill	mm	100
	Throughput ROM Mill	t/hr	80
Densification	Desired pH	pH	10.5 – 11.0
	Desired Density	g/cm3	1.5
Leaching	Residence Time	hr	30
Acid wash and elution	Elution Temperature	°C	120
Tailings Dam	Solid Content	g/t	0.17
	Solution	g/t	0.01

14.3Energy, Water, Process Material and Personnel Requirements

14.3.1 Energy

Current average energy consumption is 56.44kWhrs per tonne treated.

14.3.2 Water

Current water consumption is 0.171kL of portable water per tonne treaded and 2.00kL of raw water per tonne treated.

14.3.3 Process Material

The reagents and their consumption rates per ton of rock milled, are presented in Table 14-2.

Table 14-2: Reagent Consumption


Reagent	Unit	Value
Lime use	g/t	1,200
Flocculant	g/t	35
NaCN addition	g/t	350

14.3.4 Personnel

The staff compliment is 108. The plant operates on an efficiency of 700t per man per month.

14.4Commentary on the Processing and Recovery Methods

The metallurgical process is a well-tested technology which has been in operation at the mine since November 2001.

The plant was designed to obtain a recovery of 96% from both the gravity circuit treatment and leach treatment circuit and is designed to operate at 94% plant availability.

Recoveries used in the business plan were based on historic performance. The methodology applied considered the historical metallurgical recovery (18-month period) for the relevant ore source. The actual monthly head grades were reviewed and the relationship between the head grade and recovery were used as base for the Business Plan (“BP”) 2022/23 metallurgical recoveries, taking into consideration the relevant forecast head grades (Figure 14-2).


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Figure 14‑2: Graph of Historical Gold Recovery at Target Gold Plant


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15Infrastructure

Section 229.601(b)(96) (15)

Target has adequate access to the infrastructure required to meet the planned LOM production schedules.

15.1Surface Infrastructure

The surface infrastructure associated with Target is presented in Figure 15-1, whilst Google Earth images are presented in Figure 15-2 and Figure 15-3. The Target mining area is well developed in terms of access and mining-related infrastructure. Access to the Target shafts (1, 2, 3 and 5) is via a well-maintained paved road. Adequately maintained roads is used to access other areas of the mine such as the explosives magazines, sewage works, slimes dam and the evaporation ponds. The area also has access to rail links and an airfield within proximity.

The infrastructural layout includes a safety COVID-19 control site; shaft headgear; logistical support for core handling, sampling, and transporting; emergency power generators; a mineral processing plant; training and medical centre; roads; water and power supply; stores and workshop support; electrical supply; offices; housing and security (Figure 15-1, Figure 15-2, Figure 15-3).

15.1.1Ore and Waste Rock Storage Facilities

The ore is hoisted from underground via Target 1 Shaft to the adjacent processing plant (Figure 15-2, Figure 15-3). Waste mining at Target is minimal.

The backfill cement plant that produces the cemented fill required to backfill the stopes is located on surface and is part of the main processing plant. The capacity of the plant is 1,000m3 per day and the fill is transported to the working areas through a system of pipe ranges down the shafts and declines.

Target shares its plant with a Harmony waste rock dump that is monitored and managed by Surface Sources. The plant’s design capacity exceeds the maximum planned production from these sources.

15.1.2Tailings Storage Facilities

The location of the tailings storage facility (“TSF”) is shown in Figure 15-1 and Figure 15-2. The initial TSF operations began in 1955. The TSF is currently active and is owned and operated by Target.

The tailings from the adsorption circuit are screened to remove fine carbon and then pumped to the TSF. Slime solids are designed not to exceed 0.17g/t and the solution is designed not to surpass 0.01g/t. The TSF site has full engineering records including design, construction, operation, and maintenance plans. The design height is 39m on Dam 1 and 37m on Dam 2. The designed volume is 4.2Mm3 and has a planned utilization ending 2028. The current design capacity of the existing TSF site is sufficient to support the current LOM plan and production rate.

15.1.3Power and Electrical

Power is supplied by the state-owned electricity supplier, an Eskom power station located northeast of the mine. Power onsite is distributed from the Grootkop electrical sub-stations facility (Figure 15-3). Power lines traverse the mine property to connect the shafts, reduction works, hostel complexes and the Allanridge township. In addition, Target has an onsite emergency power generator system, sufficient to support the critical mining and mineral processing activities in case of emergencies.

The operation has capacity to supply of 37MW, however currently only 25MW is utilised. No risks are identified related to continued power supply.

15.1.4 Water Usage

The primary source of bulk water supply is from Swartpan Dam (Figure 15-1 and Figure 15-2). The processing plant, refrigeration plant and underground mining activities are the three largest water consumers.

The shaft utilizes 54,631kL of water per month as make up for underground water, including drinking water, in a closed circuit. Target plant utilizes 126,000kL of raw water per month, and during the rainy season water


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is sourced from Two Million Dam (9,092kL) and Freddies 9 Dam (4,546kL). During winter, additional water is sourced from Million Gallon Dam (4,546kL) and the shaft.

Target aims to recycle as much water as possible through a series of holding dams and evaporation ponds. Details of these dams, evaporations ponds and water reticulation is discussed in Section 1. The storage of make-up water is contained in Million Gallon Dam, the Two Million Dam and the Freddies 9 Dam. The storage facilities have sufficient water to supply water to the operation for up to 24 hours if the bulk water supply were interrupted.

15.1.5 Logistics and Supply

The procurement of supplies and equipment are handled centrally, via Harmony, and then delivered to Target. The Target Mine is accessed via dedicated, security controlled main entrances. The mine operates its own rail system which connects the shafts, reduction works, shaft stores, explosives magazine and the mine workshops. This system is used to transport material and consumables between the surface stores to the respective locations, as required, and is also a connected to the regional railway system.

15.2Underground Infrastructure

Target operations include a single underground mine that was constructed as an extension to Loraine and uses the Target 1 Shaft as access. The present Target Mine is essentially a trackless scattered open stope mining operation where conventional mining methods are also practiced.

Target 1 is the main vertical shaft, used for men and material transport as well as hoisting rock to surface to 203 level (Figure 3-2, Figure 13-6 and Figure 15-1). It has decline systems off the sub-vertical shaft extending 6km to access the mining areas, approximately 2,300m below surface. The single decline, equipped with a conveyor belt, connects 203 level to 255 level. The decline splits at 255 level into a conveyor decline and a vehicle decline descending to the extent of development, currently at 291 level.

Target 2 is on care and maintenance and Target 3 which is currently on care and maintenance serves as a second escape way for Target 1.

Target 1 and 2 also act as downcast airways into the mine whilst the Ventilation Shaft also known as Target 5, (Figure 3-2 and Figure 13-6) is a dedicated upcast ventilation for all underground workings. Target 1C is a sub-vertical shaft that is used for services and material transport from 52 level down to 67 level (Figure 13-6).

15.3Commentary on Infrastructure

The operational infrastructure including road, rail, offices, security services, water and power supply is adequate. Operations are powered by electricity from Eskom.

Overall, Target's surface and underground infrastructure as well as the power and water services are designed to fully meet the planned LOM plan and service capacity requirements.


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Figure 15-1: Infrastructure Plan for Target


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Figure 15-2: Target Location of Surface Infrastructure
Source: Google Earth Imagery Date July 2021


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Figure 15‑3: Target Mine Detailed Surface Layout


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16Market Studies

Section 229.601(b)(96) (16) (i-ii)

Gold is traded in a variety of markets/exchanges both in physical form through Over the Counter (“OTC”) markets, bullion banks and metal exchanges etc., and through passive investments such as exchange traded funds (“ETF’s”), which are based on gold prices and units representing physical gold which may be in paper or dematerialised form. Demand is driven by the jewellery market, bar and coin, use in technology, ETF’s and other financial products, and by central banks. An overview of the gold market is given in the following sections based mainly on data from the World Gold Council and GoldHub websites.

16.1Market Overview

Unlike almost all mineral commodities, the gold market does not respond the same way to typical supply and demand dynamics which are founded on availability and consumption, but rather on global economic affairs, particular those of the major nations, industrial powerhouses and economic regions, such as the Eurozone. The gold market is affected by government and central bank policies, changes in interest rates, inflationary or deflationary environments and events such as stocking and de-stocking of central reserves. It is also largely affected by global events such as financial crises, geopolitical trade tensions and other geopolitical risks. Price performance is linked to global uncertainty prompted by the prolonged Russia-Ukraine war (GoldHub, Accessed July 2022). It is an asset that can preserve wealth and deliver price outperformance in an uncorrelated way and that makes it extremely attractive.

16.2Global Production and Supply

Gold production and supply is sourced from existing mining operations, new mines and recycling.

16.2.1New Mine Production

Gold mining is a global business with operations on every continent, except Antarctica, and gold is extracted from mines of widely varying types and scale. China was the largest producer in the world in 2021 and accounted for around 9-12% of total global production (Gold.org, Accessed 2022; USGS Mineral Commodity Summaries, 2022). Overall, global mine production was 3,000t in 2021, slightly lower than production levels in 2020 (3,030t), and the second annual decline in production after 2016. Recent decline has been largely attributable to COVID-19 interruptions. In 2021, the major producing gold countries in the world were China (370t), Australia (330t), Russian Federation (300t), USA (180t), Canada (170t), Ghana (130t), Mexico (100t), and Uzbekistan (100t). Indonesia, Peru and Sudan produced 90t each, followed by Brazil (80t). South Africa produced 100t in the same year (USGS Mineral Commodity Summaries, 2022).

16.2.2Recycling

Annual global supply of recycled gold was 1,143.5t in 2021, a decline from the 2020 figure of 1,291.3t. Recycling supply responds to the gold price and its rate of change but experienced a modest increase during the year even as prices increased to all-time highs. India and China play large roles in the recycling market. In the first quarter of 2022, when gold demand was 34% higher than the previous year, the supply of recycled gold increased to 310t (a 15% increase y-o-y), and highest amount of activity for six years (Gold Demand Trends Q1 2022, Gold.org, April 2022).

16.3Global Consumption and Demand

Gold consumer demand is expected to be supported by gradual economic recovery. Gold has performed well as a consequence of a high-risk environment, low interest rates and a high price. While continued improvement in markets is expected post-COVID in 2022, economic slowdown among other factors is anticipated to place some downward pressure on consumer demand in China and India.

16.3.1 Jewellery

Global annual jewellery demand increased from 1,329.7t in 2020 to 2,229.4t in 2021, amid a recovery of markets from the COVID-19 pandemic. As with recycling, the two largest markets, India and China, were major contributors to the decline in 2020, and markets were expected to improve with economic recovery in these geographies. In Q1 2022, recovery of demand was soft, down 7% y-o-y, after new lockdowns to contain COVID-19 (Gold Demand Trends Q1 2022, Gold.org, April 2022).


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16.3.2 Investment

The COVID-19 pandemic, high inflation and recent period of heightened risk and geopolitical uncertainty, has driven the value of gold as a ‘safe haven’ investment (www.gold.org/goldhub). Bar and coin investment was 20% lower in Q1 2022, but 11% higher than a five-year quarterly average (Gold Demand Trends Q1 2022, Gold.org, April 2022).

A total annual gold investment of 1,006.42t was noted by the World Gold Council for 2021, a decline of 43% from the 2020 figure. Weaker investor interest in 2021 was seen with a net outflow of gold ETFs (-173.6t). Gold demand has since increased in Q12022 (34% higher than Q1 2021), driven by strong ETF inflows, and safe-haven demand (Gold Demand Trends Q1, 2022, Gold.org, April 2022).

Investment drivers also include low interest rates, a weakened US Dollar, and an economic slowdown. A consequentially favourable price means even greater investment, but momentum has slowed with gold reaching a USD 1,800/oz marker (Recent moves in gold, Gold.org, July 2022).

16.3.3 Currency

Gold holds an inverse relationship with the USD and is usually traded relative to its USD price. During the current period of uncertainty, and the rising influence of Chinese currency, central bank asset managers may likely increase their interest in gold as a result. This has been a prominent trend since the economic downturn in 2008.

Future performance of the gold market is expected to be supported by investment demand (a need for effective hedges and a low-rate environment) and will be driven by the level of risk observed in the recovery of the global economy from the effects of COVID-19, which may offset any lag in recovery of consumer demand.

16.4Gold Price

16.4.1Historical Gold Price

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

16.4.2Forecast Gold Price

The minimum and maximum consensus gold price range for the year 2021 Q4 to year 2025 is presented in Figure 16-2. The long-term gold prices are considered from year 2025 onwards. Forecasts as advised from various financial institutions show that gold is expected to trade in a range of USD1,652/oz - USD1,728/oz, for the period 2022 to 2025 with a long-term outlook of USD1,521/oz.

The gold price forecast of USD1,546/oz is conservative if corroborated against a long-term broker consensus gold price outlook (Figure 16-2).

16.4.3Harmony Group Gold Hedging Policy

Harmony has a hedging policy which is managed and executed at Group treasury level on-behalf of its operating entities. The key features of the hedging programme are as follows:

•the policy provides for hedging (or forward selling) up to a maximum of 20% of expected gold production for a rolling 24-month period;

•the policy has no minimum quantity that should be hedged, and if an attractive margin above cost cannot be achieved (i.e., in a low gold price environment) then no hedges are entered into;

•Harmony enters into ZAR-denominated gold hedges for its South African operations (for the non-South African assets it enters into USD-denominated hedges);


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Figure 16-1: Graph of Annual Gold Price History – ZAR/kg
Source: https://www.gold.org/goldhub/data/gold-prices
Figure 16-2: Graph of Consensus View of Forecast Gold Price

•Target does not enter into hedges in its own name but delivers bullion to Rand Refinery for refining on behalf of Harmony. Rand Refinery is one of the world’s largest single-site precious metals refining and smelting complex in the world. Rand Refinery refine all of Harmony’s gold to at least 99.5% purity, and acting as agent, sells the gold on the daily spot London fixing price and make payment to the Harmony two days later;


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•gains and losses realised from the hedging program are accounted for at Group level and the financial benefit (or downside) is distributed amongst the operations proportional to their levels of gold sales; and

•Target does its mine planning and financial forecasts based on the estimated future gold price provided by the Group treasury, but its year-end actual financial results reflect the received gold price inclusive of the benefit of the hedging programme. Therefore, in theory, Target receives a hedged gold price for a maximum of 20% of its gold sales with the balance attracting the spot price.

16.5Commentary on Market Studies

The factors which affect the global gold market are well-documented as are the elements which influence the daily gold price. The gold price recorded all-time highs during both 2020 and 2022, and although it has since moderated and retracted, the price remains well above the 5-year historical average.

The positive outlook for gold will likely be sustained. Key headwinds for gold are interest rate hikes, currently at near historically low levels, but continued geopolitical risk and underperformance of stocks and bonds will support gold (Gold Mid-Year Outlook 2022, Gold.org, Accessed 2022). The gold price has experienced weaker momentum in Q2 2022, but stabilised. The gold market is expected to remain supported, and prices elevated for the balance of the financial year running into FY2023. Harmony has a relatively conservative gold hedging policy in place, and this is used to take advantage of the movements in the gold price to maximise the average gold price received, with the benefit of this hedging programme flowing through to Target.

16.6Material Contracts

Harmony has contractual vendor agreements with various service providers and suppliers. Table 16-1 lists the most significant of these contracts which are currently in place to support Target. All of the listed contracts are currently valid and in good standing. Terms, rates and charges of contracts are considered consistent with industry norms. Contract management processes are in place and resourced so that contracts re-tendered and/or renewed as they approach expiry.

As with all major businesses, Harmony and Target enters into a multitude of vendor agreements for the provisions of supplies and services. These agreements are entered into on a competitive basis and typically are of a medium-term duration all with clauses providing for periodic updating of pricing, annual (or other) renewal or termination.

Table 16‑1: Material Contracts


Vendor Name			Nature of Service / Supply
TWC Mining (Pty) Ltd			Backlog Support (Mining)
Sandvik (Pty) Ltd			Conventional, Solo and Development Drilling (Mining)
Improchem (Pty) Ltd			Water Treatment Services (Cooling and solids/liquid separation. Filtration and monitoring. 284 Settlers ph control and flocculation. 284 Settlers monitoring equipment upgrades).
CSA Fire and Safety			Quarter service and monthly inspection of fire equipment. Monthly rental of fire equipment. Supply and install new Ansul Automatic Vehicle Fire Suppression systems, automate existing manual systems and install blaze cuts.
Rand Air (Pty) Ltd			Rental of compressors underground.


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17Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Section 229.601(b)(96) (17) (i-vii)

The South African Government has an extensive legal framework within which mining, environmental and social aspects of the industry are managed. Harmony and Target are primarily regulated and managed by various principal Acts as well as corporate policies, management systems and certain industry-wide guidelines, including:

•Energy Efficiency and Climate Change Policy;

•Environmental Policy;

•Harmony Water Management Strategy;

•Biodiversity and Rehabilitation Position Statement;

•Socio-Economic Transformation Policy; and

•Corporate Social Responsibility Policy.

The latest sustainability policies and public environmental social and governance (“ESG”) performance and disclosure report(s) are available on the corporate website. Harmony has identified the environmental risks for the business and has strategies and management systems in place to manage the risks.

17.1Results of Environmental Studies

Target has prepared multiple environmental impact assessments (“EIA”) for regulatory approval, which under the current legal framework, require stakeholder engagement. The most recent EIA was undertaken in 2012.

The results of the studies have been incorporated into the Harmony business planning process. The results of all the studies are too voluminous to include in this TRS and therefore the reader is directed to the Environmental Management Programme report dated 2019.

Harmony is committed to maintaining good relationships with regulatory authorities, industries, communities, business partners and surrounding stakeholders. A detailed environmental impact register has been developed to identify all potential environmental impact of the operations. The main impacts were rated, and mitigation measures were proposed to minimise their impact on environment.

17.2Waste and Tailings Disposal, Monitoring & Water Management

Harmony recognises that responsible and effective waste management can positively reduce its environmental impacts and mitigate associated environmental liabilities. Waste management is thus a priority focus area. Internally, guidelines on mineral, non-mineral and hazardous waste materials are included in the environmental management systems (“EMS”) implemented at Target Mine.

Harmony's overall tailings management strategy is to ensure robust, meticulous engineering and dam design, along with a continual focus on management of risks through layered assurance and oversight.


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The focus areas include, but are not limited to:

•freeboard control;

•water management;

•maintaining stability and the safety factor as advised by the engineer of record;

•erosion controls; and

•monitoring and control measures implemented to ensure continued compliance (including regular inspections, audits and meetings on varying intervals with subsequent actions, minutes and reports).

As part of its mining, environmental and water approvals and licences, Harmony is required to implement monitoring programmes and plans to establish the operations impact on the environment. The compliance limits for the monitoring variable are included in the applicable EMPR(s), Water Use Licence(s) (“WUL(s)”) and environmental authorisations. The environmental monitoring implemented at Target includes:

•ground and surface water monitoring

•biodiversity monitoring;

•waste classification and quantification;

•integrated waste and water management plan updates;

•water balance reviews;

•licence and authorisation compliance reviews; and

•air quality (i.e., noise and dust) and greenhouse gas emissions monitoring.

Target has implemented Harmony’s corporate water management standard which applies to water in the entire mining lifecycle, including prospecting, project design and commissioning, operation and closure. This standard has led to several positive outcomes with long-term target set to reduce the amount of water used for primary activities by 4.5%.

Water from underground is re-circulated to limit the amount of water that would need to be pumped to surface. Water is pumped from various levels into skidams and 20/21 dams and then into 266 settlers where it is treated for re-use. Excess water from 266 settlers is pumped to 30 Level pump station and then into the Million Gallon Dam for treatment and re-use at the plant.

A surface and groundwater water monitoring program and network is established to ensure compliance with certain regulatory requirements and industry standards. Ground and surface water monitoring is conducted on regular intervals from strategically placed boreholes and surface water streams and dams around the operation. The drinking quality of water is monitored daily to ensure compliance to the South African national drinking water quality standard (SANS 241).

17.3Permitting and Licences

In respect of environment, the following national Acts and the regulations promulgated thereunder provide the regulatory framework for mine permitting and licencing in South Africa:

•Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”);

•National Environmental Management Act, 1998 (“NEMA”);

•National Environmental Management: Waste Act, 2008 (“NEM:WA”);

•National Environmental Management: Air Quality Act, 2004 (“NEM:AQA”); and

•National Water Act, 1998 (“NWA”)


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A summary of the status of all environmental permits and licences issued at the effective date related to Target is presented in Table 17-1.

Table 17-1: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

EMPR

FS 30/5/1/2/3/2/1(14) EM

DMRE

16-Apr-2010

LOM

Atmospheric Emission Licence

LDM/AEL/YMK/013

Lejweleputswa District Municipality

05-Nov-2018

05-Nov-2023

Water Permit

789N

DWS

04-Nov-2008

Valid pending issue of new license

Water Permit

1046B

DWS

04-Nov-2008

Valid pending issue of new license

Note: DMRE - Department of Mineral Resources and Energy, DWS - Department of Water and Sanitation

All relevant mining, environmental and water-use permits are in place that cover the environmental, archaeological, and hydrological components of Target Mine. All permits are audited regularly for compliance and no material risks to the operations have been identified.

There are applications submitted or being considered by the relevant authorities to ensure compliance and alignment with operations LOM requirements. To this end, applications have been submitted to amend the existing EMPR (required for the Freddies 9 TSF Slurry Pipeline Project) and WUL and are awaiting approval from the regulator at the effective date of this TRS. These pending environmental permits and licences do not pose a material risk to the continuation of the operation.

17.4Local Stakeholder Plans and Agreements

Harmony strives to create sustainable shared value within the communities it operates. Local stakeholder plans and agreements are based on the results from socio-economic information, government development strategies and EIAs undertaken. The socio-economic development programme commits to:

•contribute to areas that will have the most meaningful socioeconomic impact on communities, namely infrastructure, education and skills development, job creation and entrepreneurial development;

•enhance broad-based local and community economic empowerment and enterprise development initiatives;

•facilitate socio-economic development in local communities by means of social and labour plan(s) (“SLP”) and corporate social responsibility programmes;

•support arts, culture, and sports and recreation; and

•build relationships based on trust within host communities.

The aim of the SLP is to promote employment and advance the social and economic welfare of all South Africans. Target's SLP was approved in June 2018 and is valid for a period of five years (i.e., until June 2022) in which the Company has committed to spend approximately ZAR40M this period.

The SLP has made the following main commitments related to socio-economic development within surrounding local communities:

•infrastructure development – roads, electricity and water;

•community training and recreation facilities; and

•youth entrepreneurial and business development support


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The SLP will need to be renewed and resubmitted to the regulator for approval. Compliance is the SLP is a prerequisite to securing and maintaining a mining right, with progress required to be reported each year.

17.5Mine Closure Plans

This amount was approximately ZAR132m as of 30 June 2022, which includes an allowance for management and contingency costs. The funding has been provided in the form of a trust fund and guarantees to satisfy the total regulatory liability.

17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups

Most of the required environmental authorisations are in place and only require amendments to be made to reflect the planned infrastructure at Target.

17.7Local Procurement and Hiring

Harmony is committed to investing in the future of local communities beyond the LOM and not to only empower them, but also to mitigate the impacts its activities to ensure a positive legacy. The 2014 Mining Charter serves to guide the south African mining industry in socio-economic transformation. Local procurement (goods and services) and human resource management are key measures set under the Mining Charter and are reported on annually.

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Periodic inspections are conducted by the DMRE to verify compliance with applicable environmental laws, regulations, permits and standards. In addition, Target has implemented an EMS in line with the ISO 14001 standard. The EMS is audited on an annual basis by a third party and includes the needs and expectations of interested parties.

As part of Harmony, Target conducts its operation based on policies and systems that are aligned to its corporate sustainable development framework. Although Harmony is not a signatory to the International Council on Mining and Metals or the UN Global Compact, these form the guiding principles of the framework. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (“GRI”).

Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (“CDP”) for both climate change and water. The CDP runs the global environmental disclosure system that supports companies to measure and manage their risks and opportunities on climate change, water security and deforestation.


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Most of the required environmental authorisations are in place and only require amendments to be made to reflect the planned infrastructure at Target. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.


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18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Economic parameters for the Harmony Group, including capital and operating costs, are determined, and signed off by the CODM, before distribution to the business units, including Target. The capital and operating costs are reported in ZAR terms and on a real basis. Rounding of figures may result in minor computational discrepancies.

18.1Capital Costs

The estimated capital costs for Target are reported according to costs associated with major equipment outside the main operating sections which is termed abnormal expenditure (“AE”), infrastructure development, as well as ongoing capital development (“OCD”), as presented in Table 18-1.

Costs associated with the MCC are determined because of Target’s SLP requirements and modelled as such. These costs are extracted from the SLP model.

An average contingency of 10% is applied where the capital cost estimates have a level of uncertainty, for example, where a capital project is an isolated occurrence. Where the capital cost estimates have a reasonable basis, there is no contingency applied. The estimated capital costs are carried forward and modelled in the Target cash flow.

18.2Operating Costs

A summary of the direct and indirect operating costs for Target are presented in Table 18-2. Operating costs are based on historic performance while applying any changes expected within the new financial year (such as electricity requirements, increased/decreased labour) and are used as an input into the Target cash flow model.

18.3Comment on Capital and Operating Costs

The capital and operating cost estimates for Target are based on actual historical data, as well as budget forecasts. Therefore, the forecasted costs are reliable, and at minimum meet the confidence levels of a Pre-Feasibility Study. This approach of estimating capital and operating costs is consistent with industry practice. A record of the forecast and budget costs is maintained by the operation, allowing for an assessment of the alignment of the forecast and actual costs.


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Table 18‑1: Target Capital Cost Estimates


Capital Cost Element (ZAR'000s)	Total LOM	FY2023	FY2024	FY2025	FY2026	FY2027	FY2028
AE	211,852	44,120	54,347	38,216	38,216	34,978	1,975
Shaft projects	229,139	23,044	56,367	45,962	45,962	38,536	19,268
Major projects	117,329	117,329	0	0	0	0	0
MCC	50,527	9,487	8,208	8,208	8,208	8,208	8,208
Total (excl OCD)	608,847	193,980	118,922	92,386	92,386	81,722	29,451
OCD	662,321	185,570	168,318	164,887	143,546	0	0
Total (incl OCD)	1,271,168	379,550	287,240	257,273	235,932	81,722	29,451

Table 18‑2: Target Operating Cost Estimates


Operating Cost Element (ZAR'000)	Total LOM	FY2023	FY2024	FY2025	FY2026	FY2027	FY2028
Wages - payroll 1	2,961,604	501,718	497,856	503,109	499,669	497,730	461,522
Wages - payroll 2	1,295,226	230,137	223,807	214,692	211,741	210,078	204,771
Stores and materials	2,182,055	388,810	375,667	371,601	360,751	340,613	344,613
Electric power and water	1,815,259	250,989	264,549	295,576	334,004	331,433	338,708
Outside contractors	789,235	160,544	151,582	148,078	113,980	109,572	105,479
Other	265,685	44,247	42,916	42,336	42,177	46,748	47,261
Direct Costs	9,309,064	1,576,445	1,556,377	1,575,392	1,562,322	1,536,174	1,502,354
Pumping	235,548	41,028	39,852	41,105	39,154	36,143	38,266
Refining charge	29,791	4,340	4,946	5,126	5,008	4,942	5,429
Backfill costs	58,689	17,702	13,423	11,743	7,787	5,349	2,685
Assay costs	37,277	5,571	6,193	6,378	6,257	6,189	6,689
Hostel costs	27,962	4,848	4,483	4,568	4,645	4,669	4,749
Plant treatment cost	973,936	152,492	161,134	164,818	163,402	163,851	168,239
OCD re-allocated	-108,076	-29,953	-28,560	-26,583	-22,980	0	0
Re-allocated costs	1,255,127	196,028	201,471	207,155	203,273	221,143	226,057
Mine overheads re-allocated	567,533	93,419	92,609	95,378	93,564	92,542	100,021
Total	11,131,724	1,865,892	1,850,457	1,877,925	1,859,159	1,849,859	1,828,432


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19Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

19.1Key Economic Assumptions and Parameters

The CODM forms, reviews, signs-off and distributes economic assumptions to its various business units. On an annual basis, during the period October to November, long-term commodity prices and exchange rates forecasts’, are received from various financial institutions. In addition, a specialist in Economics from a reputable economics company based in South Africa, provides expert views on the global markets, forward looking commodity prices, exchange rates, consumer price index, production price index, electricity cost and consumable increases. All factors are analysed, cognisance is taken of the requirements of the NYSE and JSE markets, and a proposal is presented to the CODM for recommendation and approval. These assumptions are then applied at Target, along with specific operational considerations.

19.1.1Metallurgical Recoveries

Plant recovery factor of 94.36 % at plant call factor of 100% was used in the LOM planning cycle and formed key basis for the assumption used in the Cash flow analysis for Target Mine.

19.1.2Gold Price

The proposed gold price (USD1,546/oz) is the price that is used by Harmony for Target’s annual planning cycle and forms the basis for the gold price assumptions used in the Target cashflows. The reader is referred to Figure 16-2 for the consensus forecast gold price. The conversions used in the calculation of the various gold prices is presented in Table 19-1.

Table 19-1: Conversions Used in Gold Price Calculations


Economic Factors	Gold Price (USD/oz)	Conversion Factor (oz/kg)	Exchange Rate (ZAR:USD)	Gold Price (ZAR/kg)
2022 Mineral Resource	1,723	32.15	15.35	850,191
2022 Mineral Reserve	1,546	32.15	15.35	763,000
2023 Forecasted Gold Price	1,546	32.15	15.35	763,000
Notes: Forecasted gold price as used in the Target cash flow.

19.1.3Exchange Rate

The consensus minimum and maximum ZAR:USD exchange rate for the year 2021 Q4 to year 2025 is presented in Figure 19-1. The long-term exchange rates are considered from year 2025 onwards. The volatility in the ZAR has continued against the USD resulting in the ZAR:USD exchange rate fluctuating. Forecasts as advised from various financial institutions show that the ZAR/USD is expected to trade in a range of ZAR15.13:USD – ZAR15.83:USD for the period 2022 to 2025 with a long-term outlook of ZAR15.83:USD in the short term.

In addition, the CODM has reviewed the ZAR:USD exchange rate performance over the past three years, for the period July 2019 - June 2022 (Table 19-2). The proposed spot exchange rate of 15.35 ZAR:USD is the exchange rate that is used by Harmony for the Target annual planning cycle and forms the basis for the ZAR:USD exchange rate assumptions used in the Target cash flow.

Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)


Period			Average Exchange Rate (ZAR:USD)
July 2019 to June 2020			15.68
July 2020 to June 2021			15.41
July 2021 to June 2022			14.75
3-Year Avg. (not weighted)			15.28


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Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast

19.1.4Royalties

Royalty is an expense paid to the government of South Africa and is accounted for in the Target cash flow models. In terms of the mining ring-fencing application, each ring-fenced mine is treated separately, and deductions can normally only be utilised against mining income generated from the relevant ring-fenced mine.

19.1.5Capital Expenditure

At Harmony, capital is allocated to the mines with a longer life. Target currently has a relatively short LOM model, and therefore has small amounts dedicated to capital expenditure. Detailed capital costs are presented for Target in Table 18-1.

19.1.6Operating Expenditure

The operating costs are determined as a function of the cash working costs of the mining and mineral processing plant activities, and ongoing capital development for mining. Whereas, total costs are a function of the operating costs, capital costs, and royalties. Detailed operating costs can be found for Target in Table 18-2.

19.1.7Working Capital

Working capital is calculated at a Harmony Group level and not at an operational level.

19.1.8Taxes


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eliminated when calculating the South African mining tax income. Excess capital expenditure is carried forward as unredeemed capital to be claimed against future mining taxable income.

19.1.9Closure Cost and Salvage Value

The closure cost estimates are provided in Section 17.4. No account has been taken of any potential salvage values.

19.1.10Summary

The key assumptions used in the cash flow are summarised for Target in Table 19-3.

Table 19-3: Key Economic Assumptions and Parameters


Parameter	Unit	Value
Production Rate	ktpa	636
Gold Recovery	%	94.36
Royalty	% of xx	Formula
Tax Rate	%	Formula
Gold Price	ZAR/kg	763,000
Exchange Rate	USD:ZAR	Variable
Discount Rate	%	9.00

19.2Economic Analysis

Table 19‑4: Target Cash Flow


Item	Units	Total LOM	FY2023	FY2024	FY2025	FY2026	FY2027	FY2028
Mining advance	m2	126,311	14,880	14,864	21,256	21,339	25,278	28,694
Ongoing Capital Development (OCD)	m	8,979	2,604	2,299	2,235	1,841	0	0
Milled Tons	t ('000)	4,585	593	759	808	776	758	891
Yield	g/t	3.97	4.05	3.99	3.75	4.23	4.35	3.56
Gold Recovered	kg	18,220	2,403	3,032	3,030	3,285	3,296	3,174
Revenue	ZAR'000	13,901,585	1,833,145	2,313,313	2,311,547	2,506,739	2,514,729	2,422,112
Working Costs	ZAR'000	9,281,266	1,865,892	1 850 457	1,877,927	1,859,159	1,849,858	1,828,430
OCD	ZAR'000	662,321	185,570	168,318	164,887	143,546	0	0
Sub-total Costs (including OCD)	ZAR'000	11,863,550	2,060,628	2,030,341	2,054,372	2,015,238	1,862,431	1,840,540
Abnormal Expenditure (AE)	ZAR'000	211,852	44,120	54,347	38,216	38,216	34,978	1,975
Shaft Projects	ZAR'000	229,139	23,044	56,367	45,962	45,962	38,536	19,268
Major Projects	ZAR'000	117,329	117,329	0	0	0	0	0
Mining Charter Compliance (MCC)	ZAR'000	50,527	9,487	8,208	8,208	8,208	8,208	8,208
Capital (excluding OCD)	ZAR'000	608,845	193,980	118,922	92,385	92,385	81,722	29,451
Royalty	ZAR'000	69,510	9,166	11,567	11,558	12,534	12,574	12,111
Total Costs (including capital and royalty)	ZAR'000	12,472,397	2,254,608	2,149,263	2,146,757	2,107,624	1,944,153	1,869,992
Profit (after OCD)	ZAR'000	2,769,864	-32,747	462,857	433,620	647,580	664,872	593,682
Profit (after capital and royalty)	ZAR'000	1,429,188	-421,463	164,050	164,790	399,115	570,576	552,120
Unit Costs (working costs)	ZAR/t	2,428	3,145	2,438	2,323	2,396	2,441	2,052
Unit Costs (working costs)	ZAR/kg	610,974	776,630	610,336	619,870	565,890	561,270	575,982


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Unit Costs (total costs including OCD)	ZAR/t	2,587	3,473	2,300	2,251	2,125	2,128	2,165
Unit Costs (total costs including OCD)	ZAR/kg	651,141	857,684	608,643	561,184	561,935	528,808	539,978
Unit Costs (total costs including capital and royalty)	R/t	2,720	3,800	2,832	2,656	2,716	2,565	2 099
Unit Costs (total costs including capital and royalty)	ZAR/kg	684,558	938,423	708,891	708,606	641,517	589,880	589,074
NPV - (low discount rate - 9%)	@9%	861,453
NPV - (medium discount rate - 12%)	@12%	728,894
NPV - (high discount rate - 15%)	@15%	616,478

The discounted cash flow model is used to calculate the Net Present Value (“NPV”) of the investments. The NPV for the metal price, for Target is approximately ZAR861m at a discount rate of 9%. The NPV is calculated on a cash flow that accounts for factors such as:

•mining and ore processing working costs;

•royalty payments;

•capital costs, including costs allocated to ongoing development;

•any significant project work considered as major projects; and

•costs deemed as abnormal expenditure.

In response to the challenges faced by companies during the COVID-19 pandemic, the South African government has implemented various stimulus packages to provide tax relief to companies. In 2020, the South African Parliament passed the Disaster Management Tax Relief Act, 2020 and the Disaster Management Tax Relief Administration Act, 2020, containing exceptional tax measures. Certain tax relief measures have been further delayed, including limited assessed loss deductions currently ending 1 January 2022 (South African Revenue Services, 2021).

19.3Sensitivity Analysis

The economic assumptions, cash flow breakdown and economic analysis contribute to the basis for the sensitivity analysis. The sensitivities are calculated and analysed, as shown in Table 19-5, Table 19-6 and Table 19-7. The sensitivity analysis is completed for variations in commodity price (ZAR/kg), working costs and royalties paid (ZAR); and a combined analysis considering variations in commodity price, total operating costs, and changes in production.

Harmony has reviewed its exposure in terms of South Africa’s political instability, the COVID-19 pandemic, the currency exchange rate, and the gold price, on its financial assets and financial liabilities, and has determined the sensitivities for a ±10% variance. Management considers this range to be a reasonable change given the volatility in the market.

Capital investments in Target are relatively low and not expected to have any significant impact on the NPV and therefore not included in a sensitivity analysis. The base case in the analysis below is the economic results emanating from the LOM plan.


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Table 19-5: Target Gold Price Sensitivity on NPV


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
+10%	18 220	839,300	15,291,744	12,472,397	2,819,348	1,888,278
+5%	18 220	801,150	14,596,665	12,472,397	2,124,268	1,374,866
LOM plan	18 220	763,000	13,901,586	12,472,397	1,429,189	861,453
-5%	18 220	724,850	13,206,506	12,472,397	734,110	348,040
-10%	18 220	686,700	12,511,427	12,472,397	39,030	-165,373

Table 19-6: Target Operating Cost Sensitivity on NPV


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
+10%	18 220	763,000	13,901,586	13,719,636	181,949	28,551
+5%	18 220	763,000	13,901,586	13,096,017	805,569	445,002
LOM plan	18 220	763,000	13,901,586	12,472,397	1,429,189	861,453
-5%	18 220	763,000	13,901,586	11,848,777	2,052,809	1,277,903
-10%	18 220	763,000	13,901,586	10,663,899	3,237,687	1,694,354

The sensitivity analysis shown in Table 19-5 and Table 19-6 is based on a change in a single assumption while

holding all other assumptions constant. From this is it evident that Target is most sensitive to changes in the gold price (ZAR/kg).

In practice, this is unlikely to occur, as risks and/or opportunities will have an impact on the cash flows, and changes in some of these assumptions may be correlated. The impact of one or a combination of risks and opportunities occurring at the same time cannot be specifically quantified so an analysis considering multi-parameters is considered. In this way the general risks, with the aid of the sensitivity table (Table 19-7) are adequately covered. The sensitivity analysis considering the three variations of gold price (ZAR/kg), operating costs (ZAR) and variation in production (kg gold) show that the lowering of working costs, improvement in productivity and the benefits of a higher gold price can have positive impacts for Target.

Table 19-7: Target Gold Price, Operating Costs, And Production Variation Sensitivity on NPV


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
+10%	20 042	839,300	16,820,919	13,719,636	3,101,282	2,130,792
+5%	19 131	801,150	15,326,498	13,096,017	2,230,482	1,470,452
LOM plan	18 220	763,000	13,901,586	12,472,397	1,429,189	861,453
-5%	17 309	724,850	12,546,181	11,848,777	697,404	303,795
-10%	15 578	652,365	10,162,407	10,663,899	-501,492	-202,522


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20Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

The present-day Target is located includes a single underground mine constructed as an extension to the Loraine gold mine. The EA Reefs have been mined extensively at Loraine. The history of the production achieved at Loraine is detailed in Section 5.4.

The Jeannette Project is located further southeast from Target Mine. In 2008 Taung Gold entered into an agreement to acquire 100% of the Jeanette Project from Harmony. The prospecting right was registered in the company’s name in November 2013. On 9 March 2017, the Company announced the results of the Pre-Feasibility Study for the Jeanette Project of 7.24Moz of gold, at an average all-in-sustaining-capital of USD392/oz, over the project’s 24-year life-of-mine.


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21Other Relevant Data and Information

Section 229.601(b)(96) (21)

Other relevant information includes public disclosure reports on Target’s operational, financial and environmental performance are available on the Company’s corporate website. The following reports are relevant to this TRS:

•Integrated annual report 2022;

•ESG report 2022;

•Financial report 2022;

•Report to shareholders 2022;

•Operational report 2022;

•TCFD report; and

•SLP Project FY22.


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22Interpretation and Conclusions

Section 229.601(b)(96) (22)

Target is a well-established mine and has been in operation since the early 1990’s. Harmony has no known risks to conduct mining activities over the permitted mining rights’ areas, incorporated as Target. In addition, no known risks are posed over surface access and activities, regarding mining related activities.

Target’s regional geological setting, mineralisation and deposit is well understood. The geology is supported by historical geophysical surveys, surface diamond core drilling and underground channel (chip) sampling and mapping. The bulk of the mineralisation is specifically within the Eldorado Formation. However, the full potential of the Basal Reef, has yet to be established on the Target property. The geological anomalies are identified, defined, and managed by the Target Geology Department. Recommended delineation drilling will further enhance the understanding of the potential of the Basal Reef on the Target Mines property.

The sampling approach and management, density assumptions, laboratory procedures, and assaying and analysis are in keeping with industry standards and practices and is appropriate for the conglomerate type of mineralisation at Target. The holistic understanding of the regional geology, lithological and structural controls of the mineralisation at Target is sufficient to support the estimation of Mineral Resources.

Ore mined at Target is processed at the Target processing facility which has been in operation since xxx, as such the processing method is considered well established for mineralisation at Target. Target makes use of historical trends and data as a basis for the ore recovery. However, metallurgical test work will be adopted for optimisation and Mineral estimation projects.

The data pertaining to the mineralisation, regional and geological setting, exploration findings, sample collection, preparation, and testing, inclusive of data verification and metallurgical test work gives rise to the Mineral Resource estimate. The combined Measured and Indicated Mineral Resource, exclusive of Mineral Reserves, as at 30 June 2022 is 7.56Mt at 8.41g/t Au, containing 2.046Moz of gold, and the Inferred Mineral Resource contains is 4.03Mt at 5.96g/t Au, containing 0.77Moz of gold

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and operational mine planning processes. Mine planning utilises and takes into consideration actual historical technical parameters. In addition, conversion of the Mineral Resources to Mineral Reserves considers Modifying Factors, such as cut-off grade, the MCF, the stoping width, the mining width and the plant recovery factor. The Mineral Reserve estimate is 4.45Mt of milled ore containing 0.61Moz of gold as at 30 June 2022.

Target is currently operating profitably, and the Mineral Reserve estimates show positive cash flows. Any other by-products that are recovered as part of the refining process, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimates. There are no obvious material risks that could have significant effect on the Mineral Reserves.

The Mineral Reserves are extracted via essentially through trackless mining operations, with a combination of highly mechanised mining, scattered mining and labour-intensive narrow reef stoping which is more typical of South African gold mines. Massive open stoping accounts for ±70% of the ore production with ±20% coming from the exploitation of the overlying Dreyerskuil reefs through conventional narrow reef stoping. The ±10% balance of the production contribution comes from trackless on-reef development sections.

Extracted minerals from Target are recovered at an onsite mineral processing plant. The plant treats the extracted minerals via the Zadra elution process for gold recovery.

The mine’s regional and local infrastructure is capable of fully supporting the mining and other surface related mining activities. Target is accessed via national and provincial road networks, has key power transmission and distribution networks provided by the National electricity regulator, water supply and recycling networks and communication infrastructure. Overall, Target is well-established with sufficient logistics and infrastructure support for the existing and planned mining operations.


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Harmony and Target are exposed to market risks such as exchange rate and gold price fluctuations which are partially offset by the Harmony Group hedging policy. The hedging programme considers factors affecting the global gold market and these, along with macro-economic conditions, are used to determine planning and forecasting inputs at group level for all of Harmony’s operating business units. Other non-gold related risks are addressed to some extent by Target when entering into vendor agreements for the provisions of supplies and services, which are done on a competitive basis with customary price adjustment, renewal, and termination clauses.

To successfully operate a mining operation in South Africa the state requires compliance with applicable environmental laws, regulations, permits and standards. Target adheres to said compliance and regulatory standards. As part of Harmony, Target conducts its operations based on policies and systems that are aligned to its corporate sustainable development framework. This is guided by the principles of the framework from the International Council on Mining and Metals or the United Nations Global Compact. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the GRI. Further to this, Harmony discloses environmental information on the CDP for both climate change and water.

Harmony has a good understanding of the environmental and social aspects through baseline and specialist studies previously conducted. Risk management and mitigation measures were adequately addressed in the environmental management plans. All the required environmental authorisations are in place, and only require amendments to be made to reflect the planned infrastructure at Target 1 shaft, which is pending at the effective date of this report. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months. There is reasonable expectation that the permits will be granted, as it is part of expansion of the current mining footprint within the approved mining lease area.

The economics of Target is based on the discounted cash flow model, with a gold price of ZAR763,000/kg. The NPV for the metal price, is ZAR861m, at a discount rate of 9%. The NPV is calculated on cash flows that consider factors such as: capital and operating costs; and royalties. The capital and operating cost estimates for Target are based on historical data, as well as budget forecasts. This estimation technique allows for the forecast and actual costs to be aligned.

Royalties and taxes are paid to the South African government and accounted for in the Target cash flow and NPV analysis. There are also specific tax relief benefits that apply to gold mining companies, where 5% of total revenue is exempt from taxation, amongst other benefits. In addition, in response to challenges faced by companies during the COVID-19 pandemic, the government have implemented various stimulus packages to provide some tax relief to companies.

The economics of Target are tested for its sensitivity to commodity price (ZAR/kg), operating costs (ZAR) gold production (kg). The insights provided by the sensitivity analysis is that Target Mine is most sensitive to changes in the gold price (ZAR/kg).

The TRS provides sufficient information as required and there is no other relevant data and information. The TRS was prepared by a team of experienced professionals. The TRS provides a summary of the material scientific and technical information concerning the mineral exploration, Mineral Resources, Mineral Reserves, and associated production activities of the mineral asset, including references to the valuation for Target. Each QP was responsible for specific sections of this TRS which they have personally supervised and reviewed. This TRS contains the expression of the QP opinions, based on the information available at the time of preparation.


Effective Date: 30 June 2022 91


			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

23Recommendations

Section 229.601(b)(96) (23)

23.1Recommendation 1

Results of relative density tests taken on Dreyerskuil reefs were higher than 2.71 standard for Target Mine, and therefore more tests are required to verify the density of the Dreyerskuil reefs.

23.2Recommendation 2

The full potential of the Basal Reef, which produces 85% of the gold from the Free State Goldfield, has yet to be established on the Target property as initial drilling had focused on the shallower Eldorado (Elsburg) and Kimberley (Aandenk) reefs. Therefore, the QP recommends that delineation drilling be undertaken to establish this. In addition, further exploration drilling is recommended to determine the potential of EA3 reefs in the inter-fan areas of BLK12.

23.3Recommendation 3

The SLOS mining method will be tested for the first time in deep level mining. Therefore, actual data regarding dilution due to caving or under-breaks must be collected for reconciliations and future planning process.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

24References

Section 229.601(b)(96) (24)

Callow, M.J.W., and Myers, R.E.,1986. A tectono-stratigraphic model for the development of the Welkom Fan Placer deposits: Orange Free State Goldfields. In: Geocongress 1986 extended abstracts, Geological Society South Africa, 455 - 460.

Chapman, K., 1969. The geology of Loraine Gold Mines, Limited. A brief description. Unpublished company report, Anglovaal Limited, Johannesburg.

https://arm.co.za/wp-content/uploads/2020/05/ar_2002/3/4.pdf

https://www.gold.org/goldhub/data/gold-prices. Accessed 22 July 2022.

Minter, W.E.L., Hill, W.C.N., Kidger, R.J., Kingsley, C.S. and Snowden, P.A., 1986. The Welkom Goldfield In: Anhaeusser C.R. and Maske, S. (Eds) Mineral Deposits of Southern Africa. Geological Society South Africa, 1, 497 – 539.

Motlala, S. (2021). Target Mining Operations - Competent Persons Report Ore Reserves. South Africa: Harmony - Target Operations.

Olivier, H.J. (1965). The tectonics of the upper division of the Witwatersrand System in the Loraine area of the Orange Free State Goldfields. Transactions Geological Society South Africa, 68, 143 - 175.

Robb, L.J., and Meyer, F., 1995. The Witwatersrand Basin, South Africa: Geological framework and mineralisation processes. Ore Geology Reviews, 10(2), 67-94.

Robb, L.J., Robb, V.M., 1998. Gold in the Witwatersrand Basin. In: Wilson, M.G.C., Anhaeusser, C.R. (Eds.), The Mineral Resources of South Africa. Handbook. Council for Geoscience, 294–349.

Tucker, R.F., Viljoen, R.P., and Viljoen, M.J., 2016. A Review of the Witwatersrand Basin The World’s Greatest Goldfield, accessed from https:// www.researchgate.net /publication /305924249 _A_Review_of_the_Witwatersrand_Basin_-_The_World's_Greatest_Goldfield.

South African Revenue Services. (2021, July 29). South African Revenue Services. Retrieved from Tax Relief Measures: https://www.sars.gov.za/media/tax-relief-measures/

Therriault, A.M., Grieve, R.A.F., Reimold, W.U., 1997. Original size of the Vredefort Structure: Implications for the geological evolution of the Witwatersrand Basin. Meteoritics and Planetary Science 32, 71–77.

Winter, H. de la R (1964). The geology of the Northern Section of the Orange Free State Goldfield, p. 417 - 450. In: Haughton, S.H. (Ed). The geology of some ore deposits of Southern Africa. 1. Geological Society South Africa 625 pp.

World Gold Council. (2022, July 18). World Gold Council, Gold Hub, Gold mine production: Gold Production by Country | Gold Production | Goldhub.


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			Technical Report Summary for Target Gold Mine, Free State Province, South Africa

25Reliance on Information Provided by the Registrant

Section 229.601(b)(96) (25)

Further to Section 24, in the preparation of this TRS, the principal QPs and authors relied upon information provided by the Registrant and other internal specialists with regards to mining rights, surface rights, contractual agreements, historical operating expenditures, community relations and other matters. The work conducted by these specialists was completed under the supervision and direction of the respective QPs. The specialists who assisted the principal authors and QPs are listed in Table 25-1.

Table 25-1: Other Specialists


Name	Specialist	Area of Responsibility	Association / Company
E Malaola	Manager ORM Audit and Survey	Mineral Resources and Reserves Audit	Harmony Central
T v Dyk	Senior Ore Reserve Manager	Mineral Resources and Reserves Audit	Harmony Central
J Boshoff	Executive: Ore Reserves	Mineral Resources and Reserves Audit	Harmony Central
S Green	General Manager	Mining	Target
R Phaladi	Metallurgist	Gold processing	Target
Z Hadebe	Engineer	Water Reticulation	Target


Effective Date: 30 June 2022 94

HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Tshepong Operations

Free State Province, South Africa


Effective Date: 30 June 2022 Final Report Date: 30 July 2022


			Technical Report Summary for Tshepong Operations, Free State Province, South Africa


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.


Effective Date: 30 June 2022 ii


			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

Signature Page

/s/ Bothepha Phetlhu

___________________________________

Ms Bothepha Phetlhu

BTech (Geology), M (Eng)

SACNASP (No. 120348)

Ore Reserve Manager

Phakisa Mine

Harmony Gold Mining Company Limited

/s/ Andrew Louw

___________________________________

Mr Andrew Louw

B.Sc. (Hons) Geohydrology, CEE Diploma

SACNASP (No. 136445)

Ore Reserve Manager

Tshepong Mine

Harmony Gold Mining Company Limited

List of Contents


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa


1	Executive Summary			1
2	Introduction			7
3	Property Description and Location			8
	3.1	Mineral Tenure		8
	3.2	Property Permitting Requirements		8
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			11
	4.1	Accessibility		11
	4.2	Physiology and Climate		11
	4.3	Local Resources and Infrastructure		11
5	History			12
	5.1	Historical Ownership and Development		12
	5.2	Historical Exploration		13
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		13
	5.4	Past Production		15
6	Geological Setting, Mineralisation and Deposit			16
	6.1	Regional Geology		16
	6.2	Local Geology		16
	6.3	Property Geology		19
		6.3.1	Basal Reef Lithology	19
		6.3.2	B Reef Lithology	19
		6.3.3	Structure	22
	6.4	Mineralisation		23
		6.4.1	Basal Reef	23
		6.4.2	B Reef	23
		6.4.3	Alteration	23
	6.5	Deposit Type		23
	6.6	Commentary on Geological Setting, Mineralisation and Deposit		24
7	Exploration			25
	7.1	Geophysical Surveys		25
	7.2	Topographic Surveys		25
	7.3	Underground Mapping		25
	7.4	Channel Sampling Methods and Sample Quality		25
	7.5	Surface Drilling Campaigns, Procedures, Sampling, Recoveries and Results		26
		7.5.1	Drilling Methods	28
		7.5.2	Collar and Downhole Surveys	28
		7.5.3	Logging Procedures	28
		7.5.4	Drilling Results	28
		7.5.5	Core Recovery	31
		7.5.6	Sample Length and True Thickness	31
	7.6	Underground Drilling Campaigns, Procedures and Sampling		32
		7.6.1	Drilling Methods	32
		7.6.2	Collar and Downhole Surveys	32
		7.6.3	Logging Procedures	32
		7.6.4	Drilling Results	33
		7.6.5	Core Recovery	33
		7.6.6	Sample Length and True Thickness	33


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	7.7	Hydrogeology		33
	7.8	Geotechnical Data		33
	7.9	Commentary on Exploration		37
8	Sample Preparation, Analyses and Security			38
	8.1	Sampling Method and Approach		38
		8.1.1	Channel Samples	38
		8.1.2	Core Samples	38
	8.2	Density Determination		39
	8.3	Sample Security		39
	8.4	Sample Storage		39
	8.5	Laboratories Used		39
	8.6	Laboratory Sample Preparation		39
	8.7	Assaying Methods and Analytical Procedures		40
	8.8	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)		40
		8.8.1	Standards	40
		8.8.2	Blanks	41
		8.8.3	Duplicates	41
	8.9	Comment on Sample Preparation, Analyses and Security		41
9	Data verification			42
	9.1	Databases		42
	9.2	Data Verification Procedures		42
	9.3	Limitations to the Data Verification		42
	9.4	Comment on Data Verification		42
10	Mineral Processing and Metallurgical Testing			43
	10.1	Extent of Processing, Testing and Analytical Procedures		43
	10.2	Test Results and Recovery Estimates		43
	10.3	Degree of Representation of Mineral Deposit		43
	10.4	Commentary of Mineral Processing and Metallurgical Testing		43
11	Mineral Resource Estimate			45
	11.1	Geological Database		45
	11.2	Global Statistics		45
	11.3	Geological Interpretation		46
	11.4	Structural Wireframe Model		46
	11.5	Compositing		46
	11.6	Capping		47
	11.7	Variography		47
	11.8	Mineral Resource Estimation Methods and Parameters		49
	11.9	Density Assignment		51
	11.1	Model Validation		51
	11.11	Mineral Resource Evaluation		51
	11.12	Mineral Resource Classification and Uncertainties		51
	11.13	Mineral Resource Estimate		52
	11.14	Mineral Resource Reconciliation		56
	11.15	Comment on Mineral Resource Estimates		56
12	Mineral Reserve Estimate			57
	12.1	Phakisa		57


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa


		12.1.1	Key Assumptions, Parameters, and Methods Used to Estimate the Mineral Reserve	57
		12.1.2	Modifying Factors	58
		12.1.3	Mineral Reserve Estimate	58
		12.1.4	Mineral Reserve Reconciliation	59
	12.2	Tshepong		59
		12.2.1	Key Assumptions, Parameters, and Methods Used to Estimate the Mineral Reserve	59
		12.2.2	Modifying Factors	60
		12.2.3	Mineral Reserve Estimate	60
		12.2.4	Mineral Reserve Reconciliation	61
	12.3	Commentary on Mineral Reserve Estimate		61
13	Mining Method			62
	13.1	Mining Operations		62
		13.1.1	Phakisa	62
		13.1.2	Tshepong	62
		13.1.3	Sequential Grid Mining (“SGM”)	63
		13.1.4	Open Stoping	63
		13.1.5	Breast Mining	63
		13.1.6	Integrated Approach	63
	13.2	Mine Design		64
		13.2.1	Mine Design Parameters	66
	13.3	Geotechnical Considerations and Seismic Monitoring		67
	13.4	Geohydrological Considerations		68
	13.5	Mine Plan Development and Life of Mine (“LOM”) Schedule		68
	13.6	Mining Rates		72
	13.7	Grade and Dilution Control		72
	13.8	Mining Equipment and Machinery		72
	13.9	Ore transport		73
	13.10	Mining Personnel		73
	13.11	Commentary on Mining Methods		75
14	Processing and Recovery Methods			76
	14.1	Mineral Processing Description		76
	14.2	Plant Throughput, Design, Equipment Characteristics and Specifications		78
	14.3	Energy, Water, Process Material and Personnel Requirements		78
		14.3.1	Energy	78
		14.3.2	Water	78
		14.3.3	Process Material	78
		14.3.4	Personnel	78
	14.4	Commentary on the Processing and Recovery Methods		78
15	Infrastructure			80
	15.1	Surface Infrastructure		80
		15.1.1	Ore and Waste Rock Storage Facilities	80
		15.1.2	Tailings Storage Facilities	80
		15.1.3	Rail	80
	15.2	Underground Infrastructure and Shafts		86


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa


		15.2.1	RailVeyorTM	86
	15.3	Power and Electrical		86
	15.4	Water Usage		86
	15.5	Logistics and Supply		87
	15.6	Commentary on Infrastructure		87
16	Market Studies			88
	16.1	Market Overview		88
	16.2	Global Production and Supply		88
		16.2.1	New Mine Production	88
		16.2.2	Recycling	88
	16.3	Global Consumption and Demand		88
		16.3.1	Jewellery	88
		16.3.2	Investment	89
		16.3.3	Currency	89
	16.4	Gold Price		89
		16.4.1	Historical Gold Price	89
		16.4.2	Forecast Gold Price	89
		16.4.3	Harmony Group Gold Hedging Policy	89
	16.5	Commentary on Market Studies		91
	16.6	Material Contracts		91
17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			92
	17.1	Results of Environmental Studies		92
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		92
	17.3	Permitting and Licences		93
	17.4	Local Stakeholder Plans and Agreements		94
	17.5	Mine Closure Plans		94
	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals or Groups		95
	17.7	Local Procurement and Hiring		95
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		95
18	Capital and Operating Costs			96
	18.1	Capital Costs		96
	18.2	Operating Costs		96
	18.3	Comment on Capital and Operating Costs		96
19	Economic Analysis			97
	19.1	Key Economic Assumptions and Parameters		97
		19.1.1	Gold Price	97
		19.1.2	Exchange Rate	97
		19.1.3	Royalties	97
		19.1.4	Taxes	98
		19.1.5	Summary	98
	19.2	Economic Analysis		99
	19.3	Sensitivity Analysis		99
20	Adjacent properties			102


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa


21	Other Relevant Data and Information	103
22	Interpretation and Conclusions	104
23	Recommendations	106
24	References	107
25	Reliance on Information Provided by the Registrant	108


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

List of Figures


Figure 3-1: Location of Tshepong Operations in the Free State Goldfield			9
Figure 3-2: Mineral Tenure for Tshepong Operations			10
Figure 5-1: Graph of Past Production – Tonnes and Grade			15
Figure 5-2: Graph of Past Metal Production			15
Figure 6-1: Regional Geology of the Witwatersrand Basin			17
Figure 6-2: Simplified stratigraphy of the Free State Goldfield			18
Figure 6-3: Structural Geology of the Free State Goldfields			20
Figure 6-4: Tshepong Operations Cross Section			21
Figure 7-1: Location of Channel Samples Collected from the Basal Reef			26
Figure 7-2: Location of Channel Samples Collected from the B Reef			27
Figure 7-3: Location of Surface and Underground Drill Holes on the Basal Reef			29
Figure 7-4: Location of Surface and Underground Drill Holes on the B Reef			30
Figure 11-1: Tshepong Operations Basal and B Reef Geozones			48
Figure 11-2: Tshepong Operations Basal Reef and B Reef Estimation Results			50
Figure 11-3: Location and Classification of Tshepong Operations Mineral Resources and Mineral Reserves for the Basal Reef			53
Figure 11-4: Location and Classification of Tshepong Operations Mineral Resources and Mineral Reserves for the B Reef			54
Figure 13-1: Schematic Representation of the SGM Sequence			65
Figure 13-2: Tshepong Operations LOM Plan			69
Figure 13-3: Graph of Phakisa Mine LOM Plan – Tonnes and Grade			70
Figure 13-4: Graph of Phakisa Mine LOM Plan – Gold Produced (oz)			70
Figure 13-5: Graph of Tshepong Mine LOM Plan – Tonnes and Grade			71
Figure 13-6: Graph of Tshepong Mine LOM Plan – Gold Produced (oz)			71
Figure 13-7: Tshepong Operations Shaft and Underground Infrastructure			74
Figure 14-1: Schematic Flow Diagram of the Metallurgical Process			77
Figure 14-2: Graph of Tshepong Operations Historical Recovery Factor (18 month actual)			79
Figure 15-1: Tshepong Operations Surface Layout and Infrastructure			81
Figure 15-2: Phakisa Detailed Surface Infrastructure			82
Figure 15-3: Tshepong Detailed Surface Infrastructure			83
Figure 15-4: Nyala Detailed Surface Infrastructure			84
Figure 15-5: Harmony One Plant Detailed Surface Infrastructure			85
Figure 16-1: Graph of Annual Gold Price History – ZAR/kg			90
Figure 16-2: Graph of Consensus View of Forecast Gold Price			90
Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast			98


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

List of Tables


Table 1-1: Summary of the Phakisa Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves)			2
Table 1-2: Summary of the Tshepong Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves)			3
Table 1-3: Summary of the Phakisa Mineral Reserves as at 30 June 2022			4
Table 1-4: Summary of the Tshepong Mineral Reserves as at 30 June 2022			4
Table 1-5: Summary of Capital Cost Estimate for Tshepong Operations			5
Table 1-6: Summary of Operating Cost Estimate for Tshepong Operations			6
Table 1-7: Status of Environmental Permits and Licences			6
Table 2-1: QP Qualification, Section Responsibilities and Personal Inspections			7
Table 3-1: Summary of Mining Rights for Tshepong Operations			8
Table 5-1: Summary of Historical Ownership Changes and Activities of Tshepong Operations			12
Table 5-2: Summary of the Previous Phakisa Mineral Resources as at 30 June 2021 (Exclusive of Mineral Reserves)			13
Table 5-3: Summary of the Previous Tshepong Mineral Resources as at 30 June 2021 (Exclusive of Mineral Reserves)			13
Table 5-4: Summary of the Previous Phakisa Mineral Reserves as at 30 June 2021			14
Table 5-5: Summary of the Previous Tshepong Mineral Reserves as at 30 June 2021			14
Table 7-1: Summary of Surface and Underground Drilling for Phakisa			31
Table 7-2: Summary of Surface and Underground Drilling for Tshepong			31
Table 7-3: Drill hole Acceptance Criteria			31
Table 7-4: Summary of Recent Phakisa Underground Drill Holes Intersecting the Basal Reef			34
Table 7-5: Summary of Recent Phakisa Underground Drill Holes Intersecting the B Reef			35
Table 7-6: Summary of Recent Tshepong Underground Drill Holes Intersecting the Basal Reef			36
Table 7-7: Summary of Recent Tshepong Underground Drill Holes Intersecting the B Reef			37
Table 8-1: Summary of Harmony Assay Laboratory SRM Performance for Phakisa			40
Table 8-2: Summary of Harmony Assay Laboratory SRM Performance for Tshepong			41
Table 11-1: Global Statistics for Basal and B Reef			46
Table 11-2: Capping Values by Reef and Geozone			49
Table 11-3: Harmony Economic Assumptions (30 June 2022)			51
Table 11-4: Summary of the Phakisa Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves)			55
Table 11-5: Summary of the Tshepong Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves)			55
Table 12-1: Phakisa Modifying Factors Used for Mineral Reserve Determination			58
Table 12-2: Summary of the Phakisa Mineral Reserves as at 30 June 2022			58
Table 12-3: Tshepong Modifying Factors Used for Mineral Reserve Determination			60
Table 12-4: Summary of the Tshepong Mineral Reserves as at 30 June 2022			60
Table 13-1: Phakisa Mine Design Parameters			66
Table 13-2: Tshepong Mine Design Parameters			67
Table 13-3: Phakisa Mine Mining Personnel			73
Table 13-4: Tshepong Mine Mining Personnel			75
Table 14-1: Key Design Parameters and Equipment Specifications			78
Table 14-2: Harmony One Plant Consumables			78
Table 14-3: Harmony One Plant Personnel			78
Table 16-1: Material Contracts			91


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa


Table 17-1: Status of Environmental Permits and Licences			94
Table 18-1: Summary of Capital Cost Estimate for Tshepong Operations			96
Table 18-2: Summary of Operating Cost Estimate for Tshepong Operations			96
Table 19-1: Conversions Used in Gold Price Calculations			97
Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)			97
Table 19-3: Key Economic Assumptions and Parameters for Tshepong Operations Cash Flow			98
Table 19-4: Tshepong Operations Cash Flow			100
Table 19-5: Gold Price Sensitivity Analysis			101
Table 19-6: Total Operating Cost Sensitivity Analysis			101
Table 19-7: Gold price, Operating Costs, and Production Variation Sensitivity Analysis			101
Table 25 1: Other Specialists			108


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
°C			degrees Celsius
µm			Micrometres
2D			Two-dimensional
3D			Three-dimensional
AE			Abnormal expenditure
Ag			Silver
AngloGold Ashanti			AngloGold Ashanti Limited
ARM			African Rainbow Minerals Limited
ARMGold			ARM Gold Division
Au			Gold
AuBIS			Harmony electronic database
Ave.			Average
BLR			Black Reef
BMD			Below mine datum
Bn			Billion
c.			Approximately
CIP			Carbon-In-Pulp
CLR			Carbon Leader Reef
cm			Centimetre
cmg/t			Centimetre-grams per tonne
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COP			Code of Practice
CRG			Central Rand Group
CRM			Certified Reference Material
CV			Coefficient of Variation
DBH			Dewatering borehole
DMRE			Department of Mineral Resources and Energy
DWAFEC			Department of Water Affairs, Forestry and Environmental Conservation
DWS			Department of Water and Sanitation
EIA			Environmental Impact Assessment
EMPR			Environmental Management Programme
EMS			Environmental Management System
EMTS			Electric Monorail Transport System
ESG			Environmental Social and Governance
ETF			Exchange traded fund
FAG			Fully autogenous
FX			Foreign Exchange rate
g			Gram
g/t			Grams per metric tonne
GBH			Groundwater boreholes
GDARD			Gauteng Department of Agriculture and Rural Development
GHG			Greenhouse gas
GISTM			Global Industry Standard on Tailings Management
ha			Hectare
Harmony			Harmony Gold Mining Company Limited
HLS			Heavy liquid separation
HPE			Hydro-powered
kg			Kilogram


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa


km			Kilometre
km2			Square kilometre
kWh			Kilowatt-hour
LBMA			London Bullion Market Association
LIB			Long Inclined Borehole
LOM			Life of Mine
LOI			Loss on ignition
Ltd			Limited
m			Metre
M			Million
m3/hr			Cubic metres per hour
MCC			Mining Charter Compliance
MCF			Mine Call Factor
Moz			Million troy ounces
MPRDA			Mineral and Petroleum Resources Development Act, 28 of 2002
Mt			Million tonnes
Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
NEMA			National Environmental Management Act, 107 of 1998
No.			Number
NPV			Net present value
oz			Troy ounce
OTC			Over the counter
Phakisa			Phakisa Mine
Pty			Proprietary
QA/QC			Quality Assurance/Quality Control
QEMSCAN			Scanning electron microscope
QP			Qualified Person
ROM			Run-of-Mine
SACNASP			South African Council for Natural Scientific Professions
SAMREC			The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves
SD			Standard Deviation
SEC			Securities and Exchange Commission
SGM			Sequential Grid Mining
SLP			Social Labour Plan
t			Metric tonne
t/m3			Tonne per cubic metre
Target			Target Mine
TCFD			Task Force on Climate-Related Financial Disclosure
TMS			Trace mineral search
TRS			Technical Report Summary
TSF			Tailings Storage Facility
Tshepong			Tshepong Mine
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
WRG			West Rand Group
WUL(s)			Water Use Licence(s)
XRD			X-ray diffraction
ZAR			South African Rand
ZAR/kg			South African Rand per kilogram


Effective Date: 30 June 2022 v


			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

Glossary of Terms


Term			Definition
Co-kriging			A method that is used to predict the value of the point at unobserved locations by sample points that are known to be spatially interconnected by adding other variables that have a correlation with the main variable or can also be used to predict 2 or more variables simultaneously.
Cut-off grade			Cut-off grade is the grade (i.e., the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Dilution			Unmineralised rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Head grade			The average grade of ore fed into the mill.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project and may not be converted to a Mineral Reserve.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralisation, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralisation drilled or sampled.


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa


Modifying Factors			Modifying factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include but are not restricted to; mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product.
			(1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable.
			(2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is:
			(1) A mineral industry professional with at least five years of relevant experience in the type of mineralisation and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and
			(2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must:
			(i) Be either:
			(A) An organization recognized within the mining industry as a reputable professional association; or
			(B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field;
			(ii) Admit eligible members primarily on the basis of their academic qualifications and experience;
			(iii) Establish and require compliance with professional standards of competence and ethics;
			(iv) Require or encourage continuing professional development;
			(v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and
			(vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.


Effective Date: 30 June 2022 v


			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Person(s) (“QP”) of Harmony Gold Mining Company Limited (“Harmony” or the “Company”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Company’s Tshepong Operations. The TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, with an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature of this TRS.

Property Description

The Tshepong Operations comprise the underground and surface assets associated with two mines, namely Tshepong Mine (“Tshepong” or “Tshepong Mine”) and Phakisa Mine (“Phakisa” or “Phakisa Mine”), situated between the towns of Welkom and Odendaalsrus in the Free State Province of South Africa. The mines are both moderate to deep-level gold mines, operating at depths of between 1.6km and 2.4km below mine datum (“BMD”). The primary reef mined is the Basal Reef, with additional gold mineralisation being found in the B Reef and A Reef.

Mining at Tshepong Operations is carried out under the following mining right, covering both Tshepong and Phakisa:

•FS30/5/1/284MR, which is valid from 11 December 2007 to 10 December 2029 and covers an area of 10,798.74 hectares (“ha”).

The mining right is held in a joint venture between African Rainbow Minerals Limited (“ARM”) Gold Division (“ARMGold”) and Harmony.

All relevant underground mining and surface right permits, and any other permit related to the work conducted on the property have been obtained and are valid. There are no known legal proceedings (including violations or fines) against Harmony, which threaten its mineral rights, tenure, or operations.

Ownership

The Tshepong Operations are wholly owned by Harmony, including the associated mineral rights. Harmony commenced acquiring the assets through the acquisition of AngloGold Ashanti Limited’s (“AngloGold Ashanti”) Free State operations in 2001, together with ARMGold. ARMGold was subsequently incorporated into Harmony in 2003, giving Harmony 100% ownership and control of the Tshepong Operations.

Geology and Mineralisation

The Tshepong Operations are situated in the Free State Goldfield, on the southwestern margin of the Witwatersrand Basin of South Africa, one of the most prominent gold provinces in the world. The major gold bearing conglomerate reefs are mostly confined to the Central Rand Group (“CRG”) of the Witwatersrand Supergroup.

The general orientation of the Witwatersrand Supergroup succession in this goldfield is interpreted as north-trending, within a syncline that is plunging to the north. The syncline has been divided by faults into the Odendaalsrus, Central Horst and Virginia sections. The Tshepong Operation mining right area is also affected by the Ophir and Dagbreek faults.

Tshepong Operations exploited primarily the Basal Reef, which occurs within the Harmony Formation of the Johannesburg Subgroup of the CRG.

Mineralisation also occurs within the stratigraphically higher A and B reefs of the Kimberley (formerly Aandenk) Formation, within the Turffontein subgroup of the CRG. However, only the B Reef can be economically extracted.

Mineralisation is associated with the presence of medium to coarse, clast-supported oligomictic pebble horizons. The presence of allogenic pyrite and detrital carbon is also common.


Effective Date: 30 June 2022 1


			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

Status of Exploration, Development and Operation

The Basal Reef at Tshepong Operations has been extensively explored. Recent exploration has mainly focused on improving confidence in the geological model, as well as adding and upgrading Mineral Resources to replace the mining depletion. Geological data has been obtained through underground channel sampling, mapping and drilling. Initial exploration included a historical geophysical seismic survey and surface diamond core drilling. This was followed up with, closer spaced underground data gathering exercises.

Mineral Resource Estimate

The Mineral Resources for the Basal Reef and B Reef (both Tshepong and Phakisa Mines) were estimated by the Harmony QP in Datamine™ Studio software. The QP created block models based on a verified electronic database containing surface drill hole data, as well as underground drilling, mapping, and sampling data obtained up until December 2020. Gold values were estimated using ordinary and simple macro kriging interpolation methods.

The Mineral Resources for Phakisa were originally prepared, classified and reported according to the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (“SAMREC, 2016”). For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

The QP compiling the Mineral Resource estimate for Phakisa is Ms B Phetlhu, Ore Reserve Manager at Phakisa and employee of Harmony.

The Mineral Resource estimate for Phakisa, as at 30 June 2022, exclusive of the reported Mineral Reserves is summarised in Table 1-1.

Table 1-1: Summary of the Phakisa Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	4.741	13.25	62,797
Indicated	7.264	11.27	81,831
Total / Ave. Measured + Indicated	12.005	12.05	144,627
Inferred	27.491	10.77	295,943
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	5.226	0.386	2.019
Indicated	8.007	0.329	2.631
Total / Ave. Measured + Indicated	13.233	0.351	4.650
Inferred	30.303	0.314	9.515
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Ms B Phetlhu, who is Ore Reserve Manager at Phakisa, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 780cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.


Effective Date: 30 June 2022 2


			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

The Mineral Resources for Tshepong were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Mineral Resource estimate, as at 30 June 2022, exclusive of the reported Mineral Reserves is summarised in Table 1-2

The QP compiling the Mineral Resource estimate for Tshepong is Mr A Louw, Ore Reserve Manager at Tshepong and employee of Harmony.

Table 1-2: Summary of the Tshepong Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	12.484	12.13	151,437
Indicated	3.977	10.20	40,575
Total / Ave. Measured + Indicated	16.462	11.66	192,012
Inferred	9.43	10.18	96,037
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	13.762	0.354	4.869
Indicated	4.384	0.298	1.305
Total / Ave. Measured + Indicated	18.146	0.340	6.173
Inferred	10.399	0.297	3.088
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr A Louw, who is Ore Reserve Manager at Tshepong, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 648cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.

Mineral Reserve Estimate

The Mineral Reserves for Phakisa were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Mineral Reserve estimate for Phakisa, as at 30 June 2022, is summarised in Table 1-3.

The QP compiling the Mineral Resource estimate for Phakisa is Ms B Phetlhu, Ore Reserve Manager at Phakisa and employee of Harmony.


Effective Date: 30 June 2022 3


			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

Table 1-3: Summary of the Phakisa Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	3.759	6.98	26,243
Probable	0.176	6.49	1,143
Total (Proved + Probable)	3.935	6.96	27,386


IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	4.144	0.204	0.844
Probable	0.194	0.189	0.037
Total (Proved + Probable)	4.338	0.203	0.880
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Ms B Phetlhu, who is Ore Reserve Manager at Phakisa, and a Harmony employee.
2. Tonnes, grade, and gold content are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content has not taken metallurgical recovery factors into account.
5. Mineral Reserves are reported using a cut-off grade of 791cmg/t determined using a gold price of USD1,546/oz gold.

The Mineral Reserves for Tshepong were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Mineral Reserve estimate for Tshepong, as at 30 June 2022 is summarised in Table 1-4.

The QP compiling the Mineral Resource estimate for Tshepong is Mr A Louw, Ore Reserve Manager at Tshepong and employee of Harmony.

Table 1-4: Summary of the Tshepong Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	4.157	5.15	21,419
Probable	0.336	7.63	2,565
Total (Proved + Probable)	4.493	5.34	23,985
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	4.583	0.150	0.689
Probable	0.371	0.223	0.082
Total (Proved + Probable)	4.953	0.156	0.771
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr A Louw, who is Ore Reserve Manager at Tshepong, and a Harmony employee.
2. Tonnes, grade, and gold content are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content has not taken metallurgical recovery factors into account.
5. Mineral Reserves are reported using a cut-off grade of 650cmg/t determined using a gold price of USD1,546/oz gold.

In the opinion of the QP, given that the Phakisa and Tshepong mines are established operations, the modifying factors informing the Mineral Reserve estimates would at a minimum, satisfy the confidence levels of a Pre-Feasibility Study.

The declared Mineral Reserves are depleted to generate the Tshepong Operation cash flows. The economic analysis of the cash flows displays positive results and are deemed both technically and economically achievable.


Effective Date: 30 June 2022 4


			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

Capital and Operating Cost Estimates

The capital cost estimates for the Tshepong Operations are determined at a corporate level, using the business plan as the basis. The capital costs are associated with major equipment outside the main operating sections which is termed abnormal expenditure (“AE”), infrastructure development, as well as ongoing capital development (“OCD”). Costs associated with the Mining Charter Compliance (“MCC”), as per South Africa’s Social Labour Plan (“SLP”) requirements are also included in the capital estimates.

The capital costs are presented in Table 1-5.

The operating cost estimates for Tshepong Operations are categorised into direct and total costs. The operating cost estimates are shown in Table 1-6.

The capital and operating costs are reported in ZAR terms and on a real basis. The economic analysis, including the capital and operating costs are reported for the period comprising financial year (“FY23”) July – June. Both, the capital and operating estimates are accounted for in the economic analysis of Tshepong Operations. The results of the economic analysis demonstrate positive returns over the LOM.

Permitting Requirements

The permits held by Tshepong Operations are presented in Table 1-7.

Tshepong Operations have the necessary valid permits, administered and managed by various departments, and do not require any additional permits to continue with their mining operations, except for the application which have been submitted to amend the Water Use Applications.

An application to renew and amend water use application was submitted to the respective regulator. The approval for these environmental permits is pending at the effective date of this TRS. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.

There is no material litigation (including violations or fines) against the Company as at the date of this report which threatens its mineral rights, tenure, or operations.

Conclusions

Under the assumptions in this TRS, Tshepong Operations show a positive cash flow over the life-of-mine which supports the Mineral Resource and Mineral Reserve estimates. The mine plan is achievable under the set of assumptions and parameters used.

Recommendations

The gold output can be optimised through improvement of quality of mining and this will result in achieving planned shaft call factor. This impact will be realised through our currently implemented Business Initiative programme that will look at driving quality of mining through measures such as in-stope water controls and better fragmentation during blasting to contain the gold.

Table 1-5: Summary of Capital Cost Estimate for Tshepong Operations


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2030)
AE			302,068
Shaft Projects			227,797
Major Projects			400,470

Total			930,335
OCD			2,565,792
Total (including OCD)			3,496,125


Effective Date: 30 June 2022 5


			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

Table 1-6: Summary of Operating Cost Estimate for Tshepong Operations


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2030)
Mining			14,280,664
Services			4,299,907
Medical Hub / Station			781,819
Engineering			12,794,649


Total Direct Costs			32,157,038
Mine Overheads			1,652,395
Royalties			463,002
Ongoing Capex			2,565,792
Total Cost			36,838,228

Table 1-7: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Environmental Management Programme

FS 30/5/1/2/3/2/1(84)EM

DMRE

16-Apr-10

LOM

Environmental Management Updated

FS 30/5/1/2/2/84MR

DWAFEC

Pending Approval Submitted in 2019

LOM

Water Permit 936B. Harmony. Free State Geduld Mines. Discharge of untreated effluents

B33/2/340/31

DWAFEC

02-Apr-81

LOM

Water Permit 870B. Harmony. Discharge of untreated effluents.

B33/2/340/25

DWAFEC

27-May-91

LOM

Water Permit 1214N. Free State Consolidated Gold Mine. Tshepong, Freddie’s and Phakisa shafts.

B33/2/340/12

DWAFEC

Not indicated.

LOM

Notes: DWAFEC - Department of Water Affairs, Forestry and Environmental Conservation, DWA - Department of Water Affairs.


Effective Date: 30 June 2022 6


			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

2Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS on Tshepong Operations has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the U.S. SEC Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 - Technical Report Summary. The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand the Tshepong Operations, which forms part of Harmony’s activities.

This TRS has been prepared from the following sources of information:

•Harmony Operational Report 2021;

•File 18 (Competency Report) Phakisa Mineral Resource and Reserve Statement FY2023;

•Phakisa Gold Mine 2022 SAMREC Table 1;

•Tshepong Gold Mine 2022 SAMREC Table 1;

•2021 Report to Shareholders; and

•Harmony Mineral Resources and Mineral Reserves Report at 30 June 2021 (“HAR-RR21”).

The TRS was prepared by QPs employed on a full-time basis by the registrant. The QPs qualifications, areas of responsibility and personal inspection of the property are summarised in Table 2-1.

Table 2-1: QP Qualification, Section Responsibilities and Personal Inspections

Qualified Person

Professional Organisation

Qualification

TRS Section Responsibility

Personal Insp.

Mr A Louw

SACNASP

BSc. Hons. (Geohydro)

All Sections (Tshepong)

Full Time

Ms B Phetlhu

SACNASP

BTech. (Geol), M (Eng)

All Sections (Phakisa)

Full Time

This TRS is the first filing of such a document with the SEC and has an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature.


Effective Date: 30 June 2022 7


			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

3Property Description and Location

Section 229.601(b)(96) (3) (i-vii)

The Tshepong Operations comprise two operating underground gold mines namely, Tshepong and Phakisa. Tshepong is a mature, moderate to deep-level underground operation that uses conventional undercut mining, to depths of 2,400m BMD. Phakisa, younger than Tshepong, is a moderate to deep-level underground operation using conventional underground mining methods to depths of 2,427m BMD. The mines utilise the Tshepong, Phakisa and Nyala shafts.

The mines are located in the Free State Province of South Africa, approximately 250km southwest of Johannesburg and 15km to the north of the town of Welkom (Figure 3-1). Tshepong is situated at a latitude of 27°51’56.45”S and longitude of 26°42’45.15”E. Phakisa is situated adjacent to the south of Tshepong, and is located at a latitude of 27°54’1.27”S and longitude of 26°43’30.05”E.

3.1Mineral Tenure

The current mining right for the Tshepong Operations encompasses an area of 10,798.74ha (Figure 3-2). Harmony holds several mining rights in the Free State goldfields which have been successfully converted and executed as new order mining rights, some of which are still to be registered at the Mineral and Petroleum Resources Titles Office (“MPRTO”). The mining right for Tshepong is presented in Table 3-1.

Table 3-1: Summary of Mining Rights for Tshepong Operations

Licence Holder

Licence Type

Reference No.

Effective Date

Expiry Date

Area (ha)

ARMGold / Harmony JV

Mining Right

FS30/5/1/284MR

11-Dec-2007

10-Dec-2029

10,798.74

There are no known legal proceedings (including violations or fines) against the Company which threatens its mineral rights, tenure, or operations.

3.2Property Permitting Requirements

All relevant underground mining and surface permits, and any other permit related to the work conducted on the property have been obtained and are valid.

Harmony has access to all the properties it requires to conduct its current mining activities. The surface lease and surface right areas are sufficient in size and nature to accommodate the required surface infrastructure to facilitate current and planned mining and processing operations.

Harmony monitors complaints and litigation against the Company as part of its risk management systems, policies and procedures. There is no material litigation (including violations or fines) against the Company as at the date of this report which threatens its mineral rights, tenure or operations.


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa


Figure 3-1: Location of Tshepong Operations in the Free State Goldfield


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Figure 3-2: Mineral Tenure for Tshepong Operations


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

4Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

4.1Accessibility

Access to the Tshepong Operations is accessible via the local R70 road between Welkom and Odendaalsrus (Figure 3-1). The area has well-established rail links and an airfield within close proximity.

4.2Physiography and Climate

The mine lease area is flat with an average height of around 1,344m above mean sea level (“masl”). There are no prominent topographical landmarks in the area. The topography has been affected by the presence of slimes dams, waste rock dumps and solid waste disposal sites.

Tshepong Operations are situated in the Free State Goldfield, a semi-arid region with an annual rainfall of between 400mm and 600mm. Local thunderstorms and showers are responsible for most of the precipitation during summer, from October to March, peaking in January. Hail is sometimes associated with thunderstorms.

The seasonal fluctuations in mean temperatures between the warmest and the coldest months vary between an average minimum of 7.7°C in winter to a maximum of 37°C in summer. The month of July is generally the coldest month with the hottest month typically being February.

Tshepong and Phakisa are not restricted by climatic or seasonal variability.

4.3Local Resources and Infrastructure

The surrounding areas of Welkom and Odendaalsrus are well developed in terms of access and mining-related infrastructure, which supports the numerous operational gold mines in the area. The regional infrastructure includes national and provincial paved road networks, power transmission and distribution networks, water supply networks and communication infrastructure.

Tshepong has a twin shaft system with ore and waste being hoisted to surface through the main vertical shaft (Figure 3-2).

Phakisa operates a single vertical shaft for man and materials. Rock is transported from the underground working via a RailVeyorTM system to the Nyala Shaft for hoisting.

The Tshepong and Phakisa ore is transported, by rail, from their respective shafts to the Harmony One Plant in Welkom for processing (Figure 3-2).

Operations are powered by electricity from Eskom Holdings State Owned Company (“SOC”) Limited.


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5History

Section 229.601(b)(96) (5) (i-ii)

5.1Historical Ownership and Development

Phakisa was formerly known as FSG 4, Freddies 4 and Tshepong South. Phakisa development commenced in October 1993 and shaft sinking was started in February 1994. In 1995, shaft sinking was halted on 59 Level due to the prevailing low gold price. Operations at Phakisa recommenced in September 1996 and sinking was completed to 75 Level, before being halted again in 1999.

The Feasibility Study for the initial development of Tshepong was concluded in 1984. Work to establish the site started in September 1984 and, by 1986, shaft sinking was underway. Sinking and equipping of the shaft were completed in 1991, with the mine being commissioned in November 1991.

Harmony acquired Phakisa as part of the acquisition from AngloGold Ashanti’s Free State operations (previously known as Freegold), which completed in September 2003. Sinking and equipping was completed to a depth of 2,427m in 2006.

The Phakisa and Tshepong operations were merged into the Tshepong Operations by Harmony in 2017.

The historical ownership and associated activities related to Tshepong operations are summarised in Table 5-1.

Table 5-1: Summary of Historical Ownership Changes and Activities of Tshepong Operations


Year			Asset History Highlights
Phakisa
1994			Shaft sinking began.
2002			Harmony (as part of a 50:50 joint venture with ARMGold) acquired Phakisa from AngloGold Ashanti.
2003			The Phakisa Shaft Project began development. ARMGold and Harmony merged.
2005			Phakisa shaft completed and shaft equipping underway.
2008			Phakisa started production with full-scale production planned by June 2011.
2009			Five ice plants commissioned, improving ventilation and cooling.
2011			Phakisa reached full production.
2017			Tshepong and Phakisa merged into Tshepong Operations
Tshepong
1984			The Feasibility Study for the Tshepong development section concluded. Site establishment started.
1986			Shaft sinking began.
1991			The Tshepong project was commissioned.
2001			AngloGold announced sale of its assets in the Free State to African Rainbow Metals and Harmony Gold Mining. African Rainbow and Harmony would hold equal joint venture interests, effective January 1, 2002.
2003			Harmony Gold and ARMGold merged.
2004			Tshepong began production and produced 390,747oz Au. Tshepong Sub 55 Decline Project (an extension at depth of the mine from the current shaft bottom to a depth of some 2,200m) was on schedule for completion in July 2006.
2005			Harmony completed 62% of the decline, including 1,500m of rail construction and 700m of the conveyer system.
2006			The mine operated at full capacity and the Tshepong Decline Project had been completed.
2007			Conversion of Harmony's old order mining rights into new order mining rights in terms of the MPRDA, including that for the Tshepong operation.
2008			The Tshepong Sub 66 decline project in a build-up phase, and the Sub 71 Decline project was under development.
2017			Tshepong and Phakisa merged into Tshepong Operations.


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5.2Historical Exploration

Strong linear B-Reef value trends running from Tshepong Mine into Phakisa Mine were identified where an expected value of the area averaged 1291cmg/t. A high level capital exploration drilling project for B-Reef was approved in August 2016 for Phakisa mine. Eight drill holes were planned, totalling of 5,180m at a total cost of ZAR5.5m. The exploration drilling programme was successfully concluded in October 2020, with the planned eight holes drilled in the target area which confirmed the extension of the Tshepong payshoot.

5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous in-situ Mineral Resource estimates for the Tshepong Operations were declared as at 30 June 2021 by Harmony, according to the SAMREC, 2016. The previous Mineral Resource estimates, exclusive of Mineral Reserves, are summarised in Table 5-2 and Table 5-3 for Phakisa and Tshepong, respectively. These have been superseded by the current estimate prepared by Harmony in Section 11 of this TRS.

Table 5-2: Summary of the Previous Phakisa Mineral Resources as at 30 June 2021 (Exclusive of Mineral Reserves)


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	5.676	12.20	69,228
Indicated	7.561	10.99	83,060
Total / Ave. Measured + Indicated	13.237	11.50	152,288
Inferred	26.303	10.80	283,991
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	6.257	0.356	2.226
Indicated	8.335	0.320	2.670
Total / Ave. Measured + Indicated	14.592	0.336	4.896
Inferred	28.994	0.315	9.131

Table 5-3: Summary of the Previous Tshepong Mineral Resources as at 30 June 2021 (Exclusive of Mineral Reserves)


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	3,680	15,88	58 449
Indicated	1,082	16,96	18 361
Total / Ave. Measured + Indicated	4,762	16,13	76 810
Inferred	8,999	10,65	95 795
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	4,056	0,463	1,879
Indicated	1,193	0,495	0,590
Total / Ave. Measured + Indicated	5,249	0,470	2,469
Inferred	9,919	0,310	3,080

The previous Mineral Reserve estimate for Tshepong Operations was declared by Harmony as at 30 June 2021 in accordance with SAMREC, 2016. Modifying Factors were applied to the in situ Mineral Resources to arrive at the Mineral Reserve estimate. The Mineral Reserve estimate represents the ore delivered to the mill. The recovered gold content considers the plant recovery factor. Dilution and modifying factors are based on historic performance.

The previous Mineral Reserve estimate is summarised in Table 5-4 and Table 5-5, respectively. These have been superseded by the current estimate prepared by Harmony as detailed in Section 0 of this TRS.


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Table 5-4: Summary of the Previous Phakisa Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proven	3.900	6.36	24,793
Probable	0.371	6.58	2,445
Total / Ave. Proven + Probable	4.271	6.38	27,238
IMPERIAL
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	4.299	0.185	0.797
Probable	0.409	0.192	0.079
Total / Ave. Proven + Probable	4.708	0.186	0.876

Table 5-5: Summary of the Previous Tshepong Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proven	16,150	5,63	90 979
Probable	4,313	4,28	18 458
Total / Ave. Proven + Probable	20,463	5,35	109 437
IMPERIAL
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	17,802	0,164	2,925
Probable	4,754	0,125	0,593
Total / Ave. Proven + Probable	22,556	0,156	3,518


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5.4Past Production

The annual tonnage, grade and gold production for the Tshepong Operations is presented in Figure 5-1 and Figure 5-2. The reader should note that the Tshepong Operations were reported separately in FY16, FY17. Phakisa and Tshepong results have been combined since 2018.


Figure 5-1: Graph of Past Production – Tonnes and Grade

Figure 5-2: Graph of Past Metal Production


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6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii)

6.1Regional Geology

Tshepong and Phakisa are located on the southwestern margin of the Archean Witwatersrand Basin, one of the prominent gold provinces in the world. The Witwatersrand Basin is an approximately 7,000m thick terrigenous sequence comprising mainly arenaceous and argillaceous, together with minor rudaceous, lithologies deposited in a fluvio-deltaic environment in the centre of the Archaean Kaapvaal Craton of South Africa (Robb and Meyer, 1995). The regional geology of the Witwatersrand Basin is shown in Figure 6-1.

The majority of the Witwatersrand Supergroup is capped by the volcano-sedimentary sequence of the Ventersdorp Supergroup through an angular unconformity. The Ventersdorp Supergroup is in turn overlain by the dolomitic and quarzitic sequence of the Transvaal Supergroup, and sediments of the Karoo Supergroup (Tucker et al., 2016). Several suites of dykes and sills cut across the Archaean basement and the Witwatersrand, Ventersdorp, Transvaal and Karoo supergroups, and form important geological time-markers.

The Witwatersrand Supergroup is sub-divided into the basal West Rand Group (“WRG”) and overlying CRG (Robb and Robb, 1998). The WRG extends over an area of 43,000km2 and is up to 5,150m thick. It is sub-divided in three subgroups, namely, from bottom upwards, the Hospital Hill Subgroup; Government Subgroup and Jeppestown Subgroup. The stratigraphic succession of the WRG mainly consists of shale sediments, with occasional units of banded iron formation and conglomerate.

The CRG is up to 2,880m thick and covers an area of up to 9,750km2, with a basal extent of c.290km x 150km. It is sub-divided into the lower Johannesburg Subgroup and upper Turffontein Subgroup as shown in Figure 6-2. These subgroups are separated by the Booysens Shale Formation. The stratigraphic succession of the CRG comprises coarse-grained fluvio-deltaic sedimentary rocks.

The major gold bearing conglomerates are mostly confined to the CRG, and these conglomerate horizons are known as reefs. The most important reefs within the CRG are at six stratigraphic positions, three within the Johannesburg Sub-group and three within the Turffontein Sub-group. The reefs are mined in seven major goldfields, and a few smaller occurrences, which extend for over 400km in what has been called “The Golden Arc”. This arc is centred on the prominent Vredefort Dome, as shown in Figure 6-1,. which is thought to be a major meteorite impact site in the centre of the Witwatersrand Basin (Therriault et al., 1997). The goldfields, as shown in Figure 6-1, include: East Rand, South Rand, Central Rand, West Rand, West Wits, Klerksdorp, Free State (Welkom), and Evander.

6.2Local Geology

Tshepong and Phakisa are located within the Free State Goldfield (Figure 6-1). The stratigraphic column of the Free State Goldfield is presented in Figure 6-2. The Johannesburg Subgroup comprises the Virginia, St Helena, Welkom, Harmony and Dagbreek formations.

The Free State Goldfield forms a triangle between the towns of Allanridge, Welkom and Virginia. The area is host to several gold mines, all of which produce gold from auriferous bearing reefs situated within sediments of the Central Rand Group of the Witwatersrand Sequence (Figure 6-2). Most of the presently exploitable reefs are situated within five stratigraphically separate placers including the Basal/Steyn, Saaiplaas Leader, B, Kimberley and Eldorado, with the majority of tonnage derived from the Basal/ Steyn and Saaiplaas Leader.

The Witwatersrand and overlying Ventersdorp lavas were deposited in a basin with significant and continual down warping to accommodate the sediments and lavas. During Platburg times, the basin underwent a significant rifting and tilting event, resulting in the region being split by significant faults. These faults are generally westerly dipping, with downthrows to the west, and strata dipping generally to the east.


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Figure 6-1: Regional Geology of the Witwatersrand Basin


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Figure 6-2: Simplified stratigraphy of the Free State Goldfield


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The general orientation of the Witwatersrand Supergroup succession in the Free State Goldfield is interpreted as north-trending within a syncline that is plunging to the north (Figure 6-3). The syncline is cut by two major faults resulting in the formation of three major fault bounded blocks:

•Odendaalsrus Section to the west of the De Bron fault;

•the Central Horst between the De Bron and Homestead faults; and

•the Virginia Section to the east of the Homestead Fault.

The Central Horst was uplifted, and the Central Rand Group rocks eroded away prior to deposition of the Ventersdorp Supergroup and therefore comprises West Rand quartzites. The western margin of the Tshepong Lease is also marked by structures including the Ophir Fault that is bisected into eastern and western portions by a second, the Dagbreek Fault.

A cross section through the fault bounded blocks is presented in Figure 6-4.

6.3Property Geology

The principal gold-bearing orebody is the stratiform and strata-bound Basal Reef (or Basal Reef Zone (“BRZ”)) (Figure 6-2). A secondary reef, the B Reef, lying between 150m and 170m stratigraphically above the Basal Reef, contributes less than 20% to the mining production at Tshepong Mine.

6.3.1Basal Reef Lithology

The Basal Reef comprises a thin conglomerate, overlain by clean ‘placer’ quartzites. The Basal Reef is underlain by a thick series of siliceous and argillaceous quartzites comprising the Welkom Formation and overlain by shales and quartzites of the Harmony Formation, both of the Johannesburg Sub-group of the CRG. The Basal Reef sits unconformably on the Welkom Formation (Figure 6-2).

The Upper Cycle Black Chert facies Basal Reef prevails in the south of the Tshepong area and consists of a slightly polymictic (yellow shale specks present), matrix-supported medium-pebble conglomerate with a more gradational contact absent of carbon, where mineralisation is associated with fine disseminated and buck-shot pyrite. The conglomerate is slightly thicker compared to the Lower Cycle, but is also overlain by barren reef quartzite, the entire package being characteristically up to only 40cm thick. The lower Khaki Shale is up to 1m thicker.

There are two facies of Basal Reef on Phakisa, namely; the Lower Cycle Black Chert facies in the north and the Upper Cycle Black Chert facies in the south. The reef package ranges from 100cm to 160cm thick.

The Lower Cycle Black Chert facies predominates in the north with a northwest / southeast value trend. The reef consists of an oligomictic small pebble matrix-supported conglomerate lag with fly-speck carbon contact. The rest of the reef package constitutes barren siliceous fine-grained reef quartzite. The entire reef package reaches up to 160cm thick and is overlain by 1cm to 30cm of lower khaki shale. This in turn is overlain by the approximately 3-4m thick waxy brown leader quartzite, above which lies the 3-4m thick upper khaki shale.

6.3.2B Reef Lithology

The B Reef at Tshepong occurs approximately 150m stratigraphically (or approximately two production working levels) above the Basal Reef. Consequently, the B Reef is not normally intersected in either Basal Reef development or routine diamond drilling.

The lowest unit is a basal lag (Zone A), overlying Doornkop Quartzite Formation. Where this unit is developed (or preserved), it may be highly mineralised oligomictic or polymictic conglomerate, with visible gold, buckshot pyrite and carbon mineralisation. This unit may carry gold values of many thousands of cmg/t and represents a potentially rewarding exploration target.

The unit overlying the Zone A may be either Zone B, which comprises a mildly erosive pebbly quartzite formation, and/or the stratigraphically younger Zone C, which is a polymictic conglomerate with low values and is erosional into the underlying A and B zones.


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Figure 6-3: Structural Geology of the Free State Goldfields


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Figure 6-4: Tshepong Operations Cross Section
Source: Modified after Tucker et al. (2016)


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The B Reef at Phakisa is located about 170m stratigraphically above the Basal Reef and varies in thickness from 30cm to 170cm. The conglomerate varies in character depending on the facies, with B1 being a small to medium pebble conglomerate and usually no more than 30cm thick with abundant carbon. The B2 facies is a small pebble lag in an argillaceous quartzite, with little to no mineralisation. B3 facies is a 20 to 150cm thick conglomerate, mature, well packed, with pebble sizes varying from small to cobble size, very polymictic, normally with abundant pyrite and some carbon. This is the most common facie

6.3.3Structure

At Tshepong, the Dagbreek Fault that strikes north-south bisects the mine into western and eastern domains. The shaft infrastructure itself is situated largely within the zone of fault loss associated with the Dagbreek Fault (Figure 6-3 and Figure 6-4).

The fault has a variable down throw to the west of approximately 350m, with no significant lateral displacement. It is interpreted as an early compressional structure that has experienced later Platberg age relaxation and subsequent extension. Reef in the eastern domain dips to the east at an average of 23° and extends from 55 Level (1,674m depth) to 66 Level (2,010m depth), which is the lowest working level of the Main shaft. Tshepong is currently developing the Sub 71 Decline Capital Project, which extends access down dip to 75 Level (2,286m depth), the lowest planned working level of the Sub 71 Decline Project.

Relative to the eastern domain, the western domain at Tshepong is more structurally deformed. This is prevalent to the north where major block rotation has occurred resulting in the reef dipping to the west. The structural complexity of this western domain necessitates an intensive, ongoing drilling programme to locate fault bounded reef blocks.

A second structural family of faults and dykes occurs on a NW-SE trend and are thought to be conjugate to and thus of a similar age to the Dagbreek Fault system, but this direction of faults tends to be associated with lateral shifts.

Many faults shown signs of lateral displacement, but the amount of this displacement is often difficult to determine. These faults are typically oriented between N-S and NNW-SSE. Maximum displacement identified thus far is approximately 200m on the Thelma Fault.

At Phakisa, there are several major faults and dykes present interpreted from surface drill holes and intersected in the development and stoping. Among these are the Enrico, Zero, Zindaba, Eland and Savannah Dykes, as well as the Southern and Phakisa Faults. The easterly limit of the ore body is not clearly defined but appears to cut off at approximately 3,000m below surface on a major component of the north-south striking Arrarat Fault.

Two principal age-based divisions in Phakisa’s intrusive structures have been identified, namely; Ventersdorp and post-Ventersdorp eras. Various subdivisions within each of these two categories have also been observed.

Yellow porphyry, acicular and quartz diorite dykes are found in the Ventersdorp suite of intrusives, while Karoo dolerites and lamprophyres occur in the post-Ventersdorp suite of intrusives. These intrusives tend to utilise any plane of weakness in their passage. It is therefore not unusual to find an intrusive infill along the various fault planes and other faults within the mine area. Accompanying gouge material, showing slicken-siding along the contacts of the intrusions, indicates that movement has taken place after these rocks were intruded.


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6.4Mineralisation

The gold mineralisation in the Witwatersrand deposits is believed to have followed an episode of deep burial, fracturing and alteration. The mineralisation model is that Archean gold bearing hydrothermal fluid was introduced into the conglomerates and circulated throughout in hydrothermal cells. The fluids precipitated gold and other elements through reactions that took place at elevated temperatures along the reef horizons, which was the more favourable fluid conduit.

The generic mineralisation model for the Tshepong Basal Reef is based on structurally controlled fluid flow within a conglomerate hosted lithology. Fluid flow is dependent on the permeability of the host rock mass during mineralisation. Fluid flow, permeability and subsequent gold mineralisation are believed to be controlled by four key factors, including:

•chanical stratigraphy;

•the presence or absence of mineralisation age thrust faulting;

•sedimentology; and

•precipitation agent

It is the QP's view, the sedimentological parameters are more influential and predictive for gold distribution on a regional scale.

The gold mineralisation is related to the facies-type, and the mineralisation characteristics within the facies are similar between Tshepong and Phakisa and are hence simply described by facies in the section to follow.

6.4.1Basal Reef

Within the Lower Cycle Black Chert facies, mineralisation is characterised by a fine disseminated interstitial pyrite, together with a carbon contact. Mineralisation is associated with the carbon contact and conglomerate, although some concentration is also found just below the upper reef contact. At the top of the reef is a granular textured often gritty quartzite with fine pyrite stringers about 10cm thick.

In the Upper Cycle Black Chert Facies, mineralisation is associated with the carbon contact and conglomerate, although some concentration is also found just below the upper reef contact. It does not have such a well-developed carbon contact as the Lower Cycle facies and is often of lower grade.

6.4.2B Reef

The B1 facies has abundant carbon and gold as associated with the carbon. The B2 facies has little to no gold mineralisation, while the B3 facies normally has abundant pyrite and some carbon. Free gold is found in association with the flyspeck carbon.

6.4.3Alteration

Alteration is evident in the Basal Reef and B Reef at Tshepong and is a result of the hydrothermal fluids that infiltrated the reef and have overprinted on the original mineral assemblage. The reefs contain authigenic sulphides such as pyrite, and other minerals associated with alteration such as chlorite. Gold associations with these mineral assemblages indicate a strong correlation of gold mobilisation and redistribution at the time of the hydrothermal fluid influx.

While alteration is an important part of the mineralisation, alteration is not used for the identification, modelling or mining of the reefs.

6.5Deposit Type

The Tshepong and Phakisa deposits are classed a meta-sedimentary gold deposit. Folding and basin edge faulting have been important controls for sediment deposition and gold distribution patterns within the Witwatersrand Basin and fold trends have been employed in the economic evaluation of various reef horizons.


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6.6Commentary on Geological Setting, Mineralisation and Deposit

The regional geological setting, local and property geology, mineralisation and deposit-type for Tshepong Operations is well established, through many decades of exploration and mining. Reliable geological models, maps and cross sections are available that support the interpretations and inform the Mineral Resource estimates.


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7Exploration

Section 229.601(b)(96) (7) (i-vi)

Geological data has been obtained through initial surface drilling, followed by underground drilling, mapping and channel (chip) sampling.

Exploration from underground platforms is currently continuing for the Tshepong sub-75 development, to improve geological confidence.

Both, the Phakisa and Tshepong Mines are undergoing B reef exploration drilling to identify any potential continuation of the current pay shoots connecting these mines. Footwall development began at the Tshepong Mine during FY20 and will be used as a drilling platform to confirm and delineate the anticipated B Reef channel.

7.1Geophysical Surveys

Initial exploration included a historical geophysical seismic survey and surface diamond core drilling.

7.2Topographic Surveys

As an underground operation, topographic surveys are not material to the Mineral Resource estimates.

7.3Underground Mapping

Face and reef development mapping is undertaken by a team comprising a Sampler or Geologist, and an assistant. Face tapes are setup along gullies and the stope face and secured with reference to the latest survey pegs installed in the workplaces. Reef position and other lithological and stratigraphic information is collected and measured relative to the reference tapes. The information is captured in a notebook.

Once at surface, the person responsible transfers the information from the notebook into CADSMineTM, where a mapping report is produced for each mapped workplace. The mapping reports depict the geological information graphically relative to the survey measurement points. Data from the mapping is also incorporated into the geological models.

Approximately 80-90% of all workplaces are inspected by member of the Geosciences team monthly to ensure that suitable mapping information coverage is achieved.

7.4Channel Sampling Methods and Sample Quality

Channel sampling of underground panels are carried out on monthly basis. Sampling is conducted perpendicular to the channel contact across the exposed channels. The section lines demarcating the width of the sample are drawn parallel to the reef waste contact while those demarcating the length of the sample are drawn at right angles to the reef waste contact and are marked 10cm apart. The samples are chipped out between these section lines.

Sampling of the Basal Reef stoping channels are undertaken at the advancing face on a grid spacing of 5m x 6m at Phakisa and 5m x 5m at Tshepong. The sampling process is audited monthly and annually by the Geoscience Manager. Development sampling is on a smaller grid at 4m x 4m. Development sampling is done in addition to the face sampling. The results are captured into the information system and plotted on a development sampling sheet.

The location of samples collected from the Basal and B Reef, to date, are shown in Figure 7-1 and Figure 7-2.


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7.5Surface Drilling Campaigns, Procedures, Sampling, Recoveries and Results

Most surface drill holes used in the estimation of the current Mineral Resources were drilled by AngloGold Ashanti, or its forebearers, before Harmony acquired Tshepong Operations.


Figure 7-1: Location of Channel Samples Collected from the Basal Reef


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Figure 7-2: Location of Channel Samples Collected from the B Reef


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7.5.1Drilling Methods

The surface diamond core drilling has been undertaken using a thin-walled core barrel (AXT size core barrel) that delivers 35.51mm core. A single mother hole is drilled, typically with multiple deflection.

The drill grid spacing of the surface drill hole intersections is up to 100m and is often required to be complimented by underground drill hole intersections. The accuracy of the surface drilling intersection positions from drill holes that are from 2,000m to 3,000m in depth is the major limiting factor of achieving the planned grid. Long surface drill holes often deflect and controlling direction over that depth has always been challenging in the South African gold mining context.

7.5.2Collar and Downhole Surveys

The drill holes are surveyed to confirm both collar position and trajectory. Drill hole collar and downhole surveys are conducted on all surface drill holes.

Surface drill hole collars are surveyed by internal Land Survey Department. Underground drill hole collars are checked against layouts issued to diamond drilling.

Downhole surveying is conducted using Electronic Multishot System and non-magnetic north seeking Gyro tools as supplied by a certified and specialised downhole survey company, Digital Surveying (Pty) Limited. The instrument is a magnetic based tool and as such all readings are relevant to magnetic north.

7.5.3Logging Procedures

Upon arrival at the core yard located on-site, drill core is marked at every meter interval. The core is then orientated so that the low point of bedding is coincident with the edge of the angle iron. The cut line is defined by the low point of the bedding at the base of the reef zone, when viewed as per convention, from left to right in the direction of increasing depth, is drawn parallel to the core. The core is then rotated through 90° and a yellow line was then drawn parallel to the core, to define the retention half core.

All drill cores are photographed prior to logging and sampling. The geologist conducts the core logging.

Drill core logging is quantitative and qualitative. The following information is recorded:

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and alteration.

The geologist responsible for logging the core stores the original paper record. Core logging is also stored electronically using both DeswikTM and DatamineTM software. Internal peer reviewing is undertaken on the interpretation of the stratigraphy and spatial correlation of drill holes.

Observations are captured on the diamond drilling database by geologists. The logs are checked by the Senior Geologist prior to sampling. Logging procedures are conducted as per the Harmony company standards, which are used on all underground mines and are best practice and have been in place since 2001.

7.5.4Drilling Results

The location of the surface drill holes intersecting the Basal and B reefs are presented in Figure 7-3 and Figure 7-4. There are no recent surface drilling results (Table 7-1 and Table 7-2), all drilling dates back to previous project owners and is pre 2017. The results have, however, been included into the geological modelling and Mineral Resource estimation process. These drill holes were drilled to a depth of 2,373m below the surface.


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Figure 7-3: Location of Surface and Underground Drill Holes on the Basal Reef


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Figure 7-4: Location of Surface and Underground Drill Holes on the B Reef


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Table 7-1: Summary of Surface and Underground Drilling for Phakisa


Year	Company	No. Drill Holes	Surface (m)	Underground (m)
<2017	Harmony	801	0	26,158
2018	Harmony	129	0	11,081
2019	Harmony	105	0	7,305
2020	Harmony	58	0	4,265
2021	Harmony	113	0	7,190
2022	Harmony	32	0	2,132
Total		1,238	0	58,131

Table 7-2: Summary of Surface and Underground Drilling for Tshepong


Year	Company	No. Drill Holes	Surface (m)	Underground (m)
2015	Harmony	144	0	17,058
2016	Harmony	154	0	18,221
2017	Harmony	155	0	18,358
2018	Harmony	150	0	17,794
2019	Harmony	141	0	16,745
2020	Harmony	149	0	17,656
2021	Harmony	158	0	18,669
2022	Harmony	198	0	21,978
Total		1,249	0	146,479

7.5.5Core Recovery

An intersection is complete and representative if core recovery is greater than 99%. Drill holes with poor recovery are not sampled. Extra caution is taken during the drilling process to ensure maximum core recovery on reef intersections, to prevent sample bias.

Reef intersection “acceptability” is categorised as per the criteria summarised in Table 7-3 and is determined by geologists based on, amongst others, drill core condition and faulting. The acceptability is verified for each reef intersection before the assay results are used for Mineral Resource estimation.

Table 7-3: Drill hole Acceptance Criteria


Category			Comment
Acceptable			100% core recovery in the reef zone, or very minor loss due to reef chipping. No evidence of faulting within the reef horizon or at either contact with hanging wall or footwall lithologies.
Minimum value			Light to moderate disking of core in the core barrel due to drilling and/or ground conditions. Visual observations indicate that the conglomerate portion of the reef is usually more prone to disking, resulting in possible gold loss.
Faulted minimum value			If the fault loss is considered to be minor, this term may be used if the geologist is certain that only low-value internal quartzite is missing from the intersection.
Not acceptable			Heavy disking of core which may indicate core loss, partial known core loss due to grinding. Also faulting of any description within the reef zone.

7.5.6Sample Length and True Thickness

Mineralisation of the reefs is perpendicular to or at an angle to the drill holes. As such, all drill hole reef intersection widths are corrected to true thickness for gold value calculation.


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7.6Underground Drilling Campaigns, Procedures and Sampling

Underground exploration drilling has been ongoing throughout the operational life of Tshepong Operations as the mine deepens. Most of the underground drill holes used in the estimation of the current Mineral Resources were drilled by AngloGold Ashanti before Harmony acquired the mine.

7.6.1Drilling Methods

Underground diamond core drilling is conducted using hydraulic driven and pneumatic drill rigs, which typically delivers an AXT size core (35.51mm). These are short drill holes rarely exceeding 200m in length.

Fans of drill holes are drilled from diamond drilling bays, which are developed at 50m intervals along footwall developments ends (X/Cs) and 100m intervals along haulages and RAWS. The drilling fans consist of up to ten individual drill holes at inclinations ranging from -15° to +30° of vertical, or as dictated by local geological structures.

7.6.2Collar and Downhole Surveys

The drill holes used for reef delineation at Tshepong Operations are surveyed to confirm both collar position and trajectory. Drill hole collar and downhole surveys are conducted on long inclined borehole (“LIBs”) or long vertical boreholes (“LVBs”), as well as on most of the groundwater boreholes (“GBH”) and dewatering boreholes (“DBH”) drilled on the mine.

Surveying of exploration drill holes at Tshepong is outsourced to Digital Surveying (Pty) Limited. All underground drill hole surveys are conducted using an Electronic Multishot Survey instrument. Downhole surveys are conducted on all LIB/LVB drill holes for verification purposes, and the results are submitted together with the primary survey data used to determine the drill hole trajectories and are checked for quality and then captured on Microsoft ExcelTM and transferred to DatamineTM database.

At Phakisa, exploration holes are normally not surveyed as the maximum length of the holes are 120m and stabilisers are used to minimise the risk of deflections. LIBs drilled for the Phakisa Sub 75 Capital Project and the B reef initial drilling project before footwall development was established were all surveyed, including the deflections.

All records received from the survey company are checked for quality and then captured and stored in the electronic databases.

7.6.3Logging Procedures

All drill cores are photographed prior to logging and sampling. The geologist conducts the core logging.

Drill core logging is quantitative and qualitative. The following information is recorded:

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and alteration.


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7.6.4Drilling Results

The location of the underground drill holes intersecting the Basal and B reefs are presented in Figure 7-3 and Figure 7-4.

With over 182,632 Basal Reef and B Reef samples having been taken since 2003, the results are too voluminous to be reported in this report. The results have, however, been included into the geological modelling and Mineral Resource estimation process.

The recent Basal Reef and B Reef underground drilling results for Phakisa are summarised in Table 7-4 and Table 7-5. A total of 32 underground drill holes were drilled in 2022 which included 29 Basal Reef intersections, two Leader Reef (minor reef) and a single B Reef intersection.

A total of 198 underground drill holes were drilled in 2022. The Basal Reef and B Reef underground drilling results for Tshepong for 2022 are summarised in Table 7-6 and Table 7-7.

7..6.5Core Recovery

7.6.6Sample Length and True Thickness

Mineralisation of the reefs is perpendicular to or at an angle to the drill holes. As such, all drill hole reef intersection widths are corrected to true thickness for gold value calculation.

7.7Hydrogeology

Currently no geohydrology holes (water related) drilled in the last five years.

7.8Geotechnical Data

Geological exploration drilling is not typically used to gather geotechnical data – these data are gathered independently by the Geotechnical Engineer. Geotechnical issues related to underground workings are discussed in more detail in Section 13.3.


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Table 7-4: Summary of Recent Phakisa Underground Drill Holes Intersecting the Basal Reef


Year	Drill Hole ID	Gold Value (cmg/t)	Ave. Channel Width (cm)	Year	Drill Hole ID	Gold Value (cmg/t)	Ave. Channel Width (cm)	Year	Drill Hole ID	Gold Value (cmg/t)	Ave. Channel Width (cm)
2021	CDD 2050	752	28	2021	GDD 2166	399	93	2021	GDD 2259	332	116
2021	CDD 2054	124	37	2021	GDD 2167	1,014	47	2021	GDD 2260	862	134
2021	CDD 2141	528	35	2021	GDD 2169	219	38	2021	GDD 2260	739	117
2021	CDD 2177	2,486	212	2021	GDD 2170	927	59	2021	GDD 2265	77	49
2021	CDD 2177	4,123	170	2021	GDD 2172	173	44	2021	GDD 2267	127	24
2021	GDD 1894	409	159	2021	GDD 2173	682	60	2021	GDD 2271	1,841	232
2021	GDD 2021	3,043	277	2021	GDD 2175	2,264	136	2021	GDD 2272	2,782	40
2021	GDD 2028	301	45	2021	GDD 2176	1,021	212	2021	GDD 2273	359	32
2021	GDD 2036	1,108	36	2021	GDD 2178	1,352	198	2021	GDD 2277	1,184	60
2021	GDD 2062	1,358	52	2021	GDD 2183	324	54	2021	GDD 2286A	5,239	130
2021	GDD 2064	1,862	125	2021	GDD 2184	1,015	46	2021	GDD 2287	844	144
2021	GDD 2065	2,139	44	2021	GDD 2185	1,091	88	2021	GDD 2288	966	37
2021	GDD 2066	522	44	2021	GDD 2186	1,277	139	2021	GDD 2289	376	43
2021	GDD 2071	222	47	2021	GDD 2188	725	39	2021	GDD 2291	1,237	41
2021	GDD 2079	870	31	2021	GDD 2189	643	59	2021	GDD 2294	580	194
2021	GDD 2080	1,912	39	2021	GDD 2190	2,192	31	2021	GDD 2295	3,862	295
2021	GDD 2087	874	127	2021	GDD 2195	619	35	2021	GDD 2300	1,082	123
2021	GDD 2093	1,197	46	2021	GDD 2196	1,486	24	2021	GDD 2309	5,614	121
2021	GDD 2095	347	41	2021	GDD 2197	335	48	2022	CDD 2318	1,965	59
2021	GDD 2096	693	43	2021	GDD 2199	785	131	2022	GDD 2268	2,315	37
2021	GDD 2098	4,237	30	2021	GDD 2200	666	143	2022	GDD 2274	1,879	42
2021	GDD 2101	1,223	40	2021	GDD 2202	302	46	2022	GDD 2276	2,731	67
2021	GDD 2104	3,384	48	2021	GDD 2203	186	49	2022	GDD 2292	1,263	41
2021	GDD 2105	2,128	35	2021	GDD 2205	211	31	2022	GDD 2298	3,479	43
2021	GDD 2106	1,370	128	2021	GDD 2206	874	32	2022	GDD 2302	1,500	39
2021	GDD 2108	52	48	2021	GDD 2207	141	18	2022	GDD 2310	2,568	37
2021	GDD 2110	522	34	2021	GDD 2208	336	42	2022	GDD 2311	2,089	38
2021	GDD 2111	3,856	36	2021	GDD 2209	985	122	2022	GDD 2312	658	48
2021	GDD 2114	362	39	2021	GDD 2210	749	124	2022	GDD 2313	397	47
2021	GDD 2118	965	38	2021	GDD 2211	1,266	120	2022	GDD 2316	2,625	115
2021	GDD 2119	656	54	2021	GDD 2213	1,435	44	2022	GDD 2326	400	23
2021	GDD 2123	1,051	39	2021	GDD 2215	854	334	2022	GDD 2333	943	140
2021	GDD 2125	3,072	52	2021	GDD 2216	1,264	197	2022	GDD 2335	629	44
2021	GDD 2126	637	38	2021	GDD 2222	425	184	2022	GDD 2336	2,625	46


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2021	GDD 2129	7,587	56	2021	GDD 2225	1,024	30	2022	GDD 2337	367	21
2021	GDD 2130	666	56	2021	GDD 2228	971	194	2022	GDD 2341	5,139	43
2021	GDD 2131	157	47	2021	GDD 2229	963	49	2022	GDD 2356	223	111
2021	GDD 2136	581	91	2021	GDD 2230	843	40	2022	GDD 2357	510	165
2021	GDD 2138	204	43	2021	GDD 2230	843	40	2022	GDD 2363	822	113
2021	GDD 2145	434	22	2021	GDD 2234	879	46	2022	GDD 2368	1,450	50
2021	GDD 2146	1,257	30	2021	GDD 2236	1,964	104	2022	GDD 2372	1,187	33
2021	GDD 2147	255	53	2021	GDD 2239	374	37	2022	GDD 2375	1,930	333
2021	GDD 2148	257	41	2021	GDD 2243	1,221	172	2022	GDD 2384	2,959	58
2021	GDD 2149	149	96	2021	GDD 2244	1,592	148	2022	GDD 2386	Faulted	56
2021	GDD 2157	1,339	43	2021	GDD 2250	1,448	68	2022	GDD 2387	685	169
2021	GDD 2159	1,604	30	2021	GDD 2251	8,521	56	2022	GDD 2394	1,613	57
2021	GDD 2160	3,890	42	2021	GDD 2252	50	129	2022	GDD 2400	337	40
2021	GDD 2161	721	37	2021	GDD 2258	6,266	73

Table 7-5: Summary of Recent Phakisa Underground Drill Holes Intersecting the B Reef


Year	Drill Hole ID	Gold Value (cmg/t)	Ave. Channel Width (cm)
<2017	GDD1357	670	169
<2017	HBD1368A	36	162
2018	HBD 1368	2	29
2018	HBD 1368	36	162
2022	GDD 2296	38	47


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

Table 7-6: Summary of Recent Tshepong Underground Drill Holes Intersecting the Basal Reef


Year	Drill Hole ID	Gold Value (cmg/t)	Ave. Channel Width (cm)	Year	Drill Hole ID	Gold Value (cmg/t)	Ave. Channel Width (cm)
2022	Gbh8145	190	103	2022	Gbh8481	307	25
2022	Gbh8180	61	118	2022	Gbh8482	1,203	9
2022	Gbh8223	40	112	2022	Gbh8483	57	17
2022	Gbh82256	39	55	2022	Gbh84881st	479	28
2022	Gbh8325	476	8	2022	Gbh84882nd	329	23
2022	Gbh8326	462	12	2022	Gbh8494	97	15
2022	Gbh8336	440	26	2022	Gbh8495	187	24
2022	Gbh8353	35	24	2022	Gbh8499	277	23
2022	Gbh8360	14	14	2022	Gbh8507	201	20
2022	Gbh8361	362	25	2022	Gbh8521	252	26
2022	Gbh8364	770	22	2022	Gbh8524	259	15
2022	Gbh8375	240	21	2022	Gbh8528	287	14
2022	Gbh8388	566	20	2022	Gbh8529	341	13
2022	Gbh8397	1,586	20	2022	Gbh8530	758	19
2022	Gbh8402	423	16	2022	Gbh8539	2,635	23
2022	Gbh8404	163	55	2022	Gbh8541	328	13
2022	Gbh8408	34	22	2022	Gbh8548	1,275	19
2022	Gbh8410	24	17	2022	Gbh8559	1,394	19
2022	Gbh8410	24	17	2022	Gbh8577	181	16
2022	Gbh8418	1,272	14	2022	Gbh8589	190	14
2022	Gbh8419	1,436	20	2022	Gbh8590	2,616	37
2022	Gbh8421	47	24	2022	Gbh8594	820	13
2022	Gbh8422	676	15	2022	Gbh8600	1,382	21
2022	Gbh8424	142	25	2022	Gbh8601	1,349	14
2022	Gbh8428	348	24	2022	Gbh8602	774	11
2022	Gbh8430	514	23	2022	Gbh8612	310	15
2022	Gbh8430	886	20	2022	Gbh8614	610	11
2022	Gbh8446	342	35	2022	Gbh8627	1,289	16
2022	Gbh8446	269	18	2022	Gbh8628a	1,070	15
2022	Gbh8447	1,027	16	2022	Gbh8639	216	13
2022	Gbh8450	370	15	2022	Gbh8640	219	24
2022	Gbh8453	320	15	2022	Gbh8641	96	17
2022	Gbh8455	261	21	2022	Gbh8657	429	20
2022	Gbh8456	7	23	2022	Gbh8658	332	18
2022	Gbh8462	218	34	2022	Gbh8664	125	26
2022	Gbh8465	120	21	2022	Gbh8668	71	17
2022	Gbh8467	32	8	2022	Gbh8677	1,515	11
2022	Gbh8468	81	11	2022	Gbh8692	366	26
2022	Gbh8476	852	19	2022	Gbh8693	510	22
2022	Gbh8479	141	24	2022	Gbh8701	198	27
2022	Gbh8480	133	23


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

Table 7-7: Summary of Recent Tshepong Underground Drill Holes Intersecting the B Reef


Year	Drill Hole ID	Gold Value (cmg/t)	Ave. Channel Width (cm)	Year	Drill Hole ID	Gold Value (cmg/t)	Ave. Channel Width (cm)
2022	Gbh8270	93	148	2022	Gbh8534	425	197
2022	Gbh8287	1,073	270	2022	Gbh8543	68	141
2022	Gbh8305	748	138	2022	Gbh8544	652	321
2022	Gbh8333	35	113	2022	Gbh8545	406	235
2022	Gbh8334	888	320	2022	Gbh8546	973	9
2022	Gbh8336	1,290	38	2022	Gbh8549	250	55
2022	Gbh8342	555	99	2022	Gbh8562	75	136
2022	Gbh8343	872	169	2022	Gbh8569	96	51
2022	Gbh8345	373	106	2022	Gbh8572	151	75
2022	Gbh8348	1,384	103	2022	Gbh8575	32	234
2022	Gbh8350	573	121	2022	Gbh8579	124	127
2022	Gbh8354	208	127	2022	Gbh8581	161	305
2022	Gbh8355	639	90	2022	Gbh8582	595	288
2022	Gbh8362	362	98	2022	Gbh8591	428	119
2022	Gbh8372	541	34	2022	Gbh8595	1,115	52
2022	Gbh8377	424	108	2022	Gbh8596	117	.76.60
2022	Gbh8384	163	126	2022	Gbh8596A	56	220
2022	Gbh8385	86	105	2022	Gbh8598	4,254	193
2022	GBh8394	410	120	2022	Gbh8599	259	113
2022	Gbh8395	1,862	125	2022	Gbh8604	106	178
2022	Gbh8400	375	119	2022	Gbh8606	96	49
2022	Gbh8416	720	124	2022	Gbh8619	139	336
2022	Gbh8420	1,451	149	2022	Gbh8629	76	116
2022	Gbh8429	47	59	2022	Gbh8630	275	119
2022	Gbh8432	492	145	2022	Gbh8631	284	92
2022	Gbh8436	615	130	2022	Gbh8634	192	105
2022	Gbh8437	221	117	2022	Gbh8635	10	40
2022	Gbh8438	55	110	2022	Gbh8638	750	109
2022	Gbh8440	897	143	2022	Gbh8642	149	161
2022	Gbh8450	281	112	2022	Gbh8644	111	132
2022	Gbh8459	1,068	150	2022	Gbh8647	31	177
2022	Gbh8471	1,497	84	2022	Gbh8662	449	49
2022	Gbh8473	521	229	2022	Gbh8670	566	54
2022	Gbh8484	138	228	2022	Gbh8676	54	32
2022	Gbh8496	305	368	2022	Gbh8679	5,761	165
2022	Gbh8497	359	197	2022	Gbh8686	1,784	87
2022	Gbh8502	2	25	2022	Gbh8690	21,009	42
2022	Gbh8522	9	41	2022	Gbh8691	1,751	110
2022	Gbh8526	288	247	2022	Gbh8709	7,795	102
2022	Gbh8533	91	189

7.9Commentary on Exploration

Logging procedures are conducted as per the Harmony company standards, which are used on all surface and underground mines and are best practice and have been in place consistently since 2001.

The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to support the estimation of Mineral Resources and Mineral Reserves.


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

8Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

This section summarises information relating to the sample preparation on site through to the laboratory preparation and analysis. Tshepong and Phakisa have very similar sampling procedures. Therefore, they are described together in the sections to follow, with only their differences being highlighted.

8.1Sampling Method and Approach

Sample types used to support both production and geological exploration include diamond drill core samples and channel (chip) samples.

8.1.1Channel Samples

Channel sampling is undertaken according to industry best practice, as well as according to Harmony’s Underground Sampling Procedure.

Phakisa’s standard is to achieve 100% stope sampling coverage by sampling at 5m intervals along dip and strike, thus creating a 5m x 5m grid. Tshepong sampling grid in the Basal Reef stoping is a 5m interval on a 6m grid.

For 100% development coverage on Tshepong and Phakisa, the full extent of the on-reef development must be sampled on one sidewall every 4m. Due to the high nugget effect and variability associated with B Reef, these intervals may be increased where appropriate (currently 2m interval).

Samples are chipped from the advancing face from within clearly measured and marked channel sections, including the 2cm hanging wall and footwall width. Sample widths are measured at right angles to the dip of the reef. Individual sample widths are measured from bottom to top along the two parallel lines. Two clino-rules are used for measuring the sample widths. One ruler is held horizontally with the sprit level on strike, and another held at right angles to the dip. The two rulers must cross each other at right angles. The face measured must agree with the totals of all individual widths. All measurements are made to the nearest centimetre.

The channel and sample lines are chipped out using a standard chisel and mallet, bagged, labelled with a unique sampling number, and sealed. An adequate mass of each sample is collected to allow sufficient sized aliquots to be analysed at the designated laboratory. The minimum sample weight sent for assay is approximately 300g.

Samples are weighed and submitted to the designated laboratory for analyses. All inter-person transfers are recorded. This process continues until the samples have been submitted to the laboratory.

8.1.2Core Samples

Diamond drill core is transported to the on-site storage facility under the supervision of a Senior Geologist. Upon arrival, the core is logged and sampled according to the internal Harmony Drill hole Sampling Procedure.

Pertinent data captured during sampling includes sample width (cm), mass, core lithological intersection angles and a detailed visual description of the reef. The data is recorded in the drill hole database together with the unique sample number, collection date and spatial location.

All samples are assessed for quality and signed-off by the Senior Geologist for completeness and auditability, prior to laboratory dispatch.


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8.2Density Determination

The relative density of samples was determined through the work conducted by the Harmony Free State central office regarding relative densities on the various shafts since August 2009.

More recently (2020), a total of 40 samples were taken from underground workings including hanging wall, reef and footwall samples. The dry mass and the submerged mass of the samples in water were measured and the density was calculated.

Tests have occasionally been conducted thereafter on samples collected from the working places.

A single relative density of 2.72 is used for Mineral Resource estimates.

8.3Sample Security

Chip samples are bagged, sealed and delivered by the samplers to the onsite coreyard on the same day as they are collected. The core yard is a secure facility with access control measures in place. Samples are delivered to the laboratory by the mine.

Cores are delivered to the core yard at the end of each day’s drilling for secure storage. Sampling only takes place at the core yard. The samples are bagged and sealed and stored until they are delivered to the laboratory.

The sample labels are scanned at the designated laboratory and the batches compared to the submitted sample sheets. The scanned bar codes are kept at the laboratory and compared to the work sheets that are automatically created on the system. Sample lists submitted by the mine are used to compare what is received at the laboratory.

8.4Sample Storage

8.5Laboratories Used

All samples are currently sent to the Harmony Assay Laboratory located in Welkom for preparation and assay. The laboratory is ISO/IEC 17025:2017 certified for chemical analysis by the South African National Accreditation System (Accreditation No. T0520). Harmony Assay Laboratory is however not an independent laboratory.

8.6Laboratory Sample Preparation

Upon receipt, the samples are dried, crushed, and milled to the appropriate size. Routine screen tests on pulps by the assay laboratory are used to check comminution of samples to contract specification. The contract specification is that the comminution should be 80% passing 75µm for Tshepong and 80% passing 75µm for Phakisa.

The total percentage mass loss on each sample should not exceed 2%.


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8.7Assaying Methods and Analytical Procedures

For the period 1 January to 30 June 2022 , Phakisa submitted a total of 33,832 samples for analysis of gold and Tshepong submitted 102,828. Gold is analysed by fire assay with a gravimetric finish, while uranium is analysed by XRD. For a period ranging from 2010 up to March 2020, the development and drill hole reef samples were also assayed for uranium.

After the preparation stage the samples are packed into trays and transported to the fluxing-room. A catch weight aliquot of ±25g and a flux aliquot of ±100g is placed into a fire assay crucible and thoroughly mixed. The samples are then transferred to the ovens for the fusion process. The cupellation process is where the precious metals are collected in a lead button and then separated from the lead by means of oxidation fusion. The gold prill is then added to a nitric acid solution to dissolve the silver and thereafter the remaining gold prill is weighed to determine its mass relative to the original sample mass.

To ensure that a high standard of analysis is maintained, each step of the analytical process and procedure,

including the adherence to safety standards, is checked by a supervisor.

8.8Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

The assessment of assaying accuracy and precision is carried out using certified Standard Reference Materials (“SRM”), blanks and duplicates. SRMs, blank samples and duplicate samples are added with the underground chip sample and drill hole core sample streams prior to being sent to the assay laboratory.

In addition, regular audits of the laboratory processes and facilities are conducted by mine evaluators and regional experts to monitor compliance and quality controls.

8.8.1Standards

A range of SRMs were sourced from African Minerals Standards (“AMIS”) and inserted into the sample sequence by the logging geologist.

For analysis of surface and underground drill holes, a minimum of one gold SRM is required for every 20 drill hole samples assayed. This equates to approximately 5% of the total drill hole samples analysed for Tshepong, and approximately 6% for Phakisa.

If the SRM or blank sample has been deemed to have failed, the entire batch of samples re-assayed with the failed QAQC sample having to be identified. A request must then be sent to the laboratory requesting the laboratory to repeat the assay procedure on all samples within the batch.

A total of 776 SRMs were submitted to Harmony Assay Laboratory for Phakisa between January 2021 and June 2022. The results are summarised in Table 8-1. Three out of 776 samples (0.4%) failed, and the respective sample trays deleted from the system and do not form part of model.

Table 8-1: Summary of Harmony Assay Laboratory SRM Performance for Phakisa


Quality Control Material Type	No. of Samples Submitted	No. of Failed Samples	Action Taken
AMIS0685	233	1	Second tray accepted.
AMIS0694	543	2	Two trays discarded, three warnings.
Total	776	3


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

A total of 1,005 SRMs were submitted to Harmony Assay Laboratory for Tshepong between January 2021 and June 2022. The results are summarised in Table 8-2 A total of 11 (1%) SRMs failed, and the respective sample trays deleted from the system and do not form part of model.

Table 8-2: Summary of Harmony Assay Laboratory SRM Performance for Tshepong


Quality Control Material Type	No. of Samples Submitted	No. of Failed Samples	Action Taken
AMIS0428	190	3	Failed samples were queried from the lab and re-assays were requested. If the re-assays failed the sample sheet was deleted from the system.
AMIS0455	256	5
AMIS0460	229	3
AMIS0685	245	0
AMIS0694	47	0
AMIS0764	38	0
Total	1,005	11

8.8.2Blanks

A total of 967 coarse blank samples were submitted to Harmony Assay Laboratory during January 2021 to June 2022 for Phakisa and 1,346 were submitted for Tshepong. The lowest detection limit at the laboratory is 0.063g/t.

For Phakisa, 1,346 blank samples were analysed. The control chart for performance indicated that 147 outliers (results outside two standard deviations) were observed. Only four of the 147 samples plotted outside the 3x detection limit. For Tshepong, 20 samples plotted outside the 3x detection limit.

Failed samples were queried from the lab and re-assays were requested. If the re-assays failed the sample sheet was deleted from the system.

8.8.3Duplicates

For the samples analysed at Harmony Assay Laboratory during January 2021 to June 2022, results of duplicate analysis indicated correlation at lower grades. A total of 704 duplicate samples were analysed for Phakisa and, out of the analysis, a total of 318 samples (45%) were outside the average required mean value. Tshepong analysed 1,201 duplicates with a total of 376 samples outside the limit (31%).

Failures were queried during the central QA/QC meetings held every six months.

8.9Comment on Sample Preparation, Analyses and Security

In the opinion of the QP that:

•the drill core sampling method is appropriate for the mineralisation styles encountered at Tshepong Operations;

•all underground chip sampling is representative of the channel sampled;

•the sample preparation, security and analytical procedures followed for gold grade determination are adequate; and

•the results of the QAQC assessment have been appropriately addressed to ensure that the assay results of the primary samples are adequate for Mineral Resource estimation.


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

9Data verification

Section 229.601(b)(96) (9) (i-iii)

9.1Databases

The Tshepong Operations drill hole and underground channel sampling data was previously captured and stored in AuBIS electronic database. Upon acquisition of the mine, Harmony has migrated to data capture in the GMSITM system.

Geological core logging is stored using both Deswik CADTM (“Deswik”) and DatamineTM Fusion (“Datamine”). This database is protected through administration rights allocated to an authorised administrator.

9.2Data Verification Procedures

Data verification procedures included the following:

•the drill hole database was checked against the original logs;

•the database was integrated with DeswikTM and DatamineTM software to check for missing collar coordinates, collar position and elevation errors, downhole survey errors, interval errors and duplicate sample records;

•when assay results were returned from the laboratory, they were captured into the electronic database by the Senior Evaluator and Geologist. The QC sample results were assessed for performance before the primary sample results could be used for Mineral Resource estimation;

•the primary assay results captured in the database were validated by spot checking a selection of drill holes used in the current Mineral Resource estimate; and

•the assays captured in the electronic database were checked against the original laboratory certificates.

The QP did not identify any critical errors in the database.

9.3Limitations to the Data Verification

Previous data has been verified through various methodologies i.e. a “post plot” of all sample points relative to the mine workings are made in order to locate any co-ordination errors. When “manual” capturing (re-digitising old assay tracings) of data occurs, there is a risk that entire sample sheets may plotted incorrectly due to the use of incorrect projections and or scales/ constants. All co-ordination errors are identified and corrected.

9.4Comment on Data Verification

The QP is of the opinion that the Phakisa and Tshepong drill hole and sample databases are reliable and adequate for the purposes Mineral Resource estimation.


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10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

The Harmony One plant and its processing facility have been in operation since 1986, as such the mineral processing method is considered well established for the style of mineralisation processed.

The most recent mineralogical test work done was in June 2020 (Mineralogical Report 19/699 and 19/648). The main objective of the investigation was to understand the mode of occurrence of the minerals present in samples that may influence lower recoveries of gold in the sample.

10.1Extent of Processing, Testing and Analytical Procedures

The mineralogical investigation consisted of head chemical analysis, X-ray diffraction (“XRD”) analysis, scanning electron microscope (“QEMSCAN”) analysis and heavy liquid separation (“HLS”). Each HLS fraction underwent automated mineralogical analysis by QEMSCAN (concentrate/sinks). The mineralogical investigation involved determining the gold species and their occurrence in the samples, including gold grain size distribution, liberation and association.

From the two submitted samples, a representative aliquot of each sample was sub-sampled for chemical analysis, mineralogical analysis and HLS. The aliquots were pulverised and homogenised for XRD analysis and chemical analysis. The unpulverised portion was prepared into polished section for quantitative evaluation of minerals by QEMSCAN analysis and the other unpulverised 1kg of each sample was subjected to HLS.

10.2Test Results and Recovery Estimates

The chemical analysis of Beatrix Reef feed samples shows that they have a gold grade of 5.1g/t. The results also shows that in relation to major element concentrations, samples are dominated by quartz (SiO2 - c.87%) and aluminium oxide (Al2O3 - 4,2%) with minor to trace concentrations of potassium oxide (K2O), iron oxides (Fe2O3), magnesium oxide (MgO), loss on ignition (“LOI”) and calcium oxide (CaO) observed (<3%). These results suggest that the sample is composed of aluminium-silicate minerals (e.g., quartz, pyrophyllite, feldspar, chlorite and mica); limited to negligible concentrations of sulphides and carbonates and/or clays can be inferred from the relatively low LOI value of <2%.

Native gold is the only gold species detected in the two samples. From the bulk modal analysis, the presence of pyrite and carbonates were observed; these are known to be the reagent and oxygen consumers. Quartz was found to be the major mineral in the feed samples, with minor amounts of iron oxide minerals, mica, chlorite and pyrophyllite. However, most of the gangue minerals were upgraded to the floats fraction during HLS.

The trace mineral search (“TMS”) bulk mineral composition shows that the Basal Reef is 1.11% of the mass with pyrite as the main sulphide mineral at greater than 70% of the mass in all samples. The grains size distribution of the reefs from the Tshepong Operations range IS <75μm. In general, the grain size distribution of gold grains is erratic. It is based on the premise that the phases of primary interest i.e., target phases, have a higher back-scattered electron brightness than the bulk of the gangue phases. This enables each block to be scanned for particles containing the target phase, and only those of interest are fully analysed. As the entire block is scanned, this also produces the highest possible statistical population for the trace phase.

10.3Degree of Representation of Mineral Deposit

The two samples used were representative of the reef as the type of gold mineralization was similar. The recoveries were both in the order of 96%.

10.4Commentary of Mineral Processing and Metallurgical Testing

The metallurgical test work showed the potential to upgrade the ore through HLS. Notwithstanding there being insufficient material mass of Beatrix Reef to conduct gold fire assays, the QEMSCAN data showed that there was an upgrading of the gold grains. The QEMSCAN data further showed that most gold grains are associated with the sulphides.

It is a particularly useful analysis method for determining losses of sulphides and precious metal phases to silicate-rich tails. The process efficiency was determined to have total gold recovery typically ranging c.95% - 97% and gold not dissolved, typically c.4 %.


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The testwork was representative of the ore being treated at Phakisa and Tshepong.

The reader is referred to the Modifying Factors for the Phakisa Mine in Section 12.1.2 and for the Tshepong Mine in Section 12.2.2, respectively, which contain the recoveries used for the LOM Plans for Tshepong Operations. A detailed description of the processing facilities is provided in Section 14.


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

11Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

The current Mineral Resources for Tshepong Operations have been estimated using DatamineTM Studio 3 (“Datamine”) modelling software, which is linked to a customised scripting menu. This scripting menu allows for professional and easy managing of the data and building of geostatistical models.

The narrow-tabular nature of the reefs lends themselves to the estimation of grade and thickness in two-dimensional (“2D”) block models, without the requirements for geological wireframes. An independent process of building a set of three-dimensional (“3D”) wireframes of the structural interpretation to inform mine planning and the Mineral Reserve estimates is also undertaken.

The estimation method used for Measured Mineral Resource estimates at Tshepong Operations is ordinary kriging (“OK”), while simple macro kriging (“SMK”) is used for Indicated and Inferred Mineral Resource estimates.

11.1Geological Database

The Tshepong Operations Mineral Resource estimate is based on the surface and underground exploration data obtained up to 30 December 2021. The database was exported from the electronic database to DatamineTM modelling software.

The Basal Reef validated database contains a total of 580,251 surface and underground drill holes and 511,974 underground channel (chip) samples. The B Reef validated database contains a total of 44 661surface and underground drill holes, and 40,194 underground channel (chip) samples which is approximately 90% of the B Reef database.

11.2Global Statistics

Histograms and statistics of the raw data are calculated for each geological domain for comparison purposes. The Coefficient of Variation ("COV"), calculated by dividing the standard deviation with the mean, gives a measure of the variability of the data. A high COV (>1) represents highly variable or highly skewed data, which may require some form of capping of extreme values to lower the COV to a more reasonable value (c.1).

The global statistics for the Basal and B reefs, reported according to geozones, are provided in Table 11-1.


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Table 11-1: Global Statistics for Basal and B Reef


Reef / Geozone	No. Samples	Minimum (cmg/t Au)	Maximum (cmg/t Au)	Mean (cmg/t Au)	Variance	SD (cmg/t Au)	COV
Basal Reef
1	3,321	0.700	7,376	642	355,113	596	0.928
2	71,156	0.000	32,511	984	1,170,071	1,082	1.099
3	157,370	0.140	6,154	1,538	1,694,660	1,301	1.007
4	14,853	1.000	13,066	693	488,847	699	1.008
5	131,692	0.000	33,878	1,245	1,362,041	1,167	0.939
6	58,947	0.000	32,215	876	762,282	873	1.002
7	29	18.000	1,528	270	71,167	267	0.990
8	34,761	1.000	5,140	1,940	2,400,198	1,549	0.799
9	18,756	1.000	33,943	885	874,028	935	1.018
10	38,937	4.000	29,497	1,388	1,900,293	1,379	0.836
11	3,866	1.000	7,762	2,532	3,937,062	1,984	0.784
12	46,559	4.000	3,956	1,303	853,670	924	0.709
13	4	525.000	1,218	967	70,255	265	0.274
B Reef
1	702	1.000	26,112	894	3,884,147	1,971	2.204
2	1,653	1.000	10,438	1,088	41,429,837	1,196	1.099
3	4,966	0.400	61,987	783	4,107,208	2,027	2.578
4	21,026	0.400	132,352	1,670	13,480,252	3,672	2.456
5	5,925	0.800	132,958	1,487	22,351,094	4,728	3.180
6	4,832	0.300	367,721	2,126	213,990,934	14,628	6.880
7	3,769	0.900	127,457	5,154	67,178,797	8,196	1.579
Total	623,124

11.3Geological Interpretation

The imported data is attributed to geological domains or geozones. Geozones are selected based upon continuity in facies type, as well as gold grade and channel width distribution. Geozones may be constrained by geological structures. Geozones are identified for both the Basal and B reefs.

The Basal Reef is continuous over both Tshepong and Phakisa, and a single model is created across both mines. The area is divided into 13 geozones. The B Reef only occurs at Tshepong Mine and has been divided into a series of six geozones. The geozones for both reefs are presented in Figure 11-1.

Geozones are continuously updated based on geological information, new sampling and drilling results. Any proposed changes to the geozones are presented to the geostatistical team for approval and signed off.

11.4Structural Wireframe Model

The geological structure is interpreted by means of series of 1:1,000 structural plan overlays. These plans are vertical projections of the reef plane showing base-of-reef strike lines at 10m intervals based on elevations below datum. Interruptions in the continuity of the reef are marked by fault-reef cut-offs illustrating the loss or gain of ground and with displacement measured as vertical stratigraphic throws. Known or suspected lateral shifts are also illustrated.

A set of 3D structural wireframes is generated, representing the geological interpretation for each reef. This is informed by the geological drilling, chip sampling and underground geological mapping and is created in Datamine™ to allow subsequent mine design and planning to take cognisance of the latest geological information. These wireframes are not required for the Mineral Resource estimates.

11.5Compositing

The drill hole and chip samples are composited over the full length of the reef intersection.


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11.6Capping

Outlying values (both for cmg/t and channel width) are calculated per domain at an optimal percentile using the “QUANTILE” process. The capping allows for meaningful Semi-Variogram modelling and avoids potential over-estimation due to extreme sample values. The capping values applied are shown in Table 11-2.

11.7Variography

The experimental semi-variogram is a descriptive statistical diagnostic tool for spatially characterizing regionalized variables. The semi-variogram is a mathematical function that describes how the spatial continuity of the sampled attribute changes as a function of distance and orientation.

Either an isotropic or an anisotropic model can be defined, comprising a nugget variance and up to nine individual structures, although it is rarely necessary to include more than three structures. Each structure may be either spherical, power, exponential, Gaussian or De Wijsian, although spherical models are deemed adequate for Tshepong and Phakisa. Point-support semi-variograms are modelled for the Measured Mineral Resources; 60m x 60m declustered-support semi-variograms are modelled for the Indicated Mineral Resources and 120m x 120m declustered-support semi-variograms are modelled for the Inferred Mineral Resources.


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa


Figure 11-1: Tshepong Operations Basal and B Reef Geozones


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Table 11-2: Capping Values by Reef and Geozone


Geozone	Gold Cut (cmg/t) (Max)	CW Cut (cm) (Max)	Geozone	Gold Cut (cmg/t) (Max)	CW Cut (cm) (Max)
Basal Reef			B Reef
1	1,748	20	1	7,204	170
2	4,023	123	2	4,515	215
3	6,154	137	3	4,907	232
4	1,807	20	4	9,923	219
5	4,474	28	5	10,510	199
6	3,226	28	6	15,433	172
7	1,528	32	7	28,606	216
8	5,073	77
9	3,408	100
10	5,266	74
11	7,336	27
12	3,363	58
13	1,218	45

11.8Mineral Resource Estimation Methods and Parameters

Grade and thickness estimates are undertaken within each geozone and informed by statistical and geostatistical analysis. Two variables are estimated namely; gold accumulation (cmg/t) (which factors in both the thickness of the reef thickness and grade) and channel width. No change of support corrections is considered necessary as it is assumed that the differing support sizes for chip samples and drill hole samples are negligible.

The orientations and ranges of each geozone’s semi-variogram are used to determine the optimised set of kriging estimation parameters. The search ellipse is aligned with respect to its range and direction, to the direction of the associated semi-variogram, as well as the range distances.

Measured Mineral Resource estimates are undertaken using OK. Estimates are generally kriged into 30m x 30m blocks for the Measured Mineral Resource from the point support data.

Indicated and Inferred Mineral Resource estimates are undertaken using SMK. The Indicated Mineral Resource is kriged into 60m x 60m block sizes. The Inferred Mineral Resource is estimated using the associated regularized variograms and kriging into 120m x 120m blocks. Any un-kriged areas in the Inferred Mineral Resource areas are then covered by global mean estimates.

The results of the Basal and B reef estimation are shown in Figure 11-2, for the Tshepong Operations.

The current minimum and maximum sample points for the Basal Reef is:

•15 and 25 for the Basal Reef Measured Mineral Resource estimation;

•8 and 20 for Indicated Mineral Resource estimation; and

•3 and 10 for the Inferred Mineral Resource estimation.

The current minimum and maximum sample points for the B Reef is:

•12 and 30 for Measured Mineral Resource estimation;

•8 and 20 for Indicated Mineral Resource estimation; and

•3 and 15 for the Inferred Mineral Resource estimation.

Any un-kriged areas in the Inferred Mineral Resource category regions are then estimated using a global mean.


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa


Figure 11-2: Tshepong Operations Basal Reef and B Reef Estimation Results


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The Measured Mineral Resource model is constrained using the Slope of Regression Estimation Confidence and merged with the Indicated Mineral Resource and Mineral Resource models to produce a combined kriged block model.

The channel width is estimated for all block sizes and ranges between 8cm and 34cm, averaging 18cm for Basal Reef. For B Reef, the channel width ranges between 52cm and 94cm and averages 79cm.

11.9Density Assignment

The relative density currently used for tonnage calculations at the Tshepong Operations is 2. Reef volume is determined by block area multiplied by the thickness estimate. The tonnage of each reef horizon is determined by multiplying the volume by the relative density.

11.10Model Validation

The QP validated the Tshepong Operations Mineral Resource model using the following:

•visual comparisons with the raw drill hole data;

•comparisons of the raw drill hole data statistics with the model statistics;

•model volume; and

•visual assessment of the block model with drill hole intersections to ensure that the grades are locally honoured by the model.

The QP did not identify any critical errors in the block model.

11.11Mineral Resource Evaluation

The Mineral Resource estimate for the Tshepong Operations is considered to have reasonable prospects for economic extraction. This is demonstrated by the results of the cash flow for the mines. The cut-off value for the Mineral Resources is determined at 648cmg/t, Tshepong and 780cmg/t, Phakisa for the gold based on the economic assumptions presented in Table 11-3 at the effective date 30 June 2022. This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery assumptions.

Table 11-3: Harmony Economic Assumptions (30 June 2022)

Tshepong

Phakisa

Description

Unit

Value

Description

Unit

Value

Gold price

USD/oz

1 723

Gold price

USD/oz

1 723

FX rate

ZAR:USD

15,35

FX rate

ZAR:USD

15,35

Gold price

ZAR/kg

850 191

Gold price

ZAR/kg

850 191

Plant recovery factor

95,22

Plant recovery factor

94,86

Unit cost

ZAR/t

3 367

Unit cost

ZAR/t

3 975

Notes: Unit cost includes cash operating cost, royalty and ongoing development capital

11.12Mineral Resource Classification and Uncertainties

The Tshepong Mineral Resources have been classified into Measured, Indicated and Inferred categories, according to the S-K 1300 definitions. The classification is based on drill hole spacing, geological and geostatistical confidence.


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For the geostatistical confidence, the Measured Mineral Resource model is constrained by the Slope of Regression Estimation Confidence, and the Indicated and Inferred Mineral Resource models are constrained by their kriging estimation parameters.

The QP then considers if the geostatistical confidence boundaries require modification based on the geological confidence in an area. The geological confidence could include confidence in the sedimentary facies and mineralisation model, or confidence in the structural model.

The application of the classification criteria results in the following set of approximate sample spacings for each Mineral Resource category:

•5m x 5m for Measured Mineral Resources (underground channel sampling);

•100m x 100m for Indicated Mineral Resources; and

•1,000m x 1,000m for Inferred Mineral Resources.

Mineral Resources are discounted by a geological loss to account for unknown but anticipated fault loss. The discounts used for the Basal Reef are between:

•1% and 3% for Measured Mineral Resources;

•3% and 11% for Indicated Mineral Resources; and

•7% and 60% for Inferred Mineral Resources.

Similar information applies to the for B Reef.

Factors that may affect the Mineral Resource estimates include the following:

•gold price assumptions;

•exchange rate assumptions;

•operating and capital cost assumptions;

•gold recovery assumptions;

•geology-related risks; and

•operational risks.

11.13Mineral Resource Estimate

The Mineral Resources for Phakisa and Tshepong were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

The location of the Basal Reef Mineral Resources across both Phakisa and Tshepong are presented in Figure 11-3. The location of the B Reef Mineral Resources is shown in Figure 11-3.

The QP compiling the Mineral Resource estimate for Phakisa is Ms B Phetlhu, Ore Reserve Manager at Phakisa and employee of Harmony. The Mineral Resource estimate for Phakisa, as at 30 June 2021, exclusive of Mineral Reserves, is summarised in Table 11-4.

The QP compiling the Mineral Resource estimate for Tshepong is Mr A Louw, Ore Reserve Manager at Tshepong and employee of Harmony. The Mineral Resource estimate for Tshepong, as at 30 June 2021, exclusive of Mineral Reserves, is summarised in Table 11-5.


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Figure 11-3: Location and Classification of Tshepong Operations Mineral Resources and Mineral Reserves for the Basal Reef


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Figure 11-4: Location and Classification of Tshepong Operations Mineral Resources and Mineral Reserves for the B Reef


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			Technical Report Summary for Tshepong Operations, Free State Province, South Africa

Table 11-4: Summary of the Phakisa Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	4.741	13.25	62,797
Indicated	7.264	11.27	81,831
Total / Ave. Measured + Indicated	12.005	12.05	144,627
Inferred	27.491	10.77	295,943
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	5.226	0.386	2.019
Indicated	8.007	0.329	2.631
Total / Ave. Measured + Indicated	13.233	0.351	4.650
Inferred	30.303	0.314	9.515
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Ms B Phetlhu, who is Ore Reserve Manager at Phakisa, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 780cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.

Table 11-5: Summary of the Tshepong Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	12.484	12.13	151,437
Indicated	3.977	10.20	40,575
Total / Ave. Measured + Indicated	16.462	11.66	192,012
Inferred	9.434	10.18	96,037
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	13.762	0.354	4.869
Indicated	4.384	0.298	1.305
Total / Ave. Measured + Indicated	18.146	0.340	6.173
Inferred	10.399	0.297	3.088
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr A Louw, who is Ore Reserve Manager at Tshepong, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 648cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.


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11.14Mineral Resource Reconciliation

The Phakisa Measured and Indicated Mineral Resource gold content estimate, exclusive of Mineral Reserves, decreased by approximately 5%, from 4,896Moz gold as at June 2021 to 4,650Moz gold as at June 2022. The major difference in the reconciled Mineral Resources between June 2021 and June 2022 is due to depletion and geological difficulties including structure and challenging hanging wall ground conditions experienced towards the south of the mine.

Tshepong Measured and Indicated Mineral Resource gold content estimate, exclusive of Mineral Reserves, increased by 3,97Moz from 2.203Moz gold as at June 2021 to 6.173Moz gold as at June 2022. The increase is mainly a result of the increase in the B Reef Mineral Resource currently being mined and explored in the decline section of the mine.

11.15Comment on Mineral Resource Estimates

The QP is of the opinion that Mineral Resources were estimated using industry accepted practices and conform to SAMREC, 2016. The Mineral Resources have also been reported in accordance with the S-K 1300 guidelines.

There are no other environmental, legal, title, taxation, socioeconomic, marketing, political or other relevant factors known to the QP that would materially affect the estimation of Mineral Resources that are not discussed in this TRS.


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12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

The reported Mineral Reserves are derived through a business planning process and consideration by the Chief Operating Decision-Maker (“CODM”). The business planning process comprises multi-functional reviews inclusive of all mining, support and service departments that are involved in the verification of the inputs and the Modifying Factors. The CODM consists of various executive roles and responsibilities. These executives assess the profitability, the revenue and production costs. The CODM also considers capital expenditure, gold production and tonnes milled when assessing the overall economic sustainability.

12.1Phakisa

12.1.1Key Assumptions, Parameters, and Methods Used to Estimate the Mineral Reserve

All reported Mineral Reserves originate in situ from the Basal Reef. The Mineral Reserves are considered based on several factors, including:

•the latest geological structure and associated Mineral Resource estimation models that constrain the layout for the mine design and LOM planning;

•the need for regional rock engineering stability pillars;

•the extent of pillar mining, mining of remnant areas, reclamation of broken ore out of old areas, tailings, or any other source;

•the Sequential Grid Mining (“SGM”) method in use at the mine,

•the sources of dilution and other Modifying Factors; and

•only Measured and Indicated Mineral Resources are used to derive Mineral Reserves.

A combination of modelling exercises forms an integrated model informing the LOM plan and the Phakisa Mine Mineral Reserves estimates, and includes the:

•geological block model;

•structural model depicting prominent geological features;

•isopach model highlighting the mine’s sedimentology and shale formations; and

•geotechnical model including interpreted data, modelled in the form of support pillars.


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12.1.2Modifying Factors

The Modifying Factors used to convert the Mineral Resource to a Mineral Reserve for Phakisa are presented in Table 12-1.

Table 12-1: Phakisa Modifying Factors Used for Mineral Reserve Determination


Modifying Factor	Unit	Value
Relative Density	t/m3	2,72
Stoping Width	cm	125
Gully	%	6,72
Off Reef	%	4,06
Waste to Reef	%	0,57
Flushing tons	%	0
Discrepancy	%	13,79
Mine Call Factor	%	83
Plant Recover Factor	%	94,86
Mine Recover Factor	%	78,73
Plant Call Factor	%	100
Mineral Reserve cut-off	cmg/t	791
Notes: Development waste to reef, including the decline development.

The Modifying Factors are consistent with the modelling, planning and computing estimates used in determining the Mineral Reserves, which are also consistent with historical performance. The plant recovery as shown in Table 12-1, is also consistent with the processing and recovery methods.

12.1.3Mineral Reserve Estimate

The location of the Tshepong Operations’ Basal and B Reef Mineral Reserves are presented in Figure 11-3 and Figure 11-4, respectively.

The QP compiling the Mineral Resource estimate for Phakisa is Ms B Phetlhu, Ore Reserve Manager at Phakisa and employee of Harmony.

Table 12-2: Summary of the Phakisa Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	3.759	6.98	26,243
Probable	0.176	6.49	1,143
Total (Proved + Probable)	3.935	6.96	27,386

IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	4.144	0.204	0.844
Probable	0.194	0.189	0.037
Total (Proved + Probable)	4.338	0.203	0.880
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Ms B Phetlhu, who is Ore Reserve Manager at Phakisa, and a Harmony employee.
2. Tonnes, grade, and gold content are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content has not taken metallurgical recovery factors into account.
5. Mineral Reserves are reported using a cut-off grade of 791cmg/t determined using a gold price of USD1,546/oz gold.


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12.1.4Mineral Reserve Reconciliation

The declared Mineral Reserve increased from 0.876Moz as at 30 June 2021 to 0.880Moz as at 30 June 2022. The key variances can be attributed to:

•depletions 14kg loss;

•geological structures 274kg loss;

•geological ground conditions 1,244kg loss; and

•Mineral Reserve remodel 1,689kg gain.

12.2Tshepong

12.2.1Key Assumptions, Parameters, and Methods Used to Estimate the Mineral Reserve

All reported Mineral Reserves originate from the Basal Reef, and to a lesser extent, the B Reef. The Mineral Reserves are considered based on several factors, including:

•the latest geological structure and associated Mineral Resource estimation models that constrain the layout for the mine design and LOM planning;

•the need for regional rock engineering stability pillars;

•the extent of pillar mining, mining of remnant areas, reclamation of broken ore out of old areas, tailings, or any other source;

•the SGM method in use,

•the sources of dilution and other dilution and other Modifying Factors; and

•only Measured and Indicated Mineral Resources are used to derive Mineral Reserves.

A combination of modelling exercises forms an integrated model informing the LOM plan and the Phakisa Mine Mineral Reserves estimates, and includes the:

•geological block model;

•structural model depicting prominent geological features;

•isopach model highlighting the mine’s sedimentology and shale formations; and

•geotechnical model including interpreted data, modelled in the form of support pillars.


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12.2.2Modifying Factors

The Modifying Factors used to convert the Mineral Resource to a Mineral Reserve for Phakisa are presented in Table 12-3. The Modifying Factors are consistent with the modelling, planning and computing estimates used in determining the Mineral Reserves, which are also consistent with historical performance. The plant recovery as shown in Table 12-3, is also consistent with the processing and recovery methods.

Table 12-3: Tshepong Modifying Factors Used for Mineral Reserve Determination


Modifying Factor	Unit	Value
Relative Density	t/m3	2,72
Stoping Width	cm	110,6
Gully	%	8,8
Off Reef	%	5,27
Waste to Reef	%	0
Flushing tons	%	2,92
Discrepancy	%	5,06
Mine Call Factor	%	72
Plant Recover Factor	%	95,22
Mine Recover Factor	%	67,37
Plant Call Factor	%	100
Mineral Reserve cut-off	cmg/t	650
Notes: Development waste to reef, including the decline development.

12.2.3Mineral Reserve Estimate

The location of the Basal and B Reef Mineral Reserves are presented in Figure 11-3 and Figure 11-4.

The QP compiling the Mineral Resource estimate for Tshepong is Mr A Louw, Ore Reserve Manager at Tshepong and employee of Harmony.The Mineral Reserve estimate for Tshepong, as at 30 June 2022 is summarised in Table 12-4.

Table 12-4: Summary of the Tshepong Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	4.157	5.15	21,419
Probable	0.336	7.63	2,565
Total (Proved + Probable)	4.493	5.34	23,985
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	4.583	0.150	0.689
Probable	0.371	0.223	0.082
Total (Proved + Probable)	4.953	0.156	0.771
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr A Louw, who is Ore Reserve Manager at Tshepong, and a Harmony employee.
2. Tonnes, grade, and gold content are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content has not taken metallurgical recovery factors into account.
5. Mineral Reserves are reported using a cut-off grade of 650cmg/t determined using a gold price of USD1,546/oz gold.


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12.2.4Mineral Reserve Reconciliation

The declared Mineral Reserve decreased from 3.727Moz as at 30 June 2021 to 0.771Moz as at 30 June 2022. The key variances can be attributed to:

•decrease in stoping mining rate, significant change in the Life of Mine strategy – 2.30Moz;

•depletion – 0.224Moz; and

•abandoned blocks – 0.14Moz.

12.3Commentary on Mineral Reserve Estimate

The declared Mineral Reserves takes into consideration all Modifying Factors, respective to the mining area. The declared Mineral Reserves are depleted to generate the Tshepong Operation cash flows. The economic analysis of the cash flows displays positive results and are deemed both technically and economically achievable.

Any by-products that are recovered as part of the refining process, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimate.

There are no obvious material risks that could have significant effect on the Mineral Reserves.

In the opinion of the QP, given that Phakisa and Tshepong mines are established operations, the modifying factors informing the Mineral Reserve estimates would at a minimum, satisfy the confidence levels of a Pre-Feasibility Study.


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13Mining Methods

Section 229.601(b)(96) (13) (i-v)

The Tshepong Operations may be classified as moderate to deep level underground gold mines currently operating at depths of up to 2,427m below surface (Phakisa) and 2,161m below surface (Tshepong).

13.1Mining Operations

The Tshepong Operations resulted from the integration and consolidation of the Phakisa and Tshepong mines. This will enable Harmony to optimize existing synergies, reduce costs and make better use of the Tshepong section’s underused infrastructure.

Tshepong Operations utilise three main shafts (Figure 3-2). The Tshepong and Phakisa shafts operate semi-independently with respect to ventilation requirements, ore and waste hoisting and men and material movement. An underground lightweight electric rail system, referred to as the RailVeyorTM is used to transport ore and waste from the working sections to the Nyala Shaft where it is hoisted to surface. More information on the details of the shaft operations, any interdependencies and the railway systems are described in Section 15

Tshepong Operations are currently investigating an optimisation strategy, whereby the Phakisa North block will be mined and hoisted through the Tshepong Shaft to minimise constraints on the Koepe winder at Phakisa shaft. This will also enable Phakisa to hoist any excess waste emanating from development.

13.1.1Phakisa

The Phakisa Mine was established approximately 8 years after the Tshepong Mine. Production from the Phakisa Mine is attributable to the Basal Reef only. The Phakisa Mine is accessed via a single underground vertical shaft. The mine is also assisted by two other shafts for the supply of air.

All working levels are accessed via the single vertical shaft system. The strata-bound Basal Reef has a shaly roof and, in some instances, a waxy brown quartzite footwall. The Basal Reef contributes approximately 82% to the total production volume. Development and stoping operations are based on conventional mining methods.

13.1.2Tshepong

The Tshepong Mine is a mature underground section and is made up of two mineable reefs namely the Basal Reef and B Reef. The reefs at the Tshepong are accessed via a single underground vertical shaft and a twin decline system.

Currently five working levels are being mined from the Tshepong Shaft and four working levels are being mined in the decline. The decline system was constructed as a 1,700m extension to access the Basal Reef.

The characteristics of the Basal Reef at the Tshepong Mine are synonymous to the characteristics of the reef at the Phakisa Mine. Tshepong Mine extracts the Basal Reef via undercut mining methods, , leaving a quartzite beam in the hanging wall to ensure the stability of the overlaying shale.

The B Reef is stratigraphically located two production working levels above the Basal Reef. The B Reef occurs in three facies, with varying widths of 30cm - 170cm and displays erratic high-grade distributions. Minor amounts of the B Reef are extracted per annum which typically does not exceed 18% of the total production volume. The reef is extracted via open stoping mining operations. It is also supported by a separate development of footwall infrastructure based on its stratigraphic location.

Structurally, the Dagbreek Fault is the most prominent feature at the Tshepong Mine, and largely hosts the shaft infrastructure. Since the Tshepong Shaft is in a fault loss zone, there is no associated shaft pillar.


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13.1.3Sequential Grid Mining (“SGM”)

SGM is the preferred mining method used at the Tshepong Operations. This method makes use of dip pillars and reduced mining spans with pre-developed tunnels, aimed at further control of stresses experienced in rock movement.

The SGM sequence is a V-shaped configuration, colloquially referred to as the “inverted Christmas tree”. A schematic representation of the SGM sequence used at the Tshepong Operations is shown in Figure 13-1.

The SGM mining methods are suitable for underground, narrow reef mining. A common feature of the SGM method is the layout of the primary and secondary development. Primary development is done off-reef (in waste rock), while secondary development is done on-reef (in the mineralised zone). In primary development, horizontal haulages are developed from the vertical shaft, extending to the extremities of the mining level. Inter-level spacing is the perpendicular distance between two consecutive level stations underground. Further development is done at set intervals along the haulages towards the mineralised zones in the form of crosscuts. For secondary development, an inclined excavation that connects two levels is established, referred to a raise or winze, depending on the upwards or downwards direction of the development.

The SGM is employed for a deeper mining approach and offers various advantages, the critical one being increased safety. A noticeable characteristic of the SGM method is that mining from the raises is advanced in only one direction at a time, which is directed towards the stabilizing or regional pillars. This SGM mining sequence eliminates the creation of remnant pillars reducing the risk of seismicity.

13.1.4Open Stoping

While Tshepong Operations business plan is based primarily on the SGM methodology and sequencing, there are sections of the mine that are operating using the breast, undercut and open stoping mining methods.

Minor amounts of the B Reef that do not exceed 30% of the on-reef mined per annum, are extracted as an open stoping mining operation. Reason for mining at open stoping is as a result of the erratic nature of the channel width and the support design specific to B reef mining. This mining method is practised, without much reliance on the other operating mining sections, and based on its location, poses a low risk to geotechnical considerations.

13.1.5Breast Mining

The Phakisa Mine was originally based on breast mining methods but transitioned to the SGM method with increasing depths.

A key feature of breast mining is that the mine design includes pillars in the stoping areas that are designed to cave in a planned and controlled manner. These pillars are referred to as crush pillars and the dimensions of the pillars are determined by the geotechnical properties of the host rock. The use of crush pillars minimises the risk of unpredicted collapse of stoping areas. These collapses can compromise the safety of mining operations and may lead to permanent closure of stoping panels or sterilisation of ore.

The breast mining method has consequently evolved into the SGM.

13.1.6Integrated Approach

The differences of the reef formations and mining conditions at the respective shafts have led to the application of an integrated mining method approach. The objective of the adopted mining methods is aimed at the safe and profitable extraction of the Mineral Reserves, while reducing the occurrence of large seismic events.


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13.2Mine Design

The mine design strategy aims at maximising the safe extraction of ore, while minimising the risk of geotechnical failures, which can result in operational disruptions and dangerous working conditions. The Basal Reef is modelled and designed across the Tshepong Operations. In addition, the Tshepong Mine considers the B Reef for design and planning.

Both, the Basal and B Reef horizons have been subject to faulting and intrusions by igneous dykes and sills that cut across the reefs. The most significant form of control at the Tshepong Operations for rockfalls and rockbursts is the systematic modelling and design processes. Dip stabilising, bracket and strike pillars are considered for an integrated support system. The central raise line maintains stability, during stoping operations, using support packs.


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Figure 13-1: Schematic Representation of the SGM Sequence


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The occurrence of geological faults is also a source of groundwater intersections during mining operations which may lead to production delays, geotechnical risks, and the potential of flooding. Depending on the geology of the dyke or sill, a change in the mining direction may be required, or as in the case of low-risk scenarios the Rock Engineering department may suggest a safety and support strategy to mitigate the associated geotechnical risk. A change in mining direction may result in Mineral Resource losses, or an increase in dilution.

Based on the latest geological structure model and the SGM method the geotechnical team design a suitable pillar layout based on modelling results. A detailed mine design and schedule is done based on the pillar design taking cognisance of uneconomical areas which are excluded on macro scale. This design and schedule are the basis of the mine plan and the declared Mineral Reserves.

The geotechnical modelling is driven by the most recent information from mining operations, which ensures that the model is an accurate representation of the current operational conditions.

Development is done by either mechanised, mechanical or conventional method depending on the most suitable method for the specific requirements. The Tshepong Mine is essentially a conventional mine design with trackless mining in the twin decline.

Mining production is accessed through underground excavations, developed as haulages and cross cuts. Crosscuts are primary development, in the direction of the mine workings. Inclined secondary development is used to access the reef contact, and advanced from the position of respective crosscuts. Ore is extracted from stoping panels established from the inclined development.

13.2.1Mine Design Parameters

Mine design is done internally, with the mine designs for the Basal Reef and B Reef horizons done separately, using the DatamineTM software. The geological models, and the geotechnical parameters formulated by the Rock Engineers, are used as a basis of the mine planning process. The mine design parameters used for the Phakisa and Tshepong Mine, are shown in Table 13-1 and Table 13-2, respectively.

Table 13-1: Phakisa Mine Design Parameters


Parameter	Unit	Value
Regional Stability
Dip stabilizing pillar dimensions
Strike span	m	180
Dip span	m	N/A
Strike stability pillar spacing¹	m	N/A
Access haulages middling to reef	m	90
Primary Development
Advance	m/month	35
Crosscut spacing	m	160
Secondary Development
Advance	m/month	N/A
Stoping Parameters
CW < 80cm	m	105
CW > 80cm	m	125
Economic Parameters
Cut-off grade (planning)	cmg/t	790
RD		2.72
Notes: 1. Pillar spacing is measured skin to skin.


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Table 13-2: Tshepong Mine Design Parameters


Parameter	Unit	Value
Regional Stability
Dip stabilizing pillar dimensions
Strike span	m	90
Dip span	m	180
Strike stability pillar spacing¹	m	N/A
Access haulages middling to reef	m	90
Primary Development
Advance	m/month	28
Crosscut spacing	m	20
Secondary Development
Advance	m/month	N/A
Stoping Parameters
CW < 80cm	m	105
CW > 80cm	m	120
Economic Parameters
Cut-off grade (planning)	cmg/t	650
RD		2.72
Notes: 1. Pillar spacing is measured skin to skin.

13.3Geotechnical Considerations and Seismic Monitoring

Tshepong Operations maintains working geotechnical and Isopach models, to manage and control seismicity risk. The geotechnical and Isopach models for Tshepong Operations take the latest geological structural model and the SGM method into account to design a suitable pillar layout.

The Rock Engineers follow the following geotechnical modelling and approach:

•evaluate the principal stress directions using seismic source mechanisms and update the input parameters for numerical modelling;

•using seismic source mechanisms, delineate planar features to confirm and/or detect the position and orientation of geological structures;

•confirm the expected ground motion produced by large, potentially damaging seismic events, and calibrate the Ground Motion Prediction Equation; and

•monitor mine-wide seismic activity and test each geotechnical region for deviation from the expected co-seismic rockmass response, which tests the release of seismic energy.

This model is also used to manage and monitor the occurrence of seismic hazards. Seismic hazards are categorically measured as per mine planning cycles of short, medium and long term. Events for the last 100 - 200 days definitively estimated, to accurately determine the intermediate probabilities of occurrence. The behaviour of identified medium term events are then monitored daily. Alarms are raised, and people are evacuated in the event of a predicted or anomalous seismic pattern is identified and people are removed from the specific danger areas.

Tshepong Mine uses an Integrated Seismic System supplied by Institute of Mine Seismology to record seismic events on the property.


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The seismic systems consist of 17 three-component geophones. The digital seismic data is transmitted from the underground seismic stations through to the surface monitoring stations via manual and automated recording systems, based on available infrastructure at the mine. The data is recorded continuously and reported on an annual basis.

13.4Geohydrological Considerations

Apart from the geotechnical risks that can be caused by the existence of geological structures, the presence of water and gas also pose risks to the Tshepong Operations. The geotechnical models are used as a basis to manage and monitor the occurrence of ground water and gas intersections. Cover holes are drilled in all flat development ends to identify water or gas. Water or gas intersections are plotted in a 1:200 survey sheet plan and section view, with a detailed 1:100 profile description. These intersections are plotted against a stope plan indicating the geology, structural features, reef contours, pillar layout, faults with associated losses or gains, reef elevation, grade and channel width. These geospatially refenced plots articulacy help the mining team execute the mine plan, in relation to the operation’s geotechnical requirements and assist in the early detection of the presence of water or gas.

Daily management of influx water is handled through a series of diversion strategies aimed at re-directing and controlling the flow, temperature regulation, and re-circulation of water. The water strategies at Tshepong Operation are supported by the Integrated Waste and Water Management Plan (“IWWMP”). Both Tshepong and Phakisa maintain graphical and numerical databases of the operations geohydrological conditions.

Water reticulation around the mine has been designed to maximise water re-use minimise the amount of water pumped to surface. The 76-level pump station is used to transfer water from various levels into small inter-level dams and eventually into the mine’s respective main settling dams.

13.5Mine Plan Development and Life of Mine (“LOM”) Schedule

The Tshepong Mine has significant Mineral Reserves to maintain a long-term mine life, however, extraction of ore from pillars will become more important as the life of mine progresses, but volumetrically these Mineral Reserves are not significant.

The preferred SGM mining method is dependent on development staying ahead of the mining front, so that accurate geological information is gathered and included in final designs before mining commences. This also enables, planning and scheduling activities to be accurately sequenced, which leads to better planning, safer working conditions, and improved profitability.

At Phakisa Mine, the LOM plan and scheduling originates with the use of the Mineral Reserves model, which is modelled at a 790cmg/t cut-off grade. The 3.935Mt of Mineral Reserves are included in the LOM plan and are fully accessible through the existing infrastructure at the Phakisa Mine. The mining rates used in determining the LOM plan are based on the current and expected operational performance, notwithstanding any unforeseen underground mining constraints. The remaining LOM for the operations is planned for nine years, with a planned mining rate averaging at approximately 552ktpa (milled tons) over the LOM period. The extent of the Phakisa Mine LOM plan is shown in Figure 13-2. The milled ore and gold recovered for Phakisa Mine are presented in Figure 13-3 and Figure 13-4, respectively.

At Tshepong Mine, the LOM plan and scheduling originates with the use of the Mineral Reserves model, which is modelled at a 650cmg/t cut-off grade. The 4.493Mt of Mineral Reserves are included in the LOM plan and are fully accessible through the existing infrastructure at the Tshepong Mine. The mining rates used in determining the LOM plan are based on the current and expected operational performance, notwithstanding any unforeseen underground mining constraints. The remaining LOM for the operations is planned for seven years, with a planned mining rate averaging at approximately 0.696ktpa (milled tons) over the LOM period. The extent of the Tshepong Mine LOM plan is shown in Figure 13-2. The milled ore and gold recovered for Tshepong Mine are presented in Figure 13-5 and Figure 13-6, respectively.


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Figure 13-2: Tshepong Operations LOM Plan


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Figure 13-3: Graph of Phakisa Mine LOM Plan – Tonnes and Grade

Figure 13-4: Graph of Phakisa Mine LOM Plan – Gold Produced (oz)


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Figure 13-5: Graph of Tshepong Mine LOM Plan – Tonnes and Grade

Figure 13-6: Graph of Tshepong Mine LOM Plan – Gold Produced (oz)


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13.6Mining Rates

Mining rates are based on current and expected performance depending on underground conditions and constraints. Dilution is included in the production plan mainly from external waste sources from the stoping operations, but allowances are also made for dilution occurred in the ore flow process. The LOM plan considers the planned and available working areas, inclusive of the mine’s current infrastructure capacity.

Phakisa will be mined at an average rate of 46,000tpm, whilst Tshepong will be mined at an average rate of 58,045tpm.

13.7Grade and Dilution Control

The selected SGM mining method is planned and designed to better support recovered grade because of the improved selectivity, flexibility, and reduced off-reef mining. Mine grades are currently decreasing as mining moves away from the central pay-shoot and the planned Sub 75 Capital Project is aimed at alleviating this risk.

Ore grade and dilution control is done using a Quality Index monitoring tool. This Quality Index considers key parameters including Mine Call Factor, stoping width, proportion of ore lock-up, and an on-reef index. During the mine design and planning process, external dilution control is implemented by applying an adapted mine recovery factor.

Operationally, grade and dilution control are mostly achieved through improved drilling (marking sticks used on undercut mining) and blasting practices and compliance to blasting barricades on stopes >350. Drilling accuracy is achieved by holes that are drilled parallel, aimed at being correctly burdened and that are within the stoping limits. This ensures consistent and economic rock breaking, without dilution.

The Tshepong Mine also adopts electronic blasting technology consisting of an integrated electronic system, which allows for precision timing and improved control of rock breaking. This technique controls stoping width and protects the integrity of the footwall and hanging wall, aimed at minimising dilution.

13.8Mining Equipment and Machinery

There are various machinery and equipment used at the Tshepong Operations, depending on the type of mining or development activity. The following equipment can be found at the frontline of mining production:

•haulages and associated development: Hydro-powered (“HPE”) drill rigs are used for underground excavations and tunnelling. These rigs are preferred as they are versatile and capable of angular, horizontal, and vertical drilling;

•production drilling in stopes: Two types of drilled holes are used in a stoping panel, namely production drilling and pre-conditioned drilling. Pre-conditioning is a methodology aimed at transferring the stresses away from the stope face, therefore reducing the potential for face burst damage. Pre-conditioned holes are drilled longer than production holes and are blasted with the production round. Equipment used for this type of drilling is compressed air hand-held drills;

•raise boring: Is a drilling technique used for ventilation development purposes and ore passes. Raise boring and control mechanisms are currently operated via control modules connected through the mine’s underground and shaft communication networks, conducted on surface by a contractor. The benefits of this allow personnel to be removed from dangerous underground workings and have the upside of productivity achieved through automation;

•rock movement: Ore from the stoping ore passes is loaded directly into hoppers from the box-front chutes and then trammed to the shaft to the inter-level tips, then transferred to the main loading bins for hoisting to the surface. Waste rock from development operations is loaded into similar hoppers and trammed and hoisted in the same manner as the ore movement but is done using in a dedicated waste system to prevent diluting the ore grade;

•material movement: Tshepong uses the Battery charged monotrains and to a lesser extent diesel monotrains. The monotrain was partially adopted at Tshepong Operations, decline operations due to their consistent maintenance of speed in steep and changing gradients, while allowing for varying weight bearing capacities, works as efficiently in undulating floor conditions, and is almost impossible to de-rail due to the L-shaped sliding beam design. Phakisa utilises battery charged monotrains; and


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•ancillary equipment: Small articulated dump trucks, graders, and crawler mounted bulldozers for dump, waste and marginal ore movement also support the Tshepong Operations Mine operations.

13.9Ore transport

The blasted ore from the stoping panels is moved with winch-operated scrapers along gullies to ore passes where it gravitates down to the loading boxes in the footwall crosscuts below the stopes. The ore is discharged into rail hoppers and transported, via front-driven locomotives, to dedicated inter-level transfer systems that gravity feed to the main silos. Once hoisted up the main vertical shaft to surface, the ore is transported to the Harmony One Plant via conveyor belt.

The existing Phakisa Shaft is connected to the Tshepong Shaft . Broken rock handling from the Tshepong Shaft, situated above 66 level is track-bound, transferred to several inter-level sub-vertical transfer systems that gravity feeds to the main silos on 55 level. The broken rock handling below 66 level is track-bound, transferred to a decline belt system that feeds to the silos on 66 level from where the rock is transferred by track to the main inter-level sub-vertical transfer system on 66 level (Figure 13-7). Currently, below 66 level, stoping and development rock is hoisted and processed as one product. The rock is hoisted to surface through the main shaft. From the shaft the rock is transported to the Harmony One Plant by train.

At the Phakisa Shaft, broken rock handling on all levels is track-bound. Several inter-level sub-vertical transfer systems feed the main silos on 55 level. From 77 level, the rock is hoisted to 55 level where a RailVeyorTM system transports the rock from Phakisa to the Nyala Shaft, from where the rock is hoisted to surface by means of the rock winder, and then transported to Harmony One Plant by train (Figure 3-1).

13.10Mining Personnel

Tshepong Operations is labour intensive, with the mines being supported by over 6,820 employees, with 88% being permanent staff and the remainder contractors.

The underground mining operations uses an 11 day fortnight shift system, operating a 3-shift cycle per day. The underground work force is essentially split into two categories that are either involved in production activities or they provide supporting services required underground. Production activities are directly related to the mining of ore and non-production personnel provide supporting services such as safety, engineering functions, maintenance, decline conveyor management and underground store controls. The mining personnel for the respective mines is presented in Table 13-3 and Table 13-4.

Table 13-3: Phakisa Mine Mining Personnel


Labour Requirement			No. of Employees
Services			324
Engineering			639
Mining			1,848
Contractors			415
Total Employees			3,226


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Figure 13-7: Tshepong Operations Shaft and Underground Infrastructure


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Table 13-4: Tshepong Mine Mining Personnel


Labour Requirement			No. of Employees
Services			366
Engineering			724
Mining			2,124
Contractors			380
Total Employees			3,594

13.11Commentary on Mining Methods

The SGM mining method is the main mining method utilised at the Tshepong Operations and is appropriate for the reef characteristics and the mine depth. The mine design, planning and scheduling for the mine is developed using the DatamineTM and DeswikTM geological software, respectively, considering the geotechnical model and related parameters.

The main geotechnical and geohydrological risks at Tshepong Operations include the presence of gas, ground water and seismicity, which are managed through the integrated monitoring systems, and incorporated into working mining models that inform daily mine planning decision-making.

The mining rates, machinery and equipment, ore transport, grade and dilution control, and labour resourcing and optimisation are driven by the mine schedule and improvement initiatives at the respective mine sites.


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14Processing and Recovery Methods

Section 229.601(b)(96) (14) (i-iv)

All ore mined at Tshepong Operations is processed at Harmony One Plant located west of Welkom (Figure 3-1). Harmony One Plant is Harmony’s largest gold processing plant and processes underground ore from multiple shafts, as well as surface ore from nearby mine waste facilities. The plant was commissioned in 1986 and comprises three independent modules, each consisting of four feed silos, two ROM mills, two conventional thickeners, cyanide leach, carbon in pulp (“CIP”) adsorption, elution, zinc precipitation and smelting. The plant CIP process reflects the technology which was current at the time of construction.

14.1Mineral Processing Description

The processing flow sheet is presented in Figure 14-1.

Ore delivered to the plant is fed from the concrete silos via two mill feed conveyors through vibrating feeders directly into the ROM mills. Fully autogenous (“FAG”) milling is a milling process in which the entire ROM ore stream is fed directly into the mills and where the grinding media is generated within the mill from suitably sized pieces of ROM ore itself. The average feed rate to the mills is 65tph. The milling circuit consists of two single stage ROM mills that are controlled on maximum power for optimum milling. Each ROM mill is 4.27m in diameter and 10m in length and grinds the ore to 75% - 90% passing minus 75 microns.

Milling is followed by a conventional gold leach process (cyanidation).The cyanidation process is one of the most utilised methods for the recovery of gold from auriferous ores. The use of cyanide leaching for gold recovery is based on gold’s properties, mainly its solubility (ability to dissolve) in cyanide solutions. Once the gold is dissolved into the cyanide solution it has a higher ability to adsorb (attach) onto activated carbon through the application of carbon in pulp (“CIP”) technology.

The loaded carbon then enters the elution columns, which are high pressure vessels that circulate the loaded carbon extracting the gold. The gold will “de-absorb” from the activated carbon and attach onto stainless-steel wool by means of electrowinning. The CIP circuit makes use of gravity flow of slime between the consecutive counter-flow stages to recover recirculate the activated carbon back into the system.

Following this process, the cathode steel wool is smelted (induction furnaces) after drying in the calcining ovens. The doré bars are then dispatched to Rand Refinery Limited, located near Johannesburg in Gauteng Province.

The tailings residue is pumped from the plant to one of two TSFs, the FSS8 West/East complex, which is the biggest facility with a total deposition capacity of 320,000tpm. The second TSF is the FSS2 facility with a capacity of 160,000tpm. The combined capacity of the two TSFs are 480,000tpm which is well above the plants designed capacity thus, creating some flexibility in the deposition strategy.

Both TSFs are conventional day wall paddock facilities with a fixed penstock tower arrangement that would be the primary means of draining excess water from the facility which is pumped back to the plant to be used in the process again.


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Figure 14-1: Schematic Flow Diagram of the Metallurgical Process


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14.2Plant Throughput, Design, Equipment Characteristics and Specifications

The Harmony One Plant has a steady state design capacity of 390ktpm with its conventional CIP flowsheet. The design parameters and equipment specifications are presented in Table 14 1. The Harmony One plant is in good working condition and the equipment is also in good order with audits done on regular bases to check the operating performance of the plant.

Table 14-1: Key Design Parameters and Equipment Specifications


Process	Parameter	Unit	Value
Overall Plant	Recovery	%	94.6
	Availability	%	99.99
Milling	Throughput ROM	t/hr	90 -100
Densification	Desired pH	pH	>10.5
	Desired Density	g/cm3	1.50 - 1.55
Leaching	Residence Time	hr	27
Acid wash and elution	Elution Temperature	°C	130 (Ambient)

14.3Energy, Water, Process Material and Personnel Requirements

14.3.1Energy

The average monthly power consumption is 11,478,202KWh.

14.3.2Water

The average monthly water consumption is 20,655kL.

14.3.3Process Material

The reagents and their consumption rates are presented in Table 14-2.

Table 14-2: Harmony One Plant Consumables


Equipment	Unit	Value
Lime	tpm	338.00
Flocculant	tpm	0.64
Cyanide	tpm	9.06
Carbon	tpm	190.00

14.3.4Personnel

The personnel is provided in Table 14-3.

Table 14-3: Harmony One Plant Personnel


Personnel			No.
Services			70
Engineering			71
Metallurgy			135
Contractors			246
Total			522

14.4Commentary on the Processing and Recovery Methods

The metallurgical process is a well-tested CIP technology which has been in operation at the Harmony One plant since 1986. Recoveries used in the business plan were based on historic performance. The methodology applied considered the historical metallurgical recovery (18-month period) (Figure 14-2) for the relevant ore sources at the plant.


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It should be noted that since the Harmony One plant processes ore from multiple sources a metal accounting operating procedure is required to manage the input feed delivered to the plant and gold output produced. A basic overview of the procedure is as follows:

•each operation delivers ore to the plant and is booked against each source;

•a delivery sheet reflects each shaft/operations figures; and

•from total ore processed, each shaft/operations equivalent proportion of gold is determined out of the monthly full gold produced.


Figure 14-2: Graph of Tshepong Operations Historical Recovery Factor (18 month actual)


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15Infrastructure

Section 229.601(b)(96) (15)

The proximity of the Tshepong and Phakisa allows for the integration of infrastructural requirements by using the excess hoisting capacity and underused infrastructure available at Tshepong. This has also enabled the debottlenecking of Phakisa’s infrastructure. The Tshepong Operations have adequate access to the infrastructure required to meet the planned LOM production schedules.

15.1Surface Infrastructure

The surface infrastructure associated with the Tshepong Operations is presented in Figure 15-1, whilst Google Earth images for each of the shafts and Harmony One Plant are presented in Figure 15-2, Figure 15-3, Figure 15-4 and Figure 15-5.

The Tshepong Operations’ mining area is well developed in terms of access and mining-related infrastructure. Access to the shafts is via well-maintained roads. Adequately maintained gravel roads is used to access other areas of the mine such as the explosives magazines, sewage works, slimes dam and the evaporation ponds.

The infrastructural layout includes hoisting facilities; logistical support for core handling, sampling, and transporting; ore and waste facilities; tailings and leaching infrastructure; roads; water and power supply; ventilation and refrigeration systems; stores and workshop support; electrical supply; offices; housing and security.

15.1.1Ore and Waste Rock Storage Facilities

Ore mined at the Tshepong Operations is hoisted at Nyala Shaft where it is stored in silos on surface before being transported by rail to the Harmony One Plant for processing (Figure 15-1 and Figure 15-5). Ore is stored in silos located at the plant prior to processing.

The ore and waste hoisting for the Phakisa Mine is done using two rock winders via the Nyala Shaft and is delivered via the RailVeyorTM. Waste rock is deposited in waste silos and transported to the plant. The Nyala (“WRDs”) is not currently used, but is available adjacent to the respective shafts (Figure 15-1).

Waste at the Tshepong Mine is hoisted separately via the skips and stored at the waste rock dump on the Northern side of the shaft.

15.1.2Tailings Storage Facilities

Harmony One Plant pumps tailings as slurry to two TSFs namely FS2 and St Helena No.4, located to the south of the plant. All TSFs and are currently owned and operated by Harmony.

The current LOM plans for Tshepong Operations require a total collective placement of approximately 0.77Mt of tailings. The capacity remaining in the two TSFs is sufficient until 2024. Harmony is currently designing a new TSF to be located on the previous H1 Dam footprint which will have sufficient capacity for the remainder of the LOM.

The TSF sites have full engineering records including design, construction, operation, and maintenance plans.

15.1.3Rail

A railway line which traverses the Tshepong Operations Mining Right area is used to transport hoisted ore to the Harmony One Plant (Figure 15-1).


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Figure 15-1: Tshepong Operations Surface Layout and Infrastructure


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Figure 15-2: Phakisa Detailed Surface Infrastructure


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Figure 15-3: Tshepong Detailed Surface Infrastructure


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Figure 15-4: Nyala Detailed Surface Infrastructure
Source: Google Earth Image Date May 2021


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Figure 15-5: Harmony One Plant Detailed Surface Infrastructure
Source: Google Earth Image Date: September 2021


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15.2Underground Infrastructure and Shafts

The Tshepong Operations’ shaft and underground infrastructure is schematically depicted in Figure 13-7. The underground workings are accessed and mined via four vertical shafts and a sub-vertical shaft and a decline shaft.

At Tshepong, the main vertical shaft system extends from surface to 71 level, at 2,161m below surface. The ventilation shaft system extends to 2,148m below surface and the sub 66 decline shaft system extends from 66 level to 77 level.

At Phakisa, the main vertical shaft system extends from surface to 54 level. A sub-vertical extends from 55 level to 66 level. A RailVeyorTM connects the 54 level and 55 level. A Koepe winder is used at the Nyala shaft for rock hoisting. There are two pump stations located at the Phakisa shaft 71 level and 76 level. The Phakisa and Tshepong shafts are connected laterally at 54 level and 66 level.

Mine ventilation systems are well established. The Nyala Shaft supports the Phakisa operations with the supply of compressed air, water handling and rock hoisting. Four compressors installed on surface feed air down the Nyala shaft for the Phakisa workings. Refrigeration systems for Phakisa shaft are installed on 55 level to cool the working places. The main return airway for the Phakisa Shaft is predominantly via the Tshepong Shaft on 66 Level, 69 Level and 73 Level. The current additional holing, booster fan installations and pressure upgrades will significantly assist with the return air capacity and the refrigeration on the shaft.

There are four refrigeration plants on surface, serving the Tshepong Mine. Bulk air is supplied via the Tshepong shaft to an inter-level refrigeration system on 63 level, assisted by cooling cars and coils. Two underground booster fans will be installed on 66 Level, to increase the return air capacity to the decline section.

15.2.1RailVeyorTM

A 5.4km RailVeyorTM system connects the Phakisa Shaft through 55 level to the Nyala Shaft. The RailVeyorTM is used to transport the rock from Phakisa to the Nyala Shaft.

The RailVeyorTM was initially installed by the RailVeyorTM company. It is a remote controlled, electrically powered friction light-rail haulage solution. The system comprises four trains and is maintained with a dedicated maintenance bay and digital monitoring systems. The RailVeyorTM system is maintained by the Tshepong Operations, where support can be provided by the company as required.

15.3Power and Electrical

Power is supplied by Eskom. Tshepong Operations power supply is designed to satisfy the planned LOM production and service requirements. Main power supply is managed and distributed via electrical sub-stations located adjacent to the respective shafts (Figure 15-2, Figure 15-3, Figure 15-4).

Power lines traverse the mine property to connect the shafts, reduction works and hostel complexes.

In addition, Tshepong Operations have an onsite emergency power generator system, sufficient to support the critical mining and mineral processing activities in case of emergencies. The operation has capacity to supply of 35MW, however currently only 31MW is utilised.

15.4Water Usage

The primary source of bulk water supply is from Sedibeng municipality. The processing plant, refrigeration plant and underground mining activities are the three largest water consumers.

The Phakisa underground water supply is supported by two operational settlers. The main pump stations at the Nyala shaft are situated on 35 level and 57 level. The water that reports at the Nyala shaft is mainly excess water from Phakisa, melted ice and drinking water, and an estimated 1Ml of fissure from surrounding shafts.

The Tshepong has four underground water dams on 66 level and 69 level. Water for the use of dust suppression, footwall and sidewall treatment is re-purposed at the Tshepong Mine.


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As the Sedibeng municipality water supply is reliable, there is no dedicated surface water supply storage. A water storage dam, with capacity of +- 8ML, is in the process of being built at surface. Water usage at Phakisa shaft is approximately 4ML daily average use for ice production as well as for water drinking and sanitizing

The storage facilities have sufficient water to supply water to the operation for up to 72 hours if the bulk water supply was interrupted.

15.5Logistics and Supply

The procurement of supplies and equipment are handled centrally, via Harmony, and then delivered to Tshepong Operations.

Harmony operates its own rail system which connects the shafts, reduction works, shaft stores, explosives magazine and the mine workshops. This system is used to transport ore between shafts and to transport consumables between the surface stores to the respective locations, as required. It is also connected to the regional Transnet railway system, which transports ore to the Harmony One Plant.

15.6Commentary on Infrastructure

The operational infrastructure including road, rail, offices, security services, refrigeration, Compressors, pump stations, chairlift, ice plant and RailVeyorTM, water and power supply is adequate to satisfy the Tshepong Operations LOM plan. Operations are powered by electricity from Eskom. Overall, Tshepong Operations are well-established with sufficient logistical and infrastructure support for the existing and planned mining operations.


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16Market Studies

Section 229.601(b)(96) (16) (i-ii)

Gold is traded in a variety of markets/exchanges both in physical form through over the counter (“OTC”) markets, bullion banks and metal exchanges etc., and through passive investments such as exchange traded funds (“ETFs”), which are based on gold prices and units representing physical gold which may be in paper or dematerialised form. Demand is driven by the jewellery market, bar and coin, use in technology, ETF’s and other financial products, and by central banks. An overview of the gold market is given in the following sections based mainly on data from the World Gold Council and GoldHub websites.

16.1Market Overview

16.2Global Production and Supply

Gold production and supply is sourced from existing mining operations, new mines and recycling.

16.2.1New Mine Production

16.2.2Recycling

16.3Global Consumption and Demand

16.3.1Jewellery


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16.3.2Investment

Investment drivers also include low interest rates, a weakened USD, and an economic slowdown. A consequentially favourable price means even greater investment, but momentum has slowed with gold reaching a USD1,800/oz marker (Recent moves in gold, Gold.org, July 2022).

16.3.3Currency

16.4Gold Price

16.4.1Historical Gold Price

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

16.4.2Forecast Gold Price

The gold price forecast of USD1,546/oz is conservative if corroborated against a long-term broker consensus gold price outlook (Figure 16-2).

16.4.3Harmony Group Gold Hedging Policy

Harmony has a hedging policy which is managed and executed at Group treasury level on-behalf of its operating entities. The key features of the hedging programme are as follows:

•the policy provides for hedging (or forward selling) up to a maximum of 20% of expected gold production for a rolling 24-month period;

•the policy has no minimum quantity that should be hedged, and if an attractive margin above cost cannot be achieved (i.e., in a low gold price environment) then no hedges are entered into;

•Harmony enters into ZAR-denominated gold hedges for its South African operations (for the non-South African assets it enters into USD-denominated hedges);


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Figure 16-1: Graph of Annual Gold Price History – ZAR/kg

Figure 16-2: Graph of Consensus View of Forecast Gold Price


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•Tshepong Operations does not enter into hedges in its own name but delivers bullion to Rand Refinery for refining on behalf of Harmony. Rand Refinery is one of the world’s largest single-site precious metals refining and smelting complex in the world. Rand Refinery refine all of Harmony’s gold to at least 99.5% purity, and acting as agent, sells the gold on the daily spot London fixing price and make payment to the Harmony two days later;

•Tshepong Operations does its mine planning and financial forecasts based on the estimated future gold price provided by the Group treasury, but its year-end actual financial results reflect the received gold price inclusive of the benefit of the hedging programme. Therefore, in theory, Tshepong Operations receives a hedged gold price for a maximum of 20% of its gold sales with the balance attracting the spot price.

16.5Commentary on Market Studies

Harmony has a relatively conservative gold hedging policy in place, and this is used to take advantage of the movements in the gold price to maximise the average gold price received, with the benefit of this hedging programme flowing through to Tshepong Operations.

16.6Material Contracts

Harmony has contractual vendor agreements with various service providers and suppliers. The most significant current contracts supporting the Tshepong-Phakisa operation are listed in Table 16-1. All of the contracts are currently valid and in good standing. Terms, rates and charges of contracts are considered consistent with industry norms. Contract management processes are in place and resourced so that contracts re-tendered and/or renewed as they approach expiry.

Table 16-1: Material Contracts


Vendor Name			Nature of Service / Supply
Axis Mining & Construction cc			Underground Support services
Transnet Limited (t/a Spoornet)			Rail transportation of ore and waste
Genflo Mine Vacuum Systems SA (Pty) Ltd			Shaft Bottom Cleaning at Nyala Shaft
Bidvest Protea Coin (Pty) Ltd			Security services
Lesedi Drilling & Mining Company (Pty) Limited			Underground diamond drilling at Phakisa and Tshepong operations

As with all major businesses, Harmony and Tshepong Operations enters into a multitude of vendor agreements for the provisions of supplies and services. These agreements are entered into on a competitive basis and typically are of a medium-term duration all with clauses providing for periodic updating of pricing, annual (or other) renewal or termination.


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17Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Section 229.601(b)(96) (17) (i-vii)

The South African Government has an extensive legal framework within which mining, environmental and social aspects of the industry are managed. Harmony and its Tshepong Operation is primarily regulated and managed by certain principal Acts (as listed in Section 17.3) as well as corporate policies, management systems and certain industry-wide guidelines, including:

•Energy Efficiency and Climate Change Policy;

•Environmental Policy;

•Harmony Water Management Strategy;

•Biodiversity and Rehabilitation Position Statement;

•Socio-Economic Transformation Policy; and

•Corporate Social Responsibility Policy.

17.1Results of Environmental Studies

The Tshepong Operations have prepared multiple environmental impact assessments (“EIA”) for regulatory approval, which under the current legal framework, require stakeholder engagement. The most recent EIA was undertaken in 2022. The results of the studies have been incorporated into the Harmony business planning process. The results of all the studies are too voluminous to include in this TRS and therefore the reader is directed to EMP PAR (Environmental Management Programme Performance Assessment) Harmony Tshepong, Matjhabeng and ARM(Reference Number FS 30/5/1/2/2/84MR).

Harmony is committed to maintaining good relationships with regulatory authorities, industries, communities, business partners and surrounding stakeholders.

17.2Waste and Tailings Disposal, Monitoring & Water Management

Harmony's overall tailings management strategy is to ensure robust, meticulous engineering and dam design, along with a continual focus on management of risks through layered assurance and oversight. The focus areas include, but are not limited to:

•freeboard control;

•water management;


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•maintaining stability and the safety factor as advised by the engineer of record;

•erosion controls; and

•monitoring and control measures implemented to ensure continued compliance (including regular inspections, audits, and meetings on varying intervals with subsequent actions, minutes and reports).

As part of its mining, environmental and water approvals and licences, Harmony is required to implement monitoring programmes and plans to establish the operations impact on the environment. The compliance limits for the monitoring variable are included in the applicable EMPR(s), WUL(s) and environmental authorisations. The environmental monitoring implemented at Tshepong includes:

•ground and surface water monitoring

•biodiversity monitoring;

•waste classification and quantification;

•integrated waste and water management plan (“IWWMP”) updates;

•water balance reviews;

•licence and authorisation compliance reviews; and

•air quality (i.e., noise and dust) and greenhouse gas emissions ("GHG") monitoring.

A focus area during the next financial year will be on creating effective awareness and implementation of its waste and waste management procedures such as the IWWMP. This plan provides water conservation management measures to help reduce the demand for water from external and natural sources.

17.3Permitting and Licences

In respect of environment, the following national Acts and the regulations promulgated thereunder provide the regulatory framework for mine permitting and licencing in South Africa:

•Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”);

•National Environmental Management Act, 1998 (“NEMA”);

•National Environmental Management: Waste Act, 2008 (“NEM:WA”);

•National Environmental Management: Air Quality Act, 2004 (“NEM:AQA”); and

•National Water Act, 1998 (“NWA”).

A summary of the status of environmental permits and licences issued at the effective date related to the Tshepong Operations is presented in Table 17-1.

All relevant mining, environmental and water-use permits are in place that cover the environmental, archaeological, and hydrological components of the Tshepong Operation. All permits are audited regularly for compliance and no material risks to the operations have been identified.

There are applications submitted or being considered by the relevant authorities to ensure compliance and alignment with operations LOM requirements. To this end, Water Use Licence Applications were submitted / lodged in 2020 with DWS. Environmental Management Programme Amendments were submitted / lodged in 2019 with DMRE. Tshepong Operations are awaiting approval from the regulator at the effective date of this TRS. These pending environmental permits and licences do not pose a material risk to the continuation of the operation.


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Table 17-1: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Environmental Management Programme

FS 30/5/1/2/3/2/1(84)EM

DMRE

16-Apr-10

LOM

Environmental Management Updated

FS 30/5/1/2/2/84MR

DWAFEC

Pending Approval Submitted in 2019

LOM

Water Permit 936B. Harmony. Free State Geduld Mines. Discharge of untreated effluents

B33/2/340/31

DWAFEC

02-Apr-81

LOM

Water Permit 870B. Harmony. Discharge of untreated effluents.

B33/2/340/25

DWAFEC

27-May-91

LOM

Water Permit 1214N. Free State Consolidated Gold Mine. Tshepong, Freddie’s and Phakisa shafts.

B33/2/340/12

DWAFEC

Not indicated.

LOM

Notes: DWAFEC - Department of Water Affairs, Forestry and Environmental Conservation, DWA - Department of Water Affairs.

17.4Local Stakeholder Plans and Agreements

•contribute to areas that will have the most meaningful socioeconomic impact on communities, namely infrastructure, education and skills development, job creation and entrepreneurial development;

•enhance broad-based local and community economic empowerment and enterprise development initiatives;

•facilitate socio-economic development in local communities by means of social and labour plan(s) (“SLP”) and corporate social responsibility programmes;

•support arts, culture, and sports and recreation; and

•build relationships based on trust within host communities.

In South Africa, mining companies are required to have a SLP, which forms an important component of Harmony's community investment plan. It sets out the Company’s obligation to develop and implement comprehensive human resource development programs, community development plans, housing and living condition plans and employment equity plans. The aim of the SLP is to ensure the uplift of the social and economic circumstances of local communities surrounding the mine. The SLP is a prerequisite to securing and maintaining a mining right, with progress required to be reported annually.

Harmony has budgeted to spend approximately ZAR148.8m over the next five years (2018-2022) to meet its SLP commitments.

17.5Mine Closure Plans

Harmony appointed Digby Wells and Associates (South Africa) (Pty) Ltd, independent environmental consultants, to review and update the Closure Cost Assessment for unscheduled closure associated with the Tshepong and Matjhabeng Mining Operations. The Matjhabeng Mining Operations is a Harmony operation, e located north of the town of Welkom in the Free State Province. The mine closure assessment was done in terms of regulation 53 and 54 of the MPRDA and in accordance with the requirements of NEMA. The closure cost as at 30 June 2022, was calculated to be approximately ZAR484.5m.

Harmony is required to make funding available in an amount equal to the cost of closure as determined under the MPRDA in the form of a trust fund and/or bank guarantees.


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17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals or Groups

Most of the required environmental authorisations are in place and only require amendments to be approved to reflect the planned infrastructure at Tshepong Operations.

17.7Local Procurement and Hiring

Portable skills are developed internally as well as through expanded learning programmes, learnerships and other programmes opened only to operating communities. Local procurement is being supported where there is a skills shortage. Some of the portable skills training offered to its employees include but not limited to basic plumbing, electrical appliance repair, welding, catering and baking, sewing and clothing manufacturing.

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Periodic inspections are conducted by the DMRE to verify compliance with applicable environmental laws, regulations, permits and standards. In addition, Tshepong Operations has implemented an EMS in line with the ISO 14001 standard. The EMS is audited on an annual basis by a third party and includes the needs and expectations of interested parties.

As part of Harmony, Tshepong Operations conducts its operation based on policies and systems that are aligned to its corporate sustainable development framework. Although Harmony is not a signatory to the International Council on Mining and Metals or the UN Global Compact, these form the guiding principles of the framework. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (“GRI”). Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (“CDP”) for both climate change and water. The CDP runs the global environmental disclosure system that supports companies to measure and manage their risks and opportunities on climate change, water security and deforestation.

Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.


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18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Economic parameters for the Harmony Group, including capital and operating costs, are determined, and signed off by the CODM, before distribution to the business units, including Tshepong Operations. The capital and operating costs are reported in ZAR terms and on a real basis. Rounding of figures may result in minor computational discrepancies.

18.1Capital Costs

The estimated capital costs for Tshepong Operations are reported according to costs associated with major equipment outside the main operating sections which is termed AE, infrastructure development, as well as operating capital, as presented in Table 18-1.

18.2Operating Costs

A summary of the direct and indirect operating costs for Tshepong Operations are presented in Table 18-2. Operating costs are based on historic performance while applying any changes expected within the new financial year (such as electricity requirements, increased/decreased labour) and are used as an input into the Tshepong Operations’ cash flow model.

18.3Comment on Capital and Operating Costs

The capital and operating cost estimates for Tshepong Operations are based on actual historical data, as well as budget forecasts. Therefore, the forecasted costs are reliable, and at minimum meet the confidence levels of a Pre-Feasibility Study. This approach of estimating capital and operating costs is consistent with industry practice. A record of the forecast and budget costs is maintained by the operation, allowing for an assessment of the alignment of the forecast and actual costs.

Table 18-1: Summary of Capital Cost Estimate for Tshepong Operations


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2030)
AE			302,068
Shaft Projects			227,797
Major Projects			400,470

Total			930,335
OCD			2,565,792
Total (including OCD)			3,496,125

Table 18-2: Summary of Operating Cost Estimate for Tshepong Operations


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2030)
Mining			14,280,664
Services			4,299,907
Medical Hub / Station			781,819
Engineering			12,794,649


Total Direct Costs			32,157,038
Mine Overheads			1,652,395
Royalties			463,002
Ongoing Capex			2,565,792
Total Cost			36,838,228


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19Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

19.1Key Economic Assumptions and Parameters

The CODM forms, reviews, signs-off and distributes economic assumptions to its various business units. On an annual basis, during the period October to November, long-term commodity prices and exchange rates forecasts’, are received from various financial institutions. In addition, a specialist in Economics from a reputable economics company based in South Africa, provides expert views on the global markets, forward looking commodity prices, exchange rates, consumer price index, production price index, electricity cost and consumable increases. All factors are analysed, cognisance is taken of the requirements of the NYSE and JSE markets, and a proposal is presented to the CODM for recommendation and approval. These assumptions are then applied at Tshepong Operations, along with specific operational considerations.

19.1.1Gold Price

The proposed gold price (USD1,546/oz) is the price that is used by Harmony for the Tshepong Operations annual planning cycle and forms the basis for the spot gold price assumptions used in the Tshepong Operations cashflow. The reader is referred to Figure 16-2 for the consensus forecast gold price. The conversions used in the calculation of the various gold prices is presented in Table 19-1.

Table 19-1: Conversions Used in Gold Price Calculations


Economic Factors	Gold Price (USD/oz)	Conversion Factor (oz/kg)	Exchange Rate (ZAR:USD)	Gold Price (ZAR/kg)
2022 Mineral Resource	1,723	32.15	15.35	850,191
2022 Mineral Reserve	1,546	32.15	15.35	763,000
2023 gold price forecast¹	1,546	32.15	15.35	763,000
Notes: 1. The forecast gold price as used in the Tshepong Operations cash flow.

19.1.2Exchange Rate

The minimum and maximum ZAR:USD exchange rate for the year 2020 Q4 to year 2024 is displayed in Figure 19-1. The long-term exchange rates are considered from year 2025 onwards. The volatility in the ZAR has continued against the USD resulting in the ZAR:USD exchange rate fluctuating between ZAR16.46:USD - ZAR17.24:USD in the short term. Forecasts as advised from various financial institutions show that the ZAR/USD is expected to trade in a range of ZAR16.36:USD - ZAR18.20:USD for the period 2021 to 2024 with a long-term outlook of ZAR17.27:USD.

In addition, the CODM has reviewed the ZAR:USD exchange rate performance over the past three years, for the period June 2018 - June 2021 (Table 19-2). The proposed spot exchange rate of 15.35 ZAR:USD is the exchange rate that is used by Harmony for the Tshepong Operations’ annual planning cycle and forms the basis for the ZAR:USD exchange rate assumptions used in the Tshepong Operations’ cashflow.

Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)


Period			Average Exchange Rate (ZAR:USD)
July 2019 to June 2020			15.68
July 2020 to June 2021			15.41
July 2021 to June 2022			14.75
3-Year Ave. (not weighted)			15.28

19.1.3Royalties

Royalty is an expense paid to the government of South Africa and is accounted for in the Tshepong Operations cash flow models. In terms of the mining ring-fencing application, each ring-fenced mine is treated separately, and deductions can normally only be utilised against mining income generated from the relevant ring-fenced mine.


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Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast

19.1.4Taxes

Mining tax on gold mining taxable income in South Africa is determined according to a formula, based on the taxable income from mining operations. Of that, 5% of total revenue is exempt from taxation while the remainder is taxable at a higher rate (34%) than non-mining income (28%). Accounting depreciation is eliminated when calculating the South African mining tax income. Excess capital expenditure is carried forward as unredeemed capital to be claimed against future mining taxable income.

19.1.5Summary

The key assumptions used in the cash flow are summarised for the Tshepong Operations in Table 19-3.

Table 19-3: Key Economic Assumptions and Parameters for Tshepong Operations Cash Flow


Parameter	Unit	Value
Production Rate	tpm	97 087
Gold Recovery	%	95,03
Royalty	% of xx	0,05
Tax Rate	%	Formula
Gold Price	ZAR/kg	763 000
Exchange Rate	USD:ZAR	Variable
Discount Rate	%	9,00


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19.2Economic Analysis

Harmony's respective business units and its associated operating sites consider the economic assumptions discussed in Section 19.1 during their respective planning and analysis processes. The past year’s average gold price is used for testing purposes. A spot price of ZAR763,000/kg is used for forecasting the revenue of the Tshepong Operations cash flow (Table 19-4).

The discounted cash flow model is used to calculate the Net Present Value (“NPV”) of the investments. The NPV for the spot metal price, for Tshepong Operations is approximately ZAR1,890Bn, at a discount rate of 9%. The NPV is calculated on a cash flow that accounts for factors such as:

•mining and ore processing working costs;

•royalty payments;

•capital costs, including costs allocated to ongoing development;

•any significant project work considered as major projects; and

•costs deemed as abnormal expenditure.

19.3Sensitivity Analysis

The sensitivity analysis is completed for variations in commodity price (ZAR/kg), total operating costs, which include capital costs and royalties paid (ZAR); and a combined analysis considering variations in commodity price, total operating costs, and changes in production. Capital investments in Tshepong Operations are relatively low and not expected to have any significant impact on the NPV and therefore not included in a sensitivity analysis. The base case in the analysis below is the economic results emanating from the LOM plan (Table 19-4).

The sensitivity analysis (Table 19-5 and Table 19-6) is based on a change in a single assumption while holding all other assumptions constant. In practice, this is unlikely to occur, as risks and/or opportunities will have an impact on the cash flows, and changes in some of these assumptions may be correlated. The insights that can be provided by this sensitivity analysis is that Tshepong Operations is most sensitive to gold price, closely followed by changes in costs.

The impact of one or a combination of risks and opportunities occurring at the same time cannot be specifically quantified so an analysis considering multi-parameters is considered. In this way the general risks, with the aid of the sensitivity table (Table 19-7) are adequately covered. The sensitivity analysis considering the 3 variations of gold price (ZAR/kg), operating costs (ZAR) and variation in production (kg Au) show that the lowering of working costs, improvement in productivity and the benefits of a higher gold price can have positive impacts on the Tshepong Operations Mine.


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Table 19-4: Tshepong Operations Cash Flow


Item	Units	LOM Total	FY2023	FY2024	FY2025	FY2026	FY2027	FY2028	FY2029	FY2030
Mining advance	m2	2,443,933	312,088	340,790	342,008	351,654	348,732	347,533	304,550	96,578
Total OCD	m	64,352	13,475	17,129	14,384	8,906	6,620	3,321	476	42
Milled tons	t '000	9,292	1,165	1,302	1,313	1,339	1,329	1,318	1,139	386
Yield	g/t	5.802	5.74	5.87	5.80	5.77	5.83	5.73	5.68	6.42
Gold recovered	kg	53,908	6,682	7,638	7,612	7,735	7,747	7,547	6,465	2,481
Revenue	ZAR'000	41,131,959	5,098,712	5,828,031	5,807,932	5,901,598	5,910,682	5,758,729	4,933,137	1,893,137
Total operating costs	ZAR'000	36,375,227	5,214,465	5,294,906	5,310,750	5,060,488	4,984,836	4,761,923	4,177,358	1,570,501
Capital (including OCD)	ZAR'000	3,695,988	841,040	964,425	794,242	474,380	361,547	208,688	50,647	1,020
Royalty	ZAR'000	463,001	25,494	29,140	29,040	60,667	97,168	103,518	82,698	35,277
Total costs (including capital and royalty)	ZAR'000	37,968,424	5,524,667	5,663,810	5,550,323	5,242,549	5,162,669	4,928,195	4,290,433	1,605,778
Profit (after OCD and capital)	ZAR'000	3,163,535	-425,954	164,222	257,608	659,049	748,012	830,534	642,704	287,359
NPV - (low discount rate - 9%)	@9%	1,890,421
NPV - (medium discount rate - 12%)	@12%	1,604,802
NPV - (high discount rate - 15%)	@15%	1,366,487


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Table 19-5: Gold Price Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
10%	53,908	840,000	45,282,890	37,968,423	7,314,467	4,264,034
5%	53,908	800,000	43,126,562	37,968,423	5,158,139	2,882,615
LOM plan	53,908	763,000	41,131,959	37,968,423	3,163,535	1,890,421
-5%	53,908	726,000	39,137,355	37,968,423	1,168,932	326,989
-10%	53,908	686,000	36,981,027	37,968,423	-987,396	-1,054,431

Table 19-6: Total Operating Cost Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
10%	53,908	763,000	41,131,959	41,765,266	-633,307	-837,803
5%	53,908	763,000	41,131,959	39,866,845	1,265,114	526,309
LOM plan	53,908	763,000	41,131,959	37,968,423	3,163,535	1,890,421
-5%	53,908	763,000	41,131,959	36,070,002	5,061,957	3,254,533
-10%	53,908	763,000	41,131,959	34,171,581	6,960,378	4,618,645

Table 19-7: Gold price, Operating Costs, and Production Variation Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
10%	59,299	840,000	49,811,179	41,765,266	8,045,914	4,802,918
5%	56,604	801,150	43,188,557	39,866,845	3,321,712	1,984,942
LOM plan	53,908	763,000	41,131,959	37,968,423	3,163,535	1,890,421
-5%	51,213	724,850	39,075,361	36,070,002	3,005,359	1,795,900
-10%	48,517	686,700	37,018,763	34,171,581	2,847,182	1,701,379


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20Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

Tshepong and Phakisa are 100% owned by Harmony and collectively form the Tshepong Operations. The Tshepong Operations are bounded to the north by the dormant Jeanette Mine and the present-day Target Mine. The Phakisa Mine lies to the south-east of the Tshepong Mine. The Eland Mine is located south-east of Phakisa, while the Welkom 4 Shaft is further south from the Phakisa Mine.


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21Other Relevant Data and Information

Section 229.601(b)(96) (21)

Other relevant data and information pertaining to Tshepong Operations is the Sub 75 Capital Project. The objective of this capital project is to extend development below the current working level to 77 level and access higher grades at depth. Tentative timelines include a project kick-off in Q4 2021 and an envisaged completion in Q4 2025. The project is critical in grade control over the LOM plan.

Sub 75 project has been stopped for FY23 LOM.

Other relevant information includes the public disclosure reports on Tshepong Operations operational, financial and environmental performance are available on the Company’s corporate website. The following reports are relevant to this TRS:

•Integrated annual report 2021;

•ESG report 2022;

•Financial report 2022;

•Report to shareholders 2022;

•Operational report 2022; and

•TCFD report.


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22Interpretation and Conclusions

Section 229.601(b)(96) (22)

The Tshepong and Phakisa mine were merged into a single operation in 2017 and are now collectively called the Tshepong Operations. Tshepong Operations are well-established with Tshepong having been in operation since 1986, and Phakisa since 1994. Harmony acquired the operations in 2001.

Harmony has no known risks to conduct mining activities over the permitted mining rights’ areas, incorporated as Tshepong Operations. In addition, no known risks are posed over surface access and activities, regarding mining related activities.

The Tshepong Operations’ regional geological setting, mineralisation and deposit is well understood. The geology is supported by historical geophysical surveys, surface diamond core drilling and underground channel (chip) sampling and mapping. Economic mineralisation occurs in the Basal Reef and B Reefs . The former is mind at both Tshepong and Phakisa, while the latter is only mined at Tshepong.

The sampling approach and management, density assumptions, laboratory procedures, and assaying and analysis are in keeping with industry standards and practices and is appropriate for the mineralisation at the Central Rand Group. The holistic understanding of the regional geology, lithological and structural controls of the mineralisation at Tshepong Operations is sufficient to support the estimation of Mineral Resources.

Gold bearing ore mined at Tshepong Operations is processed at the Harmony One Plant facility which has been in operation since 1986. As such, the processing method is considered well established for the mineralisation at the Tshepong Operations. The plant makes use of historical trends and data as a basis for their recoveries of Basal and B reefs.

The combined Measured and Indicated Mineral Resource, exclusive of Mineral Reserves, for the Phakisa Mine, as at 30 June 2022 is 12.005Mt at a grade of 12.05g/t, containing 4.650Moz of gold, and the Inferred Mineral Resource contains 27.491Mt at a gold grade of 10.77g/t, containing 9.515Moz of gold.

The combined Measured and Indicated Mineral Resource, exclusive of Mineral Reserves, for the Tshepong Mine, as at 30 June 2022 is 16.462Mt at a grade of 11.66g/t, containing 6.173Moz of gold, and the Inferred Mineral Resource contains 9.434Mt at a gold grade of 10.18g/t, containing 3.088Moz of gold.

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and operational mine planning processes. Mine planning utilises and takes into consideration actual historical technical parameters. In addition, conversion of the Mineral Resources to Mineral Reserves considers Modifying Factors, dilution, ore losses, minimum mining widths, planned mine call and plant recovery factors.

The Mineral Reserves for the Phakisa Mine, as at 30 June 2022 is 3.935Mt of milled ore at a grade of 6.96g/t, containing 0.880Moz and comprise of 96% Proved Reserves and 4% Probable Reserves. While the Mineral Reserves for the Tshepong Mine, as at 30 June 2022 is 4.493Mt of milled ore at a grade of 5.34g/t, containing 0.771Moz and comprise of 89% Proved Reserves and 11% Probable Reserves

Tshepong Operations are currently mining profitably, and the NPV shows a positive result. Any by-products that are recovered as part of the refining process, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimates. There are no obvious material risks that could have significant effect on the Mineral Reserves.

The Mineral Reserves are extracted via the SGM method, with minor undercut and open stoping methods being the Tshepong Mine. Mining methods take into consideration the mining and rock engineering design guidelines. The integrated selection of the mining method increases flexibility, safety and minimises seismic events.

Extracted minerals from the Tshepong Operations are recovered at the Harmony One Plant. The metallurgical process is well-tested technology, based on sound historic operating parameters.


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The mine’s regional and local infrastructure is capable of fully supporting the mining and surface related activities. Tshepong Operations is accessed via national and provincial road networks, has key power transmission and distribution networks provided by the National electricity regulator, water supply networks and communication infrastructure. Overall, Tshepong Operations are well-established with sufficient logistics and infrastructure support for the existing and planned mining operations.

Harmony and Tshepong Operations are exposed to market risks such as exchange rate and gold price fluctuations which are partially offset by the Harmony Group hedging policy. The hedging programme considers factors effecting the global gold market and these, along with macro-economic conditions, are used to determine planning and forecasting inputs at group level for all of Harmony’s operating business units. Other non-gold related risks are addressed to some extent by Tshepong Operations entering into vendor agreements for the provisions of supplies and services which are done on a competitive basis with customary price adjustment, renewal and termination clauses.

To successfully operate a mining operation in South Africa the state requires compliance with applicable environmental laws, regulations, permits and standards. Tshepong Operations adheres to said compliance and regulatory standards and have, in addition, implemented an Environmental Management System in line with the ISO 14001.

As part of Harmony, Tshepong Operations conducts its operations based on policies and systems that are aligned to its corporate sustainable development framework. This is guided by the principles of the framework from the International Council on Mining and Metals or the UN Global Compact. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative. Further to this, Harmony discloses environmental information on the Carbon Disclosure Project for both climate change and water.

Harmony has a good understanding of the environmental and social aspects through baseline and specialist studies previously conducted. Risk management and mitigation measures were adequately addressed in the environmental management plans. Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure at Tshepong Operations. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.

One of the ways Harmony aims to grow and develop the people and assets and provide sustainable value to all stakeholders is through economic regeneration.

The economics of Tshepong Operations is based on the discounted cash flow model, with a metal price of ZAR763,000/kg. The NPV for the metal price, is ZAR1,890Bn, at a discount rate of 9%. The NPV is calculated on cash flow that takes factors such as: capital and operating costs; and royalties. The capital and operating cost estimates for Tshepong Operations are based on historical data, as well as budget forecasts. This estimation technique allows for the forecast and actual costs to be aligned.

Royalties and taxes are paid to the South African government and accounted for in the Tshepong Operations cash flow and NPV analysis. There are also specific tax relief benefits that apply to gold mining companies, where 5% of total revenue is exempt from taxation, amongst other benefits. In addition, in response to challenges faced by companies during the COVID-19 pandemic, the government have implemented various stimulus packages to provide some tax relief to companies.

The economics of Tshepong Operations are tested for its sensitivity to commodity price (ZAR/kg), operating costs (ZAR) gold production (kg). The insights provided by the sensitivity analysis is that Tshepong Operations is most sensitive to changes in the gold price (ZAR/kg), closely followed by changes in total operating costs (ZAR).

This TRS was prepared by a team of experienced professionals. The TRS provides a summary of the material scientific and technical information concerning the mineral exploration, Mineral Resources, Mineral Reserves, and associated production activities of the mineral asset, including references to the valuation for Tshepong Operations. Each QP was responsible for specific sections of this TRS which they have personally supervised and reviewed. This TRS contains the expression of the QP opinions, based on the information available at the time of preparation.


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23Recommendations

Section 229.601(b)(96) (23)


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24References

Section 229.601(b)(96) (24)

Dankert, B.T., and Hein, K.A.A., 2010. Evaluating the structural character and tectonic history of the Witwatersrand Basin. Precambrian Research 177, 1–22.

https://www.gold.org/goldhub/data/gold-prices. Accessed 22 July 2022.

Robb, L.J., and Meyer, F., 1995. The Witwatersrand Basin, South Africa: Geological framework and mineralisation processes. Ore Geology Reviews, 10(2), 67-94.

Robb, L.J., Robb, V.M., 1998. Gold in the Witwatersrand Basin. In: Wilson, M.G.C., Anhaeusser, C.R. (Eds.), The Mineral Resources of South Africa. Handbook. Council for Geoscience, 294–349.

South African Revenue Services. (2021, July 29). South African Revenue Services. Retrieved from Tax Relief Measures: https://www.sars.gov.za/media/tax-relief-measures/

World Gold Council. (2022, July 13). World Gold Council, Gold Hub, Gold mine production: Gold Production by Country | Gold Production | Goldhub


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25Reliance on Information Provided by the Registrant

Section 229.601(b)(96) (25)

Table 25-1: Other Specialists


Name	Specialist	Area of Responsibility	Association / Company
S Sabelo	HOD Geology	Geology	Tshepong
R du Toit	Section Valuator	Valuation and Estimation	Tshepong Operations
H Groenewald	Section Planner	Mine planning and design	Tshepong
R du Bruin	Senior Planner	Mine planning and design	Tshepong
G van Zyl	Financial Manager	Finance and costing	Tshepong Operations
J Powell	Geostatistician	Geostatistics Central	Central
T Nthejane	Senior Engineer	Engineering	Tshepong
J van der Merwe	Rock Engineer	Rock engineering	Tshepong
L Lochner	Rock Engineer	Rock engineering	Phakisa
J Van Heerden	Senior Engineer	Engineering	Phakisa
B Erasmus	Financial Manager	Finance and costing	Tshepong Operations
C Mokoena	Cost Accountant	Finance and costing	Tshepong Operations
C Pienaar	HOD Geology	Geology	Phakisa
B Reinders	Senior Valuator	Valuation and Estimation	Phakisa
A Oosthuizen	Senior Hygienist	Occupational, Environmental, Ventilation	Tshepong Operations
R Panther	Section Planner	Mine planning and design	Phakisa


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HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Joel Mine

Free State Province, South Africa

Effective Date: 30 June 2022

Final Report Date: 15 July 2022


			Technical Report Summary for Joel Mine, Free State Province, South Africa


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.


Effective Date: 15 July 2022 i


			Technical Report Summary for Joel Mine, Free State Province, South Africa

Signature Page

/s/ Fhulufhelo Muthelo

___________________________________

Ms Fhulufhelo Muthelo

BSc. (Hons) Geol, GDE

SACNASP (No. 117314)

Ore Reserve Manager, Joel Mine

Harmony Gold Mining Company Limited

Effective Date: 30 June 2022

Final Report Date: 15 July 2022


Effective Date: 30 June 2022 i


			Technical Report Summary for Joel Mine, Free State Province, South Africa

List of Contents


1	Executive Summary			1
2	Introduction			6
3	Property Description and Location			7
	3.1	Mineral Tenure		7
	3.2	Property Permitting Requirements		7
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			10
	4.1	Accessibility		10
	4.2	Physiology and Climate		10
	4.3	Local Resources and Infrastructure		10
5	History			11
	5.1	Historical Ownership and Development		11
	5.2	Historical Exploration		13
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		13
	5.4	Past Production		14
6	Geological Setting, Mineralisation and Deposit			16
	6.1	Regional Geology		16
	6.2	Local Geology		16
	6.3	Property Geology		19
	6.4	Structure		20
	6.5	Mineralisation		20
	6.6	Deposit Type		23
	6.7	Commentary on Geological Setting, Mineralisation and Deposit		23
7	Exploration			24
	7.1	Geophysical Surveys		24
	7.2	Underground mapping		24
	7.3	Topographic Surveys		24
	7.4	Channel sampling method and sample quality		24
	7.5	TSF Surface Drilling Campaigns, Procedures and Results		26
		7.5.1	Drilling Methods	26
		7.5.2	Collar and Downhole Surveys	26
		7.5.3	Logging Procedure	26
		7.5.4	Drilling Results	27
		7.5.5	Sample Recovery	27
		7.5.6	Sample Length and True Thickness	30
	7.6	Underground drilling campaigns , Procedure and Results		30
		7.6.1	Drilling Methods	30
		7.6.2	Collar and Downhole Surveys	30
		7.6.3	Logging Procedure	31
		7.6.4	Drilling Results	31
		7.6.5	Sample Recovery	31
		7.6.6	Sample Length and True Thickness	32
	7.7	Hydrogeology		32
	7.8	Geotechnical Data		32
	7.9	Commentary on Exploration		32
8	Sample Preparation, Analyses and Security			33
	8.1	Sampling Method and Approach		33
		8.1.1	Channel Samples	33
		8.1.2	Core Samples	33
	8.2	Density Determination		33
	8.3	Sample Security		34


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


	8.4	Sample storage		34
	8.5	Laboratories used		34
	8.6	Laboratory Sample Preparation Procedures		34
	8.7	Assaying and Analytical Procedures		34
	8.8	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)		35
		8.8.1	Standard	35
		8.8.2	Blank	35
		8.8.3	Duplicate	35
	8.9	Commentary on Sample Preparation, Analyses and Security		36
9	Data verification			37
	9.1	Databases		37
	9.2	Data Verification Procedures		37
	9.3	Limitations to the Data Verification		37
	9.4	Comment on Data Verification		37
10	Mineral Processing and Metallurgical Testing			38
	10.1	Extent of Processing, Testing, and Analytical Procedures		38
	10.2	Test Results and Recovery Estimates		38
	10.3	Degree of Representation of the Mineral Deposit		38
	10.4	Commentary on Mineral Processing and Metallurgical Testing		38
11	Mineral Resource Estimate			40
	11.1	Geological Database		40
	11.2	Global Statistics		40
	11.3	Geological Interpretation		40
		11.3.1	Structural Wireframe Model	42
	11.4	Drill Hole De-survey		42
	11.5	Composition		42
	11.6	Capping		42
	11.7	Experimental Semi-Variograms and Fitted Models		43
	11.8	Block Model		43
	11.9	Mineral Resource Estimation Methods		43
	11.10	Density Assignment		44
	11.11	Block Model Validation		44
	11.12	Mineral Resource Evaluation		46
	11.13	Mineral Resource Classification and Uncertainties		46
	11.14	Mineral Resource Estimate		47
	11.15	Audits and review		48
	11.16	Mineral Resource Reconciliation		50
	11.17	Commentary on Mineral Resource Estimate		50
12	Mineral Reserve Estimate			51
	12.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve		51
	12.2	Modifying Factors		51
	12.3	Mineral Reserve Estimate		52
	12.4	Mineral Reserve Reconciliation		52
	12.5	Commentary on Mineral Reserve Estimate		52
13	Mining Method			53
	13.1	Mining operation		53
		13.1.1	Scattered Mining	53
	13.2	Mine Design		55
		13.2.1	Mining Design parameter	55
	13.3	Mine Plan Development and LOM Schedule		56
	13.4	Geotechnical and Hydrological Considerations		57


Effective Date: 30 June 2022 iii


			Technical Report Summary for Joel Mine, Free State Province, South Africa


	13.5	Dilution and Grade Control		57
	13.6	Ore Transport		57
	13.7	Mining Equipment and Machinery		60
	13.8	Mining Personnel		60
	13.9	Commentary on Mining Method		61
14	Processing and Recovery Methods			62
	14.1	Mineral Processing Description		62
	14.2	Plant Throughput, Design, Equipment Characteristics and Specifications		64
	14.3	Energy, Water, Process Material and Personnel Requirements		64
		14.3.1	Energy	64
		14.3.2	Water	64
		14.3.3	Process material	64
	14.4	Personnel		64
	14.5	Commentary on the Processing and Recovery Methods		64
15	Infrastructure			66
	15.1	Surface Infrastructure		66
		15.1.1	Ore and Waste Rock Storage Facilities	66
		15.1.2	Tailings Storage Facilities (Depositional TSFs)	66
		15.1.3	Rail	66
		15.1.4	Pipelines and Conveyors	66
	15.2	Underground infrastructure		66
		15.2.1	Shaft system	72
		15.2.2	Ventilation	72
		15.2.3	Pumping and Water Reticulation	72
	15.3	Power and Electrical		73
	15.4	Water Usage		73
	15.5	Logistics and Supply		73
	15.6	Commentary on Infrastructure		73
16	Market Studies			74
	16.1	Market Overview		74
	16.2	Global Production and Supply		74
		16.2.1	New Mine Production	74
		16.2.2	Recycling	74
	16.3	Global Consumption and Demand		74
		16.3.1	Jewellery	74
		16.3.2	Investment	75
		16.3.3	Currency	75
	16.4	Gold Price		75
		16.4.1	Historical Gold Price	75
		16.4.2	Forecast Gold Price	75
		16.4.3	Harmony Group Gold Hedging Policy	75
	16.5	Commentary on Market Studies		77
	16.6	Material Contracts		77
17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			78
	17.1	Results of Environmental Studies		78
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		78
	17.3	Permitting and Licences		79
	17.4	Local Stakeholder Plans and Agreements		80
	17.5	Mine Closure Plans		81


Effective Date: 30 June 2022 iv


			Technical Report Summary for Joel Mine, Free State Province, South Africa


	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals or Groups		81
	17.7	Local Procurement and Hiring		81
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		81
18	Capital and Operating Costs			82
	18.1	Capital costs		82
	18.2	Operating costs		82
	18.3	Comment on Capital and Operating Costs		82
19	Economic Analysis			84
	19.1	Key Economic Assumptions and Parameters		84
		19.1.1	Metallurgical Recoveries	84
		19.1.2	Gold Price	84
		19.1.3	Exchange Rate	84
		19.1.4	Royalties	85
		19.1.5	Capital Expenditure	85
		19.1.6	Operating Expenditure	85
		19.1.7	Working Capital	85
		19.1.8	Taxes	85
		19.1.9	Closure Cost and Salvage Value	86
		19.1.10	Summary	86
	19.2	Economic Analysis		86
	19.3	Sensitivity Analysis		88
20	Adjacent properties			90
21	Other Relevant Data and Information			91
22	Interpretation and Conclusions			92
23	Recommendations			94
24	References			95
25	Reliance on Information Provided by the Registrant			96


Effective Date: 30 June 2022 v


			Technical Report Summary for Joel Mine, Free State Province, South Africa

List of Figures


Figure 3-1: Location of Joel Mine in the Free State Goldfield			8
Figure 3-2: Mineral Tenure for Joel			9
Figure 5-1: Graph of Past Production – Tonnes and Grade			15
Figure 5-2: Graph of Past Metal Production			15
Figure 6-1: Geological setting of the Witwatersrand Basin			17
Figure 6-2: Stratigraphic Column of the Free State Goldfield			18
Figure 6-3: Schematic Cross-Section through the Joel Mine			20
Figure 6-4: Structural Geology at Joel			22
Figure 7-1: Location of Channel Samples in relation to Underground and Surface Drill Holes			25
Figure 7-2: Location of Surface and Underground Drill Holes			29
Figure 11-1: Location of the Mineral Resource Blocks Geozones			41
Figure 11-2: Distribution of Gold Grade at Joel			45
Figure 11-3: Location and Classification of Joel's Mineral Resources and Mineral Reserves for the Beatrix Reef			49
Figure 13-1: Plan View of the Scattered Mining Method and Grid Layout			54
Figure 13-2: Schematic Section of Typical Footwall and On-Reef Development			55
Figure 13-3: Graph of Joel LOM Plan - Tonnes and Grade			58
Figure 13-4: Graph of Joel LOM Plan - Gold Produced (kg)			58
Figure 13-5: Joel LOM Plan - Mining Block and Sequence Detail			59
Figure 14-1: Schematic Flow Diagram for Harmony One Gold Plant			63
Figure 14-2: Graph of Joel Historical Recovery Factor (18 month actual)			65
Figure 15-1: Joel Surface Layout and Infrastructure			67
Figure 15-2: Joel South Shaft Detailed Surface Infrastructure			68
Figure 15-3: Joel North Shaft Detailed Surface Infrastructure			69
Figure 15-4: Harmony One Plant Detailed Surface Infrastructure			70
Figure 15-5: Schematic Mine Design Layout for Joel			71
Figure 16-1: Graph of Annual Gold Price History – ZAR/kg			76
Figure 16-2: Graph of Consensus View of Forecast Gold Price			76
Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast			85


Effective Date: 30 June 2022 vi


			Technical Report Summary for Joel Mine, Free State Province, South Africa

List of Tables


Table 1-1:Summary of the Joel Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-8			2
Table 1-2: Summary of Joel Mineral Reserves as at 30 June 2022 1-5			3
Table 1-3: Summary of Capital Cost Estimate for Joel			4
Table 1-4: Summary of Operating Cost Estimate for Joel			4
Table 1-5: Status of Environmental Permits and Licences			4
Table 2-1: QP Qualification, Section responsibilities and Personal Inspections			6
Table 3-1: Summary of the Mineral Tenure for Joel Mine			7
Table 5-1: Summary of Historical Ownership Changes and Activities of Joel			12
Table 5-2:Summary of the Previous Joel Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)			13
Table 5-3: Summary of the previous Joel Mineral Reserves as at 30 June 2021			14
Table 7-1: Joel Surface Drilling Results			28
Table 7-2: Drill hole Acceptance Criteria			30
Table 8-1: Summary of Harmony Assay Laboratory SRM Performance			35
Table 11-1: Summary of the Gold Assay Descriptive Statistics			40
Table 11-2: Grade and CW Capping Parameters			43
Table 11-3: Harmony Economic Assumptions (30 June 2022)			46
Table 11-4: Joel Mineral Resource Classification Criteria			47
Table 11-5 :Summary of the Joel Mineral Resources as at 30 June 2022(exclusive of Mineral Reserves)1-8			48
Table 12-1: Joel Mineral Reserves Modifying Factors (30 June 2022)			51
Table 12-2: Summary of Joel Mineral Reserves as at 30 June 2022 1-5			52
Table 13-1: Joel Mine Design Parameters			56
Table 13-2: Mining Equipment			60
Table 13-3: Mining Personnel			60
Table 14-1: Key Design Parameters and Equipment Specifications			64
Table 14-2: Consumables			64
Table 14-3: Number of Personnel			64
Table 16-1: Material Contracts			77
Table 17-1: Status of Environmental Permits and Licences			80


Table 18-1: Summary of Capital Cost Estimate for Joel			82
Table 18-2: Summary of Operating Cost Estimate for Joel			83
Table 19-1: Conversions Used in Gold Price Calculations			84
Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)			84
Table 19-3: Key Economic Assumptions and Parameters for Joel Cash Flow			86
Table 19-4: Joel Cash Flow			87
Table 19-5: Gold Price Sensitivity Analysis			88
Table 19-6: Total Operating Cost Sensitivity			88
Table 19-7: Gold Price, Operating Costs, and Production Variation Sensitivity			89
Table 25-1: Other Specialists			96


Effective Date: 30 June 2022 ii


			Technical Report Summary for Joel Mine, Free State Province, South Africa

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
°			Degrees
°C			degrees Celsius
"			Inches
µm			Micrometres
3D			Three-dimensional
AE			Abnormal expenditure
AMIS			African Minerals Standards
AngloGold Ashanti			Anglo Gold Ashanti Limited
ARM			African Rainbow Minerals Limited
ARMGold			ARM Gold Division
Au			Gold
Avg.			Average
Beatrix			Beatrix Mine, owned and operated by Sibanye-Stillwater Limited
BMD			Below mine datum
c.			Approximately
CADSmineTM			Mineral resource management tool
CBA			Core bedding angle
CIP			Carbon-In-Pulp
cm			Centimetre
cmg/t			Centimetre grams per tonne
CoC			Certificate of Competency
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COP			Code of Practice
COV			Coefficient of Variation
CRG			Central Rand Group
CW			Channel width
DatamineTM			Datamine Studio RM or Datamine Studio OP
Digby Wells			Digby Wells Environment
DMRE			Department of Mineral Resources and Energy
DTM			Digital Terrain Model
DWS			Department of Water and Sanitation
EIA			Environmental Impact Assessment
EMPR			Environmental Management Programme
EMS			Environmental Management System
ESG			Environmental Social and Governance
ETF			Exchange traded fund
Excl.			Excluding
FAG mill			Fully autogenous mill
FY			Financial year
g			Gram
GHG			Greenhouse gas
GISTM			Global Industry Standard on Tailings Management
g/t			Grams per tonne
ha			Hectare
Harmony			Harmony Gold Mining Company Limited
HLS			Heavy Liquid Separation
Incl.			Including


Effective Date: 30 June 2022 ii


			Technical Report Summary for Joel Mine, Free State Province, South Africa


Joel			Joel Mine
kg			Kilogram
kg/sec			Kilogram per second
km			Kilometre
km2			Square kilometre
koz			Thousand troy ounces
LBMA			London Bullion Market Association
LOI			Loss on ignition
LOM			Life of Mine
Ltd			Limited
m			Metre
M			Million
MCC			Mining Charter Compliance
MCF			Mine Call Factor
MineralCorp			The Mineral Corporation Limited
Moz			Million troy ounces
MPRDA			Mineral and Petroleum Resources Development Act, 28 of 2002
Mt			Million tonnes
Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
MW			Megawatts
NEMA			National Environmental Management Act, 107 of 1998
No.			Number
NPV			Net present value
OCD			On-going capital development
OK			Ordinary kriging
OTC			Over the counter
oz			Troy ounce
oz/kg			Troy ounce per kilogram
Pty			Proprietary
QAQC			Quality Assurance/Quality Control
QEMSCAN			Scanning electron microscope
QP			Qualified Person
RAW			Return airway
RC			Reverse Circulation drilling
RCDD			Reverse Circulation Diamond Drilling
RD			Relative density
ROM			Run-of-Mine
SABLE			SABLE® Data Warehouse
SACNASP			South African Council for Natural Scientific Professions
SAMREC			The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves
SANAS			South African National Accreditation System
SD			Standard deviation
SEC			Securities and Exchange Commission
SG			Specific gravity
SGS			SGS South Africa (Pty) Limited
SLP			Social Labour Plan
SMK			Simple macro kriging
SR			Slope of Regression
SRM			Standard Reference Material
t			Metric tonne


Effective Date: 30 June 2022 ii


			Technical Report Summary for Joel Mine, Free State Province, South Africa


TCFD			Task Force on Climate-Related Financial Disclosure
t/m3			Tonne per cubic metre
tpd			Tonnes per day
TMS			Trace mineral search
TRS			Technical Report Summary
TSF			Tailings storage facility
UCS			Unilateral compressive strength
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
WUL(s)			Water Use Licence(s)
XRD			X-ray diffraction
ZAR			South African Rand
ZAR/kg			South African Rand per kilogram


Effective Date: 30 June 2022 iii


			Technical Report Summary for Joel Mine, Free State Province, South Africa

Glossary of Terms


Term			Definition
Co-kriging			A method that is used to predict the value of the point at unobserved locations by sample points that are known to be spatially interconnected by adding other variables that have a correlation with the main variable or can also be used to predict 2 or more variables simultaneously.
Cut-off grade			Cut-off grade is the grade (i.e. the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Dilution			Unmineralized rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Head grade			The average grade of ore fed into the mill.
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a Mineral Reserve.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Modifying Factors			Modifying factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include, but are not restricted to: mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product.
			(1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable.
			(2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is:
			(1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and
			(2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must:
			(i) Be either:
			(A) An organization recognized within the mining industry as a reputable professional association; or
			(B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field;
			(ii) Admit eligible members primarily on the basis of their academic qualifications and experience;
			(iii) Establish and require compliance with professional standards of competence and ethics;
			(iv) Require or encourage continuing professional development;
			(v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and
			(vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.


Effective Date: 30 June 2022 iii


			Technical Report Summary for Joel Mine, Free State Province, South Africa

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Person(s) (“QP”) of Harmony Gold Mining Company Limited (“Harmony” or the “Company”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Company’s Joel Mine (“Joel Mine” or “Joel”). The TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, with an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature of this TRS.

Property Description

Joel is an intermediate-depth underground gold producing mine situated at the southern end of the Free State Goldfield, 40km south of the town of Welkom, Free State Province, South Africa. Construction of the twin-shaft system was completed by December 1987 and production has been ongoing since then.

Joel mines mainly the Beatrix Reef which is predominantly extracted using the scattered mining method. This method is deemed appropriate for the variable grades and geological complexity.

Joel holds a mining right which has been successfully converted and executed as a new order mining right and was registered at the Mineral and Petroleum Resources Titles Office on 6 August 2010. The mining right, number 30/5/1/2/2/13 MR, was successfully renewed on 15 February 2019 in terms of section 24 (1) of the Mineral and Petroleum Resources Development Act (“MPRDA”) for a further 11 years, expiring on 14 February 2030.

Ownership

Harmony owns 100% of Joel Mine and its associated surface and underground assets.

Geology and Mineralisation

Joel is situated in the Free State Goldfield, on the southwestern margin of the Witwatersrand Basin of South Africa, one of the most prominent gold provinces in the world. The major gold bearing conglomerate reefs are mostly confined to the Central Rand Group (“CRG”) of the Witwatersrand Supergroup.

The Free State Goldfield is structurally divided into two sections, cut by the north-south striking De Bron Fault, which has a downward vertical displacement to the west of about 1,500m in the region of Bambanani, as well as a dextral shift of 4km. This known lateral shift allows a reconstruction of the reefs to the west and east of the De Bron Fault. Several other major faults lie parallel to the De Bron Fault. Joel lies to the west of the De Bron Fault. Dips of the reef are mostly towards the east, averaging 30° but become steeper approaching the De Bron Fault. Between the east and west blocks lies the uplifted horst block of WRG sediments with no reef preserved.

The reef currently exploited at Joel is the Beatrix Reef, which covers approximately 90% of the mine. The other economic reef are the Hybrid BV (“HBV”) reef and the footwall reef (“Aandenk”) which cover the remaining 10% of Joel Mine.

Mineralisation is associated with the presence of medium to coarse, clast-supported oligomictic pebble horizons. The significant minerals in the deposit are pyrite (60%), quartz (35%) and garnets (5%) within medium to coarse, clast-supported oligomictic pebble horizons. Detrital carbon is also common.

Current Status of Exploration, Development and Operation

Active prospecting in the area began on the farms Leeuwbult 580 and Leeuwfontein 256 in 1981. Construction of the twin-shaft system began in September 1985 and was completed by December 1987. Joel South was designed to be a fully trackless mining operation.

Previously known as HJ Joel Mine, its name was changed to Joel in 1998 when the then Anglo Gold Ashanti Limited (“AngloGold Ashanti”) was established. The mine’s name changed again in 1999 to Taung and finally reverted to Joel in January 2002 when the Freegold Joint Venture between Harmony and African Rainbow Minerals Limited (“ARM”) Gold Division (“ARMGold”) assumed responsibility for the operation. In 2000 North Shaft operations were stopped and in 2001 Joel Mine faced closure. In 2002, Freegold purchased Joel Mine from AngloGold and thereafter full operation at South Shaft continued.


Effective Date: 30 June 2022 1


			Technical Report Summary for Joel Mine, Free State Province, South Africa

In 2003, Harmony and ARMGold (Freegold) joint venture took place and Joel Mine became part of the new Harmony. In 2006, Harmony Operations restructured and hoisting from North Shaft commenced and development continued. In 2012, deepening of 137 level through a decline system completed in 2019.

Mineral Resource Estimate

The current Mineral Resource estimate for Joel was generated using Datamine version 1.4.132.0 (“DatamineTM“) modelling software. The QP validated the Joel Mineral Resource model using visual comparisons with the raw drill hole data, comparisons of the raw drill hole data statistics with the model statistics, model volume, and visual assessment of the block model with drill hole intersections to ensure that the grades are locally honoured by the model. The QP did not identify any critical errors in the block model.

The Mineral Resources for Joel were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Mineral Resource estimate, as at 30 June 2022, exclusive of the reported Mineral Reserves is summarised in Table 1-1.

The QP compiling the Mineral Resource estimates is Ms FO Muthelo, Ore Reserve Manager at Joel Mine and employee of Harmony.

Table 1-1:Summary of the Joel Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	1.650	9.17	15,138
Indicated	2.794	6.92	19,336
Total / Ave. Measured + Indicated	4.444	7.76	34,474
Inferred	7.043	5.11	35,954
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	1.819	0.268	0.487
Indicated	3.080	0.202	0.622
Total / Ave. Measured + Indicated	4.899	0.226	1.108
Inferred	7.763	0.149	1.156
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Ms FO Muthelo, who is Ore Reserve Manager at Joel, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 558cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.

Mineral Reserve Estimate


Effective Date: 30 June 2022 2


			Technical Report Summary for Joel Mine, Free State Province, South Africa

The published Mineral Reserves reflect the estimated gold delivery to the processing plant solely from the in situ underground ore bodies at Joel Mine. The Mineral Reserve is based on the latest geological structure model, associated Mineral Resource estimation models and the selected mining method.

The QP compiling the Mineral Reserve estimates is Ms FO Muthelo, Ore Reserve Manager at Joel Mine and employee of Harmony.

The reported Mineral Reserve estimate as at 30 June 2022 is summarised in Table 1-2.

Table 1-2: Summary of Joel Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	2.781	5.01	13,941
Probable	0.954	4.85	4,631
Total (Proved + Probable)	3.735	4.97	18,572
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	3.066	0.146	0.448
Probable	1.052	0.142	0.149
Total (Proved + Probable)	4.117	0.145	0.597
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Ms FO Muthelo, who is the Joel Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. Mineral Reserves are reported using a cut-off grade of 915cmg/t determined using a gold price of USD1,546/oz gold.

Capital and Operating Cost Estimates

The capital cost estimates for Joel are determined at a corporate level, using the business plan as the basis. The capital costs are associated with major equipment outside the main operating sections which is termed abnormal expenditure (“AE”), infrastructure development, as well as ongoing capital development (“OCD”), are presented in Table 1-3. Costs associated with the Mining Charter Compliance (“MCC”), as per South Africa’s Social Labour Plan (“SLP”) requirements are also included in the capital estimates. The capital and operating costs are reported in ZAR terms and on a real basis.

The capital and operating costs are reported for the period comprising financial year (“FY”) July - June.

The operating cost estimates for Joel are categorised into direct and re-allocated costs. A summary of the Joel operating cost estimates is shown in Table 1-4.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

Table 1-3: Summary of Capital Cost Estimate for Joel


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2030)
AE			90,612
Shaft Projects			117,070
Major Projects			31,000
OCD			487,348
Total (excluding MCC)			726,030
MCC (LEDs/housing etc.)			56,607
Total (including MCC)			782,637

Table 1-4: Summary of Operating Cost Estimate for Joel


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2030)
Wages - Payroll 1			2,107,190
Wages - Payroll 2			3,205,091
Stores and Materials			1,711,715
Electric Power and Water			1,532,119
Outside Contractors			493,814
Other			358,404
Direct Costs			9,408,333
Transport Allocation			310,625
Refining Charge			27,308
Assay Costs			51,165
Hostel Costs			-24,971
Plant Treatment Cost			551,668
Rail Transport			74,285
Re-allocated Costs			990,080
Mine Overheads Re-allocated			502,495
Total Cash Costs			10,900,908

Permitting Requirements

The permits and licences are summarised in Table 1-5. Joel has the following valid permits, administered and managed by various departments, and does not require any additional permits to continue with their mining operations.

An application has been submitted to the Department of Water and Sanitation to convert the current Water Permits to a Water Use Licence in terms of Section 21 of the National Water Act 36 of 1998. Joel is awaiting approval from the regulator at the effective date of this TRS. These pending environmental permits and licences do not pose a material risk to the continuation of the operation.

Table 1-5: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

EMPR

FS 30/5/1/2/3/2/1(14) EM

DMRE

16-Apr-2010

LOM

Water Permit

1459B (B33/2/340/116)

DWS

25-May-1991

LOM

Water Permit

1460B (B33/2/340/116)

DWS

15-Mar-1991

LOM

Waste Disposal Permit

1339N (B33/2/340/116/P35)

DWS

16-Sep-1991

LOM

Water Permit

DWS

27-May-1991

LOM

Sewage Treatment Permit

QC404.00.XRO1

DWS

20-Aug-1986

LOM

Water Permit

1339N (B33/2/340/116)

DWS

15-Mar-1991

LOM

Note: LOM - Life of mine, DWS - Department of Water and Sanitation


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

All relevant underground mining and surface right permits, and any other permit related to the work conducted on the property have been obtained and are valid. There are no known legal proceedings (including violations or fines) against Joel or Harmony, which threaten its mineral rights, tenure, or operations.

Conclusions

Under the assumptions in this TRS, Joel shows a negative operating profit in the current year (FY2022-23) due to the major capital expenditure for the refrigeration plant. However, it indicates a positive cash flow over the life of mine (“LOM”) as the grade and tonnages mined increase from the FY2023-24 onwards. The mine plan is supported by the Mineral Resource and Mineral Reserve estimates and is considered achievable under the set of assumptions and parameters used.

Joel is a marginal mine with low head grade (averaging less than 5.0g/t) which is affected by waste dilution resulting from the inability to hoist ore and waste separately. This makes Joel sensitive to the prevailing gold price and variability of the grade.

Recommendations

The Joel on-mine team recommends that additional capital drilling be planned for the 121 “Klippan” area as well as drilling towards 145 level, in order to prove the Beatrix Reef extensions below the current infrastructure and to confirm the grades, facies on the east of the shaft in 137 level. The estimated cost for drilling is ZAR6.3 million (“m”).


Effective Date: 30 June 2022 5


			Technical Report Summary for Joel Mine, Free State Province, South Africa

2Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS for on Joel Mine has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the U.S. SEC Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 - Technical Report Summary. The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand the operations at Joel, which forms part of Harmony’s activities.

The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand Joel operations which forms part of Harmony’s activities.

This TRS has been prepared from the following sources of information:

•Mineral Resource and Reserve Statement, Joel Mine 2022, prepared by Ms. FO Muthelo, dated 30 June 2022;

•the 2021 and 2022 Harmony Corporate Business Plan;

•published 2021 and 2022 Integrated Annual Report; and

•published 2022 Harmony Operational Report.

The TRS was prepared by QPs employed on a full-time basis by the registrant. The QPs qualifications, areas of responsibility and personal inspection of the properties are presented in Table 2-1.

Table 2-1: QP Qualification, Section responsibilities and Personal Inspections

Qualified Person

Professional Organisation

Qualification

TRS Section Responsibility

Personal Insp.

Ms FO Muthelo

SACNASP

BSc Hons (Geol)

All Sections

Full time

Ms T Stocks

N/A

B.Tech. (Cost & Man Acc)

16, 18, 19

Full time

Mr M Kilian

AMMSA

B. Tech (Min Eng)

Full time

Mr K Tose

AMMSA

BSc (Min Eng)

Full time

Mr F Mufara

MVSSA

BSc (Comp Sci)

3 17

Full time

Mr S Taku

AMRE

G.C.C Electrical

Full time

This TRS has an effective date of 30 June 2022, and it is important to note that no material changes occurred between the effective date and the final date of this report.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

3Property Description and Location

Section 229.601(b)(96) (3) (i-vii)

Joel is an intermediate-depth underground gold mine that consists of two shaft complexes interconnected via a triple decline system, spanning four levels and mining at depths of at depths of 1,379m below mine datum (“BMD”). Joel currently has a LOM expectancy of nine years, which includes mining up to 137 level in a block of ground swapped with the neighbouring Beatrix Mine (Figure 3-1).

Joel is located on the southern edge of the Witwatersrand Basin in the Free State Gold Field and lies 270km south southwest of Johannesburg at a longitude of 26°48'40"E and latitude 28°16'17"S. Joel Mine is the most southern of the gold mines mined within the Harmony stable and is situated approximately 40km south of Welkom, 30km southeast of Virginia and 20km north of Theunissen (Figure 3-1). The mine has a common boundary with Beatrix Mine to the west of the mine property (Figure 3-2), but there are no underground connections between the two mines.

3.1Mineral Tenure

The current mining rights encompasses an area of 2,166.92ha (Figure 3-2) was successfully converted, executed and registered as a new order mining right at the Mineral and Petroleum Resources Titles Office on 6 August 2010. The right was granted on 3 December 2007 for a period of 11 years, ending on 2 December 2018. The right further renewed in terms of section 24 (1) of the Mineral and Petroleum Resources Development Act on 15 February 2019 for a further 11 years, ending on 14 February 2030 (Table 3-1). Joel Mine is 100% owned and operated by Harmony.

Table 3-1: Summary of the Mineral Tenure for Joel Mine

Licence Holder

Licence Type

Reference No.

Effective Date

Expiry Date

Area (ha)

Harmony/ARMGold Freegold Joint Venture Company (Pty) Limited

Mining Right

30/5/1/2/2/13 MR

15-Feb-2019

14-Feb-2030

2,166.92

There are no known legal proceedings (incl. violations or fines) against the Company which threatens its mineral rights, tenure, or operations.

3.2Property Permitting Requirements

All relevant underground mining and surface permits, and any other permit related to the work conducted on the property have been obtained and are valid.


Effective Date: 30 June 2022 7


			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 3-1: Location of Joel Mine in the Free State Goldfield


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 3-2: Mineral Tenure for Joel


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

4Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

4.1Accessibility

Joel Mine is accessible via well-maintained tar roads, more specifically from the R30 road between Welkom and Theunissen (Figure 3-1, Figure 3-2). The area also has well-established rail links and a number of airfields, the nearest operational one being in Welkom.

4.2Climate and Physiography

The mine lease area is flat with an average elevation of approximately 1,400m above sea level (“asl”). The area is relatively flat with gentle slope to the southwest. There are no prominent topographical landmarks in the area other than those which are man-made by slimes dams, waste rock dumps and solid waste disposal sites.

Joel is situated in the Free State, a semi-arid region with an annual rainfall of between 400mm and 600mm. Local thunderstorms and showers are responsible for most of the precipitation during summer – from October to March - with peak rainfall occurring in January. Hail is sometimes associated with thunderstorms.

In Welkom, the average annual temperature is 17.7°C. The warmest month is January, with an average temperature of 23.3 °C (range 17.3°C - 29.6°C). July is the coldest month, with temperatures averaging 9.7 °C (range 2.4°C - 17.7°C) (www.Climate-Data.org, accessed November 2021). For Joel specifically, January has a daily average of 19.2°C, whilst July has an average of 7.7°C.

Joel is not restricted by climatic or seasonal conditions.

4.3Local Resources and Infrastructure

Joel has two operational shaft complexes namely North Shaft and South Shaft, which service and support the mining operation as defined in the LOM Plan. The Joel gold plant located near North Shaft was decommissioned in 2009 (Figure 3-2). Joel ore is currently transported by truck to the Harmony One Plant, a distance of 40km away by road, where it is processed (Figure 3-1).

Operations are powered by electricity from Eskom Holdings State Owned Company (“SOC”) Limited.

Joel’s surface and underground infrastructure, including its power and water supplies, are sufficient for the LOM plan production requirements.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

5History

Section 229.601(b)(96) (5) (i-ii)

5.1Historical Ownership and Development

Previously known as HJ Joel Mine, its name was changed to Joel in 1998 when the then AngloGold Ashanti was established. The mine’s name changed again to Taung in 1999 and finally reverted to Joel in January 2002 when the Freegold Joint Venture between Harmony and ARMGold assumed responsibility for the operation. The historical ownership and associated activities related to Joel are summarised in Table 5-1.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

Table 5-1: Summary of Historical Ownership Changes and Activities of Joel


Year			Asset History Highlights
1978			Johannesburg Consolidated Investment (JCI) Exploration obtained the mineral options on farms Leeuwbult 580 and Leeuwfontein 256, in the district of Theunissen.
1981			Active prospecting in the area began on the farms Leeuwbult 580 and Leeuwfontein 256. The first borehole LB1 was sited in 1981.
1985			Work began in the construction of the twin shaft system by Johannesburg Consolidated Investment Limited (“JCI”). The sinking of 3 and 4 shafts on H.J. Joel Mine commenced.
1988			First gold production from H.J. Joel Mine was achieved.
1992			The change over from trackless mining to track bound mining method was started and completed in 1994.
1996			Decision was made to unbundle JCI in September 1997. The company was restructured into two separate and autonomous base metal and gold companies, JCI Projects and JCI Gold. The gold assets, including H.J. Joel Ltd., were collapsed into JCI Gold.
1997			In November 1997, JCI Gold its 60% interests in H.J. Joel to Anglo American Corporation (“AAC”) among other interests in exchange for De Beers’ and AAC’s 26% interest in Lonrho Plc. of the United Kingdom. The sinking of 1 shaft (now North Shaft) commenced.
1998			H.J. Joel project changed its name to Joel when AngloGold Ashanti Limited (“AngloGold Ashanti”) was established. AngloGold was formed through a merger of the gold interests of AAC and its associated companies including H.J. Joel, creating the world’s largest gold company. In July 1998, AngloGold subdivided its Vaal Reefs, Free State, Western Holdings, H.J. Joel, and West Wits gold mining complexes on a production shaft basis into 16 separate business centres, and Joel was renamed. The shafts were renamed Taung North and South.
1999			Joel project changed its name to Taung. Anglo Exploration drilled boreholes LB20 and LB21.
2000			North Shaft operations were stopped and in 2001 Joel Mine faced closure.
2001			AngloGold announced that it would be selling its assets (including Joel) in the Free State province to ARM and Harmony. ARM and Harmony would hold equal joint venture interests in the assets when the transaction took effect on 1 January 2002.
2002			In January, Taung project changed its name back to Joel when the Freegold joint venture between Harmony and ARMGold assumed responsibility for the operation. As part of a restructuring process the assets of the Joel mine were transferred from its holding company, JSE-listed HJ Joel Gold Mining Company Limited, which was subsequently de-listed. Full operations at South shaft continued.
2003			On May 2, Harmony Gold and ARMGold announced a merger, which effectively saw Harmony acquire ARMGold.
2005			Feasibility studies were conducted to determine options to extend Joel’s Life of Mine specifically with the use of the North shaft.
2006			Harmony operations restructured and hoisting from North Shaft commenced and development continued.
2007			Harmony announced the Department of Minerals and Energy ("DME") had approved and granted the conversion of its old order mining rights into new order mining rights in terms of the MPRDA Act 28 of 2002. Harmony was granted 13 new order mining rights, in terms of the MPRDA, which covered all of its South African gold mining operations, including Joel.
2008			Redevelopment and re-equipping of the Joel North shaft was concluded.
2009			The Joel Plant was de-commissioned in November.
2011			Production at Joel progressively moved to the deeper portions of the mine. Retrospective infrastructure upgrades were made around this time.
2013			Supported by a successful drilling programme in 2009 and pre-feasibility study in 2010, a feasibility study on mining 137 level and testing the upside potential of 145 level was completed. The project was approved and began. Joel’s future operating life was reliant upon successful completion of the decline shaft system.
2014			Harmony and Sibanye Gold Limited ("Sibanye") entered into an agreement whereby Joel mine exchanged two portions of its mining right for two portions of Sibanye’s Beatrix mine’s mining right, and acquired two additional mining right portions from Beatrix (sale portions). The transaction was completed in May 2014. The purchase consideration of the sale portions acquired by Joel was payable as a royalty of 3% on gold revenue generated from these two portions.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

5.2Historical Exploration

Since the inception of Joel Mine in 1986, 48 exploration drill holes have been drilled from surface. Forty of the holes were drilled by the previous owners of the mine and eight holes, totalling 10,800m, have been drilled during Harmony’s tenure.

In 1978, JCI Exploration obtained the mineral options on farms Leeuwbult 580 and Leeuwfontein 256, in the district of Theunissen, and the first drill hole, LB1, was sited in 1981.

In 1999, Anglo Exploration drilled drill holes LB20 and LB21. LB20 was abandoned on a dyke and LB21 intersected Beatrix reef with a returned assay value of 640cmg/t over a channel of 19cm. In 2000 North Shaft operations were stopped and in 2001 Joel Mine faced closure.

In 2002, Freegold purchased Joel Mine from AngloGold and thereafter full operation at South Shaft continued.

In 2006, Harmony Operations restructured and hoisting from North Shaft commenced and development continued. In 2012, deepening of 137 level through a decline system was completed in 2019.

5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous Mineral Resource estimate for Joel was declared as at 30 June 2021 by Harmony, according to the definitions stipulated in the SAMREC Code, 2016. The previous Mineral Resource estimate summarised in Table 5-2, was reported exclusive of Mineral Reserves, and has been superseded by the current estimate prepared by Harmony in Section 11 of this TRS.

Table 5-2:Summary of the Previous Joel Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	1.611	9.96	16,041
Indicated	2.394	8.03	19,221
Total / Ave. Measured + Indicated	4.005	8.80	35,262
Inferred	7.337	5.13	37,607
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	1.776	0.290	0.516
Indicated	2.639	0.234	0.618
Total / Ave. Measured + Indicated	4.415	0.257	1.134
Inferred	8.088	0.149	1.209

The previous Mineral Reserve estimate for Joel was declared by Harmony on 30 June 2021 in accordance with the SAMREC Code, 2016. Modifying Factors were considered and applied to the Mineral Resource to arrive at the Mineral Reserve estimate. These factors included the cut-off grade, the mine call factor (“MCF”), the stoping width, the mining width and the plant recovery factor.

The previous Mineral Reserve estimate is summarised in Table 5-3 and has been superseded by the current estimate prepared by Harmony as detailed in Section 11 of this TRS.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

Table 5-3: Summary of the previous Joel Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proven	2.632	5.00	13,168
Probable	1.489	4.50	6,699
Total / Ave. Proven + Probable	4.120	4.82	19,867
IMPERIAL
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	2.901	0.146	0.423
Probable	1.641	0.131	0.215
Total / Ave. Proven + Probable	4.542	0.141	0.639

5.4Past Production

Past production for Joel is presented in Figure 5-1 and Figure 5-2. The average tonnage has typically been over 400ktpa, except for FY2020 and FY2021 which were affected by lower production rates. Production returned to over 400kt in FY2022.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 5-1: Graph of Past Production – Tonnes and Grade

Figure 5-2: Graph of Past Metal Production


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii)

6.1Regional Geology

Joel is located on the southwestern margin of the Archean Witwatersrand Basin, one of the prominent gold provinces in the world. The Witwatersrand Basin is an approximately 7,000m thick terrigenous sequence comprising mainly arenaceous and argillaceous, together with minor rudaceous, lithologies deposited in a fluvio-deltaic environment in the centre of the Archaean Kaapvaal Craton of South Africa (Robb and Meyer, 1995). The regional geology of the Witwatersrand Basin is shown in Figure 6-1.

6.2Local Geology

Joel is located within the Free State Goldfield (Figure 6-1). The stratigraphic column of the Free State Goldfield is presented in Figure 6-2. The Johannesburg Subgroup comprises the Virginia, St Helena, Welkom, Harmony and Dagbreek formations.

The first pebble layer may be characterized by kerogen (carbon) known as the Beisa Reef. The St Helena Formation is a ±300m sequence of alternating mature quartzites and argillaceous, pebbly protoquartzites, with a distinct change from the khaki yellow sericitic quartzites (LF1) of the underlying Virginia Formation to coarse grained, light grey siliceous quartzites (MF4) at the base of the St Helena Formation. The top of this formation is marked by mineralised gravels up to 2m thick known as the Intermediate Reef or UF4 (base of Welkom Formation).


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 6-1: Geological setting of the Witwatersrand Basin


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 6-2: Stratigraphic Column of the Free State Goldfield


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

The Turffontein Subgroup comprises the Kimberly (formerly Aandenk) and Eldorado (Elsburg) formations. The Kimberly Formation is sub-divided into the lower Spec Bona Big Pebble and upper Big Pebble (Earls Court) members. The Spec Bona Member consists of a basal polymictic conglomerate which may have associated kerogen (carbon) - B Reef, overlain by khaki-yellow coarse pebbly argillaceous quartzites with polymictic conglomerate horizons. The Big Pebble Member hosts two main conglomerate reefs, namely the basal Big Pebble Reef and the A Reef, referred to at Target Mine as the BP1a and BP6a reefs, respectively. These placers occur with a sequence of khaki to brown argillaceous quartzites with interbedded pebbly quartzites.

The Van Den Heevers Rust Member consists of a basal polymictic conglomerate overlain by yellowish argillaceous quartzite. The Uitkyk Member underlies the Ventersdorp lavas and is locally referred to as the Dreyerskuil (or Boulder Beds) which consist of a polymictic coarsening-up sequence with heterogeneous pebbles/cobbles of black, yellow and green shale, greenstones, porphyritic lava, chert quartzite and quartz.

Joel lies to the west of the De Bron Fault. Dips of the reef are mostly towards the east, averaging 30° but become steeper approaching the De Bron Fault. Between the east and west blocks lies the uplifted Horst block of WRG sediments with no reef preserved.

6.3Property Geology

The Klippan Formation has been preserved as an east-west trending erosional channel that has eroded deeply through the Witwatersrand sediments and has eliminated the Beatrix/VS5 horizon in the eastern portion of the mine and cut out a significant chunk in an east-west direction through the middle of the mining right area. Regionally the Klippan Formation is preserved in the north-south striking basin, known as the Virginia Basin in the southern Free State, which parallels the De Bron Fault. The Beatrix/VS5 reefs suboutcrop against the Karoo towards the south. A schematic cross-section of Joel is shown in Figure 6-3.

A deep erosional channel of Platberg group volcano-sedimentary rock, known as the Klippan channel, truncates the Beatrix Reef approximately 1.8km to the north of South Shaft. This washout feature is wedge-shaped with its apex to the west and widening to the east. The estimated dimension from the apex to the eastern property boundary is approximately 1.8km. The reef has been shown to be continuous to the north of this feature.

Where unaffected by the Klippan channel, the reef is bounded to the east by the De Bron Fault, which strikes north-northeast. The CD Fault, which strikes north-east and is roughly halfway between the two shafts, has a 320m sinistral lateral displacement south of the fault towards the north-east.

The reef currently exploited at Joel is the Beatrix Reef, which covers approximately 90% of the Mine. The other economic reef types are the Hybrid BV (“HBV”) reef and the footwall reef (“Aandenk”) which cover the remaining 10% of the Mine.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 6-3: Schematic Cross-Section through the Joel Mine

The reef types may be described as follows:

•VS5: Dark grey polymictic medium pebble conglomerate (“Mpc”), poorly sorted, poorly packed, no pyrite;

•Beatrix: Oligomictic Mpc, pebbles 25mm, smokey quartz predominating, garnets common;

•Aandenk: Oligomictic large pebble conglomerate (“Lpc”), 60mm pebbles, set in yellow argillaceous matrix;

•BV: Oligomictic Lpc, 50mm pebbles, white and smokey quartz, no yellows (Reworking of /Beatrix/Aandenk); and

•HBV: Polymictic Lpc, 50mm pebbles, white and smokey quartz, yellow shale’s (Partial reworking of VS5/Beatrix/Aandenk).

6.4Structure

The main structures at Joel are associated with the Platberg Extension. These faults are north-south striking, steeply dipping and typically have downthrows to the east of 10m to 100m. These downthrows form a graben against the De Bron Fault, which has a 450m upthrow to the east. East of the De Bron Fault, the reef has been either truncated or eroded against the Karoo Supergroup. The structural plan for Joel is presented in Figure 6-4.

Minor east-west striking faults are also present. However, displacements on these faults are generally less than 10m, which are believed to be Klipriviersberg in age. Low angle reverse faulting is also present. These structures trend north-south, have small displacements and dip towards the east. These structures may be related to the Central Rand Contractional event.

6.5Mineralisation


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

introduced into the conglomerates and circulated throughout in hydrothermal cells. The fluids precipitated gold and other elements through reactions that took place at elevated temperatures along the reef horizons, which was the more favourable fluid conduit.

The generic mineralisation model for the reefs at Joel are based on structurally controlled fluid flow within a conglomerate hosted lithology. Fluid flow is dependent on the permeability of the host rock mass during mineralisation. Fluid flow, permeability and subsequent gold mineralisation are believed to be controlled by four key factors, including:

•mechanical stratigraphy;

•the presence or absence of mineralisation age thrust faulting;

•sedimentology; and

•precipitation agent.

Exploitable mineralisation at Joel Mine contains predominantly pyrite with some scattered buckshot, especially in the Beatrix Reef. The significant minerals in the deposit are pyrite (60%), quartz (35%) and garnets (5%) within medium to coarse, clast-supported oligomictic pebble horizons.

For the purposes of Mineral Resource estimation, a detailed facies model is used and is based on detailed sedimentological observations.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 6-4: Structural Geology at Joel


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

6.6Deposit Type

Joel may be classed as a sedimentary alluvial fan-type deposit. The major dykes have a trend east/west, whereas the major faults have a trend north/south. The paleo current direction indicate a north/south trend with an erosional channel between the east and the west.

6.7Commentary on Geological Setting, Mineralisation and Deposit

The regional geological setting, local and property geology, mineralisation and deposit-type for Joel is well established through many decades of exploration and mining. Reliable geological models, maps and cross sections are available that support the interpretations and inform the Mineral Resource estimates.

Further drilling is being conducted to determine the structural complexity at Joel and the full potential of the Beatrix reef.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

7Exploration

Section 229.601(b)(96) (7) (i-vi)

Geological data has been obtained through initial surface drilling, followed by underground drilling, mapping and channel (chip) sampling.

7.1Geophysical Surveys

No geophysical surveys have been conducted at Joel Mine.

7.2Underground Mapping

Face and reef development mapping is undertaken by a team of samplers comprising two or more personnel. Face tapes are setup along gullies and the stope face and secured with the latest survey pegs installed in the workplaces. Reef position and other lithological and stratigraphic information is collected and measured relative to the reference tapes. The geological and structural information is captured in GMSITM system.

Once at surface, the personnel transfer the information from the notebook into the system where a mapping report is produced for each mapped workplace. The mapping reports depict the geological information graphically relative to the survey measurement points. Data from the mapping is also incorporated into the geological models.

Geological mapping is open to the interpretation of stratigraphy by various geologists. Spatial inaccuracies are expected during the mapping, plotting, digitizing and subsequent alignment of the mapping in the StopeCADTM system. Historically, these inaccuracies are not significant, and are mitigated through internal peer reviews, adherence to and continuous updates of the standard operating procedures at the Joel operations.

7.3Topographic Surveys

No topographic surveys have been completed in the past, and in the opinion of the QP, these surveys are not required as this TRS relates to an underground operation.

7.4Channel Sampling Methods and Sample Quality

Channel sampling is undertaken according to industry best practice, as well as Harmony’s internal Underground Sampling Procedure. The procedure for the underground sampling is used to ensure quality of sampling information and safety in its collection. All samplers and sampling crews are trained based on the rules of the sampling standard. Particular attention is given to quality of information captured, and planned task observations are routinely carried out to ensure adherence to the standard.

Two parallel lines, 10cm apart are drawn at right angles to the dip of the reef, across the reef exposure, from hanging wall to the footwall of the stope panel or development end. Another line is also drawn parallel to the average reef dip at the base of the reef package.

Sample intervals are marked, beginning at the base of the reef. The samples extend the full height of the face and extended beyond the parallel lines to ensure that the sampled position can be located after sampling is completed. Reef bands are marked off by drawing lines parallel to the reef contact, 2cm below and above the reef contacts. The sample width is demarcated at 10cm wide, with a minimum length of 8cm and a maximum length of 20cm, to a depth of 1-2 cm. The inclusion of such waste is essential to avoid loss of any gold which may be concentrated on the contact between the reef and waste.

Samples are chipped from basal contact upward to prevent contamination. Samples are weighed and submitted to the designated laboratory for assay. A detailed description of the sampling process is provided in Section 8.1.1.

The location of samples collected is indicated on Figure 7-1.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 7-1: Location of Channel Samples in relation to Underground and Surface Drill Holes


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

7.5Surface Drilling Campaigns, Procedures and Results

Surface exploration drilling by Harmony began in 2010, with the eight planned holes and their associated deflections. The purpose was to determine the facies and value in 137 level for the extension of the shaft to 137 level because at that time little information was known about 137 level. One drill hole was abandoned before intersecting the reef.

In 2019, five holes were drilled with the purpose was also to explore for the VS5 boundary in the eastern side of the shaft in 129 level and to determine the facies and value towards 145 level for the extension of the shaft to 145 level.

7.5.1Drilling Methods

In 2010, the surface holes were drilled using a rotary blasthole drill rig with a core size of BQ (36.5mm).

7.5.2Collar and Downhole Surveys

The drill holes are surveyed to confirm both collar position and trajectory. Drill hole collar and downhole surveys are conducted on all surface drill holes.

Surface drill hole collars are surveyed by internal Land Survey Department.

7.5.3Logging Procedure

Upon arrival at the core yard located at the Joel Mine, drill core is marked at meter intervals. The core is then orientated so that the low point of bedding is coincident with the edge of the angle iron. The cut line is defined by the low point of the bedding at the base of the reef zone, when viewed as per convention, from left to right in the direction of increasing depth, is drawn parallel to the core. The core is then rotated through 90° and a yellow line was then drawn parallel to the core, to define the retention half core.

Core photography is not taken on all cores. Should there be information that warrants recording, photography of the core will be conducted prior to logging and sampling.

Drill core logging is quantitative and qualitative, and all pertinent features are logged, including stratigraphy, lithology, structure, alteration and mineralisation characteristics. The following information is recorded:

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and alteration.

The core is stored in a secure facility that is locked at all times to ensure integrity and kept for future reference.

The geologist responsible for logging the core is keeps the original paper record. Internal peer reviewing is undertaken on the interpretation of the stratigraphy and spatial correlation of drill holes.

Observations are captured on the diamond drilling database by geologists. The logs are checked by the Senior Geologist prior to sampling.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

7.5.4Drilling Results

A total of 48 drill holes were drilled on surface at Joel that intersected the Beatrix Reef. The surface drill holes were drilled to a maximum depth of 1,389 m below surface.

The location of the surface drill holes intersecting the Beatrix Reef is presented in Figure 7-2, whilst the results for those which intersected reef are presented in Table 7-1.

The results have been included into the geological modelling and Mineral Resource estimation process.

7.5.5Core Recovery

An intersection is complete and representative if core recovery is greater than 99%. Drill holes with poor recovery are not sampled. Extra caution is taken during the drilling process to ensure maximum core recovery on reef intersections, to prevent sample bias.

Reef intersection acceptability is categorised as per the criteria summarised in Table 7-2 and is determined by geologists based on, amongst others, drill core condition and faulting. The acceptability is verified for each reef intersection before the assay results are used for Mineral Resource estimation.

The average core recovery was approximately 99%.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

Table 7-1: Joel Surface Drilling Results


Drill Hole ID	Deflection	Hole Length (m)	Reef Channel Width (cm)	Reef Grade (g/t)	Reef Value (cmg/t)	Drill Hole ID	Deflection	Hole Length (m)	Reef Channel Width (cm)	Reef Grade (g/t)	Reef Value (cmg/t)	Drill Hole ID	Deflection	Hole Length (m)	Reef Channel Width (cm)	Reef Grade (g/t)	Reef Value (cmg/t)
LB1	0	1,461.57	24.60	8.23	203	LB7	-	1,256.70	222.60	3.46	770	LF5	-	683.30	36.40	28.31	1,031
	6	27.51	24.60	0.00	0		1	-	224.50	5.05	1,134		1	-	26.60	97.50	2,594
	7	47.20	21.70	5.36	116		2	-	213.70	5.56	1,188		2	-	34.50	182.60	6,300
	8	24.70	19.70	19.00	374		3	-	220.60	4.96	1,094		3	-	27.60	57.30	1,582
	9	26.13	19.70	4.73	93		4	-	246.20	3.39	835		4	-	28.60	35.10	1,004
LB2	0	1,155.80	19.70	0.00	0	LB8	-	1,415.10	42.30	23.27	984		5	-	38.40	176.58	6,781
	1	54.91	26.60	1.30	35		1	-	40.40	15.57	629	LF6	-	832.00	191.10	5.69	1,087
	2	167.98	29.50	2.55	75		2	-	62.00	2.79	173		1	-	118.20	5.59	661
	3	18.92	12.60	1.13	14		3	-	58.10	7.63	443		2	-	186.10	4.27	795
	4	29.28	24.60	1.40	34		4	-	60.10	17.24	1,036		3	-	171.40	2.92	501
	5	24.37	24.60	0.00	0	LB9	-	1,584.90	231.40	1.03	238		4	-	142.80	5.83	833
LB3	-	679.80	193.00	9.32	1,799		1	-	222.60	1.75	390	LF7	-	1,066.30	183.20	5.01	918
	1	15.06	199.90	12.87	2,573		2	-	231.40	0.77	178		1	-	168.40	4.06	684
	2	76.29	180.20	7.98	1,438		3	-	221.60	0.76	168		2	-	172.30	9.43	1,625
	3	36.38	197.00	19.93	3,926		4	-	221.60	0.65	144		3	-	150.70	5.08	766
LB4	-	1,299.83	46.30	12.74	590	LB11	-	1,430.10	122.10	1.32	161		4	-	59.10	2.59	153
	1	24.72	72.90	17.00	1,239		1	-	137.90	0.73	101		5	-	57.10	10.14	579
	2	69.00	64.00	16.42	1,051		2	-	131.00	1.17	153	LF10	-	1,360.20	213.70	6.06	1,295
	3	44.85	83.70	10.70	896		3	-	129.00	1.13	146		2	-	253.10	3.66	926
	4	47.15	76.80	12.38	951		4	1,380.00	118.20	0.99	117		3	-	251.10	6.80	1,708
LB5	-	886.60	166.40	9.47	1,576	LB18	-	732.00	1.00	13.00	13		4	-	265.90	2.12	564
	1	-	152.60	6.32	964	LF3	-	746.80	80.80	76.81	6,206		5	-	256.00	8.11	2,076
	2	-	153.60	7.33	1,126		1	-	80.80	35.26	2,849		6	-	236.40	9.22	2,180
	3	-	148.70	5.22	776		2	-	95.50	10.59	1,011	LF12	-	892.60	211.70	7.00	1,482
	4	-	157.60	7.08	1,116		3	-	70.90	9.92	703		1	-	225.50	4.64	1,046
LB6	-	1,046.30	64.00	25.62	1,640		4	-	76.80	7.07	543		2	-	226.50	3.81	863
	1	-	64.00	11.66	746	LF4	-	786.20	39.40	40.39	1,591		3	-	221.60	3.39	751
	2	-	66.00	2.07	137		1	390.00	40.40	26.50	1,071		4	-	224.50	3.90	876
	3	-	73.90	2.95	218		2	-	41.40	31.08	1,287		5	-	215.70	4.98	1,074
LF32	-	797.00	3.00	151.33	454		3	-	29.50	20.68	610	LF30	-	673.00	6.00	16.00	96


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 7-2: Location of Surface and Underground Drill Holes


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

Table 7-2: Drill hole Acceptance Criteria


Category			Comment
Acceptable			100% core recovery in the reef zone, or very minor loss due to reef chipping. No evidence of faulting within the reef horizon or at either contact with hanging wall or footwall lithologies.
Minimum value			Light to moderate disking of core in the core barrel due to drilling and/or ground conditions. Visual observations indicate that the conglomerate portion of the reef is usually more prone to disking, resulting in possible gold loss.
Faulted minimum value			If the fault loss is considered to be minor, this term may be used if the geologist is certain that only low-value internal quartzite is missing from the intersection.
Not acceptable			Heavy disking of core which may indicate core loss, partial known core loss due to grinding. Also faulting of any description within the reef zone.

7.5.6Sample Length and True Thickness

Mineralisation is perpendicular or at an angle to the drill holes. In the case of angled holes, all drill hole reef intersection widths are corrected to true thickness for gold value calculation.

7.6Underground Drilling Campaigns, Procedures and Results

Underground exploration drilling has been ongoing throughout the operational life of Joel as the mine deepens. Underground exploration drilling is undertaken to supplement the surface drilling on a closer grid spacing. Underground drilling is undertaken ahead of the face to determine the location of the reef, the grade and the presence of structure. Underground drilling is use in the Mineral Resource estimation.

Over 1,000 underground drill holes have been drilled on Joel Mine (Figure 7-2).

The underground infill drilling system is in place to improve data density in specific areas and are drilled from the underground development access drives.

The drill hole spacing is typically every 25m along strike and 40m down dip, with higher density in the western limb of the asymmetric syncline to the north-west of the mine.

The underground drill holes are short drill holes rarely exceeding 200m in length.

7.6.1Drilling Methods

Underground diamond core drilling is conducted using hydraulic-driven mamba rigs and pneumatic drill rigs, which typically deliver AXT size core (35.51mm). The mamba machine drills up to 300m and the pneumatic machine drills up to 120m in length. The drilling spacing for the pneumatic machine is every 110m as they are used to drill cover holes and therefore the overlap between cover holes should be 10m. The mamba machine does not have a specific grid because the holes are drilled based on the information required. In 2019, the underground holes were drilled with AXT core size (35.51mm).

Fans of drill holes are drilled from diamond drilling bays, which are developed at 50m intervals along the decline return airway (“RAW”) decline. The drilling fans consist of up to ten individual drill holes at inclinations ranging from -15° to +30° of vertical, or as dictated by local geological structures.

The grid that is normally used is 30 x 30m in crosscuts and 60 x 60m between adjacent crosscuts.

7.6.2Collar and Downhole Surveys

Drill holes are surveyed to confirm both collar position and trajectory. Drill hole collar and downhole surveys are conducted on all exploration drill holes completed on the mine.

Underground collar positions are surveyed by the Senior Surveyor by measuring the trajectory of the hole over two points and the elevation.

Underground drill hole collars are checked against layouts issued to diamond drilling contractors and confirmed by offsets taken underground in the workplaces.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

All records received from the survey company are checked for accuracy and then captured and stored in the electronic databases.

7.6.3Logging Procedure

Upon arrival at the on-site core yard, drill core is marked at meter intervals. The core is then orientated so that the low point of bedding is coincident with the edge of the angle iron. The cut line is defined by the low point of the bedding at the base of the reef zone, when viewed as per convention, from left to right in the direction of increasing depth, is drawn parallel to the core. The core is then rotated through 90° and a yellow line was then drawn parallel to the core, to define the retention half core.

Core photography is not taken on all cores. Should there be information that warrants recording, photography of the core will be conducted prior to logging and sampling.

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and alteration.

The core is stored in a secure facility that is locked at all times to ensure integrity and kept for future reference.

Observations are captured on the diamond drilling database by geologists. The logs are checked by the Senior Geologist prior to sampling.

7.6.4Drilling Results

The location of underground drill holes for Joel Mine are indicated on Figure 7-2.

A total of 34 underground drill holes (3,513m) were drilled between July 2021 to May 2022 on 117 level, 121 level, 129 level and 137 level. The results are summarised as follows:

•22x intersected reef;

•3x did not intersect reef, as they intersected the Klippan erosion channel; and

•9x were cover holes, holes drilled to find information like water, methane, geological structures ahead of the current mining areas.

With over 1,000 underground holes having been drilled since the start of the mining operation, the results are too voluminous to be presented in this report. The results have, however, been included into the geological modelling and Mineral Resource estimation process.

7.6.5Core Recovery


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An intersection is complete and representative if core recovery is greater than 99%. Drill holes with poor recovery are not sampled. Extra caution is taken during the drilling process to ensure maximum core recovery on reef intersections, to prevent sample bias.

Reef intersection “acceptability” is categorised as per the criteria summarised in Table 7-2 and is determined by geologists based on, amongst others, drill core condition and faulting. The acceptability is verified for each reef intersection before the assay results are used for Mineral Resource estimation.

The average core recovery is approximately 99% in length.

7.6.6Sample Length and True Thickness

Mineralisation is perpendicular or at an angle to the drill holes. In the case of angled holes, all drill hole reef intersection widths are corrected to true thickness for gold value calculation.

7.7Hydrogeology

A total of three underground drill holes have been drilled for dewatering purposes at various locations within the mine.

7.8Geotechnical Data

7.9Commentary on Exploration

Surface drilling was used as the initial exploration drilling, and this was later infilled to provide sufficient detail from undergoing exploration holes to get additional information closer to the reef intersections for geological modelling and Mineral Resource estimation.

The underground infill drilling system is in place to improve data density in specific areas and are drilled from the underground development access drives.

The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to support the estimation of Mineral Resources and Mineral Reserves.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

8Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

This section summarises information relating to the sample preparation on site through to the laboratory preparation and analysis.

8.1Sampling Method and Approach

Sample types used to support both production and geological exploration include diamond drill core samples and channel (chip) samples.

8.1.1Channel Samples

Channel sampling is undertaken according to industry best practice, as well as according to Harmony’s Underground Sampling Procedure. A standard practice for the sampling of stopes and development ends is required to ensure quality of sampling information and safety in its collection. Such a document exists within Harmony, and all samplers and sampling crews are trained based on the rules of the sampling standard. The standard specifies all the steps and rules involved in the preparation of the face and the collection of samples, as well as all safety aspects of sampling.

The samples are individually chipped out to an even depth (1 to 2cm to replicate the same amount of sample as would be recovered from half BX core), commencing from the bottom sample. The remainder of the samples are chipped in succession up the face. Contamination of samples is reduced to a minimum by starting at the bottom.

All geological data (faults, dykes) between sampling sections are measured and recorded in the sampler’s field book. The sampler also records the numbering and positions of samples. All samples are bagged and sealed.

Samples are taken from underground by the samplers. Before they are delivered to Harmony Assay Laboratory, each sampler submits samples to the Sampling Supervisor who checks the numbers of samples against the field book provided by the Sampler. Thereafter, a waybill is created for authorisation for samples to be transported to the laboratory. All inter-person transfers are recorded. This process continues until the samples are delivered to the laboratory, where the chain of custody form is signed evidencing the date and time of sample receipt.

8.1.2Core Samples

Once core logging is completed, core is marked off and sampled. Reefs are sampled in such a way that the samples overlap the top and bottom contacts by 2cm to prevent dilution of the reef samples by unnecessary waste. The core yard assistants use the contacts marked by the Senior Geologist to demarcate the samples. The standard sample length is a minimum of 12cm and a maximum of 30cm, and the core is split along the apparent dip direction (low point) to preserve the apparent dip angles for the geologist to record. The split also follows-on from one tray to the next.

Core splitting is undertaken only on the surface drill holes.

Details of the samples are captured on the electronic database pending results from the designated laboratory. Details include the drill hole name, samples numbers, sample depths, from and to interval, and date on which the samples were submitted for assay.

8.2Density Determination


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A relative density (“RD”) of 2.75 was historically determined for in situ rock at Joel. The relative density of broken rock was estimated at 1.67. No recent RD verification work has been carried as the mine continues to mine the same reefs.

8.3Sample Security

Chip samples are bagged, sealed and transported to the core yard at the mine on the same day as they are collected. The core yard is a secure facility with access control measures in place. Samples are collected from the mine by dedicated laboratory personnel.

Cores are delivered to the core yard at the end of each day for secure storage. Sampling only takes place at the core yard. The samples are bagged and sealed and stored until they are delivered to the laboratory. All old core is sent to the main core yard at the main offices of Harmony in Welkom.

8.4Sample Storage

All pulp samples of surface exploration drill hole intersections and underground chip sample are kept for a few months at the laboratory and later discarded. The remaining half of the sampled core of exploration holes is kept at the core yard for future references. Underground cores are all sampled and therefore no core remains.

8.5Laboratories Used

No information has been provided on the laboratories used for the historical drill holes.

Currently, core samples are sent to Harmony Assay Laboratory in Welkom for preparation and assay. The laboratory is ISO/IEC 17025:2017 certified for chemical analysis by the South African National Accreditation System (Accreditation No. T0520). Harmony Assay Laboratory is not an independent laboratory.

8.6Laboratory Sample Preparation

Upon receipt at the laboratories, the samples are dried, crushed, pulverized and sorted. The main difference between the two laboratories is in the preparation and aliquot size used for analysis. Chip samples are pulverized, and the aliquot size of the samples is 25g. The core samples are milled to a pulp as per the internal Standard Operating Procedure document (reference no. M501). From the prepared pulp, an aliquot sample size of 50g is mixed with the prescribed flux and fused at a temperature ranging between 1,100°C to 1,200°C.

8.7Assaying Methods and Analytical Procedures

All samples are assayed for gold by fire assay and gravimetric finish. Pulverised samples (85% passing 106 microns) are fused with a suitable flux. The flux combines with the gangue to form a fluid slag and the litharge in the flux is reduced to minute globules of lead.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

yellow colour. The mass of the prill is measured on an assay balance. To ensure that a high standard of analysis is maintained, each step of the analytical process and procedure, including the adherence to safety standards, is checked by a supervisor.

8.8Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

A total of 23,379 samples were submitted to Harmony’s laboratory during 2021, including 420 were blanks, 420 were duplicates and 420 were SRM samples.

8.8.1Standards

A range of SRMs were sourced from the African Minerals Standards (“AMIS”) and inserted into the sample sequence by the logging geologist.

For analysis of underground / surface drill holes one gold SRM is required for every 20 drill hole samples assayed, or 5% of the total drill hole samples analysed.

Laboratory statistical control is deemed acceptable should SRMs be within two standard deviations of the recommended value. Investigative action is taken when reference materials returned exceed the standard deviation limit. If the SRM or blank sample has been deemed to have failed, the entire batch of samples assayed with this failed QAQC sample must be identified. A request must then be sent to the laboratory requesting the laboratory to repeat the assay procedure on all samples within the batch.

A second SRM or blank sample is provided to the laboratory to include with the batch of samples. Should the batch of samples fail the QAQC standards again, these samples are excluded from the sampling database (not captured in the sampling system), and the panel/drill hole will have to be resampled if necessary. In addition, regular audits of the laboratory processes and facilities are conducted by mine evaluators and regional experts to monitor compliance and quality controls.

A total of 420 SRM were submitted to Harmony Assay Laboratory during 2021, for which the results are summarised in Table 8-1. No SRMs failed with the first analysis.

Table 8-1: Summary of Harmony Assay Laboratory SRM Performance


SRM	No. Submitted	No. Failed	% Failed	% Bias
AMIS0729	12	0	0	-2
AMIS0553	86	0	0	1
AMIS0693	28	0	0	38
AMIS0785	174	0	0	0
AMIS0782	78	0	0	5
AMIS0705	42	0	0	6
Total/Average	420	0	0	8

8.8.2Blanks

A total of 420 blank samples were submitted to the laboratory during 2021. The lowest detection limit at the laboratory is 0.063g/t. A control chart for performance of the blank samples indicates that no outliers (results outside three standard deviations) were observed from a total of 420 samples. Most of the results plot within two standard deviations.

8.8.3Duplicates

A total of 420 duplicates were submitted during 2021, and results of duplicate analysis indicate that precision is within the required limits.


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8.9Commentary on Sample Preparation, Analyses and Security

It is the opinion of the QP that:

•the chip sampling method is appropriate for the mineralisation styles encountered at Joel;

•the drill core sampling method is appropriate for the mineralisation styles encountered at Joel;

•for the year 2021, no SRM samples failed;

•the sample preparation, security and analytical procedures followed for gold grade determination are adequate; and

•the results of the QAQC assessment have been appropriately addressed to ensure that the assay results of the primary samples are adequate for Mineral Resource estimation.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

9Data verification

Section 229.601(b)(96) (9) (i-iii)

9.1Databases

Underground and surface drill hole data is stored in CADSMine version 8 (“CADSMineTM”) sampling database. The drill hole data is stored in real coordinate systems (True North is 0° and LO X, Y and Z above msl). This standard is used to facilitate the presence of both surface and underground drill holes in one database.

The channel sampling data is captured through the GMSITM Sampling System. This system minimises errors, but all sample sheets are checked for obvious errors in spatial positioning of samples. Additionally, only authorised sample sheets are imported, being authorised that all information is correctly captured.

9.2Data Verification Procedures

Data verification procedures included the following:

•the drill hole database was checked against the original logs;

•the database was checked for missing collar coordinates, collar position and elevation errors, downhole survey errors, interval errors and duplicate sample records;

•when assay results for drill holes were returned from the laboratory, they were captured into CADSMineTM by the Senior Valuator. The QC sample results were assessed for performance before the primary sample results could be used for Mineral Resource estimation;

•the primary assay results captured in the database were validated by spot checking a selection of drill holes used in the current Mineral Resource estimate; and

•all assays captured in the GMSITM and CADSMineTM databases were checked against the original laboratory certificates.

Duplicates, as well as any obvious inconsistencies were removed from the database. The extracted data was also visually checked in DatamineTM modelling software to ensure it at the correct position and elevation.

9.3Limitations to the Data Verification

The are no limitations to the data verification process.

9.4Comment on Data Verification

The QP is of the opinion that the Joel drill hole and sample database is reliable and adequate for the purposes of Mineral Resource estimation.


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10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

The Harmony One plant and its processing facility have been in operation since 1986, as such the mineral processing method is considered well established for the style of mineralisation processed.

10.1Extent of Processing, Testing and Analytical Procedures

The mineralogical investigation consisted of head chemical analysis, X-ray diffraction (“XRD”), QEMSCAN analysis and heavy liquid separation (“HLS”). Each HLS fraction underwent automated mineralogical analysis by QEMSCAN (concentrate/sinks). The mineralogical investigation involved determining the gold species and their occurrence in the samples, including gold grain size distribution, liberation and association.

From the two submitted samples, a representative aliquot of each sample was sub-sampled for chemical analysis, mineralogical analysis and HLS. The aliquots were pulverised and homogenised for X-ray Diffraction analysis (XRD) and chemical analysis. The unpulverised portion was prepared into polished section for quantitative evaluation of minerals by scanning electron microscope (QEMSCAN) analysis and the other unpulverised 1kg of each sample was subjected to HLS

10.2Test Results and Recovery Estimates

The chemical analysis of Beatrix Reef feed samples shows that they have a gold grade of 5.1g/t. The results also shows that, in relation to major element concentrations, samples are dominated by quartz (SiO2 - c.87%) and aluminium oxide (Al2O3 - 4,2%) with minor to trace concentrations of potassium oxide (K2O), iron oxides (Fe2O3), magnesium oxide (MgO), loss on ignition (“LOI”) and calcium oxide (CaO) observed (<3%). These results suggest that the sample is composed of aluminium-silicate minerals (e.g., quartz, pyrophyllite, feldspar, chlorite and mica); limited to negligible concentrations of sulphides and carbonates and/or clays can be inferred from the relatively low LOI value of <2%.

Native gold is the only gold species detected in the two samples. From the bulk modal analysis, the presence of pyrite and carbonates were observed; these are known to be the reagent and oxygen consumers. Quartz was found to be the major mineral in the feed samples, with minor amounts of iron oxide minerals, mica, chlorite and pyrophyllite. However, the majority of the gangue minerals were upgraded to the floats fraction during HLS.

The trace mineral search (“TMS”) bulk mineral composition shows that the Beatrix Reef is 1.11% of the mass waith pyrite as the main sulphide mineral at greater than 70% of the mass in all samples. The grains size distribution of Joel Reef ranges between <30 and 80μm. In general, the grain size distribution of gold grains is erratic. It is based on the premise that the phases of primary interest (i.e., target phases) have a higher back-scattered electron brightness than the bulk of the gangue phases. This enables each block to be scanned for particles containing the target phase, and only those of interest are fully analysed. As the entire block is scanned, this also produces the highest possible statistical population for the trace phase.

10.3Degree of Representation of Mineral Deposit

Two samples were taken from different locations within the Beatrix Reef and as a result the samples may be considered representative.

10.4Commentary of Mineral Processing and Metallurgical Testing

The metallurgical test work demonstrated there is potential to upgrade the ore through HLS. Notwithstanding there being insufficient material mass of Beatrix Reef to conduct gold fire assays, the QEMSCAN data showed that there was an upgrading of the gold grains.

The QEMSCAN data further showed that the majority of gold grains are associated with the sulphides. It is a particularly useful analysis method for determining losses of sulphides and precious metal phases to silicate-rich tails.

The process efficiency was determined to have total gold recovery typically ranging c.95-97% and gold not dissolved, typically c.4 %.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

Two samples were taken from different locations within the Beatrix Reef and as a result the samples may be considered representative.

The reader is referred to the Modifying Factors in Section 12.2, which contain the recoveries used for the LOM Plans for Joel. A detailed description of the processing facilities is provided in Section 14.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

11Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

The current Mineral Resources for Joel have been estimated using DatamineTM. A scripting/macro system has been generated, which is linked to a customised scripting menu. This scripting menu allows for professional and easy managing of the data and building of geostatistical models.

Geological modelling is undertaken using wireframes of faults and the lower surfaces of mineralised packages.

Modelling is undertaken only for the Beatrix Reef and is estimated individually without data from adjacent reefs. Estimates are generally kriged into parent cells and then assigned to sub-cells, using associated variograms and estimation parameters.

11.1Geological Database

The Joel geological model is based on historic and recent drill hole and chip sampling data collected up to and including 30 December 2021. The database was exported from the electronic database to DatamineTM modelling software.

11.2Global Statistics

Histograms and statistics of the raw data are prepared for each geological domain for comparison purposes. The Coefficient of Variation ("COV"), calculated by dividing the standard deviation with the mean, gives a measure of the variability of the data. A high COV (>1) represents highly variable or highly skewed data, which may require some form of capping of extreme values to lower the COV to a more reasonable value (c.1).

A total of 148,483 drill hole samples (surface and underground) were used for the geological model. The global statistics, by geozone are presented in Table 11-1.

Table 11-1: Summary of the Gold Assay Descriptive Statistics


Geozone	No. Samples	Minimum (cmg/t Au)	Maximum (cmg/t Au)	Mean (cmg/t Au)	Variance	SD (cmg/t Au)	COV
1	41,414	0.48	6,176	997	197,367	444	0.445
2	7,785	1.00	5,388	945	222,753	471	0.499
3	23,529	0.32	6,184	1,108	283,549	532	0.480
4	2,618	3.00	4,187	1,040	192,334	438	0.428
5	1,551	3.00	2,714	688	111,892	334	0.494
6	1,060	4.00	6,532	1,376	244,362	494	0.364
7	96	83.00	3,947	1,237	156,447	395	0.328
8	10,343	3.00	5,037	1,078	224,142	473	0.447
9	33,724	1.00	4,491	961	156,399	395	0.418
10	11,875	0.54	4,527	847	128,874	358	0.434
11	14,332	0.12	3,578	618	142,408	377	0.623
12	156	148.00	553	553	362,960	602	0.733
Total	148,483

11.3Geological Interpretation

Twelve geozones have been modelled Joel, with mining predominantly concentrated in geozones 2 and 3. The location of the geozones is presented in Figure 11-1.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 11-1: Location of the Mineral Resource Blocks Geozones


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Geozones are continuously updated based on geological information, new sampling and drill hole results. Any proposed changes to the geozones presented, discussed and signed off by the geostatistical team.

No changes to the geozones were made between 2021 and 2022. However, due to the current development of raises and drilling that is taking place between geozone 3 and geozone 12, there is a possibility of adding another geozone (geozone 13) in this area. The type of facies intersected is different from geozone 3 and geozone 12. Further data is required prior to finalisation.

11.3.1Wireframe and Structural Model

Geological sections, orthogonal to strike, were constructed and used as the basis of the geological wireframe model creation in DatamineTM. The structural and geological styles were propagated from section to section, by superimposing successive sections on one another. When constructing sections, the following datasets were be utilised:

•drill holes from SABLETM;

•geological mapping from CADSMineTM; and

•structural mapping from CADSMineTM.

The wireframes were verified through visual inspection to check that the upper and lower surfaces do not intersect each other and that surfaces correspond to the relevant horizons in the drill holes and the development mapping.

11.4Drill Hole De-survey

All data have been de-surveyed to their original position, prior to any faulting or folding, and relative to a reference point in the mineralised horizons.

Drill holes are de-surveyed utilising the DatamineTM HOLES3D de-survey process. An error log is generated as part of this process and any identified errors are repaired accordingly. A DatamineTM script is utilised to prepare the downhole surveys to add in a zero-position survey, which DatamineTM requires to de-survey a drill hole.

A core bedding angle (“CBA”) field is also created, which is sourced from both the Assay and Geology SABLETM logs. Missing CBA values are populated using an algorithm which utilises existing data. True channel widths are determined in later processes using the CBA field. The average gold grade for each sample is determined from the SABLETM Assay Log.

11.5Compositing

The drill hole and chip samples are composited over the full length of the reef intersection.

11.6Capping

Capping allows for meaningful semi-variogram modelling and avoids potential over-estimation due to extreme sample values. aping parameters for both grade and CW are summarised in Table 11-2. Outlying values for both g/t Au and channel width (“CW”) are calculated per geozone at an optimal percentile using the Quantile process.


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Table 11-2: Grade and CW Capping Parameters


Geozone	Au Cut (g/t) (Max)	CW Cut (cm) (Max)
1	6,176	281
2	5,388	252
3	6,184	272
4	4,187	254
5	2,714	228
6	6,532	159
7	1,306	224
8	5,037	272
9	4,491	238
10	4,527	171
11	3,578	226
12	553	80

11.7Experimental Semi-Variograms and Fitted Models

The experimental semi-variogram is a descriptive statistic diagnostic tool for spatially characterising regionalized variables and is central to the process of kriging with the set data that can be used. The semi-variogram is a mathematical function that describes how the spatial continuity of the sampled attribute changes as a function of distance and orientation.

Point-support semi-variograms are modelled for the Measured Mineral Resources; 60m x 60m declustered-support semi-variograms are modelled for the Indicated Mineral Resources and 120m x 120m declustered-support semi-variograms are modelled for the Inferred Mineral Resources.

11.8Block Model

Grade and thickness estimates are undertaken within the domains or geo-zones and informed by statistical and geostatistical analysis. Channel width and gold accumulation (cmg/t), which factors both reef thickness and grade, are the two variables estimated. No change of support corrections are considered necessary as it is assumed that the differing support sizes for chip samples and drill hole samples are negligible.

11.9Mineral Resource Estimation Methods and Parameters

The estimation method used for the local Measured Mineral Resource estimates is Ordinary kriging (“OK”) and for the Indicated and Inferred estimates, simple macro kriging (“SMK”).

Estimates are generally kriged into 30m x 30m blocks for the Measured category, using point support data. The Indicated category estimates are kriged into 60m x 60m blocks, using the associated semi-variograms, utilising a macro kriging declustered data set. Similarly, the Inferred category estimates are kriged into 120m x 120m blocks, using the associated semi-variograms.

The current minimum and maximum of data points is 14 and 25 for Measured Mineral Resource estimation, 8 and 20 for indicated Mineral Resource estimation and 3 and 10 for Inferred Mineral Resource estimation. Any un-kriged areas in the Inferred category regions are then estimated using a global mean. For the search parameter files, the ellipsoid search is equivalent to the associate variogram angles and ranges.

The Measured Mineral Resource model is constrained using the Slope of Regression Estimation Confidence and merged together with the Indicated Mineral Resource and Mineral Resource models to produce a combined kriged block model.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

Grade and thickness estimates are undertaken within the domains or geozones and informed by statistical and geostatistical analysis. Channel width and gold accumulation (cmg/t), which factors both reef thickness and grade, are the two variables estimated. No change of support corrections are considered necessary as it is assumed that the differing support sizes for chip samples and borehole samples are negligible.

The distribution of the gold grade is show in Figure 11-2.

11.10Density Assignment

The RD applied at Joel is of 2.75. Reef volume is determined by block area multiplied by the thickness estimate. The tonnage of each reef horizon is determined by multiplying the volume by the RD.

11.11Block Model Validation

The Joel block model was validated using the following:

•visual comparisons with the raw drill hole data;

•comparisons of the raw drill hole data statistics with the model statistics;

•model volume; and

•visual assessment of the block model with drill hole intersections to ensure that the grades are locally honoured by the model.

Swath analysis strips were created for geozones 1 and 3 running north/south and east/west. These two geozones comprise the majority of the current Mineral Resource estimate. The resultant analysis of these swath strips are summarized as follows:

•in geozone 1 the swath plots suggest a strong correlation between model and data;

•in geozone 2 the swath plots suggest a strong correlation between model and data. This is a very narrow facies that is running almost North South; and

•the swath plots suggest a strong correlation between model and data. This is a very narrow facies that is running almost north / south.

In conclusion, the swath plots for geozone 3 did not indicate a strong correlation between model and data. However, when viewed spatially, the model did correspond to the data. One needs to consider that the data and models spatially do not always match perfectly. The slight mismatch between model and data raised a red flag, which was dispelled through additional visual checks.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 11-2: Distribution of Gold Grade at Joel


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

11.12Mineral Resource Evaluation

The Mineral Resource estimate at Joel is considered to have reasonable prospect for economic extraction by underground mining methods. This is demonstrated by the results of the cash flow for the mine. The cut-off grade for the Mineral Resource is determined at 558cmg/t gold based on the economic assumptions presented in Table 11-3 at the effective date of 30 June 2022. This cut-off grade represents typical costs for the mining method and preliminary mining and metallurgical recovery assumptions.

Table 11-3: Harmony Economic Assumptions (30 June 2022)


Description	Unit	Value
Gold Price	USD/oz	1 723
Exchange Rate	ZAR:USD	15.35
Gold Price	ZAR/kg	850 191
Plant Recovery Factor	%	94.18
Unit Cost	ZAR/t	3 194

Note: Unit cost includes cash-operating cost, royalty and on-going development capital.

The gold price was derived by the Harmony Executive Committee at Head Office. The QP considers the price to be appropriate for Mineral Resource estimation and is slightly higher than that used for estimating Mineral Reserves (USD1,535/oz). The operating costs (both mining and processing) are based on historical performance and budget.

11.13Mineral Resource Classification and Uncertainties

Distinctions between the Mineral Resource categories, based on data density and spatial relationships of gold grades, are defined through variography.

Where block grades are estimated by data and separated by distances greater than the maximum grade continuity ranges, they have been classified as an Inferred Mineral Resource. Blocks are therefore not informed by the first kriging run (where the search ellipse was matched to grade continuity ranges) and entirely inferred. Delineation of blocks are based on the structure while the Mineral Resource classification is based on the slope of regression (“SR”). The classification for Joel Mineral Resource blocks is based on SR results and data spacing which is in line with the drilling grid. The classification criteria for Joel is summarised in Table 11-4 and, in general, the drill hole spacing used is based on the SR.


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Table 11-4: Joel Mineral Resource Classification Criteria


Mineral Resource Category	SR	Drill Grid (m)
Measured	> 0.7	30 x 30
Indicated	> 0.6	60 x 60
Inferred	< 0.6	> 120

Historical data is used when classifying Mineral Resource blocks. No geological discounts are applied to either the geological or estimation models. Geological losses are already built in the wireframes of the Beatrix Reef.

Factors that may affect the Mineral Resource estimates include the following:

•actual RD values may be different to the single RD values of 2.75 for fresh and 1.67 for broken applied;

•gold price assumptions;

•exchange rate assumptions;

•operating and capital cost assumptions;

•gold recovery assumptions;

•geology-related risks; and

•operational risks.

11.14Mineral Resource Estimate

The Mineral Resource estimate, as at 30 June 2022, exclusive of the reported Mineral Reserves is presented in Table 11-5. The location of the Beatrix Reef Mineral Resources is presented in Figure 11-3.

The QP compiling the Mineral Resource estimates is Ms FO Muthelo, Ore Reserve Manager at Joel, who is an employee of Harmony.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

Table 11-5 :Summary of the Joel Mineral Resources as at 30 June 2022(exclusive of Mineral Reserves)1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	1.650	9.17	15,138
Indicated	2.794	6.92	19,336
Total / Ave. Measured + Indicated	4.444	7.76	34,474
Inferred	7.043	5.11	35,954
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	1.819	0.268	0.487
Indicated	3.080	0.202	0.622
Total / Ave. Measured + Indicated	4.899	0.226	1.108
Inferred	7.763	0.149	1.156
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Ms FO Muthelo, who is Ore Reserve Manager at Joel, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 558cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.

Factors that may affect the Mineral Resource estimates include the following:

•gold price assumptions;

•exchange rate assumptions;

•operating and capital cost assumptions; and

•gold recovery assumptions.

11.15Audits and Reviews

The Mineral Corporation Limited (“MineralCorp”) carried out a Mineral Resource audit for Joel in 2020. The aim of the audit was to determine whether the geological model and the process followed are done correctly (Mineral Corporation, 2020).

MineralCorp concluded that there were no fatal flaws or material issues identified in relation to the input geological data, geological modelling and estimation of the 2020 Mineral Resource estimates.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 11-3: Location and Classification of Joel's Mineral Resources and Mineral Reserves for the Beatrix Reef

The 2020 Mineral Resource estimates were supported by an extensive validated geological database, with the geological modelling underpinning the estimates guided by historical performance. Data collection and validation were performed by suitably trained geological personnel and signed-off by QPs according to internal standards.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

11.16Mineral Resource Reconciliation

The Mineral Resources of 30 June 2021, exclusive of Mineral Reserves, decreased from 1.209Moz to 1.156Moz.

This difference was primarily attributed to lower than expected grades in geozone 3 being intersected, which included 129 E11 raise line and 137 E4 raise line.

11.17Commentary on Mineral Resource Estimate


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

12.1Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

The Mineral Reserve is based on the latest geological structure model, associated Mineral Resource estimation models and the selected mining method. A detailed mine design and schedule is done by the planner using CADSmine V8.0 taking into consideration geological structures that might affect mining. The final Mineral Reserve is derived from this schedule with appropriate Modifying Factors applied.

The cut-off grade is determined using the Optimiser, a purpose-built Excel spreadsheet developed a planning tool. All the blocks falling into the Measured and Indicated Mineral Resources are used to determine the cut-off grade. The ZAR per tonne, milled tonnes, MRF and the gold price are also taken into consideration when determining the cut-off grade. The cut-off grade for the financial year 2022 - 2023 is 915cmg/t. After the cut-off grade has been determined all the blocks that are below the cut-off grade will not form part of the Mineral Reserves.

12.2Modifying Factors

An 18-month ore flow is used to determine the historic reliability of the Modifying Factors, however future strategy and changes in mining conditions are also taken into consideration in their determination.

The Modifying Factors are consistent with the modelling, planning and computing estimates used in determining the Mineral Reserves, which are also consistent with historical performance. The Modifying Factors used to convert the Mineral Resources to a Mineral Reserves for Joel are presented in Table 12-1. The Plant Recovery Factor is also consistent with the processing and recovery as defined in Section 14.

Table 12-1: Joel Mineral Reserves Modifying Factors (30 June 2022)


Modifying Factor	Unit	Value
Relative Density	t/m3	2,75
Average Stoping Width	cm	156,00
Gully	%	4,50
Off reef	%	0,94
Waste to Reef	%	3,80
Flushing Tons	%	2,35
Discrepancy	%	0,27
Mine Call Factor (MCF)	%	84,00
Plant Recovery Factor (PRF)	%	94,18
Mine Recovery Factor	%	79,11
Plant Call Factor	%	100,00
Mineral Reserve Cut Off	cmg/t	915


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12.3Mineral Reserve Estimate

The Mineral Reserves for Joel were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

The Mineral Reserve estimate for Joel, as at 30 June 2022, is summarised in Table 12-2. The location and classification of Mineral Reserves is presented in Figure 11-3.

The QP compiling the Mineral Reserve estimates is Ms FO Muthelo, who is Ore Reserve Manager at Joel, and an employee of Joel Mine.

Table 12-2: Summary of Joel Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	2.781	5.01	13,941
Probable	0.954	4.85	4,631
Total (Proved + Probable)	3.735	4.97	18,572
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	3.066	0.146	0.448
Probable	1.052	0.142	0.149
Total (Proved + Probable)	4.117	0.145	0.597
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Ms FO Muthelo, who is the Joel Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. Mineral Reserves are reported using a cut-off grade of 915cmg/t determined using a gold price of USD1,546/oz gold.

12.4Mineral Reserve Reconciliation

The declared Mineral Reserve decreased from 639koz as at 30 June 2021 to 597koz as at 30 June 2022 The key differences were due to intersecting lower than expected grades in geozone 3.

12.5Commentary on Mineral Reserve Estimate

The declared Mineral Reserves takes into consideration all Modifying Factors, respective to the mining area. The declared Mineral Reserves are depleted to generate the Joel cash flows. Although the economic analysis of the cash flows displays a positive result, there is a negative cash flow in the current year (FY2022-23) due to major capital expenditure for the refrigeration plant. The cash flows are, however, deemed both technically and economically achievable.

Any by-products that are recovered as part of the refining process, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimate.

There are no obvious material risks that could have significant effect on the Mineral Reserves, other than those risks mentioned in the LOM Plan.

In the opinion of the QP, given that Joel is an established operation, the modifying factors informing the Mineral Reserve estimates would at a minimum, satisfy the confidence levels of a Pre-Feasibility Study.


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13Mining Method

Section 229.601(b)(96) (13) (i-v)

Joel is an intermediate-depth underground gold mine that consists of two shaft complexes interconnected via a triple decline system, spanning four levels and mining at depths of up to 1350m BMD. Joel currently has a LOM expectancy of nine years, which includes mining up to 137 level in a block of ground swapped with the neighbouring Beatrix Mine.

Joel was originally designed to adopt trackless mechanised mining when production commenced at South Shaft, but in 1994 a decision was made to change to conventional mining mainly due to the high operating costs of trackless mining. Joel consists of two interconnected shaft complexes, the South Shaft complex which is the main operational shaft and the North Shaft which is available for hoisting ore.

13.1Mining Operations

Joel’s upper mining levels are in a mature phase of operation. The decline project development, from 129 to 137 levels, which started in 2011, is complete. This included mining up to 137 level and the Beatrix Mine block swap. The decline project to access the orebody from 137 level included two declines that were developed at 12° from 129 level – a chairlift decline and a conveyor belt decline. The belt, main tips and chairlifts have been completed. Primary footwall development is currently underway on 137 level and production from the 137 level E5 raise, 137 E4 raise and 137 E6 Raise is ongoing. Currently Joel us developing 137 E3 raise which scheduled to hole in August 2022.

Joel has adopted conventional breast mining on a scattered grid (or scattered mining) which is tailored to the variable grades intersected as well as the associated rock-related hazards anticipated at this depth.

The primary economic reef mined is the narrow tabular Beatrix Reef, accessed via conventional grid development.

13.1.1Scattered Mining

Given the variable grades and geological complexity at Joel, mining is conducted mainly in terms of a pre-developed scattered mining method which provides for unpayable and geologically complex areas to be left unmined with some cognisance taken of the overall panel configuration and stability of footwall development. The layout of the scattered mining design is presented in Figure 13-1.

Stoping panel stability in an intermediate stress environment may require additional stabilising pillars be left to support the immediate hanging wall. These take the form of inter-panel crush pillars between neighbouring mining panels. The major rock-related risk is the occurrence of unexpected panel collapses. Minor falls of ground, due to geology, bedding, shale and jointing, do occur but are mostly addressed via a proven in-stope support system. As the largest portion of Joel’s production is currently mined between 129 and 137 levels, production is focused mainly on four or five raise lines.

Mining consists of horizontal footwall development to access the reef horizon with inclined development on the reef plane to establish mining faces (Figure 13-2). Ore is cleared from the stopes through ore passes into the underlying cross-cuts.

Mining has also progressed into more complex geological areas where dip and strike-related structures are more commonly intersected. The change to a higher support resistance system, given the intersection of a more complex geological environment, has been largely successful and the occurrence of large geological “back breaks” and falls of ground are rare. Timber-based packs were installed along gullies and as breaker line support in panels to improve hanging wall stability. It is of utmost importance that geological structures are identified, mapped and properly supported using high-support resistance pack units to ensure a stable stoping horizon.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa


Figure 13-1: Plan View of the Scattered Mining Method and Grid Layout


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Figure 13-2: Schematic Section of Typical Footwall and On-Reef Development

13.2Mine Design

Mine design is done internally for the Beatrix done using the DatamineTM software. The geological models, and the geotechnical parameters formulated by the Rock Engineers, are used as a basis of the mine planning process.

13.2.1Mine Design Parameters

The mine design parameters used for Joel are presented in Table 13-1.


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Table 13-1: Joel Mine Design Parameters


Parameter	Unit	Value
Regional Stability
Dip Stabilizing Pillar Dimensions
Strike Span	m	120
Dip Span	m	4
Strike Stability Pillar Spacing¹	m	8
Access Haulages Middling to Reef	m	60
Primary Development
Advance	m/month	25
Crosscut Spacing	m	140
Secondary Development
Advance	m/month	20
Stoping Parameters
Average Channel Width	cm	110
Average Stoping Width	cm	156
Economic Parameters
Relative Density	t/m3	2.75
Cut-off Grade (planning)	cmg/t	915
Notes: 1. Pillar spacing is measured skin to skin.

13.3Mine Plan Development and Life of Mine (“LOM”) Schedule

The planning process is dependent on the input from the Mineral Resource department where responsibility is assigned for revision and signing-off of the Mineral Resource. The resource forms the basis for the subsequent design, planning and extraction of reserve into the LOM Plan. The block plan remains dynamic month on month and each month the new face positions are updated and blocks adjusted accordingly.

The blocking for the LOM was based on the monthly depleted blocks and closed structure in December 2021. Blocks above a cut-off of 915cmg/t were used to determine where the LOM blocks should be planned. Some unpay blocks were included in the LOM mainly for access purposes. This process was completed by using a combination of geological modelling, current production results, previous mine planning parameters and production scheduling, and then incorporated into CADSmine and finally exported into Datamine.

Threats to the LOM Plan include:

•the uncertainty of the layout of the VS5 block may result in the wrong evaluation of the orebody during planning;

•the orebody grade may be too low to be profitable during mining operations;

•uncertainty of the orebody during planning could result in incorrect decisions being taken regarding Joel LOM Plan; and

•the intersection of major water or methane bearing structures.

Currently South Shaft generates approximately 38ktpm of ore and 2ktpm of waste resulting in gold production of approximately 171kg per month. This is sustained from approximately 7,600m² of ore mined per month with mineable Reserves being replenished through 300m of development per month.

The production levels providing the ore to achieve this mining rate include 117, 121,129 and 137 levels. On 137 level there are currently five raise lines on reef (137 E5, 137 E4, 137 E6, 137 E6A and 137 E3). Raise lines 137 E4, E5 and E6 are in full production. Raise line 137 E6A and E3 are engaged with reef development. Raise line 137 E3 is scheduled to hole in August 2022. Raise line 137 E6A was temporarily stopped due to the rolling of the reef down and flooding as a rate of 22kL/h). Drilling has since been completed and the raise can start to mine.

The 3.74Mt of Mineral Reserves are included in the LOM Plan and are fully accessible through Joel’s existing infrastructure. The mining rates used in determining the LOM Plan are based on the current and expected


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operational performance, notwithstanding any unforeseen underground mining constraints. The remaining LOM for the operation is eight years, with a planned mining rate averaging at approximately 466ktpa (milled tonnes) over the LOM period (Figure 13-3) producing an average of 70kozs of gold per annum (Figure 13-4). The extent of the Joel’s LOM Plan is shown in Figure 13-5.

13.4Geotechnical and Hydrological Considerations

With the marginal increase in depth and the more complex geological environment, the incidence of low magnitude (<1.5) seismic events has slowly increased. This activity has manifested mainly in reasonably low stress (45Mpa) strike-orientated dyke intersections with stoping excavations. The installation of a 10-station regional seismic network to highlight potentially unstable areas and structures prone to bursting was completed with the seismic data used to highlight potential problem areas. The seismic network is maintained, and its operational and health status are kept well above the 80% mark.

The change to higher support resistance systems due to the more complex geological environment has been largely successful and the occurrence of large geological driven “back-breaks” and falls of ground are few and far apart. Changes to support standards were implemented to ensure back area and gully stability by installing timber-based packs as gully support and pack breaker lines every 10m and 15m from the working face. From a management perspective it is of utmost importance that geological structures are reported, mapped and adequately supported using high support resistance pack units to ensure a stable stoping horizon.

The decline project and subsequent development of large excavations required that site specific additional support systems be introduced in the form of end-anchored and full-column grouted long anchors. The support systems are necessary to cater for the increase and subsequent risk of larger falls of ground due to the increase in excavation spans. As secondary support installation was limited in the past, specific secondary support crews were introduced.

Like many of the mines in the Free State Goldfield intersections of water and methane-bearing fissures are common, and therefore care is taken whenever there is a water intersection in the workings. Currently Joel has a contractor that is always on stand-by at the mine to seal any water intersections. Workings on 137 level have a high possibility of water intersections and consequently cover holes are always drilled into virgin ground ahead of mining. The holes are always drilled 120m ahead of current mining face to assist with forward planning in case there is any water intersected by these holes.

13.5Dilution and Grade Control

Dilution is determined for stoping and development is based upon information taken from the historical 18-month ore flow. The calculated dilution factors for FY2023 were set at 0.94% from stopes and 3.80% from off reef development.

13.6Ore Transport

In-stope rock movement of blasted ore is by electric-powered scraper winches to the tips/ore passes where it gravitates down to loading boxes in the crosscuts. This is similar for rock blasted in reef development ends. The ore which has been pulled into the tips/ore passes is loaded into the hoppers and trammed by train to the main tips/ore passes at the shaft where it is hoisted to surface.


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Figure 13-3: Graph of Joel LOM Plan - Tonnes and Grade

Figure 13-4: Graph of Joel LOM Plan - Gold Produced (kg)


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Figure 13-5: Joel LOM Plan - Mining Block and Sequence Detail


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In off reef development ends pneumatic mechanical loaders are used to load the broken rock directly into hoppers which is trammed in the same fashion to the main tip/ore passes. There is no separate reef and waste system at Joel and all rock is hoisted as reef.

All rock blasted is hoisted at North Shaft during the afternoon and night shifts. The shaft has the capacity to hoist approximately 2,300tpd, giving a total of 55,200tpm over 23 shifts. The hoisting takes place from 137 level by means of long and short conveyor belts discharging into the bin, then directly into the skip. No measuring flask is used but there is a weightometer on the belt to measure and control the amount of tonnage discharged into the skips. An Onsetter or Timberman is always present at the loading station to ring the signals once the skip is full as the winder is not automated.

The hoisted ore is discharged into the headgear bins, and in turn discharged onto the sampling conveyor belt then into the trucks which transport the ore by road 40km to a pad outside Bambanani Mine. From here it is re-handled and railed to the nearby Harmony One Plant.

13.7Mining Equipment and Machinery

The major mining equipment and machinery is presented in Table 13-2.

Table 13-2: Mining Equipment


Equipment Area	Equipment Type	Model	Quantity
Stoping and Development	Rockdrill machines	Seco 215	57
	Rockdrill steel rods	22mm hex rubber collar	500
Engineering	Locomotives	Goodman	23
	Rock hoppers	6-ton bottom discharge	70
	Electric winches	Sullivan	65
	Material cars		280

13.8Mining Personnel

Joel’s mining operations are labour intensive. The underground work force is essentially split into two categories that are either involved in production activities or they provide supporting services required underground. Production activities are directly related to the mining of ore and non-production personnel provide supporting services such as safety, engineering functions, maintenance, decline chairlift manning and underground store controls (Table 13-3).

Table 13-3: Mining Personnel


Labour Requirement			No. of Employees
Production
Underground Employees			1,031
Contractors			222
Sub Total Production Employees			1,253
Underground Services
Safety
Stores			8
Mineral Reserves			35
Engineering Decline
Production Engineering			480
Engineering Services			83
Other Contractors			5
Others			204
Total Services Employees			815
Grand Total Mining Employees			2,068


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The underground mining operations uses an 11-hour shift system, operating a 2-shift cycle per day. The mining personnel operating on this shift cycle, comprise of workers performing development, stoping, and other additional tasks. These personnel are sub-divided and organised into support, breaking (also referred to as drill and blast), and cleaning crews. The supporting and breaking crew complete tasks during the day shift, while cleaning of ore and waste is done during the night shift.

13.9Commentary on Mining Method

The scattered mining method is appropriate for the reef characteristics and the current mining depth and provides a good level of flexibility which is suitable for the variability in the grade. It should be noted that the lack of separate ore and waste handling arrangements does compromise the delivered head grade because of dilution from foot wall waste development.

The mine design, planning and scheduling for the mine is developed using the DatamineTM and CADSmineTM geological software, respectively, considering the geotechnical model and related parameters.

The main geotechnical and geohydrological risks at Joel include the presence of gas, ground water and moderate seismicity, which are managed through the integrated monitoring systems, and incorporated into working mining models that inform daily mine planning decision-making.

The mining rates, machinery and equipment, ore transport, grade and dilution control, and labour resourcing and optimisation are driven by the mine schedule and improvement initiatives at Joel.


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14Processing and Recovery Methods

Section 229.601(b)(96) (14) (i-iv)

The Joel gold plant designed and commissioned during the construction of the mine was decommissioned in FY2009 and all ore mined at Joel is now processed at the Harmony One plant (Figure 3-1).

In order to manage to movement of ore from Joel to Harmony One plant and the subsequent metal accounting, the following procedures are adhered to:

•ore hoisted at Joel’s North Shaft is recorded by weightometer and belt sampling;

•ore is transported to the plant by truck, with each truck passes a weighbridge on departure;

•ore is received at a dedicated ore pad outside the Harmony One plant;

•it is re-handled and loaded into rail wagons for transport into the plant; and

•all hoppers pass a smart rail system in order to determine the weight and origin of each hopper before it is delivered into the plant.

Harmony One Plant is Harmony’s largest gold processing plant and processes underground ore from multiple shafts, as well as surface ore from nearby mine waste facilities. The plant was commissioned in 1986 and comprises three independent modules, each consisting of four feed silos, two ROM mills, two conventional thickeners, cyanide leach, carbon in pulp (“CIP”) adsorption, elution, zinc precipitation and smelting. The plant CIP process reflects the technology which was current at the time of construction.

14.1Mineral Processing Description

The processing flow sheet is presented in Figure 14-1.

Ore delivered to the plant is fed from the concrete silos via two mill feed conveyors through vibrating feeders directly into the ROM mills. Fully autogenous (“FAG”) milling is a process by which the entire ROM ore stream is fed directly into the mills and the grinding media is generated within the mill from suitably sized pieces of ROM ore itself. The average feed rate to the mills is 65tph. The milling circuit consists of two single stage ROM mills that are controlled on maximum power for optimum milling. Each ROM mill is 4.27m in diameter and 10m in length and grinds the ore to 75–90% passing minus 75 microns.

Milling is followed by a conventional gold leach process (cyanidation). The cyanidation process is one of the most utilised methods for the recovery of gold from auriferous ores. The use of cyanide leaching for gold recovery is based on gold’s properties, mainly its solubility (ability to dissolve) in cyanide solutions. Once the gold is dissolved into the cyanide solution it has a higher ability to adsorb (attach) onto activated carbon through the application of carbon in pulp (“CIP”) technology.


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Figure 14-1: Schematic Flow Diagram for Harmony One Gold Plant


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14.2Plant Throughput, Design, Equipment Characteristics and Specifications

The Harmony One Plant has a steady state design capacity of 390ktpm with its conventional CIP flowsheet. The design parameters and equipment specifications are presented in Table 14-1. The Harmony One plant is in good working condition and the equipment is also in good order with audits done on regular bases to check the operating performance of the plant.

Table 14-1: Key Design Parameters and Equipment Specifications


Process	Parameter	Unit	Value
Overall Plant	Recovery	%	95 -97
	Availability	%	99.99
Milling	Throughput ROM	t/hr	90 -100
Densification	Desired pH	pH	>7
	Desired density	g/cm3	1.46
Leaching	Residence time	hr	27
Acid Wash and Elution	Elution temperature	°C	130

14.3Energy, Water, Process Material and Personnel Requirements

14.3.1Energy

The Harmony One Plant utilises 11,478,202KWhr of power per month.

14.3.2Water

The Harmony One Plant requires 20,655kL per month

14.3.3Process Material

The reagents and their consumption rates are presented in Table 14-2.

Table 14-2: Consumables


Reagent	Unit	Value
Lime	tpm	338
Flocculant	tpm	0.642
Carbon	tpm	9.06
Cyanide	tpm	190.00

14.4Personnel

The personnel are presented in Table 14-3

Table 14-3: Number of Personnel


Employee			Value
Joel employees			290
Contractors			107
Capital contractors			179
Total			576

14.5Commentary on the Processing and Recovery Methods

The metallurgical process is a well-tested CIP technology which has been in operation at the Harmony One plant since 1986. Recoveries used in the business plan were based on historic performance. The methodology applied considered the historical metallurgical recovery over the preceding 18-month period (Figure 14-2) for the relevant ore sources at the plant.


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Figure 14-2: Graph of Joel Historical Recovery Factor (18 month actual)

•each operation delivers ore to the plant and is booked against each source;

•a delivery sheet reflects each shaft/operations figures; and

•from total ore processed, each shaft/operations equivalent proportion of gold is determined out of the monthly full gold produced.


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15Infrastructure

Section 229.601(b)(96) (15)

Joel has adequate access to the infrastructure required to meet the planned LOM production schedules.

15.1Surface Infrastructure

The surface infrastructure associated with the Joel is to some extent superfluous since the processing plant and its associated infrastructure, tailings storage facility and waste rock dump have been decommissioned in recent years (Figure 15-1). Google Earth images for each of the shafts and Harmony One Plant are presented in Figure 15-2, Figure 15-3 and Figure 15-4.

The Joel mining area is well developed in terms of access and mining-related infrastructure. Access to the shafts are via well-maintained roads. Adequately maintained gravel roads is used to access other areas of the mine such as the explosives magazines, sewage works, slimes dam and the evaporation ponds.

The infrastructural layout includes hoisting facilities; logistical support for core handling, sampling, and transporting; a mineral processing plant (decommissioned); ore and waste facilities; tailings and leaching infrastructure; roads; water and power supply; ventilation and refrigeration systems; stores and workshop support; electrical supply; offices; housing and security.

15.1.1Ore and Waste Rock Storage Facilities

All ore and waste rock is hoisted at North Shaft. The hoisted ore is discharged into the headgear bins, and in turn discharged onto the sampling conveyor belt then into the trucks which transport the ore by road 40km to a pad outside Bambanani Mine. From here the ore is re-handled and it trucked to the nearby Harmony One Plant.

The mine does not have separate reef and waste rock handling facilities and therefore are mixed during the transport process, which creates a dilution of the delivered head grade.

15.1.2Tailings Storage Facilities

Joel’s TSF became redundant when the processing plant was decommissioned in 2009. All rock mined and hoisted at Joel in transported to the Harmony One Plant.

Harmony One Plant pumps tailings as slurry to two TSFs namely FS2 and St Helena No.4, located to the south of the plant. All TSFs and are currently owned and operated by Harmony. The capacity remaining in the two TSFs is sufficient until 2024. Harmony is currently designing a new TSF to be located on the previous H1 Dam footprint which will have sufficient capacity for the remainder of the LOM.

The TSF sites have full engineering records including design, construction, operation, and maintenance plans.

15.1.3Rail

Joel does not utilise rail to transport ore or waste, and there is no functional rail network on the mine.

15.1.4Pipelines and Conveyors

Many of the pipelines and conveyors became redundant with the decommissioning of the processing plant. The only conveyor of importance and in use is the rock conveyor from the North Shaft headgear to the truck loading facility from where ore is transported by road to Harmony One plant.

15.2Underground Infrastructure

The underground infrastructure that supports Joel’s mining operations is presented in Figure 15-5.


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Figure 15-1: Joel Surface Layout and Infrastructure
Source: Google Earth Image Date May 2021


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Figure 15-2: Joel South Shaft Detailed Surface Infrastructure
Source: Google Earth Image Date May 2021


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Figure 15-3: Joel North Shaft Detailed Surface Infrastructure


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Figure 15-4: Harmony One Plant Detailed Surface Infrastructure
Source: Google Earth Image Date May 2021


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Figure 15-5: Schematic Mine Design Layout for Joel


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15.2.1Shaft Systems

The South Shaft complex has two shafts, namely 3 Shaft (men and material) and 4 Shaft (ventilation) (Figure 15-5). This shaft system was sunk beyond the reef sub-outcrop and is located on the southern extremity of the orebody. These two shafts go down to 1,050m below collar and cover four levels, namely 60 and 70 levels (which are mined-out trackless levels), 90 level, which is the main transfer level, and 95 level, which houses the pumping and loading facilities.

The North Shaft complex is a single-shaft system, sunk and lined to 1,471m below collar, but is not equipped to hoist people. Feasibility studies were conducted in 2005 to determine whether this shaft could assist in extending Joel’s life of mine by opening up 129 level. This shaft was upgraded in February 2006 to enable hoisting of ore through the north shaft barrel. Hoisting was halted in March 2007, owing to the deteriorating shaft infrastructure. The shaft has since been re-equipped to hoist ore and also acts as a second outlet for the mine.

A short one-compartment lift shaft from 110 level gives access to 121 level. The single drum winder at this level is used to transport men and material down to 121 level and for hopper hoisting of development and some stoping ore. The lift shaft has since been deepened to access 129 level. The lift shaft will service men and material only whereas the north shaft will be dedicated to hoisting ore.

The two shaft complexes (North and South) are connected via a triple decline system, spanning four levels and consisting of an approximately 1,600m belt decline (decommissioned), a chairlift decline to 110 level and two material declines in tandem down to 117 level. The decline levels are 98, 104, 110 and 117 with the last two connected to the North Shaft.

15.2.2Ventilation

Ventilation intake air for Joel flows down South Shaft to 90 level and then down to 98 level through the chairlift and material declines, with some of the air ventilating engineering installations at 90 level then going back to the return airway (“RAW”). The main air intake is at North Shaft with air flowing down the shaft to 110, 117, 121, 129 and 137 levels with the majority going into 129 level. 145 level is ventilated by means of a fan and exhaust column.

The main return air routes are through the worked-out areas to 60 and 70 Levels then through the haulages to the up-cast shaft. There is also air that flows from the North Shaft up the lift shaft and then through the 110 level chairlift decline to 98 level then into the RAW.

All main ventilation fans are located on surface where there are a total of three Airtec Davidson, 3,250mm diameter fans with 1,000kW motors installed, with any two of the fans operating at any one time. One diesel standby fan, capable of handling c.120kg/sec of air at 0,59kPa is installed. In the past this fan was never required as the natural ventilation pressure has been sufficient to cause a flow of 120kg/s.

15.2.3Pumping and Water Reticulation

Pumping from the bottom of North Shaft (145 level) is done with a 2 x 90kW flight pump to pump water up to 137 level, and then up to 129 level. Dirty water from mining operations on 137 level (Decline) is pumped to a skid dam situated in the 129 decline, and dirty water from mining operations at 129 level is also pumped to the same dam. From the 129 level dam, water is pumped to the 117 level dam and from there to the 90 level settlers via 104 level. There are standby pumps at the various level pump stations and the pumping capacity and set-up is adequate, provided the dams are cleaned regularly. The dam capacities are approximately 1,300m3 each.

Each of the settlers on 90 level can handle 90L/s of water (525m3 each). Two settlers are available but only one being at a time, and a third settler is currently in need of repair. No settling problems are currently being experienced. The clean overflow is transferred to two dams on 95 level via two 8 inch boreholes from where it is pumped to surface by means of multistage centrifugal pumps. Three pumps are installed of which only one is running at a time. Each of the pumps can deliver 270L/s and with a peak and average water usage of 180L/s and 90L/s respectively, the installed capacity is more than adequate. The clear water dam capacity on 95 level is 3.2 million litres (2 x 1.6ML) which is slightly inadequate. Two 450mm pumping columns are installed, one in each of the two main shafts; the 3 shaft column is currently in use.

Underflow from the settlers is collected in an 80m3 mud storage dam on 95 Level (four hours storage capacity). Two Scamont PA8 mud pumps are installed, of which only one is required to run 6-8 hours per day. The mud is pumped to a receiving tank on surface, from where it is pumped to the surface settler. Water


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from this dam is sent back to the TK01 storage tank and dry mud is mixed with ore from underground before is transported to Harmony One Plant.

Sedibeng Water supplies potable water at an average consumption of 80MLpm. Sewage and wastewater is treated in a company-owned treatment plant operated by contractors.

15.3Power and Electrical

The feed to the mine has capacity to supply of 29MW, however currently only 21MW is utilised. There are no identified risks related to continued supply of power which is supplied by Eskom. Joel’s power supply is designed to satisfy the planned LOM production and service requirements with a surplus. Main power supply is managed and distributed via electrical sub-stations located adjacent to the respective shafts (Figure 15-2 and Figure 15-3).

15.4Water Usage

Bulk water supply for the mine’s operations provides a storage capacity of 70ML which is sufficient for 2 days consumption. Potable water usage is 70,000L/day.

15.5Logistics and Supply

The procurement of supplies and equipment are handled centrally, via Harmony, and then delivered to Joel.

Harmony operates its own rail system which connects the shafts, reduction works, shaft stores, explosives magazine and the mine workshops. This system is used to transport ore between shafts and plant and to transport consumables between the surface stores to the respective locations, as required. It is also connected to the regional railway system.

15.6Commentary on Infrastructure

The operational infrastructure including road, offices, security services, water and power supply is adequate. Operations are powered by electricity from Eskom. Overall, Joel's surface and underground infrastructure as well as the power and water services are designed to fully meet the planned LOM plan and service capacity requirements.

Joel was originally designed to operate at 120,000tpm, but is now a mature operation in which has been reduced to the current average of c.40,000tpm for the LOM. With the decommissioning of much of the mine’s infrastructure, particularly the processing plant, it still has remaining infrastructure that will adequately support the operation for the remainder of its planned life.


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16Market Studies

Section 229.601(b)(96) (16) (i-ii)

Gold is traded in a variety of markets/exchanges both in physical form through over the counter (“OTC”) markets, bullion banks and metal exchanges etc., and through passive investments such as exchange traded funds (“ETF’s”), which are based on gold prices and units representing physical gold which may be in paper or dematerialised form. Demand is driven by the jewellery market, bar and coin, use in technology, ETF’s and other financial products, and by central banks. An overview of the gold market is given in the following sections based mainly on data from the World Gold Council and GoldHub websites.

16.1Market Overview

16.2Global Production and Supply

Gold production and supply is sourced from existing mining operations, new mines and recycling.

16.2.1New Mine Production

16.2.2Recycling

16.3Global Consumption and Demand

16.3.1Jewellery


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16.3.2Investment

16.3.3Currency

16.4Gold Price

16.4.1Historical Gold Price

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

16.4.2Forecast Gold Price

The minimum and maximum consensus gold price range for the year 2021 Q4 to year 2025 is presented in Figure 16 2. The long-term gold prices are considered from year 2025 onwards. Forecasts as advised from various financial institutions show that gold is expected to trade in a range of USD1,652/oz - USD1,728/oz, for the period 2022 to 2025 with a long-term outlook of USD1,521/oz.

The gold price forecast of USD1,546/oz is conservative if corroborated against a long-term broker consensus gold price outlook (Figure 16 2).

16.4.3Harmony Group Gold Hedging Policy

Harmony has a hedging policy, which is managed and executed at Group treasury level on-behalf of its operating entities. The key features of the hedging programme are as follows:

•the policy provides for hedging (or forward selling) up to a maximum of 20% of expected gold production for a rolling 24-month period;

•the policy has no minimum quantity that should be hedged, and if an attractive margin above cost cannot be achieved (i.e., in a low gold price environment) then no hedges are entered into;

•Harmony enters into ZAR-denominated gold hedges for its South African operations (for the non-South African assets it enters into USD-denominated hedges);


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Figure 16-1: Graph of Annual Gold Price History – ZAR/kg

Figure 16-2: Graph of Consensus View of Forecast Gold Price


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•Joel does not enter into hedges in its own name but delivers bullion to Rand Refinery for refining on behalf of Harmony. Rand Refinery is one of the world’s largest single-site precious metals refining and smelting complex in the world. Rand Refinery refine all of Harmony’s gold to at least 99.5% purity, and acting as agent, sells the gold on the daily spot London fixing price and make payment to the Harmony two days later;

•Joel does its mine planning and financial forecasts based on the estimated future gold price provided by the Group treasury, but its year-end actual financial results reflect the received gold price inclusive of the benefit of the hedging programme. Therefore, in theory, Joel receives a hedged gold price for a maximum of 20% of its gold sales with the balance attracting the spot price.

16.5Commentary on Market Studies

16.6Material Contracts

Harmony has contractual vendor agreements with various service providers and suppliers. A list of the most significant of these contracts, currently in place to support mining operations at Joel, is presented in Table 16-1. All of the listed contracts are currently valid and in good standing. Terms, rates and charges of contracts are considered consistent with industry norms. Contract management processes are in place and resourced so that contracts re-tendered and/or renewed as they approach expiry.

Table 16-1: Material Contracts


Vendor Name			Nature of Service / Supply
Khobela Construction & Projects			Ore trucking - Joel to Harmony One plant
Mega Bus			Transport of employees
AEL Mining Services Ltd			Explosives and Accessories
Sandvik Mining & Construction			Drill rods and bits
Schauenburg (Pty) Ltd			Lease of gas detecting equipment


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17Environmental Studies, Permitting and Plans, Negotiations, or Agreements w77ith Local Individuals or Groups start

Section 229.601(b)(96) (17) (i-vii)

The South African Government has an extensive legal framework within which mining, environmental and social aspects of the industry are managed. Harmony and Joel are primarily regulated and managed by certain principal Acts (Section 17.3) as well as corporate policies, management systems and certain industry-wide guidelines, including:

•Energy Efficiency and Climate Change Policy;

•Environmental Policy;

•Harmony Water Management Strategy;

•Biodiversity and Rehabilitation Position Statement;

•Socio-Economic Transformation Policy; and

•Corporate Social Responsibility Policy.

17.1Results of Environmental Studies

Joel has prepared multiple environmental impact assessments (“EIA”) for regulatory approval, which under the current legal framework, require stakeholder engagement. The most recent EIA was undertaken 2009 and the results of the studies were incorporated into the mine design and planning process. The mitigation measures from all previous EIA are consolidated in the approved Environmental Management Programme report (“EMPR”) dated 2009.

A detailed environmental impact and aspects register has been developed to identify all potential environmental impact of the operations. The main impacts were rated, and mitigation measures were proposed to minimise their impact on environment.

Harmony is committed to maintaining good relationships with regulatory authorities, industries, communities, business partners and surrounding stakeholders.

17.2Waste and Tailings Disposal, Monitoring & Water Management

Tailings comprises of crushed rock and process water emitted from the gold elution process in the form of slurry once gold has been extracted. As tailings contain impurities and pollutants, they are placed in TSF engineered to contain them, in line with Harmony's tailings management programme and the Global Industry Standard on Tailings Management. However, currently the Joel Plant is under care and maintenance and the associated TSF has a dormant status.

Harmony's overall tailings management strategy is to ensure robust, meticulous engineering and dam design, along with a continual focus on management of risks through layered assurance and oversight.


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The focus areas include, but are not limited to:

•freeboard control;

•water management;

•maintaining stability and the safety factor as advised by the engineer of record;

•erosion controls; and

•monitoring and control measures implemented to ensure continued compliance (including regular inspections, audits and meetings on varying intervals with subsequent actions, minutes and reports).

As part of its mining, environmental and water approvals and licences, Harmony is required to implement monitoring programmes and plans to establish the operations impact on the environment. The compliance limits for the monitoring variable are included in the applicable EMPR(s), Water Permits and other environmental licences. The environmental monitoring implemented at Joel includes:

•ground and surface water monitoring

•biodiversity monitoring;

•waste classification and quantification;

•integrated waste and water management plan updates;

•water balance reviews;

•licence and authorisation compliance reviews; and

•air quality (i.e., noise and dust) and greenhouse gas emissions monitoring.

Joel has implemented Harmony’s corporate water management strategy which applies to water in the entire mining lifecycle, including prospecting, project design and commissioning, operation and closure. This strategy has led to several positive outcomes with long-term target set to reduce the amount of water used for primary activities. The core strategy is to treat and recirculate groundwater through a series of underground dams at different levels. Excess fissure water from underground is pumped to surface and temporarily stored in an above ground water tank. Excess fissure water is then pumped back underground for reuse and/or pumped to the evaporation dams.

A surface and groundwater water monitoring program and network are established to ensure compliance with certain regulatory requirements and industry standards. Ground and surface water monitoring is conducted on regular intervals from strategically placed boreholes and surface water streams and dams around the operation. The quality of the drinking water is monitored daily to ensure compliance to the South African national drinking water quality standard (SANS 241:2015).

17.3Permitting and Licences

In respect of environment, the following national Acts and the regulations promulgated thereunder provide the regulatory framework for mine permitting and licencing in South Africa:

•Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”);

•National Environmental Management Act, 1998 (“NEMA”);

•National Environmental Management: Waste Act, 2008 (“NEM:WA”);

•National Environmental Management: Air Quality Act, 2004 (“NEM:AQA”); and

•National Water Act, 1998 (“NWA”).


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A summary of the status of all environmental permits and licences issued at the effective date related to Joel Mine is presented in Table 17-1.

Table 17-1: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

EMPR

FS 30/5/1/2/3/2/1(14) EM

DMRE

16-Apr-2010

LOM

Water Permit

1459B (B33/2/340/116)

DWS

25-May-1991

LOM

Water Permit

1460B (B33/2/340/116)

DWS

15-Mar-1991

LOM

Waste Disposal Permit

1339N (B33/2/340/116/P35)

DWS

16-Sep-1991

LOM

Water Permit

DWS

27-May-1991

LOM

Sewage Treatment Permit

QC404.00.XRO1

DWS

20-Aug-1986

LOM

Water Permit

1339N (B33/2/340/116)

DWS

15-Mar-1991

LOM

Note: LOM - Life of mine, DWS - Department of Water and Sanitation

All relevant mining, environmental and water-use permits are in place that cover the environmental, archaeological, and hydrological components of Joel Mine. All permits are audited regularly for compliance and no material risks to the operations have been identified.

An application will be submitted to the regulator should there be a need to apply for an amendment to an existing or for a new environmental permit alignment with operations LOM requirements. There are no pending applications for any environmental permits and licences at the effective date of this TRS.

17.4Local Stakeholder Plans and Agreements

•contribute to areas that will have the most meaningful socioeconomic impact on communities, namely infrastructure, education and skills development, job creation and entrepreneurial development;

•enhance broad-based local and community economic empowerment and enterprise development initiatives;

•facilitate socio-economic development in local communities by means of social and labour plan(s) (“SLP”) and corporate social responsibility programmes;

•support arts, culture, and sports and recreation; and

•build relationships based on trust within host communities.

The aim of the SLP is to promote employment and advance the social and economic welfare of all South Africans. Joel’s SLP was approved in June 2018 and is valid for a period of five years (i.e., until June 2022) in which the Company has committed to spend approximately ZAR36m this period.

The SLP has made the following main commitments related to socio-economic development within surrounding local communities:

•infrastructure development – roads, electricity and water; community training and recreation facilities; and

•youth entrepreneurial and business development support.


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17.5Mine Closure Plans

Harmony appointed Digby Wells Environment (“Digby Wells”), independent environmental consultants, to review and update the closure cost. The mine closure assessment was done in terms of regulation 53 and 54 of the MPRDA and in accordance with the requirements of NEMA. The closure cost as at 30 June 2022, was calculated at ZAR96m, including a 10% contingency allowance.

17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups

Most of the required environmental authorisations are in place and only require amendments to be made to reflect the planned infrastructure at Joel.

17.7Local Procurement and Hiring

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Periodic inspections are conducted by the DMRE to verify compliance with applicable environmental laws, regulations, permits and standards. In addition, Joel has implemented an EMS in line with the ISO 14001 standard. The EMS is audited on an annual basis by a third party and includes the needs and expectations of interested parties.

As part of Harmony, Joel conducts its operation based on policies and systems that are aligned to its corporate sustainable development framework. Although Harmony is not a signatory to the International Council on Mining and Metals or the UN Global Compact, these form the guiding principles of the framework. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (“GRI”).

Most of the required environmental authorisations are in place and only require amendments to be made to reflect the planned infrastructure at Joel. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.


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18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Economic parameters for the Harmony Group, including capital and operating costs, are determined, and signed off by the CODM, before distribution to the business units, including Joel. The capital and operating costs are reported in ZAR terms and on a real basis. Rounding of figures may result in minor computational discrepancies.

18.1Capital Costs

The estimated capital costs for the on-going LOM at Joel are reported according to costs associated with major equipment outside the main operating sections which is termed abnormal expenditure (“AE”), shaft projects related to ongoing capital development (“OCD”) and costs related to Mining Charter Compliance (“MCC”) such as LED’s and housing projects as presented in Table 18-1. These estimated capital costs are carried forward and modelled in the Joel cash flow.

Costs associated with the MCC are determined because of Joel’s SLP requirements and modelled as such. These costs are extracted from the SLP model.

18.2Operating Costs

A summary of the direct and indirect operating costs for Joel are presented in Table 18-2. Operating costs are based on historic performance while applying any changes expected within the new financial year (such as electricity requirements, increased/decreased labour) and are used as an input into the Joel LOM forecast cash flow model.

18.3Comment on Capital and Operating Costs

The capital and operating cost estimates for Joel are based on actual data, as well as budget forecasts. Therefore, the forecasted costs are reliable, and at minimum meet the confidence levels of a Pre-Feasibility Study. This approach of estimating capital and operating costs is consistent with industry practice. A record of the forecast and budget costs is maintained by the operation, allowing for an assessment of the alignment of the forecast and actual costs.

Table 18-1: Summary of Capital Cost Estimate for Joel


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2030)
AE			90,612
Shaft Projects			117,070
Major Projects			31,000
OCD			487,348
Total (excluding MCC)			726,030
MCC (LEDs/housing etc.)			56,607
Total (including MCC)			782,637


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Table 18-2: Summary of Operating Cost Estimate for Joel


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2030)
Wages - Payroll 1			2,107,190
Wages - Payroll 2			3,205,091
Stores and Materials			1,711,715
Electric Power and Water			1,532,119
Outside Contractors			493,814
Other			358,404
Direct Costs			9,408,333
Transport Allocation			310,625
Refining Charge			27,308
Assay Costs			51,165
Hostel Costs			-24,971
Plant Treatment Cost			551,668
Rail Transport			74,285
Re-allocated Costs			990,080
Mine Overheads Re-allocated			502,495
Total Cash Costs			10,900,908


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19Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

19.1Key Economic Assumptions and Parameters

The CODM forms, reviews, signs-off and distributes economic assumptions to its various business units. On an annual basis, during the period October to November, long-term commodity prices and exchange rates forecasts’, are received from various financial institutions. In addition, a specialist in Economics from a reputable economics company based in South Africa, provides expert views on the global markets, forward looking commodity prices, exchange rates, consumer price index, production price index, electricity cost and consumable increases. All factors are analysed, cognisance is taken of the requirements of the NYSE and JSE markets, and a proposal is presented to the CODM for recommendation and approval. These assumptions are then applied at Joel, along with specific operational considerations.

19.1.1Metallurgical Recoveries

The metallurgical recoveries used in the cash flow are provided in Table 12-1.

19.1.2Gold Price

The proposed gold price (USD1,546/oz) is the price that is used by Harmony for the Joel annual planning cycle and forms the basis for the gold price assumptions used in the Joel cash flow. The reader is referred to Figure 16-2 for the consensus forecast gold price.

The conversions used in the calculation of the various gold prices is presented in Table 19-1.

Table 19-1: Conversions Used in Gold Price Calculations


Economic Factors	Gold Price (USD/oz)	Conversion Factor (oz/kg)	Exchange Rate (ZAR:USD)	Gold Price (ZAR/kg)
2022 Mineral Resource	1,723	32.15	15.35	850,191
2022 Mineral Reserve	1,546	32.15	15.35	763,000
2023 forecasted gold price	1,546	32.15	15.35	763,000
Notes: 1. Forecasted gold price as used in the Joel cash flow.

19.1.3Exchange Rate

In addition, the CODM has reviewed the ZAR:USD exchange rate performance over the past three years, for the period July 2019 - June 2022 (Table 19-2). The proposed spot exchange rate of 15.35 ZAR:USD is the exchange rate that is used by Harmony for the Joel annual planning cycle and forms the basis for the ZAR:USD exchange rate assumptions used in the Joel cash flow.

Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)


Period			Average Exchange Rate (ZAR:USD)
July 2019 to June 2020			15.68
July 2020 to June 2021			15.41
July 2021 to June 2022			14.75
3-Year Ave. (not weighted)			15.28


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Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast

19.1.4Royalties

Royalty is an expense paid to the government of South Africa and is accounted for in the Joel cash flow models. In terms of the mining ring-fencing application, each ring-fenced mine is treated separately, and deductions can normally only be utilised against mining income generated from the relevant ring-fenced mine.

19.1.5Capital Expenditure

At Harmony, capital is allocated preferentially to the mines with a longer life. Joel is one of the smaller operations and currently has a medium-term LOM model, and therefore has lesser amounts dedicated to capital expenditure. Detailed capital costs are presented for Joel in Table 18-1.

19.1.6Operating Expenditure

The operating costs are determined as a function of the cash working costs of the mining and mineral processing activities, and ongoing capital development for mining. Total costs are a function of the operating costs, capital costs, and royalties. Detailed operating costs can be found for Joel in Table 18-2.

19.1.7Working Capital

Working capital is calculated at a Harmony Group level and not at an operational level.

19.1.8Taxes


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19.1.9Closure Cost and Salvage Value

The closure cost estimates are those provided in Section 17.4. No account has been taken of any potential salvage values.

19.1.10Summary

The key assumptions used in the cash flow are summarised for Joel in Table 19-3.

Table 19-3: Key Economic Assumptions and Parameters for Joel Cash Flow


Parameter	Unit	Value
Production Rate (milled)	ktpa	467
Gold Recovery	%	94.89
Royalty	% of Revenue	2.00
Tax Rate	%	Formula
Gold Price	ZAR/kg	763,000
Exchange Rate	USD:ZAR	Variable
Discount Rate	%	9.00

19.2Economic Analysis

Harmony's respective business units and its associated operating sites consider the economic assumptions discussed in Section 19.1 during their respective planning and analysis processes. The LOM financial model for Joel is presented in Table 19-4. Note that the cash flow includes the actuals for Q1 FY2022-23.

The discounted cash flow model is used to calculate the Net Present Value (“NPV”) of the investments. The NPV for the metal price, for Joel is approximately ZAR954m at a discount rate of 9%.


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Table 19-4: Joel Cash Flow


Item	Units	Total LOM	FY2023	FY2024	FY2025	FY2026	FY2027	FY2028	FY2029	FY2030
Mining advance	m2	779,541	91,914	96,994	96,853	102,730	99,674	99,844	99,578	91,955
OCD	m	14,081	3,632	3,565	3,334	2,221	1,233	97	0	0
Milled Tons	t ('000)	3,735	494	511	507	495	459	452	432	386
Yield (Recovered Grade)	g/t	4.68	4.15	4.63	4.72	4.40	4.72	4.78	5.23	4.98
Gold Recovered	kg	17,491	2,052	2,365	2,393	2,179	2,164	2,161	2,258	1,920
Revenue	ZAR'000	13,345,401	1,565,486	1,804,167	1,826,210	1,662,305	1,650,974	1,648,510	1,722,741	1,465,005
Total Working Costs (including OCD)	ZAR'000	11,586,649	1,495,579	1,550,329	1,563,458	1,490,614	1,423,694	1,400,910	1,390,505	1,271,561
Total Capital (excluding MCC)	ZAR'000	238,682	67,082	36,923	32,980	28,304	26,194	24,900	22,300	0
MCC	ZAR'000	56,607	9,492	7,383	7,383	7,080	7,080	7,080	7,050	4,058
Total Costs (including capital and royalty)	ZAR'000	11,881,938	1,572,152	1,594,635	1,603,821	1,525,998	1,456,968	1,432,890	1,419,855	1,275,619
Operating Profit (after all capital and royalty)	ZAR'000	1,463,463	-6,666	209,532	222,389	136,308	194,007	215,621	302,887	189,386
NPV - (low discount rate - 9%)	@9%	953,927
NPV - (medium discount rate - 12%)	@12%	838,829
NPV - (high discount rate - 15%)	@15%	742,250


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The NPV is calculated on a cash flow that accounts for factors such as:

•mining and ore processing working costs;

•royalty payments;

•capital costs, including costs allocated to ongoing development;

•any significant project work considered as major projects; and

•costs deemed as abnormal expenditure.

19.3Sensitivity Analysis

The economic assumptions, cash flow breakdown and economic analysis contribute to the basis for the sensitivity analysis. The sensitivities are calculated and analysed, as shown in Table 19-5, Table 19-6 and Table 19-7. The sensitivity analysis is completed for variations in gold price (ZAR/kg), working costs (ZAR) and variations in production; and a combined analysis considering variations in commodity price, total operating costs, and changes in production.

Harmony has reviewed its exposure in terms of South Africa’s political instability, the currency exchange rate, and the gold price, on its financial assets and financial liabilities, and has determined the sensitivities for a ±15% variance. Management considers this range to be a reasonable change given the volatility in the market.

Capital expenditure in Joel is approximately 6.5% of total costs over the LOM and not expected to have any significant impact on the NPV and therefore not included in a sensitivity analysis, but the profit/loss is after all working and capital costs. The base case in the analysis below is the economic results emanating from the LOM plan.

Table 19-5: Gold Price Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
+10%	17,491	839,300	14,679,941	10,900,908	3,779,033	2,630,036
+5%	17,491	801,150	14,012,671	10,900,908	3,111,763	2,166,228
LOM plan	17,491	763,000	13,345,401	10,900,908	2,444,493	1,702,420
-5%	17,491	726,667	12,709,905	10,900,908	1,808,997	1,260,703
-10%	17,491	693,636	12,132,182	10,900,908	1,231,274	859,129

Table 19-6: Total Operating Cost Sensitivity


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
+10%	17,491	763,000	13,345,401	11,990,999	1,354,402	948,237
+5%	17,491	763,000	13,345,401	11,445,953	1,899,447	1,325,330
LOM plan	17,491	763,000	13,345,401	10,900,908	2,444,493	1,702,420
-5%	17,491	763,000	13,345,401	10,381,817	2,963,583	2,061,552
-10%	17,491	763,000	13,345,401	9,909,916	3,435,484	2,388,040

The sensitivity analysis shown in Table 19-5 and Table 19-6 is based on a change in a single assumption while holding all other assumptions constant. The insights that can be provided by this sensitivity analysis is that Joel is most sensitive to changes in the gold price (ZAR/kg).


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In this way the general risks, with the aid of the sensitivity table (Table 19-7) are adequately covered. The sensitivity analysis considering the three variations of gold price (ZAR/kg), operating costs (ZAR) and variation in production (kg gold) show that the lowering of working costs, improvement in productivity and the benefits of a higher gold price can have positive impacts for Joel.

Table 19-7: Gold Price, Operating Costs, and Production Variation Sensitivity


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
+10%	19,240	839,300	16,147,935	11,990,999	4,156,936	2,893,192
+5%	18,365	801,150	14,713,304	11,445,953	3,267,351	2,272,465
LOM plan	17,491	763,000	13,345,401	10,900,908	2,444,493	1,702,420
-5%	16,658	726,667	12,104,672	10,381,817	1,722,855	1,201,550
-10%	15,901	693,636	11,029,257	9,909,916	1,119,340	780,758


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20Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

Beatrix Mine is the only contiguous operation and lies immediately west of Joel Mine (Figure 3-1). It is a large, shallow to intermediate level gold mining and processing operation, owned and operated by Sibanye-Stillwater Limited. Although Beatrix and Joel have exchanged blocks of ground in the past which were more accessible from each other’s respective infrastructure, there are no physical connections between the two mines. Beatrix operates on a similar mining method and layout to Joel, and also primarily extracts the Beatrix Reef.


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21Other Relevant Data and Information

Section 229.601(b)(96) (21)

Other relevant information includes public disclosure reports on Joel’s operational, financial and environmental performance are available on the Company’s corporate website. The following reports are relevant to this TRS:

•Integrated annual report 2022;

•ESG report 2022;

•Financial report 2022;

•Report to shareholders 2022;

•Operational report 2022;

•TCFD report; and


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22Interpretation and Conclusions

Section 229.601(b)(96) (22)

Joel is a well-established mine and has been in operation since the late 1980s. Harmony has no known risks to conduct mining activities over it permitted mining rights’ areas. In addition, no known risks are posed over surface access and activities, regarding mining related activities.

Joel’s regional geological setting, mineralisation and deposit is well understood. The geology is supported by historical geophysical surveys, surface diamond core drilling and underground channel (chip) sampling and mapping. The bulk of the mineralisation is specifically within Beatrix Reef of the Kimberly (Aandenk) Formation.

The complex nature of the reef has resulted in a highly irregular distribution of gold throughout the mining area. There are broad low and high-grade zones over hundreds of metres, which are considered likely to be repeated within the reef environment beyond the limits of the current development. The geological anomalies are identified, defined, and managed by the Joel Geology Department. Recommended drilling of the 121 “Klippan” area, drilling towards 145 level as well as drilling on the east side of the shaft at 137 level will prove the Beatrix Reef extensions below the current infrastructure and confirm the surface holes values and channel width on the east side in 137 level.

The holistic understanding of the regional geology, lithological and structural controls of the mineralisation at Joel is sufficient to support the estimation of Mineral Resources.

The combined Measured and Indicated Mineral Resource, exclusive of Mineral Reserves, as at 30 June 2022 is 4.44Mt at 7.76g/t Au, containing 1.11Moz of gold, and the Inferred Mineral Resource contains is 7.04Mt at 5.11g/t Au, containing 1.16Moz of gold.

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and operational mine planning processes. Mine planning utilises and takes into consideration actual historical technical parameters. In addition, conversion of the Mineral Resources to Mineral Reserves considers Modifying Factors, such as cut-off grade, the MCF, the stoping width, the mining width and the plant recovery factor. The Mineral Reserve estimate as at 30 June 2022 is 3.74Mt at a grade of 4.97g/t Au of milled ore containing 597koz of gold.

Joel is forecast to operate profitably, and the LOM plan based on the Mineral Reserve estimate indicates positive cash flows, other than the current FY. The current FY2022/23 cash flow indicates a negative operating profit due to major capital expenditure for the refrigeration plant. However, it indicates a positive cash flow over the LOM as the grade and tonnages mined increase from the FY2023-24 onwards.

The mine plan is supported by the Mineral Resource and Mineral Reserve estimates and is considered achievable under the set of assumptions and parameters used. There are no obvious material risks that could have significant effect on the Mineral Reserves.

The Mineral Reserves are extracted using a well-proven scattered mining, labour-intensive narrow reef stoping method, which is ideal for the complex geology and high variability of the Beatrix Reef in the Joel mining right area. Ore is hoisted together with waste rock and dilutionary effect of this practice does require strict management of the mining grade to maintain profitability.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

Ore mined at Joel, which was previously treated at the now decommissioned Joel processing plant, is now transported by road to the Harmony One Plant 40km away. This is Harmony’s largest processing facility and was commissioned in 1986, based on the latest CIP technology at the time, and test work as shown the processing method is considered well established for mineralisation at Joel.

Joel is accessed via national and provincial road networks and the mine’s regional and local infrastructure is capable of fully supporting the mining and other surface related mining activities. The scale of Joel’s operation for the remaining LOM plan is considerably smaller than the operation for which the infrastructure was originally designed to support. This provides a comfortable buffer from an infrastructure perspective.

Harmony and Joel are exposed to market risks such as exchange rate and gold price fluctuations which are partially offset by the Harmony Group hedging policy. The hedging programme considers factors affecting the global gold market and these, along with macro-economic conditions, are used to determine planning and forecasting inputs at group level for all of Harmony’s operating business units. Other non-gold related risks are addressed to some extent by Joel when entering into vendor agreements for the provisions of supplies and services, which are done on a competitive basis with customary price adjustment, renewal, and termination clauses.

To successfully operate a mining operation in South Africa the state requires compliance with applicable environmental laws, regulations, permits and standards. Joel adheres to the relevant compliance and regulatory standards. As part of the Harmony group, Joel conducts its operations based on policies and systems that are aligned to its corporate sustainable development framework. This is guided by the principles of the framework from the International Council on Mining and Metals or the United Nations Global Compact. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the GRI. Further to this, Harmony discloses environmental information on the CDP for both climate change and water.

Harmony has a good understanding of the environmental and social aspects through baseline and specialist studies previously conducted. Risk management and mitigation measures were adequately addressed in the environmental management plans. All the required environmental authorisations are in place, and only require amendments to be made to reflect any relevant changes, none of which are pending at the effective date of this report. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.

The economics of Joel are based on the LOM discounted cash flow model which indicate a NPV of ZAR954m at a discount rate of 9%, at the planned gold price of ZAR763,000/kg. The NPV is calculated on cash flows that consider factors such as: capital and operating costs; working capital, royalties and taxes. The capital and operating cost estimates for Joel are based on historical data, as well as budget forecasts. This estimation technique allows for the forecast and actual costs to be reasonably well aligned and realistic.

Royalties and taxes are paid to the South African government and accounted for in the Joel cash flow and NPV analysis. There are also specific tax relief benefits that apply to gold mining companies, where 5% of total revenue is exempt from taxation, amongst other benefits. In addition, in response to challenges faced by companies during the COVID-19 pandemic, the government have implemented various stimulus packages to provide some tax relief to companies.

The economics of Joel are tested for its sensitivity to commodity price (ZAR/kg), operating costs (ZAR) gold production (kg). The insights provided by the sensitivity analysis is that Joel Mine is most sensitive to changes in the ZAR gold price, which is particularly pertinent in light the variability of the head grade and the marginal nature of the operation.

The TRS provides sufficient information as required and there is no other relevant data and information. The TRS was prepared by a team of experienced professionals. The TRS provides a summary of the material scientific and technical information concerning the mineral exploration, Mineral Resources, Mineral Reserves, and associated production activities of the mineral asset, including references to the valuation for Joel. Each QP was responsible for specific sections of this TRS which they have personally supervised and reviewed. This TRS contains the expression of the QP opinions, based on the information available at the time of preparation.


Effective Date: 30 June 2022 93


			Technical Report Summary for Joel Mine, Free State Province, South Africa

23Recommendations

Section 229.601(b)(96) (23)


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

24References

Section 229.601(b)(96) (24)

Climate-Data.org. Accessed November 2021.

Coakley, G.J., 1998. The Mineral Industry of South Africa.

https://www.gold.org/goldhub/data/gold-prices. Accessed 22 July 2022.

Mineral Corporation. Audit of Harmony Resources and Reserves. Report No. C-HGC-HAR-1910/1179.

Robb, L.J., and Meyer, F., 1995. The Witwatersrand Basin, South Africa: Geological framework and mineralisation processes. Ore Geology Reviews, 10(2), 67-94.

Robb, L.J., Robb, V.M., 1998. Gold in the Witwatersrand Basin. In: Wilson, M.G.C., Anhaeusser, C.R. (Eds.), The Mineral Resources of South Africa. Handbook. Council for Geoscience, 294–349.

Tucker, R.F., Viljoen, R.P., and Viljoen, M.J., 2016. A Review of the Witwatersrand Basin The World’s Greatest Goldfield, accessed from https:// www.researchgate.net /publication /305924249 A Review of the Witwatersrand Basin - The_World's_Greatest_Goldfield.

Kleynhans, E., Harmony Internal Mineralogical Reports 19/699 and 19/648, 2020.

South African Revenue Services. (2021, July 29). South African Revenue Services. Retrieved from Tax Relief Measures: https://www.sars.gov.za/media/tax-relief-measures/

S&P Capital IQ Pro. Accessed November 2021.

World Gold Council. (2022, July 18). World Gold Council, Gold Hub, Gold mine production: Gold Production by Country | Gold Production | Goldhub.


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			Technical Report Summary for Joel Mine, Free State Province, South Africa

25Reliance on Information Provided by the Registrant

Section 229.601(b)(96) (25)

Table 25-1: Other Specialists


Name	Specialist	Responsibility	Association / Company
S. Nkaletshane	Sectional Geologist	Exploration	Joel
J. Powell	Geostastician	Mineral Resource Estimation	Harmony Central
S. Sebotsa	HOD Survey	Mine Design	Joel
E. Matodi	Chief Safety Officer	Mining Method	Joel
T Itholeng	Rock Engineering Manager	Mining Method	Joel
M. Phahlamohlaka	Mining Manager	Mining Method	Joel
M. Nene	Engineer	Infrastructure	Joel
L Evans	Human Resource Leader	Mining Personnel	Joel


Effective Date: 30 June 2022 96

HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Free State Surface Operations

Free State Province, South Africa

Effective Date: 30 June 2022

Final Report Date: 15 July 2022


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.


Effective Date: 30 June 2022 i


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Signature Page

/s/ Bareng Joseph Selebogo

___________________________________

Mr Bareng Joseph Selebogo

NHD Mineral Resource Management

SAGC (No. MS 0151), MSCC (No. 1900)

Ore Reserve Manager

Harmony Gold Mining Company Limited

Effective Date: 30 June 2022

Final Report Date: 15 July 2022


Effective Date: 30 June 2022 i


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

List of Contents


1	Executive Summary			1
2	Introduction			8
3	Property Description and Location			9
	3.1	Property Description and Location		9
		3.1.1	Phoenix Project	9
		3.1.2	Central Plant Reclamation	9
		3.1.3	Free State Tailings	9
	3.2	Mineral Tenure		14
	3.3	Property Permitting Requirements		14
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			16
	4.1	Accessibility		16
	4.2	Physiology and Climate		16
	4.3	Local Resources and Infrastructure		16
5	History			17
	5.1	Historical Ownership and Development		17
		5.1.1	Phoenix Project	17
		5.1.2	Central Plant Reclamation	17
	5.2	Historical Exploration		17
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		18
	5.4	Past Production		20
6	Geological Setting, Mineralisation and Deposit			22
	6.1	Regional Geology		22
	6.2	Local Geology		22
	6.3	Property Geology		24
		6.3.1	TSF	24
		6.3.2	WRDs	25
	6.4	Mineralisation		25
	6.5	Deposit Type		25
	6.6	Commentary on Geological Setting, Mineralisation and Deposit		25
7	Exploration			26
	7.1	Mapping Surveys		26
	7.2	Topographic Surveys		26
	7.3	TSF Surface Drilling Campaigns, Procedures and Results		26
		7.3.1	Drilling Methods	26
		7.3.2	Collar and Downhole Surveys	28
		7.3.3	Logging Procedure	28
		7.3.4	Drilling Results	28
		7.3.5	Sample Recovery	28
		7.3.6	Sample Length and True Thickness	28
	7.4	Hydrogeology		28
	7.5	Geotechnical Data		29
	7.6	Commentary on Exploration		29
8	Sample Preparation, Analyses and Security			30
	8.1	TSFs		30
		8.1.1	Sampling Method and Approach	30
		8.1.2	Density Determination	30
		8.1.3	Sample Security	30
		8.1.4	Sample Storage	30
		8.1.5	Laboratories Used	30


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


		8.1.6	Laboratory Sample Preparation Procedures	30
		8.1.7	Assaying and Analytical Procedures	31
		8.1.8	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)	32
		8.1.9	Sampling and Assay QAQC Results	33
	8.2	WRDs		34
		8.2.1	Sampling Method and Approach	34
		8.2.2	Density Determination	34
		8.2.3	Sample Security	35
		8.2.4	Sample Storage	35
		8.2.5	Laboratories Used	35
		8.2.6	Laboratory Sample Preparation Procedures	35
		8.2.7	Assaying and Analytical Procedures	35
		8.2.8	Sampling and Assay QC Procedures and QA and Results	35
	8.3	Commentary on Sample Preparation, Analyses and Security		36
9	Data verification			37
	9.1	Databases		37
	9.2	Data Verification Procedures		37
	9.3	Limitations to the Data Verification		37
	9.4	Comment on Data Verification		37
10	Mineral Processing and Metallurgical Testing			38
11	Mineral Resource Estimate			39
	11.1	TSFs - Mineral Resource Estimation Methods		39
		11.1.1	Geological (Sampling) Database	39
		11.1.2	Global Statistics	40
		11.1.3	Compositing	40
		11.1.4	Capping	40
		11.1.5	Variography	41
		11.1.6	3D Model	41
		11.1.7	Grade Estimation	41
		11.1.8	Density Assignment	41
		11.1.9	Block Model Validation	43
	11.2	WRDs - Mineral Resource Estimation Methods		43
		11.2.1	Geological (Sampling) Database	43
		11.2.2	Global Statistics	43
		11.2.3	Compositing	43
		11.2.4	Variography	43
		11.2.5	Volume Model	43
		11.2.6	Grade Estimation	43
		11.2.7	Density Assignment	44
		11.2.8	Block Model Validation	44
	11.3	Mineral Resource Evaluation		44
	11.4	Mineral Resource Classification and Uncertainties		44
		11.4.1	TSFs	44
		11.4.2	WRDs	44
	11.5	Mineral Resource Estimate		44
	11.6	Mineral Resource Reconciliation		49
	11.7	Audits and Reviews		50
	11.8	Commentary on Mineral Resource Estimate		50
12	Mineral Reserve Estimate			51
	12.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve		51
	12.2	Modifying Factors		51


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


	12.3	Mineral Reserve Estimate		52
	12.4	Mineral Reserve Reconciliation		53
	12.5	Commentary on Mineral Reserve Estimate		53
13	Mining Method			54
	13.1	Mine Design		54
		13.1.1	TSFs	54
		13.1.2	WRDs	54
	13.2	Mine Plan Development and LOM Schedule		56
	13.3	Geotechnical and Hydrological Considerations		56
	13.4	Dilution and Grade Control		59
	13.5	Ore Transport		59
	13.6	Mining Equipment and Machinery		60
	13.7	Mining Personnel		60
	13.8	Commentary on Mining Method		60
14	Processing and Recovery Methods			61
	14.1	Saaiplaas Plant		61
		14.1.1	Mineral Processing Description	61
		14.1.2	Plant Throughput, Design, Equipment Characteristics and Specifications	61
		14.1.3	Energy, Water, Process Material and Personnel Requirements	63
	14.2	Central Plant		63
		14.2.1	Mineral Processing Description	63
		14.2.2	Plant Throughput, Design, Equipment Characteristics and Specifications	63
		14.2.3	Energy, Water, Process Material and Personnel Requirements	65
	14.3	Free State Tailings (PFS)		65
		14.3.1	Harmony One Plant Mineral Processing Description	65
		14.3.2	Target Plant Mineral Processing Description	66
	14.4	Commentary on the Processing and Recovery Methods		66
15	Infrastructure			67
	15.1	Tailings Storage Facilities (Depositional TSFs)		67
		15.1.1	Saaiplaas Plant	67
		15.1.2	Central Plant	67
	15.2	Pipelines and Conveyors		72
	15.3	Power and Electrical		72
	15.4	Water Usage		72
	15.5	Logistics and Supply		72
	15.6	Commentary on Infrastructure		72
16	Market Studies			73
	16.1	Market Overview		73
	16.2	Global Production and Supply		73
		16.2.1	New Mine Production	73
		16.2.2	Recycling	73
	16.3	Global Consumption and Demand		73
		16.3.1	Jewellery	73
		16.3.2	Investment	73
		16.3.3	Currency	74
	16.4	Gold Price		74
		16.4.1	Historical Gold Price	74
		16.4.2	Forecast Gold Price	74
		16.4.3	Harmony Group Gold Hedging Policy	74
	16.5	Commentary on Market Studies		76
	16.6	Material Contracts		76


Effective Date: 30 June 2022 iv


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			77
	17.1	Results of Environmental Studies		77
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		77
	17.3	Permitting and Licences		78
	17.4	Local Stakeholder Plans and Agreements		79
	17.5	Mine Closure Plans		79
	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals or Groups		79
	17.7	Local Procurement and Hiring		79
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		80
18	Capital and Operating Costs			81
	18.1	Phoenix Project		81
	18.2	Central Plant Reclamation		81
	18.3	Free State Tailings		82
	18.4	Comment on Capital and Operating Costs		82
19	Economic Analysis			83
	19.1	Key Economic Assumptions and Parameters		83
		19.1.1	Metallurgical Recoveries	83
		19.1.2	Gold Price	83
		19.1.3	Exchange Rate	83
		19.1.4	Royalties	84
		19.1.5	Capital Expenditure	84
		19.1.6	Operating Expenditure	84
		19.1.7	Working Capital	84
		19.1.8	Taxes	84
		19.1.9	Closure Cost and Salvage Value	84
		19.1.10	Summary	85
	19.2	Economic Analysis		85
		19.2.1	Phoenix Economic Analysis	86
		19.2.2	Central Plant Reclamation Economic Analysis	86
		19.2.3	Free State Tailings Economic Analysis	86
	19.3	Sensitivity Analysis		89
		19.3.1	Phoenix Sensitivity Analysis	90
		19.3.2	Central Plant Reclamation Sensitivity Analysis	90
		19.3.3	Free State Tailings Sensitivity Analysis	90
20	Adjacent properties			91
21	Other Relevant Data and Information			92
22	Interpretation and Conclusions			93
23	Recommendations			95
24	References			96
25	Reliance on Information Provided by the Registrant			97


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

List of Figures


Figure 3-1: Location of Harmony’s Free State Operations			10
Figure 3-2: Location of Free State Surface Operations’ TSFs between Welkom and Virginia			11
Figure 3-3: Location of Free State Surface Operations’ WRDs North of Welkom			12
Figure 3-4: Mineral Tenure of Free State Surface Operations			15
Figure 5-1: Graph of Past Production – Tonnes and Grade			21
Figure 5-2: Graph of Past Metal Production			21
Figure 6-1: Geological setting of the Witwatersrand Basin			23
Figure 6-2: Stratigraphic Column of the Free State Goldfield			24
Figure 7-1: Location of Drilling at Saaiplaas Dams, FSN6, FSS7, FSS6, FSS4 and FSS1			27
Figure 11-1: Distribution of Gold Grades for Saaiplaas Dams, FSN6, FSS7, FSS6, FSS4 and FSS1			42
Figure 11-2: Location and Classification of Free State Surface Operations TSF Mineral Resources and Mineral Reserves			46
Figure 11-3: Location and Classification of Free State Surface Operations WRD Mineral Resources and Mineral Reserves			47
Figure 13-1: Photograph of TSF Reclamation			55
Figure 13-2: Photograph of WRD Mining			55
Figure 13-3: Graph of LOM for Phoenix Project – Tonnes and Grade			57
Figure 13-4: Graph of LOM for Phoenix Project – Gold Produced (kg)			57
Figure 13-5: Graph of LOM for Central Plant Reclamation – Tonnes and Grade			58
Figure 13-6: Graph of LOM for Central Plant Reclamation – Gold Produced			58
Figure 13-7: Graph of LOM for Free State Tailings – Tonnes and Grade			59
Figure 13-8: Graph of LOM for Free State Tailings – Gold Produced (kg)			59
Figure 14-1: Schematic Flow Diagram for Saaiplaas Plant			62
Figure 14-2: Schematic Flow Diagram of the Metallurgical Process Diagram at Central Plant			64
Figure 14-3: Graph of Historical Gold Recovery at Saaiplaas and Central Plant			66
Figure 15-1: Location of Free State Surface Operations in Relation to Local Infrastructure Between Welkom and Virginia			68
Figure 15-2: Location of Free State Surface Operations in Relation to Local Infrastructure North of Welkom			69
Figure 15-3: Detailed Infrastructure for Saaiplaas Plant			70
Figure 15-4: Detailed Infrastructure for Central Plant			71
Figure 16-1: Graph of Annual Gold Price History – ZAR/kg			75
Figure 16-2: Graph of Consensus View of Forecast Gold Price			75
Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast			84


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

List of Tables


Table 1-1: Summary of the Free State Surface Operations TSF Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9			3
Table 1-2: Summary of the Free State Surface Operations WRD Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9			4
Table 1-3: Summary of the Free State Surface Operations TSF Mineral Reserves estimate as at 30 June, 2022 1-5			5
Table 1-4: Summary of Capital Cost Estimates for Central Plant Reclamation			6
Table 1-5: Summary of Capital Cost Estimates for Free State Tailings			6
Table 1-6: Summary of Operating Cost Estimates for Phoenix Project			6
Table 1-7: Summary of Operating Cost Estimate for Central Plant Reclamation			6
Table 1-8: Status of Environmental Permits and Licences			7
Table 2-1: List of Responsible and Contributing Authors			8
Table 3-1: Free State Surface Operations’ TSF Deposits and Processing Route			13
Table 3-2: Free State Surface Operations’ WRDs Deposits and Processing Route			13
Table 3-3: Mining Rights and associated TSF and WRDs			14
Table 5-1: Summary of Historical Ownership Changes and Activities of Free State Operations			17
Table 5-2: Summary of the Previous Free State Surface Operations TSF Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)			18
Table 5-3: Summary of the Previous Free State Surface Operations WRD Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)			19
Table 5-4: Summary of the Previous Free State Surface Operations TSF Mineral Reserves as at 30 June 2021			20
Table 7-1: TSF Drilling Grid Spacing			27
Table 8-1: List of Harmony Analytical Quality CRM			32
Table 8-2: List of Set Point Laboratories Analytical Quality CRM			33
Table 8-3: Summary of Laboratory Standard Results			36
Table 11-1: Summary of Mineral Resource Estimation Methods and Company			39
Table 11-2: Global Statistics for Recently Modelled TSFs			40
Table 11-3: Summary of Gold Grade Outliers and Capping for TSFs			40
Table 11-4: Global Statistics for the WRDs			43
Table 11-5: Classification of Free State Surface Operations TSF Mineral Resources and Mineral Reserves by Surface Deposit ID			45
Table 11-6: Classification of Free State Surface Operations WRD Mineral Resources and Mineral Reserves by Surface Deposit ID			45
Table 11-7: Summary of the Free State Surface Operations TSF Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9			48
Table 11-8: Summary of the Free State Surface Operations WRD Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9			49
Table 12-1: Modifying Factors for Free-State Surface Operations as at 30 June 2022			52
Table 12-2: Summary of the Free State Surface Operations Mineral Reserve estimate as at 30 June, 2022 1-5			52
Table 13-1: Key Hydro-Mining Design Parameters			54
Table 13-2: Key WRD Mining Design Parameters			56
Table 13-3: Free State Surface Operations Mining Personnel			60
Table 14-1: Saaiplaas Plant Leaching Process Parameters			61
Table 14-2: Saaiplaas Equipment Specification			61
Table 14-3: Energy, Water and Personnel Requirements at Saaiplaas Plant			63
Table 14-4: Central Plant Leaching Process Parameters			65


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


Table 14-5: Plant Equipment Specifications at Central Plant			65
Table 14-6: Energy, water and personnel at Central Plant			65
Table 15-1: Free State Surface Operations Active and Future Depositional TSFs			67
Table 15-2: Harmony One Plant Pumping Requirements for Further TSF Treatment			72
Table 16-1: Material Contracts			76
Table 17-1: Status of Environmental Permits and Licences			78
Table 18-1: Summary of Operating Cost for Phoenix Project			81
Table 18-2: Summary of Capital Cost Estimates for Central Plant Reclamation			81
Table 18-3: Summary of Operating Cost Estimates for Central Plant Reclamation			81
Table 18-4: Summary of Capital Cost Estimates for Free State Tailings			82
Table 19-1: Conversions Used in Gold Price Calculations			83
Table 19-2: ZAR:USD Exchange Rate Performance (July 2019 – June 2022)			83
Table 19-3: Key Economic Assumptions and Parameters for Phoenix Project Cash Flow			85
Table 19-4: Key Economic Assumptions and Parameters for Central Plant Reclamation Cash Flow			85
Table 19-5: Key Economic Assumptions and Parameters for Free State Tailings Cash Flow			85
Table 19-6: Phoenix Project Cash Flow			87
Table 19-7: Central Plant Reclamation Cash Flow			86
Table 19-8: Phoenix Project Gold Price Sensitivity on NPV			90
Table 19-9: Phoenix Project Operating Cost Sensitivity on NPV			90
Table 19-10: Central Plant Reclamation Gold Price Sensitivity on NPV			90
Table 19-11: Central Plant Reclamation Operating Cost Sensitivity on NPV			90
Table 25-1: Other Specialists			97


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
°C			degrees Celsius
µm			Micrometres
2D			Two-dimensional
3D			Three-dimensional
AAC			Anglo American Corporation Limited
AAS			Atomic Absorption Spectroscopy
AE			Abnormal expenditure
Ag			Silver
AMIS			African Minerals Standards
Au			Gold
AuBIS			Harmony electronic database
Ave.			Average
BBBEE			Broad Based Black Economic Empowerment
Bn			Billion
c.			Approximately
CIL			Carbon in leach
CIP			Carbon in pulp
CLR			Carbon Leader Reef
cm			Centimetre
cmg/t			Centimetre-grams per tonne
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COP			Code of Practice
COV			Coefficient of Variation
CRG			Central Rand Group
CRM			Certified Reference Material
DatamineTM			Datamine Studio RM or Datamine Studio OP
DMRE			Department of Mineral Resources and Energy
DTM			Digital Terrain Model
DWS			Department of Water and Sanitation
EIA			Environmental Impact Assessment
EMPR			Environmental Management Programme
EMS			Environmental Management System
ESG			Environmental Social and Governance
ETF			Exchange traded fund
EW-SX			Electro-wining solvent extraction
ExplorMine			ExplorMine Consultants
FEL			Front-end loaders
FX			Foreign Exchange rate
g			Gram
g/t			Grams per tonne
g/t			Grams per metric tonne
GISTM			Global Industry Standard on Tailings Management
GPS			Global positioning system
Ha			Hectares
Harmony			Harmony Gold Mining Company Limited
HPE			Hydro-powered
ICP			Inductively coupled plasma


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


ID2			Inverse Distance Squared
Kg			Kilogram
km			Kilometre
km2			Square kilometre
kWh			Kilowatt-hour
LBMA			London Bullion Market Association
LiDAR			Light detection and ranging
LIMS			Laboratory Information System
LOM			Life of Mine
Ltd			Limited
m			Metre
M			Million
m3/hr			Cubic metres per hour
masl			Metres above sea level
MCC			Mining Charter Compliance
MCF			Mine Call Factor
Mintek			South Africa's national mineral research organisation
Mlb			Million pounds
Moz			Million troy ounces
MPRDA			Mineral and Petroleum Resources Development Act, 28 of 2002
Mt			Million tonnes
Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
NEMA			National Environmental Management Act, 107 of 1998
No.			Number
NPV			Net present value
OK			Ordinary Kriging
OTC			Over the counter
oz			Troy ounce
PFS			Pre Feasibility Study
PSD			Particle Size Distribution
Pty			Proprietary
QA/QC			Quality Assurance/Quality Control
QP			Qualified Person
ROM			Run-of-Mine
SACNASP			South African Council for Natural Scientific Professions
SAMREC Code			The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves
SANAS			South African National Accreditation System
Savuka			Savuka Gold Mine
SD			Standard Deviation
SEC			Securities and Exchange Commission
SLP			Social Labour Plan
t			Metric tonne
t/m3			Tonne per cubic metre
TRS			Technical Report Summary
TSF			Tailings Storage Facility
Tswelopele Beneficiation Operation			Tswelopele Beneficiation Operation (Pty) Limited
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
WRD			Waste Rock Dump


Effective Date: 30 June 2022 ii


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


WRG			West Rand Group
WUL(s)			Water Use Licence(s)
XRF			X-ray fluorescence
ZAR			South African Rand
ZAR/kg			South African Rand per kilogram


Effective Date: 30 June 2022 iii


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Glossary of Terms


Term			Definition
Cut-off grade			Cut-off grade is the grade (i.e. the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Dilution			Unmineralized rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Head grade			The average grade of ore fed into the mill.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a Mineral Reserve.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.
Modifying Factors			Modifying factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include but are not restricted to; mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.


Effective Date: 30 June 2022 iv


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product.
			(1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable.
			(2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is:
			(1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and
			(2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must:
			(i) Be either:
			(A) An organization recognized within the mining industry as a reputable professional association; or
			(B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field;
			(ii) Admit eligible members primarily on the basis of their academic qualifications and experience;
			(iii) Establish and require compliance with professional standards of competence and ethics;
			(iv) Require or encourage continuing professional development;
			(v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and
			(vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.
Tailings Freeboard			The vertical height between the beached tailings against the embankment crest and the crest itself.


Effective Date: 30 June 2022 ii


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Person(s) (“QP”) of Harmony Gold Mining Company Limited (“Harmony” or the “Company”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Company’s Free-State Surface Operations. The TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, with an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature of this TRS.

Property Description

The Free State Surface Operations are located near the towns of Welkom and Virginia, Free State Province, South Africa. The operations reclaim and re-treat local surface tailings storage facilities (“TSFs”) and waste rock dumps (“WRDs”).

The Free State Surface Operations comprise Mineral Resources located in 24 TSFs and 21 WRDs; three of the TSFs are actively being mined and processed through two processing plants. The Free State Surface Operations comprise the following:

•Phoenix Project: This project is currently reclaiming two TSFs which are processed through the Saaiplaas Plant;

•Central Plant Reclamation. This operation is currently reclaiming one TSF which is processed through the Central Plant;

•Free Sate Tailings: This project is at Pre-Feasibility Study ("PFS") level and will include the treatment of 21 TSFs. These TSFs will be processed through any of the plants, and

•WRDs located across Harmony's Free State mining operations.

In 2010, Harmony initiated a programme to mill and process WRDs located across Harmony’s Free State mining operations (including Tshepong Mine, Phakisa Mine, Bambanani Mine, Joel Mine, Masimong Mine and Target 1 Mine). Processing of these WRDs depends entirely on the availability of spare mill capacity at the Harmony One and Target plants. The WRD are scattered across the Welkom and Virginia area in the Free State.

Ownership

The Free-State Surface Operations and their associated mineral rights are wholly owned by Harmony, except for the Phoenix Project. The Phoenix Project is 100% owned by Harmony’s Broad Based Black Economic Empowerment (“BBBEE”) subsidiary, Tswelopele Beneficiation Operation (Pty) Limited (“Tswelopele Beneficiation Operation”), of which Harmony is a 76% shareholder (5% held by the Harmony Community Trust).

Geology and Mineralisation

Material contained in the TSFs and WRDs originates from deep level gold mines, operated by Harmony and other mining companies. The mining operations predominantly extract narrow, tabular gold-bearing conglomerate reefs, namely the Basal, B, Elsburg (EA), Dreyerskruil and Beatrix reefs.

These reefs occur within the Archean Witwatersrand Basin which hosts the Witwatersrand Supergroup succession. The Basal Reef is located at the base of the Harmony Formation, within the Johannesburg Subgroup of the Central Rand Group (“CRG”). The B Reef is part of the Spec Bona Member at the base of the Aandenk Formation, within the Turffontein Subgroup of the CRG. The Beatrix Reef is part of the Earls Court Member of the Aandenk Formation, within the Turffontein Subgroup of the CRG. The Elsburg (EA) and Dreyerskruil reefs occur within the Eldorado Formation of the Turffontein Subgroup, capping the CRG in the Free State Goldfield.

The TSF material is the waste product of crushing, milling and gold extraction by carbon-in-leach (“CIL”) or carbon-in-pulp (“CIP”) methods. As man-made deposits the TSFs not the result of natural sedimentary processes. The grade of the TSFs is a function by the grade of the original reef sources, and the efficiency of the processing method at the time of treatment.


Effective Date: 30 June 2022 1


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

The WRDs comprise unconsolidated, untreated, low grade gold-bearing rock extracted from underground workings during the mining process. These WRDs are also man-made and are not formed as a result of natural sedimentary processes. They exhibit no structure or continuity. The grade of the WRDs is a function of the grade of the original reef sources.

The most significant mineral in the TSFs and WRDs is quartz, which makes up more than 60% of the bulk mineral composition. The gold predominantly occurs in association with pyrite. Other minerals identified include silver, copper, iron oxide, nickel, bismuth, uranium, lead and zinc from the Basal, B, Elsburg (EA), Dreyerskruil and Beatrix conglomerates.

Current Status of Exploration, Development and Operation

Exploration of Free State Surface Operations was undertaken between 2007 to 2020. Exploration of TSFs and WRDs is typically undertaken using auger drilling and/or sampling campaigns to determine their in-situ gold grade and economic potential. No TSF drilling is planned for 2022.

The Free State Surface Operations also include TSFs which are active (i.e., currently receiving tailings from Harmony’s processing plants). These active TSFs will only be sampled once they go out of service.

There are currently three active mining or reclamation sites.

The Phoenix Project’s Brand A (PB Dam A) and Dam 21 (or No. 21) TSFs are being reclaimed and processed at the Saaiplaas Plant. Although the Phoenix operation is nearing the end of its life, its next feed source will be FSS6 when Brand A has been depleted.

The FSS5 TSF is actively being mined as part of the Central Plant Reclamation and is processed at the Central Plant and is expected to be depleted in 2028 whereafter FSS3 will be introduced as a new source commencing in 2027.

The Free Sate Tailings are scheduled to be processed as the current TSF’s being processed are depleted. They will be introduced to replace the current sources accordingly.

Mineral Resource Estimate

The current Mineral Resources for the TSFs were estimated using Datamine™ Studio RM modelling software (“DatamineTM”), based on a validated database. The database contained auger drill hole sampling data obtained until June 2020. The QP created three-dimensional (“3D”) digital terrain models (“DTM”) based on the TSF topographical survey results and gold values were estimated primarily using the inverse distance squared (“ID2”) grade interpolation method.

The Mineral Resources for the WRDs were also estimated using 3D DTMs to constrain the volumes. In this case, the gold grade was estimated by using the weighted average of the sampling results. Cognisance was also taken of the known gold grades of the source rock and recent production results.

The Mineral Resources were originally prepared, classified and reported according to the 2016 edition of the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (“SAMREC Code, 2016”). For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K.

The QP compiling the Mineral Resource estimates for both the TSFs and WRDs is Mr BJ Selebogo, Mineral Reserve Manager and an employee of Harmony.

The Mineral Resource estimate, as at 30 June 2022, exclusive of the reported Mineral Reserves, is summarised in Table 1-1 and Table 1-2 for the TSFs and WRDs, respectively. The estimate accounts for depletions up to 30 June 2022.


Effective Date: 30 June 2022 2


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Table 1-1: Summary of the Free State Surface Operations TSF Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9


Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (g/t Au)	Gold Content (kg)
Measured	Phoenix Project	21.852	0.27	5,855
	Central Plant Reclamation	-	-	-
	Free State Tailings	82.788	0.27	22,487
Sub Total / Ave. Measured		104.640	0.27	28,342
Indicated	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	Free State Tailings	-	-	-
Sub Total / Ave. Indicated		0.000	0.00	0
Total / Ave. Measured + Indicated		104.640	0.27	28,342
Inferred	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	Free State Tailings	15.459	0.19	2,937
Total / Ave. Inferred		15.459	0.19	2,937
IMPERIAL
Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	Phoenix Project	24.088	0.008	0.188
	Central Plant Reclamation	-	-	-
	Free State Tailings	91.258	0.008	0.723
Sub Total / Ave. Measured		115.346	0.008	0.911
Indicated	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	Free State Tailings	-	-	-
Sub Total / Ave. Indicated		0.000	0.000	0.000
Total / Ave. Measured + Indicated		115.346	0.008	0.911
Inferred	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	Free State Tailings	17.041	0.006	0.094
Total / Ave. Inferred		17.041	0.006	0.094
Notes:
1. The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is Ore Reserve Manager, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No cut-off grade has been applied for the estimation of Mineral Resources. Mineral Resource tonnes are reported based on a gold price of USD1,723/oz.
4. Tonnes are reported as million tonnes rounded to three decimal places. Gold values are rounded to zero decimal places.
5. Uranium content is not reported for any of the projects.
6. Metal content does not include allowances for processing losses.
7. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
8. Rounding as required by reporting guidelines may result in apparent summation differences .
9. The Mineral Resource estimate is for Harmony’s 100% interest.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Table 1-2: Summary of the Free State Surface Operations WRD Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9


METRIC
Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (g/t Au)	Gold Content (kg)
Measured	N/A	-	-	-
Indicated	N/A	1.055	0.39	413
Total / Ave. Measured + Indicated		1.055	0.39	413
Inferred	N/A	16.950	0.43	7,292
IMPERIAL
Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (oz/t Au)	Gold Content (Moz)
Measured	N/A	-	-	-
Indicated	N/A	1.163	0.011	0.013
Total / Ave. Measured + Indicated		1.163	0.011	0.013
Inferred	N/A	18.684	0.013	0.234
Notes:
1. The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is Ore Reserve Manager, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No cut-off grade has been applied for the estimation of Mineral Resources. Mineral Resource tonnes are reported based on a gold price of USD1,723/oz.
4. Tonnes are reported as million tonnes rounded to three decimal places. Gold values are rounded to zero decimal places.
5. Uranium content is not reported for any of the projects.
6. Metal content does not include allowances for processing losses.
7. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
8. Rounding as required by reporting guidelines may result in apparent summation differences .
9. The Mineral Resource estimate is for Harmony’s 100% interest.

Mineral Reserve Estimate

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational planning processes. The planning team utilises and takes into consideration historical technical parameters achieved. In addition, Mineral Resource conversion to Mineral Reserves considers modifying factors, plant call factor, and plant recovery factors.

The Mineral Reserve estimate is declared as delivered to the plant for all TSFs and reported as at 30 June 2022. The plant recovery Modifying Factor is used to estimate the total gold recovered from the Mineral Reserve estimate which is used in the economic analysis. The Mineral Reserves estimate for Free State Surface Operations TSFs are shown in Table 1-3.

There are no Mineral Reserves estimated for the WRDs.

The QP responsible for the Mineral Reserves estimates for the TSFs is Mr BJ Selebogo, Mineral Reserve Manager and an employee of Harmony.


Effective Date: 30 June 2022 4


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Table 1-3: Summary of the Free State Surface Operations TSF Mineral Reserves estimate as at 30 June, 2022 1-5


METRIC
Mineral Reserve Category	Operation / Project	Tonnes (Mt)	Gold Grade (g/t Au)	Gold Content (kg)
Proven	Phoenix Project	36.519	0.29	10,423
	Central Plant Reclamation	-	-	-
	Free State Tailings	86.527	0.27	23,410
Sub Total / Ave Proven		123.046	0.27	33,834
Probable	Phoenix Project	-	-	-
	Central Plant Reclamation	47.910	0.27	12,844
	Free State Tailings	578.727	0.22	129,266
Sub Total / Ave Probable		626.638	0.23	142,110
Total / Ave (Proved + Probable)		749.683	0.23	175,943
IMPERIAL
Mineral Reserve Category	Operation / Project	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	Phoenix Project	40.255	0.008	0.335
	Central Plant Reclamation	-	-	-
	Free State Tailings	95.380	0.008	0.753
Sub Total / Ave Proven		135.635	0.008	1.088
Probable	Phoenix Project	-	-	-
	Central Plant Reclamation	52.812	0.008	0.413
	Free State Tailings	637.937	0.007	4.156
Sub Total / Ave Probable		690.749	0.007	4.569
Total / Ave (Proved + Probable)		826.384	0.007	5.657
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is the Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3. Gold content is recovered gold after taking into consideration the modifying factors.
4. Mineral Reserves are reported using a cut-off grade of 0.137g/t and a gold price of USD1,546/oz.
5. Recovered gold (kg) is based on a conversion factor of 32.1507oz/kg.

In the QP’s opinion, Free State Surface Operations’ Phoenix and Central Plant Reclamation are established operations, therefore the Modifying Factors applied in the conversion of Mineral Resources to Mineral Reserves would, at a minimum satisfy the confidence levels for a PFS. The life of mine (“LOM”) plan for Free State Surface Operations uses the Mineral Reserve estimate as a basis and is deemed both technically and economically viable. In addition, the PFS for the Free State Tailings is a reasonable basis for the Mineral Reserve estimate.

Capital and Operating Cost Estimates

The capital cost estimates for the various Free State Surface Operations are determined at corporate level, using the business plan as a basis. The capital cost elements include equipment, infrastructure and operating capital. The capital costs are reported in ZAR terms and on a real basis.

There are no capital costs associated with the Phoenix Project as it is nearing the end of the current mining. FSS 6 has been targeted as its next feed source.

The capital cost estimates for Central Plant Reclamation are presented in Table 1-4.


Effective Date: 30 June 2022 5


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Table 1-4: Summary of Capital Cost Estimates for Central Plant Reclamation


Capital Cost Element (ZARm)			Total LOM (FY2023 -FY2035)
Surface Source Capital			42.05

A PFS has recently been completed for Free State Tailings. The capital cost estimates, based upon this study, are presented in Table 1-5.

Table 1-5: Summary of Capital Cost Estimates for Free State Tailings


Capital Cost Element			ZAR(m)
Residue Pumping			674.56
Deposition TSF			5,589.28
Return Water			100.01
One Plant			610.02
Target Plant			203.34
Reclamation Stations			2,670.25
Total Capital Cost			9,847.46

The operating cost estimates for the Free State Surface Operations are categorised into eight allocated cost categories. The operating costs are reported in ZAR terms and on a real basis. A summary of Phoenix Project and Central Plant Reclamation operating cost estimates are presented in Table 1-6 and Table 1-7, respectively.

Table 1-6: Summary of Operating Cost Estimates for Phoenix Project


Operating Costs			ZAR/t (Processed)
Wages - Payroll 1			1.42
Wages - Payroll 2			0.31
Stores and materials			2.31
Electric power and water			5.79
Outside contractors			10.99
Other			0.23
Refining charge allocation			0.40
Hostel cost allocation			0.01
Treatment cost allocation			58.63
Mine Overheads			0.09
Total Operating Cost			80.17

Table 1-7: Summary of Operating Cost Estimate for Central Plant Reclamation


Operating Costs			ZAR/t (Processed)
Stores and materials			1.99
Electric power and water			5.60
Outside contractors			9.53
Other			0.08
Refining charge allocation			0.46
Assay cost allocation			0.11
Treatment cost allocation			57.33
Mine Overheads			5.98
Total Operating Cost			81.09

An average cost of ZAR70.13/t is applied to the Free State Tailings cash flow. This is based upon the recent operating costs from Phoenix and Central Plant Reclamation.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Permitting Requirements

To successfully operate a mining or reclamation operation in South Africa, the State requires compliance with applicable environmental laws, regulations, permits and standards.

Free State Surface Operations adheres to said compliance and regulatory standards and have, in addition, implemented an Environmental Management System in line with the ISO 14001. Free State Surface Operations has all permits required to operate. The status of the permits held by the company are presented in Table 1-8.

Table 1-8: Status of Environmental Permits and Licences

Operation

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Phoenix Project

Atmospheric Air Emission Licence- Exemption

LDM/AEL/YMK/017

Lejweleputswa District Municipality

05-Nov-18

N/A

Water Permit

1214N

DWS

N/A

LOM

Central Plant Reclamation

Atmospheric Air Emission Licence

LDM/AEL/YMK/012

Lejweleputswa District Municipality

05-Nov-18

06-Nov-23

Water Permit

1214N

DWS

N/A

LOM

General

Environmental Management Programme

FS30/5/1/2/3/2/1(82) EM

DMRE

12-Mar-10

Valid

Notes: DWS - Department of Water & Sanitation, DMRE - Department of Mineral Resources & Energy

Conclusions

Under the assumptions in this TRS, the Phoenix Project, Central Plant Reclamation and Free State Tailings all show a positive cash flow over the LOM which supports the Mineral Resource and Mineral Reserve estimates. The LOM is achievable under the set of assumptions and parameters used herein.

Recommendations

No recommendation are provided by the QP.


Effective Date: 30 June 2022 7


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

2Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS on Free State Surface Operations has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the U.S. SEC Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 - Technical Report Summary. The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand the Free State Surface Operations, which forms part of Harmony’s activities.

This TRS has been prepared from the following sources of information:

•Competent Persons Report dated 30 June 2022;

•the BP2023 Harmony Corporate Business Plan; and

•published Mineral Resource and Mineral Reserve statement as at 30 June 2022.

This TRS was prepared by QPs employed on a full-time basis by the registrant. The QPs qualifications, areas of responsibility and personal inspection of the properties are presented in Table 2-1.

Table 2-1: List of Responsible and Contributing Authors

Qualified Person

Professional Organisation

Qualification

TRS Section Responsibility

Personal Insp.

Mr BJ Selebogo

SAGC

MSCC, HND (MRM), Mine Survey CoC

All Sections

Full time

Mr D Fourie

SAIMM

MSc. Eng, GDE

6, 7, 9, 11, 12

Full time

Mr T Leonard

N/A

BSc. (Elec Eng), GCC

5, 6, 7, 8, 11, 12, 19

Full time

Mr T Hlobo

SAIMM

B-Tech Metallurgy, Post Graduate Dip Bus Admin

5, 10, 12, 13, 14, 15

Full time

Mr E Kleinhans

MMMA

B-Tech Metallurgy

5, 10, 12, 13, 14, 15

Full time

Ms M Mbongo

N/A

B-Tech Cost & Man Acc

18, 19

Full time

Mr O Moiloa

N/A

B-Tech Analytical Chemistry

Full time

Mr H Mashaba

N/A

BSc. (Hon) Env Man

Full time

This TRS is the first filing of such a document with the SEC and has an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

3Property Description and Location

Section 229.601(b)(96) (3) (i-vii)

3.1Property Description and Location

The Free State Surface Operations are located near the towns of Welkom and Virginia, Free State Province, South Africa (Figure 3-1). The operations reclaim and re-treat local surface tailings storage facilities (“TSFs”) and waste rock dumps (“WRDs”).

The Free State Surface Operations comprise Mineral Resources located in 24 TSFs and 12 WRDs; three of the TSFs are actively being mined and processed through two processing plants. The Free State Surface Operations comprise the following:

•Phoenix Project: This project is currently reclaiming two TSFs which are processed through the Saaiplaas Plant;

•Central Plant Reclamation. This operation is currently reclaiming one TSF which is processed through the Central Plant;

•Free Sate Tailings: This project is at PFS level and will include the treatment of 21 TSFs. These TSFs will be processed through any of the plants, and

•WRDs located across Harmony's Free State mining operations.

The location of the TSFs situated between Welkom and Virginia is presented in Figure 3-2. The location of the WRDs is presented in Figure 3-3. A summary of the TSFs, their depositional status and treatment plant is provided in Table 3-1. The summary of WRDs, their depositional status and treatment plant is presented in Table 3-2

3.1.1Phoenix Project

Phoenix Project is a tailings retreatment operation located approximately 6km north of the town of Virginia; it currently retreats material from the Dam A (PB Dam A) and Dam 21 TSFs using the Saaiplaas Plant. The Saaiplaas Plant is located at latitude 28°03’37.68”S and longitude 26°53’14.59”E (Figure 3-2).

The Phoenix Project is nearing the end of its current ore sources and the next source that will be introduced is FSS6.

3.1.2Central Plant Reclamation

The Central Plant Reclamation currently retreats material from the FSS5 TSF using the Central Plant. The FSS5 TSF is located close to the southern edge of the town of Welkom, while the Central Plant is located approximately 7km southeast of the Saaiplaas Plant at a latitude of 28°02’8.36”S and a longitude of 26°52’8.99”E (Figure 3-2).

Commissioning of the Central Plant began in June 2017 with ramp-up to a capacity of 300ktpm achieved by the end of July 2017. The plant was originally built to process WRDs and was converted into a tailings retreatment plant in 2017.

3.1.3Free State Tailings

The Free State Tailings is currently at PFS stage. Although the results of the study completed in 2009 indicate a positive net present value (“NPV”), the project has not yet been commissioned. The project currently comprises the 19 TSFs.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


Figure 3-1: Location of Harmony’s Free State Operations


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


Figure 3-2: Location of Free State Surface Operations’ TSFs between Welkom and Virginia


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


Figure 3-3: Location of Free State Surface Operations’ WRDs North of Welkom


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Table 3-1: Free State Surface Operations’ TSF Deposits and Processing Route


Operation / Project	Surface Deposit ID	TSF Status	Processing Plant
Phoenix Project	Brand A (PB Dam A)	Active mining	Saaiplaas Plant
	No. 21 (H3)	Active mining
	FSS 6	Dormant
Central Plant Reclamation	FSS3	Dormant	Central Plant
	FSS5	Active mining
Free State Tailings	FSN6	Dormant	Any Plant
	No. 32	Dormant
	FSS1	Dormant
	FSS2 East and West	Active deposition (Harmony One Plant)
	FSS4	Dormant
	FSS7	Dormant
	FSS8 East	Active deposition (from Harmony One Plant)
	FSS8 West	Active deposition (from Harmony One Plant)
	Brand D (PB Dam D)	Active deposition (from Central Plant)
	Saaiplaas 1	Dormant
	Saaiplaas 2 and 3	Dormant
	Saaiplaas 5b	Dormant
	Saaiplaas 6	Dormant
	No. 23 (Central Plant)	Active deposition (from Central Plant)
	No. 30a	Dormant
	No. 33b	Dormant
	No. 34a	Dormant
	Target Slimes Dam	Active deposition (from Central Plant)
	Pres Steyn 9 (Freddies 9)	Dormant

Table 3-2: Free State Surface Operations’ WRDs Deposits and Processing Route


Operation / Project	Surface Deposit ID	TSF Status	Processing Plant
WRDs	Freddies 3#	Dormant	Target Plant
	Freddies 9	Active mining
	Bambanani East (PS 4#)	Dormant	Harmony One Plant
	Tshepong	Active mining
	Nyala #	Active mining
	Kudu #	Dormant
	Sable #	Dormant
	Eland #	Dormant
	Freddies 6#	Dormant
	Saaiplaas 2#	Dormant
	Saaiplaas 3#	Dormant
	Brand 2	Dormant


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

3.2Mineral Tenure

The mineral tenure of the Free State Surface Operations, under which the activity of reclaiming TSFs and WRDs are permitted, falls within the mining rights held by Harmony. The different mining right areas and associated TSFs and WRDs that form part of the Free State Surface Operations is indicated in Figure 3-4 and detailed in Table 3-3.

Table 3-3: Mining Rights and associated TSF and WRDs

TSF Name

Licence Type

Reference No.

Effective Date

Expiry Date

Mineral

Brand A (PB Dam A)

11-Dec-07

10-Dec-29

No. 21 (H3)

11-Dec-07

10-Dec-29

FSS3

227

11-Dec-07

10-Dec-29

FSS5

227

11-Dec-07

10-Dec-29

FSS6

227

11-Dec-07

10-Dec-29

FSN6

227

11-Dec-07

10-Dec-29

No. 32

11-Dec-07

10-Dec-29

FSS1

227

4-Feb-10

10-Dec-29

Au, Ag, Cu, Fe, Ni, Bi, U, Pb, Zn

FSS2 East and West

83/227

11-Dec-07

10-Dec-29

FSS4

11-Dec-07

10-Dec-29

FSS7

11-Dec-07

10-Dec-29

FSS8 East

11-Dec-07

10-Dec-29

FSS8 West

Brand D (PB Dam D)

Welkom no MR

11-Dec-07

10-Dec-29

Saaiplaas 1

11-Dec-07

10-Dec-29

Saaiplaas 3 and 2

11-Dec-07

10-Dec-29

Saaiplaas 5b

11-Dec-07

10-Dec-29

Saaiplaas 6

11-Dec-07

10-Dec-29

No. 23 (Central Plant)

11-Dec-07

10-Dec-29

No. 30a

11-Dec-07

10-Dec-29

No. 33b

11-Dec-07

10-Dec-29

No. 34a

11-Dec-07

10-Dec-29

Target Slimes Dam

225

12-Dec-13

11-Dec-26

Au, Ag, Cu, Fe, Ni, Bi, U, Pb, Zn

Pres Steyn 9 (Freddies 9)

226

4-Feb-10

3-Feb-40

Au, Ag, Cu, Fe, Ni, Bi, U, Pb, Zn

3.3Property Permitting Requirements

Free State Surface Operations has all the permits required to operate and to realise the current life of mine (“LOM”) plan reflected in the Mineral Reserve estimate.

The TSFs and WRDs are located within Harmony’s various mining rights. Harmony has all of the necessary surface access rights.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


Figure 3-4: Mineral Tenure of Free State Surface Operations


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

4Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

4.1Accessibility

The Free State Surface Operations are all accessible off the tarred R730 road between Welkom and Virginia (Figure 3-1). The area also has well-established rail links and a number of airfields within proximity.

4.2Physiology and Climate

The Free State Surface Operations are in an area with an average elevation of approximately 1,320m above sea level (“asl”). The area is relatively flat with an overall slope to the southwest. There are no prominent topographical landmarks in the area.

Free State Surface Operations are treating (and removing) existing TSFs and WRDs and are therefore restoring the topography to its pre-mining state.

The Free State Surface Operations are situated in the Free State, a semi-arid region with an annual rainfall of between 400mm and 600mm. Local thunderstorms and showers are responsible for most of the precipitation during summer, from October to March, with peak rainfall occurring in January. Hail is sometimes associated with thunderstorms.

January is the warmest month of the year. The temperature in January averages 19.2°C. July has the lowest average temperature of the year and is 7.7°C.

Free State Surface Operations are not restricted by climatic or seasonal occurrences.

4.3Local Resources and Infrastructure


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

5History

Section 229.601(b)(96) (5) (i-ii)

5.1Historical Ownership and Development

The Saaiplaas plant originally processed ore from Saaiplaas 1, 2 and 3 shafts. Saaiplaas 1 closed around 1980, Saaiplaas 2 around 1996, and Saaiplaas 3 around 2000. The Saaiplaas plant once also processed ore from the Erfdeel (now Masimong) shafts. With the decline of mining in the area, the plant was relegated to processing unmilled surface source material (waste) at a rate of 110 000tpm until July 2007. As all material currently processed by the plant is recovered by hydro-mining from old, desiccated slimes dams in the area, crushing or milling is not required. The ore-receiving silos were demolished in July 2007 when milling ceased.

Plant commissioning began for the Central Plant Reclamation in June 2017 with ramp-up to a capacity of 300,000t a month. Central Plant, which had previously processed waste rock dumps, was converted into a tailings retreatment operation during 2016 and started treating TSF material only in FY17.

Table 5-1: Summary of Historical Ownership Changes and Activities of Free State Operations


Year			Asset History Highlights
1954			Saaiplaas Plant was built.
1980			Saaiplaas 1 Shaft Closure & Expansion of Saaiplaas Plant (additional pachucas & filters).
1996			Saaiplaas 2 Shaft Closure.
2000			Saaiplaas 3 Shaft Closure.
2007			Saaiplaas plant ceased crushing section and started treating TSF material only.
2011			The rate decreases to 424ktpm to lengthen the LOM.
2016			Conversion of Central Plant to tailings retreatment operation.
2017			Central Plant start TSF processing TSF material only.

5.1.1Phoenix Project

Phoenix Project utilises Harmony’s Saaiplaas Gold Plant which was built in 1954. The plant was expanded in 1980 with the addition of a run-of-mine (“ROM”) milling section, additional pachucas and filters. While the old sections have been decommissioned and progressively demolished since the 1990s, the newer sections remain in operation. The plant, with a design capacity of 330ktpm, initially formed part of Anglo American Corporation Limited’s (“AAC”) Free State gold mining operations.

The original design life of the Phoenix slimes retreatment project was five years (to end 2011). The short operating life was due to the restricted capacity for the dumping of the residues generated at the planned processing rate of 500ktpm. This rate was decreased to 424ktpm from September 2011 to lengthen the LOM.

A major capital project was later undertaken to build a replacement TSF at St Helena 1, 2 and 3. Thereafter LOM could be re-extended.

5.1.5Central Plant Reclamation

Central Plant, which previously processed waste rock dumps, was converted into a tailings retreatment operation during 2016. The commissioning began in June 2017 with a ramp-up to capacity of 300ktpm by the end of 2018.

5.2Historical Exploration

Various drilling and sampling campaigns have been undertaken and are on record since around 2007 to determine the in-situ grade and gold recovery potential of the Free State TSFs. A drilling contractor was engaged to carry out the drilling and sampling at 1.5m intervals on the predetermined hole positions which were surveyed and marked on the TSF. ExplorMine Consultants (“ExplorMine”) were engaged to oversee the onsite drilling and sampling process to ensure that the procedure was correctly followed to ensure correct documenting of samples and limit any cross contamination of samples


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous Mineral Resource estimate for Mine Waste Solutions was declared as at June 2021 according to the SAMREC Code, 2016.

The previous Mineral Resource estimate is summarised in Table 5-2 for the TSFs and in Table 5-3 for the WRDs. The Mineral Resources are exclusive of Mineral Reserves and have been superseded by the current estimate prepared by Harmony in Section 11 of this TRS.

Table 5-2: Summary of the Previous Free State Surface Operations TSF Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)


METRIC
Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (g/t Au)	Gold Content (kg)
Measured	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	St Helena Project	82.788	0.27	22,487
	Free State Tailings	-	-	-
Sub Total / Ave. Measured		82.788	0.27	22,487
Indicated	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	St Helena Project	-	-	-
	Free State Tailings	-	-	-
Sub Total / Ave. Indicated		0.000	0.00	0
Total / Ave. Measured + Indicated		82.788	0.27	22,487
Inferred	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	St Helena Project	-	-	-
	Free State Tailings	15.459	0.19	2,937
Total / Ave. Inferred		15.459	0.19	2,937
IMPERIAL
Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	St Helena Project	91.258	0.008	0.723
	Free State Tailings	-	-	-
Sub Total / Ave. Measured		91.258	0.008	0.723
Indicated	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	St Helena Project	-	-	-
	Free State Tailings	-	-	-
Sub Total / Ave. Indicated		0.000	0.000	0.000
Total / Ave. Measured + Indicated		91.258	0.008	0.723
Inferred	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	St Helena Project	-	-	-
	Free State Tailings	17.041	0.006	0.094
Total / Ave. Inferred		17.041	0.006	0.094
Note: St Helena Project sources planned under Free State Tailings in current Mineral Resource estimate.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Table 5-3: Summary of the Previous Free State Surface Operations WRD Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)


METRIC
Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (g/t Au)	Gold Content (kg)
Measured	N/A	-	-	-
Indicated	N/A	2.310	0.48	1,109
Total / Ave. Measured + Indicated		2.310	0.48	1,109
Inferred	N/A	16.732	0.43	7,195
IMPERIAL
Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (oz/t Au)	Gold Content (Moz)
Measured	N/A	-	-	-
Indicated	N/A	2.546	0.014	0.036
Total / Ave. Measured + Indicated		2.546	0.014	0.036
Inferred	N/A	18.444	0.013	0.231

The previous Mineral Reserve estimate for the Free State Surface Operations was also declared by Harmony as at 30 June 2021, according to the SAMREC Code, 2016. Modifying Factors were applied to the Mineral Resource estimate to arrive at the Mineral Reserve estimate. The previous Mineral Reserve estimate is summarised in Table 5-4 for the TSFs. No Mineral Reserves were declared for the WRDs. These Mineral Reserve estimates have been superseded by the current estimate prepared by Harmony as detailed in Section 12 of this TRS.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Table 5-4: Summary of the Previous Free State Surface Operations TSF Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Operation / Project	Tonnes (Mt)	Gold Grade (g/t Au)	Gold Content (kg)
Proven	Phoenix Project	42.563	0.28	11,964
	Central Plant Reclamation	-	-	-
	St Helena Project	108.561	0.27	29,029
	Free State Tailings	-	-	-
Sub Total / Ave Proven		151.124	0.27	40,994
Probable	Phoenix Project	-	-	-
	Central Plant Reclamation	51.986	0.27	13,987
	St Helena Project	-	-	-
	Free State Tailings	571.678	0.22	127,701
Sub Total / Ave Probable		623.664	0.23	141,688
Total / Ave (Proved + Probable)		774.788	0.24	182,681
IMPERIAL
Mineral Reserve Category	Operation / Project	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	Phoenix Project	46.918	0.008	0.385
	Central Plant Reclamation	-	-	-
	St Helena Project	119.668	0.008	0.933
	Free State Tailings	-	-	-
Sub Total / Ave Proven		166.586	0.008	1.318
Probable	Phoenix Project	-	-	-
	Central Plant Reclamation	57.305	0.008	0.450
	St Helena Project	-	-	-
	Free State Tailings	630.167	0.007	4.106
Sub Total / Ave Probable		687.472	0.007	4.555
Total / Ave (Proved + Probable)		854.058	0.007	5.873
Note: St Helena Project sources planned under Free State Tailings in current Mineral Reserve estimate.

5.4Past Production

Free State Surface Operations, including Phoenix Project and Central Plant Reclamation, have reprocessed TSF material for 15 and five years, respectively. The previous five-year combined production results are presented in Figure 5-1 and Figure 5-2.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


Figure 5-1: Graph of Past Production – Tonnes and Grade

Figure 5-2: Graph of Past Metal Production


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii)

The material contained in the TSFs and WRDs originates from deep level gold mines mined by Harmony and its predecessors located near the towns of Welkom and Virginia.

The TSFs are man-made deposits, which arise from the processing of Witwatersrand gold reefs and deposition on surface of the tailings material. The WRDs are also man-made deposits which are comprised of consolidated low-grade rock deposited on surface.

6.1Regional Geology

Gold mined from Harmony’s deep level operations occurs within the Archean Witwatersrand Basin (Figure 6-1). The Witwatersrand Basin is an approximately 7,000m thick terrigenous sequence comprising mainly arenaceous and argillaceous, together with minor rudaceous, lithologies deposited in a fluvio-deltaic environment in the centre of the Archaean Kaapvaal Craton (Robb and Meyer, 1995).

The Witwatersrand Basin hosts the Witwatersrand Supergroup, which is subdivided into the basal West Rand Group (“WRG”) and overlying CRG (Robb and Robb, 1998). The WRG extends over an area of 43,000km2 and is up to 5,150m thick. It is sub-divided in into Hospital Hill Subgroup; Government Subgroup and Jeppestown Subgroup.

The CRG is up to 2,880m thick and covers an area of up to 9,750km2, with a basal extent of c.290km x 150km. It is sub-divided into the lower Johannesburg Subgroup and upper Turffontein Subgroup. These subgroups are separated by the Booysens Shale Formation. The CRG comprises coarse-grained fluvio-deltaic sedimentary rocks.

The major gold-bearing conglomerate reefs, including the ones which are the main source of the material deposited on the Harmony Free State TSFs and WRDs, are mostly confined to the CRG. The reefs are mined in seven major goldfields, including the East Rand, South Rand, Central Rand, West Rand, West Wits, Klerksdorp, Free State (Welkom), and Evander goldfields (Figure 6-1).

6.2Local Geology

The material contained in the TSFs and WRDs originates from Tshepong Mine, Phakisa Mine, Bambanani Mine, Joel Mine, Masimong Mine and Target 1 Mine. These mines are located within the Free State (Welkom) Goldfield on the western margin of the Witwatersrand Basin (Figure 6-1). A typical stratigraphic column for the Free State Goldfield is presented in Figure 6-2.

The mines extract narrow, generally shallow dipping tabular gold-bearing conglomerate reefs, namely the Basal, B, Elsburg (EA), Dreyerskruil and Beatrix reefs. The Basal Reef is the most important gold-producing reef horizon in the Free State Goldfield and is exploited at all mines except Target 1 and Joel. The reef is located at the base of the Harmony Formation, within the Johannesburg Subgroup of the CRG. It varies from a single pebble lag to channels of more than 2m thick. It is commonly overlain by shale, which thickens northwards.

The B Reef is part of the Spec Bona Member at the base of the Aandenk Formation, within the Turffontein Subgroup of the CRG. The reef is a highly channelised orebody located 140m stratigraphically above the Basal Reef. Because of its erratic nature, it has only been mined at Masimong, Tshepong, and the Target 2 and Target 3 mines. The Beatrix Reef is only exploited at Joel Mine. The reef is part of the Earls Court Member of the Aandenk Formation, within the Turffontein Subgroup of the CRG.

The Elsburg (EA) and Dreyerskruil conglomerates are mainly exploited at Target 1 Mine. These reefs occur within the Eldorado Formation of the Turffontein Subgroup, capping the CRG in the Free State Goldfield. The conglomerates form a wedge-shaped stacked package, comprising 35 separate reef horizons, often separated by quartzite beds.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


Figure 6-1: Geological setting of the Witwatersrand Basin


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


Figure 6-2: Stratigraphic Column of the Free State Goldfield

6.3Property Geology

6.3.1TSF

The TSF material is the residue product of the process of crushing, milling and processing of the gold-bearing conglomeratic reefs described above. They are man-made deposits and are not the result of natural sedimentary processes. The TSFs are typically deposited by a ring dyke day wall paddock method. The result is that the TSFs are comprised of horizontal or near-horizontal layers.

The typical particle size within the TSF will depend on the fineness of the comminution process in the plant that generated the tailings, but they are generally comprised of unconsolidated, fine to very fine-grained material (typically 75% passing 75 microns, with slightly coarser material on the outer walls and finer material towards the TSF basin).


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

The grade of the TSFs is a function of the grade of the ore source (reef), and the processing efficiency at the time. These parameters have both varied over time, and hence the grade of the TSFs varies accordingly.

The mining method applied for the deposits does not typically allow for partial or selective mining, and hence the grade estimation methodology tends to be focussed on achieving a robust estimate of the mean grade.

The reader should note that a stratigraphic column through the TSF (or WRD) would be meaningless as it is a man made, uniform structure. The stratigraphic column provided in Figure 6-2 is related to the ore mined to produce the TSFs (or WRDs).

6.3.2WRDs

The WRD material is derived from the following underground workings:

•minor reef intersected while accessing the primary reef;

•gold-bearing reef within small fault blocks that were exposed by off-reef development; and

•cross-tramming of gold-bearing reef material to the waste tips.

The WRDs are man-made deposits and are not the result of natural sedimentary processes. The WRDs are unconsolidated rock piles, in which the angle of the slope is determined by the angle of repose. The particle size is variable but can range from gravels to large boulders.

The WRDs are typically deposited by a conveyer belt system or by trucks. The style of deposition can result in internal layering, but the grades are seldom sufficiently variable to model – and as with TSFs, the grade estimation methodology is focussed on achieving a robust estimate of the mean.

6.3Mineralisation

The most significant mineral in the TSFs and WRDs is quartz, which is above 60% of the bulk mineral composition. The gold predominantly occurs in pyrite. Other minerals identified include silver, copper, iron oxide, nickel, bismuth, uranium, lead and zinc from the Basal, B, Elsburg (EA), Dreyerskruil and Beatrix conglomerates.

6.4Deposit Type

The TSFs are tabular, man-made deposits of previously treated reef material from conglomeratic reefs. The WRDs are tabular, man-made deposit of previously uncrushed and untreated, low grade material.

6.5Commentary on Geological Setting, Mineralisation and Deposit

The QP is of the opinion that the source and characteristics of the material deposited on the TSFs and WRDs are well understood.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

7Exploration

Section 229.601(b)(96) (7) (i-vi)

Various auger drilling and sampling campaigns have been undertaken and are on record from 2007 to 2020. Recent drilling of nine TSFs (including Saaiplaas Complex, FSS1, FSS4, FSN6, FSS6, FSS7) began in January 2017 and was completed February 2020.

WRDs cannot be explored using drilling as they are comprised of unconsolidated rock. Instead, they are sampled around the periphery using pitting. The reader is referred to Section 8.2.1 for a summary of the sampling methods and approach.

7.1Mapping Surveys

No mapping is undertaken of TSFs nor WRDs because they are man-made residue deposits.

7.2Topographic Surveys

All TSFs and WRDs are surveyed to obtain the volume of the residue deposit. They are surveyed by Harmony’s internal survey department.

Light detection and ranging (“LiDAR”) surveys are not typically used to inform the Mineral Resource estimates but may be undertaken on an ad hoc basis to determine the volume if required.

All the TSFs and WRDs are surveyed on a monthly (TSF) and annual basis (Flying). The surveys are conducted using a Total Station and Rovers, to collect global positioning system (“GPS”) data. These surveys are used both to inform the volume of the deposits for Mineral Resource estimation, and they are used to reconcile the monthly addition and depletion records, once mining takes place.

7.3TSF Surface Drilling Campaigns, Procedures and Results

A total of 248 drill holes were drilled into nine TSFs (including Saaiplaas Complex, FSS1, FSS4, FSN6, FSS6, FSS7) between January 2017 and February 2020. The purpose of the drilling was the determination of grade estimate. The location of the auger drilling undertaken on these nine TSFs is presented in Figure 7-1.

7.3.1Drilling Methods

Similar procedures were followed for historical and recent drilling of all the TSFs. The drilling of the TSFs was undertaken using a portable hydraulic auger drilling machine, which uses a rotating spiral enclosed in a 50mm nominal core barrel. Drilling is conducted vertically from the top of the TSF to intersect between 1.0m and 1.5m into the underlying strata. All drilling of the TSFs was undertaken by an independent contractor, SGS South Africa (Pty) Limited, who sub-contracted Dump and Dune (Pty) Limited to do the physical drilling. ExplorMine were engaged to oversee most of the recent drilling and sampling campaigns to ensure adherence to the drilling and sampling procedures.

The drill hole spacing is determined based on the purpose of the drilling. Initial drilling is undertaken on newly acquired TSFs or TSFs with no historical data. This is classified as Mineral Resource estimation drilling and is used to determine the average grade of the deposit.

Grade control drilling is applied during mining to increase the level of confidence in the Mineral Resource estimate. The grade control drilling uses the same drilling methods as described above. The drill hole spacing for the various types of drilling is shown in Table 7-1.

Table 7-1: TSF Drilling Grid Spacing


Drilling Purpose	Horizontal Direction (Xm, Ym)	Vertical Direction (Zm)
Exploration (Mineral Resource)	250m x 250m	1.5
Grade Control	100m x 100m or 50m x 50m	1.5
Geo-metallurgical Testwork	200m x 200m or every second drillhole of Mineral Resource grid (150m)	6m composite


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Figure 7-1: Location of Drilling at Saaiplaas Dams, FSN6, FSS7, FSS6, FSS4 and FSS1
Source: ExplorMine (2020)


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Drill “cores” or samples are extracted at 1.5m intervals. Three different lengths of the rotating spiral core barrel and extension rods of 1.5m, 3.0m and 4.5m are connected as the drill hole depth increases vertically downwards to maintain the 1.5m sample extraction.

The TSF auger drilling process is undertaken according to the internal best practice, as outlined in Harmony procedure document (Slimes Dam Drilling, Sampling Preparation & Sample Handling Procedures – FSTUP). This standard describes the full process including drilling, logging and sampling. The drilling methodology and orientation is dictated by the fine-grained nature of the deposit, and the near-horizontal layering.

An audit process is conducted by an appointed external company (such as ExplorMine) and / or by the Harmony QPs on a regular basis during the drilling exercises, typically once a week, to ensure good quality sampling takes place.

7.3.2Collar and Downhole Surveys

Drill hole collars are planned by the geologist and then pegged on the TSFs by the internal surveyor using a handheld GPS with an accuracy of 0.5m to 1.0m. The LO27 survey grid system is used to record the coordinates.

No downhole surveys are carried out on any of the drill holes due to the fact that hole closes quicker during sample extraction. In addition, auger holes are short and as a result deviations are unlikely.

7.3.3Logging Procedure

The product of auger drilling is a 1.5m sample collected in a plastic chute as the spiral is removed from the auger barrel. This is immediately transferred into a sample bag. The sample bags are sealed and labelled with unique sample numbers.

The samples are logged at the drilling site, by the responsible geologist. The information captured on the sample log sheet includes the unique sample number, sample mass, date collected, spatial location (survey collar) and a description of the sample including colour, mineral content and grain size.

7.3.4Drilling Results

With a high number of samples having been taken to date, the results are too voluminous to be reported in this report. The results have, however, been included into the geological modelling and Mineral Resource estimation process.

7.3.5Sample Recovery

While the TSF auger drilling process, with the spiral in the core barrel, is designed to maximise the sample recovery, obtaining good sample recoveries requires careful drilling and sample handling. The QP also notes that the core barrel hold the TSF well unless the material is extremely wet and runny. When the sample is wet and sticky, but not runny, the tailings material is removed off the spiral in large pieces of “putty-like” samples.

Sample recovery is recorded by measuring the weight of each sample extracted (3.0kg – 4.5kg). A re-drill is required if the weight of the samples, except the last sample intersecting the underlying strata, is not within the expected range.

7.3.6Sample Length and True Thickness

Samples are taken every 1.5m down the auger hole. The auger holes are drilled vertically into the TSF and therefore the drill length equals the true thickness.

7.4Hydrogeology

The TSFs were hydraulically deposited and allowed to consolidate, and the water was decanted. The control of the deposition process has resulted in stable structures which still contain varying amounts water. Six of the TSFs are currently in active deposition phase and the phreatic level within these TSFs is well monitored. The remaining 14 TSFs are dormant, and as such there is no specific active monitoring of the phreatic level in these TSFs.


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7.5Geotechnical Data

No geotechnical investigations have been undertaken for the TSFs and WRDs. However, geotechnical compliance of the TSFs is monitored by independent consultants, Jones & Wagner Engineering and Environmental Consultants.

7.6Commentary on Exploration

In the QP’s opinion:

•the drilling and sampling methodology in use for Harmony’s Free State TSFs has been developed specifically for the challenges posed by these deposits and is aligned with industry best practice. An internal protocol is in place, and the drilling components are applied by contractors who are experienced in this specific methodology;

•the drill hole samples are deemed to be representative as they provide both vertical and horizontal coverage of each TSF;

•drill holes are positioned at regular intervals across the TSF;

•the data spacing, density and distribution is sufficient to support the estimation of Mineral Resources for the various TSFs; and

•WRDs are not explored using exploration methods due to their unconsolidated nature.


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8Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

This section summarises information relating to the sample preparation on site through to the laboratory preparation and analysis.

8.1TSFs

Sampling is carried out in accordance with the Harmony’s internal sampling procedure guidelines which has been in place since Harmony took over the operations.

8.1.1Sampling Method and Approach

Samples are collected at 1.5m increments, with each weighing approximately 3.0kg-4.5kg. As noted in Section 8, the samples are collected in a plastic chute as the spiral is removed from the core barrel, and immediately transferred into sample bags. No sub sampling occurs in the field.

The sample bags are sealed and labelled with unique sample numbers prior to dispatch at the designated laboratory for analysis. A sample log sheet with the TSF name, drill hole identification numbers and the unique sample numbers is also generated for laboratory dispatch. Samples from one drill hole constitute a batch. The number of bagged samples was reconciled with the number of logged samples. Each batch was then secured in a larger batch sample bag for delivery to the designated laboratory.

8.1.2Density Determination

There is no density testing for the TSFs, however, an industry-based density of 1.45t/m3 is currently used.

8.1.3Sample Security

At the end of each drilling shift, the samples are delivered to the designated laboratory for analysis. However, in instances where they cannot be delivered to the designated laboratory on the day they are collected, they are temporarily kept in secure storage facility at Harmony’s main core yard, located in Welkom.

The collection and transportation of the samples requires a gold-bearing material permit which is issued by the security department. The permit accompanies the samples to the designated laboratory at all times. A signed waybill is also required for transporting samples. The samples are counted upon arrival at the designated laboratory to ensure that they correspond to the total number on the security waybill and log sheet. Any irregularity will be recorded and communicated with the sample originator before the samples can be processed.

8.1.4Sample Storage

After analysis, samples are stored for a period of 60 days by the laboratory. The samples are then delivered to the respective plant for permanent storage and future usage on other projects.

8.1.5Laboratories Used

Samples collected between 2017 and 2019 were primarily sent to the external Set Point Laboratories in Isando. Set Point Laboratories is a South African National Accreditation System (“SANAS”) accredited analytical laboratory with facility accreditation number T0223 for amongst others, gold with fire assay and Inductively Coupled Plasma (“ICP”) finish. No umpire (secondary) laboratory was utilised.

The analysis of samples collected from the infill drilling conducted on the Saaiplaas 3 and FSS6 TSF’s in February 2020 was completed by the external SGS Performance Laboratories (“SGS Randfontein”) in Randfontein. SGS Randfontein subcontracted Maelgwyn Mineral Services Africa, who completed the metallurgical testing for these drill holes. The SGS facility is a SANAS accredited analytical laboratory with facility accreditation number T0265.

Samples from the FSS6 drilling programme conducted in 2010 / 2011 were prepared and analysed at the SGS Performance Laboratory in Allanridge, Free State, with SANAS facility number T0385. This facility has since closed.

8.1.6Laboratory Sample Preparation Procedures

The sample preparation procedures for each laboratory used are summarised as follows:

•Set Point Laboratories:


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•samples requiring drying were emptied into a clean drying dish together with its label and placed into the drying oven with the temperature controller not exceeding 110 °C. Each sample’s weight was captured into the Laboratory Information Management (“LIMS”) system;

•samples are then split using a Jones riffle splitter. The remainder of the sample (coarse reject) is returned to the original sample bag, to be returned to the client. All splitters and collection trays are cleaned between sample splitting using compressed air; and

•each sample is milled for five minutes according to the mill timer in a Labtech Essa LM2 mill, to achieve a fineness of 90 % passing 106 microns. After milling, the contents of the bowl are emptied onto a brown paper sheet or clean sample dish, then transferred into its sample bag. After each sample being processed, the equipment is cleaned using compressed air and then clean water where applicable.

•SGS Randfontein:

•samples were received wet, and each sample was laid out to individually air dry. The samples, once dry were delumped by screening through a 1mm Rolaghan screen. Following delumping, the samples were split into four or five equal portions for assay, metallurgical testwork, duplicate sample for analytical quality procedure and reference sample storage;

•each assay split was dried in a drying oven with the temperature controller not exceeding 60 °C. Each sample was then weighed, and the weight was captured into the LIMS. The dried samples were split using a Jones riffle splitter. The remainder of the sample (coarse reject) was returned to the original sample bag, to be returned to Harmony; and

•each subsample was milled for 5 minutes according to the mill timer in a Labtech Essa LM2 mill, to achieve a fineness of 90 % passing 106 microns. After milling, the contents of the bowl were emptied onto a brown paper sheet or clean sample dish, then transferred into its sample bag.

8.1.7Assaying and Analytical Procedures

The sample assay and analytical procedures for each laboratory used are summarised as follows:

•Set Point Laboratories:

•samples were assayed for gold by fire assay with ICP spectrometry finish;

•a tray of crucibles was prepared by adding a scoop of lead flux to each crucible. 50g of each pulp was weighed and transferred to its dedicated crucible containing the flux. The sample and flux were mixed in the crucible. Silver nitrate aqueous solution was added to each crucible mixture. The tray of crucibles was loaded into a furnace at 1,100 °C, for 1 hour after which the charge was poured into iron moulds;

•after cooling, the lead button was removed, cleaned of adhering slag and transferred to a button tray while maintaining the sample sequence. The lead buttons were placed into pre-heated cupels in a cupellation furnace at 1,050°C for 1hr;

•resulting oxidised lead was absorbed into the cupel and the gold and silver remained behind on the surface of the cupel in the form of a bead, called a prill. After cooling, the prill was removed from each cupel and transferred to marked test tubes. Nitric acid was added, and the tubes microwaved for 20min. Hydrochloric acid is added, and the microwave process is repeated. The silver became present as a white silver chloride precipitate, the gold was in solution; and

•

•an internal standard solution was added to each tube and then each tube was made to 5ml volume using deionised water. The gold was determined by ICP spectrometry.

•SGS Randfontein:

•samples were assayed for gold by fire assay with Atomic Absorption Spectroscopy (“AAS”) finish (internally referred to as FAA35V);

•tray of crucibles was prepared by adding a scoop of lead flux to each crucible. 100g of each pulp was weighed and transferred to its dedicated crucible containing the flux; and


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•sample and flux (flour / nitre and silver) were mixed in the crucible. The fused samples were poured and cooled. The button was deslagged, pounded into a cube and cupelled until the dore bead was formed. The bead / prill was completely dissolved in aqua regia (3 : 1 hydrochloric acid to nitric acid). The resulting solution was analysed using AAS. Data was transferred to LIMS report with secure audit trail.

8.1.8Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

In terms of the sample acquisition, one of the key QAQC protocols included is the regular supervision of the drilling contractor by a Harmony appointed representative (ExplorMine). The independent supervision ensured, as far as possible, that contamination between consecutive samples was kept to a practical minimum. The supervision also ensured that errors in recording sample labels and sample logs were avoided.

The QAQC was undertaken as follows:

•field QAQC:

•each TSF sample batch is also submitted to the laboratory with QC material to verify accuracy and precision of the primary sample results. The QC material include milled blanks (silica sand pulp), pulp duplicates and standards or certified reference materials (“CRM”). Field duplicates were randomly sourced from returned sample pulps from a previous TSF drilling campaigns and inserted into the batches; and

•a list of the QC samples submitted by Harmony to the external laboratories together with the primary samples collected in recent drilling campaigns is presented in Table 8-1.

Table 8-1: List of Harmony Analytical Quality CRM


CRM ID	Gold Certified Value	Second Standard Deviation (Au)
AMIS0210	1.260	0.160
AMIS0307	0.430	0.050
AMIS0377	0.250	0.030
AMIS0378	0.176	0.020
AMIS0379	0.323	0.021
AMIS0405	0.001
AMIS0484	0.001
AMIS0515	0.510	0.050
AMIS0644	0.151	0.015
Silica Sand	<0.001

•laboratory QAQC:

•the laboratories also use their own CRMs and blank samples and conduct duplicate analysis, instrument QC, and participate in Round Robin and Proficiency testing schemes to ensure the reliability of the results produced; and

•laboratory processes are regularly subjected to audits, which include sample receiving to results reporting. A list of the QC samples used by Set Point Laboratories in presented in Table 8-2. There is no record of SGS Randfontein internal QC samples.


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Table 8-2: List of Set Point Laboratories Analytical Quality CRM


CRM ID	Gold Certified Value	Second Standard Deviation (Au)
AMIS0146	Unknown	Unknown
AMIS0208	1.380	0.100
AMIS0261	1.120	0.100
AMIS0336	0.100	0.010
AMIS0337	0.660	0.060
AMIS0410	0.085	0.020
AMIS0412	5.740	0.480
AMIS0525	8.040	0.770

8.1.9Sampling and Assay QAQC Results

The field QAQC results are summarised as follows:

•a range of CRMs were sourced from the African Minerals Standards (“AMIS”) and inserted into each primary sample batch by the responsible geologist. The CRM results were used to identify any issues with specific sample batches, and biases associated with the laboratory to which primary samples are sent;

•control charts are typically plotted to assess performance of the CRM results. The control limit used to assess performance of the CRM results is two standard deviations (“SD”) from the recommended values. The results are questionable if the SD is between two and three, and unacceptable if beyond three standard deviations. Whenever the CRMs fail the limits, the entire primary sample batch is re-assayed;

•in general, all the CRM materials appear to have performed relatively well in terms of analytical results versus accepted values. However, in several instances, the CRM’s have analyses that fall outside of the 3rd standard deviation. In all these cases, the lower 3rd standard deviation is exceeded. Some of these instances may be the result of mislabelled / allocated CRM labels;

•the generally good to fair performance of the external Harmony CRMs indicates a fair degree of accuracy and a moderate level of repeatability in terms of the Set Point Laboratories gold analytical methods. CRMs submitted to the SGS Laboratory, which included AMIS0515 and AMIS0644, did not provide ideal results. It is suspected that at least some of these poor results may be the result of mislabelling of the CRMs in the original sample submission;

•in general, the analyses of the CRM’s submitted by Harmony in the sampling stream indicate a negative bias (lower analyses than certified value), with the exception of AMIS0377 which has a marginally higher average analyses with respect to the accepted value;

•the results of the milled blanks are used to identify any contamination of primary samples during the laboratory preparation process. Control charts are produced using the QC sample results in order to demonstrate performance of the laboratory’s sample preparation and analytical procedures. The blank samples are randomly inserted within the primary sample batch and only the sample originator is able to track them. The blank sample limit is <0.001. If the blank sample results for the specific tray of samples are above the limits, that particular tray of samples is subjected to repeat analysis;

•Harmony used AMIS0405 as external blank reference material to test levels of laboratory analytical contamination. The Harmony blank material assays returned by Set Point Laboratories were all at trace gold values during the first stage (2018) of the analytical work, however during the second phase (2019) of the analytical work a large proportion of the gold analyses returned values higher larger than the detection limit;

•certified blank material submitted to the SGS Laboratory did not show any outliers; and

•pulp duplicates are submitted to monitor precision of the analytical methods. Duplicate assays were conducted by Harmony on a random 4% of pulps analysed by Set Point Laboratories. The pulps were selected from a previous TSF drilling campaign. ExplorMine were only able to complete a limited analysis of the results of the pulp duplicates as the results of the bulk of the original pulp analysis were not available.


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The laboratories QAQC results are summarised as follows:

•internal Set Point Laboratories CRMs or blank samples were assayed every batch of primary samples. The CRMs were sourced from AMIS with accepted values. These CRMs samples are also fluxed and included in the sample batch trays;

•performance of the Set Point Laboratories CRMs was assessed using the Levey-Jennings plots. The CRMs all performed well within acceptable limits and demonstrated both accuracy and repeatability of the gold analyses. Although results from the all the CRM analyses may indicate that the Set Point Laboratories analyses are slightly lower than the certified means;

•Set Point Laboratories uses clean quartz as a laboratory blank reference material to clean the pulverisers after each batch of samples to minimize contamination. This material is analysed as part of the routine QAQC protocol. Blank material assays returned by Set Point Laboratories were all at trace gold values; and

•duplicate assays were conducted on a random 5% of pulps analysed by Set Point Laboratories. The results presented indicated a good correlation between the original Set Point Laboratories gold assay and the corresponding Set Point Laboratories gold duplicate analysis.

8.2WRDs

8.2.1Sampling Method and Approach

Samples from the WRDs are collected from the periphery of the dumps and from the conveyor belts on route to the processing plant. This peripheral or face sampling is primarily used for Mineral Resource estimates, while conveyor belt sampling informs grade control.

Face sampling is undertaken according to the internal best practice, using Harmony’s Standard for Broken Ore Plant Sampling, and an internal best practice guideline for rock dump sampling.

Face sampling involves digging a pit on a predetermined grid on the dumps. A TLB is used to dig so that a sample can be as representative as possible. Battery size boxes are used and a sample of about 25 kg is taken and 3 – 5 boxes a taken per sampling point. The boxes are then labelled accordingly for easy referencing of the results.

The samples are then dispatched to the laboratory for analysis.

Belt sampling of the WRD material is undertaken by means of mechanical stop belt samplers on the feed belts at the metallurgical plants. A 1ton bin is used and is filled or if not filled, it will be as per the amount that was taken for the day. The bin is then labelled accordingly for easy referencing of the results. The bins are then dispatched to the laboratory for analysis.

8.2.2Density Determination

Bulk density measurements for the WRDs are verified on a continuous basis.

The relationship between surveyed volume and tonnes treated is used to calculate bulk density, which ranges between 1.60t/m3 and 1.90t/m3. Harmony’s practice is to use an average 1.67t/m3.

Prior to initiating mining, the Mineral Resource for the WRD would be estimated using an assumed bulk density, which would be informed by the same relationship, from WRDs with similar sources.


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8.2.3Sample Security

At the end of each drilling shift, the samples are delivered to the designated laboratory for analysis. However, in instances where they cannot be delivered to the designated laboratory on the day they are collected, they are temporarily stored in an access-controlled facility at the respective plant (Saaiplaas or Central Plant) and delivered following day.

8.2.4Sample Storage

After analysis, samples are stored for a period of 60 days by the laboratory. The samples are then delivered to the respective plant for permanent storage and future usage on other projects

8.2.5Laboratories Used

WRD Samples are sent to the internal metallurgical laboratory located in the vicinity of the Harmony Free State operations. The laboratory is ISO/IEC 17025:2017 accredited by SANAS for gold and uranium oxide analysis. The SANAS accreditation number for the laboratory is T0520, effective 29 July 2020 and expiring 25 June 2022.

8.2.6Laboratory Sample Preparation Procedures

Upon receipt, each sample is weighed and dried at 105 °C ±5°C if wet. The sample is then crushed using a waste crusher and two opposite drums amounting to 20% of the received sample, depending on the sample weight, are taken. The sample is then crushed again to pass 75% using a 2.36mm sieve. The sieved sub-sample is then split using a riffle splitter to obtain a 500g sub-sample, which is milled to pass 85% at 75μm. After milling, the sub-sample is transferred into a sample paper bag which is labelled to indicate the sample and job numbers. The paper bag is then packed in labelled box and accompanied by a sample log sheet.

8.2.7Assaying and Analytical Procedures

All samples are assayed for gold by fire assay with AAS finish. Each aliquot is mixed with a flux into a fire clay crucible. The resultant mixture is then fused for an hour at high temperature furnace. During fusion process, the mixture becomes liquid as it is heated. The litharge in flux is changed into tiny drops of molten lead. These tiny drops of lead sink through the liquid fusion and collect or “soak up” the tiny particles of gold as they fall. At end of fusion time all the lead is at the bottom of the crucible. When the fusion is poured into mould the lead and Au sink to the bottom of the mould and form the cone-shaped button. The solid mixture inside the mould undergoes a de-slagging process, whereby waste and lead button are separated.

The resultant lead button is taken for cupellation process. During cupellation, lead is oxidized to molten litharge, which wets the inner surface of the porous cupel and absorbed. The molten precious metals e are not absorbed. They remain in the cupel and cool to form a small bead or prill.

The prills for low grade samples are dissolved with aqua regia and the final solution is measured onto the AAS. The prills for other samples are taken for parting process. During parting process, the surface area of the prill is increase by hammering the prill and resultant flat prill is digested with acid on the hotplate. During digestion silver is removed from the prill and only gold remains in the prill. The final prill is weighed to determine the amount of gold in the sample.

The X-ray fluorescence (“XRF”) method is used to analyse for uranium oxide.

8.2.8Sampling and Assay QC Procedures and QA and Results

WRD samples are not submitted to the laboratory with any QC material. The QP relies on the laboratory’s internal QAQC procedures to verify accuracy and precision of the primary sample results.


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The laboratory’s procedures include the insertion of CRMs or standards, blanks and duplicates or repeat analysis into the primary sequence and is described as follows:

•Standards:

•the laboratory sources a range of CRMs from AMIS;

•if results of any of the CRMs fall outside two standard deviations of the expected value for that particular CRM, they are deemed to have failed. Portions of the batches that fail this criterion are queried with the laboratory and those samples are re-assayed;

•the results of the performance of laboratory CRMs analysed to date are summarised in Table 8-3;

•control charts are regularly plotted for each QC sample. Results demonstrating the performance of pulverizer efficiency indicates that out of a total of 91 grading, 89 or 98% passed and only 2 or 2% failed; and

•the control chart demonstrating the performance of the Preparation Plant, out of a total 53 gradings, a 100% grading pass was achieved.

Table 8-3: Summary of Laboratory Standard Results

CRM ID

Target Value (mg/kg)

Mean (mg/kg)

Bias (%)

Expected SD

Laboratory SD

% Relative SD

Average Z-Score

Bias Level

AMIS782

4.820

4.840

0.350

N/A

0.323

N/A

AMIS764

30.530

31.060

1.710

N/A

1.810

N/A

AMIS647

0.170

0.181

6.170

N/A

0.019

N/A

8.3Commentary on Sample Preparation, Analyses and Security

In the QPs opinion:

•samples are collected at regular intervals across both the vertical and horizontal extent of each TSF. Samples are therefore representative of the deposit and adequate for use in the estimation of Mineral Resources and Mineral Reserves;

•where the sample material is dry or moist (putty-like), the levels of contamination are negligible and are not likely to have a significant impact on the Mineral Resource estimate;

•samples are only collected from the surface of WRDs, at regular intervals, due to their unconsolidated nature. Although samples are only representative of the surface, additional belt samples are taken during the mining process to reconfirm the original estimates. Therefore, the samples are sufficiently representative for use in Mineral Resource and Mineral Reserve estimation;

•the sample preparation, security and analytical procedures followed for gold grade determination are adequate;

•the current procedure used to determine bulk densities is adequate for the type of material found on the WRDs;

•the use of an industry standard density for the TSFs is less than ideal, however the densities are continuously monitored during mining, whether any adjustments being made thereafter;

•the assay methods are suitable for both TSF and WRD material types and grade ranges; and

•the results of the QAQC assessment have been appropriately addressed to ensure that the assay results of the primary samples are adequate for Mineral Resource and Mineral Reserve estimation.


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9Data verification

Section 229.601(b)(96) (9) (i-iii)

9.1Databases

All primary data for the TSFs is electronically captured in Microsoft Excel spreadsheets from descriptive paper log sheets. The logs recorded sample identity numbers, from – to depths, material descriptions and sample ticket numbers. The captured data is verified by the QP. Backup data is stored in a limited access folder on the Harmony server.

All primary data for WRDs is also captured in Microsoft Excel spreadsheets which are stored in an access restricted folder on the Harmony server.

9.2Data Verification Procedures

All inputs to the drilling and sample database are verified by the Senior Evaluator. Laboratory assay results are verified using internal QC material that are sent to the designated laboratory for analysis together with the primary samples analysed. The accepted assay results are also verified with the sample list submitted for analysis and then captured into the sample database.

The database verification procedures conducted by the QP prior to Mineral Resource estimation included checking for the following:

•overlapping drill hole and sample intersections;

•missing drill hole and sample intervals;

•existence of any outlier assay values; and

•the TSF drilling, sampling, survey and assay files are loaded onto DatamineTM and the spatial location of the drill holes are verified.

9.3Limitations to the Data Verification

The QP did not encounter any limitations during the data verification process. Any drill hole collars which had to be altered for practical field reasons, were resurveyed at the completion of the drilling operations. Collar data was supplied in LO27 format with an X and Y collar only. The Z collar or elevation was obtained by projecting collar point data onto the digital terrain model (“DTM”) or wireframe constructed in DatamineTM.

9.4Comment on Data Verification

The QP is of the opinion that the database is suitable for TSF and WRD Mineral Resource and Mineral Reserve estimation purposes. The database is auditable, and access is limited to authorised personnel. Any changes made can be tracked by the administrator.


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10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

No metallurgical testwork has been carried out.


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11Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

Mineral Resources have been estimated for the TSFs and WRDs using the methods described in the sections to follow.

11.1TSFs - Mineral Resource Estimation Methods

Mineral Resource estimation is carried out for the 42 TSFs located Harmony Free State operations. There was no geological modelling of the TSFs, as they are man-made surface deposits. Only three dimensional (“3D”) wireframing and block modelling was carried out using DatamineTM.

The Mineral Resources were modelled and / or estimated between 2007 and 2020 using either 3D wireframe modelling and grade interpolation or weighted averages (Table 11-1). Harmony has relied on independent consultants, ExplorMine, for the modelling of selected TSFs. The sections to follow describe the interpolation methods used to estimate the grade.

Table 11-1: Summary of Mineral Resource Estimation Methods and Company

Operation / Project

Surface Deposit ID

Grade Estimation Method

Date

Responsible Company

Phoenix Project

Brand A (PB Dam A)

Weighted average

No. 21 (H3)

Weighted average

FSS6

Interpolation

2020

ExplorMine

Central Plant Reclamation

FSS3

Weighted average

FSS5

Weighted average

Free State Tailings

FSN6

Interpolation

2020

ExplorMine

No. 32

Interpolation

2010

FSTUP study

FSS1

Weighted average

2020

ExplorMine

FSS2 east and west

Weighted average

2007

Harmony

FSS4

Interpolation

2020

ExplorMine

FSS7

Interpolation

2020

ExplorMine

FSS8 east

Weighted average

2008

Harmony

FSS8 west

Weighted average

2008

Harmony

Brand D (PB Dam D)

Weighted average

2007

Harmony

Saaiplaas 1

Interpolation

2020

ExplorMine

Saaiplaas 3 and 2

Interpolation

2020

ExplorMine

Saaiplaas 5b

Interpolation

2020

ExplorMine

Saaiplaas 6

Weighted average

No. 23 (Central Plant)

Weighted average

2014

Harmony

No. 30a

Weighted average

2007

Harmony

No. 33b

Interpolation

2020

ExplorMine

No. 34a

Weighted average

2007

Harmony

Target Slimes Dam

Weighted average

2008

Harmony

Pres Steyn 9 (Freddies 9)

Weighted average

2010

Harmony

11.1.1Geological (Sampling) Database

The Mineral Resource estimate is based on historical and recent auger sampling results obtained up to June 2022. The following validated datasets were imported into DatamineTM:

•auger drill hole collar coordinates;

•sample logs; and

•gold and uranium assays.

All drill holes were desurveyed in DatamineTM. The desurvey results were checked for errors including duplicate values, sample from-to overlaps and sample from-to gaps.


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The gold (AUGT) field was also checked for zero and null values. All gold analyses returned as “trace values” from the analytical laboratory, were set to half detection limit (0.005g/t for Set Point and 0.01g/t for SGS).

11.1.2Global Statistics

Descriptive statistics were used to analyse the gold grade distribution in all TSFs, as well as to identify outliers. Histograms and statistics of the raw data were calculated for each TSF. The Coefficient of Variation ("COV"), calculated by dividing the standard deviation with the mean, gives a measure of the variability of the data. A high COV (>1) represents highly variable or highly skewed data, which may require some form of capping of extreme values to lower the COV to a more reasonable value (c.1). The global statistics of the TSFs modelled in July 2020 are presented in Table 11-2.

Table 11-2: Global Statistics for Recently Modelled TSFs


TSF ID	No. Samples	Minimum (g/t Au)	Maximum (g/t Au)	Mean (g/t Au)	Variance	SD (g/t Au)	COV
Saaiplaas 1	285	0.080	0.480	0.190	0.0045	0.0671	0.353
Saaiplaas 2	467	0.000	0.740	0.232	0.011	0.106	0.456
Saaiplaas 5A	267	0.005	0.550	0.182	0.004	0.036	0.198
Saaiplaas 5B	276	0.060	0.890	0.203	0.012	0.062	0.305
FSS1	291	0.070	0.750	0.209	0.007	0.082	0.392
FSS4	686	0.090	1.000	0.244	0.007	0.084	0.344
FSN6	1,031	0.005	0.570	0.239	0.004	0.066	0.276
FSS6	447	0.005	0.570	0.239	0.004	0.066	0.276
FSS7	878	N/A	N/A	N/A	N/A	N/A	N/A
Total	4,628

The assay values for each TSF drill hole showed very low statistical variability from the mean (Table 11-2). They also showed an average of approximately 2% difference from the true mean to the geometric mean of both the gold and uranium values.

11.1.3Compositing

The drill holes were not composited. The 1.5m sampling interval was used for the estimation process.

11.1.4Capping

The gold grade for the 1.5m sample lengths were plotted on cumulative coefficient of variation (“COV”) and cumulative probability plots to determine if any capping or cutting of the data was necessary. The data appeared to be near-normally distributed, with low COVs. Outliers were detected in several of the datasets and gold grades were capped to selected values (Table 11-3).

Table 11-3: Summary of Gold Grade Outliers and Capping for TSFs


TSF ID	No. of Samples	No. of Outliers	Capped Gold Grade (g/t Au)
Saaiplaas 1	285	N/A	N/A
Saaiplaas 2	467	2	0.74
Saaiplaas 5A	267	N/A	N/A
Saaiplaas 5B	276	1	1.00
FSS1	291	2	0.75
FSS4	686	3	1.00
FSN6	1,031	3	0.57
FSS6	447	2	0.47
FSS7	878	1	0.82
Total	4,628	14


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11.1.5Variography

Reliable variograms for each of the modelled TSF could not be generated due to insufficient number of samples generated from the drilling campaigns.

11.1.63D Model

Two wireframes or 3D DTMs were constructed in Datamine™ Studio for each of the TSFs namely a lower and an upper surface. The wireframes were verified to check for errors and duplicate triangles. A lower “skirt” extending 20m down was constructed at the basal edge of each TSF to ensure the TSF could be cut effectively on the topographic wireframe.

As no DTM data was available for the construction of the original topographic surface, the topographic wireframe was constructed using a combination of end depths recorded for the drill holes (where drill holes intercepted soil) and survey points from the TSF DTMs which corresponded with the topography at the outer edges of the TSFs.

The upper TSF surface wireframe and topographic wireframes were merged to generate closed wireframe volumes for each TSF. For the Saaiplaas 1, 3 and 5A and 5B TSFs, additional strings were utilised to delineate the limits of each TSF as Saaiplaas 1 and 3 and Saaiplaas 5A and 5B were separate TSFs each with two separate compartments.

Parent cell block models with the dimensions 75m x 75m by 1.5m were constructed for each TSF. These block models were filled with an appropriate proto model (25m x 25m x 1.5m), that allowed for relatively small sub-cells along the wireframe surfaces such that the wireframes could be accurately filled to represent volume and tonnage.

The parent cell block size was selected on the basis of composite length (1.5m) and approximately half the average spacing of the drill hole grid (150m x 150m).

11.1.7Grade Estimation

Given the relatively large spacing and low number of samples generated, as well as the difficulty in generating and modelled variograms for each modelled TSF, it was decided to rely on an Inverse Distance Squared (“ID2”) grade interpolation method with the Ordinary Kriging (“OK”) interpolation as the main reconciliation parameter. It is common industry practice to estimate TSF’s using this method.

Parent cell estimation, with 1m x 1m x 1m discretisation was affected into a 3D block model, which produced a 3D spatial distribution of the estimated gold grade.

The minimum and maximum number of samples were selected to achieve an estimated block model with a balance between selectivity and smoothing. The isotropic search volumes were designed such that at least three to four drill holes were accessed in the search ellipses for each estimated parent cell. The vertical search was limited such that only three samples could be selected during estimation from any one drill hole forcing the estimate to account for multiple drill holes in the horizontal plane. This search also corresponds to the deposition method for TSFs as samples are not necessarily related to one another in the vertical dimension.

A second search volume at one and a half times and third search volume at four times the original search volume was employed to ensure the respective TSFs were completely estimated. These additional search volumes could be regarded as “lower quality” estimates.

The gold distribution into the block models for the Saaiplaas Dams, FSS1, FSS4, FSN6, FSS6 and FSS7 TSFs is shown in Figure 11-1.

The gold grade for the other TSFs that were not modelled was estimated as the weighted average of the gold assay results.

11.1.8Density Assignment

An industry standard relative density of 1.45t/m3 is used to determine the tonnage from the volume estimates.


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Figure 11-1: Distribution of Gold Grades for Saaiplaas Dams, FSN6, FSS7, FSS6, FSS4 and FSS1
Source: ExplorMine (2020)


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11.1.9Block Model Validation

Two types of data and model validation procedures were conducted as follows:

•in the estimations completed, each block or cell contained an ID2, OK, Simple Kriging, Nearest Neighbour and average value estimate, sourced from the relevant data by means of the search volume parameters. These various estimates were regressed with one another per cell and indicate very high degrees of correlation (correlation coefficients). A comparison of mean values for the sample, composite (1.5m) and block model estimates for gold grade was also informative; and

•swath analysis. Block model estimation validation was completed by comparing the average drill hole composite values versus the block model estimate for two sets of swaths orientated at right angles to one another. The swath analysis was prepared utilising combined Mineral Resource categories for the parent cell estimates. All estimates compare well with the capped composite data.

The model was also inspected visually in section comparing drill hole composite values to local estimated block values. There was a high degree of correspondence between the composite grades, which is to be expected in the models given the low population variances.

A reconciliation of wireframe volume for the TSF versus modelled volume showed that the two volumes differ by less than 0.001% for all modelled TSFs.

11.2WRDs - Mineral Resource Estimation Methods

There is no geological modelling of the WRDs as they are man-made deposits. Mineral Resource estimation is carried out on 21 WRDs, located across Harmony’s Free State mining operations.

11.2.1Geological (Sampling) Database

The Mineral Resource estimate is based on the face sampling and belt sampling results. The database includes samples taken between up to and including June 2022.

11.2.2Global Statistics

The global statistics for WRDs included in the Mineral Resource estimate are presented in Table 11-4.

Table 11-4: Global Statistics for the WRDs


WRD ID	No. Samples	Minimum (g/t Au)	Maximum (g/t Au)	Mean (g/t Au)	Variance	SD (g/t Au)	COV
Target 2	262	0.110	2.680	0.696	0.174	0.417	0.600
Freddies 9	353	0.120	1.540	0.404	0.059	0.243	0.603
Total	615

11.2.3Compositing

No compositing is undertaken for WRDs as drilling is not available.

11.2.4Variography

There is no variography undertaken for WRDs due to the paucity of sampling data.

11.2.5Volume Model

There is no block modelling undertaken for WRDs due to the paucity of sampling data.

A 3D DTM of each WRD topographical surface is constructed from the topographic survey information, which is used to constrain the volume. The base of the WRD is assumed to smooth and is measured as the elevations from the elevations of the base of the WRD.

11.2.6Grade Estimation

Grade estimation is simply a weighted average based upon grades obtained from the following:

•reclaimed tonnages from the different stockpiles;

•grades obtained from rocks deposited on the WRD facilities; and


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•grades from various other sampling projects carried out on some of the WRDs.

11.2.7Density Assignment

A uniform bulk density of 1.67t/m3 is used for all WRDs to determine the tonnage.

11.2.8Block Model Validation

There are no block models for the WRDs. However, a database for tracking addition and depletion of WRD material is also updated monthly. The annual Mineral Resource grade is compared to the monthly depletions and additions for verification purposes.

11.3Mineral Resource Evaluation

Evaluation of reasonable prospects for economic extraction of the TSFs and WRDs is based primarily on assumptions regarding the cost of reclamation, cost of processing and the gold recovery assumptions. This is demonstrated by the results of the cash flow for the operations.

The gold price was derived by the Harmony Executive Committee at Head Office. A gold price of ZAR850,191/kg was applied. The QP considers the price to be appropriate for Mineral Resource estimation and is slightly higher than that used for estimating Mineral Reserves (ZAR763,000/kg). The operating costs (both reclamation and processing) are based on historical performance and budget.

The mining method prevents the use of selective mining and hence no cut-off grades are applied to the TSFs and WRDs; however, each TSF and WRD is assessed on a standalone basis, and all of the Mineral Resources are considered to have reasonable prospects for economic extraction.

11.4Mineral Resource Classification and Uncertainties

11.4.1TSFs

The Mineral Resource classification for the TSFs is based on the drill grid spacing, QAQC process, as well as the different kriging parameters (search parameters, minimum / maximum number of samples). The TSFs are classified as:

•Indicated (100m x 100m or 150m x 150m drill grid spacing);

•Measured (50m x 50m drill grid spacing); and

•Mineral Resources for unmodelled TSFs, with grades that have been estimated based on weighted averages, have all been classified as Inferred Mineral Resources to take the uncertainty into account.

11.4.2WRDs

The Mineral Resource grade estimates for the WRDs are based on face sampling and/or conveyor belt sampling. Neither of these methods are adequate to confirm grade continuity which is required for the classification into a Measured Mineral Resource. Due to this uncertainty, WRDs classified as either Indicated or Inferred Mineral Resources.

11.5Mineral Resource Estimate

The Mineral Resources for both the TSFs and WRDs were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

The location of the TSF Mineral Resources are presented in Figure 11-2. The classification of the various TFSs into Mineral Resources or Mineral Reserves is summarised in Table 11-5. The location of the WRD Mineral Resources are presented in Figure 11-3. The classification of the various WRDs into Mineral Resources or Mineral Reserves is summarised in Table 11-6.


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Table 11-5: Classification of Free State Surface Operations TSF Mineral Resources and Mineral Reserves by Surface Deposit ID

Mineral Resource Category

Mineral Reserve Category

Operation / Project

Surface Deposit ID

Measured

Indicated

Inferred

Proved

Probable

Phoenix Project

Brand A (PB Dam A)

No. 21 (H3)

FSS 6

Central Plant Reclamation

FSS3

FSS5

Free State Tailings

FSN6

No. 32

FSS1

FSS2 East and West

FSS4

FSS7

FSS8 East

FSS8 West

Brand D (PB Dam D)

Saaiplaas 1

Saaiplaas 2 and 3

Saaiplaas 5b

Saaiplaas 6

No. 23 (Central Plant)

No. 30a

No. 33b

No. 34a

Target Slimes Dam

Pres Steyn 9 (Freddies 9)

Table 11-6: Classification of Free State Surface Operations WRD Mineral Resources and Mineral Reserves by Surface Deposit ID

Mineral Resource Category

Mineral Reserve Category

Operation / Project

Surface Deposit ID

Measured

Indicated

Inferred

Proved

Probable

WRDs

Freddies 3#

Freddies 9

Bambanani East (PS 4#)

Tshepong

Nyala #

Kudu #

Sable #

Eland #

Freddies 6#

Saaiplaas 2#

Saaiplaas 3#

Brand 2

The QP compiling the Mineral Resource estimates is Mr BJ Selebogo, Ore Reserve Manager and employee of Harmony.


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Figure 11-2: Location and Classification of Free State Surface Operations TSF Mineral Resources and Mineral Reserves


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa


Figure 11-3: Location and Classification of Free State Surface Operations WRD Mineral Resources and Mineral Reserves


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Mineral Resource estimates are provided separately for TSFs and WRDs. The Mineral Resource estimate, as at 30 June 2022, exclusive of the reported Mineral Reserves, for the TSFs and WRDs are presented in Table 11-7 and Table 11-8, respectively. These estimates account for depletion recorded from July 2021 to June 2022.

Table 11-7: Summary of the Free State Surface Operations TSF Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9


METRIC
Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (g/t Au)	Gold Content (kg)
Measured	Phoenix Project	21.852	0.27	5,855
	Central Plant Reclamation	-	-	-
	Free State Tailings	82.788	0.27	22,487
Sub Total / Ave. Measured		104.640	0.27	28,342
Indicated	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	Free State Tailings	-	-	-
Sub Total / Ave. Indicated		0.000	0.00	0
Total / Ave. Measured + Indicated		104.640	0.27	28,342
Inferred	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	Free State Tailings	15.459	0.19	2,937
Total / Ave. Inferred		15.459	0.19	2,937
IMPERIAL
Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	Phoenix Project	24.088	0.008	0.188
	Central Plant Reclamation	-	-	-
	Free State Tailings	91.258	0.008	0.723
Sub Total / Ave. Measured		115.346	0.008	0.911
Indicated	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	Free State Tailings	-	-	-
Sub Total / Ave. Indicated		0.000	0.000	0.000
Total / Ave. Measured + Indicated		115.346	0.008	0.911
Inferred	Phoenix Project	-	-	-
	Central Plant Reclamation	-	-	-
	Free State Tailings	17.041	0.006	0.094
Total / Ave. Inferred		17.041	0.006	0.094
Notes:
1. The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is Ore Reserve Manager, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No cut-off grade has been applied for the estimation of Mineral Resources. Mineral Resource tonnes are reported based on a gold price of USD1,723/oz.
4. Tonnes are reported as million tonnes rounded to three decimal places. Gold values are rounded to zero decimal places.
5. Uranium content is not reported for any of the projects.
6. Metal content does not include allowances for processing losses.
7. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
8. Rounding as required by reporting guidelines may result in apparent summation differences .
9. The Mineral Resource estimate is for Harmony’s 100% interest.


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Table 11-8: Summary of the Free State Surface Operations WRD Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9


METRIC
Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (g/t Au)	Gold Content (kg)
Measured	N/A	-	-	-
Indicated	N/A	1.055	0.39	413
Total / Ave. Measured + Indicated		1.055	0.39	413
Inferred	N/A	16.950	0.43	7,292
IMPERIAL
Mineral Resource Category	Operation / Project	Tonnes (Mt)	Gold Grade (oz/t Au)	Gold Content (Moz)
Measured	N/A	-	-	-
Indicated	N/A	1.163	0.011	0.013
Total / Ave. Measured + Indicated		1.163	0.011	0.013
Inferred	N/A	18.684	0.013	0.234
Notes:
1. The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is Ore Reserve Manager, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No cut-off grade has been applied for the estimation of Mineral Resources. Mineral Resource tonnes are reported based on a gold price of USD1,723/oz.
4. Tonnes are reported as million tonnes rounded to three decimal places. Gold values are rounded to zero decimal places.
5. Uranium content is not reported for any of the projects.
6. Metal content does not include allowances for processing losses.
7. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
8. Rounding as required by reporting guidelines may result in apparent summation differences .
9. The Mineral Resource estimate is for Harmony’s 100% interest.

Factors that may affect the Mineral Resource estimates include the following:

•gold price assumptions;

•exchange rate assumptions;

•operating and capital cost assumptions;

•gold recovery assumptions; and

•reclamation risks.

11.6Mineral Resource Reconciliation

The combined Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, for the TSFs increased from 0.723Moz in June 2021 to 0.911Moz (+0.188Moz) in June 2022 due to the inclusion of FSS6.

The Inferred Mineral Resources remained constant at 0.094Moz.

The combined Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, for the Free State Surface Operations WRDs decreased from 0.032Moz gold as at 30 June 2021 to 0.013Moz gold as at 30 June 2022. This was due to depletions at Freddies 9, Tshepong and Nyala WRDs

The Inferred Mineral Resources for the Free State Surface Operations WRDs, exclusive of Mineral Reserves, increased from 0.225Moz to 0.234Moz in 2022 due to contributions to the Tshepong WRD from waste development as this WRD is in active use.


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11.7Audits and Reviews

Mineral Resource and Mineral Reserve peer reviews, as well as Business Plan reviews are undertaken biannually by key team members of the Harmony Ore Reserve Management department. External Mineral Resource reviews are undertaken every third year by an external company. On a regular basis, process compliance audits (drilling and laboratories) are conducted monthly during drilling programmes.

All findings and conclusions are captured in the minutes of the peer reviews and made available. If areas of concern are identified, remedial action plans are put in place. In terms of external audits, remedial action plans are put in place to mitigate the identified areas of concern.

11.8Commentary on Mineral Resource Estimate

In the QP's opinion:

•there are no obvious reclamation, metallurgical, environmental, social, infrastructural, legal and economic factors that could have a significant effect on the TSFs and WRDs;

•the data spacing and distribution is sufficient to establish the grade continuity appropriate for the TSF Mineral Resource estimation procedure and classifications applied; and

•the grade estimation exercises are inadequate to determine grade continuity on WRDs. However, the low confidence in grade continuity has been considered in Mineral Resource classification.


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12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

The Mineral Reserves are derived through a business planning process and consideration by the Chief CODM. The business planning process comprises multi-functional reviews inclusive of all mining, engineering, and service departments, which are involved in the verification of the inputs and the Modifying Factors.

The CODM consists of various executive roles and responsibilities who assess the profitability, the revenue and production costs. The CODM also considers capital expenditure, gold production and tonnes milled when assessing the overall economic sustainability.

12.1Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

Of the 24 TSFs with Mineral Resources at the Free State Surface Operations, a total of 23 TSFs have Mineral Reserves estimates. Four of these TSFs have been formally included in the LOM plan for Phoenix and Central Plant Reclamation. The rest are part of the Free State Tailings which are currently at PFS stage. The accuracy of the estimated Mineral Reserves is driven by, and based on an economic analysis, and the confidence in the Modifying Factors.

There are no Mineral Reserves estimated for the WRDs.

The results and assumptions derived from the business planning process extend over an 18-month period. The planning process carefully considers strategic plan directives; analysis of historical performance; realistic productivity, and cost parameters; Modifying Factors; and technical and economic studies that have demonstrated justified extraction, as applicable to specific portions of the Mineral Reserves.

All reported Mineral Reserves are located on surface. The factors considered in the Mineral Reserve estimation process include:

•the latest geological and Mineral Resource models;

•slope stability and design parameters, guided by geotechnical designing and modelling;

•the mining method;

•spatial reconciliation of historical material deposition and grade control drilling for the TSF; and

•gold price estimates;

•gold recovery estimates; and

•cut-off grade assumptions.

Only Measured and indicated Mineral Resources have been considered in the estimation of Mineral Reserves.

12.2Modifying Factors

The Modifying Factors that were applied in the conversion of a Mineral Resource to a Mineral Reserve estimate for the Free State Surface Operations are presented in Table 12-1. The Modifying Factors used are based on Harmony’s knowledge of the TSF, planning and computing estimates used in determining the Mineral Reserves, and historical data.

The Mineral Reserves are declared as delivered to the mineral processing plant. The plant recovery for each TSF, as shown in the Modifying Factors (Table 12-1), is then applied to calculate the recovered gold. The recovered gold percentage informs the economic analysis for Free State Surface Operations.


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Table 12-1: Modifying Factors for Free-State Surface Operations as at 30 June 2022


Operation / Project	Source	Cut-off Grade (g/t Au)	Plant Recovery (%)
Phoenix Project	No. 21 (H3)	0.155	45.00
	Brand A (PB Dam A)	0.155	45.00
	FSS6	0.155	45.00
Central Plant Reclamation	FSS5	0.158	48.00
	FSS3	0.152	50.00
Free State Tailings	FSN6	0.159	43.32
	No. 32	0.138	49.89
	FSS1	0.133	51.71
	FSS2 East & West	0.133	51.71
	FSS4	0.133	51.71
	FSS7	0.141	48.67
	FSS8 East	0.133	51.71
	FSS8 West	0.133	51.71
	Brand D	0.131	52.57
	Saaiplaas 1	0.131	52.57
	Saaiplaas 2 & 3	0.131	52.57
	Saaiplaas 5b	0.131	52.57
	No. 23	0.131	52.57
	No. 30a	0.131	52.57
	No. 33b	0.141	48.97
	No. 34a	0.131	52.57
	No. 33a	0.131	52.57
	Target Slimes Dam	0.132	52.00
	Pres Steyn 9 (Freddies 9)	0.132	52.00

12.3Mineral Reserve Estimate

The Mineral Reserve estimate for Free State Surface Operations was originally prepared, classified and reported according to SAMREC Code, 2016. For the purposes of this TRS, the estimated Mineral Reserves have been classified in accordance with § 229.1302(e)(2) (Item 1302(e)(2) of Regulation S-K).

The Mineral Reserve estimate for Free State Surface Operations as at 30 June 2022 represents the material as delivered to the plant. The Mineral Reserve estimate for Free State Surface Operations is summarised in Table 12-2 and their location is presented in Figure 11-2. No Mineral Reserves have been declared for the Free State Surface Operations’ WRDs.

Table 12-2: Summary of the Free State Surface Operations Mineral Reserve estimate as at 30 June, 2022 1-5


METRIC
Mineral Reserve Category	Operation / Project	Tonnes (Mt)	Gold Grade (g/t Au)	Gold Content (kg)
Proven	Phoenix Project	36.519	0.29	10,423
	Central Plant Reclamation	-	-	-
	Free State Tailings	86.527	0.27	23,410
Sub Total / Ave Proven		123.046	0.27	33,834
Probable	Phoenix Project	-	-	-
	Central Plant Reclamation	47.910	0.27	12,844
	Free State Tailings	578.727	0.22	129,266
Sub Total / Ave Probable		626.638	0.23	142,110
Total / Ave (Proved + Probable)		749.683	0.23	175,943


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IMPERIAL
Mineral Reserve Category	Operation / Project	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	Phoenix Project	40.255	0.008	0.335
	Central Plant Reclamation	-	-	-
	Free State Tailings	95.380	0.008	0.753
Sub Total / Ave Proven		135.635	0.008	1.088
Probable	Phoenix Project	-	-	-
	Central Plant Reclamation	52.812	0.008	0.413
	Free State Tailings	637.937	0.007	4.156
Sub Total / Ave Probable		690.749	0.007	4.569
Total / Ave (Proved + Probable)		826.384	0.007	5.657
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is the Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3. Gold content is recovered gold after taking into consideration the modifying factors.
4. Mineral Reserves are reported using a cut-off grade of 0.137g/t and a gold price of USD1,546/oz.
5. Recovered gold (kg) is based on a conversion factor of 32.1507oz/kg.

12.4Mineral Reserve Reconciliation

The declared Mineral Reserve estimate for Free State Surface Operations decreased by 3.6%, from 5.87Moz as at 30 June 2021 to 5.66Moz as at 30 June 2022. The key changes in the Mineral Reserve estimate can be attributed to depletions at FSS5, Brand A and Dam 21.

There is no reconciliation required for the WRDs as no Mineral Reserves were declared in 2021, nor in 2022.

12.5Commentary on Mineral Reserve Estimate

All relevant Modifying Factors were considered in the conversion of Mineral Resources to Mineral Reserves. The recovered gold is derived from the estimated Mineral Reserves and the plant recoveries for each TSF, then used in the economic analysis presented in Section 19.

The Free State Surface Operations’ Mineral Reserve estimate as at 30 June 2022 is based on technical and economic Modifying Factors that are based on reliable sources.

Any by-products recovered as part of the refining process make up an immaterial component of the total metal inventory and are therefore not included in the Mineral Reserve estimate.

In the QP’s opinion, there are no known material risks to the Mineral Reserve estimate as at 30 June 2022.


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13Mining Method

Section 229.601(b)(96) (13) (i-v)

The mining methods used at Free State Surface Operations is hydro-mining for the TSFs, and reclamation of WRDs using tracked dozers and front-end loaders (“FELs”).

13.1Mine Design

The mine designs for the TSFs and WRDs are significantly different and are discussed separately in the sections to follow. The mine design principles for the two types of surface deposits are consistent across the Free State Surface Operations, i.e., for Phoenix Project, Central Plant Reclamation and Free State Tailings.

13.1.1TSFs

The tailings material is reclaimed by blasting the TSF face with high pressure water, resulting in the slurry gravitating towards the pumping stations. Several hydraulic monitoring guns deliver high pressure water to the face of the TSF. The hydro-mining method allows for flexibility as the monitoring guns can be positioned to selectively reclaim the required areas in the TSF. The bench heights are constrained by the force delivered by the monitoring gun nozzle, taking safety measures into account. The key mine design parameters for TSF reclamation are shown in Table 13-1.

Table 13-1: Key Hydro-Mining Design Parameters


Parameter	Unit	Value
Water Pressure - Design Capacity	Bar	27 - 30
Face Length	m	25
Relative Density – Slurry		1.40
TSF Bulk Density	t/m3	1.45
Water - Slime Ratio	:	1:1

For safety reasons, the top down method of hydro-mining is implemented. The gun is positioned at the top of the face, where it will cut downwards at a safe angle (a maximum angle of 45°). The horizontal distance between the cutting face and the bottom of the bench varies between 10m and 15m, depending on the bench angle. The track for the monitoring gun is located 2m from the cutting face, allowing for a safe angle of repose, taking geotechnical parameters into account. The hydro-mining method used at the Free State Surface Operations is shown in Figure 13-1.

The pump stations are located at the lowest point of the TSF, which ensures that the slurry material gravitates towards the pump stations, where it is then pumped to the processing plant.

13.1.2WRDs

Dozers are positioned on top of the WRD. The dozers are used to create safe loading faces and blend the rock (Figure 13-2). The material is then loaded from the face onto trucks using FELs and transported to the relevant gold plants for processing. When loading is done at the bottom of the WRD, precaution must be taken to ensure that the face is not undercut. This precaution measure is put in place to prevent rock falls from the dump. A slope with a maximum inclination angle of 15° is created towards the loading point, where the WRD material is pushed down. The slope angle is monitored and maintained on a continuous basis.

As a safety measure, two red indicating poles are located at the top of the dump in the area where the dozer is working. The dozer must not go beyond the indicating poles, and dozing does not take place vertically above a loading point where an FEL loading. A 30m advance is required between the dozer and the point vertically above an active loading point. As an additional safety consideration, operations at the WRDs take place during hours of daylight.


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Figure 13-1: Photograph of TSF Reclamation

Figure 13-2: Photograph of WRD Mining

The key mine design parameters for mining WRDs are shown in Table 13-2.


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Table 13-2: Key WRD Mining Design Parameters


Parameter	Unit	Value
Angle of Repose - Dozed Material	°	15
Advance - Dozing and Loading Operations	m	30
Loading Faces Vertical Height	m	3
Loading Faces Batter Angle	°	40

The WRD material is loaded onto rail hoppers using the FELs and transported to the relevant processing plant.

13.2Mine Plan Development and LOM Schedule

For Free State Surface Operations, the LOM Plan and schedule are derived from Mineral Reserves model, which is modelled at a specific cut-off grade for each TSF (Table 12-1). The cut-off grades for the respective TSFs were calculated using the 2023 budget figures, Mineral Reserve commodity price (Table 12-1), as well as the estimated mining costs.

The total LOM are derived from the Mineral Reserve estimate and can be accessed using the currently available infrastructure.

The mining rates used in deriving the LOM plan and schedule for the Free State Surface Operations are based on the current and expected operational performance, notwithstanding any unforeseen operational constraints. The remaining LOM for Phoenix Project and Central Plant Reclamation is 6 and 13 years, respectively. In accordance with the PFS, Free State Tailings has a 50 year LOM.

The LOM schedule assumptions on feed rates take technical factors such as equipment availability and utilisation, as well as operational factors such as weather conditions, which may affect the rate of reclamation into account. The recovered gold in accordance with the LOM schedule is used as input in the cash flow informing the economic analysis for Free State surface operations.

The overall generic design is a production rate of 300ktpm for the reclamation site, taking the specific conditions for each site into account. The considerations include the distance from the processing plant for each reclamation site.

For the Phoenix Project currently mines H1, Brand A (PB Dam A) and Dam 21 TSFs at a rate of approximately 500tpm. The Phoenix Project LOM Plan is presented in Figure 13-3 and Figure 13-4 according to tonnes milled and metal produced, respectively.

The Central Plant Reclamation processes TSF material from the FSS5, at a rate of 320ktpm until 2027. As reclamation at FSS5 TSF downscales, FSS3 TSF is set to commence production, reaching peak production rates in 2028. The Central Plant Reclamation will then process FSS3 TSF material until 2035. The production rate for the Central Plant Reclamation is expected to remain constant throughout the mine life. The Central Plant Reclamation LOM Plan is presented in Figure 13-5 and Figure 13-6 according to tonnes milled and metal produced, respectively.

The Free State Tailings LOM plan includes processing of TSF material from the 20 TSFs that have been investigated in the PFS. The Free State Tailings LOM Plan is presented in Figure 13-7 and Figure 13-8, according to tonnes milled and metal produced, respectively.

13.3Geotechnical and Hydrological Considerations

There are no further geotechnical and hydrological considerations for mining of the TSFs and WRD, the relevant considerations are discussed in Section 13.1.


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Figure 13-3: Graph of LOM for Phoenix Project – Tonnes and Grade

Figure 13-4: Graph of LOM for Phoenix Project – Gold Produced (kg)


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Figure 13-5: Graph of LOM for Central Plant Reclamation – Tonnes and Grade

Figure 13-6: Graph of LOM for Central Plant Reclamation – Gold Produced


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Figure 13-7: Graph of LOM for Free State Tailings – Tonnes and Grade

Figure 13-8: Graph of LOM for Free State Tailings – Gold Produced (kg)

13.4Dilution and Grade Control

No dilution or grade control is implemented as the entire TSF or WRD is mined.

13.5Ore Transport

With respect to the TSFs, the slurry is washed into the collection sumps and delivered to the pump station at the TSF. Thereafter a series of overland pipelines pump the slurry to the designated processing plant.


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In the case of the WRDs, the rock is loaded onto rail hoppers or trucks and transported to the designated processing plant for milling and mineral processing.

13.6Mining Equipment and Machinery

The equipment and machinery employed in the reclamation of the Free State Surface Operations TSFs include:

•hydraulic monitoring guns; and

•pumps.

The following equipment and machinery is employed in the mining of the Free State Surface Operations WRDs:

•dozers - create safe loading faces, maintain the WRD slope and blend the rock; and

•FELs – load the dozed material onto trucks or rail hoppers.

13.7Mining Personnel

The mining personnel by mining operation are presented in Table 13-3.

Table 13-3: Free State Surface Operations Mining Personnel


Project			No. Mining Personnel
Phoenix Project			237
Central Plant Reclamation			209
St Helena Project 1			0
Total			446
Note: 1 - based on Feasibility Study, not yet operational.

13.8Commentary on Mining Method

The extraction of the TSF material via the hydro-mining method of extraction has proven to be safer and cheaper than loading and hauling methods, using truck and shovel operations. The method has been historically tested and is well understood for extraction of the MWS Operation TSFs. The TSF operations are established and supported by existing equipment, pipeline, infrastructure, and plants. Defined maintenance and capital equipment schedules are completed on an annual basis, once the CODM completes the business planning process. These schedules are incorporated in the mine planning process.

WRD: Dozers are positioned on top of the WRD. The dozers are used to create safe loading faces and blend the rock. The material is then loaded from the face onto trucks using FELs and transported to the relevant gold plants for processing. When loading is done at the bottom of the WRD, precaution must be taken to ensure that the face is not undercut. This precaution measure is put in place to prevent rock falls from the dump. A slope with a maximum inclination angle of 15° is created towards the loading point, where the WRD material is pushed down. The slope angle is monitored and maintained on a continuous basis.

Free State Surface Operations have a solid operational history, and the mine design parameters are derived from production statistics.

While the Free State Tailings is currently at PFS stage, the LOM plan assumptions are derived from existing mining operations.


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14Processing and Recovery Methods

Section 229.601(b)(96) (14) (i-iv)

Two plants, namely the Central Plant and the Saaiplaas Plant, are currently dedicated to the processing of tailings material. Reclaimed tailings are pumped as slurry via pipelines and WRD material is transported on trucks, to the respective plants for processing.

14.1Saaiplaas Plant

The Saaiplaas Plant forms part of the Phoenix Project and is currently treating reclaimed tailings at a rate of 500ktpm from Brand A (PB Dam A) and Dam 21 TSFs.

14.1.1Mineral Processing Description

The Saaiplaas Plant flow diagram is presented in Figure 14-1. Pre-Oxidation of the slurry is initiated at the reclamation site where oxygen is injected into the slurry transfer line which feeds the plant. The slurry flows into the thickener distribution box and then to the thickener where the pH is corrected to 10.5 -11.0. The thickener underflow slurry is pumped over screens where any remaining trash is removed. Cyanide is added to the slurry in the screen underflow tank from where it is pumped to the leach circuit.

The twelve conical bottom air agitated Pachuca tanks are arranged in two parallel carousel circuits with six tanks in each circuit. Once the slurry is adequately leached and the gold has attached to the activated carbon this slurry reports to the Central Plant for elution. Elution involves the de-absorption of gold from the activated carbon into a concentrated solution.

All activated carbon is recycled from the elution circuit into the kiln where it is re-activated using thermal technology and then sent back to Saaiplaas for reuse. The residue from the CIL circuit is pumped to the St. Helena 123 Cyclone TSF.

14.1.2Plant Throughput, Design, Equipment Characteristics and Specifications

Saaiplaas Plant is currently reclaiming tails from TSF Brand A (PB Dam A) and Dam21. FSS6 has been earmarked for the next feed site after Brand A (PB Dam A) has reached depletion. The scheduling of feed to Saaiplaas will continue to ensure a 500ktpm production. The Saaiplaas processing parameters are presented in Table 14-1, whilst the major equipment is indicated in Table 14-2.

Table 14-1: Saaiplaas Plant Leaching Process Parameters


Processing parameters	Unit	Value
Slurry Density	kg/l	1.45-1.50
Leach Time	hr	18-24
pH		10.5
Cyanide Dosage	ppm	250-300

Table 14-2: Saaiplaas Equipment Specification


Plant Equipment	Units	No. of Tanks	Value
Thickeners	m	4	45
Reagent Addition Tanks	m3	2	30
CIL Pachucas	m3	12	1,000
Residue Tanks	m3	2	350
Carbon Tans	m3	3	350
Cyanide Storage Tanks	m3	2	50
Lime Storage Silos	t	2	400
Flocculant Hydration Tanks	m3	2	15
Liquid Oxygen Tanks	t	1	35
Linear Screens	m	2	5.5


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Figure 14-1: Schematic Flow Diagram for Saaiplaas Plant


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14.1.3Energy, Water, Process Material and Personnel Requirements

The operational water supply is sourced from circulating return water at Dam 13, the existing TSF for the Saaiplaas Plant, and power to the Saaiplaas Plant is received from Eskom. The monthly averages of consumption and personnel requirements are shown in Table 14-3.

Table 14-3: Energy, Water and Personnel Requirements at Saaiplaas Plant


Parameter	Unit	Value
Electricity Consumption	kWh/month	4,248,302
Water Consumption	kL	72,905
Personnel		372
Plant		191
Remining		181

14.2Central Plant

Reclaimed tailings from FSS5 TSF are processed through the Central Plant at a rate of 320ktpm. The rate of treatment will remain unchanged for the duration of the LOM even when new TSFs form part of the feed to the plant.

14.2.1Mineral Processing Description

Reclaimed slurry is delivered to the thickener distribution box and fed into the thickeners which have been converted to operate as high rate thickeners. The thickeners have been converted to “High Rate” thickeners by the additional of the FLSmidth ‘p-duct’ dilution system which dilutes the incoming slurry to assist with the settling process. The Central Plant flow diagram is presented in Figure 14-2.

The thickener underflow slurry is pumped over screens where any remaining trash is removed. Cyanide is added to the slurry in the screen underflow tank from where it is pumped to the leach circuit.

The leach circuit consist of six mechanically agitated flat bottom tanks and the pulp cascades down the Leach circuit under gravity. From the Leach circuit the pulp flows to the seven CIP Tanks which were fitted with interstage rotating screens to retain the carbon in the tanks while the slurry flows through.

Once the gold is dissolved into the cyanide solution it has a higher ability to adsorb (attach) onto activated carbon (made from coconut shells, nominal size ~2.5mm). Once the activated carbon is suitably loaded with gold the slurry is transferred to the elution section of the process. Elution involves the de-absorption of gold from the activated carbon into a concentrated solution.

All activated carbon is recycled from the elution circuit into the kiln where it is re-activated using thermal technology and then sent to the CIL at Central Plant, CIL at Saaiplaas or to Joel Plant for reuse. The eluate, rich in gold, is then pumped through a series of electrowinning cells where the gold is plated onto a stainless-steel wire mesh (cathode).

Gold smelting is carried out in a submerged arc furnace or induction furnace (for smaller batches). From here, the gold is poured into moulds, cleaned, sampled. The doré bars are transport to Rand Refinery Limited in Germiston, Gauteng, for refining.

14.2.2Plant Throughput, Design, Equipment Characteristics and Specifications

Central Plant is currently capable of processing 320ktpm fed from FSS5 until it is depleted at which time FSS3 will become the plant feed.

The cyanide leach is an intricate balance of time, pH and oxygen sparging. These parameters have been determined with metallurgical test work and historical performance in order to optimise the recovery. The parameters used in this process are set out in Table 14-4., whilst the current number and capacities of the major plant equipment found at Central Plant are presented in Table 14-5.


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Figure 14-2: Schematic Flow Diagram of the Metallurgical Process Diagram at Central Plant


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Table 14-4: Central Plant Leaching Process Parameters


Processing parameters	Unit	Value
Slurry Density	kg/l	1.45-1.50
Leach Time	hr	18-24
pH		10.5
Cyanide Dosage	ppm	250-300

Table 14-5: Plant Equipment Specifications at Central Plant


Plant Equipment	Units	No. of Tanks	Value
CIP Tanks	m3	7	400
Leach Tanks	m3	6	2,000
Elution Columns	m3	2	15
Primary	m3	3	7.5
Secondary	m3	3	7.5

14.2.3Energy, Water, Process Material and Personnel Requirements

The operational water supply is sourced from circulating return water at Dam 13, the existing TSF for the Central Plant, and power to the Central Plant is received from Eskom. The monthly averages of consumption and personnel requirements are shown below (Table 14-6).

Table 14-6: Energy, water and personnel at Central Plant


Parameter	Unit	Value
Electricity Consumption	kWh	1,852,427
Water Consumption	kL	18,371
Personnel		209
Permanent		101
Contractors		108

14.3Free State Tailings (PFS)

The PFS proposes the processing of additional TSFs at both the following plants:

•Harmony One Plant (Figure 3-2). Production will be ramped up in 300ktpm increments as the plant modules become available and the plant is repurposed in 2024, 2032 and 2041; and

•Target Plant (Figure 3-2). This plant will be repurposed to 300ktpm tailings retreatment in 2028.

14.3.1Harmony One Plant Mineral Processing Description

Harmony One Plant is currently milling and treating ROM ore from Tshepong, Joel, Bambanani and Masimong shafts. The production profile for Harmony One Plant indicates a reducing tonnage profile which will allow for the additional feed from TSFs within the Free State Surface Operations to be processed. In order for the plant to be capable of processing the TSF material it will require repurposing which will occur in three stages to treat reclaimed tailings at a rate of 300tpm in each stage. The ore reception and milling sections of the plant will become redundant as the plant is repurposed to treat tailings only.

The proposed conversion sequence can be summarised as follows:

•in 2024 thickeners 5 and 6 will be used in conjunction with Leach and CIP module 3 to treat the tailings. The remaining four thickeners and leach and CIP modules will be used to treat the ROM ore;

•in 2032 a changeover will be done where thickeners 5 and 6 will be dedicated to thickening milled product and leach and CIP module 3 will be used for ROM ore. This will then free capacity for thickeners 1 to 4 and leach and CIP modules 1 and 2 to be used for TSF treatment; and

•finally in 2041 the entire plant will be dedicated to treat TSF material.


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14.3.2Target Plant Mineral Processing Description

Target Plant is currently milling ROM from underground as well as surface rock dump material. The LOM production profile for Target Mine indicates that the plant will potentially be available for repurposing to treat TSF material by 2028.

The modifications to the Target Plant will require an upgrade of the following:

•thickener underflow pumps;

•leach feed screening system to accommodate the increased flow;

•the CIP interstage screens; and

•the existing residue pumping and piping system to pump to the new deposition site.

14.4Commentary on the Processing and Recovery Methods

Both Saaiplaas Plant and Central Plant have been in operation and dedicated solely to tailings re-treatment for a significant period, and as such the processing method is considered well established for the material being treated. The plants makes use of historical data (Figure 14-3) as the basis for their projected recoveries.

The metallurgical process is a well-tested technology for processing Witwatersrand ores. Recoveries used in the business plan were based on historic performance. The methodology applied considered the historical metallurgical recovery (18-month period) for the relevant ore source. The actual monthly head grades were reviewed and the relationship between the head grade and recovery were used as base for the Business Plan (“BP”) 2023 metallurgical recoveries, taking into consideration the relevant forecast head grades.


Figure 14-3: Graph of Historical Gold Recovery at Saaiplaas and Central Plant


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15Infrastructure

Section 229.601(b)(96) (15)

The Free State Surface Operations have adequate access to the infrastructure required to meet the planned LOM production schedules. In addition, all provisions and plans required for the St Helena Project have been made. The surface infrastructure located in the vicinity of Welkom and Virginia are presented in Figure 15-1 and further north in Figure 15-2. Detailed infrastructure associated with the Saaiplaas and Central plants are presented as Google Earth images in Figure 15-3 and Figure 15-4, respectively.

15.1Tailings Storage Facilities (Depositional TSFs)

The active and future deposition TSFs for all Free State Surface Operations are be presented in Table 15-1 and in Figure 15-1. Residues are pumped to the respective TSFs.

Table 15-1: Free State Surface Operations Active and Future Depositional TSFs


Status	TSF	Plant
Active	FSS2, St.Helena 4	Harmony One Plant
	Target	Target Plant
	Dam 23, Brand D	Central Plant
	St. Helena 1, 2, 3	Saaiplaas Plant
Future	Dam 21	Saaiplaas Plant
	H1 Footprint	Harmony One Plant ROM
	FSN1	Harmony One Plant Reclamation / Target Reclamation
	FSN2	Target Plant Reclamation
	FSN Valley	Harmony One Plant Reclamation / Target Reclamation
	Nooitgedacht	Harmony One Plant Reclamation / Saaiplaas Plant Reclamation
	Brand A	Central Plant Reclamation

15.1.1Saaiplaas Plant

Residue deposition onto the FSS6, FSS4 and FSS1 TSFs replaced the old Saaiplaas deposition TSFs at the end of 2011. Deposition onto these TSFs and the Brand D (PB Dam D) TSF stopped with the commissioning of the St Helena 1, 2 and 3 cyclone TSF which can accept the full monthly production of 500,000t from the Saaiplaas Plant.

Saaiplaas Plant began depositing material on the St Helena 1, 2 and 3 TSF in March 2013. This TSF is now the sole deposition site for the Saaiplaas Plant. Commissioning of the St Helena 1, 2 and 3 TSF allowed the planned increase in plant throughput to the required 500,000tpm until 2029. The St Helena 1, 2 and 3 cyclone TSF was constructed on an existing deposition site and as such it did not require the environmental permitting that a new site would have needed.

St. Helena 1,2 and 3 cyclone TSF has been confirmed to have sufficient deposition capacity up to the end of 2029.

15.1.2Central Plant

The Central Plant deposits tailings onto active Dams 23 and Brand D (PB Dam D) TSFs (Figure 3-2, Figure 15-1). Both facilities are conventional ring dyke daywall-paddock impoundments, constructed using the upstream method. The upstream method involves using the tailings material to construct the facility. The tailings material is hydraulically deposited via open end distribution pipes.

Sufficient deposition capacity is available for Central Plant’s remaining years of deposition in the current LOM Plan. This is however subject to the state of overall stability as the facilities rise, which will need to be monitored on a continuous basis.

A new deposition site will be required for to accept 300ktpm from Central Plant post 2036.


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Figure 15-1: Location of Free State Surface Operations in Relation to Local Infrastructure Between Welkom and Virginia
Note: Plan only indicates TSFs and WRDs located between Welkom and Virgina.


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Figure 15-2: Location of Free State Surface Operations in Relation to Local Infrastructure North of Welkom


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Figure 15-3: Detailed Infrastructure for Saaiplaas Plant
Source: Google Earth Image Date : September 2021 Thickeners


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Figure 15-4: Detailed Infrastructure for Central Plant
Source: Google Earth Image Date : September 2021


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15.2Pipelines and Conveyors

For both Saaiplaas Plant and Central Plant, the collection sumps that deliver the slurry to the pumping stations, which is then pumped via overland pipelines to the respective plant streams have been dedicated to the transport of material and have been maintained effectively for this purpose.

The Free State Tailings PFS proposes the treatment of additional tailings material at Harmony One Plant and Target Plant. Nine TSFs are planned to be treated through the three modules that will progressively become available at Harmony One Plant (Table 15-2).

Table 15-2: Harmony One Plant Pumping Requirements for Further TSF Treatment


TSF ID			Pumping System Requirements
33B			Make use of a single slurry catchment pump system to transport slurry to a central slurry transfer pump.
33A
34A
32			Will each have their own catchment pump system that will pump slurry material to a central main slurry transfer pump system.
30A
FSS8			Will each be complete reclamation stations without any shared infrastructure.
Brand D
FSS2

The Target Plant will treat reclaimed tailings from Freddies 9 and Target TSFs which will each be equipped with their own standalone complete reclamation system.

15.3Power and Electrical

The power supply for the operations is from Eskom substations. If this supply is impacted by any outage the metallurgical plant makes use of two emergency diesel generators (250kVA and 1,500kW) that will keep critical equipment running, in order to ensure that the processes are not adversely impacted and could continue without start-up delays as soon as main power supply is restored.

15.4Water Usage

For the current 800ktpm reclamation in the Free State Surface Operations operational water supply is sourced from Dam 13, at an average rate of 32Mlpd. This will include water requirements for Harmony One Plant. Water for the reclamation project for Target Plant will be supplied from Freddies 9 Dam.

TSF reclamation is heavily dependent on a reliable and sustainable water supply. The operation has access to a company own surface water dam that is supplied mainly by deep shaft mines in the surrounding area. A large portion of the water used is also recovered and recirculated back to the surface dam mentioned above. This recirculated water comes from the tailings deposition dam and is process water that is drawn off from to a return water dam next to the facility.

At the pump stations and inside the metallurgical plant, process water is also critical for gland service water for the numerous pumps used in the operation. It is for that reason that a number of service tanks are used to ensure steady supply of the process water.

15.5Logistics and Supply

The surface infrastructure associated with Free State Surface Operations is presented in Figure 15-3. The Free State Surface Operations have adequate access through maintained provincial tarred roads.

15.6Commentary on Infrastructure

The operational infrastructure for both Phoenix Project and Central Plant Reclamation including road, rail, offices, security services, water and power supply is adequate, and is shared with the Harmony operations in the relevant areas. Both operations are well-established with sufficient logistical and infrastructure support for current operation. Infrastructure for the Free State Tailings has been included in the PFS.


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16Market Studies

Section 229.601(b)(96) (16) (i-ii)

16.1Market Overview

16.2Global Production and Supply

Gold production and supply is sourced from existing mining operations, new mines and recycling.

16.2.1New Mine Production

16.2.2Recycling

16.3Global Consumption and Demand

16.3.1Jewellery

16.3.2Investment


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20% lower in Q1 2022, but 11% higher than a five-year quarterly average (Gold Demand Trends Q1 2022, Gold.org, April 2022).

16.3.3Currency

16.4Gold Price

16.4.1Historical Gold Price

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

16.4.2Forecast Gold Price

The gold price forecast of USD1,546/oz is conservative if corroborated against a long-term broker consensus gold price outlook (Figure 16-2).

16.4.3Harmony Group Gold Hedging Policy

Harmony has a hedging policy which is managed and executed at Group treasury level on-behalf of its operating entities. The key features of the hedging programme are as follows:

•the policy provides for hedging (or forward selling) up to a maximum of 20% of expected gold production for a rolling 24-month period;

•the policy has no minimum quantity that should be hedged, and if an attractive margin above cost cannot be achieved (i.e., in a low gold price environment) then no hedges are entered into;

•Harmony enters into ZAR-denominated gold hedges for its South African operations (for the non-South African assets it enters into USD-denominated hedges);


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Figure 16-1: Graph of Annual Gold Price History – ZAR/kg
Source: https://www.gold.org/goldhub/data/gold-prices
Figure 16-2: Graph of Consensus View of Forecast Gold Price

•Free State Surface Operations does not enter into hedges in its own name but delivers bullion to Rand Refinery for refining on behalf of Harmony. Rand Refinery is one of the world’s largest single-site precious metals refining and smelting complex in the world. Rand Refinery refine all of


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Harmony’s gold to at least 99.5% purity, and acting as agent, sells the gold on the daily spot London fixing price and make payment to the Harmony two days later;

•Free State Surface Operations does its mine planning and financial forecasts based on the estimated future gold price provided by the Group treasury, but its year-end actual financial results reflect the received gold price inclusive of the benefit of the hedging programme. Therefore, in theory, Free State Surface Operations receives a hedged gold price for a maximum of 20% of its gold sales with the balance attracting the spot price.

16.5Commentary on Market Studies

16.6Material Contracts

Harmony has contractual vendor agreements with various service providers and suppliers. The most significant of these contracts, which are currently in place to support Mine Waste Solutions, are presented in Table 16-1.

Table 16-1: Material Contracts


Vendor Name			Nature of Service /Supply
Intasol Tailings (Pty) Ltd			Hydraulic re-mining of TBO Operations (Saaiplaas Plant)
Intasol Tailings (Pty) Ltd			Management and maintenance of FS TSF.
Intasol Tailings (Pty) Ltd			Management and maintenance of St Helena 123 Cyclone Dam
Lejweleputswa Taxi Investments			Transportation of personnel - Welkom area
Netcare 911			Provision of medical services at all Free State Operations

All of the listed contracts are currently valid and in good standing. Terms, rates and charges of contracts are considered consistent with industry norms. Contract management processes are in place and resourced so that contracts re-tendered and/or renewed as they approach expiry.

As with all major businesses, Free State Surface Operations enters into a multitude of vendor agreements for the provisions of supplies and services. These agreements are entered into on a competitive basis and typically are of a medium-term duration all with clauses providing for periodic updating of pricing, annual (or other) renewal or termination.


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17Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Section 229.601(b)(96) (17) (i-vii)

The South African Government has an extensive legal framework within which mining, environmental and social aspects of the industry are managed. Harmony and its Free State Surface Operations are primarily regulated and managed by certain principal Acts (Section 17.3) as well as corporate policies, management systems and certain industry-wide guidelines, including:

•Energy Efficiency and Climate Change Policy;

•Environmental Policy;

•Harmony Water Management Strategy;

•Biodiversity and Rehabilitation Position Statement;

•Socio-Economic Transformation Policy; and

•Corporate Social Responsibility Policy.

17.1Results of Environmental Studies

In South Africa, the regulatory scoping and EIA process and associated report(s) form the basis on which the national Department of Forestry, Fisheries and Environment ("DFFE") administers the legislation and issues environmental authorisations. The EIA report generally identifies and predicts the likely environmental, social and other related impacts and establishes the measures that are necessary to avoid, minimise or offset predicted adverse impacts. The mitigation measures are captured in an EMP and operationalised in an Environmental Management System (“EMS”).

Free State Surface Operations has implemented an EMS aligned with ISO 14001:2015 standard to help identify, manage and monitor its environmental impacts. The EMS provides a holistic approach to encourage better environmental performance and helps demonstrate its compliance with its statutory and regulatory requirements.

Target and Harmony One metallurgical Plants are ISO14001:2015 certified, and Saaiplaas and Central reclamation Plants are in the process of applying for ISO14001:2015 certification. Internal and External ISO14001 audits are conducted on an annual basis to determine the level of compliance to the ISO14001:2015 requirements; and by conducting legal compliance audits on a regularly basis to determine the level of compliance to South African environmental legislation applicable to the operations. Every effort is made by both the operations to eliminate or minimise the negative effects of its activities on the receiving environment and adjacent communities.

17.2Waste and Tailings Disposal, Monitoring & Water Management

As part of its mining, environmental and water approvals, and licences, Free-State Surface Operations is required to implement monitoring programmes and plans to establish the operations impact on the environment. The compliance limits for the monitoring variable are included in the applicable EMP(s), WUL(s) and AEL(s). The environmental monitoring implemented across the Free-State Surface Operations includes:

•annual EMP performance assessments;

•monthly surface water quality monitoring;

•quarterly groundwater quality monitoring;

•waste classification and quantification;

•Annual Integrated Waste and Water Management Plan updates;

•monthly and quarterly air quality (i.e., noise and dust) monitoring; and

•periodic licence and authorisation compliance assessments.


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In terms of water and waste management, the TSFs are registered with the South African Waste Information System (“SAWIS”) as hazardous waste generators and waste is managed and disposed at registered and licensed landfill sites as required by the local by-laws.

17.3Permitting and Licences

In respect of environment, the following national Acts and the regulations promulgated thereunder provide the regulatory framework for mine permitting and licencing in South Africa:

•Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”);

•National Environmental Management Act, 1998 (“NEMA”);

•National Environmental Management: Waste Act, 2008 (“NEM:WA”);

•National Environmental Management: Air Quality Act, 2004 (“NEM:AQA”); and

•National Water Act, 1998 (“NWA”).

The Free State Surface Operations are broadly governed by Harmony’s underground mining operations and their respective mining rights and environmental permits. There is no requirement under the existing legislative framework to hold a mining right to process mine residue stockpiles which are linked to existing operations by road, rail and/or pipeline.

Environmental permits and licences are however required that trigger any specific activity listed under the above-mentioned Acts and regulations. A summary of the status of all environmental permits and licences issued at the effective date related specifically to the Free-State Surface Operations is presented in Table 17-1

Table 17-1: Status of Environmental Permits and Licences

Operation

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Phoenix Project

Atmospheric Air Emission Licence- Exemption

LDM/AEL/YMK/017

Lejweleputswa District Municipality

05-Nov-18

N/A

Water Permit

1214N

DWS

N/A

LOM

Central Plant Reclamation

Atmospheric Air Emission Licence

LDM/AEL/YMK/012

Lejweleputswa District Municipality

05-Nov-18

06-Nov-23

Water Permit

1214N

DWS

N/A

LOM

General

Environmental Management Programme

FS30/5/1/2/3/2/1(82) EM

DMRE

12-Mar-10

Valid

Notes: DWS - Department of Water & Sanitation, DMRE - Department of Mineral Resources & Energy

All relevant mining, environmental and water-use permits are in place that cover the environmental, archaeological and hydrological components of the operations. All permits are audited regularly for compliance and the operation is currently within compliance for all relevant permits. The permits are continuously amended as required by the operation through relevant authorities. As such the operations are currently in the process of the applying for Water Use Licences in terms of the NWA despite being in the procession of valid Water Permits.

Environmental Management Programme Amendments were submitted/lodged in 2019 with the Department of Mineral Resources and Energy, we are currently awaiting decision from DMRE.

Environmental Management Programme and Basic Assessment Report for FSS6 TSF Reclamation Pipeline and associated pump station for Saaiplaas Plant has been submitted for decision making with DMRE


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17.4Local Stakeholder Plans and Agreements

•contribute to areas that will have the most meaningful socioeconomic impact on communities, namely infrastructure, education and skills development, job creation and entrepreneurial development;

•enhance broad-based local and community economic empowerment and enterprise development initiatives;

•facilitate socio-economic development in local communities by means of corporate social responsibility programmes;

•support arts, culture, and sports and recreation; and

•build relationships based on trust within host communities.

Despite no formal or regulatory agreements in place for Free State Surface Operations, the Company has committed to source labour from the surrounding communities as far as possible, where applicable.

17.5Mine Closure Plans

Since the Free-State Surface Operations does not operate under a mining right, there is no legal requirement under the current South African legislative framework for Harmony to compile a closure plan and provide financial assurance to the regulator.

Despite this, Harmony appointed Digby Wells Environmental (“Digby Wells”), an independent environmental consultant, to review and update the closure cost for Free State Surface Operations which was evaluated in June 2022. The exercise was conducted under the general “duty of care” principle as per Section 28 of NEMA, using regulation 53 and 54 of the MPRDA as a guideline. The closure cost as at 30 June 2022, was calculated to be ZAR289m including a 10% contingency allowance.

The approach followed by Digby Wells involved:

•identifying all areas and infrastructure that form part of the operations responsibility;

•measuring the volumes and areas of the active waste rock dumps and TSFs using survey data;

•developing a site-specific closure cost model aligned with the methodologies applied to other Harmony operations; and

•compiling a report that outlines the methodology, assumptions, technical solutions and any potential risks identified related to the closure cost.

Harmony does not have a legal obligation to have a post-performance or reclamation bond in place with the regulator to fund the cost of closure.

17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals or Groups

17.7Local Procurement and Hiring

Harmony is committed to investing in the future of local communities beyond the life of the operations and not to only empower them, but also to mitigate the impacts of its operations to ensure a positive legacy. Although Free State Surface Operations is not governed by the MPRDA and therefore there is no legal obligation to comply with the 2014 Mining Charter, the Company applies this framework in its socio-economic development initiatives such as the procurement of local goods and services. Portable skills are


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developed through expanded learning programmes, learnerships and other programmes opened to operating communities and areas where labour is sourced.

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Periodic inspections are conducted by the regulator to verify compliance with applicable environmental laws, regulations, permits and standards. In addition, Free-State Surface Operations has implemented an EMS in line with the ISO 14001 standard. The EMS is audited on an annual basis by a third party and includes the needs and expectations of interested parties.

As part of the Harmony group, the operations conducts its operation based on policies and systems that are aligned to its corporate sustainable development framework. Although Harmony is not a signatory to the International Council on Mining and Metals or the UN Global Compact, these form the guiding principles of the framework. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (“GRI”). Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (“CDP”) for both climate change and water.

The Free State Surface Operations and its other associated mining operations have a good understanding of the environmental and social aspects of the operations through baseline and specialist studies previously conducted. Risk management and mitigation measures were adequately addressed in the environmental management plans and will be effective to mitigate risks and impacts to acceptable levels should the measures be implemented according to the specialists’ recommendations.


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18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Economic parameters for the Harmony Group, including capital and operating costs, are determined, and signed off by the CODM, before distribution to the business units, including the Free State Surface Operations. The capital and operating costs are reported in ZAR terms and on a real basis. Rounding of figures may result in minor computational discrepancies.

18.1Phoenix Project

No capital costs have been allocated to the Phoenix for the remaining duration of the LOM.

A summary of the direct and indirect unit operating costs for the Phoenix for the FY2023 budget are presented in Table 18-1.

Table 18-1: Summary of Operating Cost for Phoenix Project


Operating Costs			ZAR/t (Processed)
Wages - Payroll 1			1.42
Wages - Payroll 2			0.31
Stores and materials			2.31
Electric power and water			5.79
Outside contractors			10.99
Other			0.23
Refining charge allocation			0.40
Hostel cost allocation			0.01
Treatment cost allocation			58.63
Mine Overheads			0.09
Total Operating Cost			80.17

18.2Central Plant Reclamation

Capital has been allocated from 2023 until 2027 (Table 18-2). No capital has been allocated for the remaining 10 years.

Table 18-2: Summary of Capital Cost Estimates for Central Plant Reclamation


Capital Cost Element (ZARm)			Total LOM (FY2023 - FY2035)
Surface Source Capital			42.05

A summary of the Central Plant Reclamation direct and indirect unit operating costs for the FY2023 budget are presented in Table 18-3.

Table 18-3: Summary of Operating Cost Estimates for Central Plant Reclamation


Operating Costs			ZAR/t (Processed)
Stores and materials			1.99
Electric power and water			5.60
Outside contractors			9.53
Other			0.08
Refining charge allocation			0.46
Assay cost allocation			0.11
Treatment cost allocation			57.33
Mine Overheads			5.98
Total Operating Cost			81.09


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18.3Free State Tailings

The capital cost allocation for the Free State Tailings (Table 18-4) has been determined based on the following:

•as a result of the similarities in the conversion of Harmony One Plant and Target Plant with the conversion of the Kopanang Plant to treat reclaimed tailings, the cost estimate was based on a factorised cost of the March 2021 Mispah Tailings Reclamation PFS, which costed the conversion of the Kopanang Plant;

•the reclamation station designs were done by INTASOL (“INTASOL tailings”) and based on a reclamation rate of 300ktpm, and are based on the bills of quantities generated from the design and single vendor quotes for the components in May 2021;

•the tailings dam construction costing was based on a factorised cost from the Feasibility level design of the H1 TSF done by Epoch Resources and the PFS level design of the Harties Combined, East and South East TSFs by Jones and Wagener in November 2020; and

•residue pumping costs are based on the same component cost used for the Reclamation station design from May 2021.

Table 18-4: Summary of Capital Cost Estimates for Free State Tailings


Capital Cost Element			ZAR(m)
Residue Pumping			674.56
Deposition TSF			5,589.28
Return Water			100.01
One Plant			610.02
Target Plant			203.34
Reclamation Stations			2,670.25
Total Capital Cost			9,847.46

An average cost of ZAR70.13/t is applied to the Free State Tailings cash flow. This is based upon the recent operating costs from Phoenix and Central Plant Reclamation, was used for the Free State Tailings cash flow model.

18.4Comment on Capital and Operating Costs

The forecast capital and operating cost estimates are based on previous performance, taking the budget updates for the new financial year into account. Therefore, the forecasted costs are reliable, and at minimum meet the confidence levels of a PFS. A record of the forecast and budget costs is maintained by the operation, allowing for an assessment of the alignment of the forecast and actual costs. The forecast costs are reliable and known to a high level of confidence. The approach used for the estimation of capital and operating costs is consistent with industry practice.

The capital and operating costs for Free State Tailings have been estimated at PFS level.


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19Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

19.1Key Economic Assumptions and Parameters

The CODM forms, reviews, signs-off and distributes economic assumptions to its various business units. On an annual basis, during the period October to November, long-term commodity prices and exchange rates forecasts’, are received from various financial institutions. In addition, a specialist in Economics from a reputable economics company based in South Africa, provides expert views on the global markets, forward looking commodity prices, exchange rates, consumer price index, production price index, electricity cost and consumable increases. All factors are analysed, cognisance is taken of the requirements of the NYSE and JSE markets, and a proposal is presented to the CODM for recommendation and approval. These assumptions are then applied at Free State Surface Operations, along with specific operational considerations.

19.1.1Metallurgical Recoveries

The metallurgical recoveries used in the economic analysis are provided in Table 11-3. These are based on metallurgical test work, and historical results.

19.1.2Gold Price

The proposed gold price (USD1,546/oz) is the price that is used by Harmony for the Free State Surface Operations annual planning cycle and forms the basis for the gold price assumptions used in the Phoenix Project, Central Plant Reclamation and Free State Tailings cash flows. The gold price and conversions used in the calculation of the various gold prices is presented in Table 19-1.

Table 19-1: Conversions Used in Gold Price Calculations


Economic Factors	Gold Price (USD/oz)	Conversion Factor (oz/kg)	Exchange Rate (ZAR:USD)	Gold Price (ZAR/kg)
2022 Mineral Resource	1,723	32.15	15.35	850,191
2022 Mineral Reserve	1,546	32.15	15.35	763,000
2023 forecasted gold price	1,546	32.15	15.35	763,000
Notes: 1. Forecasted gold prices as used in the Phoenix, Central Plant Reclamation and Free State Tailings cash flows.

19.1.3Exchange Rate

In addition, the CODM has reviewed the ZAR:USD exchange rate performance over the past three years, for the period June 2018 - June 2021 (Table 19-2).

Table 19-2: ZAR:USD Exchange Rate Performance (July 2019 – June 2022)


Period			Average Exchange Rate (ZAR:USD)
July 2019 to June 2020			15.68
July 2020 to June 2021			15.41
July 2021 to June 2022			14.75
3-Year Ave. (not weighted)			15.28

The proposed spot exchange rate of 15.35 ZAR:USD is the exchange rate that is used by Harmony for the Free State Surface Operations annual planning cycle and forms the basis for the ZAR:USD exchange rate assumptions used in the Phoenix Project, Central Plant Reclamation and Free State Tailings.


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Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast

19.1.4Royalties

Royalty is an expense paid to the government of South Africa and is accounted for only in the Central Plant Reclamation cash flow model. Phoenix does not pay royalties on the back of being a joint venture with a BBBEE company.

19.1.5Capital Expenditure

Detailed capital costs can be found for Central Plant Reclamation and Free State Tailings in Table 18-2 and Table 18-4, respectively. There is no capital expenditure required for Phoenix Project.

19.1.6Operating Expenditure

The operating costs are determined as a function of the cash working costs of the mining and mineral processing plant activities, and ongoing capital development for mining. Detailed operating costs are presented for Phoenix Project in Table 18-1 and for Central Plant Reclamation in Table 18-2. Free State Tailings has used an average operating cost of ZAR64.26/t.

19.1.7Working Capital

Movements in working capital are accounted for in the economic analysis; they are not however provided as a separate line item within the cash flows.

19.1.8Taxes

19.1.9Closure Cost and Salvage Value

The closure cost estimates, and the provision thereof is presented in Section 17.1. No salvage value has been accounted for in the economic analysis.


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19.1.10Summary

The key assumptions used in the cash flow are summarised for Phoenix Project, Central Plant Reclamation and Free State Tailings in Table 19-3, Table 19-4 and Table 19-5, respectively.

Table 19-3: Key Economic Assumptions and Parameters for Phoenix Project Cash Flow


Parameter	Unit	Value
Production Rate	ktpm	16.7
Gold Recovery	%	45.00
Royalty	%	0.00
Tax Rate	%	Formula
Gold Price	ZAR/kg	763,000
Exchange Rate	USD:ZAR	15.35
Discount Rate	%	9.00

Table 19-4: Key Economic Assumptions and Parameters for Central Plant Reclamation Cash Flow


Parameter	Unit	Value
Production Rate	ktpm	10.5
Gold Recovery	%	48.00
Royalty	%	Formula
Tax Rate	%	Formula
Gold Price	ZAR/kg	763,000
Exchange Rate	USD:ZAR	15.35
Discount Rate	%	9.00

Table 19-5: Key Economic Assumptions and Parameters for Free State Tailings Cash Flow


Parameter	Unit	Value
Production Rate	ktpm	8.5
Gold Recovery	%	50.13
Royalty	%	Formula
Tax Rate	%	Formula
Gold Price	ZAR/kg	763,000
Exchange Rate	USD:ZAR	15.35
Discount Rate	%	9.00
LOM	Years	51.00

19.2Economic Analysis

Harmony's respective business units and its associated operating sites consider the economic assumptions discussed in Section 19.1 during their respective planning and analysis processes.

The discounted cash flow model is used to calculate the NPV of the investments. The NPV for the spot metal price, for Phoenix Project is ZAR352m and for Central Plant Reclamation is ZAR421m at a discount rate of 9%. Free State Tailings is included in the Phoenix Project and Central Plant Reclamation cash flows. The NPV is calculated on a cash flow that accounts for factors such as:

•mining and ore processing working costs;

•royalty payments;

•capital costs, including costs allocated to ongoing development;

•any significant project work considered as major projects; and

•costs deemed as abnormal expenditure.


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19.2.1Phoenix Economic Analysis

The operating cost model used for the financial evaluation was prepared in order to determine the NPV for Phoenix LOM. Cost estimates are zero-based on certain elements such as capital, where other costs are planned according to actual annual operational information (Table 19-6).

19.2.2Central Plant Reclamation Economic Analysis

The operating cost model used for the financial evaluation was prepared in order to determine the NPV for Central Plant Reclamation LOM. The costs are planned according to actual annual operational information (Table 19-7).

19.2.3Free State Tailings Economic Analysis

Free State Tailings’ economic analysis is included in the Phoenix Project and Central Plant Reclamation cash flows.


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Table 19-6: Phoenix Project Cash Flow


Parameter	Unit	Total	2023	2024	2025	2026	2027	2028
Tonnes Milled	kt	36,518.72	6,080.90	6,097.56	6,080.90	6,080.90	6,080.90	6,097.56
Grade	g/t	0.13	0.13	0.13	0.13	0.13	0.13	0.12
Gold Recovered	kg	4,690.36	773.46	787.96	782.36	814.64	772.54	759.40
Revenue	ZAR(m)	3,578.74	590.15	601.21	596.94	621.57	589.45	579.42
Operating Cost	ZAR(m)	2,996.96	487.53	494.51	497.36	505.44	505.44	506.68
Capital Costs	ZAR(m)	111.66	10.26	35.60	53.80	6.00	6.00	0.00
EBIT	ZAR(m)	470.12	92.37	71.10	45.77	110.13	78.01	72.74
NPV - (low discount rate)	@9%	352,024
NPV - (medium discount rate)	@12%	322,840
NPV - (high discount rate)	@15%	297,379


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Table 19-7: Central Plant Reclamation Cash Flow


Parameter	Unit	Total	2023	2024	2025	2026	2027	2028	2029	2030	2031
Tonnes Milled	kt	47,910.46	3,832.50	3,843.00	3,832.50	3,832.50	3,843.00	3,832.50	3,843.00	3,832.50	3,832.50
Grade	g/t	0.13	0.14	0.14	0.14	0.13	0.12	0.12	0.13	0.13	0.13
Gold Produced	kg	6,334.08	539.00	531.26	520.61	493.01	469.54	465.65	505.35	507.81	505.89
Revenue	ZAR(m)	4,832.90	411.26	405.35	397.22	376.17	358.26	355.29	385.59	387.46	385.99
Operating Cost	ZAR(m)	4,016.14	310.76	315.05	316.76	321.67	322.45	321.67	322.45	321.67	321.67
Capital Costs	ZAR(m)	42.05	3.30	6.75	21.00	9.00	2.00	0.00	0.00	0.00	0.00
Royalties	ZAR(m)	77.94	5.70	4.64	6.74	5.52	4.50	4.47	6.98	7.20	7.08

EBIT	ZAR(m)	696.77	91.49	78.92	52.72	39.98	29.32	29.16	56.16	58.59	57.25
NPV - (low discount rate)	@9%	420,890
NPV - (medium discount rate)	@12%	366,965
NPV - (high discount rate)	@15%	324,114


Parameter	Unit	Total	2032	2033	2034	2035
Tonnes Milled	kt	47,910.46	3,832.50	3,843.00	3,832.50	1,878.46
Grade	g/t	0.13	0.13	0.14	0.13	0.13
Gold Produced	kg	6,334.08	515.47	524.57	515.47	240.44
Revenue	ZAR(m)	4,832.90	393.30	400.25	393.30	183.46
Operating Cost	ZAR(m)	4,016.14	321.67	322.45	321.67	176.22
Capital Costs	ZAR(m)	42.05	0.00	0.00	0.00	0.00
Royalties	ZAR(m)	77.94	7.70	8.23	7.70	1.50

EBIT	ZAR(m)	696.77	63.94	69.57	63.94	5.75
NPV - (low discount rate)	@9%	420,890
NPV - (medium discount rate)	@12%	366,965
NPV - (high discount rate)	@15%	324,114


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19.3Sensitivity Analysis

The economic assumptions, cash flow breakdown and economic analysis contribute to the basis for the sensitivity analysis. Harmony has reviewed its exposure in terms of South Africa’s political instability, the COVID-19 pandemic, the currency exchange rate, and the gold price, on its financial assets and financial liabilities, and has determined the sensitivities for a ±10% variance. Management considers this range to be a reasonable change given the volatility in the market.

The sensitivity analysis is completed for variations in commodity price (ZAR/kg), total operating costs, and capital costs. The base case in the analysis below is the economic results emanating from the LOM plan (Table 19-6 and Table 19-7.

The sensitivity analysis for Phoenix, Central Plant Reclamation and Free State Tailings LOMs is based on a change in a single assumption while holding all other assumptions constant. In practice, this is unlikely to occur, as risks and/or opportunities will have an impact on the cash flows, and changes in some of these assumptions may be correlated.


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19.3.1Phoenix Sensitivity Analysis

The sensitivities on gold prices and opex are calculated and presented in Table 19-8 and Table 19-9. No sensitivity analysis was undertaken for capex as there are no capital requirements.

The sensitivity analyses indicated that Phoenix’s cash flow is most sensitive to changes in the gold price, closely followed by changes in operating costs.

Table 19-8: Phoenix Project Gold Price Sensitivity on NPV


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Operating Cost (ZAR/t)	Capital Cost (ZARm)	NPV (ZARm)
10%	4,477	839,300	80.17	0.00	708.83
LOM Plan	4,477	763,000	80.17	0.00	352.02
-10%	4,477	686,700	80.17	0.00	173.36

Table 19-9: Phoenix Project Operating Cost Sensitivity on NPV


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Operating Cost (ZAR/t)	Capital Cost (ZARm)	NPV (ZARm)
10%	4,477	763,000	88.19	80.70	269.53
LOM Plan	4,477	763,000	80.17	80.70	352.02
-10%	4,477	763,000	72.15	80.70	707.46

19.3.2Central Plant Reclamation Sensitivity Analysis

The sensitivities on gold prices and opex are calculated and presented in Table 19-10 and Table 19-11. No sensitivity analysis was undertaken for capex.

The sensitivity analyses indicated that Central Plant Reclamation is most sensitive to changes in gold price.

Table 19-10: Central Plant Reclamation Gold Price Sensitivity on NPV


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Operating Cost (ZAR/t)	Capital Cost (ZARm)	NPV (ZARm)
10%	6,334	839,300	81.09	42.05	781.72
LOM Plan	6,334	763,000	81.09	42.05	420.89
-10%	6,334	686,700	81.09	42.05	213.64

Table 19-11: Central Plant Reclamation Operating Cost Sensitivity on NPV


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Operating Cost (ZAR/t)	Capital Cost (ZARm)	NPV (ZARm)
10%	6,334	763,000	89.20	42.05	335.52
LOM Plan	6,334	763,000	81.09	42.05	420.89
-10%	6,334	763,000	72.98	42.05	791.01

19.3.3Free State Tailings Sensitivity Analysis

No sensitivity analysis was undertaken as Free State Tailings are included with the Phoenix and Central Plant cash flows.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

20Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

Free State Surface Operations treats various TSFs and WRDs in the Welkom and Virginia area. Harmony is the major gold producer in the area and as such has access to the majority of the surface deposits in the area.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

21Other Relevant Data and Information

Section 229.601(b)(96) (21)

Public disclosure reports on Free State Surface Operations operational, financial and environmental performance are available on the Company’s corporate website. The following reports are relevant to this TRS:

•Integrated annual report 2020/2021;

•ESG report 2020/2021;

•Financial report 2020/2021;

•Report to shareholders 2020/2021;

•Operational report 2020/2021; and

•Reserve Reclamation Pre-feasibility Study Cat 2 2021.


Effective Date: 30 June 2022 92


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

22Interpretation and Conclusions

Section 229.601(b)(96) (22)

Free State Surface Operations is a wholly owned asset of Harmony, which is comprised of Phoenix Project, Central Reclamation Operations and the Free State Tailings. The operations are accessible and have good regional infrastructure. Management has a good handle on aspects pertaining to legal and environmental matters with respect to operating within the South African law, as regulated by the MPRDA, and supporting legislation.

Phoenix, Central Plant Reclamation and Free State Tailings have a significant Mineral Resource base, comprising gold-bearing TSFs and WRDs. These man-made deposits have their own depositional and mineralisation characteristics, and the exploration, modelling and estimation practices informing Mineral Resource estimates for these types of deposits is well established. The exploitation of these deposits is either through reclamation by hydraulic monitoring guns or through loading and hauling operations. These mining methods are also well established, and Free State Surface Operations has all the necessary infrastructure required to implement the mine plan.

Harmony contracted SGS (previously Gold Mine Sand and Slime Dam Drillers), a drilling company with over two decades of TSF drilling experience, to drill a series of initial and infill drillholes on nine separate TSF’s (Saaiplaas Complex, FSS1, FSS4, FSN6 and FSS7) in 2017 and 2018 and again in February 2020 to complete infill drilling, primarily for metallurgical testing, on the Saaiplaas 3 and FSS6 TSF’s. The current samples from the two plants, Phoenix and Central, are analysed at Harmony Free State Laboratory.

All the TSFs in the plan have been drilled and have Mineral Resource models and the financial model is run every year based on the new gold price signed off by Cooperate Office (Randfontein) and cost models. Although the WRDs are not drilled, Mineral Resources were declared based on the volume surveyed less depletions and the grade is based on history as sampled at the belt.

The Inferred Mineral Resources remained constant at 0.094Moz.

The Inferred Mineral Resources for the Free State Surface Operations WRDs, exclusive of Mineral Reserves, increased from 0.225Moz to 0.234Moz in 2022 due to deposition on Tshepong WRD.

The Mineral Reserves for the TSFs decreased from 5.873Moz to 5.657Moz (-0.217Moz) mainly due to depletions at FSS5, Brand A and Dam 21.

No Mineral Reserves were declared for the WRDs.

In the previous year’s business plan, four business units were included namely, Phoenix, Central, St Helena Project and other Free State Tailings. In the BP 2023 business plan, St Helena Project was done away with and the TSFs that were planned under St Helena have been included under Phoenix and Free State Tailings.

Under the assumptions in this TRS, Phoenix, Central Plant Reclamation and Free State Tailings show a positive cash flow over the LOM which supports the Mineral Resource and Mineral Reserve estimates and the mine plan is achievable under the set of assumptions and parameters used. The TSF’s for Phoenix and Central that are being reclaimed currently are planned every year for the new business plan after the depletions have been subtracted to make sure that we plan only what is available and payable.


Effective Date: 30 June 2022 93


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

Regarding the Free State Tailings, a financial model is run every year on the new commodity prices and costs to make sure that they are still above cut-off to be included in the business plan. However, the sensitivity was run on all the TSFs together, including the ones processed at Phoenix and Central.


Effective Date: 30 June 2022 94


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

23Recommendations

Section 229.601(b)(96) (23)

The following recommendations have been provided by the QPs:

•to investigate a method of reclaiming when doing floor cleaning that will help with achieving the volumes planned as currently. The operation currently struggles to achieve the planned volumes when doing flow cleaning;

•planning of all TSFs in the business plan should be undertaken in Deswik CAD for greater accuracy to be achieved in the estimation process; and

•routine monthly surveying of the reclaimed areas using a drone for more accurate reconciliation on volume and the remaining Mineral Resources.


Effective Date: 30 June 2022 95


			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

24References

Section 229.601(b)(96) (24)

Deiss, A.M., and Mitchell, G.R. (July 2018). Technical Report for the Mineral Resource Estimate of the Free State Tailing Storage Facilities, Welkom, South Africa, ExplorMine Consultants. Harmony Gold Mining Company Limited, internal Report, 55pp.

Deiss, A.M. and Mitchell, G.R. (July 2019). Technical Report for the Mineral Resource Estimate of the Free State Tailing Storage Facilities, Welkom, South Africa - Update, ExplorMine Consultants. Harmony Gold Mining Company Limited, internal Report, 61pp.

Harmony Project Office, (July 2021). Harmony Reserve Reclamation Prefeasibility study Cat 2, 150pp.

https://www.gold.org/goldhub/data/gold-prices. Accessed 22 July 2022.

Mariba, E. (July 2020). Harmony Tailings evaluation: Saaiplaas Dam 3 and FSS Tailings Storage Facility samples. Maelgwyn South Africa (Pty) Ltd, internal report, 19pp.

Mitchell, G., and Molelengoane, T., (31 July 2020). Technical Report for the Mineral Resource Estimate of the Free State Tailing Storage Facilities, Welkom, South Africa – Update, ExplorMine Consultants, 71pp.

Powell, J.R. (2011). The General Method of the Geostatistical Evaluation of the Sampling Drill Hole Data of a Harmony Mine Dump/Tailings Dam. Harmony Gold Mining Company Limited, internal Report, 27pp.

Robb, L.J., and Meyer, F., 1995. The Witwatersrand Basin, South Africa: Geological framework and mineralisation processes. Ore Geology Reviews, 10(2), 67-94.

Robb, L.J., Robb, V.M., 1998. Gold in the Witwatersrand Basin. In: Wilson, M.G.C., Anhaeusser, C.R. (Eds.), The Mineral Resources of South Africa. Handbook. Council for Geoscience, 294–349.

South African Revenue Services. (2021, July 29). South African Revenue Services. Retrieved from Tax Relief Measures: https://www.sars.gov.za/media/tax-relief-measures/

Whillier, J. (2010). Slimes Dam Drilling, Sample Preparation & Sample Handling Procedures – Free State Tailings Uranium Project. Harmony Gold Mining Company Limited, internal procedure, 12pp.

World Gold Council. (2022, July 13). World Gold Council, Gold Hub, Gold mine production: Gold Production by Country | Gold Production | Goldhub

Yaldwyn, R. (2010). Free State Tailings Storage Facilities Drilling Programme. SRK Consulting, 19pp.


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			Technical Report Summary for Free State Surface Operations, Free State Province, South Africa

25Reliance on Information Provided by the Registrant

Section 229.601(b)(96) (25)

Table 25-1: Other Specialists


Name	Specialist	Area of Responsibility	Association / Company
M Mbongo	Finance/Costing	Financial Manager	Harmony Surface Sources
H Mashaba	Environmental	Snr Environmental Officer	Central Office
T Hlobo	Processing	Plant Manager	Saaiplaas Plant
E Kleinhans	Processing	Plant Manager	Central Plant
T Leonard	Projects	Project Manager	Central Office
O Moiloa	Assaying	Laboratory Manager	Harmony Free State Laboratory


Effective Date: 30 June 2022 97

HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Moab Khotsong Operations

Free State Province, South Africa

Effective Date: 30 June 2022

Final Report Date: 30 July 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.


Effective Date: 30 June 2022 i


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Signature Page

/s/ Leanne Brenda Freese

___________________________________

Ms Leanne Brenda Freese

B.Sc. (Hons) Geol

SACNASP (400294/14)

Ore Reserve Manager, Moab Khotsong Operations

Harmony Gold Mining Company Limited

Effective Date: 30 June 2022

Final Report Date: 30 July 2022


Effective Date: 30 June 2022 ii


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

List of Contents


1	Executive Summary			1
2	Introduction			7
3	Property Description and Location			8
	3.1	Mineral Tenure		8
	3.2	Property Permitting Requirements		8
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			10
	4.1	Accessibility		10
	4.2	Physiography and Climate		10
	4.3	Local Resources and Infrastructure		10
5	History			11
	5.1	Historical Ownership and Development		11
	5.2	Historical Exploration		11
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		12
	5.4	Past Production		12
6	Geological Setting, Mineralisation and Deposit			14
	6.1	Regional Geology		14
	6.2	Local Geology		14
	6.3	Property Geology		19
		6.3.1	Vaal Reef Lithology	19
		6.3.2	C Reef Lithology	19
		6.3.3	Structure	19
	6.4	Mineralisation		19
		6.4.1	Vaal Reef Mineralisation	21
		6.4.2	C Reef Mineralisation	21
		6.4.3	Alteration	21
	6.5	Deposit Type		21
	6.6	Commentary on Geological Setting, Mineralisation and Deposit		21
7	Exploration			22
	7.1	Geophysical Seismic Survey		22
	7.2	Topographic Surveys		22
	7.3	Underground Mapping		22
	7.4	Channel Sampling Methods and Sample Quality		22
	7.5	Surface Drilling Campaigns, Procedures, Sampling, Recoveries and Results		24
		7.5.1	Drilling Methods	24
		7.5.2	Collar and Downhole Surveys	24
		7.5.3	Logging Procedure	24
		7.5.4	Drilling Results	24
		7.5.5	Core Recovery	29
		7.5.6	Sample Length and True Thickness	29
	7.6	Underground Drilling Campaigns, Procedures, Sampling, Recoveries and Results		29
		7.6.1	Drilling Methods	30
		7.6.2	Collar and Downhole Surveys	30
		7.6.3	Logging Procedures	30
		7.6.4	Drilling Results	30
		7.6.5	Core Recovery	31
		7.6.6	Sample Length and True Thickness	31
	7.7	Hydrogeological Data		31
	7.8	Geotechnical Data		31
	7.9	Commentary on Exploration		31
8	Sample Preparation, Analyses and Security			33


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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


	8.1	Sampling Method and Approach		33
		8.1.1	Channel Samples	33
		8.1.2	Core Samples	33
	8.2	Density Determination		34
	8.3	Sample Security		34
	8.4	Sample Storage		34
	8.5	Laboratories Used		34
	8.6	Laboratory Sample Preparation		34
	8.7	Assaying Methods and Analytical Procedures		35
	8.8	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)		35
		8.8.1	Field QAQC	35
		8.8.2	Laboratory QAQC	36
		8.8.3	QAQC results	36
	8.9	Comment on Sample Preparation, Analyses and Security		37
9	Data verification			38
	9.1	Databases		38
	9.2	Data Verification Procedures		38
	9.3	Limitations to the Data Verification		38
	9.4	Comment on Data Verification		38
10	Mineral Processing and Metallurgical Testing			39
11	Mineral Resource Estimate			40
	11.1	Geological Database		40
	11.2	Global Statistics		40
	11.3	Geological Interpretation		41
		11.3.1	Vaal Reef Geozones and EDs	41
		11.3.2	C Reef Geozones and EDs	42
	11.4	Structural Wireframe Model		42
	11.5	Compositing		42
	11.6	Capping		42
	11.7	Variography		46
	11.8	Mineral Resource Estimation Methods		46
	11.9	Estimation Parameters		46
	11.10	Relative Density and Tonnage Calculation		48
	11.11	Model Validation		48
	11.12	Mineral Resource Evaluation		49
	11.13	Mineral Resource Classification and Uncertainties		49
	11.14	Mineral Resource Estimate		50
	11.15	Audits and Reviews		51
	11.16	Mineral Resource Reconciliation		51
	11.17	Comment on Mineral Resource Estimates		54
12	Mineral Reserve Estimate			55
	12.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve		55
	12.2	Modifying Factors		55
	12.3	Mineral Reserve Estimate		56
	12.4	Mineral Reserve Reconciliation		57
	12.5	Commentary on Mineral Reserve Estimate		57
13	Mining Method			59
	13.1	Mining Operations		59
		13.1.1	Scattered Mining	59
		13.1.2	Shaft Pillar Extraction	62
	13.2	Mine Design		62


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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


		13.2.1	Mine Design Parameters	62
	13.3	Mine Plan Development and Life of Mine (“LOM”) Schedule		63
	13.4	Geotechnical and Geohydrological Considerations		63
	13.5	Dilution and Grade Control		65
	13.6	Ore transport		65
	13.7	Mining Equipment and Machinery		65
	13.8	Mining Personnel		66
	13.9	Commentary on Mining Method		66
14	Processing and Recovery Methods			67
	14.1	Mineral Processing Description		67
	14.2	Plant Throughput, Design, Equipment Characteristics and Specifications		67
	14.3	Energy, Water, Process Material and Personnel Requirements		70
		14.3.1	Energy	70
		14.3.2	Water	70
		14.3.3	Process Material	70
		14.3.4	Personnel	70
	14.4	Commentary on the Processing and Recovery Methods		70
15	Infrastructure			72
	15.1	Surface Infrastructure		72
		15.1.1	Ore and Waste Rock Storage Facilities	72
		15.1.2	Tailings Storage Facilities	72
		15.1.3	Power and Electrical	76
		15.1.4	Water Usage	76
	15.2	Underground Infrastructure and Shafts		76
		15.2.1	Great Noligwa	76
		15.2.2	Moab Khotsong	76
		15.2.3	Zaaiplaats	76
	15.3	Commentary on Infrastructure		78
16	Market Studies			79
	16.1	Market Overview		79
		16.1.1	New Mine Production	79
		16.1.2	Recycling	79
	16.2	Global Consumption and Demand		79
		16.2.1	Jewellery	79
		16.2.2	Investment	79
		16.2.3	Currency	80
	16.3	Gold Price		80
		16.3.1	Historical Gold Price	80
		16.3.2	Forecast Gold Price	80
		16.3.3	Harmony Group Gold Hedging Policy	80
	16.4	Commentary on Market Studies		83
	16.5	Material Contracts		83
17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			84
	17.1	Results of Environmental Studies		84
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		84
	17.3	Permitting and Licences		85
	17.4	Local Stakeholder Plans and Agreements		86
	17.5	Mine Closure Plans		86
	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups		87


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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


	17.7	Local Procurement and Hiring		87
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		87
18	Capital and Operating Costs			89
	18.1	Capital Costs		89
	18.2	Operating Costs		89
	18.3	Comment on Capital and Operating Costs		89
19	Economic Analysis			91
	19.1	Key Economic Assumptions and Parameters		91
		19.1.1	Metallurgical Recoveries	91
		19.1.2	Gold Price	91
		19.1.3	Exchange Rate	91
		19.1.4	Royalties	92
		19.1.5	Capital Expenditure	92
		19.1.6	Operating Expenditure	92
		19.1.7	Working Capital	93
		19.1.8	Taxes	93
		19.1.9	Closure Cost and Salvage Value	93
		19.1.10	Summary	93
	19.2	Economic Analysis		93
	19.3	Sensitivity Analysis		96
20	Adjacent properties			98
21	Other Relevant Data and Information			99
22	Interpretation and Conclusions			100
23	Recommendations			102
	23.1	Zaaiplaats Exploration Drilling		102
	23.2	Mineral Resource Growth Opportunities		102
	23.3	Zaaiplaats Design and Scheduling		102
	23.4	Investigation of Inventory Areas		102
24	References			103
25	Reliance on Information Provided by the Registrant			104


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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

List of Figures


Figure 3-1: Location of Moab Khotsong			9
Figure 3-2: Legal Tenure of Moab Khotsong			9
Figure 5-1: Graph of Past Production – Tonnes and Gold Grade			13
Figure 5-2: Graph of Past Metal Production			13
Figure 6-1: Regional Geology of the Witwatersrand Basin			15
Figure 6-2: Stratigraphy of the CRG in the Witwatersrand Supergroup			16
Figure 6-3: Stratigraphic Column of the Free State Goldfield			17
Figure 6-4: Structure Plan for Moab Khotsong			18
Figure 6-5: Top Mine and Middle Mine Cross Section and Plan			20
Figure 6-6: Zaaiplaats Cross Section and Plan			20
Figure 7-1: Location of Channel Samples Collected from the Vaal Reef to Date			23
Figure 7-2: Location of Channel Samples Collected from the C Reef to Date			23
Figure 7-3: Location of Surface and Underground Drill Holes Intersecting the Vaal Reef			25
Figure 7-4: Location of Surface and Underground Drill Holes Intersecting the C Reef			26
Figure 11-1: Vaal Reef Estimation Domains			44
Figure 11-2: C-Reef Estimation Domains			45
Figure 11-3: Distribution of the Vaal Reef Gold Values at Moab Khotsong			47
Figure 11-4: Distribution of the C Reef Gold Values at Moab Khotsong			48
Figure 11-5: Location of Moab Khotsong Vaal Reef Mineral Resources and Mineral Reserves			52
Figure 11-6: Location of Moab Khotsong C Reef Mineral Resources and Mineral Reserves			53
Figure 12-1: Graph of Moab Khotsong Mineral Reserve Reconciliation			58
Figure 13-1: Plan Showing the Mining Sequence and LOM Extents at Moab Khotsong			60
Figure 13-2: Plan view of a Typical Footwall Crosscut at Moab Khotsong			61
Figure 13-3: Cross Section of the Development Blueprint at Moab Khotsong			61
Figure 13-4: Graph of Moab Khotsong LOM Plan - Ore Milled			64
Figure 13-5: Graph of Moab Khotsong LOM Plan – Gold Produced (kg)			64
Figure 14-1: Schematic Flow Diagram of the Metallurgical Process			68
Figure 14-2: Graph of Historical Recovery (18 month actual)			71
Figure 15-1: Moab Khotsong Surface Mine Layout and Infrastructure			73
Figure 15-2: Great Noligwa Mine Surface Infrastructure			74
Figure 15-3: Moab Khotsong Mine Surface Infrastructure			75
Figure 15-4: Great Noligwa and Moab Khotsong’s Mine Shaft and Underground Infrastructure			77
Figure 16-1: Graph of Annual Gold Price History – ZAR/kg			82
Figure 16-2: Graph of Consensus View of Forecast Gold Price			82
Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast			92


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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

List of Tables


Table 1-1: Summary of the Moab Khotsong Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8			3
Table 1-2: Summary of the Moab Khotsong Mineral Reserves as at 30 June 2022 1-5			4
Table 1-3: Summary of LOM Capital Cost Estimate for Moab Khotsong			5
Table 1-4: Summary of Operating Cost Estimates for Moab Khotsong			5
Table 1-5: Status of Environmental Permits and Licences			6
Table 2-1: QP Qualification, Section responsibilities and Personal Inspections			7
Table 3-1: Summary of Mining Rights for Moab Khotsong			8
Table 5-1: Summary of Historical Ownership Changes and Activities at Moab Khotsong			11
Table 5-2: Summary of Previous Moab Khotsong Mineral Resources as at 30 June 2021 (Exclusive of Mineral Reserves)			12
Table 5-3: Summary of the Previous Moab Khotsong Mineral Reserves as at 30 June 2021			12
Table 7-1: Summary of Surface Drill holes Intersecting the Vaal Reef and C Reef (pre 1980 – 2021)			27
Table 7-2: Summary of Surface and Underground Drilling by Company			29
Table 7-3: Drill hole Acceptance Criteria			29
Table 8-1: Field QAQC Samples			35
Table 8-2: Summary of Analytical Quality Control Data			36
Table 8-3: Summary of Moab Khotsong CRM Performance			37
Table 11-1: Summary of the Gold Assay Descriptive Statistics			41
Table 11-2: Capping Values by Reef and Geozone			43
Table 11-3: Harmony Economic Assumptions (30 June 2022)			49
Table 11-4: Geological Losses Applied by Mineral Resource Category			50
Table 11-5: Summary of Moab Khotsong Mineral Resource Estimate as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8			50
Table 12-1: Moab Khotsong Mineral Reserves Modifying Factors (30 June 2022)			56
Table 12-2: Summary Moab Khotsong Mineral Reserve Estimate (30 June 2022) 1 - 5			56
Table 13-1: Key Mine Design Parameters			63
Table 14-1: Key Equipment Specifications at Great Noligwa Gold Plant			69
Table 14-2: Design Throughput Versus Actual Throughput at Great Noligwa Gold Plant			69
Table 14-3: Leaching Process Material and Properties			69
Table 14-4: Consumables			70
Table 16-1: Material Contracts			83
Table 17-1: Status of Environmental Permits and Licences			86
Table 18-1: Summary of LOM Capital Cost Estimate for Moab Khotsong			90
Table 18-2: Summary of Operating Cost Estimates for Moab Khotsong			90
Table 19-1: Conversions Used in Gold Price Calculations			91
Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)			92
Table 19-3: Key Economic Assumptions and Parameters			93
Table 19-4: Moab Khotsong Cash Flow			94
Table 19-5: Gold Price Sensitivity Analysis @9% Discount rate			96
Table 19-6: Total Operating Cost Sensitivity Analysis @ 9% Discount rate			96
Table 19-7: Gold price, Operating Costs, and Production Variation Sensitivity Analysis @ 9% Discount rate			97
Table 25-1: Other Technical Experts			104


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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
°C			degrees Celsius
µm			Micrometres
2D			Two-dimensional
3D			Three-dimensional
AE			Abnormal expenditure
Ag			Silver
AngloGold			AngloGold Limited
Au			Gold
Ave.			Average
BMD			Below mine datum
Bn			Billion
c.			Approximately
CIP			Carbon-In-Pulp
cm			Centimetre
cmg/t			Centimetre-grams per tonne
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COP			Code of Practice
CRG			Central Rand Group
CRM			Certified Reference Material
CV			Coefficient of Variation
DMRE			Department of Mineral Resources and Energy
DWS			Department of Water and Sanitation
EIA			Environmental Impact Assessment
EMPR			Environmental Management Programme
EMS			Environmental Management System
ESG			Environmental Social and Governance
ETF’s			Exchange Traded Funds
EW-SX			Electro-wining solvent extraction
FX			Foreign Exchange rate
g			Gram
g/t			Grams per metric tonne
GHG			Greenhouse gas
GISTM			Global Industry Standard on Tailings Management
Harmony			Harmony Gold Mining Company Limited
HPE			Hydro-powered
kg			Kilogram
km			Kilometre
km2			Square kilometre
kWh			Kilowatt-hour
LDL			Lower detection limit
LIB			Long Inclined Borehole
LOM			Life of Mine
Ltd			Limited
m			Metre
M			Million
m3/hr			Cubic metres per hour
masl			Metres above sea level
MCC			Mining Charter Compliance


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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


MCF			Mine Call Factor
Mintek			South Africa's national mineral research organisation
Moz			Million troy ounces
MPRDA			Mineral and Petroleum Resources Development Act, 28 of 2002
Mt			Million tonnes
Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
NEMA			National Environmental Management Act, 107 of 1998
No.			Number
NPV			Net present value
oz			Troy ounce
PSD			Particle Size Distribution
Pty			Proprietary
QA/QC			Quality Assurance/Quality Control
QP			Qualified Person
ROM			Run-of-Mine
SACNASP			South African Council for Natural Scientific Professions
SAMREC			The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves
SEC			Securities and Exchange Commission
SGM			Sequential Grid Mining
SLP			Social Labour Plan
STD			Standard Deviation
t			Metric tonne
t/m3			Tonne per cubic metre
TRS			Technical Report Summary
TSF			Tailings Storage Facility
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
WRG			West Rand Group
WUL(s)			Water Use Licence(s)
ZAR			South African Rand
ZAR/kg			South African Rand per kilogram


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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Glossary of Terms


Term			Definition
Co-kriging			A method that is used to predict the value of the point at unobserved locations by sample points that are known to be spatially interconnected by adding other variables that have a correlation with the main variable or can also be used to predict 2 or more variables simultaneously.
Cut-off grade			Cut-off grade is the grade (i.e. the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Dilution			Unmineralized rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Head grade			The average grade of ore fed into the mill.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a Mineral Reserve.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.


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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Modifying Factors			Modifying factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include but are not restricted to; mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product.
			(1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable.
			(2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is:
			(1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and
			(2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must:
			(i) Be either:
			(A) An organization recognized within the mining industry as a reputable professional association; or
			(B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field;
			(ii) Admit eligible members primarily on the basis of their academic qualifications and experience;
			(iii) Establish and require compliance with professional standards of competence and ethics;
			(iv) Require or encourage continuing professional development;
			(v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and
			(vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.
Tailings Freeboard			The vertical height between the beached tailings against the embankment crest and the crest itself.


Effective Date: 30 June 2022 xi


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Person(s) (“QP”) of Harmony Gold Mining Company Limited (“Harmony” or the “Company”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Company’s Moab Khotsong Operations (“Moab Khotsong”). The TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, with an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature of this TRS.

Property Description

Moab Khotsong comprises the underground and surface assets associated with two mines, namely Moab Khotsong Mine and Great Noligwa Mine, which Harmony acquired from AngloGold Ashanti Limited (“AngloGold”) in 2018. Both are deep level gold mines, operating at depths of between 2km and 3km. They are situated directly south of the Vaal River approximately 10km east of the town of Orkney, in the Free State Province of South Africa. The primary reef mined is the Vaal Reef, with additional production being sourced from the C Reef.

Moab Khotsong is sub-divided by major faults into three distinct geographical mining areas. These are referred to as Top Mine, accessed through Great Noligwa shaft, Middle Mine, accessed through Moab Khotsong shaft, and Zaaiplaats accessed through a decline system off the base of the Moab Khotsong shaft.

Harmony’s Moab Khotsong mineral tenure comprises two mining rights covering approximately 10,991 hectares (“ha”), namely:

•NW30/5/1/2/2/15 MR valid from 12 September 2007 to 11 September 2037; and

•NW30/5/1/1/2/16 MR valid from 20 August 2008 to 19 August 2038.

The two mining rights have been successfully converted, executed and registered as new order mining rights at the Mineral and Petroleum Resources Titles Office. These rights include the extraction of gold, silver, nickel and uranium. Both mining rights are valid and remain effective unless cancelled or suspended. Under the Mineral and Petroleum Resources Development Act, 28 of 2002 (“MPRDA”), Harmony is entitled to apply to renew the mining right on its expiry. There are no known legal proceedings that may influence the right to mine.

Ownership

Moab Khotsong is wholly owned by Harmony, including the associated mineral rights. Harmony acquired Moab Khotsong from AngloGold in March 2018.

Geology and Mineralisation

Moab Khotsong is situated within the Klerksdorp Goldfield on the western margin of the Witwatersrand Basin of South Africa, one of the most prominent gold provinces in the world. The major gold bearing conglomerate reefs are mostly confined to the Central Rand Group (“CRG”) of the Witwatersrand Supergroup.

The CRG is up to 2,100m thick in the Vaal River area and the general orientation of the Witwatersrand Supergroup succession in this goldfield is interpreted as southwest-trending and southeast dipping. A series of northeast-trending faults including the Buffelsdoorn, the Kromdraai, the Buffels East and the Jersey Faults, is a key feature of the Klerksdorp Goldfield and the key structural features at Moab Khotsong are related to this series of faults.

Effective Date: 30 June 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Moab Khotsong exploits gold mineralisation occurring in the Vaal Reef. This reef is stratigraphically located near the top of the Johannesburg Sub-group, within the CRG. The Vaal Reef ranges in depth at Moab Khotsong from 1,500m below mine datum (“BMD”) to 3,400m BMD. Gold mineralisation also occurs in the stratigraphically higher C-Reef, which lies approximately 225m above the Vaal Reef. However, the C Reef typically contributes less than 5% to the mining production.

The Vaal Reef consists of a thin basal conglomerate and a thicker upper sequence of conglomerates, which are separated by barren orthoquartzite. The C Reef is an approximately 10cm thick conglomerate, which commonly has a 5mm to 20mm thick carbon seam at the base.

The gold mineralisation at Moab Khotsong succeeded a period of deep burial, fracturing, and alteration. The gold and other elements are believed to have been precipitated through the reaction of hydrothermal fluids at high temperatures along the reef horizons.

Current Status of Exploration, Development and Operation

Great Noligwa Mine was originally developed by the Anglo American Corporation Limited (“AAC”) and known as Vaal River No.8 Shaft. Work on Great Noligwa was initiated in 1968, and the mine produced its first gold in 1972. Great Noligwa Mine reached its peak of mining production in the late 1990s, producing up to 1,000koz of gold per annum. Production has reduced over time and the operation is nearing the end of its life, with current operations concentrated on the mining of the shaft pillar.

The Moab Khotsong Mine was developed by AngloGold and is the youngest of South Africa’s deep-level gold mines. The Middle Mine at Moab Khotsong came into production in 2003, and as such, the Moab Khotsong Mine can be considered a well-established operation producing at steady state.

Zaaiplaats project received Board approval in October 2021. Development has already started, and Mineral Reserves were stated as from June 2021.

The Vaal and C reefs at Moab Khotsong have been extensively explored. Harmony continues to conduct underground production and exploration drilling and channel (chip) sampling. Sampling of underground drill hole intersections, as well as sampling of established stopes on the reef horizon, enable the geological model to be updated monthly as new data is generated. Harmony has budgeted ZAR46.5M for infill exploration drilling, which will be used to improve the level of confidence in the structural model.

Mineral Resource Estimate

The Mineral Resources for both the Vaal Reef and C Reef at Moab Khotsong were estimated by the Harmony QP in Datamine™ Studio RM software. The QP created block models based on a verified electronic database containing surface drill hole data, as well as underground drilling, mapping, and chip sampling data obtained until December 2021. Gold values were estimated using ordinary and simple macro kriging interpolation methods.

The Mineral Resources were originally prepared, classified and reported according to the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 edition (“SAMREC, 2016”). For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Mineral Resource estimate, as at 30 June 2021, exclusive of the reported Mineral Reserves is summarised in Table 1-1.

The QP compiling the Mineral Resource estimates is Ms LB Freese, who is the Ore Reserve Manager, and who is a Harmony employee.

Effective Date: 30 June 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 1-1: Summary of the Moab Khotsong Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	2.331	17.64	41,110
Indicated	3.476	16.96	58,962
Total / Ave. Measured + Indicated	5.807	17.23	100,072
Inferred	2.555	19.09	48,762
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	2.569	0.514	1.322
Indicated	3.832	0.495	1.896
Total / Ave. Measured + Indicated	6.401	0.503	3.217
Inferred	2.816	0.557	1.568
Notes:
1. The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is LB. Freese, who is the Ore Reserve Manager, and who is a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. Tonne measurements are reported in metric units. Gold grades are reported in grams per metric tonne (“g/t”).
4. The Mineral Resources are reported using a cut-off value of 1,500cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as million metric tonnes (“Mt”) rounded to two decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences between metric tonnes (“t”), gold value and metal content.
8. The Mineral Resource estimate is for Harmony’s 100% interest.

Mineral Reserve Estimate

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operational mine planning processes for Middle Mine, Top Mine and Zaaiplaats. Mine planning utilises and takes into consideration historical technical parameters achieved. In addition, Mineral Resource conversion to Mineral Reserves considers Modifying Factors, dilution, ore losses, minimum mining widths, planned mine call and plant recovery factors. In the opinion of the QP, given that Moab Khotsong is an established operation, the Modifying Factors informing the Mineral Reserve estimates would at minimum, satisfy the confidence levels of a Pre-Feasibility Study.

The conversion of the Zaaiplaats Mineral Resources to Mineral Reserves is based upon the 2021 Feasibility Study prepared by Harmony.

The declared Mineral Reserves are depleted to generate the Moab Khotsong cash flows. The economic analysis of the cash flows displays positive results and are deemed both technically and economically achievable.

The reported Mineral Reserve estimate as at 30 June 2022 is summarised in Table 1-2.

The QP compiling the Mineral Reserve estimates is Ms LB Freese, who is the Ore Reserve Manager, and who is a Harmony employee.

Effective Date: 30 June 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 1-2: Summary of the Moab Khotsong Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	2.690	7.48	20,117
Probable	11.984	8.78	105,250
Total (Proved + Probable)	14.675	8.54	125,367
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	2.966	0.218	0.647
Probable	13.211	0.256	3.384
Total (Proved + Probable)	16.176	0.249	4.031
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is LB. Freese, who is the Ore Reserve Manager, and who is a Harmony employee.
2. Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3. Gold content (kg) is recovered gold content after taking into consideration the Modifying Factors.
4. Recovered gold (kg) is based on a conversion factor of 32.151oz/kg.
5. Mineral Reserves are reported using a cut-off grade of 1,800cmg/t determined using a gold price of USD1,546/oz gold.

Capital and Operating Cost Estimates

The capital cost estimates for the LOM plans for Great Noligwa Mine and Moab Khotsong Mine are determined at a corporate level, using the business plan as the basis. The capital cost estimate for Zaaiplaats has been developed as part of the Feasibility Study and is considered to be of industry-standard Feasibility Study level of confidence. The capital costs are those associated with major equipment outside the main operating sections which is termed abnormal expenditure (“AE”), infrastructure development, ongoing capital development (“OCD”) and Mining Charter Compliance (“MCC”). A summary of the capital cost estimates for Moab Khotsong, including Zaaiplaats, are shown in

Table 1-3.

The operating cost estimates for Moab Khotsong and Zaaiplaats are categorised into direct and total costs. A summary of the operating cost estimates for Moab Khotsong, including Zaaiplaats, are shown in Table 1-4.

The capital and operating costs are reported in ZAR terms and on a real basis. The economic analysis, including the capital and operating costs are reported for the period comprising financial year (“FY”) July - June. Both the capital and operating estimates are accounted for in the economic analysis of Moab Khotsong, and the results of the economic analysis for Zaaiplaats demonstrate positive returns.

Permitting Requirements

All relevant mining, and environmental permits and licences are in place and are valid and are shown in Table 1-5. All permits are audited regularly for compliance and no material risks to the operations have been identified.

Based on the environmental studies undertaken to date, there are no sensitive areas or any other environmental factors, including interested and affected parties and/or studies that could have a material effect on the likelihood of eventual economic extraction. Harmony is committed to maintaining good relationships with regulatory authorities, industries, communities, business partners and surrounding stakeholders.

Effective Date: 30 June 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 1-3: Summary of LOM Capital Cost Estimate for Moab Khotsong


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2044)
OCD			5,281,402
AE			1,499,375
Shaft Projects			629,060
Major Projects			6,123,556
MCC			891,420
Total			14,424,813
Notes: Rounding of figures may result in minor computational discrepancies.

Table 1-4: Summary of Operating Cost Estimates for Moab Khotsong


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2044)
Wages - Payroll 1			12,779,501
Wages - Payroll 2			17,327,615
Stores and Materials			9,062,269
Electric Power and Water			20,837,430
Outside Contractors			3,335,620
Other			3,894,316
Direct Costs			67,236,750
Pumping Allocation			1,997,796
Refining Charge			215,127
Uranium Allocation			-431,531
Hostel Cost			-106,834
Backfill Cost			469,533
Plant Treatment Cost			6,467,227
Working Cost Transfer to Capital			-1,055,745
Care and Maintenance			879,243
Re-allocated costs			8,434,817
Mine Overheads Re-allocated			4,475,335
Total			80,146,902

Effective Date: 30 June 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 1-5: Status of Environmental Permits and Licences

Permit Holder

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Harmony

EMPR

NW30/5/1/2/2/15&16MR

DMRE

08-Aug-2019

LOM

Harmony

Atmospheric Emission Licence

AEL/FS/MKO- HGM/14/10/2019

DFFE

13-Mar-2019

30-Jan-26

Harmony

Waste Management Licence

NWP/DK2/WM/ 2018/04/01/02

DARD

21-Jan-2021

LOM

Harmony

Water Use Licence

08/C24B/AGJ/9799

DWS

12-Nov-2020

12-Nov-40

Conclusions

Under the assumptions in this TRS, Moab Khotsong Mine, including Zaaiplaats, show positive cash flows over the life of mine (“LOM”) which supports the Mineral Resource and Mineral Reserve estimates. The mine plan is achievable under the set of assumptions and parameters used.

Recommendations

Exploration drilling has been recommended. The programme has been designed for Mineral Resource replacement to fill the production gap between the current mine and the production build up at the future Zaaiplaats project, and also to refine the geological model for the Zaaiplaats block. Drill targets have been identified and the exploration plan is focusing on improving the geological confidence within the northeastern corner of Lower Mine. Above 101 Level drilling is targeting potential ‘blue sky’ Vaal Reef blocks caught up within the Jersey fault zone. Below 101 Level drilling will upgrade structural confidence of the larger Lower Mine block. Some of the drill holes budgeted for will also be utilized for geotechnical analysis.

Zaaiplaats design and scheduling will be adjusted as new orebody information becomes available through continuous exploration.

Resource growth opportunities have been identified below 76 level. Brown fields exploration is required to confirm Vaal Reef blocks that are situated below 76 Level that can potentially be accessed.

Opportunities in blocks that have been moved into inventory continues to be investigated, especially adjacent areas to current mining with synergies.

Effective Date: 30 June 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

2Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS on Moab Khotsong has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the U.S. SEC Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 - Technical Report Summary. The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand Target which forms part of Harmony’s activities.

This TRS has been prepared from the following sources of information:

•Competent Persons Report (Ore Reserve Statement for period ended 30 June 2022, Technical Report for Moab Khotsong Operations) (prepared by Ms LB Freese) dated 30 June 2022;

•the 2022 and 2023 Harmony Corporate Business Plan; and

•published Harmony 2022 Mineral Resources and Mineral Reserves Report as at 30 June 2022 (“HAR-RR22”).

The TRS was prepared by Qualified Persons (“QPs) employed on a full-time basis by the registrant. The QPs qualifications, areas of responsibility and personal inspection of the property are summarised in Table 2-1.

Table 2-1: QP Qualification, Section responsibilities and Personal Inspections

Qualified Person

Professional Organisation

Qualification

TRS Section Responsibility

Personal Insp.

LB Freese

SACNASP, GSSA

B.Sc. Hons (Geol), GDE (MRM)

All sections

Full time

VH Esterhuizen

SACNASP

BSc Hons (Geol)

Mineral Resource

Full Time

This TRS is the first filing of such a document with the SEC and has an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature.

Effective Date: 30 June 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

3Property Description and Location

Section 229.601(b)(96) (3) (i-vii)

Moab Khotsong comprises two operating underground deep level gold mines, namely the Moab Khotsong Mine and the Great Noligwa Mine. Moab Khotsong is sub-divided by major faults into three distinct geographical mining areas. These mining areas are referred to as Top Mine, accessed through Great Noligwa and Moab Khotsong shafts, Middle Mine, accessed through Moab Khotsong shaft, and Zaaiplaats, a Board approved project to be accessed through a decline system from Moab Khotsong.

Production at Great Noligwa commenced in 1972, whilst Middle Mine came into production in 2003. Zaaiplaats, located to the southwest of Middle Mine, received Board approval in September 2021. Development has already started, and Mineral reserves were issued as from June 2021.

At longitude 26°48'03.3"E and latitude 26°59'12.7"S, Moab Khotsong is approximately 180km from Johannesburg. The mine is located approximately 10km east of Orkney and directly south of the Vaal River, which forms the border between the North West and Free State provinces. The location of Moab Khotsong and the associated mines are shown in Figure 3-1.

3.1Mineral Tenure

Harmony holds two mining rights, which have been successfully converted, executed and registered as new order mining rights at the Mineral and Petroleum Resources Titles Office. These rights cover a total combined area of 10,991.13ha for the mining of gold, silver, nickel and uranium. Both mining rights are valid and remain effective unless cancelled or suspended. Under the MPRDA, Harmony is entitled to apply to review the mining right on its expiry. Harmony’s mining rights pertaining to Moab Khotsong are presented in Table 3-1 and their location is shown in Figure 3-2.

Table 3-1: Summary of Mining Rights for Moab Khotsong

Licence Holder

Licence Type

Reference No.

Effective Date

Expiry Date

Area (ha)

Harmony

NW(15) MR

12-Sep-2007

11-Sep-2037

1,372.47

Harmony

NW(16) MR

20-Aug-2008

19-Aug-2038

9,618.66

Total

10,991.13

There are no known legal proceedings (incl. violations or fines) against the Company which threatens its mineral rights, tenure, or operations.

3.2Property Permitting Requirements

All relevant underground mining and surface right permits, and any other permit related to the work conducted on the property have been obtained and are valid.

Harmony has access to all the properties it requires to conduct its current mining activities. The surface right areas are sufficient in size and nature to accommodate the required surface infrastructure to facilitate current and planned mining and processing operations.

Effective Date: 30 June 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 3-1: Location of Moab Khotsong

Figure 3-2: Legal Tenure of Moab Khotsong

Effective Date: 30 June 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

4Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

4.1Accessibility

Moab Khotsong is located approximately 30km from the town of Klerksdorp, which is on the N12 national road. The mine is located approximately 10km southeast of the town of Orkney. The mine can be reached via tarred roads from all main access points in South Africa. Access to the mines are restricted by security fencing, security guards, booms and lockable gates at the main entrance. In addition, a communication system and access control system monitors personnel entering and leaving the mine properties.

4.2Physiography and Climate

Moab Khotsong is situated approximately 1,310 metres above sea level (“masl”) within the Highveld region of South Africa. The surrounding area is characterised by undulating plains interspersed by rocky peaks. The operations are situated immediately south of the Vaal River. No significant topographical disturbances are expected from mining operations. However, the topography is affected by slimes dams, waste rock dumps and solid waste disposal sites.

Klerksdorp has a semi-arid climate, with warm to hot summers and cool, dry winters. The average annual precipitation is 482mm. Heavy thunderstorms between November and February, during which much of the rainfall occurs.

The seasonal fluctuations in mean temperatures between the warmest and the coldest months vary between a minimum 5°C in winter to a maximum of 29°C in summer. The month of July is generally the coldest month with the hottest month typically being February.

The local climate does not pose any risk to the production at Moab Khotsong, and the operations continue throughout the year.

4.3Local Resources and Infrastructure

The operations are powered by electricity from Eskom Holdings State Owned Company (“SOC”) Limited (“Eskom”), and they have the necessary water and power infrastructure to support their remaining lives, including Zaaiplaats.

Moab Khotsong Mine has a single vertical shaft. Great Noligwa Mine has a twin vertical shaft and a dedicated ore processing plant. The Great Noligwa Shaft Pillar is accessed through Great Noligwa shaft, Middle and Top Mine is accessed through Moab Khotsong shaft and Zaaiplaats will be accessed through a decline system from the base of the Moab Khotsong shaft.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

5History

Section 229.601(b)(96) (5) (i-ii)

5.1Historical Ownership and Development

Great Noligwa Mine was developed by AAC and was originally known as Vaal River No. 8 Shaft. Work on Great Noligwa was initiated in 1968, and the mine produced its first gold in 1972. Great Noligwa reached its production peak of around 1,000koz per annum in the late 1990s and at present, mining activity at Great Noligwa Mine is concentrated on the extraction of pillars.

The Moab Khotsong Mine was developed by AngloGold and is the youngest of South Africa’s deep-level gold mines. It came into production in 2003 and has been continuously economically exploited since then. Great Noligwa was merged with Moab Khotsong Mine in 2014, and since the merger of the two mines, annual production has been in the order of 250koz of gold.

Harmony assumed ownership of Moab Khotsong in March 2018 and has since added the Zaaiplaats area to the Mineral Resources and Mineral Reserves. The inclusion of Zaaiplaats in the LOM plan has extended the life of Moab Khotsong for 22 years up to 2044 and the overall production is expected to be in the order of 200koz of gold per annum.

The historical ownership and associated activities related to Moab Khotsong are summarised in Table 5-1.

Table 5-1: Summary of Historical Ownership Changes and Activities at Moab Khotsong


Year			Asset History Highlights
1968			The Vaal River No. 8 Shaft system and the gold plant comes into production.
1972			Vertical sub-shaft commissioned.
1998			AngloGold Ashanti was formed through the merger of the gold interests of Anglo American and its associated companies.
1991			AngloGold Ashanti initiates the development of Moab Khotsong Mine.
1999			Vaal River No. 8 Shaft renamed to Great Noligwa.
2003			Moab Khotsong mine comes into production.
2014			Great Noligwa mine merged into Moab Khotsong.
2017			Great Noligwa production footprint reduced.
2018			Harmony takes ownership and control of Moab Khotsong from AngloGold Ashanti.
2020			Great Noligwa Shaft Pillar extraction starts.
2021			Zaaiplaats Board approval and start of project.

5.2Historical Exploration

Exploration work in the area surrounding Great Noligwa was undertaken in the 1950s and 1960s. The work was initially limited to surface drilling. An extensive surface exploration programme was conducted across the Vaal River area by AAC.

After the establishment of Great Noligwa Mine, brownfield exploration continued from surface and underground access points to extend the known Mineral Resources at Great Noligwa. During the 1980s and 1990s, this exploration extended into the areas which were to become known as Moab Khotsong. The exploration efforts in the 1990s included further surface drilling, as well as a 3-dimensional (“3D”) seismic survey, which assisted in delineating the major fault blocks at depth.

Following the establishment of the Moab Khotsong Mine, exploration between 2005 and 2015 included another 3-dimensional (“3D”) seismic survey in 2011, additional surface drilling and long, inclined boreholes (“LIBs”). The latter which enabled the identification and quantification of the Zaaiplaats block.

Brownfields exploration continues at Moab Khotsong at present, to identify additional Mineral Resources, and to upgrade the confidence in existing Mineral Resources.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous Mineral Resource estimate for Moab Khotsong was declared as at 30 June 2021, according to the SAMREC Code, 2016. The previous Mineral Resource estimate, summarised in Table 5-2, is exclusive of Mineral Reserves and has been superseded by the current estimate prepared by Harmony in Section 11 of this TRS.

Table 5-2: Summary of Previous Moab Khotsong Mineral Resources as at 30 June 2021 (Exclusive of Mineral Reserves)


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	2.311	16.63	38,435
Indicated	5.282	14.92	78,789
Total / Ave. Measured + Indicated	7.593	15.44	117,224
Inferred	5.631	16.42	92,481
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	2.548	0.485	1.236
Indicated	5.822	0.435	2.533
Total / Ave. Measured + Indicated	8.370	0.450	3.769
Inferred	6.207	0.479	2.973

The previous Mineral Reserve estimate for Moab Khotsong was also declared as at 30 June 2021, in accordance with the SAMREC Code. Modifying Factors were applied to the Mineral Resource to arrive at the Mineral Reserve estimate. These factors included a dilution to accommodate the difference between milling width and stoping width, as well as the Mine Call Factor (“MCF”). The previous Mineral Reserve estimate, summarised in Table 5-3, has been superseded by the current estimate prepared by Harmony as detailed in Section 12.3 of this TRS.

Table 5-3: Summary of the Previous Moab Khotsong Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	2.913	7.77	22,626
Probable	12.304	8.89	109,410
Total (Proved + Probable)	15.217	8.68	132,036
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	3.211	0.227	0.727
Probable	13.563	0.259	3.518
Total (Proved + Probable)	16.774	0.253	4.245

5.4Past Production

Since the commencement of mining in 1972, the average annual production rate of 14,463kg during this period was 327koz. The highest product rates at Moab Khotsong were achieved in 1998 of 33,511kg. The average annual production over the past five years is presented in Figure 5-1 and Figure 5-2.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 5-1: Graph of Past Production – Tonnes and Gold Grade

Figure 5-2: Graph of Past Metal Production

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii)

6.1Regional Geology

The Klerksdorp Goldfield is located on the western margin of the Archean Witwatersrand Basin, one of the most prominent gold provinces in the world. The Witwatersrand Basin is an approximately 7,000m thick terrigenous sequence comprising mainly arenaceous and argillaceous, together with minor rudaceous, lithologies deposited in a fluvio-deltaic environment in the centre of the Archaean Kaapvaal Craton of South Africa (Robb and Meyer, 1995). The regional geology of the Witwatersrand Basin is shown in Figure 6-1.

The Witwatersrand Supergroup is subdivided into the basal West Rand Group (“WRG”) and overlying CRG (Robb and Robb, 1998). The WRG extends over an area of 43,000km2 and is up to 5,150m thick. It is sub-divided in three subgroups, namely, from bottom upwards, the Hospital Hill Subgroup; Government Subgroup and Jeppestown Subgroup. The stratigraphic succession of the WRG mainly consists of shale sediments, with occasional units of banded iron formation and conglomerate. The CRG is up to 2,880m thick and covers an area of up to 9,750km2, with a basal extent of approximately 290km x 150km. It is sub-divided into the lower Johannesburg Subgroup and upper Turffontein Subgroup as shown in Figure 6-2. These subgroups are separated by the Booysens Shale Formation.

The major gold bearing conglomerates are mostly confined to the CRG, and these conglomerate horizons are known as reefs. The most important reefs within the CRG are at six stratigraphic positions, three within the Johannesburg Sub-group and three within the Turffontein Sub-group. The reefs are mined in seven major goldfields, and a few smaller occurrences, which extend for over 400km in what has been called “The Golden Arc”. This arc is centred on the prominent Vredefort Dome, as shown in Figure 6-1, which is thought to be a major meteorite impact site in the centre of the Witwatersrand Basin (Therriault et al., 1997). The goldfields, as shown in Figure 6-1, include: East Rand, South Rand, Central Rand, West Rand, West Wits, Klerksdorp, Free State (Welkom), and Evander.

6.2Local Geology

Moab Khotsong is located within the Klerksdorp Goldfield as shown in Figure 6-1. The general orientation of the Witwatersrand Supergroup succession in this goldfield is interpreted as southwest-trending and southeast dipping (Dankert and Hein, 2010).

The CRG is up to 2,100m thick in the Vaal River area. Moab Khotsong mainly exploits the Vaal Reef, which is located near the top of the Johannesburg Sub-group, within the CRG (Figure 6-2 and Figure 6-3). The Vaal Reef ranges in depth at Moab Khotsong from 1,500m - 3,400m BMD.

A series of northeast-trending faults including the Buffelsdoorn, Kromdraai, Buffels East and Jersey Faults, are a key feature of the Klerksdorp Goldfield. These major faults are south-dipping and have north-dipping “Zuiping” faults wedged between them. Moab Khotsong’s Vaal Reef structure plan is presented in Figure 6-4.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 6-1: Regional Geology of the Witwatersrand Basin

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 6-2: Stratigraphy of the CRG in the Witwatersrand Supergroup
Source: Modified after Tucker et al. (2016)

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 6-3: Stratigraphic Column of the Free State Goldfield

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 6-4: Structure Plan for Moab Khotsong

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

6.3Property Geology

The principal reef, both in terms of current production and Mineral Resources and Mineral Reserves, is the Vaal Reef. A second reef, lying approximately 225m stratigraphically above the Vaal Reef, is the C-Reef. This reef contributes less than 5% to the mining production. These reefs are continuously developed across the Great Noligwa Mine and Moab Khotsong mining right areas, with the exception of some fault-loss areas. The reefs dip at approximately 22° towards the southeast.

6.3.1Vaal Reef Lithology

The Vaal Reef consists of a thin basal conglomerate, termed the C-Facies, and a thicker upper sequence of conglomerates, termed the A-Facies. The A-Facies and the C-Facies are separated by the B-Facies, which is a barren orthoquartzite. The A-Facies is the primary economic horizon at Moab Khotsong; however, remnants of the C-Facies are sporadically mined where it is preserved below the A-Facies.

The Vaal Reef mining unit can reach thicknesses of up to 280cm, while the average channel width is approximately 90cm.

6.3.2C Reef Lithology

The C Reef is an approximately 10cm thick conglomerate, which has a 5mm - 20mm thick carbon seam commonly occurring at the base. To the north of the mine, the C Reef sub-crops against the Gold Estates Conglomerate Formation, and in the extreme south of the mine, the C Reef has been eliminated by a deep Kimberley erosion channel and the Jersey fault.

The C Reef is mined on a limited scale in the central part of Top Mine, where a high-grade, north-south trending sedimentary channel containing two economic horizons has been exposed. To the east and the west of this channel, the C Reef is poorly developed with limited areas containing economic concentrations of gold and uranium.

6.3.3Structure

The structure at Moab Khotsong has been interpreted from seismic data with confirmatory information sourced from surface drilling and LIBs. Moab Khotsong is structurally complex (Figure 6-4) with large fault-loss areas between Top Mine, Middle Mine and Zaaiplaats. The structural setting is one of crustal extension, dominated by major south dipping fault systems. The north dipping Zuiping faults are wedged between these major faults. The De Hoek and Buffels East faults bound the reef blocks of the Middle Mine to the northwest and southeast respectively, while the northern boundary of the Middle Mine is the north dipping Zuiping fault.

A northwest/southeast cross section from Top Mine to Middle Mine is presented in Figure 6-5, which demonstrates the structural complexity associated with the area. Similarly, a northwest/southeast cross section through Zaaiplaats is presented in Figure 6-6, again illustrating the complexity of area.

6.4Mineralisation

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 6-5: Top Mine and Middle Mine Cross Section and Plan

Figure 6-6: Zaaiplaats Cross Section and Plan

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

6.4.1Vaal Reef Mineralisation

The Vaal Reef A-facies is dominated by silicate phases including quartz (~84 %), chlorite (~5 %), muscovite (~4 %) and zircon (~0.22 %), as well as sulphide phases of pyrite (~5 %). The remainder of the conglomerate consists of an array of accessory mineral phases which include uraninite, coffinite, brannerite, as well as various minor sulphide and oxide phases. The matrix of the conglomerate is made up of muscovite, chlorite, re-crystalized quartz and pyrite.

High gold values in the Vaal Reef are often located at the base of this unit and are associated with high uranium values as well as with the presence of carbon. It is interpreted that carbon was preferentially precipitated in bedding–parallel fractures that most commonly followed the base of the Vaal Reef package and that gold was precipitated very soon after the carbon, giving the critical gold-carbon association that characterises many of the high-grade Vaal Reef localities. Uranium is an important by-product which is also recovered from the Vaal Reef.

6.4.2C Reef Mineralisation

The Crystalkop formation attains a maximum thickness of about 9m, and contains a lower greenish, fuchsite-rich, tinged orthoquartzite overlain by a coarser grained protoquartzite that can be confused with Kimberley Channel deposits. The C-Reef is present at the base of the Crystalkop and is typically a thin (<5cm ) oligomictic conglomerate with a well-developed carbon seam at the base. Although grades can be similar to that of the Vaal Reef the C-Reef is only preserved in a small portion of the mine as it is truncated in the north by the Gold Estates Conglomerate and in the south by a large Kimberley channel. (Watts, M, 2010)

The C-reef comprises of the following minerals: quartz (74.34 to 80.32 weight %), muscovite (7.69 to 10.54 weight %), pyrophyllite (2.89 to 8.35 weight %) and pyrite (5.21 to 7.73 weight %). A wide variety of accessory minerals includes zircon, chlorite, gersdorffite, sphalerite, cobaltite, galena, rutile, chromite, magnetite, ilmenite, calcite, siderite and florencite. Uranium bearing minerals such as uraninite, coffinite and brannerite occur in relevant amounts. (Pienaar, D, 2016)

Gold is present predominantly in the form of pure gold, containing ~ 11 to ~ 18 weight % silver (Harris, 1990; Petruk, 2000; Zhou and Cabri, 2004; Zhou et al., 2004; Zhou and Gu, 2008).

6.4.3Alteration

Alteration is evident in the Vaal Reef and C Reefs at Moab Khotsong and is a result of the hydrothermal fluids that infiltrated the reef and have overprinted on the original mineral assemblage. The reefs contain authigenic sulphides such as pyrite, and other minerals associated with alteration such as chlorite. Gold associations with these mineral assemblages indicate a strong correlation of gold mobilisation and redistribution at the time of the hydrothermal fluid influx.

While alteration is an important part of the mineralisation at Moab Khotsong, alteration is not used for the identification, modelling or mining of the reefs.

6.5Deposit Type

The Moab Khotsong deposit is classed a meta-sedimentary gold deposit. Folding and basin edge faulting have been important controls for sediment deposition and gold distribution patterns within the Witwatersrand Basin and fold trends have been employed in the economic evaluation of various reef horizons.

6.6Commentary on Geological Setting, Mineralisation and Deposit

The regional geological setting, local and property geology, mineralisation and deposit-type for Moab Khotsong is well established, through many decades of exploration and mining. Reliable geological models, maps and cross sections are available that support the interpretations and inform the Mineral Resource estimates.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

7Exploration

Section 229.601(b)(96) (7) (i-vi)

Exploration at Moab Khotsong has focused on improving confidence in the geological model, as well as adding and upgrading additional Mineral Resources to the mine. Geological data has been obtained from an initial geophysical seismic survey and later through surface drilling, underground channel (chip) sampling, underground mapping and underground drilling.

7.1Geophysical Seismic Survey

A 3D seismic reflection survey was conducted by AngloGold in 1995 over the previously termed Vaal River region. The objective of the survey was to delineate the major sub-surface formations above and below the Vaal Reef, at depths ranging from 2.0km to 3.5km.

The data obtained from the survey was processed and interpreted, successfully delineating the stratigraphy from the Ventersdorp Supergroup to the base of the Witwatersrand Basin, including the Vaal Reef. This enabled AngloGold to better understand the structural characteristics of the Vaal River at depth. In 2011 another seismic reflection survey was done over the Zaaiplaats area. The seismic interpretation continues to guide the delineation of the major fault blocks in the vicinity of Moab Khotsong, and guide surface and underground drilling efforts.

7.2Topographic Surveys

As Moab Khotsong is an underground operation, topographic surveys are not material to the Mineral Resource estimates.

7.3Underground Mapping

Extensive face and reef development mapping is undertaken by the Geosciences Department at Moab Khotsong. This mapping is typically undertaken at the same time and at the same frequency as channel sampling, although denser mapping coverage is set up in structurally complex areas.

During mapping, face tapes are setup along gullies and the stope face and secured with the latest survey pegs installed in the workplaces. Reef position and other lithological and stratigraphic information is collected and measured relative to the reference tapes. The information is captured in a notebook.

Once at surface, the geologists transfer the information from the notebook into the system where a mapping report is produced for each mapped workplace. The mapping reports depict the geological information graphically relative to the survey measurement points. Data from the mapping is also incorporated into the geological models.

7.4Channel Sampling Methods and Sample Quality

Channel sampling of underground panels blasted on monthly basis is conducted perpendicular to the channel contact across the exposed channels. The section lines demarcating the width of the sample are drawn parallel to the reef waste contact while those demarcating the length of the sample are drawn at right angles to the reef waste contact and are marked 10cm apart. Samples of a consistent depth are chipped out between these section lines, along with 2cm of waste material from above and below the reef. A detailed description of the sampling process is provided in Section 8.1.1

Sampling of the channels is undertaken at the advancing face on a grid spacing of 5m x 5m. The sampling process is audited monthly and annually by the Geoscience Manager.

The location of samples collected from the Vaal Reef to date is shown in Figure 7-1, while that the C-Reef is presented in Figure 7-2.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 7-1: Location of Channel Samples Collected from the Vaal Reef to Date

Figure 7-2: Location of Channel Samples Collected from the C Reef to Date

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

7.5Surface Drilling Campaigns, Procedures, Sampling, Recoveries and Results

The surface drill holes used in the estimation of the current Mineral Resources were drilled by AAC and AngloGold before Harmony acquired Moab Khotsong.

7.5.1Drilling Methods

The surface drill holes were completed using Boart Longyear DR27 drill rigs. This diamond core drilling was undertaken using a thin-walled TNW size core barrel that delivers NQ (47.6mm) core for better sample recovery. A single mother hole is drilled with multiple deflections.

The drill grid spacing of the surface drill hole intersections is up to 1,000m, and is often required to be complimented by underground drill hole intersections. The accuracy of the surface drilling intersection positions from drill holes that are from 2,000m to 3,000m in depth is the major limiting factor of actually achieving any sort of planned grid. Long surface drill holes often deflect and the controlling direction over that depth has always been challenging in the South African gold mining context.

7.5.2Collar and Downhole Surveys

Drill holes are surveyed to confirm both collar position and trajectory. Drill hole collar and downhole surveys are conducted on all surface drill holes at Moab Khotsong. Surface drill hole collars are surveyed by internal Land Survey Department

Downhole surveying is conducted using Electronic Multishot System and non-magnetic north seeking Gyro tools as supplied by a certified and specialised downhole survey company. Additional surveys are conducted on all LIB or long vertical borehole (“LVB”) drill holes for verification purposes, and the results are submitted together with the primary survey data used to determine the drill hole trajectories.

7.5.3Logging Procedure

The drill core was transported from the field to the core yard, where it was logged by the geologist according to the AAC or AngloGold standard logging procedures. Drill core logging is quantitative and qualitative. The following information is recorded:

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and

•alteration.

An electronic record of each drill hole is readily available. The drill holes are electronically plotted into Deswik (CADsMine) for visual validation and were incorporated into the dynamic Structural Model. The mineralisation and sedimentological characteristics of the reef are used to confirm and delineate facies zones.

7.5.4Drilling Results

The location of the surface drill holes intersecting the Vaal Reef on Moab Khotsong is presented on Figure 7-3, while those intersecting the C Reef are shown on Figure 7-4. The Vaal Reef and C Reef surface drilling results are summarised in Table 7-1. The drill holes have been drilled to a maximum depth of 3,500m below the surface.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 7-3: Location of Surface and Underground Drill Holes Intersecting the Vaal Reef

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 7-4: Location of Surface and Underground Drill Holes Intersecting the C Reef

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 7-1: Summary of Surface Drill holes Intersecting the Vaal Reef and C Reef (pre 1980 – 2021)


Drill Hole ID	Deflections	Reef	Ave Gold Value (cmg/t)	Ave. Channel Width (cm)	Ave Grade (g/t Au)	Drill Hole ID	Deflections	Reef	Ave Gold Value (cmg/t)	Ave. Channel Width (cm)	Ave Grade (g/t Au)	Drill Hole ID	Deflections	Reef	Ave Gold Value (cmg/t)	Ave. Channel Width (cm)	Ave Grade (g/t Au)
BBP2	3	VAAL/R	221	78	2.84	MGR6	3	VAAL/R	1,292	48.3	26.74	MMB6	1	VAAL/R	1,324	124	10.71
BBP2	8	VAAL/R	266	70	3.81	MGR6	4	VAAL/R	2,070	48.9	42.31	MMB6	3	VAAL/R	1,268	107	11.81
BBP2	9	VAAL/R	148	85	1.73	MGR6	6	VAAL/R	2,037	36.6	55.59	MMB7	0	VAAL_A/R	565	98	5.76
BBP2	11	VAAL/R	142	88	1.61	MGR7	0	VAAL_A/R	1,408	47	29.75	MMB7	2	VAAL/R	621	103	6.01
BBP2	12	VAAL/R	159	69	2.29	MGR7	3	VAAL_A/R	442	48	9.20	MMB7	4	VAAL/R	506	110	4.61
GM1	0	VAAL/R	2,086	29	72.68	MGR7	4	VAAL_A/R	296	44	6.76	MSH2	11	VAAL/R	217	58	3.72
GM1	1	VAAL/R	1,903	19	101.22	MGR7	8	VAAL_A/R	1,691	80	21.04	MSH2	13	VAAL/R	160	69	2.30
GM1	2	VAAL/R	849	16	54.08	MGR7	9	VAAL_A/R	1,229	78	15.76	MSH2	14	VAAL/R	428	78	5.49
MGR2	0	VAAL/R	337	52	6.48	MGR7	10	VAAL_A/R	1,649	78	21.28	MSH2	15	VAAL/R	147	63	2.33
MGR2	1	VAAL/R	311	77	4.04	MGR7	11	VAAL_A/R	1,326	81	16.40	MSH2	18	VAAL/R	491	23	21.20
MGR2	9	VAAL/R	472	63	7.52	MGR8	5	VAAL_C/R	766	33	23.45	MSH2	19	VAAL/R	181	26	6.90
MGR2	12	VAAL/R	397	46	8.62	MGR8	6	VAAL_C/R	1,157	22	53.65	MZA10	0	VAAL/R	2,265	63	35.83
MGR2	13	VAAL/R	423	25	17.10	MGR8	7	VAAL_C/R	265	34	7.86	MZA10	2	VAAL/R	1,688	58	29.08
MGR2	14	VAAL/R	205	23	8.75	MGR8	9	VAAL_C/R	3,020	15	207.50	MZA10	3	VAAL/R	1,995	53	37.77
MGR2	15	VAAL/R	210	28	7.60	MGR8	11	VAAL_C/R	922	25	36.30	MZA10	5	VAAL/R	1,774	49	36.02
MGR2	21	VAAL/R	86	30	2.90	MGR8	12	VAAL_C/R	1,109	25	44.15	MZA10	6	VAAL/R	1,622	69	23.62
MGR2	22	VAAL/R	34	22	1.55	MHH1	16	VAAL/R	359	15	24.10	MZA10	7	VAAL/R	1,277	35	36.72
MGR2	23	VAAL/R	391	30	13.10	MHH1	20	VAAL/R	631	11	56.90	MZA10	8	VAAL/R	3,505	57	62.02
MGR2	24	VAAL/R	314	28	11.20	MHH1	21	VAAL/R	566	11	51.10	MZA3	0	VAAL/R	2,003	145	13.82
MGR2	27	VAAL/R	422	30	14.20	MHH1	22	VAAL/R	327	30	11.10	MZA3	9	VAAL/R	2,655	136	19.53
MGR2	28	VAAL/R	608	19	31.90	MMB2	0	VAAL/R	1,427	93	15.29	MZA3	10	VAAL/R	2,904	134	21.64
MGR4	0	VAAL/R	109	57	1.91	MMB2	1	VAAL/R	2,056	97	21.18	MZA3	11	VAAL/R	6,514	182	35.82
MGR4	1	VAAL/R	216	145	1.49	MMB2	2	VAAL/R	1,818	97	18.75	MZA3	13	VAAL/R	2,717	141	19.31
MGR4	2	VAAL/R	232	154	1.51	MMB2	3	VAAL/R	1,532	92	16.67	MZA4	0	VAAL/R	866	109	7.92
MGR4	3	VAAL/R	327	145.9	2.24	MMB2	4	VAAL/R	1,113	80	13.94	MZA4	1	VAAL/R	1,137	99	11.50
MGR4	4	VAAL/R	366	159	2.30	MMB3	3	VAAL_A/R	2,156	63	34.01	MZA4	2	VAAL/R	911	108	8.45
MGR4	8	VAAL/R	222	138.7	1.60	MMB3	4	VAAL_A/R	1,312	65	20.18	MZA4	3	VAAL/R	450	130	3.45
MGR4	9	VAAL/R	180	133.5	1.35	MMB3	5	VAAL_A/R	1,393	62	22.54	MZA4	5	VAAL/R	865	110	7.89
MGR4	10	VAAL/R	167	123.6	1.35	MMB3	6	VAAL_A/R	1,499	89	16.86	MZA4	7	VAAL/R	143	59	2.42

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


MGR4	11	VAAL/R	111	122.2	0.91	MMB3	7	VAAL_A/R	2,084	85	24.49	MZA4	8	VAAL/R	127	52	2.46
MGR5	0	VAAL/R	525	172.1	3.05	MMB3	8	VAAL_A/R	2,724	90	30.39	MZA4	9	VAAL/R	163	48	3.41
MGR5	3	VAAL/R	1,842	155.1	11.88	MMB4	0	VAAL_A/R	6,897	129	53.37	MZA9	8	VAAL_A/R	711	80	8.84
MGR5	6	VAAL/R	1,255	106.2	11.82	MMB4	1	VAAL_A/R	5,614	114	49.47	MZA9	9	VAAL_A/R	298	89	3.34
MGR5	7	VAAL/R	1,289	117.2	11.00	MMB4	4	VAAL_A/R	4,149	138	29.97	MZA9	10	VAAL_A/R	256	77	3.33
MGR5	8	VAAL/R	1,709	117.3	14.57	MMB4	5	VAAL_A/R	3,445	125	27.52	MZA9	12	VAAL_A/R	1,481	52	28.35
MGR5	11	VAAL/R	797	176.5	4.52	MMB5	7	VAAL_A/R	1,056	89	11.87	MZA9	13	VAAL_A/R	1,318	56	23.53
MGR5	12	VAAL/R	363	141.6	2.56	MMB5	9	VAAL_A/R	1,895	126	15.09	MZA9	14	VAAL_A/R	1,230	55	22.45
MGR5	16	VAAL/R	1,149	184.6	6.23	MMB5	14	VAAL_A/R	2,609	112	23.36	ZA1	0	VAAL/R	2,808	155	18.13
MGR5	17	VAAL/R	1,073	143.5	7.47	MMB5	15	VAAL_A/R	2,016	94	21.43	ZA1	1	VAAL/R	1,551	162	9.56
MGR5	18	VAAL/R	1,043	185.3	5.63	MMB5	16	VAAL_A/R	1,648	105	15.73	ZA1	2	VAAL/R	9,524	181	52.62
MGR5	19	VAAL/R	1,853	188.7	9.82	MMB5	17	VAAL_A/R	2,303	115	20.02	ZA1	3	VAAL/R	9,459	178	53.20
MGR6	0	VAAL/R	981	172.5	5.69	MMB5	18	VAAL_A/R	2,214	112	19.76
MGR6	1	VAAL/R	911	147.8	6.16	MMB5	19	VAAL_A/R	1,503	113	13.29
MGR6	2	VAAL/R	401	132.8	3.02	MMB6	0	VAAL/R	2,077	127	16.41

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

The summary of drilling by company is presented in Table 7-2.

Table 7-2: Summary of Surface and Underground Drilling by Company


Year	Company	No. Drill Holes	Surface (m)	Underground (m)
2013 (Jan-Dec)	AngloGold	498	0	58,444
2014 (Jan-Dec)	AngloGold	382	2,367	47,994
2015 (Jan-Dec)	AngloGold	255	1,018	34,740
2016 (Jan-Dec)	AngloGold	301	0	38,154
2017 (Jan-Dec)	AngloGold	107	0	37,640
2018 (Jan-Dec)	AngloGold	110	0	37,279
2019 (Jan-Jun)	Harmony	171	0	19,440
Jul 2019/Jun 2020	Harmony	258	0	27,491
Jul 2020/Jun 2021	Harmony	282	0	30,061
Jul 2021/Jun 2022	Harmony	260	0	32,083
Total		2,624	3,385	363,326

7.5.5Core Recovery

An intersection is complete and representative if core recovery is greater than 99%. Drill holes with poor recovery are not sampled. Extra caution is taken during the drilling process to ensure maximum core recovery on reef intersections, to prevent sample bias. The drill hole acceptance criteria is presented in Table 7-3.

Table 7-3: Drill hole Acceptance Criteria


Category			Comment
Acceptable			100% core recovery in the reef zone, or very minor loss due to reef chipping. No evidence of faulting within the reef horizon or at either contact with hanging wall or footwall lithologies.
Minimum value			Light to moderate disking of core in the core barrel due to drilling and/or ground conditions. Visual observations indicate that the conglomerate portion of the reef is usually more prone to disking, resulting in possible gold loss.
Faulted minimum value			If the fault loss is considered to be minor, this term may be used if the geologist is certain that only low-value internal quartzite is missing from the intersection.
Not acceptable			Heavy disking of core which may indicate core loss, partial known core loss due to grinding. Also faulting of any description within the reef zone.

The overall recovery percentage for surface drilling is 95% for Transvaal Supergroup, 98% for the Ventersdorp Supergroup and 99% for the Witwatersrand Supergroup.

7.5.6Sample Length and True Thickness

Sample lengths were taken at 15-20cm intervals of the full reef intersection and are considered as representative of the mineral deposit.

In areas where drill holes intersect the reefs at obtuse angles, the sampled width is corrected for true thickness using the angle of intersection and the drilled width. The true thickness is used to determine the value the gold content of the reef.

7.6Underground Drilling Campaigns, Procedures, Sampling, Recoveries and Results

Underground exploration drilling has been on-going throughout the operational life of Moab Khotsong as the mine deepens. Underground drilling intersections are sampled where possible and, if acceptable and representative, are used in the estimation process. For estimation purposes 129 Surface and LIB intersections were used.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

7.6.1Drilling Methods

Two types of underground drilling methods are used at Moab Khotsong. The first method involves drilling of LIBs or LVBs, which are drilled up to 1,500m in length at any angle between zero degrees to -90 degrees. These drill holes are generally drilled using a powerful hydraulic machine to improve depth penetration and core recovery. The core sizes used for reef intersections are BX (42.0mm) or BQ (36.5mm).

The second underground method is infill diamond core drilling, which is undertaken using pneumatic drill rigs. The core size used for reef intersections is AXT (35.5mm).

The underground drilling seeks to identify the geological structure and grade characteristics of the reefs at a 100m to 200m drilling spacing, in order to inform the placement of primary haulage and cross-cut development. In structurally complex areas, particularly in Middle Mine, infill drilling down to a 50m drilling spacing is required.

7.6.2Collar and Downhole Surveys

Drill holes are surveyed to confirm both collar position and trajectory. Drill hole collar and downhole surveys are conducted on all LIBs, as well many of the shorter underground drill holes at Moab Khotsong.

Underground drill hole collars are checked against layouts issued to diamond drilling contractors and confirmed by offsets taken underground in the workplaces.

Downhole surveying is conducted using Electronic Multishot System and non-magnetic north seeking Gyro tools as supplied by a certified and specialised downhole survey company. Additional surveys are conducted on all LIB/LVB drill holes for verification purposes, and the results are submitted together with the primary survey data used to determine the drill hole trajectories.

7.6.3Logging Procedures

The drill core was transported from underground to either the Great Noligwa or Moab Khotsong mine core yard, where it was logged by the geologist according to Harmony’s standard logging procedures. Harmony’s logging procedures, and those of AngloGold Ashanti are considered best practice, and have been in place at Moab Khotsong since it came into operation. Drill core logging is quantitative and qualitative. The following information is recorded:

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and

•alteration.

The geologists record complete descriptions of lithology and stratigraphy into the Fusion™ drill hole database. An electronic record of each drill hole is therefore readily available. The drill holes are electronically plotted into Deswik (CADsMine) for visual validation and are incorporated into the dynamic Structural Model. The mineralisation and sedimentological characteristics of the reef are used to confirm and delineate facies zones.

7.6.4Drilling Results

The location of the underground drill holes intersecting the Vaal Reef on Moab Khotsong is shown on Figure 7-3, whilst the location of those intersecting the C Reef is shown on Figure 7-4. During 2022, a total of

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

32,083m of drilling was completed. The summary of underground drilling by company is presented in Table 7-2.

With over 331,000m of drilling having been undertaken since 2013, the results are too voluminous to be tabulated in this report. The results have, however, been included into the geological modelling process. With the exception of acceptable LIB intersections, underground drilling is not typically used for the Mineral Resource estimation process.

7.6.5Core Recovery

Where possible, precautions are taken by the drilling contractors to utilize core barrels to ensure maximum recovery.

An intersection is complete and representative if core recovery is greater than 99%. Drill holes with poor recovery are not sampled. Extra caution is taken during the drilling process to ensure maximum core recovery on reef intersections, to prevent sample bias. The drill hole acceptance criteria is presented in Table 7-3.

Geological acceptability of drill hole intersections is determined by geologists based on, amongst others, drill core condition and faulting. The acceptability is verified for each reef intersection before the assay results are used for Mineral Resource estimation.

The overall recovery for underground drilling is 99%.

7.6.6Sample Length and True Thickness

Sample lengths were taken at 15-25cm intervals of the full reef intersection and are considered as representative of the mineral deposit.

7.7.Hydrogeological Data

Many of the fault systems on the mine carry water and flammable gases, and throughout the mine, water and gas, usually in small quantities, may also occur at the contact zones of dykes and sills. A dedicated programme of cover drilling for development ends is undertaken to limit the likelihood of water and gas intersections in mining development. Records of intersections of water and flammable gases are made along with the geological observations, and these are used to inform Moab Khotsong’s dynamic geotechnical and hydrogeological models.

7.8Geotechnical Data

7.9Commentary on Exploration

The exploration has been undertaken using standard Harmony methods since the acquisition of Moab Khotsong, and prior to that using AngloGold Ashanti standard methods, which would have been in place for many years.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to support the estimation of Mineral Resources and Mineral Reserves.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

8Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

This section summarises information relating to the sample preparation on site through to the laboratory preparation and analysis.

8.1Sampling Method and Approach

Sample types used to support both production and geological exploration include diamond drill core samples and channel (chip) samples.

8.1.1Channel Samples

All geological data (faults, dykes) between sampling sections are measured and recorded in the sampler’s field book. The sampler also records the numbering and positions of samples.

Samples are taken from underground by the samplers and delivered to the sampling store and then packed in secured containers, whereafter they are collected and delivered to the laboratory. All inter-person transfers are recorded. This process continues until the samples are delivered to the laboratory, where the chain of custody form is signed evidencing the date and time of sample receipt.

8.1.2Core Samples

Diamond drilled core is transported to the storage facility at the core yard, under the supervision of a Senior Geologist. Once there, the core is logged and sampled according to Harmony’s Drill Hole Sampling Procedure.

The diamond drilled core is cut lengthwise and one half is sent for assay and the other half is securely stored for future reference. The core is split or cut such that the orientation of sampling is unbiased relative to the orientation of the mineralisation. The core intersection angles are recorded and are later used to calculate the true widths of the mineralisation, for Mineral Resource reporting. Records are available stating whether drill-core sample taken was split or sawn and whether quarter, half or full core was submitted for analysis.

All samples are assessed for quality and signed-off by the Senior Geologist for completeness and auditability before the split core is bagged, sealed and tagged together with QAQC material and dispatched to the laboratory.

Details of the samples are captured on hard-copy log sheets and include the drill hole name, samples numbers, sample depths, from and to interval, and date on which the samples were submitted for assay. The log sheet is captured on the electronic database pending results from the designated laboratory.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

8.2Density Determination

The relative density (“RD”) used for Mineral Resource estimates is 2.78t/m3.

A review of the RD was completed during 2017 and determined that the results of the 2014 RD testing from 528 underground reef samples was still relevant. The RD was determined using Archimedes method of measuring the mass while dry and the mass while submerged.

8.3Sample Security

Chip samples are bagged, sealed and delivered by the samplers to the sampling store on the same day as they are collected. The sampling store is a secure facility with access control measures in place. Samples are delivered to the laboratory by the mine.

Cores are delivered to the core yard at the end of each days drilling for secure storage. Sampling only takes place at the core yard. The samples are bagged and sealed and stored until they are delivered to the laboratory.

Samples can only be transported by a permit holder for transporting gold bearing material. Waybills and registers are checked and signed off by security. The samples are received from the mine in locked containers with seals. The sample labels are scanned at the designated laboratory and the batches compared to the submitted sample sheets. The scanned bar codes are kept at the laboratory and compared to the work sheets that are automatically created on the system. Sample lists submitted by the mine are used to compare what is received at the laboratory.

8.4Sample Storage

8.5Laboratories Used

SGS Laboratories South Africa (Pty) Limited (“SGS”) is used for all sample preparation and analysis for Moab Khotsong. Up to March 2020, all samples were sent to the SGS laboratory in Randfontein for fire assay (gold) and X-ray powder diffraction (“XRD”) analysis for uranium. The laboratory is ISO/IEC 17025:2017 certified and certified for chemical analysis by the South African National Accreditation System ("SANAS”) (Accreditation No. T0265).

After the accreditation of the SGS laboratory in Orkney by SANAS on 9 March 2020, samples have been sent to the Orkney laboratory.

8.6Laboratory Sample Preparation

The grind should not be less than 90% passing 75µm nor should it be more than 95% passing 75µm. If the grind is less than 90% passing 75µm (under milled), not all the gold will be liberated. If more than 95% passing 75µm (over milled), the risk is run of smearing and rolling the gold particles (adversely affecting the Au assay/value obtained). This standard is applicable to all gold assay methods.

The total percentage mass loss on each sample should not exceed 2%.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

8.7Assaying Methods and Analytical Procedures

For the period 1 January 2020 to 31 December 2021, Moab Khotsong submitted a total of 28,377 samples for analysis of gold and uranium.

Gold is analysed using the fire assay method, with a gravimetric finish, while uranium is analysed through by XRD.

After the preparation stage the samples are packed into trays and transported to the fluxing-room. A catch weight aliquot of ±30g and a flux aliquot of ±100g is placed into a fire assay crucible and thoroughly mixed.

The samples are then transferred to the ovens for the fusion process. The cupellation process is where the precious metals are collected in a lead button and then separated from the lead by means of oxidation fusion. The gold prill is then added to a nitric acid solution to dissolve the silver and thereafter the remaining gold prill is weighed to determine its mass relative to the original sample mass.

To ensure that a high standard of analysis is maintained, each step of the analytical process and procedure, including the adherence to safety standards, is checked by a supervisor.

8.8Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

This section summarises information relating to the field and laboratory QAQC measures in place to ensure the integrity of the assay results.

8.8.1Field QAQC

Out of the 28,377 samples submitted to the laboratory for analysis, a total of 1,541 quality control samples were included in the sample stream (Table 8-1).

Table 8-1: Field QAQC Samples


Type			Total No.
Primary Samples			24,154
Blanks			1,743
CRM			223
Duplicates			91
Total			26,211

Blank samples are submitted to monitor the possible contamination in the fusion process stage of the analysis at the laboratory. High- and low-grade CRMs are inserted to monitor the accuracy of the analytical methods, which ensures that the full range of gold grades is covered. Duplicate samples are submitted to monitor the precision of the analytical methods and pulverized primary samples are also selected at random and re-assayed.

In the period 2021-2022, the results for the blanks and CRMs showed acceptable levels of accuracy and contamination, however, the results from the pulp duplicates did not display the normal level of assay repeatability.

Monthly Process Compliance Reports are compiled as part of the quality control on the sampling process. Standard formats are used and recorded for audit purposes. Process Compliance Reports on the chip Samplers are also compiled in order to check the quality of the chipping. These observations are made weekly and are also kept on record for audit purposes.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

8.8.2Laboratory QAQC

The laboratory's QAQC procedures include the following:

•insertion of split pulps, crushed duplicated and standards; and

•regular audits of the laboratory processes and facility are conducted by mine personnel and regional experts to monitor compliance. All audit reports compiled are assessed for remedial action by the responsible persons before next review. Monthly laboratory meetings are held with the Moab Khotsong representatives to discuss concerns over the specific periods.

8.8.3QAQC results

An analysis of the QAQC results is undertaken to validate the accuracy of the laboratory assay data and ensure a high level of confidence in the grades estimated for the Mineral Resource and Mineral Reserve.

If results of any of the CRM samples fall outside two standard deviations of the expected value for that particular CRM, they are deemed to have failed (i.e., plotting outside the acceptable tolerance limit). Portions of the batches that fail this criterion are queried with the laboratory and the samples are re-assayed.

The degree of bias is also monitored by comparing the calculated mean value to the expected value. Consistent failure of a standard and the bias to the low or high side of a standard, are cause for concern and acted on as soon as a trend is observed. The results of the Moab Khotsong quality control samples and the performance of the CRM or standard samples is summarised in Table 8-2 and Table 8-3, respectively.

Table 8-2: Summary of Analytical Quality Control Data


Quality Control Material Type	No. of Samples Submitted	No. of Failed Samples	Action Taken
AMIS0428	59	2	Re-assay Passed
AMIS0460	13	8	Re-assay Passed
AMIS0429	116	1	Re-assay Passed
AMIS0430	11	0
AMIS0705	3	0
AMIS0465	2	0
AMIS0455	19	5	Re-assay Passed
Milled Blanks	583	6	Re-assay Passed Contamination
Crushed Blanks	599	6	Re-assay Passed Contamination
Coarse Blanks	561	1	Re-assay Passed Contamination
Pulp duplicates	91	NA	Higher grade Precision - Laboratory discussion

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 8-3: Summary of Moab Khotsong CRM Performance


Standard	CRM Alias	Certified Value (g/t Au)	Moab Khotsong (±2 STD)		Laboratory
			Upper Limit (g/t Au)	Lower Limit (g/t Au)	Analysis	Ave (g/t Au)	Outliers & Failures	Bias (%)
AMIS0428		43	45.1	41.77	FA	43	2.0	0
AMIS0460	CRMOG009	36	37.8	33.6	FA	36	8.0	-1
AMIS0429		23	24.0	21.86	FA	23	1.0	-1
AMIS0430		3	2.9	2.44	FA	3	0.0	-2.91
AMIS0705		13	14.5	11.31	FA	13	0.0	-1.18
AMIS0465	CRMOC005	15	16.8	12.85	FA	14	0.0	-4
AMIS0455		52	55.4	49.08	FA	52	5.0	-1
Coarse blanks		1	1.5	0	FA	0	1.0	-34
Crushed blanks		1	1.5	0	FA	0	0.0	-37
Milled blanks		1	1.5	0	FA	1	0.3	14

The results of the CRMs are used to identify any issues with specific sample batches, and biases associated with the laboratory to which primary samples are sent. Control charts are produced to demonstrate performance of the laboratory’s sample preparation and analytical procedures.

8.9Comment on Sample Preparation, Analyses and Security

In the opinion of the QP that:

•the drill core sampling method adopted at Moab Khotsong is appropriate for the narrow, tabular, Witwatersrand-type gold mineralisation;

•all underground chip sampling is representative of the channel sampled;

•the sample preparation, security and analytical procedures followed for gold grade determination are adequate; and

•the results of the QAQC assessment have been appropriately addressed to ensure that the assay results of the primary samples are adequate for Mineral Resource estimation.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

9Data verification

Section 229.601(b)(96) (9) (i-iii)

9.1Databases

All drill hole and underground channel sampling data is captured and stored in an industry standard database, Fusion Client™, on a centralized server that is backed up. This data was previously captured and stored in AuBIS™ electronic database and upon acquisition, Harmony migrated the database to DatamineTM Fusion. This data is protected through administration rights allocated to an authorised administrator once the data has been finalized.

9.2Data Verification Procedures

Data verification procedures included the following:

•the drill hole database was checked against the original logs;

•the database was checked for missing collar coordinates, collar position and elevation errors, downhole survey errors, interval errors and duplicate sample records;

•when assay results for drill holes were returned from the laboratory, they were imported into the database. The QC sample results were assessed for performance before the primary sample results could be used for Mineral Resource estimation;

•the primary assay results captured in the database were validated by spot checking a selection of drill holes used in the current Mineral Resource estimate; and

•the assays captured in the database was checked against the original laboratory certificates.

Data checking and verification of underground point data is controlled by a graphic interface within the Syncromine™ software and eliminates the erroneous co-ordination of sampling positions.

Datamine™, Syncromine™ and Deswik™ applications are used to identify and eliminate any erroneous or duplication of data, especially where the source data is from outside sources and not been filtered through the control processes. These should however still be checked visually by the Evaluator and Senior Evaluator when doing data cleaning.

9.3Limitations to the Data Verification

There are no limitations with regards to data verification.

9.4Comment on Data Verification

The QP is of the opinion that the Moab Khotsong drill hole and sample database is reliable and adequate for the purposes Mineral Resource and Mineral Reserve estimation.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

All of the ore from the current mining areas at Moab Khotsong is treated at the Noligwa gold processing facility at Great Noligwa. This is a well-established plant which has been treating ore from the Moab Khotsong Mine (in addition to the Great Noligwa Mine) since 1971. Harmony is therefore able to make use of historical recovery trends as the primary basis for their recovery assumptions, rather than through the use of metallurgical testwork.

The metallurgical assumptions for the Zaaiplaats Feasibility Study were not materially different to those which were used for the Moab Khotsong LOM Plan. Zaaiplaats hosts Vaal Reef with essentially the same mineralogical properties as the remaining Moab Khotsong operations. No dedicated metallurgical testwork was therefore required as part of the Zaaiplaats Feasibility Study.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

11Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

The narrow-tabular nature of the Vaal and C Reefs at Moab Khotsong lend themselves to the estimation of grade and thickness in two-dimensional (“2D”) block models, without the requirements for geological wireframes. An independent process of building a set of three-dimensional (“3D”) wireframes of the structural interpretation to inform mine planning and the Mineral Reserve estimates is also undertaken.

Gold values are estimated into geological domains using geostatistical parameters that reflect the variability of the data and the data spacing, utilising a customised script in DatamineTM modelling software. This allows the steps in the process to be repeated, recorded and easily audited.

11.1Geological Database

The Mineral Resource estimate is based on the surface and underground exploration data obtained up to December 2021. The validated database contains a total of 129 surface drill holes and 516,547 underground channel samples. The database is exported from Fusion™ to Datamine™.

11.2Global Statistics

The global statistics by geozone are presented in Table 11-1.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 11-1: Summary of the Gold Assay Descriptive Statistics


Reef / Geozone	Facies	No. Samples	Minimum (g/t Au)	Maximum (g/t Au)	Mean (g/t Au)	Variance	SD (g/t Au)	COV
Vaal Reef
1	460	62 646	1.000	9 105	1 532	3,800,155	1 679	1.096
2	440	56 670	1.000	17 943	2 937	14,515,821	3 271	1.114
3	470	36 086	1.000	6 696	982	2,060,976	1 183	1.205
4	500	96 471	1.000	12 382	2 092	6,594,296	2 194	1.049
5	370	105 436	1.000	20 287	4 041	17,880,802	3 767	0.932
6	373	33 597	2.400	20 526	3 585	19,097,031	3 743	1.044
7 (5)	370	208	86.000	9 524	2 342	4,082,336	1 946	0.831
8 (4)	500	13	109.000	621	294	44,033	164	0.558
9 (3)	470	7	210.000	2 070	1 128	2,060,976	674	0.598
10 (2)	440	9	265.000	3 020	1 341	17,292	794	0.592
11 (1)	460	28	34.000	1 853	678	171,250	511	0.754
12	500	5 310	25.000	10 877	2 202	5,728,128	1 948	0.885
13	500	7 051	10.000	9 598	1 790	3,958,546	1 790	1.000
14	500	7 939	2.000	12 429	2 040	8,388,524	2 308	1.131
15	500	6 824	1.000	8 230	1 453	3,934,513	1 453	1.000
16	500	740	7.000	10 112	1 918	4,619,506	1 832	0.955
17	430	54 116	1.000	8 064	1 330	3,071,577	1 488	1.119
18	460	14 863	1.000	5 046	896	1,167,364	960	1.071
21 (18)	460	0	1.000	5 046	896	1,167,364	960	1.071
C Reef
1	CR1	13 885	1.000	12 358	1 951	7,280,867	2 258	1.157
2	CR3	5 224	1.000	4 597	675	901,390	831	1.231
3	CR2	9 424	1.000	8 287	1 337	4,401,901	1 561	1.168
Note: COV - Coefficient of variation

11.3Geological Interpretation

The reefs have been sub-divided into several lateral facies, or geozones, with similar geological and grade characteristics. These geozones consider variations in stratigraphy, mineralization, structure and sedimentology, and are estimated separately in estimation domains (“EDs”). The imported data is attributed to both the appropriate EDs, for generating geostatistical models.

11.3.1Vaal Reef Geozones and EDs

The independent estimation within the different geozones at Moab Khotsong result in seven different EDs, which are referred to as 370, 373, 300, 500, 470, 440 and 460 (Figure 11-1: Vaal Reef Estimation Domains). The characteristics of each geozone are described as follows:

•370 Geozone - high grade geozone in the Top Mine area with a narrow reef package, mainly dominated by conglomerate. Dark chloritic alteration is developed at the base or throughout the whole package. It has disseminated pyrite mineralization with occasional small buckshot pyrite;

•373 Geozone - high grade equivalent of the 370 Geozone in the Middle Mine area and has similar characteristics to the 370 Geozone;

•500 Geozone - medium to low grade geozone which is less conglomeratic than the 370 Geozone. The pyrite mineralization consist of coarse crystalline and replacement pyrite. the reef package is on average 140cm thick, but variation does occur;

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

•470 Geozone - low grade geozone developed on the boundary of the Top Mine area and which extends into the Lower Mine. The geozone consist of a poorly developed A Facies with sporadic C Facies and B Facies quartzites. Pyrite mineralisation can be both crystalline and disseminated;

•440 and 460E Geozones - extend from the neighbouring Kopanang Mine (Figure 3-1), and which are separated from each other purely on grade. The geozones are dominated by the C Facies. A carbon seam is developed on the basal contact of the reef; and

•460W Geozone - also extends from Kopanang Mine into the Lower Mine area. The Geozone is similar to the 460E Geozone and although the reef may contain a thick carbon seam, it is a hard seam that typically does not contain gold.

11.3.2C Reef Geozones and EDs

The independent estimation within the different C Reef geozones at Moab Khotsong result in three different EDs, which are referred to as CR1, CR2 and CR3 (Figure 11-2: C-Reef Estimation Domains). The characteristics of each geozone are described as follows:

•Geozone CR1 - is the high-grade geozone within which the Great Noligwa shaft is located and in which area most of the historical mining on the C Reef has taken place. From a geostatistical point of view the area is both higher grade and has a thicker channel width than the other C Reef geozones. Geologically this is because both the No. 1 and No. 2 Units of the C Reef are preserved, rather than just the No. 2 Unit. The highest grades are present where both units are well developed and have carbon. The areas immediately beyond the No. 1 sub-crop position still have very well developed high grade No. 2 facies and are included in the CR1 geozone;

•Geozone CR2 - is the low-grade geozone at Great Noligwa and is also characterized by thin or no reef. Grades are often very low. This geozone represents an inter-channel paleo-high where no conglomerate deposition has occurred. Subsequent carbon and gold mineralization has been focused in the channel areas, with the inter-channel areas being virtually barren of gold; and

•Geozone CR3 - the reef in this geozone consists of a mixture of well-developed and poorly developed No. 2 Unit, with the odd No. 1 Unit remnant. Areas of hangingwall-footwall contact conditions can be expected to be fairly common within this geozone. Grades can be expected to vary drastically over short distances, as new reef types can occur very abruptly. The transition from geozone CR3 to geozone CR2 is probably gradational in areas. Geologically geozone CR3 represents a gradational change from channel deposits to interchannel deposits. The paleo-topography was uneven, and terrace and slope conditions may have played a role in reef development. Fairly narrow zones of high grade can be expected to be separated by low grade, the low-grade areas becoming more common towards the inter-channel areas.

11.4Structural Wireframe Model

A set of 3D structural wireframes is generated, representing the geological interpretation for each reef. This is informed by the geological drilling, chip sampling, underground geological mapping and survey point data (“pegs”) data and is created in Datamine™ in order to allow subsequent mine design and planning to take cognisance of the latest geological information. These wireframes are not required for the Mineral Resource estimates.

11.5Compositing

The drill hole and chip samples are composited over the full length of the reef intersection.

11.6Capping

Outlying values (both for cmg/t and channel width) are calculated per domain at an optimal percentile using the “QUANTILE” process. The “capping” allows for meaningful Semi-Variogram modelling and avoids potential over-estimation due to extreme sample values. The capping values are presented in Table 11-2.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 11-2: Capping Values by Reef and Geozone


Reef / Geozone	Facies	Au Cut (g/t) (Max)	CW Cut (cm) (Max)	Reef / Geozone	Facies	Au Cut (g/t) (Max)	CW Cut (cm) (Max)
Vaal Reef				C Reef
1	460	275.9	33.0	1	CR1	148.9	83.0
2	440	498.4	36.0	3	CR2	43.3	106.0
3	470	55.8	120.0	2	CR3	123.7	67.0
4	500	59.0	210.0	Note: CW - Channel width
5	370	121.5	167.0
6	373	84.8	242.0
7 (5)	370	52.6	181.0
8 (4)	500	4.1	153.0
9 (3)	470	12.0	172.0
10 (2)	440	91.5	33.0
11 (1)	460	9.8	189.0
12	500	46.1	236.0
13	500	36.5	263.0
14	500	58.4	213.0
15	500	35.5	232.0
16	500	74.4	136.0
17	430	152.2	53.0
18	460	98.9	51.0
21 (18)	460	98.9	51.0

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

UPDATE


Figure 11-1: Vaal Reef Estimation Domains

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 11-2: C-Reef Estimation Domains

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

11.7Variography

The experimental semi-variogram is a descriptive statistic diagnostic tool for spatially characterizing regionalized variables and is central to the process of kriging with the set data that can be used. The semi-variogram is a mathematical function that describes how the spatial continuity of the sampled attribute changes as a function of distance and orientation.

Either an isotropic or an anisotropic model can be defined, comprising a nugget variance and up to 9 individual structures, although it is rarely necessary to include more than three structures. Each structure may be either spherical, power, exponential, Gaussian or De Wijsian, although spherical models are deemed adequate for this shaft. Point-support semi-variograms are modelled for the Measured Mineral Resources; 60m x 60m declustered-support semi-variograms are modelled for the Indicated Mineral Resources and 120m x 120m declustered-support semi-variograms are modelled for the Inferred Mineral Resources .

11.8Mineral Resource Estimation Methods

Grade and thickness estimates are undertaken within the geozones and informed by statistical and geostatistical analysis. Gold accumulation (cmg/t), which factors both reef thickness and grade, and channel width, are the two variables estimated. No change of support corrections are considered necessary as it is assumed that the differing support sizes for chip samples and drill hole samples are negligible.

11.9Estimation Parameters

The orientations and ranges of each geozone’s Semi-Variogram are used to determine the optimised set of kriging estimation parameters. The search ellipse is aligned with respect to its range and direction, to the direction of the associated semi-variogram, as well as the range distances.

The estimation method used for the local Measured Mineral Resource estimates is Ordinary Kriging (“OK”) and for the Indicated and Inferred estimates, simple macro kriging (“SMK”). Estimates are generally kriged into 30m x 30m blocks for the Measured category, using point support data. The Indicated category estimates are kriged into 60m x 60m blocks, using the associated semi-variograms, utilising a macro kriging declustered data set. Similarly, the Inferred category estimates are kriged into 120m x 120m blocks, using the associated semi-variograms.

The minimum and maximum number of data points used for the Vaal Reef by Mineral Resource category are:

•15 and 40 for Measured;

•8 and 20 for Indicated; and

•3 and 10 for Inferred.

The minimum and maximum number of data points used for the C Reef by Mineral Resource category are:

•15 and 35 for Measured;

•10 and 40 for Indicated; and

•4 and 10 for Inferred.

Any un-kriged areas in the Inferred category regions are then estimated using a global mean.

The distribution of the Vaal Reef cmg/t estimates is show in Figure 11-3 and the distribution of the cmg/t estimates for the C Reef is shown in Figure 11-4.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 11-3: Distribution of the Vaal Reef Gold Values at Moab Khotsong

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 11-4: Distribution of the C Reef Gold Values at Moab Khotsong

11.10Relative Density and Tonnage Calculation

The RD currently used for tonnage calculation at Moab Khotsong is an average of 2.78. Reef volume is determined by block area multiplied by the thickness estimate. The tonnage of each reef horizon is determined by multiplying the volume by the RD.

11.11Model Validation

The QP validated the Moab Khotsong Mineral Resource model using the following:

•visual comparisons with the raw drill hole data;

•comparisons of the raw drill hole data statistics with the model statistics;

•model volume;

•swath plots; and

•visual assessment of the block model with drill hole intersections to ensure that the grades are locally honoured by the model.

The QP did not identify any critical errors in the block model.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

11.12Mineral Resource Evaluation

The Mineral Resource estimate for Moab Khotsong is considered to have reasonable prospects for economic extraction. The cut-off value for the Mineral Resources has been determined as 1,500cmg/t, based on the economic assumptions presented in Table 11-3, at the effective date of 30 June 2022. This cut-off considers high-level assumptions for mining and processing, as well as Moab Khotsong’s likely cost structure, informed by the ongoing mining operations.

The gold price has been derived by the Harmony Executive Committee. The QP considers the price to be appropriate for Mineral Resource estimation and is slightly higher than that used for estimating Mineral Reserves (USD1,546/oz).

Table 11-3: Harmony Economic Assumptions (30 June 2022)


Description	Unit	Value
Gold Price	USD/oz	1,723
Exchange Rate	ZAR:USD	15.35
Gold Price	ZAR/kg	850,191
Plant Recovery Factor	%	96.92
Unit Cost	ZAR/t	4,708

11.13Mineral Resource Classification and Uncertainties

The Mineral Resources have been classified into Measured, Indicated and Inferred categories, according to the SAMREC Code and S-K 1300 definitions. The classification is based on geostatistical and geological confidence.

The geological loss factors presented in Table 11-4 have been applied to the Mineral Resource estimates. These are informed by the analysis of the drilling intersections, the structural interpretation, and the historical geological losses.

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Table 11-4: Geological Losses Applied by Mineral Resource Category


	Vaal Reef			C Reef
Classification	Top Mine	Middle Mine	Zaaiplaats	Top Mine
Measured	3.0%	2.0%	2.0%	3.0%
Indicated	15.3%	14.1%	17.0%	17.8%
Inferred	33.7%	30.0%	30.0%	33.7%

The application of the classification criteria above results in the following set of approximate sample spacings for each Mineral Resource category:

•1,000m x 1,000m for Inferred;

•100m x 100m for Indicated; and

•5m x 5m for Measured (underground channel sampling).

Factors that may affect the Mineral Resource estimates include the following:

•gold price assumptions;

•exchange rate assumptions;

•operating and capital cost assumptions;

•gold recovery assumptions;

•geology-related risks; and

•operational risks.

11.14Mineral Resource Estimate

The Mineral Resource estimate, as at 30 June 2022, exclusive of the reported Mineral Reserves, for both the Vaal and C reefs is presented in Table 11-5. It is important to note that the combined Measured and Indicated Mineral Resources, inclusive of Mineral Reserves, are carried forward to the Mineral Reserves conversion and subsequent LOM planning.

The QP compiling the Mineral Resource estimates is Ms LB Freese, Ore Reserve Manager, and Harmony employee.

Table 11-5: Summary of Moab Khotsong Mineral Resource Estimate as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	2.331	17.64	41,110
Indicated	3.476	16.96	58,962
Total / Ave. Measured + Indicated	5.807	17.23	100,072
Inferred	2.555	19.09	48,762

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	2.569	0.514	1.322
Indicated	3.832	0.495	1.896
Total / Ave. Measured + Indicated	6.401	0.503	3.217
Inferred	2.816	0.557	1.568
Notes:
1. The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is LB. Freese, who is the Ore Reserve Manager, and who is a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. Tonne measurements are reported in metric units. Gold grades are reported in grams per metric tonne (“g/t”).
4. The Mineral Resources are reported using a cut-off value of 1,500cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as million metric tonnes (“Mt”) rounded to two decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences between metric tonnes (“t”), gold value and metal content.
8. The Mineral Resource estimate is for Harmony’s 100% interest.

The location of the Vaal Reef and C Reef Mineral Resources in relation to the mining right boundary is presented in Figure 11-5 and Figure 11-6, respectively.

11.15Audits and Reviews

Mineral Corporation Consultancy (Pty) Ltd (“The Mineral Corporation”) conducted an external audit of the current Mineral Resource and Mineral Reserve estimates in August 2021. Its findings were presented in report No. C-HGC-R&R-1950/1179. The Mineral Corporation concluded that Mineral Resources and Mineral Reserves as at June 2022 can be disclosed and signed-off by the QP according to internationally recognised mineral reporting guidelines and rules.

11.16Mineral Resource Reconciliation

The combined Measured and Indicated Mineral Resource gold content estimate for 2022, exclusive of Mineral Reserves, decreased by approximately 12% from 5.660Moz to 5.392Moz of gold. This decrease is primarily due to a reduction in Mineral Resources in the Zaaiplaats area due to rock engineering pillars and inventory movement (Hormah Block).

•Top and Middle Mine depletions of 0.280Moz were replaced and the Resource from these areas increased by 0.189Moz and 5%

•Value increased by 2 % accounting for 0.066Moz

•Volume increased by 3%. Structure gains accounted for 0.031Moz, 0.189Moz was accounted for by an increase in structure confidence and 0.097Moz was moved from inventory in isolated blocks of ground that can be mined profitably.

•The Zaaiplaats area reduced by 28% and 2.415Moz due to rock engineering dip pillars that was moved into inventory and the Hormah Block, that is not part of the Board Approved plan, was moved to inventory.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 11-5: Location of Moab Khotsong Vaal Reef Mineral Resources and Mineral Reserves

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 11-6: Location of Moab Khotsong C Reef Mineral Resources and Mineral Reserves

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

11.17Comment on Mineral Resource Estimates

In the opinion of the QP:

•The methodologies applied in estimating the Mineral Resource are based are well established;

•there is no known geological data that was not used that could materially influence the estimated quantity and quality of the Mineral Resource;

•there is no obvious geological, mining, metallurgical, environmental, social, infrastructural, legal and economic factors that could have a significant effect on the prospects of any possible exploration target or deposit; and

•the model for the Mineral Resource estimate is sound and it was not deemed necessary to consider alternative interpretations for the current Mineral Resource Statement.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

The Mineral Resources are derived through a business planning process and consideration by the Chief Operating Decision-Maker (“CODM”). The business planning process comprises multi-functional reviews inclusive of all mining, support and service departments that are involved in the verification of the Modifying Factors and other inputs. The CODM consists of various executive roles and responsibilities. These executives assess the profitability, the revenue and production costs. The CODM also considers capital expenditure, gold production and tonnes milled when assessing the overall economic sustainability.

12.1Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

The results and assumptions derived from the business planning process extends over an [18-month] period. The planning process carefully considers strategic plan directives; analysis of historical performance; realistic productivity, and cost parameters; Modifying Factors; and technical and economic studies that have demonstrated justified extraction, as applicable to specific portions of the Mineral Reserves.

The Mineral Reserves are considered based on several factors, including:

•the latest geological structure and associated Mineral Resource estimation models that constrain the layout for the mine design and LOM planning;

•the use of only Measured and Indicated Mineral Resources to derive the Mineral Reserves;

•the need for regional rock engineering stability pillars which are used for mining and geological support;

•the extent, or lack thereof, of pillar mining, mining of remnant areas, reclamation of broken ore out of old areas, tailings, or any other sources;

•the mining method in use at Moab Khotsong, taking into account the mining and rock engineering design guidelines (Section 13); and

•the sources of dilution and other relevant Modifying Factors.

The Mineral Resources form the basis of identifying the mineable areas. These mineable areas are then designed and scheduled, as per the design parameters and layout, using DeswikTM (Version 3). The Modifying Factors are then incorporated in order attain the Mineral Reserve estimate.

12.2Modifying Factors

A summary of the Modifying Factors that were applied in the conversion of Mineral Resources to Mineral Reserves for Moab Khotsong is presented in Table 12-1. The Modifying Factors are based on an analysis of 24-months of actual data, modified to take into account changes in future strategies as appropriate.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 12-1: Moab Khotsong Mineral Reserves Modifying Factors (30 June 2022)


Modifying Factor	Unit	Moab Khotsong	Zaaiplaats	Great Noligwa Shaft Pillars
Relative Density	t/m³	2.78t/m³	2.78t/m³	2.78t/m³
Stoping width	cm	170.0cm	154.0cm	169.0cm
Gully	%	10.10%	10.10%	12.35%
Off Reef	%	16.76%	12.00%	22.30%
Waste to Reef	%	14.35%	0.00%	60.54%
Flushing tons	%	1.54%	3.15%	0.00%
Discrepancy	%	20.18%	18.70%	20.18%
Mine Call Factor	%	69.00%	78.00%	69.00%
Plant Recover Factor	%	96.92%	96.50%	96.92%
Mine Recover Factor	%	66.89%	75.27%	66.89%
Plant Call Factor	%	103.00%	100.00%	103.00%
Mineral Reserve cut-off	cmg/t	1 800	1 800	1 200

Plant recovery, as shown in Table 12-1, is also consistent with the processing and recovery methods as defined in Section 14.

12.3Mineral Reserve Estimate

The reported Mineral Reserves, as at 30 June 2021, are declared as delivered to the plant, except for the recovered gold content. This gold content is calculated after factoring in the plant recovery as a Modifying Factor. The Mineral Reserve estimate for Moab Khotsong is summarised in Table 12-2. The location and classification of Mineral Reserve is presented in Figure 11-5 and Figure 11-6. The Qualified Person responsible for the estimate is Ms LB Freese, Ore Reserve Manager, and Harmony employee.

Table 12-2: Summary Moab Khotsong Mineral Reserve Estimate (30 June 2022) 1 - 5


METRIC
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	2.690	7.48	20,117
Probable	11.984	8.78	105,250
Total (Proved + Probable)	14.675	8.54	125,367
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	2.966	0.218	0.647
Probable	13.211	0.256	3.384
Total (Proved + Probable)	16.176	0.249	4.031
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is LB. Freese, who is the Ore Reserve Manager, and who is a Harmony employee.
2. Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3. Gold content (kg) is recovered gold content after taking into consideration the Modifying Factors.
4. Recovered gold (kg) is based on a conversion factor of 32.157oz/kg.
5. Mineral Reserves are reported using a cut-off grade of 1,800cmg/t determined using a gold price of USD1,546/oz gold.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

12.4Mineral Reserve Reconciliation

The declared Mineral Reserve decreased from 4.245Moz as at 30 June 2021 to 4.031Moz as at 30 June 2022. The key variances are shown in Figure 12-1 and are noted as follows:

•depletion;

•the addition of Zaaiplaats Mineral Reserves;

•changes due to grade, and

•changes due to Modifying Factors.

12.5Commentary on Mineral Reserve Estimate

The Mineral Reserve estimates at Moab Khotsong are informed by a business planning process and take into consideration all the necessary Modifying Factors. The mine is currently mining profitably, and the Mineral Reserve estimates are supported by an economic analysis which indicates positive cash flows.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 12-1: Graph of Moab Khotsong Mineral Reserve Reconciliation

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

13Mining Method

Section 229.601(b)(96) (13) (i-v)

The tabular nature of the orebody, along with its depth and structural complexity, dictates the mining method employed at Moab Khotsong. The primary mining method used at Moab Khotsong is conventional breast mining, on a scattered grid. This method, as opposed to the Sequential Grid Mining (“SGM”), is necessitated by the complex geology at Moab Khotsong, which prevents the implementation of a strict mining sequence. Moab Khotsong makes extensive use of backfill for the support of stopes. The economic reef horizons of Top and Middle Mine are exploited between depths of 1,698m and 3,054m below surface.

Zaaiplaats is located between the elevations of 3,054m and 3,526m below surface. Zaaiplaats will be accessed by declines from the northeastern end of the Zaaiplaats property to take advantage of the existing access development in place

13.1Mining Operations

The Vaal Reef is extracted at both Great Noligwa and Moab Khotsong, whilst the C Reef is only extracted at Moab Khotsong. The latter represents only 5% of the Moab Khotsong production.

The Zaaiplaats Mineral Reserves are situated below the existing infrastructure. These Mineral Reserves will be accessed through declines from 101 Level at Moab Khotsong mine, to take advantage of existing development in that area. The ore will be extracted via the Moab Khotsong shaft. The assumptions regarding the mining operations for Zaaiplaats are supported by a Feasibility Study, completed by Harmony in 2021.

All ore is transported to the Noligwa Plant where it is processed.

13.1.1Scattered Mining

The primary mining method used at Moab Khotsong is conventional breast mining, on a scattered grid (“Scattered Mining”). This method, as opposed to the SGM, practiced at many of Harmony’s other deep level operations, is necessitated by the complex geology at Moab Khotsong, which prevents the implementation of a strict mining sequence. Moab Khotsong makes extensive use of backfill for the support of stopes.

The Scattered Mining makes use of pillars with a pre-developed grid of tunnels, aimed at providing geological information ahead of the mining face, in order to control geotechnical stress. The Geotechnical Engineering department provides detailed numerical modelling and guidance regarding the best mining practices to be applied to minimize the risk associated with seismicity. An example of the mining sequence used at Moab Khotsong is shown in Figure 13-1.

Development for the Scattered Mining at Moab Khotsong is predominantly in the footwall and the access haulages are typically positioned 100m to 120m below the reef plane. Primary development is done off-reef (in waste rock), while secondary development is done on-reef (in the mineralised zone). In primary development, horizontal haulages are developed from the vertical shaft, extending to the extremities of the mining level. The inter-level spacing, which is the perpendicular distance between two consecutive level stations underground, is typically 90m. Further development is done at defined intervals along the haulages, towards the mineralised zones, in the form of crosscuts. For secondary development, an inclined excavation that connects two levels is established, referred to a raise or winze depending on the upwards or downwards direction of the development. A schematic layout is provided in Figure 13-2.

Haulages, crosscuts and raises are pre-developed on a grid system and raises are typically spaced approximately 130-180m apart. The presence of large geological structures within the raise line can influence these footwall development positions. A plan view of a typical footwall crosscut is shown in Figure 13-2.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 13-1: Plan Showing the Mining Sequence and LOM Extents at Moab Khotsong

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 13-2: Plan view of a Typical Footwall Crosscut at Moab Khotsong

Figure 13-3: Cross Section of the Development Blueprint at Moab Khotsong

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

A cross section view of the blueprint for inclined secondary development is depicted in Figure 13-3. This is used to access the reef contact and is advanced from the position of respective crosscuts. Ore is extracted from stoping panels established from the inclined development. The typical stoping panel dimensions are a panel length of 25m and a stoping width of 1.70m for the Vaal Reef.

13.1.2Shaft Pillar Extraction

The extraction of portions of the Great Noligwa mine shaft pillar is included in the LOM Plan for Moab Khotsong. A shaft pillar is an un-mined area, surrounding the vertical shaft system, which was left un-mined in order to protect the shaft infrastructure from geotechnical stresses, during mining operations. It is common practice within South African gold mines for a portion of the shaft pillar to be extracted, usually towards the end of a mine’s life.

The thickness and orientation of the Vaal Reef in the shaft pillar is the same as in other parts of Moab Khotsong, and so the mining approach, mining method and mine designs discussed in this chapter are broadly applicable to the shaft extraction process. Particular attention is given to the monitoring of the geotechnical aspects of the mining operations during shaft extraction.

13.2Mine Design

The mine design strategy aims at maximising the safe extraction of ore, while minimising the risk of geotechnical failures, which can result in operational disruptions and dangerous working conditions. The most critical parameter that varies in mining is the geology of the area. The Vaal Reef has been subject to faulting and intrusions by igneous dykes and sills that cut across the reefs. The most significant form of control at Moab Khotsong for rockfalls and rock bursts is the backfill support. Backfill is considered a regional support system. Ledged raises are supported by a combination of packs and backfill ribs, which keeps the central raise line much more stable during the stoping operations.

The occurrence of geological faults may lead to production delays, geotechnical risks, and the potential of flooding. Depending on the geology of the dyke or sill, a change in the mining direction may be required, or as in the case of low-risk scenarios the Rock Engineering department may suggest a safety and support strategy to mitigate the associated geotechnical risk. A change in mining direction may result in Mineral Resource losses, or an increase in dilution.

A mine design that is sufficiently informed, with geological data, is progressed to the mine planning phase. Mine planning is done on a macro scale as well as on a micro scale. On a macro scale, a regional cut-off grade is applied and the material below cut-off is excluded from the mining model. On a micro scale, the mining model is then subject to constraints that are applied because of the geotechnical design and other limitations.

13.2.1Mine Design Parameters

Mine design is undertaken using DeswikTM software (Version 3) and includes the delineation of mining areas for each mining level and section, usually leading from an extension of the existing mining sequence, and the definition of the necessary development layouts. The mine design includes bracket pillars on either side of geological features, which are 5m pillars if the features overlie stopes and the dip does not exceed 70°, or 10m pillars if the dip exceeds 70° or the feature extends above or beneath a stope. The mine design parameters used are shown in Table 13-1.

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Table 13-1: Key Mine Design Parameters


Parameter	Unit	Value
Regional Stability
Dip Stabilizing Pillar Dimensions
Strike Span	m	170
Dip Span	m	N/A
Strike Stability Pillar Spacing¹	m	30
Access Haulages Middling to Reef	m	70
Primary Development
Advance	m/month	24
Secondary Development
Advance	m/month	18
Economic Parameters
Cut-off Grade (planning)	cmg/t	1,800
Notes: 1. Pillar spacing is measured skin to skin.

13.3Mine Plan Development and Life of Mine (“LOM”) Schedule

The mining method at Moab Khotsong is dependent on development staying ahead of the mining front, so that accurate geological information is gathered and included in final designs before mining commences. This also enables planning and scheduling activities to be accurately sequenced, which leads to better planning, safer working conditions, and improved profitability.

The LOM plan and scheduling starts with the use of the planning model, which is modelled at a cut-off grade of 1,800 cmg/t. The mining rates used in determining the LOM plan are based on the current and expected operational performance, notwithstanding any unforeseen underground mining constraints. The remaining LOM for the operation is planned for 22 years up to 2044, with a planned mining rate averaging at approximately 800ktpa (milled tons) over the LOM period. The extent of the Moab Khotsong LOM plan is shown in Figure 13-1. The combined forecasted tonnages and gold produced for the LOM of Moab Khotsong is shown in Figure 13-4 and Figure 13-5, respectively.

13.4Geotechnical and Geohydrological Considerations

Apart from the geotechnical risks that can be caused by the existence of geological structures and the presence of water and gas, there is also a seismicity risk at Moab Khotsong due to the depth of the mining operations. Moab Khotsong maintains a network of seismic and geohydrological monitoring points and a dynamic geotechnical model which takes the latest geological structural model and the selected mining method into account to design a suitable mining layouts.

Detailed geotechnical design recommendations are provided for development, ledging, stoping and pillar extraction activities. The geotechnical design recommendations include, amongst others:

•safe distances between development and potentially active geological features,

•middling distances between development tunnels or between development and stoping operations;

•the design of incline development infrastructure such as travellingways and boxholes;

•priority areas for mining during ledging operations;

•mining direction with respect to potentially active geological features;

•bracket pillar dimensions against geological structures; and

•the safe abandonment and removal from the Mineral Reserve of un-mined areas adjacent to potentially seismically active geological features.

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Figure 13-4: Graph of Moab Khotsong LOM Plan - Ore Milled

Figure 13-5: Graph of Moab Khotsong LOM Plan – Gold Produced (kg)

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

The dynamic geotechnical model is also used to manage and monitor the occurrence of ground water and gas intersections at the mine. Moab Khotsong, like most deep level operations, does encountered water-bearing fissures and faults, as well as methane. There is always some risk associated with flooding and gas explosions at the mine, in the event of an unforeseen influx of uncontrolled water or gas, from within the mining operations or from neighbouring mining operations.

Flooding from the redundant mines adjacent to Moab Khotsong operations is a risk that is being effectively mitigated through pumping from Moab Khotsong’s Great Noligwa Shaft. The regional flooding risk is being managed collectively by Margaret Water Company, Harmony and Village Main Reef Mines (“VMR”).

Mine water from several neighbouring mines flows in at Great Noligwa’s 74 Level and accumulates in a 2km dewatering dam at 74/76 level. Water is then allowed to gravitate down to 76 Level, in a controlled manner, through 450mm columns into the 78 Level dewatering dams. The water is then pumped to surface through the 78 Level pump station. This water is used by the processing plant. Water levels and influx is monitored on a 24-hour basis by the control room, and the pumping system is automated and operated from surface.

Cover drilling is also done ahead of development to identify water and gas intersections in advance. Apart from drilling, water is also identified during primary and secondary development. In the event of major water intersections, a water sealing plan is initiated. Most of the mining areas have been sealed off, and in some cases hoses and pipes are installed which diverts water to sumps, to be eventually pumped out to surface.

13.5Dilution and Grade Control

Grade control takes place from the exploration phase through the sampling of drill core, to sampling of excavations (which concentrates on solid ore grades) to broken ore grade control, which focusses on tonnage and grade estimation of the ore flow from the blasted stope to the delivery to the plant.

The Mine Surveyors measure stopes on a monthly basis. The Mine Surveyors are accompanied by Grade Control Officers, who assess the extent to which blasted material has been cleaned from the stope and identify any tonnage lock-ups. Follow up checks are done on previously identified and reported lock-ups, off-reef mining and areas where reef has been left in the footwall or hanging wall.

On the monthly measuring day, all relevant information is extracted electronically in order for the necessary adjustments to be made to the grade and tonnage calculations.

13.6Ore transport

The blasted ore from the stoping panels is moved with winch-operated scrapers along gullies to ore passes where it gravitates down to the loading boxes in the footwall cross-cuts below the stopes. Broken rock handling is track-bound, and ore is transferred via several inter level sub-vertical transfer systems that gravity feed to the main silos on 77 Level or 103 level.

Separate streams are used for waste rock and gold bearing ore in Middle Mine and the future Zaaiplaats. Most of the waste rock is separated from reef ore underground and accounted for separately. Top Mine waste rock does not have separate streams and is hoisted with gold bearing ore.

The waste and reef rock is hoisted separately to surface through the main shaft onto separate belts. The waste and reef rock converges at the rail silo and is transported to the Great Noligwa Plant via rail.

13.7Mining Equipment and Machinery

Development and stoping operations at Moab Khotsong require the following equipment:

•haulages and associated development require hydro-powered (“HPE”) drill rigs for underground excavations and tunnelling;

•production drilling in stopes requires compressed air hand-held drills;

•raise boring drill rigs are used for the development of ventilation connections and ore passes; and

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•ore from the stoping ore passes is loaded directly into hoppers from box-front chutes. Waste rock from development operations is loaded into similar hoppers and both ore and waste is trammed to the shafts.

13.8Mining Personnel

Moab Khotsong mining operations are labour intensive. The mine is supported by approximately 5,800 mine-employed personnel and approximately 2,700 labour personnel are in direct production. The underground mining operations uses an 11-hour shift system, operating a 2-shift cycle per day. The mining personnel operating on this shift cycle, comprise of workers performing development, stoping, and other additional tasks. These personnel are sub-divided and organised into support, breaking (also referred to as drill and blast crew), and cleaning crews.

The supporting and breaking crew complete tasks during the day shift, while cleaning is done during the night shift. A development crew is responsible for one development end at a time. Moab Khotsong plans to achieve an average of approximately 240m2/crew/month.

13.9Commentary on Mining Method

The majority of the mining at Moab Khotsong utilises the Scattered Mining method, with backfill support. This mining method has been extensively used and is well suited to the relatively complex geological structure.

The mine design, planning and scheduling for the mine is developed using DeswikTM (Version 3) software, considering the geotechnical model and related parameters. The main geotechnical and geohydrological risks at Moab Khotsong include the presence of gas, ground water and seismicity, which are managed through the integrated monitoring systems, and incorporated into working mining models that inform daily mine planning decision-making. Extensive geotechnical recommendations are included in the mine design for development, ledging and stoping operations.

The mining rates, machinery and equipment, ore transport, grade and dilution control and labour resourcing are driven by the mine schedule and are within existing operating limits or are supported by a Feasibility Study.

The mining parameters and associated risks for Moab Khotsong are well understood, and risk mitigation measures are put in place.

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14Processing and Recovery Methods

Section 229.601(b)(96) (14) (i-iv)

The gold processing facility at Great Noligwa has been in operation since the 1960s and is hence a well-established operation. The technology used to process the gold-bearing ore is well established, being used across the majority of South African gold operations and suitable for the style of mineralisation.

14.1Mineral Processing Description

All ore mined at Moab Khotsong Operations is treated and smelted at the Great Noligwa Plant. The ore which is mined at Moab Khotsong mine is transported to Great Noligwa by rail, while a conveyor belt system is in place between the Great Noligwa shaft and the Great Noligwa Plant. The process flow for Great Noligwa Plant is presented in Figure 14-1.

The material from the different ore sources is milled and thickened at the Great Noligwa Plant. The slurry is pumped to the South Uranium Plant where the uranium is extracted. This involves the leaching of uranium by sulphuric acid and manganese dioxide. After the uranium has been leached, the thickened slurry, from the counter-current decantation section, is pumped back to Great Noligwa Plant for gold extraction. The uranium concentration continues inside the South Uranium Plant by steps including ion exchange, solvent extraction and precipitation. The final product (Ammonium Di-Uranate) from the uranium plant is dispatched and transported by road for calcination at Nuclear Fuel Corporation of South Africa (“NUFCOR”) uranium refinery, situated in Westonaria. The Uranium Oxide is finally transported to convertors in Canada and the USA.

A conventional gold leach process (cyanidation) follows, incorporating liquid oxygen injection and control of pH through the addition of lime, is applied. The cyanidation process is one of the most utilised methods for the recovery of gold from auriferous ores. The use of cyanide leaching for gold recovery is based on gold’s properties, mainly its solubility (ability to dissolve) in cyanide solutions.

Once the gold is dissolved into the cyanide solution it has a higher ability to attach onto activated carbon through the application of carbon in pulp (“CIP”) technology. In the CIP tanks, a carbon and slime mixture is pumped counter-current flow, with the carbon becoming increasingly “loaded” with gold.

The loaded carbon then enters the elution columns, which are high pressure vessels that circulate the loaded carbon extracting the gold. The gold will “deabsorb” from the activated carbon and attach onto stainless-steel wool by means of electrowinning. The CIP circuit makes use of gravity flow of slime between the consecutive counter-flow stages in order to recover recirculate the activated carbon back into the system. Following this process, the cathode steel wool is smelted after drying in the calcining ovens. The gold doré is then dispatched to Rand Refinery (Pty) Limited for final refining, with silver as a by-product.

14.2Plant Throughput, Design, Equipment Characteristics and Specifications

The milled ore follows a standard cyanide leach, CIP and electrowinning process in order to extract the gold bullion. The current plant capacity is 260ktpm, or daily treatment rate of approximately 9,420tpd at 92% availability (Table 14-1).

The plant is operating below its designed throughput capacity, as shown in Table 14-2, and has the potential to process the additional ore planned from Zaaiplaats.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Afcaa


Figure 14-1: Schematic Flow Diagram of the Metallurgical Process

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 14-1: Key Equipment Specifications at Great Noligwa Gold Plant


Equipment	Unit	Capacity
Mill Silo (per silo – 3 silos)	Volume / silo (m3)	2,900
	Tonnes	4,500
ROM Mill (per mill – 3 mills)	Volume / tank (m3)	355
Leach (10 leach tanks)	Dry Tonnes / tank	825
CIP (8 tanks)	Volume / tank (m3)	749
	Dry Tonnes / tank (t)	1,000
Acid Wash (per tank - 2 tanks)	Volume / tank (m3)	36
	Carbon (t)	12
	Cycle time (hr)	2
Elution (per tank - 2 tanks)	Volume / tank (m3)	30
	Carbon (t)	12
	Cycle time (hr)	24
Thickener (- 2 thickeners)	Volume / thickener 1 (m3)	6,400
	Volume / thickener 2 (m3)	3,000
	Dry Tonnes (t)	4,000

Table 14-2: Design Throughput Versus Actual Throughput at Great Noligwa Gold Plant


	Throughput
Equipment	Design (t/hr)	Actual (t/hr)
Mill	200	190
Leach	350	180
CIP	350	180
Thickener	350	180

The cyanide leach is an intricate balance of time, pH and oxygen sparging. These parameters have been determined with metallurgical test work and historical performance to optimise the recovery. The parameters used in this process are set out in Table 14-3.

Table 14-3: Leaching Process Material and Properties


Process Requirements			Properties
pH			10.5 - 11.5 (controlled by lime addition)
Cyanide			180 - 300 ppm as 100% NaCN
Leaching Time			24 – 40 hours
Oxygen			Air or oxygen sparged, 5 - 25 ppm O2
Cyanide Relative Density			1.38 - 1.45, 40-50% solids at SG 2.7

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14.3Energy, Water, Process Material and Personnel Requirements

14.3.1Energy

The Great Noligwa Plant requires approximately 112GWh of electricity per annum. This is supplied by Eskom.

14.3.2Water

The Great Noligwa Plant requires approximately 1,000Ml of water per annum, which includes both potable and process water. The operation has an established and secure water supply, which is sufficient for the requirements of the LOM Plan.

14.3.3Process Material

The reagents and their consumption rates are presented in Table 14-4.

Table 14-4: Consumables


Consumable	Unit	Value
Lime	tpm	77.0
Flocculant	tpm	4.0
Cyanide	tpm	45.0
Carbon	tpm	8.7

14.3.4Personnel

The Great Noligwa Plant is appropriately staffed for the required tonnage throughput, having a compliment of 188 people.

14.4Commentary on the Processing and Recovery Methods

The Great Noligwa Gold Plant has been in operation since 1972 and, as such, the processing method is considered well established for the style of mineralisation processed. The plant makes use of historical trends and data as a basis for the forecast processing parameters, except for instances where projects are planned for optimisation, for which appropriate test work is done.

The recoveries used in the business plan are based on historical performance. The methodology applied considered the historical metallurgical recovery (18-month period) for the relevant ore source. The actual monthly head grades were reviewed and the relationship between the head grade and recovery were used as base for the 2021/22 Business Plan metallurgical recoveries, taking into consideration the relevant forecast head grades (Figure 14-2).

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 14-2: Graph of Historical Recovery (18 month actual)

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

15Infrastructure

Section 229.601(b)(96) (15)

Moab Khotsong is an established operation and all of its surface and underground infrastructure are sufficient for the Middle Mine and Top Mine LOM requirements.

Zaaiplaats commenced with development on 101 Level after Board approval in 2021.

15.1Surface Infrastructure

The infrastructural layout includes hoisting facilities; logistical support for core handling, sampling, and transporting; the processing plant; waste rock facilities; tailings and leaching infrastructure; roads; water and power supply; ventilation and refrigeration systems; stores and workshop support; electrical supply; offices; housing and security. The location of the surface infrastructure is presented in Figure 15-1. The location of the surface infrastructure related specifically to Great Noligwa is presented as a Google Earth image in Figure 15-2, whilst that for Moab Khotsong Middle Mine is presented in Figure 15-3.

15.1.1Ore and Waste Rock Storage Facilities

The waste and reef rock is hoisted separately to surface through the Moab Khotsong main shaft onto separate belts. The waste and reef rock converges at the rail silo and is transported to the Noligwa Plant via rail (Figure 15 1 and Figure 15 2). Ore is stored in a run of mine (“ROM”) silo located at the plant.

There is a waste rock dump facility (“WRD”) located adjacent to the Moab Khotsong shaft which is currently not being used for deposition. The WRD is being reworked through the Noligwa and Mispah plants (Figure 15-1). The WRD dump facility will be utilized in later years as directed by the Zaaiplaats waste development and plant requirements.

15.1.2Tailings Storage Facilities

The tailings storage facility (“TSF”) for the Great Noligwa plant’s waste is located approximately 5km to the south of the plant. The TSF is currently active and is owned and operated by Moab Khotsong.

The TSF site has full engineering records including design, construction, operation, and maintenance plans. The design height for Mispah Dam 1 is 68m and for Mispah Dam 2 is 50m and is engineered in an upstream raising method. The designed volume for Mispah Dam 1 is 83Mm3 and for Mispah Dam 2 is 15.7Mm3 and at the current deposition rate, it is estimated that the TSF will be able to service the needs of the combined production from the Moab Khotsong operations until 2040.

A closure plan, typically extending over a 2-year period, to assess the TSF against the impact of extreme weather events because of climate change is also in place. In 2017, signs of distress were noted along the western embankment of Mispah Dam 1. Cracks extended diagonally up and parallel to the slope and increased with time. Bulging was observed at the toe. Deposition on the facility was halted immediately and detailed surveillance was implemented. An investigation ensued to determine the cause and understand the mechanism for the observed TSF behaviour. Possible mechanisms were identified and assessed. It was concluded that yielding of the underlying rock, in turn underlain by highly compressible strata, was the most plausible mechanism. The way forward included assessment of the available geological information to determine if similar conditions exist elsewhere along the TSF embankments. Mitigation and remedial measures were compiled and implemented to restore the TSF to an acceptable and safe condition and the facility was recommissioned in March 2019. Close monitoring of the TSF continues with no further signs of distress observed to date.

The TSF adheres to the SANS 10286 governed classification system and is monitored by internal engineers, supported by external engineering specialists.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 15-1: Moab Khotsong Surface Mine Layout and Infrastructure

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 15-2: Great Noligwa Mine Surface Infrastructure
Source: Google Earth (Image Date: June 2021)

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 15-3: Moab Khotsong Mine Surface Infrastructure
Source: Google Earth (Image Date: June 2021)

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

15.1.3Power and Electrical

Moab Khotsong’s power supply is designed to satisfy the planned LOM production and service requirements. The main power supply is managed and distributed via electrical sub-stations located on site. Total annual electrical consumption is in the order of 757GWh.

15.1.4Water Usage

Total water consumption for Moab Khotsong is in the order of 6,191Ml.

15.2Underground Infrastructure and Shafts

Moab Khotsong utilises the Great Noligwa twin shaft and Moab Khotsong twin shaft. The underground infrastructure is schematically depicted in Figure 15-4, along with the linkages between the shaft systems.

15.2.1Great Noligwa

Great Noligwa’s shaft collar is situated approximately 522m BMD and the vertical shaft system comprises a Main Shaft and Vent Shaft with diameters of 10.5m (Figure 15-4). Both have supporting sub-shafts. The sub-shafts extend from 50 Level to the shaft bottom.

The shaft bottom at Great Noligwa is 2,965m BMD, however, the lowest levels are no longer used, as production from this shaft system is focused on the extraction of the Vaal Reef shaft pillar, which is between 70 Level and 73 Level, or approximately 2,750m BMD. Accessing the shaft pillar requires only limited development, as the mining areas are within a radius of 460m of the shafts.

Men and material are moved separately using tramming. Underground broken rock handling is track-bound via locomotive material cars. These movements are supported by traffic management systems, including control room monitoring and logistics control. Rock is transferred via gravity feed to the main silo infrastructure, located on 80 Level. Rock from 80 Level silos is transferred to surface by means of the sub-shaft and vertical shaft systems.

15.2.2Moab Khotsong

Moab Khotsong’s shaft collar is situated 519m BMD. The vertical shaft system comprises a Main Shaft, which extends from surface to the shaft bottom at 3,649m BMD, or 103 Level (Figure 15-4). In addition, a sub shaft for rock and ventilation, the RV Shaft, extends from 73 Level to 103 Level.

The Middle Mine LOM plan is located between 2,600m and 3,054m below surface (3,118m and 3,572m BMD). These are accessed through development from 85 Level to 101 Level.

Men and material are moved separately using tramming. Underground broken rock handling is track-bound via locomotive material cars. These movements are supported by traffic management systems, including control room monitoring and logistics control. For the Middle Mine areas, Rock is transferred via gravity feed to the main silo infrastructure, located on 103 Level. Rock from the 103 Level silos is transferred to surface by means of the Main Shaft hoisting infrastructure; alternatively, it can be hoisted to 76 Level in the RV Shaft and transferred by rail to Great Noligwa Mine to be hoisted.

15.2.3Zaaiplaats

The Zaaiplaats LOM is situated below the current mining infrastructure, between 3,054m and 3,526m below surface (3,573m and 4,045m BMD). These will be mined from 101 Level to 114 Level. Accessing the LOM will require the development of declines from the southwest end of 101 Level.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Figure 15-4: Great Noligwa and Moab Khotsong’s Mine Shaft and Underground Infrastructure

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

15.3Commentary on Infrastructure

The operational infrastructure including road, rail, offices, security services, water and power supply is adequate, and is shared with the Harmony operations in the relevant areas. Overall, Moab Khotsong is well-established with sufficient logistical and infrastructure support for the existing and planned mining operations, although Zaaiplaats will require additional underground infrastructure to access this LOM.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

16Market Studies

Section 229.601(b)(96) (16) (i-ii)

16.1Market Overview

16.1.1New Mine Production

16.1.2Recycling

16.2Global Consumption and Demand

16.2.1Jewellery

16.2.2Investment

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

20% lower in Q1 2022, but 11% higher than a five-year quarterly average (Gold Demand Trends Q1 2022, Gold.org, April 2022).

16.2.3Currency

16.3Gold Price

16.3.1Historical Gold Price

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

16.3.2Forecast Gold Price

The gold price forecast of USD1,546/oz is conservative if corroborated against a long-term broker consensus gold price outlook (Figure 16 2).

16.3.3Harmony Group Gold Hedging Policy

Harmony has a hedging policy which is managed and executed at Group treasury level on-behalf of its operating entities. The key features of the hedging programme are as follows:

•the policy provides for hedging (or forward selling) up to a maximum of 20% of expected gold production for a rolling 24-month period;

•the policy has no minimum quantity that should be hedged, and if an attractive margin above cost cannot be achieved (i.e., in a low gold price environment) then no hedges are entered into;

•Harmony enters into ZAR-denominated gold hedges for its South African operations (for the non-South African assets it enters into USD-denominated hedges);

•Moab Khotsong does not enter into hedges in its own name but delivers bullion to Rand Refinery for refining on behalf of Harmony. Rand Refinery is one of the world’s largest single-site precious metals refining and smelting complex in the world. Rand Refinery refine all of Harmony’s gold to at least 99.5% purity, and acting as agent, sells the gold on the daily spot London fixing price and make payment to the Harmony two days later;

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

•Moab Khotsong does its mine planning and financial forecasts based on the estimated future gold price provided by the Group treasury, but its year-end actual financial results reflect the received gold price inclusive of the benefit of the hedging programme. Therefore, in theory, Moab Khotsong receives a hedged gold price for a maximum of 20% of its gold sales with the balance attracting the spot price.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

UPDATE


Figure 16-1: Graph of Annual Gold Price History – ZAR/kg

Figure 16-2: Graph of Consensus View of Forecast Gold Price

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

16.4Commentary on Market Studies

16.5Material Contracts

Harmony has contractual vendor agreements with various service providers and suppliers. A list of the most significant of these contracts, currently in place to support mining operations at Moab Khotsong, is presented in Table 16-1. All of the listed contracts are currently valid and in good standing. Terms, rates and charges of contracts are considered consistent with industry norms. Contract management processes are in place and resourced so that contracts re-tendered and/or renewed as they approach expiry.

Table 16-1: Material Contracts


Vendor Name			Nature of Service / Supply
T&J Umsebenzi			Underground support services
Lesedi Drilling			Underground diamond drilling
MSP Mine Support Products (Pty) Limited			Steel support
Traxtion Sheltam (Pty) Limited			Railway operations and track maintenance at the Vaal River Operations
AECI Mining Limited			Explosives and accessories
EBJ Matlosana (Pty) Limited			Underground secondary support services
Timrite (Pty) Limited			Supply of timber

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

17Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Section 229.601(b)(96) (17) (i-vii)

The South African Government has an extensive legal framework within which mining, environmental and social aspects of the industry are managed. Harmony and its Moab Khotsong operation is primarily regulated and managed by certain principal Acts (as listed in Section 17.3) as well as corporate policies, management systems and certain industry-wide guidelines, including:

•Energy Efficiency and Climate Change Policy;

•Environmental Policy;

•Harmony Water Management Strategy;

•Biodiversity and Rehabilitation Position Statement;

•Socio-Economic Transformation Policy; and

•Corporate Social Responsibility Policy.

The latest sustainability policies and public environmental social and governance (“ESG”) performance and disclosure reports are available on the corporate website. Harmony has identified the environmental risks for the business and has strategies in place to manage the risks.

17.1Results of Environmental Studies

Moab Khotsong has prepared multiple Environmental Impact Assessments (“EIA”) for regulatory approval, which under the current legal framework, require stakeholder engagement. The most recent EIA was undertaken October 2017. The last assessment was the EIA/ EMPR done when Harmony took over the Moab Khotsong Operations for DMRE approval. “No stakeholder engagement was undertaken for this EMP as all the infrastructure and activities to be acquired has already been authorised in the 2009 AGA EMP, which included a stakeholder engagement process. As no new activities form part of this EMP, no stakeholder engagement was undertaken for this EMP. Details of this is under page 22 of the attached. A comprehensive stakeholder engagement process for the 2009 AGA EMP commenced in August 2007 in order for Interested and Affected Parties (I&APs), authorities and the wider public to comment on the project. Stakeholder engagement was an ongoing process undertaken throughout the 2009 AGA EMP update and revision process. All supporting stakeholder engagement documentation relating to this process was included in the 2009 AGA EMP”.

“No new activities have been included and hence no additional specialist studies or stakeholder engagement were undertaken for this EMP. Specialist study and stakeholder information were obtained from the 2009 and 2016 AGA EMP”.

There are no sensitive areas that may affect the project or any other environmental factors, including interested and affected parties and/or studies that could have a material effect on the likelihood of eventual economic extraction. No material socio-economic and cultural impacts were identified.

17.2Waste and Tailings Disposal, Monitoring & Water Management

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Measures have been put in place for the handling and disposal of all hazardous chemicals (e.g., cyanide), hydrocarbons (i.e., hydraulic oils and diesel) and other chemicals to ensure the protection of human health and its potential impact on the environment. Harmony recognises that responsible and effective waste management can positively reduce its environmental impacts and mitigate associated environmental liabilities. Waste management is thus a priority focus area. Internally, guidelines on mineral, non-mineral and hazardous waste materials are included in the environmental management systems (“EMS”) implemented at Moab Khotsong.

Tailings comprises of milled rock and process water emitted from the gold elution process in the form of slurry. As tailings contain impurities and pollutants, they are placed in TSF engineered to contain them, in line with Harmony's tailings management programme and the Global Industry Standard on Tailings Management (“GISTM”).

•freeboard control;

•water management;

•maintaining stability and the safety factor as advised by the engineer of record;

•erosion controls; and

•monitoring and control measures implemented to ensure continued compliance (including regular inspections, audits, and meetings on varying intervals with subsequent actions, minutes and reports).

As part of its mining, environmental and water approvals and licences, Harmony is required to implement monitoring programmes and plans to establish the operations impact on the environment. The compliance limits for the monitoring variable are included in the applicable EMPR(s), WUL(s) and environmental authorisations. The environmental monitoring implemented at Moab Khotsong includes:

•ground and surface water monitoring

•biodiversity monitoring;

•waste classification and quantification;

•integrated waste and water management plan updates;

•water balance reviews;

•licence and authorisation compliance reviews; and

•air quality (i.e., noise and dust) and greenhouse gas emissions ("GHG") monitoring.

17.3Permitting and Licences

In respect of environment, the following national Acts and the regulations promulgated thereunder provide the regulatory framework for mine permitting and licencing in South Africa:

•Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”);

•National Environmental Management Act, 1998 (“NEMA”);

•National Environmental Management: Waste Act, 2008 (“NEM:WA”);

•National Environmental Management: Air Quality Act, 2004 (“NEM:AQA”); and

•National Water Act, 1998 (“NWA”).

Moab Khotsong has an approved EMPR that formed part of the mining right application and is used as the basis for managing all environmental aspect and impacts at the operation. The operation has all other environmental permits are in place required that cover the environmental, archaeological, waste and hydrological components of the operations. A summary of the status of environmental permits and licences

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

issued at the effective date related to Moab Khotsong’s operation is presented in Table 17-1. All permits are audited regularly for compliance and no material risks to the operations have been identified.

In addition, has implemented an EMS that is ISO 14001 certified. As part of its certification and compliance obligations, Moab Khotsong is committed to continually improve its processes and services to prevent pollution, minimise waste, increase carbon efficiency, use natural resources efficiently and protect the environment.

There are no outstanding applications submitted or being considered by the relevant authorities to ensure compliance and alignment with operations LOM requirements. There are no outstanding governmental/statutory requirements and permits as may be required.

Table 17-1: Status of Environmental Permits and Licences

Permit Holder

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Harmony

EMPR

NW30/5/1/2/2/15&16MR

DMRE

08-Aug-2019

Valid

Harmony

Atmospheric Emission Licence

AEL/FS/MKO- HGM/14/10/2019

DFFE

13-Mar-2019

Valid

Harmony

Waste Management Licence

NWP/DK2/WM/ 2018/04/01/02

DARD

21-Jan-2021

Valid

Harmony

Water Use Licence

08/C24B/AGJ/9799

DWS

12-Nov-2020

Valid

17.4Local Stakeholder Plans and Agreements

•contribute to areas that will have the most meaningful socioeconomic impact on communities, namely infrastructure, education and skills development, job creation and entrepreneurial development;

•enhance broad-based local and community economic empowerment and enterprise development initiatives;

•facilitate socio-economic development in local communities by means of social and labour plan(s) (“SLP”) and corporate social responsibility programmes;

•support arts, culture, and sports and recreation; and

•build relationships based on trust within host communities.

The ultimate aim of the SLP is to ensure the uplift of the social and economic circumstances of local communities surrounding the mine and are a prerequisite to securing and maintaining a mining right, with progress required to be reported each year. The current SLP is valid until 31 December 2022, after which it will need to be renewed for a further five-year period.

Harmony has budgeted to spend approximately ZAR21.52m during the next financial year. Harmony had committed to allocate approximately ZAR47.2m over the five-year period on local development programmes identified by stakeholders within the host community.

17.5Mine Closure Plans

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

by the DMRE and requires the preparation of a closure plan, the development of a cost estimate, and financial assurance. The Company makes an annual submission to the DMRE setting out the cost of closure in accordance with the MPRDA and the regulations issued thereunder.

Harmony appointed Digby Wells Environmental (“Digby Wells”), independent environmental consultants, to review and update the closure cost. The mine closure assessment was done in terms of regulation 53 and 54 of the MPRDA and in accordance with the requirements of NEMA. The closure cost as at 30 June 2022, was calculated to be ZAR 553m including a 10% contingency allowance.

The mine closure cost estimate includes all costs associated with demolition and rehabilitation of the footprint after mining activities cease.

This liability covers all buildings, offices, water tanks, plants, tailings storage facilities, waste rock dumps and properties, among others. The liability is assessed and updated annually.

Harmony is required to make funding available in an amount equal to the cost of closure as determined under the MPRDA in the form of a trust fund and/or bank guarantees. The funding provided in the form of a trust fund and guarantees to satisfy the total regulatory liability is set out in Table 17‑3.

Table 17‑3: Total Rehabilitation Assurance Funds


Area	Trust Fund (ZARm)	Bank Guarantee (ZARm)	Total (ZAR)
Moab Khotsong	2,596,699,548	0	2,596,699,548
Zaaiplaats	Included in above	Included in above	Included in Above
Total	2,596,699,548		2,596,699,548
Note: Included in Bambanani, Joel, Matjhabeng and Tshepong Rehabilitation Trust Fund

17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups

Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure at Moab Khotsong. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.

17.7Local Procurement and Hiring

Harmony is committed to investing in the future of local communities beyond the LOM and not to only empower them, but also to mitigate the impacts its activities to ensure a positive legacy. The 2014 Mining Charter serves to guide the South African mining industry in socio-economic transformation. Local procurement (goods and services) and human resource management are key measures set under the Mining Charter and are reported on annually. No material non-compliance issues are noted by the QP at the effective date of this TSR.

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Periodic inspections are conducted by the DMRE to verify compliance with applicable environmental laws, regulations, permits and standards. In addition, Moab Khotsong has implemented an EMS in line with the ISO 14001 standard. The EMS is audited on an annual basis by a third party and includes the needs and expectations of interested parties.

As part of Harmony, Moab Khotsong conducts its operation based on policies and systems that are aligned to its corporate sustainable development framework. Although Harmony is not a signatory to the International Council on Mining and Metals or the UN Global Compact, these form the guiding principles of the framework. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Global Reporting Initiative (“GRI”). Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (“CDP”) for both climate change and water. The CDP runs the global environmental disclosure system that supports companies to measure and manage their risks and opportunities on climate change, water security and deforestation.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Economic parameters for the Harmony Group, including capital and operating costs, are determined, and signed off by the CODM, before distribution to the business units. The capital and operating costs are reported in ZAR terms and on a real basis.

18.1Capital Costs

The estimated capital costs for the on-going LOM at Moab Khotsong (including the Zaaiplaats) are broken down into costs associated with major equipment outside the main operating sections (“AE”), shaft projects, major projects and costs related to Mining Charter Compliance (“MCC”) as presented in Table 18-1. The estimated capital costs presented in Table 18-1 are carried forward and modelled in the Moab Khotsong cash flow.

The estimated capital costs for Zaaiplaats are broken down into project capital and MCC and are provided in Table 18-1: Summary of LOM Capital Cost Estimate for Moab Khotsong. The capital costs have been derived from the Zaaiplaats Feasibility Study, that was presented and approved by both the Technical and Investment Committees in October 2021. The Harmony project capital cost estimate was compiled at an industry standard for Feasibility Studies at a ±10%, level accuracy. A contingency of 9% has been applied to these capital costs.

18.2Operating Costs

A summary of the direct and indirect operating costs for the on-going LOM at Moab Khotsong (including Zaaiplaats) are presented in Table 18-2. The operating costs are based on historic performance while applying any changes expected within the new financial year (such as electricity requirements, increased/decreased labour).

The estimated operating costs for Zaaiplaats have been derived from the Feasibility Study, undertaken by Harmony in March 2021, and the level accuracy associated with the cost estimates is ±10%, as is industry standard for Feasibility Studies.

18.3Comment on Capital and Operating Costs

The capital and operating cost estimates for the on-going LOM at Moab Khotsong are based on actual historical data, as well as budget forecasts. Therefore, the forecasted costs are reliable, and at minimum meet the confidence levels of a Pre-Feasibility Study. This approach of estimating capital and operating costs is consistent with industry practice. A record of the forecast and budget costs is maintained by the operation, allowing for an assessment of the alignment of the forecast and actual costs.

The capital and operating costs for Zaaiplaats are derived from a Feasibility Study and are considered to have levels of accuracy in line with Feasibility Study requirements. Further, these estimates are informed by the extensive operating history of Moab Khotsong which is, in most cases, directly applicable to Zaaiplaats.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 18-1: Summary of LOM Capital Cost Estimate for Moab Khotsong


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2044)
OCD			5,281,402
AE			1,499,375
Shaft Projects			629,060
Major Projects			6,123,556
MCC			891,420
Total			14,424,813
Notes: Rounding of figures may result in minor computational discrepancies.

Table 18-2: Summary of Operating Cost Estimates for Moab Khotsong


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2044)
Wages - Payroll 1			12,779,501
Wages - Payroll 2			17,327,615
Stores and Materials			9,062,269
Electric Power and Water			20,837,430
Outside Contractors			3,335,620
Other			3,894,316
Direct Costs			67,236,750
Pumping Allocation			1,997,796
Refining Charge			215,127
Uranium Allocation			-431,531
Hostel Cost			-106,834
Backfill Cost			469,533
Plant Treatment Cost			6,467,227
Working Cost Transfer to Capital			-1,055,745
Care and Maintenance			879,243
Re-allocated costs			8,434,817
Mine Overheads Re-allocated			4,475,335
Total			80,146,902

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

19Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

19.1Key Economic Assumptions and Parameters

The CODM forms, reviews, signs-off and distributes economic assumptions to its various business units. On an annual basis, during the period October to November, long-term commodity prices and exchange rates forecasts’, are received from various financial institutions. In addition, a specialist in Economics from a reputable economics company based in South Africa, provides expert views on the global markets, forward looking commodity prices, exchange rates, consumer price index, production price index, electricity cost and consumable increases. All factors are analysed, cognisance is taken of the requirements of the NYSE and JSE markets, and a proposal is presented to the CODM for recommendation and approval. These assumptions are then applied at Moab Khotsong, along with specific operational considerations.

19.1.1Metallurgical Recoveries

The metallurgical recoveries used in the cash flow are provided in Table 12-1.

19.1.2Gold Price

The proposed gold price (USD1,546/oz) is the price that is used by Harmony for the Moab Khotsong annual planning cycle and forms the basis for the gold price assumptions used in the Moab Khotsong cash flow. The reader is referred to Figure 16-2 for the consensus forecast gold price.

The conversions used in the calculation of the various gold prices is presented in Table 19-1.

Table 19-1: Conversions Used in Gold Price Calculations


Economic Factors	Gold Price (USD/oz)	Conversion Factor (oz/kg)	Exchange Rate (ZAR:USD)	Gold Price (ZAR/kg)
2022 Mineral Resource	1,723	32.15	15.35	850,191
2022 Mineral Reserve	1,546	32.15	15.35	763,000
2023 forecasted gold price	1,546	32.15	15.35	763,000
Notes: 1. Forecasted gold price as used in the Moab Khotsong cash flow.

19.1.3Exchange Rate

In addition, the CODM has reviewed the ZAR:USD exchange rate performance over the past three years, for the period July 2019 - June 2022 (Table 19-2). The proposed spot exchange rate of 15.35 ZAR:USD is the exchange rate that is used by Harmony for the Moab Khotsong annual planning cycle and forms the basis for the ZAR:USD exchange rate assumptions used in the Moab Khotsong cash flow.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)


Period			Average Exchange Rate (ZAR:USD)
July 2019 to June 2020			15.68
July 2020 to June 2021			15.41
July 2021 to June 2022			14.75
3-Year Ave. (not weighted)			15.28


Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast

19.1.4Royalties

Royalty is an expense paid to the government of South Africa and is accounted for in the Moab Khotsong cash flow models. In terms of the mining ring-fencing application, each ring-fenced mine is treated separately, and deductions can normally only be utilised against mining income generated from the relevant ring-fenced mine.

19.1.5Capital Expenditure

At Harmony, capital is allocated to the mines with a longer life. Capital costs are presented for Moab Khotsong and Zaaiplaats in Table 18-1, collectively.

19.1.6Operating Expenditure

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

of the cash operating costs (“COC”), capital costs, and royalties. Operating costs for Moab Khotsong and Zaaiplaats are presented in Table 18-2. collectively.

19.1.7Working Capital

Working capital is calculated at a Harmony Group level and not at an operational level.

19.1.8Taxes

19.1.9Closure Cost and Salvage Value

The closure cost estimates are those provided in Section 17.5. No account has been taken of any potential salvage values.

19.1.10Summary

The key assumptions used in the cash flow are summarised for Moab Khotsong and Zaaiplaats in Table 19-3.

Table 19-3: Key Economic Assumptions and Parameters


		Moab Khotsong	Zaaiplaats
Parameter	Unit	Value	Value
Production Rate	ktpm	80,000	70,000
Gold Recovery	%	96.70	96.50
Royalty	%	Formula	Formula
Tax Rate	%	Formula	Formula
Gold Price	ZAR/kg	763,000	763,000
Exchange Rate	USD:ZAR	Variable	Variable
Discount Rate	%	9.00	9.00

19.2Economic Analysis

Harmony's business units and its associated operating sites consider the economic assumptions discussed in Section 19.1 during their respective planning and analysis processes. The past year’s average gold price is used for testing purposes. A price of ZAR763,000/kg is used for forecasting the revenue of the Moab Khotsong cash flow (Table 19-4), which is combined for Moab Khotsong and Zaaiplaats.

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Table 19-4: Moab Khotsong Cash Flow


Item	Units	Total LOM	2023	2024	2025	2026	2027	2028	2029	2030


Milled Tonnes	t ('000)	17,602	953	994	975	803	657	559	386	570
Yield	g/t		7.46	8.10	8.96	7.92	6.62	6.21	7.93	9.45
Gold Recovered	kg	152,266	7,116	8,053	8,736	6,355	4,351	3,473	3,062	5,385
Gold Price	R/kg		763,000	763,000	763,000	763,000	763,000	763,000	763,000	763,000
Revenue	ZAR'000	116,178,850	5,429,580	6,144,428	6,665,337	4,848,925	3,319,732	2,650,033	2,336,247	4,108,952
Total Working Cost (COC+OCD+AE)	ZAR'000	86,927,679	4,809,949	5,023,304	4,998,983	3,981,843	3,151,044	2,625,364	2,699,395	3,560,458
Total Capital (excluding OCD)	ZAR'000	7,644,036	775,479	804,701	685,762	662,936	966,523	898,215	669,971	598,960
Royalty	ZAR'000	2,561,666	27,148	55,887	111,271	40,533	16,599	13,250	11,681	20,545
Total costs (including capital and royalty)	ZAR'000	97,133,381	5,612,577	5,883,892	5,796,016	4,685,312	4,134,166	3,536,829	3,381,047	4,179,962
Profit (after OCD and capital)	ZAR'000	19,045,469	-182,997	260,536	869,321	163,613	-814,434	-886,796	-1,044,800	-71,010
NPV - (low discount rate - 9%)	@9%	4,142,629
NPV - (medium discount rate - 12%)	@12%	2,568,827
NPV - (high discount rate - 15%)	@15%	1,615,828


Item	Units	Total LOM	2031	2032	2033	2034	2035	2036	2037	2038


Milled Tonnes	t ('000)	17,602	533	751	904	947	853	849	851	832
Yield	g/t		8.91	8.50	8.01	8.70	9.38	9.12	9.37	9.80
Gold Recovered	kg	152,266	4,751	6,378	7,242	8,234	7,994	7,750	7,966	8,162
Gold Price	R/kg		763,000	763,000	763,000	763,000	763,000	763,000	763,000	763,000
Revenue	ZAR'000	116,178,850	3,624,712	4,866,533	5,525,430	6,282,810	6,099,547	5,913,025	6,078,341	6,227,230
Total Working Cost (COC+OCD+AE)	ZAR'000	86,927,679	3,659,752	4,224,374	4,507,053	4,487,790	4,200,840	4,167,808	4,159,286	4,012,223
Total Capital (excluding OCD)	ZAR'000	7,644,036	329,575	259,112	171,329	143,872	72,719	72,695	72,578	72,438
Royalty	ZAR'000	2,561,666	18,124	54,588	94,848	162,736	175,171	162,047	176,843	201,262
Total costs (including capital and royalty)	ZAR'000	97,133,381	4,007,451	4,538,074	4,773,229	4,794,398	4,448,730	4,402,550	4,408,707	4,285,922
Profit (after OCD and capital)	ZAR'000	19,045,469	-382,739	328,459	752,201	1,488,411	1,650,817	1,510,475	1,669,634	1,941,307
NPV - (low discount rate - 9%)	@9%	4,142,629
NPV - (medium discount rate - 12%)	@12%	2,568,827
NPV - (high discount rate - 15%)	@15%	1,615,828

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa


Item	Units	Total LOM	2039	2040	2041	2042	2043	2044


Milled Tonnes	t ('000)	17,602	908	960	946	950	839	584
Yield	g/t		9.55	8.55	8.40	9.21	9.33	10.05
Gold Recovered	kg	152,266	8,667	8,205	7,947	8,748	7,822	5,867
Gold Price	R/kg		763,000	763,000	763,000	763,000	763,000	763,000
Revenue	ZAR'000	116,178,850	6,613,279	6,260,749	6,063,828	6,674,814	5,968,460	4,476,861
Total Working Cost (COC+OCD+AE)	ZAR'000	86,927,679	4,049,150	4,052,250	3,998,328	3,973,937	3,648,856	2,935,691
Total Capital (excluding OCD)	ZAR'000	7,644,036	73,548	74,434	74,192	74,216	56,166	34,616
Royalty	ZAR'000	2,561,666	231,021	201,158	189,624	243,507	210,917	142,909
Total costs (including capital and royalty)	ZAR'000	97,133,381	4,353,718	4,327,842	4,262,144	4,291,660	3,915,939	3,113,216
Profit (after OCD and capital)	ZAR'000	19,045,469	2,259,561	1,932,908	1,801,684	2,383,154	2,052,521	1,363,645
NPV - (low discount rate - 9%)	@9%	4,142,629
NPV - (medium discount rate - 12%)	@12%	2,568,827
NPV - (high discount rate - 15%)	@15%	1,615,828

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

The discounted cash flow model is used to calculate the NPV of the investments. The NPV is calculated on a cash flow that accounts for factors such as:

•mining and ore processing working costs;

•royalty payments;

•capital costs, including costs allocated to ongoing development;

•any significant project work considered as major projects; and

•costs deemed as abnormal expenditure.

19.3Sensitivity Analysis

The economic assumptions, cash flow breakdown and economic analysis contribute to the basis for the sensitivity analysis. The sensitivity analysis considers various scenarios, for which the project NPV is calculated. The sensitivities are calculated and analysed, as shown in Table 19-5, Table 19-6 and Table 19-7).

The sensitivity analysis is completed for variations in commodity price (ZAR/kg), total operating costs, which include capital costs and royalties paid (ZAR); and a combined analysis considering variations in commodity price, total operating costs, and changes in production. These sensitivities are for the combined Moab Khotsong Operations (including Zaaiplaats). The base case in the analysis below is the economic results emanating from the LOM plan (Table 19-4).

Table 19-5: Gold Price Sensitivity Analysis @9% Discount rate


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR Bn)
10%	152,266	839,300	127,796,734	97,133,381	30,663,354	8.921
5%	152,266	801,150	121,987,792	97,133,381	24,854,411	6.532
LOM plan	152,266	763,000	116,178,850	97,133,381	19,045,469	4.143
-5%	152,266	724,850	110,369,907	97,133,381	13,236,526	1.753
-10%	152,266	686,700	104,560,965	97,133,381	7,427,584	-0.636

Table 19-6: Total Operating Cost Sensitivity Analysis @ 9% Discount rate


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR Bn)
10%	152,266	763,000	116,178,850	106,846,719	9,332,131	-0.221
5%	152,266	763,000	116,178,850	101,990,050	14,188,800	1.961
LOM plan	152,266	763,000	116,178,850	97,133,381	19,045,469	4.143
-5%	152,266	763,000	116,178,850	92,276,712	23,902,138	6.325
-10%	152,266	763,000	116,178,850	87,420,043	28,758,807	8.507
Note: 1. Total operating cost, including capital and royalty (ZAR).

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

Table 19-7: Gold price, Operating Costs, and Production Variation Sensitivity Analysis @ 9% Discount rate


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR Bn)
10%	167,492	839,300	140,576,408	106,846,719	33,729,689	9.813
5%	159,879	801,150	128,087,182	101,990,050	26,097,132	6.858
LOM plan	152,266	763,000	116,178,850	97,133,381	19,045,469	4.143
-5%	144,653	724,850	104,851,412	92,276,712	12,574,700	1.666
-10%	137,039	686,700	94,104,868	87,420,043	6,684,825	-0.572

The insights that can be provided by this sensitivity analysis is that Moab Khotsong is most sensitive to changes in the gold price (ZAR/kg), closely followed by changes in total operating costs (ZAR).

The impact of one or a combination of risks and opportunities occurring at the same time cannot be specifically quantified so an analysis considering multi-parameters is considered. In this way the general risks, with the aid of the sensitivity table (Table 19-7) are adequately covered. The sensitivity analysis considering a 10% increase in production, gold price, operating variables show that the lowering of working costs, improvement in productivity and the benefits of a higher gold price can have positive impacts on the Moab Khotsong Mine.

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

20Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

There are a number of active and closed mining operations in the Klerksdorp Goldfield. Moab Khotsong and Great Noligwa were originally part of the AngloGold’s Vaal River Operations, which included 12 shafts. Other operations in the Klerksdorp Goldfields include the Hartebeestfontein and Stillfontein Gold Mines, near the town of Stillfontein.

Moab Khotsong’s only immediate neighbour is Kopanang Mine, which was previously owned by AngloGold, and which is now Heaven-Sent SA Sunshine Investment Company Limited (“Heaven-Sent”) through its share of Village Main Reef Limited (“Village Main”). Village Main also operates Tau Lekoa Mine, which is approximately 15km to the west of Moab Khotsong.

Effective Date: 30 June 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

21Other Relevant Data and Information

Section 229.601(b)(96) (21)

Public disclosure reports on Moab Khotsong’s operational, financial and environmental performance are available on the Company’s corporate website. The following reports are relevant to this TRS:

•Integrated annual report 2022;

•ESG report 2022;

•Financial report 2022;

•Report to shareholders 2022;

•Operational report 2022;

•Climate-related Financial Disclosures (“TCFD”) report 2022

Effective Date: 30 June 2022


			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

22Interpretation and Conclusions

Section 229.601(b)(96) (22)

Moab Khotsong is a well-established mining operation which includes the underground and surface assets associated with the Great Noligwa Mine and the Moab Khotsong Mine, both of which were previously owned by AngloGold. Harmony has no known risks to conduct mining activities over the permitted mining rights. In addition, no known risks are posed over surface access and activities, regarding mining related activities.

Moab Khotsong is sub-divided by major faults into three distinct geographical mining areas. These are referred to as Top Mine and Middle Mine, accessed through Moab Khotsong shaft, and Zaaiplaats accessed through a decline system off the base of the Moab Khotsong shaft. Zaaiplaats started development from 101 level after Board approval in 2021.

The regional geological setting, mineralisation and deposit at Moab Khotsong is well understood and is informed by geophysical surveys, surface and underground diamond core drilling and underground channel sampling and mapping. The gold mineralisation is primarily found in the Vaal Reef, with the C Reef being a secondary source. The geological structure in the area is complex. The exploration to date, and exploration plans going forward, are focused on obtaining a good understanding of the structure and its impact on the locations of the reefs.

The sampling approach and management, density assumptions, laboratory procedures, and assaying and analysis are in keeping with industry standards and practices and are appropriate for the Witwatersrand-type mineralisation. The holistic understanding of the regional geology, lithological and structural controls of the mineralisation at Moab Khotsong is sufficient to support the estimation of Mineral Resources.

The combined Measured and Indicated Mineral Resource, exclusive of Mineral Reserves, as at 30 June 2022 is 6.401Mt at 0.503oz/t gold, containing 3.217Moz of gold, and the Inferred Mineral Resource contains 2.816Mt at 0.557oz/t gold, containing 1.568Moz of gold.

Mineral Reserves are derived from the Mineral Resources. In the case of Top Mine and Middle Mine, a detailed business plan and operational mine planning processes has supported this conversion. The conversion of Mineral Resources to Mineral Reserves for Zaaiplaats is founded on an industry-standard Feasibility Study. The planning and Feasibility Studies takes into consideration achieved technical parameters. Conversion of Mineral Resources to Mineral Reserves also takes into account the Modifying Factors, dilution, ore losses, minimum mining widths, planned mine call and plant recovery factors. The Mineral Reserve is 16.176Mt of milled ore containing 4.031Moz as at 30 June 2022.

Moab Khotsong is currently operating profitably. The LOM plan and associated cash flow, which incorporate Top Mine, Middle Mine and Zaaiplaats, also shows a positive result. Uranium or any other by-products that are recovered as part of the refining process, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimates. There are no obvious material risks that could have significant effect on the Mineral Reserves.

The Mineral Reserves are extracted via conventional breast mining, following a scattered grid. The method, which is implemented with extensive use backfill support, has been adopted due to the relatively complex geological structure. This mining method has proven to be a safe and economic mining method. It does, however, require a high degree of mining flexibility and hence development is required 12-24 months ahead of mining.

Ore mined at Moab Khotsong is processed at the Great Noligwa plant which has been producing gold since 1972. As such, the processing method is considered well established for the mineralisation. The plant makes use of historical trends and data as a basis for their recoveries of Vaal Reef and C Reef.

The mine’s infrastructure is capable of fully supporting the mining and surface related mining activities. Moab Khotsong is accessed via national and provincial road networks, has key power transmission and distribution

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

networks provided by the National electricity regulator, water supply networks and communication infrastructure. Overall, Moab Khotsong is well-established with sufficient logistics and infrastructure support for the existing and planned mining operations.

Harmony and Moab Khotsong are exposed to market risks such as exchange rate and gold price fluctuations which are partially offset by the Harmony Group hedging policy. The hedging programme takes into account factors effecting the global gold market and these, along with macro-economic conditions, are used to determine planning and forecasting inputs at group level for all of Harmony’s operating business units. Other non-gold related risks are addressed to some extent by Moab Khotsong entering into vendor agreements for the provisions of supplies and services which are done on a competitive basis with customary price adjustment, renewal and termination clauses.

To successfully operate a mining operation in South Africa the state requires compliance with applicable environmental laws, regulations, permits and standards. Moab Khotsong adheres to said compliance and regulatory standards and have, in addition, implemented an Environmental Management System in line with the ISO 14001.

As part of Harmony, Moab Khotsong conducts its operations based on policies and systems that are aligned its corporate sustainable development framework. This is guided by the principles of the framework from the International Council on Mining and Metals or the United Nations Global Compact. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (“GRI”). Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (“CDP”) for both climate change and water.

Harmony has a good understanding of the environmental and social aspects through baseline and specialist studies previously conducted. Risk management and mitigation measures were adequately addressed in the environmental management plans. Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure at Moab Khotsong. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.

The economics of Moab Khotsong are based on a discounted cash flow model, with a gold price of ZAR763,000/kg. The NPV is ZAR4.143Bn, at a discount rate of 9%. The NPV is calculated on cash flow that takes input parameters including capital and operating costs and royalties. The capital and operating cost estimates for Moab Khotsong are based on historical data, as well as budget forecasts. This estimation technique allows for the forecast and actual costs to be aligned. The costs for Zaaiplaats are based upon a Feasibility Study and are considered to have levels of accuracy in line with Feasibility Study requirements.

Royalties and taxes are paid to the South African government and accounted for in the Moab Khotsong cash flow and NPV analysis. There are also specific tax relief benefits that apply to gold mining companies, where 5% of total revenue is exempt from taxation, amongst other benefits.

The economics of Moab Khotsong are tested for its sensitivity to commodity price (ZAR/kg), operating costs (ZAR) gold production (kg). The insights provided by the sensitivity analysis is that Moab Khotsong is most sensitive to changes in the gold price (ZAR/kg), closely followed by changes in total operating costs (ZAR).

The TRS provides sufficient information as required and there is no other relevant data and information. The TRS was prepared by a team of experienced professionals. The TRS provides a summary of the material scientific and technical information concerning the mineral exploration, Mineral Resources, Mineral Reserves, and associated production activities of the mineral asset, including references to the valuation for Moab Khotsong. Each QP was responsible for specific sections of this TRS which they have personally supervised and reviewed. This TRS contains the expression of the QP opinions, based on the information available at the time of preparation.

Effective Date: 30 June 2022

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

23Recommendations

Section 229.601(b)(96) (23)

23.1Zaaiplaats Exploration Drilling

Exploration drilling for Resource growth to fill the production gap between the current mine and the production build up at the future Zaaiplaats project and also to refine the geological model for the Zaaiplaats block. Drill targets have been identified and the exploration plan is focusing on improving the geological confidence within the North-eastern corner of Lower Mine. Above 101 Level drilling is targeting potential Blue Sky Vaal Reef blocks caught up within the Jersey fault zone. Below 101 Level drilling will upgrade structural confidence of the larger Lower Mine block. Some of the holes budgeted for will also be utilized for Geotechnical analysis.

A total of 5.5km of drilling amounting to ZAR12.6M have been budgeted from July 2022 to June 2022.

23.2Mineral Resource Growth Opportunities

Resource growth opportunities have been identified below 76 level. Brown Fields Exploration is required to confirm Vaal Reef blocks that are situated below 76 Level and that can potentially be accessed.

A total of 1.8km of drilling amounting to ZAR3M have been budgeted from July 2022 to June 2022.

23.3Zaaiplaats Design and Scheduling

Zaaiplaats design and scheduling will be adjusted as new orebody information becomes available as exploration continues.

23.4Investigation of Inventory Areas

Opportunities in blocks that have been moved into inventory continues to be investigated, especially adjacent areas to current mining with synergies

Effective Date: 30 June 2022

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

24References

Section 229.601(b)(96) (24)

Dankert, B.T., and Hein, K.A.A., 2010. Evaluating the structural character and tectonic history of the Witwatersrand Basin. Precambrian Research 177, 1–22.

Freese, L.B., 2021. Ore Reserve Statement for period ended 30 June 2021, Technical Report for Moab Khotsong Operations. Harmony Gold Mining Operations, South Africa.

https://www.gold.org/goldhub/data/gold-prices. Accessed 22 July 2022.

Harmony. (2021, October 29). Harmony Mineral Resources and Mineral Reserves Report 2021. https://www.har.co.za/21/download/HAR-RR22.pdf

Robb, L.J., and Meyer, F., 1995. The Witwatersrand Basin, South Africa: Geological framework and mineralisation processes. Ore Geology Reviews, 10(2), 67-94.

Robb, L.J., Robb, V.M., 1998. Gold in the Witwatersrand Basin. In: Wilson, M.G.C., Anhaeusser, C.R. (Eds.), The Mineral Resources of South Africa. Handbook. Council for Geoscience, 294–349.

South African Revenue Services. (2021, July 29). South African Revenue Services. Retrieved from Tax Relief Measures: https://www.sars.gov.za/media/tax-relief-measures/

World Gold Council. (2022, July 18). World Gold Council, Gold Hub, Gold mine production: Gold Production by Country | Gold Production | Goldhub

Harris, D.C. (1990). The mineralogy of Gold and its relevance to Gold recoveries. Mineral Deposita, volume 25, Supplementary Eds. S3-S7

Petruk, W. (2000). Applied mineralogy in the mining industry. Amsterdam; New York, Elsevier.

Zhou, J.Y. and Gu, Y. (2008). Gold process mineralogy and its significance in Gold metallurgy. Ninth International Congress for Applied Mineralogy, Brisbane, QLD

Zhou, J.Y. and Cabri, L.J. (2004). Gold process mineralogy: Objectives, techniques, and applications. Journal o Minerals, Metals and Materials Society, volume 56, number 7

Zhou, J., Jago, B. and Martin, C. (2004). Establishing the Process mineralogy

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			Technical Report Summary for Moab Khotsong Operations, Free State Province, South Africa

25Reliance on Information Provided by the Registrant

Section 229.601(b)(96) (25)

Further to Section 24, in the preparation of this TRS, the principal QP and author relied entirely on information provided by various parties relating specifically to mining rights, surface rights, contractual agreements, historical operating expenditures, community relations and other matters. The work conducted by technical experts was completed under the supervision and direction of the respective QPs. The technical experts who assisted the principal author and QPs are listed in Table 25-1.

Table 25-1: Other Technical Experts


Name	Specialist	Area of Responsibility	Association / Company
R Greyling	Senior Occupational Environmental Officer	Ventilation and Refrigeration	Moab Khotsong
C Jooste	Rock Engineer	Geotechnical Designs	Moab Khotsong
N J v Rensburg	Rock Engineer	Geotechnical Designs	Moab Khotsong
C Hempel	Survey and Planning Manager	Reconciliation and Reporting	Moab Khotsong
M v Heerden	Senior Engineer	Technical Studies	Moab Khotsong
W Gouws	General Manager	Mining Method and Logistics	Moab Khotsong
D Roux	Senior Surveyor	Ore Reserve	Moab Khotsong
J Wall	Senior Mine Planner	Mine design and scheduling	Moab Khotsong
J Kahts	Senior Mine Planner	Mine design and scheduling	Moab Khotsong
W de Wit	Legal Counsel	Mineral rights and legal consultation	Harmony Central
C du Plessis	Plant Manager	Recovery and process costs	Noligwa Plant
W Manana	Plant Manager	Recovery and process costs	Noligwa Plant
S Plotz	Senior Financial Manager	Cash flow analysis	Moab Khotsong
H Mashaba	Environmental Officer	Mine Closure and Rehabilitation	Harmony Central
E Rossouw	Senior Accountant	Recovery and process costs	Noligwa Plant
J Jackson	Tax Head of Department	Tax	Harmony Central
J Powell	Geostatician HOD	Mineral Resources	Harmony Central
E Malaola	Manager ORM Audit and Survey	Mineral Resources and Reserves Audit	Harmony Central
T v Dyk	Senior Ore Reserve Manager	Mineral Resources and Reserves Audit	Harmony Central
J Boshoff	Executive: Ore Reserves	Mineral Resources and Reserves Audit	Harmony Central

Effective Date: 30 June 2022

104

HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Mponeng Mine

Carletonville, South Africa

Effective Date: 30 June 2022

Final Report Date: 20 July 2022


			Technical Report Summary for Mponeng Mine, Gauteng, South Africa


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.


Effective Date: 30 June 2022 i


			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

Signature Page

/s/ Willie Olivier

___________________________________

Mr Willie Olivier

GDE (Mining Engineering)

Certificate of Competency Mine Survey

SAGC (No. MS 0136)

Ore Reserve Manager, Mponeng Mine

Harmony Gold Mining Company Limited

/s/ Gareth Flitton

____________________________________

Mr Gareth Flitton

B.SC (Hons) Geology

GDE (Mineral Economics)

SACNASP (No. 400019)

Geoscience Manager, Mponeng Mine

Harmony Gold Mining Company Limited

/s/ Wynand Beukes

___________________________________

Mr Wynand Beukes

NHD Mineral Resource Management

Certificate of Competency Mine Survey

SAGC (No. MS 0118)

Survey and Planning Manager, Mponeng Mine

Harmony Gold Mining Company Limited

Effective Date: 30 June 2022

Final Report Date: 20 July 2022


Effective Date: 30 June 2022 ii


			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

List of Contents


1	Executive Summary			1
2	Introduction			7
3	Property Description and Location			8
	3.1	Mineral Tenure		8
	3.2	Property Permitting Requirements		8
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			10
	4.1	Accessibility		10
	4.2	Physiology and Climate		10
	4.3	Local Resources and Infrastructure		10
5	History			11
	5.1	Historical Ownership and Development		11
	5.2	Historical Exploration		11
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		12
	5.4	Past Production		13
6	Geological Setting, Mineralisation and Deposit			15
	6.1	Regional Geology		15
	6.2	Local Geology		15
	6.3	Property Geology		19
		6.3.1	VCR Lithology	19
		6.3.2	CLR Lithology	19
		6.3.3	Structure	19
	6.4	Mineralisation		21
		6.4.1	VCR Mineralisation	21
		6.4.2	CLR Mineralisation	21
		6.4.3	Alteration	21
	6.5	Deposit Type		21
	6.6	Commentary on Geological Setting, Mineralisation and Deposit		22
7	Exploration			23
	7.1	Geophysical Seismic Survey		23
	7.2	Underground Mapping		23
	7.3	Channel Sampling Methods and Sample Quality		24
	7.4	Drilling Campaigns, Procedures, Sampling, Recoveries and Results		24
		7.4.1	Surface Drilling	24
		7.4.2	Underground Drilling	24
		7.4.3	Collar and Downhole Surveys	29
		7.4.4	Sample Length and True Thickness	29
		7.4.5	Logging Procedures	29
		7.4.6	Core Recovery	29
	7.5	Hydrogeology		30
	7.6	Geotechnical Data		30
	7.7	Commentary on Exploration		30
8	Sample Preparation, Analyses and Security			31
	8.1	Sampling Method and Approach		31
		8.1.1	Channel Samples	31
		8.1.2	Core Samples	31
	8.2	Density Determination		31
	8.3	Sample Security		31
	8.4	Laboratory Sample Preparation		31
	8.5	Assaying Methods and Analytical Procedures		32
	8.6	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)		32


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa


		8.6.1	Field QAQC	32
		8.6.2	Laboratory QAQC	33
		8.6.3	QAQC results	33
	8.7	Comment on Sample Preparation, Analyses and Security		34
9	Data verification			35
	9.1	Data Verification Procedures		35
	9.2	Limitations to the Data Verification		35
	9.3	Comment on Data Verification		35
10	Mineral Processing and Metallurgical Testing			36
	10.1	Extent of Processing, Testing, and Analytical Procedures		36
	10.2	Degree of Representation of the Mineral Deposit		36
	10.3	Analytical Laboratory Details		36
	10.4	Test Results and Recovery Estimates		36
	10.5	Commentary on Mineral Processing and Metallurgical Testing		37
11	Mineral Resource Estimate			38
	11.1	Geological Database		38
	11.2	Global Statistics		38
	11.3	Geological Interpretation		38
		11.3.1	VCR Facies Model	38
		11.3.2	CLR Facies Model	40
	11.4	Mineral Resource Estimation Methods		40
		11.4.1	Statistics	40
		11.4.2	Evaluation Parameters	40
		11.4.3	Gold Value Estimation	42
		11.4.4	Declustering	42
		11.4.5	Inferred Declustered Global Mean	44
		11.4.6	Relative Density and Tonnage Calculation	44
		11.4.7	Model Validation	44
	11.5	Mineral Resource Evaluation		44
	11.6	Mineral Resource Classification and Uncertainties		44
	11.7	Mineral Resource Estimate		45
	11.8	Mineral Resource Reconciliation		47
	11.9	Comment on Mineral Resource Estimates		47
12	Mineral Reserve Estimate			48
	12.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve		48
	12.2	Modifying Factors		50
	12.3	Mineral Reserve Estimate		50
	12.4	Mineral Reserve Reconciliation		51
	12.5	Commentary on Mineral Reserve Estimate		51
13	Mining Method			52
	13.1	SGM		52
	13.2	Mine design		54
		13.2.1	Mine Design Parameters	57
		13.2.2	Geohydrological and Seismic Monitoring	57
	13.3	Mine Plan Development and Life of Mine (“LOM”) Schedule		58
	13.4	Geotechnical and Geohydrological Considerations		58
	13.5	Mining Operations		58
		13.5.1	Mining Rates	58
		13.5.2	Mining Equipment and Machinery	60
		13.5.3	Grade and Dilution Control	60
		13.5.4	Ore transport	60


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa


		13.5.5	Mining Personnel	61
	13.6	Commentary on Mining Method		62
14	Processing and Recovery Methods			63
	14.1	Mineral Processing Description		63
	14.2	Plant Throughput, Design, Equipment Characteristics and Specifications		63
	14.3	Energy, Water, Process Material and Personnel Requirements		65
	14.4	Commentary on the Processing and Recovery Methods		65
15	Infrastructure			67
	15.1	Surface Infrastructure		67
		15.1.1	Ore and Waste Rock Storage Facilities	67
		15.1.2	Tailings Storage Facilities	67
		15.1.3	Power and Electrical	67
		15.1.4	Water Usage	70
	15.2	Underground Infrastructure and Shafts		70
	15.3	Commentary on Infrastructure		70
16	Market Studies			72
	16.1	Market Overview		72
	16.2	Global Production and Supply		72
		16.2.1	New Mine Production	72
		16.2.2	Recycling	72
	16.3	Global Consumption and Demand		72
		16.3.1	Jewellery	72
		16.3.2	Investment	73
		16.3.3	Currency	73
	16.4	Gold Price		73
		16.4.1	Historical Gold Price	73
		16.4.2	Forecast Gold Price	73
		16.4.3	Harmony Group Gold Hedging Policy	75
	16.5	Commentary on Market Studies		75
	16.6	Material Contracts		76
17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			77
	17.1	Results of Environmental Studies		77
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		77
	17.3	Permitting and Licences		78
	17.4	Local Stakeholder Plans and Agreements		79
	17.5	Mine Closure Plans		79
	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups		80
	17.7	Local Procurement and Hiring		80
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		80
18	Capital and Operating Costs			81
	18.1	Capital Costs		81
	18.2	Operating Costs		81
	18.3	Comment on Capital and Operating Costs		81
19	Economic Analysis			82
	19.1	Key Economic Assumptions and Parameters		82
		19.1.1	Metallurgical Recoveries	82
		19.1.2	Gold Price	82
		19.1.3	Exchange Rate	82


Effective Date: 30 June 2022 v


			Technical Report Summary for Mponeng Mine, Gauteng, South Africa


		19.1.4	Royalties	84
		19.1.5	Capital Expenditure	84
		19.1.6	Operating Expenditure	84
		19.1.7	Working Capital	84
		19.1.8	Taxes	84
		19.1.9	Closure Cost and Salvage Value	84
		19.1.10	Summary	84
	19.2	Economic Analysis		84
	19.3	Sensitivity Analysis		86
20	Adjacent properties			88
21	Other Relevant Data and Information			89
22	Interpretation and Conclusions			90
23	Recommendations			92
24	References			93
25	Reliance on Information Provided by the Registrant			94


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

List of Figures


Figure 3-1: Location of Mponeng Mine			9
Figure 3-2: Legal Tenure of Mponeng Mine			9
Figure 5-1: Graph of Past Production – Tonnes and Grade			14
Figure 5-2: Graph of Past Metal Production			14
Figure 6-1: Regional Geology of the Witwatersrand Basin			16
Figure 6-2: Stratigraphy of the CRG in the Witwatersrand Supergroup			17
Figure 6-3: Simplified stratigraphy of the West Wits Goldfield			18
Figure 6-4: Mponeng west - east section across 123 level VCR intersection			18
Figure 6-5: Mponeng VCR Geological Structure Plan			20
Figure 6-6: Mponeng CLR Geological Structure Plan			20
Figure 7-1: Location of Samples Collected from the VCR to Date			25
Figure 7-2: Location of Samples Collected from the CLR to Date			25
Figure 7-3: Location of Surface and Underground Drill holes Intersecting the VCR			26
Figure 7-4: Location of Surface and Underground Drill holes Intersecting the CLR			26
Figure 11-1: Mponeng VCR Footwall Estimation Domains			40
Figure 11-2: Mponeng CLR Footwall Estimation Domains			40
Figure 11-3: Distribution of the VCR Gold Value at Mponeng			43
Figure 11-4: Distribution of the CLR Gold Value at Mponeng and TauTona			43
Figure 11-5: Location of Mponeng VCR Mineral Resources			46
Figure 11-6: Location of Mponeng CLR Mineral Resources			46
Figure 12-1: Location of Mponeng VCR Mineral Reserves			49
Figure 12-2: Location of Mponeng CLR Mineral Reserves			49
Figure 13-1: Plan Showing the SGM Sequence at Mponeng			43
Figure 13-2: Plan view of a Typical Footwall Crosscut at Mponeng			55
Figure 13-3: Section of a Typical Footwall Crosscut at Mponeng			55
Figure 13-4: Mponeng Mine Outline			56
Figure 13-5: Graph of Mponeng LOM Plan - Tonnes and Grade			59
Figure 13-6: Graph of Mponeng LOM Plan – Gold Produced (kg)			59
Figure 13-7: Mponeng Cycle Mining and Supporting Crew Functions			62
Figure 14-1: Schematic Flow Diagram of the Metallurgical Process			64
Figure 14-2: Graph of VCR Historical Recovery Factor (18 months actual)			66
Figure 14-3: Graph of CLR Historical Recovery Factor (17 months actual)			66
Figure 15-1: Mponeng Surface Mine Layout and Infrastructure			68
Figure 15-2: Mponeng Mine Detailed Surface Infrastructure			69
Figure 15-3: Mponeng Mine Shaft and Underground Infrastructure			71
Figure 16-1: Graph of Annual Gold Price History – ZAR/kg			74
Figure 16-2: Graph of Consensus View of Forecast Gold Price			74
Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast			83


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

List of Tables


Table 1-1: Summary of the Mponeng Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8			3
Table 1-2: Summary of the Mponeng Mineral Reserves as at 30 June 2022 1-5			4
Table 1-3: Summary of LOM Capital Cost Estimate for Mponeng			5
Table 1-4: Summary of Operating Cost Estimates for Mponeng			5
Table 1-5: Status of Environmental Permits and Licences			5
Table 2-1: QP Qualification, Section Responsibilities and Personal Inspections			7
Table 3-1: Summary of Mining Rights for Mponeng			8
Table 5-1: Summary of Historical Ownership Changes and Activities of Mponeng Mine			11
Table 5-2: Summary of the Previous Mponeng Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)			12
Table 5-3: Summary of the Previous Mponeng Mineral Reserves as at 30 June 2021			12
Table 5-4: Number of Active Production Levels at Mponeng			13
Table 7-1: Summary of Surface and Underground Drill holes Intersecting the VCR (pre 2022)			27
Table 7-2: Summary of Surface and Underground Drill holes Intersecting the CLR (pre 2022)			28
Table 7-3: Drill hole Acceptance Criteria			29
Table 8-1: Summary of Analytical Quality Control Data			33
Table 8-2: Summary of Mponeng CRM Performance			34
Table 10-1: Head Grades of Samples			36
Table 10-2: Results for the CIP Tests			36
Table 11-1: Summary of the Gold Assay Descriptive Statistics			38
Table 11-2: Harmony Economic Assumptions (30 June 2022)			44
Table 11-3: Summary of the Mponeng Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8			47
Table 12-1: Mponeng Modifying Factors Used for Mineral Reserve Determination			50
Table 12-2: Summary of the Mponeng Mineral Reserves as at 30 June 2022 1-5			51
Table 13-1: Key Mine Design Parameters			57
Table 13-2: Mining Personnel Functions			61
Table 14-1: Key Equipment Specifications at Mponeng Gold Plant			63
Table 14-2: Design Throughput Versus Actual Throughput at Mponeng Gold Plant			63
Table 14-3: Consumables			65
Table 14-4: Leaching Process Material and Properties			65
Table 16-1: Material Contracts			76
Table 17-1: Status of Environmental Permits and Licences			79
Table 18-1: Summary of Capital Cost Estimates for Mponeng			81
Table 18-2: Summary of Operating Cost Estimates for Mponeng			91
Table 19-1: Conversions Used in Gold Price Calculations			82
Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)			82
Table 19-3: Key Economic Assumptions and Parameters			84
Table 19-4: Mponeng Cash Flow			85
Table 19-5: Gold Price Sensitivity Analysis			86
Table 19-6: Total Operating Cost Sensitivity Analysis			86
Table 19-7: Gold price, Operating Costs, and Production Variation Sensitivity Analysis			87
Table 25-1: Other Specialists			84


Effective Date: 30 June 2022 viii


			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
°C			degrees Celsius
µm			Micrometres
2D			Two-dimensional
3D			Three-dimensional
AE			Abnormal expenditure
Ag			Silver
AMIS			African Mineral Standards
AngloGold			AngloGold Ashanti Limited
Au			Gold
AuBIS			Harmony electronic database
Ave.			Average
BLR			Black Reef
BMD			Below mine datum
Bn			Billion
c.			Approximately
CIP			Carbon-In-Pulp
CLR			Carbon Leader Reef
cm			Centimetre
cmg/t			Centimetre-grams per tonne
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COP			Code of Practice
COV			Coefficient of Variation
CRG			Central Rand Group
CRM			Certified Reference Material
DMRE			Department of Mineral Resources and Energy
DWS			Department of Water and Sanitation
EIA			Environmental Impact Assessment
EMPR			Environmental Management Programme
EMS			Environmental Management System
EMTS			Electric Monorail Transport System
ESG			Environmental Social and Governance
Eskom			Eskom Holdings State Owned Company (SOC) Limited
ETF's			Exchange Traded Funds
EW-SX			Electro-wining solvent extraction
FX			Foreign Exchange rate
g			Gram
g/t			Grams per tonne
g/t			Grams per metric tonne
GDARD			Gauteng Department of Agriculture and Rural Development
GHG			Greenhouse gas
GISTM			Global Industry Standard on Tailings Management
Harmony			Harmony Gold Mining Company Limited
HPE			Hydro-powered
Kalgold			Kalahari Goldridge Mining Company Limited
kg			Kilogram
km			Kilometre
km2			Square kilometre
Kusasalethu			Kusasalethu Gold Mine


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa


kWh			Kilowatt-hour
LDL			Lower detection limit
LIB			Long Inclined Borehole
LMBA			London Bullion Market Association
LOM			Life of Mine
Ltd			Limited
m			Metre
M			Million
m3/hr			Cubic metres per hour
masl			Metres above sea level
MCC			Mining Charter Compliance
MCF			Mine Call Factor
Mintek			South Africa's national mineral research organisation
Moz			Million troy ounces
Mponeng			Mponeng Gold Mine
MPRDA			Mineral and Petroleum Resources Development Act, 28 of 2002
Mt			Million tonnes
Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
MW			Megawatts
NEMA			National Environmental Management Act, 107 of 1998
No.			Number
NPV			Net present value
OTC			Over the counter
oz			Troy ounce
PFZ			Pretorius Fault Zone
PSD			Particle Size Distribution
Pty			Proprietary
QA/QC			Quality Assurance/Quality Control
QP			Qualified Person
ROM			Run-of-Mine
SACNASP			South African Council for Natural Scientific Professions
SAMREC			The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves
SANAS			South African National Accreditation System
Savuka			Savuka Gold Mine
SD			Standard Deviation
SEC			Securities and Exchange Commission
SGM			Sequential Grid Mining
SLP			Social Labour Plan
t			Metric tonne
t/m3			Tonne per cubic metre
TauTona			TauTona Gold Mine
TRS			Technical Report Summary
TSF			Tailings Storage Facility
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
VCR			Ventersdorp Contact Reef
West Wits			Harmony's West Rand operations
WRG			West Rand Group
WUL(s)			Water Use Licence(s)


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa


ZAR			South African Rand
ZAR/kg			South African Rand per kilogram


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

Glossary of Terms


Term			Definition
Co-kriging			A method that is used to predict the value of the point at unobserved locations by sample points that are known to be spatially interconnected by adding other variables that have a correlation with the main variable or can also be used to predict 2 or more variables simultaneously.
Cut-off grade			Cut-off grade is the grade (i.e., the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Dilution			Unmineralized rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Head grade			The average grade of ore fed into the mill.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a Mineral Reserve.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa


Modifying Factors			Modifying factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include but are not restricted to; mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product.
			(1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable.
			(2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is:
			(1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and
			(2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must:
			(i) Be either:
			(A) An organization recognized within the mining industry as a reputable professional association; or
			(B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field;
			(ii) Admit eligible members primarily on the basis of their academic qualifications and experience;
			(iii) Establish and require compliance with professional standards of competence and ethics;
			(iv) Require or encourage continuing professional development;
			(v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and
			(vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.
Tailings Freeboard			The vertical height between the beached tailings against the embankment crest and the crest itself.


Effective Date: 30 June 2022 xiii


			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Person(s) (“QP”) of Harmony Gold Mining Company Limited (“Harmony” or the “Company”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Company’s Mponeng Mine (“Mponeng”). The TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, with an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature of this TRS.

Property Description

Mponeng is a deep-level underground gold producing mine situated near the town of Carletonville, South Africa. The mine is included as part of Harmony’s West Wits operations and is the deepest mine in the world with development currently at 3,841m below mine datum (“BMD”). The primary reef mined is the Ventersdorp Contact Reef (“VCR”), with future expansion planned on both the VCR and the Carbon Leeder Reef (“CLR”) horizon.

The original vertical twin shaft sinking from the surface commenced in 1981 and was commissioned along with the gold plant complex in 1986. Today, Mponeng comprises a twin-shaft system housing two surface shafts and two sub-shafts. Mponeng has its own processing plant situated adjacent to the mine. Ore and waste material are hoisted separately with ore being delivered to the plant by means of a conveyor belt and the waste rock going to the low-grade stockpile. Operations are powered by electricity from Eskom Holdings SOC Limited (a state-owned electricity supplier).

The following mining rights make up the full mining lease area of approximately 6,673ha:

•GP30/5/1/2/2(01) MR valid from 14 February 2006 to 13 February 2036; and

•GP30/5/1/2/2(248) MR valid from 16 October 2012 to 15 October 2022.

The mining rights 01MR and 248MR were ceded from AngloGold Ashanti Limited ("AngloGold") to Golden Core Trade and Investment (Pty) Ltd ("Golden Core"), a wholly owned subsidiary of Harmony on 30 September 2020 and were successfully registered in the Mining Titles Office on the 14 June 2021 as part of AngloGold’s sale of their last remaining South African assets to Harmony, including its West Wits Operations ("Transaction").

A section 102 Application in terms of the Mineral and Petroleum Resources Development Act, 28 of 2002 (‘MPRDA”) was submitted previously by AngloGold in March 2017 to consolidate its West Wits mining rights into a single mining right (GP30/5/1/2/2(01) MR) ("AngloGold Application"). The AngloGold Application was approved by the Department of Minerals and Energy ("DMRE") in August 2020, but was, however, not implemented due to a change in circumstances as a result of the Transaction and will consequently be withdrawn by AngloGold. On 15 February 2022, Golden Core submitted an application in terms of section 102 of the MPRDA, substantively similar to the AngloGold Application, to consolidate the mining rights and mining right areas into a single mining right (GP30/5/1/2/2(01) MR) ("Golden Core Application"). The Golden Core Application is currently pending at the DMRE.

There is no material litigation (including violations or fines) against Golden Core, which threatens its mineral rights, tenure, or operations.

Ownership

Mponeng is wholly owned by Harmony, including the associated mineral rights. Harmony acquired the mine as part of the transaction concluded on 1 October 2020 to take full ownership and control of South African business.


Effective Date: 30 June 2022 1


			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

Geology and Mineralisation

Mponeng is situated on the northwestern margin of the Witwatersrand Basin of South Africa, one of the prominent gold provinces in the world. There are seven gold-bearing conglomerates within the lease area, of which only the Ventersdorp Contact Reef (“VCR”) and Carbon Leader Reef (“CLR” are economically viable.

The VCR is a gold bearing, quartz pebble conglomerate of intermediate to high grade. It forms the base of the Ventersdorp Supergroup, which caps the Witwatersrand Supergroup through an angular unconformity. A characteristic of this horizon is the pronounced palaeomorphology, where a thick reef is preserved in the form of terraces separated stratigraphically by a thin inter-terrace slope reef.

The CLR, historically mined at the adjacent Harmony wholly owned TauTona and Savuka Mines, is reported as part of the Mponeng Mineral Resource. It is a c.20cm thick tabular, auriferous quartz pebble conglomerate. It lies 800-900m stratigraphically deeper than the VCR, near the base of the Johannesburg Subgroup of the Central Rand Group (“CRG”) of the Witwatersrand Supergroup.

Both the VCR and the CLR have been subjected to faulting and are intruded by a series of igneous dykes and sills of various ages that cut across the reefs. The gold mineralisation at Mponeng succeeded a period of deep burial, fracturing, and alteration. The gold and other elements are believed to have precipitated through the reaction of hydrothermal fluids at high temperatures along the reef horizons.

Status of Exploration, Development and Operation

Mponeng has mainly been mining the VCR for the past 35 years and has now included the CLR remaining at the adjacent TauTona Mine in the extraction model. The Mponeng Mine site is therefore well established and operates uninterrupted at a steady state capacity throughout the year.

The VCR at Mponeng has extensively been explored. Currently, Harmony continues to conduct underground production and exploration drilling and channel (chip) sampling. Sampling of underground drill hole intersections, as well as sampling of established stopes on the reef horizon, enable the Mponeng geological model to be updated monthly as new data is generated. Harmony has budgeted ZAR11.03M for infill exploration drilling of the VCR which will be spent over a period of two years. This infill drilling programme is aimed at increasing the confidence in the current below 120 mining fronts, as well as gather more information regarding the below 126 level. Since Mponeng is highly dependent on 123-126 VCR mining levels for bulk of the production, execution of replacement levels needs to commence during 2022.

Mineral Resource Estimate

The current Mineral Resources for both the VCR and CLR were estimated by the Harmony Qualified Person (“QP”) using 2D projected surfaces created in DESWIK CAD software. The QP created block models based on a verified electronic database containing surface drill hole data, as well as underground drilling, mapping, and sampling data obtained until December 2021. Gold values were estimated using ordinary and simple macro kriging interpolation methods.

The Mineral Resources were originally prepared, classified and reported according to the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 edition (“SAMREC, 2016”). For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Mineral Resource estimate, as at 30 June 2021, exclusive of the reported Mineral Reserves is summarised in Table 1-1. These Mineral Resources account for mining depletion recorded from July 2021 to June 2022.

The QP compiling the Mineral Resource estimate is Mr WH Olivier, Ore Reserve Manager at Mponeng, and employee of Harmony.

The areas below current infrastructure and support pillars are excluded from the Mineral Resources.


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

Table 1-1: Summary of the Mponeng Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	2.509	16.09	40,380
Indicated	18.335	13.96	255,945
Total / Ave. Measured + Indicated	20.844	14.22	296,324
Inferred	29.120	13.35	388,682
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	2.766	0.469	1.298
Indicated	20.211	0.407	8.229
Total / Ave. Measured + Indicated	22.976	0.415	9.527
Inferred	32.100	0.389	12.496
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr WH Olivier, who is Ore Reserve Manager at Mponeng, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 761cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.

Mineral Reserve Estimate

The QP compiling the Mineral Reserve estimate is Mr WH Olivier, Ore Reserve Manager at Mponeng, and employee of Harmony.


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

Table 1-2: Summary of the Mponeng Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	2.298	8.09	18,580
Probable	4.290	9.12	39,122
Total (Proved + Probable)	6.587	8.76	57,701


IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	2.533	0.236	0.597
Probable	4.728	0.266	1.258
Total (Proved + Probable)	7.261	0.255	1.855
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr WH Olivier, who is the Mponeng Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. Mineral Reserves are reported using a cut-off grade of 971cmg/t determined using a gold price of USD1,546/oz gold.

The Mineral Reserves comprise 32% Proved Reserves and 68% Probable Reserves. In the opinion of the QP, given that Mponeng is an established operation, the modifying factors informing the Mineral Reserve estimates would at minimum, satisfy the confidence levels of a Pre-Feasibility Study.

Mineral Reserves comprise the VCR from Mponeng Mine and the CLR from the TauTona Mine. The declared Mineral Reserve is depleted to generate the Mponeng cashflows. The economic analysis of the cashflows display positive results and are deemed both technically and economically achievable. It is important to note that the Mineral Reserves are declared as delivered to the mills, except for the recovered gold content. This gold content is calculated after factoring in the plant recovery as a modifying factor.

Capital and Operating Cost Estimates

The capital cost estimates for Mponeng are determined at corporate level, using the business plan as a basis. The capital cost elements are equipment, infrastructure, and operating capital. The capital and operating costs are reported in ZAR terms and on a real basis. The capital cost estimates are shown in Table 1-3.

The operating cost estimates for Mponeng are categorised into direct and total costs. A summary of the Mponeng operating cost estimate is shown in the Table 1-4.

Both, the capital and operating estimates are accounted for in the economic analysis of Mponeng Mine. The results of the economic analysis demonstrate positive returns.

Permitting Requirements

Mponeng’s valid environmental permits are summarised in Table 1-5.

An application to renew and amend the existing Waste Management Licence, Environmental Management Programme (“EMPR”) and Water Use Licence (“WUL”) was submitted to the respective regulator. The approval for these environmental permits is pending at the effective date of this TRS. Most of the required environmental authorisations are in place and only require amendments to be made.

Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months. There is no material litigation (including violations or fines) against the Company as at the date of this report, which threatens its mineral rights, tenure, or operations.


Effective Date: 30 June 2022 4


			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

Table 1-3: Summary of LOM Capital Cost Estimate for Mponeng


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2029)
Abnormal Expenditure			392,553
Shaft Projects - VCR			624,558
Shaft Projects - CLR			53,788
Mining Charter Compliance			144,365
Total Cost			1,215,264
Note: No capital costs for 2029 onwards.

Table 1-4: Summary of Operating Cost Estimates for Mponeng


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2029)
Mining			13,395,728
Services			2,588,570
Medical Hub / Station			549,066
Engineering			15,439,902


Total Direct Costs			31,973,266
Mine Overheads			1,977,763
Royalties			737,038
Ongoing Capex			1,742,064
Total Cost			36,430,131

Table 1-5: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Environmental Management Programme (Amendment)

(GP) 30/5/1/2/3/2/1 (01)

DMRE

12-Apr-2012

LOM

Waste Management Licence

GAUT 002/09-10/W0011

GDARD

22-Jun-2015

Expired July 2019. New application submitted.

Hazardous Waste Generator Certificate

GPG-01-513

GDARD

14-Jul-2015

In perpetuity

Water Use Licence

08/C23E/AEFGJ/1250

DWS

08-Sep-2011

20 years

Water Use Licence

10/C23E/AFJ/4787

DWS

01-Dec-2016

15 years

Certificate of Registration Inflammable Liquids and Substances

RP438/ptn5

West Rand District Municipality

30-Nov-2021

Annually

Conclusions

Mponeng Mine, a 100% owned Harmony asset, is located in a well-established mining district and has been operating successfully for the past 35 years. The mine is accessible within national and provincial roads, with well-established infrastructure. Management has a good handle on aspects pertaining to legal and environmental matters with respect to operating within the South African mining law, as regulated by the MPRDA, and supporting legislation.

Mponeng hosts a prominent gold bearing Mineral Resource. The interpretation of the regional geological setting, mineralisation and ore body deposit is well understood and provides valuable insight to the gold mining operations. The mining methods of the Mineral Reserves is of sound design and has evolved over the history of the operations.

The current preferred, Sequential Grid Mining method, has progressively improved, with a significant focus on increased safety and reduced seismicity related events. The gold recovery is well monitored through continuous bench marking initiatives against the mineral processing plants’ historical data.


Effective Date: 30 June 2022 5


			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

Harmony is in possession of robust contracts, with the gold price showing upside potential. The economics for Mponeng Mine display positive cashflows, based on detailed operating and capital costs. The valuation of the asset is proven to be most sensitive to the gold price. The assumptions and conclusions in this TRS contain the views of QPs and does not contain any known material risks at the time of compilation.

Recommendations

Mponeng Mine has a current LOM of an estimated seven to eight years, establishment of replacement ground is required over the next five years. It is recommended that timeline for study work remains on track to ensure timeous introduction of ounces post five years.

Study work on the safe extraction of the shaft pillars is also being considered and study work should commence during the next financial year.


Effective Date: 30 June 2022 6


			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

2Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS on the Mponeng Mine has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the U.S. SEC Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 - Technical Report Summary. The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand Mponeng which forms part of Harmony’s activities.

This TRS has been prepared from the following sources of information:

•data available in the Competent Persons Report dated 30 June 2022;

•the 2022 and 2023 Corporate Business Plan; and

•published Ore Reserve as at 30 June 2022.

Table 2-1: QP Qualification, Section Responsibilities and Personal Inspections

Qualified Person

Professional Organisation

Qualification

TRS Section Responsibility

Personal Insp.

Mr W Oliver

SAGC (No. MS 0136)

GDE (Mining Engineering) Government Certificate of Competency in Mine Survey

Relevant information in the Executive Summary (Section 1), Section 2-5, 7.6-7.7, 11.2-13, 15-25.

Full time

Mr G Flitton

SACNASP (No. 4000/19/15)

BSc Hons (Geology)
GDE (Mineral Economics)

Relevant information in the Executive Summary (Section 1).

Full time

Mr W Beukes

SAGC (No. MS 0118)

NHD Mineral Resource Management

Relevant information in the Executive Summary (Section 1),

Full time

This TRS is the first filing of such a document with the SEC and has an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature.


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

3Property Description and Location

Section 229.601(b)(96) (3) (i-vii)

Mponeng is an underground gold producing mine located in the West Wits mining district south-west of Johannesburg, on the border between Gauteng and the North West Province. At longitude 27°25'53.62"E and latitude 26°26'12.27"S, the mine is approximately 65km from Johannesburg and 15km from Carletonville and forms part of Harmony's West Rand (“West Wits”) operations. The location of Mponeng and its relative proximity to the other West Wits operations is shown in Figure 3-1.

3.1Mineral Tenure

As part of the acquisition of AngloGold’s South African business, all mining rights related to Mponeng were transferred and are now held by Harmony. There are three mining rights that form Mponeng area which were successfully converted, executed and registered at the Mineral and Petroleum Resources Titles Office. The principal mining right (GP30/5/1/2/2(01) MR) covers an area of 6,477ha for the mining of gold, silver, nickel and uranium. This mining right, granted on the 14 February 2006, unless cancelled or suspended will continue in force for 36 years ending 13 February 2036. The other mining right, GP30/5/1/2/2(248) MR, is planned to be incorporated into the principal mining right (GP30/5/1/2/2(01) MR. On 15 February 2022, Golden Core applied in terms of section 102 of the MPRDA, substantively similar to the AngloGold Application, to consolidate the mining rights and mining right areas into a single mining right (GP30/5/1/2/2(01) MR) ("Golden Core Application"). The Golden Core Application is currently pending at the DMRE.

The Mponeng mining area and associated mining rights held by Harmony are shown in Figure 3-2 and detailed in Table 3-1, respectively.

Table 3-1: Summary of Mining Rights for Mponeng

Operation

Licence Type

Reference No.

Effective Date

Expiry Date

Area (ha)

Mponeng Mine

Mining Right

GP30/5/1/2/2(01) MR

14-Feb-2006

13-Feb-2036

6,477.35

Magnum Farm

Mining Right

GP30/5/1/2/2(248) MR

16-Oct-2012

15-Oct-2022

195.83

Total

6,673.18

Under the MPRDA, Harmony is entitled to apply to review the mining right on its expiry. There are no known legal proceedings that may influence the right to mine. The mining right associated with Savuka Mine has expired, however this is not considered a material risk given that no Mineral Resource and Mineral Reserve has been declared under this mining right.

3.2Property Permitting Requirements

Mponeng is located on a site that has been operational for over 60 years, formerly known as Western Deep Levels. Western Deep Levels comprised West Shaft, East Shaft and South Shaft. South Shaft was commissioned in 1986 and renamed to Mponeng in 1999. The surface rights in the Mponeng area were previously held by AngloGold Ashanti and have not been transferred Harmony as at the date of this report. Harmony has access to all the properties it requires to conduct its current mining activities. The surface lease and surface right areas are sufficient in size and nature to accommodate the required surface infrastructure to facilitate current and planned mining and processing operations.


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa


Figure 3-1: Location of Mponeng Mine

Figure 3-2: Legal Tenure of Mponeng Mine


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

4Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

4.1Accessibility

Mponeng is located adjacent to the N12, a National Road and can be reached via tarred roads to all main access points. Access to the mine is restricted by security fencing, security guards, booms and lockable gates at the main entrance. In addition, a communication system and access control system monitors personnel entering and leaving the mine property.

4.2Physiology and Climate

Mponeng is situated approximately 1,550 metres above sea level (“masl”) within the Highveld region of South Africa. The surrounding area is characterised by undulating plains interspersed by rocky peaks. A prominent rock ridge known as the Gatsrand extends from the eastern extent to the western extremity forming a watershed.

The mine falls within the Highveld climatic zone, which is characterised by warm temperatures, dry winters, and summer rainfall (with all conditions being erratic and extremely variable). The average annual rainfall recorded at the operation, based on recorded data between 2015 and 2018 was 698mm. Heavy thunderstorms between November and February, during which much of the rainfall occurs, results in erosion and runoff. Temperature patterns are characterised by seasonal and daily variations, where summers are hot, and winters are mild to cold. The seasonal fluctuations in mean temperatures between the warmest and the coldest months vary between 12°C and 15°C. The month of June is generally the coldest month with lowest recorded temperatures of an estimated -2°C while the maximum recorded temperature of 37°C generally occurs in February. Windy months occur between August and November. The Mponeng operation is not restricted by climatic or seasonal occurrences.

4.3Local Resources and Infrastructure

Mponeng comprises a twin-shaft system with two surface vertical shafts and two sub-vertical shafts. Ore and waste material are hoisted separately with ore being delivered to the plant by means of a conveyor belt and the waste rock going to the low-grade stockpile. Mponeng has its own processing plant situated adjacent to the mine. Operations are powered by electricity from Eskom Holdings State Owned Company (SOC) Limited.


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

5History

Section 229.601(b)(96) (5) (i-ii)

5.1Historical Ownership and Development

Mponeng was formerly known as Western Deep Levels South Shaft, or No.1 Shaft when Anglo American Corporation first owned the operation. The No. 1 South Shaft system (i.e., the vertical twin shaft) together with the gold plant were commissioned in 1986. The shaft system allowed access to the deeper VCR in the southern part of the lease area. The name changed in 1999 to Mponeng and was 100% owned and operated up until recently by AngloGold Ashanti. As at 1 October 2020, Harmony took full control and ownership of Mponeng as part of the acquisition of AngloGold Ashanti’s South African business.

Mponeng is part of the West Wits mining district that includes the Savuka Mine (previously known as Western Deep Levels No.2 Shaft) and the TauTona Mine (previously known as Western Deep Levels No. 3 Shaft) (both now also 100% owned by Harmony). These two mines predominantly exploited the CLR within the lease area, which is now mostly mined out resulting in them being placed on care and maintenance in 2017. The Mineral Resources and Mineral Reserves for TauTona were transferred to Mponeng during the same year. The historical ownership and associated activities related to Mponeng are summarised in Table 5-1.

Table 5-1: Summary of Historical Ownership Changes and Activities of Mponeng Mine


Year			Asset History Highlights
1981			Anglo American Corporation commenced construction of the original twin shaft system and the gold plant complex in the southern part of the lease area.
1986			The vertical twin shaft system and the gold plant was commissioned.
1993			A sub-vertical shaft was commissioned that enabled development and production of the VCR.
1995			Anglo American Corporation approves a project to deepen the mine’s South Shaft system from 3 036m to 3 805m BMD
1998			AngloGold was formed through the merger of the gold interests of Anglo American and its associated companies.
1999			In November, Gold Fields Limited and AngloGold agreed to a mineral rights exchange between Western Deep Levels and Driefontein.
1999			The Western Deep South Shaft or No 1 Shaft changed name to Mponeng Mine.
2001			AngloGold approves the deepening project to establish the mining area from 109 level to 120 level.
2004-2009			The SSV shaft and the SS2 shaft were sunk and equipped.
2007			AngloGold approves the USD1.1bilion B120 Phase 1 project, formerly known as the VCR B120 project.
2017			Savuka and TauTona mines placed under care and maintenance and the Mineral Resources and Mineral Reserves for TauTona were transferred to Mponeng.
2017			AngloGold submitted a section 102 application to consolidate the three mining rights.
2020			Harmony takes ownership and control of Mponeng as of 1 October from AngloGold.

5.2Historical Exploration

Exploration work on the Mponeng (then Western Deep Levels) lease area commenced in the early 1980s. The work was initially limited to surface platforms, where an extensive surface exploration programme was conducted across the Western Deep Levels leases by Anglo American. As the underground areas were accessed, more platforms were generated underground. During the 1980s and 1990s, the exploration work complimented and supported the longwall mining activities, exploring east and west of the mining fronts on the shallower levels, as well as ahead of the deepening project to 3,000m below surface.

From 1990s to 2000, longer exploration drill holes from the underground platforms began to probe the deeper parts of the VCR horizon to 3,500m below the ground surface. From 2000, exploration started to ramp up as more underground platforms were developed allowing rigs to be positioned across the east and west of the mine, targeting the deeper parts of the VCR to 3,700m below the ground surface.

From 2008, the deeper parts of the CLR horizon were explored from the Mponeng underground platforms for the CLR deepening project. The programme was completed in 2010/2011.


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The last of the surface exploration programmes at Mponeng was started in 2009 and stopped in 2019, when it was decided that probing deeper than 4,000m was no longer aligned with the strategy for mining the VCR. The last four surface drill holes were drilled during this period, with the last two of these being abandoned. These intersections complimented the already extensive surface drill hole programme completed decades before.

Exploration from 2020 to current continued to probe the areas east and west ahead of the current mining front from 126 level and deeper. The information generated there has improved confidence in the geological structure model and added data points for the estimation on the VCR so that value estimates can be extrapolated deeper with more confidence.

5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous in-situ Mineral Resource estimate for both the VCR and CLR horizons at Mponeng was declared as at 30 June 2021 by Harmony Gold Ltd, according to the definitions stipulated in the SAMREC Code, 2016. The Mineral Resource was estimated using mixed support co-kriging, a technique that allows both drill hole and underground sampling data to be used together.

The previous Mineral Resource estimate is summarised in Table 5-2, is exclusive of Mineral Reserves and has been superseded by the current estimate prepared by Harmony in Section 12 of this TRS.

Table 5-2: Summary of the Previous Mponeng Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	1.615	15.45	24,946
Indicated	17.774	13.84	245,974
Total / Ave. Measured + Indicated	19.389	13.97	270,920
Inferred	28.058	13.60	381,510
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	1.780	0.450	0.802
Indicated	19.592	0.404	7.908
Total / Ave. Measured + Indicated	21.373	0.408	8.710
Inferred	30.928	0.397	12.266

The previous Mineral Reserve estimate for the VCR horizon (at Mponeng) and CLR horizon (at TauTona) was declared by Harmony as at 30 June 2021 in accordance with the SAMREC Code. Modifying Factors were applied to the in situ Mineral Resource to arrive at the Mineral Reserve estimate. These factors included a dilution to accommodate the difference between milling width and stoping width, as well as the Mine Call Factor (“MCF”). The previous Mineral Reserve estimate is summarised in Table 5-3 and has been superseded by the current estimate prepared by Harmony as detailed in Section 12.3 of this TRS.

Table 5-3: Summary of the Previous Mponeng Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proven	1.908	8.72	16,631
Probable	5.760	8.47	48,809
Total / Ave. Proven + Probable	7.668	8.53	65,440
IMPERIAL
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	2.103	0.254	0.535
Probable	6.350	0.247	1.569
Total / Ave. Proven + Probable	8.452	0.249	2.104


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5.4Past Production

Since the commencement of mining in 1986 and reaching a steady state in 1991, the average annual production rate during this period was 327koz. The highest product rates at Mponeng were achieved in the period between 2002 and 2008, during which the average annual production was 528koz.

In 2019, the rate was slightly lower than the average annual production rate of 7,775kg achieved between 2015 and 2018 (Figure 5-1 and Figure 5-2). The average annual production is generally proportional to the number of active production levels as shown in Table 5-4. The production rate achieved in 2020 was not representative of normal operations at Mponeng, given that operations at Mponeng were not run by Harmony for the full year. For 2021, 6,608kg was produced, which was an increase of 11.8% year on year.

Table 5-4: Number of Active Production Levels at Mponeng


Period (Years)			Number of Active Levels
2019-2021			3 - 4
2015-2018			4 - 5
2009-2014			4 - 5
2002-2008			7
1992-2001			4 - 5
1986-1991			3


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Figure 5-1: Graph of Past Production – Tonnes and Grade

Figure 5-2: Graph of Past Metal Production


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii)

6.1Regional Geology

Mponeng is located on the north-western margin of the Archean Witwatersrand Basin, one of the prominent gold provinces in the world. The Witwatersrand Basin is an approximately 7,000m thick terrigenous sequence comprising mainly arenaceous and argillaceous, together with minor rudaceous, lithologies deposited in a fluvio-deltaic environment in the centre of the Archaean Kaapvaal Craton of South Africa (Robb and Meyer, 1995). The regional geology of the Witwatersrand Basin is shown in Figure 6-1.

The Witwatersrand Supergroup is subdivided into the basal West Rand Group (“WRG”) and overlying CRG (Robb and Robb, 1998). The WRG extends over an area of 43,000km2 and is up to 5,150m thick. It is sub-divided in three subgroups, namely, from bottom upwards, the Hospital Hill Subgroup; Government Subgroup and Jeppestown Subgroup. The stratigraphic succession of the WRG mainly consists of shale sediments, with occasional units of banded iron formation and conglomerate. The CRG is up to 2,880m thick and covers an area of up to 9,750km2, with a basal extent of c.290km x 150km. It is sub-divided into the lower Johannesburg Subgroup and upper Turffontein Subgroup as shown in Figure 6-2. These subgroups are separated by the Booysens Shale Formation. The stratigraphic succession of the CRG comprises coarse-grained fluvio-deltaic sedimentary rocks.

The major gold bearing conglomerates are mostly confined to the CRG, and these conglomerate horizons are known as reefs. The most important reefs within the CRG are at six stratigraphic positions, three within the Johannesburg Sub-group and three within the Turffontein Sub-group. The reefs are mined in seven major goldfields, and a few smaller occurrences, which extend for over 400km in what has been called “The Golden Arc”. This arc is centred on the prominent Vredefort Dome, as shown in Figure 6-1, which is thought to be a major meteorite impact site in the centre of the Witwatersrand Basin (Therriault et al., 1997). The goldfields, as shown in Figure 6-1, include: East Rand, South Rand, Central Rand, West Rand, West Wits, Klerksdorp, Free State (Welkom), and Evander.

6.2Local Geology

Mponeng is located within the West Wits Goldfield as shown in Figure 6-1. The general orientation of the Witwatersrand Supergroup succession in this goldfield is interpreted as west-southwest-trending and south-southeast dipping (Dankert and Hein, 2010).

The north-northeast-trending Bank Fault and the bedding sub-parallel Master Bedding Fault are the main faults identified in the goldfield (Dankert and Hein, 2010). The Bank Fault is described as a west dipping reverse fault that was reactivated as a normal fault. The Master Bedding Fault, which hosts brecciated and mylonite rock fragments, is described by various scholars as a 1m to 50m wide fault zone that is sub-parallel to bedding.

Mponeng mainly exploits the VCR, a tabular inclined gold-hosting horizon which is located at the top of the CRG (Figure 6-2), capping the Witwatersrand Supergroup (Figure 6-3). Extrusion of the overlying lavas of the Ventersdorp Supergroup halted the deposition of the VCR, preserving it in its current state.


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Figure 6-1: Regional Geology of the Witwatersrand Basin


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Figure 6-2: Stratigraphy of the CRG in the Witwatersrand Supergroup

Source: Modified after Tucker et al. (2016)


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa


Figure 6-3: Simplified stratigraphy of the West Wits Goldfield
Source: Adapted from Mazi et al. (2015)
Figure 6-4: Mponeng west - east section across 123 level VCR intersection


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

The VCR was deposited on the uneven footwall strata due to uplift and is now represented by a shallow angular unconformity. An east–west cross section showing variable footwall sub-outcrops across 123 level VCR intersection at Mponeng is presented in Figure 6-4. The footwall lithologies to the VCR therefore vary across Mponeng as the unconformity cuts deeper in an easterly direction into older strata of the Witwatersrand Supergroup.

6.3Property Geology

The VCR is continuously developed across the entire Mponeng mining area and dips at c.22 degrees in a south-southeast direction. The CLR, historically mined at the adjacent TauTona and Savuka mines, is the other gold-bearing reef reported as part of the Mponeng Mineral Resource. It lies 800-900m stratigraphically deeper than the VCR, near the base of the Johannesburg Subgroup of the CRG (Figure 6-2).

6.3.1VCR Lithology

The VCR consists of a quartz pebble conglomerate, which can be up to 3m thick in places. The footwall stratigraphy, following periods of uplift and erosion, controlled the development and preservation of the VCR. It is characterised by three major sedimentary facies referred to as the upper, middle and lower terrace reefs.

The upper terraces represent the original pulse of conglomerate deposition, and the lower terraces represent the final reworked product. The terraces are separated by narrow, laterally impersistent areas of slope reef. These slope reef areas constitute approximately 10-15% of the total surface area of the VCR.

Intermediate (middle) terrace elevations between the upper and lower terraces are observed throughout the relatively argillaceous protoquartzites of the Kimberley Formation (Figure 6-2) in the central portion of Mponeng are covered by the best-preserved VCR conglomerates. The Elsburg Formation (Figure 6-2) in the west is relatively more durable while the eastern side of the mine is dominated by shales and siltstones of the Booysens Formation. No VCR is preserved on the Krugersdorp Formation (Figure 6-2) on the far eastern side of Mponeng.

6.3.2CLR Lithology

The CLR consists of, on average, a 20cm thick, tabular, auriferous quartz pebble conglomerate and three distinct sedimentary facies (namely Unit 1, 2 and 3 facies). Economically, the most important facies is Unit 1, which is characterised by a hydrocarbon seam typically 1m to 20mm thick at the base of the <0.1m thick conglomerate (Fletcher, 2009; Muller, 1991). Unit 1 is a complex channel deposit that is only present along the eastern side of the lease area. Unit 2 can be up to 2m thick and consists of an interbedded conglomerate-quartzite sequence (Muller, 1991). Unit 3 is exposed in the southern edges of the lease area and is the oldest of the conglomerates. The unit has smaller amounts of hydrocarbons than Unit 1.

6.3.3Structure

The structural geology plan for the VCR is presented in Figure 6-5Figure 6-6 and the plan for the CLR is presented in Figure 6-6. Major faults at Mponeng were interpreted from historical seismic data using information from surface drill holes. These major faults define the margins of some of the reef blocks, as well as the preliminary contoured surface of the reefs.

One of the most important structures identified at Mponeng is the north-northeast-trending Pretorius Fault Zone (“PFZ”), with a maximum throw of 500m (Mazi et al., 2015). The delineation of the PFZ is paramount for both mine safety and planning. It has been interpreted as a growth fault with several phases of movement (Dankert and Hein, 2010). It is surrounded by a series of smaller normal faults that are likely to cause poor ground conditions when mining. This type of faulting cannot be detected by surface drilling and presents a major challenge to mine planning (Mazi et al., 2015).

The Mponeng lease area is also invaded by dolerite sills and syenite dykes of different ages (Mazi et al., 2015). Many of these dykes strike north to north–northeast with thicknesses that vary from 1m to 90m. Dykes located east of the mine are referred to as Gemsbokfontein and Venterspost; and dykes located on the west are referred to as Bank and Oberholzer.


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Figure 6-5: Mponeng VCR Geological Structure Plan

Figure 6-6: Mponeng CLR Geological Structure Plan


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Intrusive sills, although rare, have been identified in drill hole data and may be laterally continuous over several hundreds of metres. These sills often intrude along or close to the lava/quartzite contact (VCR horizon), thus removing or interrupting substantial portions of the reef.

6.4Mineralisation

Gold mineralisation is believed to have followed an episode of deep burial, fracturing and alteration. A variant of Archean gold bearing hydrothermal fluid was introduced into the conglomerates and circulated throughout in hydrothermal cells. The fluids precipitated gold and other elements through reactions that took place at elevated temperatures along the reef horizons, which was the more favourable fluid conduit. In the case of the VCR, the resulting gold grades are mostly uniformly distributed throughout the reef package.

6.4.1VCR Mineralisation

The VCR is dominated by silicate phases such as quartz (c.60%), chlorite (c.10 %), muscovite (c.5%) and zircon (c.1 %), as well as sulphide phases such as pyrite, pyrrhotite and chalcopyrite (c.10 %). The pyrrhotite/pyrite relationship is thermally related to prograde metamorphism often associated with the extrusion of the lavas of the Ventersdorp Supergroup.

6.4.2CLR Mineralisation

CLR mineralisation associated with the conglomerate occurs in the form of fine layers and stringers of pyrite rather than finely disseminated pyrite around the pebbles. “Flyspeck” carbon can be frequently found at the base of the conglomerate. The hydrocarbon precipitated also in thin, flat veins, usually at the base of the CLR conglomerate, and this is where the majority of the gold is concentrated.

6.4.3Alteration

The VCR displays strong alteration features, which can be explained by the hydrothermal fluids that infiltrated the reef and have overprinted on the original mineral assemblage. Portions of the reef contain authigenic sulphides such as pyrite, pyrrhotite, chalcopyrite, sphalerite and galena, incorporated in the conglomerate matrix. Gold associations with these mineral assemblages indicate a strong correlation of gold mobilisation and redistribution at the time of the hydrothermal fluid influx.

There is also a strong association of gold with a chloritization event focused along the reef horizon. The chlorite alteration gives a dark coloration to the reef. Gold was precipitated by cooling and reactions between the fluids and wallrock, in this case pyritic conglomerates. Gold mineralisation was enhanced in certain areas of high fluid throughput, which were often the sites of high carbon precipitation and early alteration in the case of the CLR.

6.5Deposit Type

The Mponeng deposit is classed a meta-sedimentary gold deposit. Folding and basin edge faulting have been important controls for sediment deposition and gold distribution patterns within the Witwatersrand Basin and fold trends have been employed in the economic evaluation of various reef horizons.

The individual reefs range in thickness from a few tens of centimetres to several metres and are confined to the interval between a basal degradation surface, which is normally an angular unconformity, and an upper planar bedding surface marking the contact with overlying quartzwackes or siltstones. Both the upper and lower margins of the reefs are marked by a sharp change in gold content from several grams per tonne to <20 part per billion.

The reefs occur as a lens-like fluvial bar and channel beds with unimodal palaeo-current directions. Thicker reefs occur as multi-channel sequences of conglomerate and quartz-arenite representing flood and waning stage flows. The depositional environment of the reef-hosts a range from proximal alluvial fans, to terraced fluvial, braid plain and braid delta, merging into shoreline environments.

On a regional scale the reefs are distributed along the margin of the CRG basin, at the main entry points of complex river systems into the original basin. On a mine scale, the highest grades are usually, but not exclusively in the channel facies, with higher grades where the channels are thickest. Individual reefs may be of the order of 3km or wider and 5km to 10km long.


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6.6Commentary on Geological Setting, Mineralisation and Deposit

There is an inherent risk in mining through the faults and intrusives that cross-cut both the VCR and CLR, and a key objective of Mponeng geologists is to identify these geological features ahead of the working face to assist with deciding on the best way to approach and mine through these structures. Identified major structures define the margins of the reef blocks upon which the mine is designed.


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

7Exploration

Section 229.601(b)(96) (7) (i-vi)

Exploration at Mponeng has mainly focused on improving confidence in the geological model, as well as adding and upgrading additional Mineral Resources to the mine. Geological data has been obtained through structured underground channel (chip) sampling, mapping and drilling. This underground detailed, closer spaced data gathering exercise has been preceded by surface exploration of the lease area using a historical geophysical seismic survey, as well as surface diamond core drilling.

Exploration from underground platforms is currently continuing for the VCR in the east and west of the current mining levels, between 3,500m and 3,700m below surface, to improve geological confidence.

7.1Geophysical Seismic Survey

A 3D seismic reflection survey was conducted by AngloGold Ashanti in 1993 for Mponeng Mine planning. The 3D survey was conducted by Compagnie Générale de Géophysique, covering an area of c.300km2 (Mazi et al., 2015). The objective of the survey was to delineate the sub-surface formations above and below the VCR and CLR horizons, at depths ranging from 2.7km to 4.2km.

The data obtained from the survey was processed by Velseis Processing Pty, successfully delineating the entire stratigraphy from surface through the Ventersdorp Supergroup to the base of the Witwatersrand Basin (c.11km in depth) including the VCR (see Figure 6-3). This enabled AngloGold Ashanti to better understand the structural characteristics of the VCR at depths between 2.5km and 3.5km below the surface. The CLR was not detected due to its relatively thin nature and association with quartzitic units which have unfavourable characteristic for seismic contrast.

In 1994, AngloGold Ashanti interpreted the results of the survey using Geophysical AIS-3D software which was further enhanced using exploration drill core and VCR mappings from sub-shaft intersections. The interpretation together with the new data allowed for the bulk shift of all interpreted data of about 42m. Additional analysis and interpretation of the dataset was undertaken in 1997 using the GeoQuest software. The results improved confidence in the geological planning at the then Western Deep Levels, particularly the positioning of the VCR at the sub-outcrop of the Kimberley Quartzite.

In 2010 and 2011, AngloGold Ashanti completed further analysis and interpretation on the 3D dataset particularly focusing on the CLR horizon. This confirmed the reef elevations in relation to already completed CLR underground exploration drill holes. This also confirmed major structures that could interrupt the continuity of the deeper extensions of the mineralised horizon from where it had been mined at TauTona. No further surveys and interpretations have been undertaken on Mponeng.

7.2Underground Mapping

Face and reef development mapping is undertaken by a team comprising two or more personnel. Face tapes are setup along gullies and the stope face and secured with the latest survey pegs installed in the workplaces. Reef position and other lithological and stratigraphic information is collected and measured relative to the reference tapes. The information is captured in a notebook.

Approximately 80-90% of all workplaces are inspected by member of the Geosciences team on a monthly basis to ensure that suitable mapping information coverage is achieved.


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7.3Channel Sampling Methods and Sample Quality

Channel (chip) sampling of underground panels blasted on monthly basis is conducted perpendicular to the channel contact across the exposed channels.

The section lines demarcating the width of the sample are drawn parallel to the reef waste contact while those demarcating the length of the sample are drawn at right angles to the reef waste contact and are marked 10cm apart. The samples are chipped out between these section lines.

Sampling of the VCR and CLR channels are undertaken at the advancing face on a grid spacing of 5m x 5m. The sampling process is audited monthly and annually by the Geoscience Manager.

The location of samples collected from the VCR to date is shown in Figure 7-1 and the location of the samples collected from the CLR is shown in Figure 7-2. The reader is referred to Section 6.3 for a brief description of the geological domains presented in the diagrams (for the VCR: the Elsburg, Kimberley, Booysens and Krugersdorp domains; and for the CLR: the BLY, SAV, TAU and DRIE domains).

7.4Drilling Campaigns, Procedures, Sampling, Recoveries and Results

7.4.1Surface Drilling

Most of the surface drill holes used in the estimation of the current Mineral Resources, as well as those drilled on adjacent properties, such as Kusasalethu Gold Mine (“Kusasalethu”) Savuka and TauTona mines, were drilled by Anglo American and AngloGold Ashanti before Harmony acquired the mine. The drill holes were completed using the diamond core drilling method.

The surface diamond core drilling has been undertaken using a thin-walled core barrel (TNW size core barrel) that delivers NQ (47.6 mm) core for better sample recovery. The drill grid spacing of the surface drill hole intersections is up to 1,000m, and is often required to be complimented by underground drill hole intersections. The accuracy of the surface drilling intersection positions from drill holes that are from 2,500m to 4,000m in depth is the major limiting factor of achieving any sort of planned grid. Long surface drill holes often deflect and the controlling direction over that depth has always been challenging in the South African gold mining context.

The location of the surface drill holes intersecting the VRC on Mponeng is shown on Figure 7-3 and the location of the surface drill holes intersecting the CLR is shown on Figure 7-4. The VCR surface drilling results are summarised in Table 7-1 and results for the CLR are summarised in Table 7-2.

7.4.2Underground Drilling

Underground exploration drilling has been on-going throughout the operational life of Mponeng as the mine deepens. Most of the underground drill holes used in the estimation of the current Mineral Resources were drilled by Anglo American and AngloGold Ashanti before Harmony acquired the mine.

Two types of underground drilling methods are used at Mponeng Mine. The first method involves drilling of Long Inclined Boreholes (“LIB”) or Long Vertical Boreholes (“LVB”), which are drilled up to 1,500m in length at any angle between zero degrees to -90 degrees. These drill holes are generally drilled using a more powerful hydraulic machine to improve depth penetration and core recovery. The core sizes used for reef intersections are BX (42mm) or BQ (36.5mm).

The second underground method is infill diamond core drilling, which is undertaken using small hydraulic and pneumatic drill rigs. The core size used for reef intersections is AXT (35.51mm).

The underground exploration strategy adopted to address the geological structure and reef locations at Mponeng includes the following:

•definition drilling aiming for a 100m to 200m drilling grid for optimal placement of primary haulage and cross-cut development; and

•infill drilling from haulages and crosscuts at a 100m to 50m drilling spacing is used for placement of secondary development and understanding reef existence and quality.

More drilling may be required in more complex areas and areas beyond the 200m drill spacing where geological definition is limited.


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Figure 7-1: Location of Samples Collected from the VCR to Date

Figure 7-2: Location of Samples Collected from the CLR to Date


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Figure 7-3: Location of Surface and Underground Drill holes Intersecting the VCR

Figure 7-4: Location of Surface and Underground Drill holes Intersecting the CLR


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Table 7-1: Summary of Surface and Underground Drill holes Intersecting the VCR (pre 2022)


Drill Hole ID	Ave. Au Value (cmg/t)	Ave. Channel Width (cm)	Drill Hole ID	Ave. Au Value (cmg/t)	Ave. Channel Width (cm)	Drill Hole ID	Ave. Au Value (cmg/t)	Ave. Channel Width (cm)
UD35	68	-	LIB21	959	44	LIB96_MP_D1	6,979	149
UD21-2	108	20	LIB26	481	25	LIB96_MP_D2	5,555	163
UD13	344	-	LIB29A	376	13	LIB96_MP_D3	8,362	232
LIB1	566	-	LIB30B	728	29	LIB97_MP	459	13
LIB60	566	-	LIB40	50	18	LIB97D1_MP	459	12
UD21-1	2,018	-	LIB51	895	27	LIB97D2_MP	1,847	38
S2E	0	13	S8E	139	10	LIB97D3_MP	1,005	10
UD58A	2,464	194	S9E	1,389	74	LIB91_MP	2,544	16
LIB16B	22,905	279	UD3	1,184	31	LIB92_MP	39	17
LIB25	1,621	38	UD30	511	27
LIB50	7,527	204	UD51.1	93	21
LIB53	1,752	39	UD51.2	38	19
LIB68	1,435	46	UD6	422	23
LIB72	573	89	LIB80	104	16
LIB75	2,164	108	LIB87	1,150	60
LIB76	5,948	148	LIB78	2,740	69
LIB79	951	43	LIB84	2,370	115
UD42.1	7,387	174	UD59	3,308	189
UD42.2	13,199	227	LIB90	3,196	244
UD60	3,785	118	LIB69	557	20
LIB86	2,035	89	LIB65	385	21
LIB83	1,127	91	LIB82	2,425	24
LIB85	416	72	LIB89	1,015	34
LIB88	561	95	LIB96_MP	9,575	153


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Table 7-2: Summary of Surface and Underground Drill holes Intersecting the CLR (pre 2022)


Drill Hole ID	Ave. Au Value (cmg/t)	Ave. Channel Width (cm)	Drill Hole ID	Ave. Au Value (cmg/t)	Ave. Channel Width (cm)	Drill Hole ID	Ave. Au Value (cmg/t)	Ave. Channel Width (cm)	Drill Hole ID	Ave. Au Value (cmg/t)	Ave. Channel Width (cm)
22/4253	3,522	65	E4	546	117	LVB14	1,970	22	UD32L	424	31
B1	994	55	E4A	1,027	74	LVB15	446	80	UD33L1+3	2,668	23
B3	341	20	E5	1,085	18	LVB16	895	43	UD33L2	631	28
CM1	1,293	56	E8G	28	196	LVB17	628	73	UD34	501	43
D2A	498	41	GBH1349	3,368	190	LVB17	628	73	UD36	1,980	38
D2B	691	48	GBH1350	2,848	137	LVB18	1,156	61	UD36L	2,616	34
D3A	468	53	GBH2603	8,364	72	LVB5	14	27	UD37	548	93
D4B	380	24	GBH6023	307	26	LVB6	1,344	28	UD4	2,168	23
D5A	586	17	LIB12	1,107	51	LVB7	69	20	UD49	1,846	24
D5B	810	28	LIB120Q	2,269	22	LVB9	2,792	49	UD6	1,515	38
D5C	164	70	LIB120SE2	1,041	32	LVBH	354	52	UD9	18,889	28
D6A	104	47	LIB120SE2	950	42	LVBI	756	37
D6B	1,308	94	LIB120SW1	5,929	41	LVBIL	562	13
D7A	3,048	79	LIB12L	2,905	75	LVBJ	576	13
D7B	291	69	LIB13	258	101	LVBK	517	24
D8A	243	65	LIB17B	1,382	102	LVBL	127	11
D8B	1,586	8	LIB24	1,048	26	MPO_LIB1	2,276	14
DK4	673	35	LIB3	856	40	MPO_LIB2	2,552	68
DPH3879A	2,129	31	LIB36	2,336	86	MPO_LIB3	1,035	35
E1C	8,433	34	LIB37	861	25	MPO_LIB4	929	49
E1E	1,781	66	LIB3L	1,139	54	UD12	1,624	28
E1G	2,521	184	LIB6	783	166	Ud13	353	90
E1H	1,635	61	LIB6L1	320	52	UD14	1,442	76
E1L	1,484	38	LIB6L2	989	191	UD15	340	55
E1S	1,549	34	LIBB120	2,195	144	UD16	137	57
E2C	1,854	16	LIBTT2002	960	302	UD2	315	21
E2D	1,445	17	LIC118	1,213	402	UD25	523	31
E3B	1,201	53	LVB12	2,680	239	UD32	699	36


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

The location of the underground drill holes intersecting the VRC on Mponeng is shown on Figure 7-3 and the location of the underground drill holes intersecting the CLR is shown on Figure 7-4. The underground drilling results are summarised in Table 7-1 and results for the CLR are summarised in Table 7-2. The underground exploration drill holes vary in length depending on the target position and ground conditions, but can have a length of up to 1,500m.

7.4.3Collar and Downhole Surveys

The drill holes used for reef delineation at Mponeng are surveyed to confirm both position and trajectory. Drill hole collar and downhole surveys are conducted on surface and LIBs/LVBs, as well as on the majority of the GBH and DBH drill holes drilled on the mine.

Surface drill hole collars are surveyed by internal Land Survey Department. Underground drill hole collars are checked against layouts issued to diamond drilling contractors and confirmed by offsets taken underground in the workplaces.

Downhole surveying is conducted using Electronic Multishot System and non-magnetic north seeking Gyro tools as supplied by a certified and specialised downhole survey company. Additional surveys are conducted on all LIB/LVB drill holes for verification purposes, and the results are submitted together with the primary survey data used to determine the drill hole trajectories.

All records received from the survey company are checked for quality and then captured and stored in the electronic databases.

7.4.4Sample Length and True Thickness

7.4.5Logging Procedures

All drill cores are photographed prior to logging and sampling. Drill core logging is qualitative, and all pertinent features are logged, including stratigraphy, lithology, structure, alteration and mineralisation characteristics. Observations are captured on the diamond drilling database by geologists. The logs are checked by the Senior Geologist prior to sampling.

7.4.6Core Recovery

Where possible, precautions are taken by the drilling contractors to utilize core barrels to ensure maximum recovery. Reef intersection “acceptability” is categorised as per the criteria summarised in Table 7-3.

Table 7-3: Drill hole Acceptance Criteria


Category			Comment
Acceptable			100% core recovery in the reef zone, or very minor loss due to reef chipping. No evidence of faulting within the reef horizon or at either contact with hanging wall or footwall lithologies.
Minimum value			Light to moderate disking of core in the core barrel due to drilling and/or ground conditions. Visual observations indicate that the conglomerate portion of the reef is usually more prone to disking, resulting in possible gold loss.
Faulted minimum value			If the fault loss is considered to be minor, this term may be used if the geologist is certain that only low-value internal quartzite is missing from the intersection.
Not acceptable			Heavy disking of core which may indicate core loss, partial known core loss due to grinding. Also faulting of any description within the reef zone.


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7.5Hydrogeology

Dykes within the lease area form impervious water barriers in the dolomite strata. The dykes separate the water-bearing dolomites into compartments. These compartments have been dewatered since the inception of mining to prevent the inflow of water into mining excavations. This has led to the development of numerous surface sinkholes in the area.

Subsurface water migrates along Ventersdorp and post-Ventersdorp age faults and dykes to the working areas of the mine. These features are usually closed. Therefore, significant water intersections are fewer than on some neighbouring mines. Water ingress also occurs at the sub-outcrop of the VCR with the Black Reef (not an economic reef horizon).

Many of the fault systems on the mine carry significant quantities of water and flammable gases. On the western side of the mine, the brittle Denny’s Quartzite creates the ideal host for the formation of open fissures, through which water and gas can be transmitted. The brittle Ventersdorp Lava also exhibits many of the deformation characteristics of the Denny’s Quartzite and may contain locally high water and gas yields.

Throughout the mine, water and gas, usually in small quantities, may also occur at the contact zones of dykes and sills. Intersections of water and gas in geological cover drilling account for most of the delays in the mine development.

7.6Geotechnical Data

Geotechnical issues related to underground workings are discussed in more detail in the Mining and Mine Design sections (Section 13).

7.7Commentary on Exploration

Exploration of the VCR target areas west and east of the 126-level mining front is planned for 2022/2023. These will form part of the approved exploration campaign. These targets will generate the needed information in two areas, on the Booysens/Kimberley transition towards the east of the Phase 1 LOM extension areas and the area west of the Kimberley estimation domains.

Both areas are currently showing high levels of variability that will benefit from the additional information that will be generated for the completion of these exploration drill holes. VCR variability limits the forward confidence in the Mineral Resource estimation. More data collected can assist the QP define the zones of high variability.

Mponeng Mine has budgeted ZAR11.03M for infill exploration drilling of the VCR 2021-2022 which is on schedule to be spent by financial year end 2022. All drilling will be conducted from underground platforms on VCR now.


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

8Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

This section summarises information relating to the sample preparation on site through to the laboratory preparation and analysis.

8.1Sampling Method and Approach

Sample types used to support both production and geological exploration include diamond drill core samples and channel (chip) samples.

8.1.1Channel Samples

Channel sampling is undertaken according to industry best practice, as well as the internal Underground Sampling Procedure. Samples are chipped from the advancing face from within clearly measured and marked channel sections, including the 2cm hanging wall and footwall width. Samples are weighed and submitted to the designated laboratory for assay.

An adequate mass of each sample is collected to allow sufficient sized aliquots to be analysed at the designated laboratory.

8.1.2Core Samples

Diamond drilled core is transported to the storage facility under the supervision of a Senior Geologist. Upon arrival, the core is logged and sampled according to the internal Drill hole Sampling Procedure.

Where possible the entire channel width intersected in each drill hole is split using a diamond drill core cutter and one half of the sample is bagged, tagged and sent to the designated laboratory for assay. The remaining half is retained for future reference. If the core condition is such that a successful cut cannot be achieved, then the whole core is submitted for assay. Pertinent data captured during sampling includes sample width (cm), mass, core lithological intersection angles and a detailed visual description of the reef. The data is recorded in the drill hole database together with the unique sample number, collection date and spatial location.

All samples are assessed for quality and signed-off by the Senior Geologist for completeness and auditability, prior to laboratory dispatch.

8.2Density Determination

The Relative Density of samples was determined through the work conducted originally in 2003 and again in 2015 and 2016. A total of 252 samples were taken from underground workings including hanging wall, reef and footwall samples. The dry mass and the submerged mass of the samples in water were measured and the density was calculated. Tests have occasionally been conducted thereafter on samples collected from the working places.

8.3Sample Security

Samples are stored in secured facility and can only be transported by a permit holder for transporting gold bearing material. Waybills and registers are checked and signed off by security. The samples are received from the mine in locked containers with seals. The sample labels are scanned at the designated laboratory and the batches compared to the submitted sample sheets. The scanned bar codes are kept at the laboratory and compared to the work sheets that are automatically created on the system. Sample lists submitted by the mine are used to compare what is received at the laboratory.

8.4Laboratory Sample Preparation

All samples are sent to the external SGS South Africa (Pty) Ltd laboratory (previously Performance Laboratories (Pty) Ltd) in Randfontein for preparation and assay. The laboratory is ISO/IEC 17025:2017 certified for chemical analysis by the South African National Accreditation System (“SANAS”) (accreditation number T0265).


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The total percentage mass loss on each sample should not exceed 2%.

8.5Assaying Methods and Analytical Procedures

For the period 1 December 2019 to 31 December 2020, Mponeng submitted a total of 26,836 samples for analysis of gold and uranium using the following analytical techniques:

•gold: 30g fire assay with a gravimetric finish. The lower detection limit is 0.2g/t.; and

•uranium: XRD analysis.

All pulps of exploration drill hole intersections are held and stored on site. Underground chip sample pulps are kept for a few months and then discarded.

8.6Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

This section summarises information relating to the field and laboratory QAQC measures in place to ensure the integrity of the assay results.

8.6.1Field QAQC

Out of the primary 19,942 primary samples submitted for analysis, 1,890 were QAQC samples. The QAQC was comprised of the following:

•390 coarse blanks;

•558 crushed blanks;

•336 milled blanks;

•606 Certified Reference Material (“CRMs”) or standards sourced from both African Mineral Standards (AMIS) and Rocklabs; and

•381 pairs of duplicates (416 above the lower detection limit).

Blank samples are submitted to monitor the possible contamination in the fusion process stage of the analysis at the laboratory. High- and low-grade CRMs are inserted to monitor the accuracy of the analytical methods. This ensures that the full range of gold categories is covered. Duplicate samples are submitted to monitor precision of the analytical methods. Pulverized primary samples are also selected at random and re-assayed.

Monthly Process Compliance Reports are compiled as part of the quality control on the sampling process. Standard formats are used and recorded for audit purposes. Process Compliance Reports on the Chippers are also compiled in order to check the quality of the chipping. These observations are made weekly and are also kept on record for audit purposes.

The assay results on the chip samples are reviewed daily and re-assays are requested if necessary. Chip sample data is also swapped where applicable on an annual basis or as required from the neighbouring operations. This data is used in the evaluation process for the macro estimates.


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8.6.2Laboratory QAQC

The laboratory's QAQC procedures include the following:

•repeat assays on some samples from the mine; and

•regular audits of the laboratory processes and facility are conducted by mine personnel and regional experts to monitor compliance. All audit reports compiled are assessed for remedial action by the responsible persons before next review. Monthly laboratory meetings are held with the Mponeng representatives to discuss concerns over the specific periods.

8.6.3QAQC results

The DatamineTM Fusion software setup for QAQC is used to assess results of the QC samples. This is undertaken to validate the accuracy of the laboratory assay data and ensure a high level of confidence in the Mineral Resource estimate.

If results of any of the CRM samples fall outside two standard deviations of the expected value for that particular CRM, they are deemed to have failed (they plot outside the acceptable tolerance limit). Portions of the batches that fail this criterion are queried with the laboratory and those samples are re-assayed.

The degree of bias is also monitored by comparing the calculated mean value to the expected value. Consistent failure of a standard and the bias to the low or high side of a standard, are cause for concern and acted on as soon as a trend is observed. All concerns are addressed with the laboratory directly. Results of the Mponeng quality control samples and the performance of the CRM or standard samples is summarised in Table 8-1 and Table 8-2, respectively.

Results of the CRMs are used to identify any issues with specific sample batches, and biases associated with the laboratory to which primary samples are sent. Control charts are produced to demonstrate performance of the laboratory’s sample preparation and analytical procedures.

Table 8-1: Summary of Analytical Quality Control Data


Quality Control Material Type	No. of Samples Submitted	No. of Failed Samples	Action Taken
CRMs / standards	606	130	Queries were raised at the laboratory. Photos were taken to confirm CRM, replacements were submitted, and re-assay was conducted.
Coarse blanks	390	69	Queries were raised at the laboratory. Photos were taken to confirm blank and re-assay was conducted.
Crushed blanks	558	102	Queries were raised at the laboratory. Photos were taken to confirm blank and re-assay was conducted.
Milled blanks	336	61	Queries were raised at the laboratory. Photos were taken to confirm blank and re-assay was conducted.
Pulp duplicates (13-months rolling)	1,100	168 pairs removed less than 2x lower detection limit ("LDL")	HARD analysis shows that 70% of the pairs has a precision of 10%. Ninety percent of the pairs have a precision of 45%. Sample values less than 2 X LDL (0.20g/t) were removed from the interpretation. 13.27% were removed.
Particle size analyses (pulverization)	673	n/a	Average of 94.13% passing 75 microns. The passing rate was 91.60% to 98.0% passing 75µm.


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Table 8-2: Summary of Mponeng CRM Performance


Standard	CRM Alias	Certified Value (g/t Au)	Mponeng (±2 STD)		SGS Randfontein
			Upper Limit (g/t Au)	Lower Limit (g/t Au)	Analysis	Ave. (g/t)	Outliers & Failures	Bias (%)
SN75	CRMOB015	8.67	9.069	8.273	99	8.41	43	-3.02
AMIS0705	CRMOC007	12.91	14.51	11.31	117	13.62	21	5.48
AMIS0553	CRMOF001	26.75	29.77	23.73	155	26.87	23	0.45
AMIS0428	CRMOG008	43.42	45.07	41.77	235	43.48	43	0.15

A total of 99 aliquots (portions of larger samples) of the selected lower grade CRM (CRMOB015, 8.67g/t gold) were submitted to the laboratory and 43 of those failed i.e., they plotted outside the acceptable tolerance limit of ±2 standard deviation from the expected value.

A total of 235 aliquots of the selected higher-grade CRM (CRMOG008, 43.42/t Au) were submitted to the laboratory and 43 of those failed.

8.7Comment on Sample Preparation, Analyses and Security

In the opinion of the QP that:

•the drill core sampling method adopted at Mponeng is appropriate for the Witwatersrand and VCR-type mineralisation;

•all underground chip sampling is representative of the channel sampled;

•the sample preparation, security and analytical procedures followed for gold grade determination are adequate; and

•the results of the QAQC assessment have been appropriately addressed to ensure that the assay results of the primary samples are adequate for Mineral Resource estimation.


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

9Data verification

Section 229.601(b)(96) (9) (i-iii)

All Mponeng drill hole and underground channel sampling data was previously captured and stored in AuBIS electronic database. Upon acquisition of the mine, Harmony migrated the database to DatamineTM Fusion (“Datamine”). This database is protected through administration rights allocated to an authorised administrator.

9.1Data Verification Procedures

Data verification procedures included the following:

•the drill hole database was checked against the original logs;

•the database was integrated with DESWIK CAD (“DESWIK”) software in order to check for missing collar coordinates, collar position and elevation errors, downhole survey errors, interval errors and duplicate sample records;

•the primary assay results captured in the database were validated by spot checking a selection of drill holes used in the current Mineral Resource estimate; and

•the assays captured in the electronic database were checked against the original laboratory certificates.

The QP did not identify any critical errors in the database.

9.2Limitations to the Data Verification

Replacement of the Mponeng databases and process for reporting of Mineral Resources and Reserves with the current Harmony designed databases and process maps were still being implemented at the effective date of this TRS. The system is not yet signed off as fully integrated as per the Harmony system specifications for Mponeng.

9.3Comment on Data Verification

The QP is of the opinion that the Mponeng drill hole and sample database is reliable and adequate for the purposes Mineral Resource estimation.


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

Mponeng and its processing facility have been in operation since 1986, as such the processing method is considered well established for the style of mineralisation processed. The plant therefore makes use of historical trends and data as a basis for their recoveries of VCR and CLR, however when projects are planned for optimisation, appropriate test work will be performed.

The ore processed at the Mponeng Gold Plant is a blend of ore received from the Mponeng Mine and the Kusasalethu Mine. The latest test work performed was in 2019 and analysed these blends to determine optimal conditions for processing.

10.1Extent of Processing, Testing, and Analytical Procedures

The objective of the test work performed by Mintek was to evaluate the gold extraction techniques at Mponeng Gold Plant when different conditions are applied. This test work was conducted to ensure optimal conditions for processing gold at the plant. The following conditions were evaluated:

•grind size;

•leach residence time;

•sodium cyanide (NaCN) concentration;

•carbon contact time; and

•composite feed material blended at different ratios.

10.2Degree of Representation of the Mineral Deposit

Two samples were sent to Mintek, namely one from Kusasalethu and one from Mponeng, weighing approximately 20kg with a complete PSD of below -1.7mm. The head grade of the samples can be seen in Table 10-1 which are an accurate representation of the ore mined at each site.

Table 10-1: Head Grades of Samples


Ore			Gold Grade (g/t)
Mponeng head 1			7.97
Mponeng head 2			7.15
Kusasalethu head 1			9.42
Kusasalethu head 2			9.21

10.3Analytical Laboratory Details

The metallurgical test work of the ore samples from Kusasalethu and Mponeng was conducted by Mintek. Mintek’s services include an analytical service division which specialises in geochemical and metallurgical analyses, and they have laboratories that conduct testing according to ISO 17025 requirements. Analysis of samples is being done at two different laboratories.For underground chip samples, assaying is conducted at Randfontein assaying laboratory. For bulk sampling (go belt) and pulp grades, assaying is conducted at the Orkney assaying lab. The company conducting assaying is SGS.

10.4Test Results and Recovery Estimates

The results of the analysis performed are outlined in Table 10-2.

Recovery achieved was best for Composite 2 and would suggest best performance at this specific blend.

Table 10-2: Results for the CIP Tests


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Ore	Gold Grade (g/t)	Carbon (g/t)	Percent Milled (%)	Lime Consumption (kg/t)	Recovery (%)
Kusasalethu	9.43	265	90	0.61	94.60
Kusasalethu (sample 2)	9.43	210	80	0.58	94.00
Composite 1 (30:70 - Mponeng)	7.82	210	-	0.55	97.20
Composite 2 (40:60 - Mponeng)	8.17	201	-	0.47	97.60

10.5Commentary on Mineral Processing and Metallurgical Testing

In 2019 a blend of ore was sent to Mintek to evaluate the optimal conditions for processing. The evaluation recommended that the optimal blend recovery is a composite of ore in a 40:60 ratio, with respect to Mponeng is to Kusasalethu. The current performance is aligned with this ratio.


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11Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

The current Mineral Resources for Mponeng have been estimated using DatamineTM Studio 3 (“Datamine”) modelling software. A Scripting/macro system has been generated, which is linked to a customised scripting menu. This scripting menu allows for professional and easy managing of the data and building of geostatistical models.

Gold values have been estimated into geological domains using geostatistical parameters that reflect the variability of the data and the data spacing. A type of de-clustering is undertaken into different block sizes in order to account for the change in support parameters.

11.1Geological Database

The Mponeng Mineral Resource estimate is based on the surface and underground exploration data obtained up to December 2021. The database was exported from the electronic database to Datamine modelling software.

The VCR validated database contains a total of 421,228 total samples made up of 397 surface and underground drill holes (surface and underground), and the remaining underground channel (chip) samples. The CLR validated database contains a total of 585,134 made up of 95 surface and underground drill holes, and the rest comprising of underground (chip) samples.

11.2Global Statistics

The global statistics by geozone are presented in Table 11-1.

Table 11-1: Summary of the Gold Assay Descriptive Statistics


Geozone	No. Samples	Minimum (cmg/t Au)	Maximum (cmg/t Au)	Mean (cmg/t Au)	Variance	SD (cmg/t Au)	COV
1 ELS	11,786	1.00	11,787	1,346	3,894	1,973	1.466
2 VTK	297,557	1.00	14,377	2,401	65,944	2,568	1.060
2 VTN	121,997	1.00	4,585	670	702,251	838	1.250
3 BTK	26,694	1.00	17,220	2,189	8,773,140	2,962	1.350
3 BTN	14,548	1.00	5,625	543	916,194	957	1.760
4 BTKS	9,759	2.00	20,723	2,519	11,172,581	3,343	1.330
4 BTNS	4,882	1.60	9,700	1,292	3,168,699	1,780	1.370
5 KRUG	1,910	1.00	6,604	385	874,764	935	2.430
Total	489,133

11.3Geological Interpretation

The imported data is attributed to both the VCR and CLR geological domains for generating geostatistical models.

11.3.1VCR Facies Model

The VCR facies model consists of three geological parameters, namely: terrace elevation, footwall lithology, and channel development or reef architecture. The geological model aims to divide the data into areas of slope and terrace, clearly defining the areas where VCR is preserved.


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The output of the model provides the geological basis for the evaluation model. Polygons defining areas of thick and thin VCR are outlined using new geological information. The VCR horizon is subdivided according to the footwall lithology, as illustrated in Figure 11-1.


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Figure 11-1: Mponeng VCR Footwall Estimation Domains

Figure 11-2: Mponeng CLR Footwall Estimation Domains


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Due to the varying hardness of the footwall zones across the mine, it has been observed that there exists a relationship between conglomerate development and preservation, and the footwall lithology. The geological model is divided up according to the footwall lithology sub-outcrop against the VCR. These parameters are observed in all underground mappings and drill hole intersections and are used to inform the final estimation model.

Variography and other statistical parameters were used to determine the similarities or differences between terraces. Statistically, the results showed that the geological terrace facies were homogeneous across all terrace elevations. It was therefore decided to continue with the terrace/slope model in conjunction with the footwall zones.

11.3.2CLR Facies Model

The CLR facies model is based on sedimentological changes across the West Wits Goldfield and is not able to provide much information on the mineralisation within the CLR. As a result, there was development of an estimation domain model that encompasses CLR mineralogical characteristics, alteration mineralogy, sedimentology facies, structural influences as well as trend analyses with the variations of gold values and channel width (Burnett et al., 2015). The estimation model is shown in Figure 11-2 and comprises five estimation domains related to surrounding mines, namely: Savuka (“SAV”), Blyvooruitzicht (“BLY”), Peggy (“PEG”), TauTona (“TAU”), and Driefontein (“Drie”). These domains are differentiated by conglomerate characteristics, which include matrix support, gold values and thickness.

11.4Mineral Resource Estimation Methods

2D surfaces of the VCR and CLR are created on DESWIK CAD Software.

11.4.1Statistics

Histograms and statistics of the raw data are calculated for each geological domain for comparison purposes. The Coefficient of Variation ("CV"), calculated by dividing the standard deviation with the mean, gives a measure of the variability of the data. A high CV (>1) represents highly variable or highly skewed data, which may require some form of capping of extreme values to lower the CV to a more reasonable value (c.1).

The experimental Semi-Variogram is a descriptive statistic diagnostic tool for spatially characterizing regionalized variables and is central to the process of kriging with the set data that can be used. The Semi-Variogram is a mathematical function that describes how the spatial continuity of the sampled attribute changes as a function of distance and orientation.

The Semi-Variogram estimation process allows for the display of experimental Semi-Variograms and the fitting of a model using interactive graphics. Either an isotropic or an anisotropic model can be defined, comprising a nugget variance and up to nine individual structures, although it is rarely necessary to include more than three structures. If the Nugget effect is more than two-thirds of the sill then geostatistical analysis cannot be undertaken. Each structure may be either spherical, power, exponential, Gaussian or De Wijsian, although spherical models are deemed adequate for Mponeng. Normally the Lag distance should coincide with the sample spacing and the Lag tolerance is typically half the separation distance of the Variograms longest direction.

The Semi Variogram’s Sill is the distances and variability factor to the estimation process. The sill is generated from the Nugget = Cο. Spherical Component = C₁. Sill = Cο+C₁.

11.4.2Evaluation Parameters

The defined search ellipse adheres to the direction of the associated Semi-Variogram, as well as the range distances. The current minimum and maximum for VCR Measured Mineral Resource estimation, as well as the Indicated/Inferred Mineral Resource estimation, is variable per geological domain.


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The current minimum and maximum is 4 and 100 + 4 and 80 for the CLR Mineral Resource estimation, 6 and 20 for Indicated Mineral Resource estimation and 3 and 10 for the Inferred Mineral Resource estimation. For the search parameter files, the ellipsoid search is equivalent to the associate variogram angles.

11.4.3Gold Value Estimation

The gold value (cmg/t) estimation method used for local Measured Mineral Resource estimates is Ordinary Kriging and for local Indicated and Inferred Mineral Resource estimates is Simple Macro Kriging. The orientations and ranges of each geological domain's Semi-Variogram are used to determine the kriging search parameters, and the estimation parameters are also optimised. Estimates are generally kriged into 30m x 30m blocks for the Measured Mineral Resource from the point support data. The Indicated Mineral Resource is kriged into 60m x 60m block sizes. The Inferred Mineral Resource is estimated using the associated regularized variograms and kriging into 120m x 120m blocks. Any un-kriged areas in the inferred regions are then covered by global mean estimates.

The Measured Mineral Resource model is then tested on a Slope of Regression Estimation Confidence (“SR”) and merged with the Indicated Mineral Resource and Mineral Resource models to produce a combined kriged block model. The Measured Mineral Resource estimation confidence is calculated for the Measured Mineral Resource halo to have both geostatistical and geological historical confidence with the very erratic gold deposit. SR is not used for Indicated or Inferred Mineral Resource estimation since simple macro kriging is implemented.

Gold value (cmg/t), which factors in both the thickness of the reef (cm) and the grade (g/t), is the only variable estimated in large block sizes. The distribution of the VCR gold values is show in Figure 11-3 and the distribution of the gold values in the CLR is shown Figure 11-4. The channel width is estimated for all block sizes.

11.4.4Declustering

The declustering process has been carried out by using both the “THK” and “THN” in their known areas and then with a mixed data set into the unknown areas.

The point database is declustered into 60m x 60m (VCR Indicated Mineral Resource) and 120m x 120m (VCR Inferred Mineral Resource) block sizes and 60m x 60m (CLR Indicated Mineral Resource) and 120m x 120m (CLR Inferred Mineral Resource). The number of points contained inside each declustered block is of importance, as a regularised block containing only one sample point, for instance, cannot be considered a declustered value but rather a point support value. Therefore, so as not to over-estimate the declustered Semi-Variogram sill, a minimum required number of sample points contained in a regularised block needs to be declustered.

To determine how many sample points are required to decluster in a 60m x 60m and 120m x 120m block regularization, the regularization process is carried out sequentially starting with a minimum of one sample section up to a minimum of 40 sample sections.

The overall zonal block variance is calculated for each regularization run and plotted on an x-axis showing the number of samples. The block variance will decrease as more samples are used to obtain the block average and then begin to stabilize as additional samples make little difference to the regularized estimate. A minimum sample number is selected just before the stabilization of the variance is reached, as a compromise is reached between over estimation of block variance and losing too many regularised blocks for semi-variogram estimation. Note that this is only done for the cmg/t variable, as gold accumulation is the driving factor for estimation. Additionally, the curves generated by this procedure (called Leonard curves) are used for calculating the “MKNUG” field for simple macro kriging of the cmg/t.

Experimental declustered 60m x 60m and 120m x 120m Semi-Variograms are generated for each domain. However, some domains do not contain enough sampling information to obtain any meaningful declustered Semi-Variogram. In such case, declustered macro kriging cannot take place within the domain, and the zonal/global mean is then used to classify the Inferred Mineral Resource portion of the domain.

The minimum number of sample points needed within a declustered block is determined by the “Leonard Curve”.


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Figure 11-3: Distribution of the VCR Gold Value at Mponeng

Figure 11-4: Distribution of the CLR Gold Value at Mponeng and TauTona


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11.4.5Inferred Declustered Global Mean

The cmg/t global mean for each domain is calculated by declustering the zonal sampling data into 10m x 10m blocks, 30m x 30m blocks, 50m x 50m blocks, and so forth, up until 190m x 190m. The cmg/t arithmetic mean of each declustered block size is then calculated, and the overall minimum is then identified as the global mean. The channel width global mean is calculated by simply considering the channel width arithmetic mean of the zonal de-clustered data.

11.4.6Relative Density and Tonnage Calculation

The Relative Density currently used for tonnage calculation at Mponeng is an average of 2.71t/m3. Reef volume is determined by block area multiplied by the thickness estimate. The tonnage of each reef horizon is determined by multiplying the volume by the Relative Density.

11.4.7Model Validation

The QP validated the Mponeng Mineral Resource model using the following:

• visual comparisons with the raw drill hole data;

•comparisons of the raw drill hole data statistics with the model statistics;

•model volume; and

•visual assessment of the block model with drill hole intersections to ensure that the grades are locally honoured by the model.

The QP did not identify any critical errors in the block model.

11.5Mineral Resource Evaluation

The Mineral Resource estimate is reported in-situ within the Mponeng lease area (which now includes TauTona and Savuka), as determined through the analysis of the reasonable prospect for economic extraction by underground mining method. The cut-off value for the Mineral Resources is determined at 761cmg/t gold based on the economic assumptions presented in Table 11-2 at the effective date 30 June 2022. This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery assumptions.

Table 11-2: Harmony Economic Assumptions (30 June 2022)


Description	Unit	Value
Gold price	USD/oz	1,723
FX rate	ZAR:USD	15.35
Gold price	ZAR/kg	850,191
Plant recovery factor	%	97.84
Unit cost	ZAR/t	4,810
Notes:
1. Unit cost includes cash operating cost, royalty and ongoing development capital

11.6Mineral Resource Classification and Uncertainties

The Mponeng Mineral Resources have been classified into Measured, Indicated, and Inferred categories, according to the S-K 1300 definitions. The classification is based on drill hole spacing and geological confidence.


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The following drill hole spacings have been used:

•1,000m x 1,000m to upgrade to Inferred Mineral Resource;

•100m x 100m for Indicated Mineral Resource; and

•5m x 5m for Measured Mineral Resource (underground channel sampling).

The geological confidence criteria include confidence in the sedimentary facies and mineralisation model and confidence in the structural model. A structural model discount has been applied to both the VRC and CLR models to account for any unknown geological structures that cannot be adequately defined by the available geological information ahead of the mining faces. For the VCR a 3% has been applied for all categories. For the CLR, a 3% was applied on Measured.

The limit of the optimized 30m x 30m local Kriging determines the extent of the Measured Mineral Resource component of the Mineral Resource. The Indicated and Inferred Mineral Resource categories are determined by the Lower Limit percentage confidence.

For every macro block that is estimated, a 95% confidence lower and upper value is calculated for the estimate. The ratio of the 95% lower limit value to the estimated value (in real space) expressed as a percentage is the Lower Limit percentage confidence. The 95% lower limit value is used as this represents the risk in the estimated value (the 95% upper limit value represents the opportunity). The lower this ratio is the less confidence there is in the estimated value because the difference between the estimated mean and the lower limit becomes greater.

11.7Mineral Resource Estimate

The location of the VCR and CLR Mineral Resources in relation to the licence boundaries is presented in Figure 11-5 and Figure 11-6, respectively.

The Mineral Resource estimate for both the VCR at Mponeng and CLR remaining at TauTona is presented in Table 11-3 as at 30 June 2022, exclusive of Mineral Reserves. These estimates account for mining depletion recorded from 1 July 2021 to 30 June 2022.

The QP compiling the Mineral Resource estimates is Mr WH Olivier, who is Ore Reserve Manager at Mponeng, and Harmony employee.

Factors that may affect the Mineral Resource estimates include the following:

•gold price assumptions;

•exchange rate assumptions;

•operating and capital cost assumptions;

•gold recovery assumptions;

•geology-related risks; and

•operational risks.

It is important to note that the combined Measured and Indicated Mineral Resources, inclusive of Mineral Reserves, are carried forward to the Mineral Reserves conversion and subsequent LOM planning.


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Figure 11-5: Location of Mponeng VCR Mineral Resources

Figure 11-6: Location of Mponeng CLR Mineral Resources


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Table 11-3: Summary of the Mponeng Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	2.509	16.09	40,380
Indicated	18.335	13.96	255,945
Total / Ave. Measured + Indicated	20.844	14.22	296,324
Inferred	29.120	13.35	388,682
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	2.766	0.469	1.298
Indicated	20.211	0.407	8.229
Total / Ave. Measured + Indicated	22.976	0.415	9.527
Inferred	32.100	0.389	12.496
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr WH Olivier, who is Ore Reserve Manager at Mponeng, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 761cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.

11.8Mineral Resource Reconciliation

The combined Measured and Indicated Mineral Resource gold content estimate for 2022, exclusive of Mineral Reserves, increased by approximately 9%, from 8.71Moz gold as of June 2021 to 9.53Moz gold up to June 2022. The major difference in the reconciled Mineral Resources between June 2021 and June 2022 are the areas between current infrastructure and below current infrastructure which is on the foremost edge of the mining front and where new data is continually being generated as well as the re-categorisation of support pillars where applicable.

11.9Comment on Mineral Resource Estimates

In the opinion of the QP:

•methodologies applied in estimating the Mineral Resource are based on historical parameters;

•there is no known geological data that was not used that could materially influence the estimated quantity and quality of the Mineral Resource;

•the model for the Mineral Resource estimate is sound and it was not deemed necessary to consider alternative interpretations for the current Mineral Resource Statement.


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12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

The reported Mineral Resources and Mineral Reserves are derived through a business planning process and consideration by the Chief Operating Decision-Maker (“CODM”), identified as the CEO's office. The business planning process comprises multi-functional reviews inclusive of all mining, support and service departments that are involved in the verification of the inputs and the Modifying Factors. The CODM consists of various executive roles and responsibilities. These executives assess the profitability, the revenue and production costs. The CODM also considers capital expenditure, gold production and tonnes milled when assessing the overall economic sustainability.

12.1Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

All reported Mineral Resources and Mineral Reserves originate in situ from the underground tabular ore bodies at Mponeng. The Mineral Reserves are considered based on several factors, including:

•the latest geological structure and associated Mineral Resource estimation models that constrain the layout for the mine design and LOM planning;

•regional rock engineering stability pillars which are used for mining and geological support. In addition, the Mineral Reserves do not include pillar mining, mining of remnant areas, reclamation of broken ore out of old areas, tailings, or any other source;

•identified mining areas referred to as Above 120 Level, Phase 1 Below 120 Level, and the remainder of the TauTona Eastern Block;

•the mining methodologies. At Mponeng the Sequential Grid Mining (“SGM”) method is preferred, taking into consideration the mining and rock engineering design guidelines. More details on the mine design and layout can be found in Section 13;

•the Mineral Reserves cater for allowances in dilution sources and relevant Modifying Factors. Dilution of the ore body is predominantly attributed to the differences in stoping width and channel width being mined, and 1% of development waste declared to reef. More details on the Modifying Factors can be found in Table 12-1; and

•Measured and Indicated Mineral Resource estimates are reported exclusive of the portion converted to Mineral Reserves. Only Measured and Indicated Mineral Resources are used to derive the Mineral Reserves.

Both the Mineral Resources and Mineral Reserves are modelled in the DatamineTM Studio UG mining software. A macros system is generated, linked to a customised scripting menu that allows for professional and easy management of the data and the building of geostatistical models. The Mineral Resources form the basis of identifying the mineable areas.

These mineable areas are then planned, as per Mponeng Mine design parameters and layout (Section 13), using DeswikTM (Version 3). The Modifying Factors are then computed in Microsoft Excel in order attain the Mineral Reserve Statement. Rounding of figures may result in minor computational discrepancies in the Mineral Resource and Mineral Reserve tabulations. No other sources of information are published as part of the Mineral Reserves for Mponeng.

The location of the VCR and CLR Mineral Reserves in relation to the licence boundaries is presented in Figure 12-1 and Figure 12-2, respectively.


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Figure 12-1: Location of Mponeng VCR Mineral Reserves

Figure 12-2: Location of Mponeng CLR Mineral Reserves


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12.2Modifying Factors

Table 12-1 presents a summary of the Modifying Factors used to convert the Mineral Resource to the Mineral Reserve for Mponeng. The Modifying Factors are consistent with the modelling, planning and computing estimates used in determining the Mineral Reserves, which are also consistent with historical performance. Plant recovery as shown in Table 12-1, is also consistent with the processing and recovery methods as defined in Section 14.

Table 12-1: Mponeng Modifying Factors Used for Mineral Reserve Determination


Modifying Factor	Unit	Value
Relative Density	t/m³	2.71
Stoping width	cm	149.7
Gully	%	7.17
Off Reef	%	5.62
Waste to Reef	%	3.02
Flushing tons	%	6.18
Discrepancy	%	24.38
Mine Call Factor	%	80.59
Plant Recover Factor	%	97.84
Mine Recover Factor	%	78.85
Plant Call Factor	%	100.00
Mineral Reserve cut-off	cmg/t	971

12.3Mineral Reserve Estimate

The QP compiling the Mineral Reserve estimates is Mr WH Olivier, who is Ore Reserve Manager at Mponeng, and Harmony employee.The reported Mineral Reserves as at 30 June 2022 is 6.59Mt of milled ore containing 1.855Moz and comprise of 32.2% Proved Reserves and 67.8% are Probable Reserves. Mponeng Mineral Reserves are presented in Table 12-2, as at 30 June 2022.


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Table 12-2: Summary of the Mponeng Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	2.298	8.09	18,580
Probable	4.290	9.12	39,122
Total (Proved + Probable)	6.587	8.76	57,701
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	2.533	0.236	0.597
Probable	4.728	0.266	1.258
Total (Proved + Probable)	7.261	0.255	1.855
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr WH Olivier, who is the Mponeng Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. Mineral Reserves are reported using a cut-off grade of 971cmg/t determined using a gold price of USD1,546/oz gold.

12.4Mineral Reserve Reconciliation

The declared Mineral Reserve decreased from 2.104Moz as at 30 June 2021 to 1.855Moz as at 30 June 2022. The key variances are noted as follows:

•depletions: 0.206Moz;

•increase in Mineral Reserves due to changes in the mining model attributable to grade: 0.004Moz;

•decrease in Mineral Reserves due to changes in the mining model attributable to design: 0.052Moz;

•addition of reserves due to Modifying Factors: 0.007Moz; and

•decrease in reserves due to “Other”: 0.002Moz.

12.5Commentary on Mineral Reserve Estimate

The reef within the Mponeng lease area has been mined since 1986. The declared Mineral Reserves takes into consideration all Modifying Factors. The Mineral Reserve is 6.587Mt of milled ore containing 1.855Moz as at 30 June 2022. The mine is currently mining profitably, and the Mineral Reserve estimates show positive cash flows. Silver or any other by-products that are recovered as part of the refining process, however, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimates.

There are no obvious material risks that could have significant effect on the Mineral Reserves.


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13Mining Method

Section 229.601(b)(96) (13) (i-v)

Mponeng is a deep level underground gold mine currently operating at depths ranging between 3,160m and 3,740m BMD, and currently the deepest mine in the world with development at 3,841m BMD. Potential future mining operations at Mponeng are expected to deepen the shaft bottom to 4,227m BMD. The reef portion currently being mined at Mponeng is accessible between 3,000 – 3,600m BMD.

There are two mining methods in practise at Mponeng. Historically, longwall mining was practiced at Mponeng until the breast mining method was used, aimed at reducing the occurrence of large seismic events. However, this has evolved to the SGM method with backfill support. The SGM method makes use of dip pillars and reduced mining spans with pre-developed tunnels, aimed at further control of stresses experienced in rock movement. While Mponeng’s business plan is based primarily on the SGM method, there are sections of the mine that are still operating using the breast mining method. The mining sequence is a V-shaped configuration, colloquially referred to as the “inverted Christmas tree”. An underhand face configuration is adopted when mining towards the west and an overhand face configuration when mining towards the east. An example of the mining sequence used at Mponeng is shown in Figure 13-1.

Both breast mining and SGM mining methods are suitable for underground, narrow reef mining. The common feature of breast mining and SGM is the layout of the primary and secondary development (see schematic layout in Figure 13-2). Primary development is done off-reef (in waste rock), while secondary development is done on-reef (in the mineralised zone). In primary development, horizontal haulages are developed from the vertical shaft, extending to the extremities of the mining level. Inter-level spacing is the perpendicular distance between two consecutive level stations underground. Further development is done at set intervals along the haulages towards the mineralised zones in the form of crosscuts. For secondary development, an inclined excavation that connects two levels is established, referred to a raise or winze, depending on the upwards or downwards direction of the development.

The use of crush pillars is appropriate at shallower depths, but for the current ultra-deep workings, crush pillars become a source of seismicity and hence the gradual migration to the SGM method. A key feature of the SGM mine design is that crush pillars are replaced by non-crushing stabilizing and regional pillars as shown in Figure 13-1. During the Mponeng Mine design process, the pillar dimensions for a particular layout and depth are determined using the assumptions and model created by the geotechnical team. More details of the geotechnical and geohydrological considerations are found in Section 13.5.

13.1SGM

To manage the seismic risk associated with ultra-deep level mining, the SGM is predominantly used in the current mining operations for both the VCR and CLR horizons, and for planning the LOM extension projects. The SGM is employed for this deep mining approach and offers various advantages, the critical one being increased safety. As part of the strategy to maximise flexibility and mitigate the risks associated with the production plan, development is undertaken 24 months ahead of mining. A noticeable characteristic of the SGM method is that mining from the raises is advanced in only one direction at a time, which is directed towards the stabilizing or regional pillars. At Mponeng, SGM works in conjunction with backfill support which allows this mining method to be more effective. This SGM mining sequence also eliminates the creation of remnant pillars (a feature in breast mining) reducing the risk of seismicity. Therefore, the advantages offered by the SGM method make it the preferred mining method, especially when considering the current operating depths at Mponeng.


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Figure 13-1: Plan Showing the SGM Sequence at Mponeng


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13.2Mine design

The mine design strategy aims at maximising the safe extraction of ore, while minimising the risk of geotechnical failures, which can result in operational disruptions and dangerous working conditions. Both the VCR and CLR horizons are considered for the Mponeng Mine design and planning. A common parameter that varies in mining is the geology of the area, which is the most critical parameter. Both, the CLR and VCR reef horizons have been subject to faulting and intrusions by igneous dykes and sills that cut across the reefs. The most significant form of control at Mponeng for rockfalls and rockbursts is the backfill support. Backfill is considered as a regional support system. Ledged raises are supported by a combination of packs and backfill ribs, which keeps the central raise line much more stable during the stoping operations.

Reefs are accessed through a vertical twin shaft system with supporting sub-vertical shafts, and a decline shaft system. Section 15 provides more details of the surface and underground infrastructural layout supporting Mponeng mining operations. Mining production is accessed through underground excavations, developed as haulages and cross cuts. Majority of Mponeng’s production is currently from the VCR between 113 level and 126 level. The inter-level spacing between 109 level and 113 level is 125m, whereas the spacing between 113 level, 116 level and 120 level is 100m. In addition, the CLR, which is in the TauTona lease area, contributes to mining production, and is accessed through Mponeng’s underground haulage development.

Development, with respect to the VCR horizon, is predominantly through the hanging wall, for levels above the 109 level, with the exception of the 99 level development which is in the footwall. The access haulages below 109 level have all been developed in the footwall. The haulage development for the CLR is also positioned in the footwall. The presence of large geological structures within the raise line can influence these developments. The mine design parameters for the VCR and CLR horizons are noted in Table 13-1. As part of primary development, a crosscut is developed in the direction of the mine workings. A plan view of a typical footwall crosscut is shown in Figure 13-2.

The section view of the inclined secondary development, which is used to access the reef contact, and advanced from the position of respective crosscuts is depicted in Figure 13-3. Ore is extracted from stoping panels established from the inclined development. The typical stoping panel dimensions are a panel length of 27m and a stoping width of 1.2m for the VCR horizon and 1.6m for the CLR horizon.


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Figure 13-2: Plan view of a Typical Footwall Crosscut at Mponeng

Figure 13-3: Section of a Typical Footwall Crosscut at Mponeng


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Figure 13-4: Mponeng Mine Outline


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13.2.1Mine Design Parameters

Mine design is done internally, with the mine designs for the VCR and CLR horizons done separately, using DeswikTM software (Version 3). The geological models, and the geotechnical parameters formulated by the Rock Engineers, are used as a basis of the mine planning process. The mine design parameters used for the VCR and CLR horizons are shown in Table 13-1. The stopes are mined from the centre raise line westwards and eastwards, one direction at a time, towards the stabilizing pillars (Figure 13-1). Additional support is provided using bracket pillars, to ensure safety around major geological features.

Table 13-1: Key Mine Design Parameters


Parameter	Unit	VCR	CLR
Regional Stability
Dip stabilizing pillar dimensions
Strike span	m	180	180
Dip span	m	30	40
Strike stability pillar spacing¹	m	100	100
Access haulages middling to reef	m	85 - 150	70
Primary Development
Advance	m/month	50	50
Secondary Development
Advance	m/month	27.5	27.5
Stoping Parameters
Middling to reef (VCR)	m	85 - 150
Middling - footwall placement (CLR)	m		70
Economic Parameters
Cut-off grade (planning)	cmg/t	971	971
Notes: 1. Pillar spacing is measured skin to skin.

13.2.2Geohydrological and Seismic Monitoring

Approximately 85% of the Mponeng Mine lease area lies in the Oberholzer Compartment. These compartments have been dewatered continuously since the inception of mining, to prevent the inflow of groundwater into the mining areas. In addition, subsurface water migrates along the faults and dykes in the mining areas, and water ingress occurs at the sub-outcrop of the VCR. Further, water and gas can infiltrate the mining operations through open fissures, as well as through brittle rock occurrences underground. Water and gas usually occur in small quantities throughout the mine.

To fully understand the nature and modes of structural control of gas, water and seismicity at Mponeng’s depth, an integration of different datasets such as borehole, gas and seismic compositional data is required. The mine monitors water levels through vertical boreholes strategically located. Cover drilling is also done ahead of development to identify water and gas intersections in advance. Apart from drilling, water is also identified during primary and secondary development. In the event of major water intersections, a water sealing plan is initiated. Most of the mining areas have been sealed off, and in some cases hoses and pipes are installed which diverts water to sumps, to be eventually pumped out to surface.

Methane gas pathways are identified during geological mapping and investigation of seismic data. Attributes based on structural interpretation, give rise to the identification and understanding of methane gas migration pathways. The identification of this structural architecture is critical for the mine as it provides a better understanding of these pathways. Any risks identified from the presence of gas is controlled though the use of Mponeng’s ventilation and refrigeration systems. The Geology department maintains detailed electronic records of all water and gas intersections at the operations.

Seismic monitoring at Mponeng is done using uniaxial and triaxial sensors, which measure seismic activity on surface and underground. The sensors are placed strategically based on Rock Engineering recommendations. In addition to the monitoring done through the systems that are in place, visual monitoring of the mining excavations is done by the Rock Engineering department, mainly focusing on the conditions of the pillars. While surface monitoring seeks to identify and interpret any ground motion on the Earth’s surface.


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13.3Mine Plan Development and Life of Mine (“LOM”) Schedule

At Mponeng, the LOM plan and scheduling originates with the use of the Mineral Reserves model, which is modelled at a 971cmg/t cut-off grade. The 6.59Mt of Mineral Reserves are included in the LOM plan and are fully accessible through Mponeng’s existing infrastructure. There are Mineral Resources located beyond the current infrastructure that are not included in the Mineral Reserve estimates, and as a result are also not included in the LOM plan. The mining rates used in determining the LOM plan are based on the current and expected operational performance, notwithstanding any unforeseen underground mining constraints. The remaining LOM for the operations is planned for 8 years, with a planned mining rate averaging at approximately 987ktpa (milled tons) over the LOM period. The extent of the Mponeng LOM plan is shown in Figure 13 4.

13.4Geotechnical and Geohydrological Considerations

Apart from the geotechnical risks that can be caused by the existence of geological structures and the presence of water and gas, there is also a seismicity risk at Mponeng due to the depth of the current mining operations. Mponeng maintains a working geotechnical model, to manage and control seismicity risk, consisting of primary data sourced from seismometers, reinforced with data inputs from geohydrological and other seismic monitoring processes. The geotechnical model for Mponeng takes the latest geological structural model and the selected mining method into account to design a suitable pillar layout.

The purpose of the pillar designs, regardless of the pillar type, is to customize them to the prevailing mining conditions, with the objective of making the mine design safe, practical, easy to implement, and profitable. These pillars include dip stabilizing-, bracket- and strike pillars. The details of the pillar design can be found in Table 13 1. The dimensions depicted for the pillars are standard and are adjusted depending on planned bracketing of geological structures, backfilling or in some circumstances, if patches of low value reef have been encountered. The Rock Engineers measure the release of seismic energy known as the energy release rate to establish backfilling support requirements and pillar design limits. Studies at Mponeng Mine have shown a positive correlation with the SGM method in areas mined, with backfill support.

This model is also used to manage and monitor the occurrence of ground water and gas intersections at the mine. There is a material risk associated with flooding and gas explosions at the mine, in the event of an unforeseen influx of uncontrolled water or gas, from within the mining operations or from neighbouring mining operations. The rock fall mitigation strategy is detailed and managed through the Mining and Rock engineering Code of Practice (COP) and is communicated, adhered to, and monitored by both the mine’s technical services and operational teams.

13.5Mining Operations

Mponeng Mine has been operating economically since inception and is operating within well-defined infrastructure. The most recent development at Mponeng, is the mine’s deepening project which is the decline shaft system extending to down to the 127 level. The main source of ore from the mining production at Mponeng is from the VCR, supported by limited mining from the CLR, in the TauTona portion of the mine. The mined ore is processed at the Mponeng mineral processing plant, where the design capacity of the plant exceeds the maximum planned production volume. This spare capacity is used to process marginal ore, that is either sourced from Kusasalethu or Mponeng, from the low-grade stockpile located on surface. The processed marginal ore material is used as a secondary support function, in the form of backfill, for the underground excavations.

13.5.1Mining Rates

The forecasted mining production rates for Mponeng are the tonnages of the LOM plan which considers the planned and available working areas, inclusive of the mines current infrastructure capacity. The annual forecasted tonnages and gold produced for the LOM is shown in Figure 13-5 and Figure 13-6, respectively.


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Figure 13-5: Graph of Mponeng LOM Plan - Tonnes and Grade

Figure 13-6: Graph of Mponeng LOM Plan – Gold Produced (kg)


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13.5.2Mining Equipment and Machinery

There are various machinery and equipment used at Mponeng Mine, depending on the type of mining or development activity. The following equipment can be found at the frontline of mining production:

•haulages and associated development: Hydro-powered (“HPE”) drill rigs are used at Mponeng for underground excavations and tunnelling. These rigs are preferred as they are versatile and capable of angular, horizontal, and vertical drilling;

•production drilling in stopes: There are 2 types of drilled holes adopted in a stoping panel at Mponeng, namely production drilling and pre-conditioned drilling. Pre-conditioning is a methodology aimed at transferring the stresses away from the stope face, therefore reducing the potential for face burst damage. Pre-conditioned holes are drilled longer than production holes and are blasted with the production round. Equipment used for this type of drilling is compressed air hand-held drills;

•material movement: Mponeng have recently investigated the movement of material through an Electric Monorail Transport System (“EMTS”). The EMTS was partially adopted at Mponeng narrow vein, decline operations due to their consistent maintenance of speed in steep and changing gradients, while allowing for varying weight bearing capacities, works as efficiently in undulating floor conditions, and is almost impossible to de-rail due to the L-shaped sliding beam design; and

•ancillary equipment: Small articulated dump trucks, graders, and crawler mounted bulldozers for dump, waste and marginal ore movement also support the Mponeng Mine operations.

13.5.3Grade and Dilution Control

The selected SGM mining method is planned and designed to better support recovered grade because of the improved selectivity, flexibility, and reduced off-reef mining. Ore grade and dilution control is done using a Quality Index monitoring tool. This Quality Index was developed at Mponeng and considers key parameters including Mine Call Factor, stoping width, proportion of ore lock-up, and an on-reef index. During the mine design and planning process, external dilution control is implemented by applying an adapted mine recovery factor. The Mine Planning department performs critical raise line monitoring and ensures the ratio of the combined ore mined is withing grade tolerance limits.

Operationally, grade and dilution control is mostly achieved through improved drilling and blasting practices. Drilling accuracy is achieved by holes that are drilled parallel, aimed at being correctly burdened and that are within the stoping limits. This ensures consistent and economic rock breaking, without dilution. Mponeng also adopts electronic blasting technology consisting of an integrated electronic system, which allows for precision timing and improved control of rock breaking. This technique controls stoping width and protects the integrity of the footwall and hanging wall, aimed at minimising dilution.

13.5.4Ore transport

The blasted ore from the stoping panels is moved with winch-operated scrapers along gullies to ore passes where it gravitates down to the loading boxes in the footwall cross-cuts below the stopes. The ore is discharged into rail hoppers and transported, via front-driven locomotives, to dedicated inter-level transfer systems that gravity feed to the main silos on 121 level. The ore is hoisted up the sub-vertical shaft and transferred to the main shaft rock system and silos. Once hoisted up the main vertical shaft to surface, the ore is transported to the processing plant via conveyor belt.


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13.5.5Mining Personnel

Mponeng Mine is labour intensive. Holistically, the mine is supported by approximately 5,600 mine-employed personnel and approximately 3,500 labour personnel are in direct production. The underground mining operations uses an 11-hour shift system, operating a 2-shift cycle per day. The mining personnel, operating on this shift cycle, comprise of workers performing development, stoping, and other additional tasks. These personnel are sub-divided and organised into support, breaking (also referred to as drill and blast), and cleaning crews (Figure 13-7).

The supporting and breaking crew complete tasks during the day shift, while cleaning is done during the night shift. A development crew is responsible for one development end at a time and operate in the mining cycle as shown in Table 13 2.

Table 13-2: Mining Personnel Functions


Mining cycle day and shift	Crew No.	Function of Mining Crew
Day 1 - Dayshift	E2	Support
Day 1 - Dayshift	E1	Break
Day 1 - Nightshift	E1	Clean
Day 2 - Dayshift	E1	Support
Day 2 - Dayshift	E2	Break
Day 2 - Nightshift	E2	Clean
Day 3 - Dayshift	E2	Support
Day 3 - Dayshift	E1	Break
Day 3 - Nightshift	E1	Clean
Day 4 - Dayshift	E1	Support
Day 4 - Dayshift	E2	Break
Day 4 - Nightshift	E2	Clean
Notes:
1. See crew no. (E1 and E2), and function of mining crew (support, break, clean) depicted in Figure 13-7.

The 11-hour cycle mining shifts implemented aim at supporting crews in their efforts to complete the mining cycles found in Figure 13-7, and as explained in Table 13-2, as well other additional work, such as:

•pre-conditioning;

•support functions for mining gullies;

•backfill support;

•maintaining efficient spacing on strike; and

•in-stope support and blasting functions

Mponeng is committed to continuous improvement projects aimed at efficient extraction from workplaces, through optimising personnel time and function. Over the past five years Mponeng has achieved a 65% increase in the average m2/crew/month. Currently on an approximate average, typical mining crews can attain an advance of 14,000m2/month, with almost 45 mining crews required for this advance.

13.6Commentary on Mining Method

The SGM mining method is the prevalent mining method at Mponeng Mine. This mining method works well with the implementation of backfill support. The use of backfill displays results with lower levels of energy release in relation to other mining methods. Low energy release is known to control the reduction in seismic events, and rockbursts or rockfalls. The mine design, planning and scheduling for the mine is developed using the DatamineTM and DeswikTM (Version 3) software, respectively, considering the geotechnical model and related parameters. The main geotechnical and geohydrological risks at Mponeng include the presence of gas, ground water and seismicity, which are managed through the integrated monitoring systems, and incorporated into working mining models that inform daily mine planning decision-making. The mining rates, machinery and equipment, ore transport, grade and dilution control, and labour resourcing and optimisation are driven by the mine schedule and continuous improvement initiatives on-site.


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Figure 13-7: Mponeng Cycle Mining and Supporting Crew Functions


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14Processing and Recovery Methods

Section 229.601(b)(96) (14) (i-iv)

Mponeng's gold processing facility has been in operation since 1986. The technology used to process the gold-bearing ore is well established and is suitable for the style of mineralisation (VCR and CLR ore).

14.1Mineral Processing Description

All mined ore is treated and smelted at Mponeng's gold plant as depicted in Figure 14-1. The ore is initially reduced in size by crushing followed by semi-autogenous milling after which a conventional gold leach process (cyanidation), incorporating liquid oxygen injection is applied. The cyanidation process is one of the most utilised methods for the recovery of gold from auriferous ores. The use of cyanide leaching for gold recovery is based on gold’s properties, mainly its solubility (ability to dissolve) in cyanide solutions. Once the gold is dissolved into the cyanide solution it has a higher ability to adsorb (attach) onto activated carbon through the application of carbon in pulp (“CIP”) technology.

The loaded carbon then enters the elution columns, which are high pressure vessels that circulate the loaded carbon extracting the gold. The gold will “deabsorb” from the activated carbon and attach onto stainless-steel wool by means of electrowinning. The CIP circuit makes use of gravity flow of slime between the consecutive counter-flow stages in order to recover recirculate the activated carbon back into the system. Following this process, the cathode steel wool is smelted after drying in the calcining ovens. The bullion (gold) will then be dispatched to Rand Refinery for final refining, with silver as a by-product.

14.2Plant Throughput, Design, Equipment Characteristics and Specifications

The milled ore from Mponeng follows a standard cyanide leach, CIP and electrowinning process in order to extract the gold bullion. The current capacity of the plant is designed to process 95tph ore (Table 14-1). The plant is operating below its designed throughput capacity and has shown its ability to produce the forecasted ounces of gold at said capacity (Table 14-2).

Table 14-1: Key Equipment Specifications at Mponeng Gold Plant


Equipment	Unit	Capacity
Mill Silo (per silo – 3 silos)	Volume / silo (m3)	3,478
	Tonnes	3,500
ROM Mill (per mill – 3 mills)	Volume / tank (m3)	127
Leach (10 leach tanks)	Dry Tonnes / tank	1,011
CIP (8 tanks)	Volume / tank (m3)	231
	Dry Tonnes / tank (t)	159
Acid Wash (2 tanks)	Volume / tank (m3)	10.1
	Carbon (t)	5
	Cycle time (hr)	3
Elution (3 tanks)	Volume / tank (m3)	11.3
	Carbon (t)	5
	Cycle time (hr)	12
Thickener (3 thickeners)	Volume / thickener (m3)	1,590
	Dry Tonnes (t)	5,620

Table 14-2: Design Throughput Versus Actual Throughput at Mponeng Gold Plant


	Throughput
Equipment	Design (t/hr)	Actual (t/hr)
Mill	95	75
Leach	300	223
CIP	300	223
Thickener	160	110


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Figure 14-1: Schematic Flow Diagram of the Metallurgical Process


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14.3Energy, Water, Process Material and Personnel Requirements

Since the introduction of the McArthur/Forrest process in 1890, the leaching of Witwatersrand gold ores has been carried out in alkaline cyanide solutions. The process requires significant amounts of reagents which can be summarised in Table 14-3.

Table 14-3: Consumables


Equipment	Unit	Value
Steel Balls	Steel balls / annum	550
Lime	tpm	67,500
Flocculant	tpm	3,000
Cyanide	tpm	51,750
Carbon	tpm	6,000

Table 14-4: Leaching Process Material and Properties


Process Requirements			Properties
pH			10.5 - 11.5 (controlled by lime addition)
Cyanide			180 - 300ppm as 100% NaCN
Leaching Time			24 – 40 hours
Oxygen			Air or oxygen sparged, 5 - 25ppm O2
Cyanide Relative Density			1.38 - 1.45, 40-50% solids at SG 2.7

14.4Commentary on the Processing and Recovery Methods

The metallurgical process is a well-tested technology which has been in operation at the mine since 1986 processing VCR and CLR ore. Recoveries used in the business plan were based on historic performance. The methodology applied considered the historical metallurgical recovery (18-month period) for the relevant ore source. The actual monthly head grades were reviewed and the relationship between the head grade and recovery were used as base for the Business Plan (BP) 2022/23 metallurgical recoveries, taking into consideration the relevant forecast head grades (Figure 14-2 and Figure 14-3).


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Figure 14-2: Graph of VCR Historical Recovery Factor (18 months actual)

Figure 14-3: Graph of CLR Historical Recovery Factor (17 months actual)


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15Infrastructure

Section 229.601(b)(96) (15)

Mponeng is an established operation and as a result, all the current surface and underground infrastructure are satisfactory for the declared LOM requirements, as detailed in the Mineral Reserves statement (Section 12.3) and supported by the mine plan (Section 13.5.1). Mponeng is accessible via the national and provincial roads (Figure 3-1). The general layout of Mponeng Mine infrastructure in relation to the neighbouring Harmony mines, TauTona and Savuka is displayed in Figure 15-1.

15.1Surface Infrastructure

15.1.1Ore and Waste Rock Storage Facilities

Ore mined at Mponeng is classified as gold bearing ore and marginal ore. The gold bearing ore is directly processed at the mineral processing plant, situated adjacent to the security, and change house (Figure 15-2). More details of the infrastructure supporting the mineral processing operation can be found in Section 14.1. Marginal ore and waste are transported and deposited on the marginal ore facility, adjacent to the plant (Figure 15-2). The design capacity of the Mponeng plant exceeds the current maximum planned production volume. Therefore, the plants spare capacity is used to process the marginal ore which ensures sufficient backfill material supply to the operation. Waste mining at Mponeng is insignificant, as reflected in the planned LOM. The existing physical extent on site for this waste dumping is sufficient.

15.1.2Tailings Storage Facilities

The tailings storage facility (“TSF”) is located to the southwestern section of the Mponeng Mine lease area as shown in Figure 15-1. The TSF is currently active and is owned and operated by Mponeng. All waste material from the mineral processing activities at Mponeng is accumulated at this TSF. The initial TSF operations began in 1990. Incidental ore recovered since the inception of development and mining in 1986, until the commissioning of the tailings facility, was transported and processed via the Savuka infrastructure system. More details of the history of the TSF infrastructure can be found in Section 5.

The TSF site has full engineering records including design, construction, operation, and maintenance plans. The design height is 41m and is engineered in an upstream raising method, divided into three compartments; namely Compartment 1, Compartment 2 and Lower Compartment. The designed volume is 50.2Mm3. A feasibility study was done by independent tailings engineer company (Jones & Wagener Engineering and Environmental Consultants) in 2018 as part of the LOM extension project. The study indicated that the Mponeng TSF has sufficient capacity until 2032 at the current LOM plan and production rate.

An analysis of the downstream impact on communities, ecosystems, and critical infrastructure in the event of catastrophic failure is complete. A closure plan, typically extending over a 2-year period, to assess the TSF against the impact of extreme weather events because of climate change is also in place. The facility has never failed stability certifications and has no notable stability concerns. There is also a long-term monitoring and closure plan in progress. The TSF adheres to the SANS 10286 governed classification system and is monitored by internal engineers, supported by external engineering specialists.

15.1.3Power and Electrical

Mponeng Mine power supply is designed to satisfy the planned LOM production and service requirements. Main power supply is managed and distributed via electrical sub-stations located on site, as represented in Figure 15-2.

The operation has capacity to supply 220MW, however currently only 110MW is utilised. No risks are identified related to continued power supply.


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Figure 15-1: Mponeng Surface Mine Layout and Infrastructure


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Figure 15-2: Mponeng Mine Detailed Surface Infrastructure
ource: Google Earth Image Date: March 2021


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15.1.4Water Usage

Mponeng Mine sends underground approximately 32 ML of cold water (3°C) per day for Bulk Air cooling, Spot air cooling and Mining purposes. In addition to this, the mine produces approximately 5,000ton (5ML) of Ice per day, which is send to the same dam for the same purposes.

Each day the mine dewaters approximately 48ML of water with the balance of water coming from adjacent Savuka Mine and TauTona mines. Mponeng uses approximately 550,000kWh per day to pump water from underground at an average cost of ZAR791,340 per day. The amount of energy used to cool the water largely depend on season with warm months utilising approximately 475,000kWh per day at a cost of ZAR500,000 per day.

15.2Underground Infrastructure and Shafts

Mponeng Mine existing shaft headgear and underground infrastructure used to access the portion of the reef, which is located between 3,000m and 3,600m BMD is schematically depicted in Figure 15-3. The underground workings are accessed and mined via three shaft systems, namely two vertical shaft systems and a decline shaft system. The main vertical shaft system comprises two shafts, which extends from surface to 85 level. In addition, there are two sub-vertical shafts which emanate on 81 level and extend to 121 level. A decline shaft system connects the 121 level to the 127 level.

Majority of the mining production is currently on the VCR. This mining area, known as the Phase 1 below 120 level, is located between the 113 level and the 126 level, and is primarily serviced by the decline shaft system. The remainder of the CLR reef belonging to the TauTona Eastern Block, is accessible via the 109 level.

All movement is systematically facilitated by respective man and material tramming sections. Underground broken rock handling is track-bound via locomotive material cars. These movements are supported by traffic management systems, including control room monitoring, decline logistics control, etc. Rock is transferred via gravity feed to the main silo infrastructure, located on 121 level. Rock from the 121 level silos is transferred to surface by means of the sub-shaft and vertical shaft systems.

15.3Commentary on Infrastructure

The operational infrastructure including road, rail, offices, security services, water and power supply is adequate, and is shared with the Harmony operations in the relevant areas. Operations are powered by electricity from Eskom. Overall, Mponeng is well-established with sufficient logistical and infrastructure support for the existing and planned mining operations.


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Figure 15-3: Mponeng Mine Shaft and Underground Infrastructure


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16Market Studies

Section 229.601(b)(96) (16) (i-ii)

Gold is traded in a variety of markets/exchanges both in physical form through over the counter (“OTC”) markets, bullion banks and metal exchanges etc., and through passive investments such as exchange traded funds (“ETF’s”), which are based on gold prices and units representing physical gold which may be in paper or dematerialised form. Demand is driven by the jewellery market, bar and coin, use in technology, ETF’s and other financial products, and by central banks. An overview of the gold market is given in the following sections based mainly on data from the World Gold Council and GoldHub websites.

16.1Market Overview

16.2Global Production and Supply

Gold production and supply is sourced from existing mining operations, new mines and recycling.

16.2.1New Mine Production

16.2.2Recycling

16.3Global Consumption and Demand

16.3.1Jewellery


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16.3.2Investment

16.3.3Currency

16.4Gold Price

16.4.1Historical Gold Price

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

16.4.2Forecast Gold Price

The gold price forecast of USD1,546/oz is conservative if corroborated against a long-term broker consensus gold price outlook (Figure 16 2).


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Figure 16-1: Graph of Annual Gold Price History – ZAR/kg

Figure 16-2: Graph of Consensus View of Forecast Gold Price


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16.4.3Harmony Group Gold Hedging Policy

Harmony has a hedging policy which is managed and executed at Group treasury level on-behalf of its operating entities. The key features of the hedging programme are as follows:

•the policy provides for hedging (or forward selling) up to a maximum of 20% of expected gold production for a rolling 24-month period;

•the policy has no minimum quantity that should be hedged, and if an attractive margin above cost cannot be achieved (i.e., in a low gold price environment) then no hedges are entered into;

•Harmony enters into ZAR-denominated gold hedges for its South African operations (for the non-South African assets it enters into USD-denominated hedges);

•Mponeng does not enter into hedges in its own name but delivers bullion to Rand Refinery for refining on behalf of Harmony. Rand Refinery is one of the world’s largest single-site precious metals refining and smelting complex in the world. Rand Refinery refine all of Harmony’s gold to at least 99.5% purity, and acting as agent, sells the gold on the daily spot London fixing price and make payment to the Harmony two days later;

•Mponeng does its mine planning and financial forecasts based on the estimated future gold price provided by the Group treasury, but its year-end actual financial results reflect the received gold price inclusive of the benefit of the hedging programme. Therefore, in theory, Mponeng receives a hedged gold price for a maximum of 20% of its gold sales with the balance attracting the spot price.

16.5Commentary on Market Studies


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16.6Material Contracts

As with all major businesses, Harmony and Mponeng enters into a multitude of vendor agreements for the provisions of supplies and services. These agreements are entered into on a competitive basis and typically are of a medium-term duration all with clauses providing for periodic updating of pricing, annual (or other) renewal or termination.

Harmony has contractual vendor agreements with various service providers and suppliers. The most significant of these contracts currently in place to support the Mponeng operation are listed in Table 16-1.

Table 16-1: Material Contracts


Vendor Name			Nature of Service /Supply
Phakamisa Hard Rock Mining (Pty) Ltd.			Mining – load and haul
Shomene 1 cc			Earth moving equipment hire
Stefanutti Stocks (Pty) Ltd.			Re-mining of Savuka TSF
Rand Refinery (Pty) Ltd.			Refining Cost
Eskom			Power


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17Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Section 229.601(b)(96) (17) (i-vii)

The South African Government has an extensive legal framework within which mining, environmental and social aspects of the industry are managed. Harmony and its Mponeng operation is primarily regulated and managed by certain principal Acts (as listed in Section 17.3) as well as corporate policies, management systems and certain industry-wide guidelines, including:

•Energy Efficiency and Climate Change Policy;

•Environmental Policy;

•Harmony Water Management Strategy;

•Biodiversity and Rehabilitation Position Statement;

•Socio-Economic Transformation Policy; and

•Corporate Social Responsibility Policy.

17.1Results of Environmental Studies

Mponeng has prepared multiple Environmental Impact Assessments (“EIA”) for regulatory approval, which under the current legal framework, require stakeholder engagement. The most recent EIA was undertaken in 2012 as part of the application for environmental authorisation for the construction of a 62,000m³ pollution control dam and associated infrastructure. The EIA required the involvement of certain specialist studies (namely: heritage, biodiversity and ecology, geotechnical and agricultural assessment) to assess the potential impacts of the project on the receiving environment.

The results of the studies indicated that the pollution control dam would have an impact on air, soil, and water. The measures proposed in the EIA and EMPR were considered appropriate to adequately mitigate the impacts to acceptable levels. The Environmental Authorisation (Gaut:002/11-12/E0263) was granted on this basis by the Gauteng Department of Agriculture and Rural Development (“GDARD”) In November 2013.

Harmony is committed to maintaining good relationships with regulatory authorities, industries, communities, business partners and surrounding stakeholders.

17.2Waste and Tailings Disposal, Monitoring & Water Management

The primary materials consumed in conducting mining activities and processes include the rock (ore and waste) together with liquefied petroleum gas, grease, cyanide and other chemical, fuels and lubricating and hydraulic oils. Harmony recognises that responsible and effective waste management can positively reduce its environmental impacts and mitigate associated environmental liabilities. Waste management is thus a priority focus area. Internally, guidelines on mineral, non-mineral and hazardous waste materials are included in the environmental management systems (“EMS”) implemented at Mponeng.


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Tailings comprises of crushed rock and process water emitted from the gold elution process in the form of slurry once gold has been extracted. As tailings contain impurities and pollutants, they are placed in TSF engineered to contain them, in line with Harmony's tailings management programme and the Global Industry Standard on Tailings Management (“GISTM”). Harmony's overall tailings management strategy is to ensure robust, meticulous engineering and dam design, along with a continual focus on management of risks through layered assurance and oversight. The focus areas include, but are not limited to:

•freeboard control;

•water management;

•maintaining stability and the safety factor as advised by the engineer of record;

•erosion controls; and

•monitoring and control measures implemented to ensure continued compliance (including regular inspections, audits, and meetings on varying intervals with subsequent actions, minutes and reports).

As part of its mining, environmental and water approvals and licences, Harmony is required to implement monitoring programmes and plans to establish the operations impact on the environment. The compliance limits for the monitoring variable are included in the applicable EMPR(s), WUL(s) and environmental authorisations. The environmental monitoring implemented at Mponeng includes:

•ground and surface water monitoring

•biodiversity monitoring;

•waste classification and quantification;

•integrated waste and water management plan updates;

•water balance reviews;

•licence and authorisation compliance reviews; and

•air quality (i.e., noise and dust) and greenhouse gas emissions ("GHG") monitoring.

17.3Permitting and Licences

In respect of environment, the following national Acts and the regulations promulgated thereunder provide the regulatory framework for mine permitting and licencing in South Africa:

•Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”);

•National Environmental Management Act, 1998 (“NEMA”);

•National Environmental Management: Waste Act, 2008 (“NEM:WA”);

•National Environmental Management: Air Quality Act, 2004 (“NEM:AQA”); and

•National Water Act, 1998 (“NWA”).

A summary of the status of environmental permits and licences issued at the effective date related to Mponeng’s operation is presented in Table 17-1. Harmony is in the process of transferring all licences and permits previously held by AngloGold Ashanti into the company’s name.


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Table 17-1: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Environmental Management Programme (Amendment)

(GP) 30/5/1/2/3/2/1 (01)

DMRE

12-Apr-2012

LOM

Waste Management Licence

GAUT 002/09-10/W0011

GDARD

22-Jun-2015

Expired July 2019. New application submitted.

Hazardous Waste Generator Certificate

GPG-01-513

GDARD

14-Jul-2015

In perpetuity

Water Use Licence

08/C23E/AEFGJ/1250

DWS

08-Sep-2011

20 years

Water Use Licence

10/C23E/AFJ/4787

DWS

01-Dec-2016

15 years

Certificate of Registration Inflammable Liquids and Substances

RP438/ptn5

West Rand District Municipality

30-Nov-2021

Annually

Harmony submitted a renewal application for the Waste Management Licence as well as an updated EMPR to the DMRE in June 2021 and are awaiting the decision. A WUL amendment application was also submitted to the Department of Water and Sanitation that is being processed.

17.4Local Stakeholder Plans and Agreements

•contribute to areas that will have the most meaningful socioeconomic impact on communities, namely infrastructure, education and skills development, job creation and entrepreneurial development;

•enhance broad-based local and community economic empowerment and enterprise development initiatives;

•facilitate socio-economic development in local communities by means of social and labour plan(s) (“SLP”) and corporate social responsibility programmes;

•support arts, culture, and sports and recreation; and

•build relationships based on trust within host communities.

In South Africa, mining companies are required to have a SLP which forms an important component of Harmony's community investment plan. It sets out the Company’s obligation to develop and implement comprehensive human resource development programs, community development plans, housing and living condition plans and employment equity plans. The ultimate aim of the SLP is to ensure the uplift of the social and economic circumstances of local communities surrounding the mine and are a prerequisite to securing and maintaining a mining right, with progress required to be reported each year. Harmony has budgeted to spend approximately ZAR144.4M over the next eight years to meet its SLP commitments (refer to Table 18-1).

17.5Mine Closure Plans

Harmony makes provision for closure and rehabilitation both for accounting purposes and as required under the MPRDA. The statutory obligation for all environmental rehabilitation at Mponeng is administered by the DMRE and requires the preparation of a closure plan, the development of a cost estimate, and financial assurance. The Company makes an annual submission to the DMRE setting out the cost of closure in accordance with the MPRDA and the regulations issued thereunder. Harmony appointed Digby Wells Environment, independent environmental consultants, to review and update the closure cost. The mine closure assessment was done in terms of regulation 53 and 54 of the MPRDA and in accordance with the requirements of NEMA. The closure cost as at 30 June 2022, was calculated to be ZAR902m including a 10% contingency allowance .


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17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups

Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure at Mponeng. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.

17.7Local Procurement and Hiring

Since the acquisition of Mponeng, Harmony have not reported on its compliance and performance against the Mining Charter at the effective date of this TSR.

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Periodic inspections are conducted by the DMRE to verify compliance with applicable environmental laws, regulations, permits and standards. In addition, Mponeng has implemented an EMS in line with the ISO 14001 standard. The EMS is audited on an annual basis by a third party and includes the needs and expectations of interested parties.

As part of Harmony, Mponeng conducts its operation based on policies and systems that are aligned to its corporate sustainable development framework. Although Harmony is not a signatory to the International Council on Mining and Metals or the UN Global Compact, these form the guiding principles of the framework. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (GRI). Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (CDP) for both climate change and water. The CDP runs the global environmental disclosure system that supports companies to measure and manage their risks and opportunities on climate change, water security and deforestation.


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18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Economic parameters for the Harmony Group are determined, and signed off by the CODM, before distribution to the business units, including Mponeng. The capital and operating costs are reported in ZAR terms and on a real basis. Rounding of figures may result in minor computational discrepancies.

18.1Capital Costs

The estimated capital costs for Mponeng are reported according to costs associated with major equipment outside the main operating sections which is termed abnormal expenditure (“AE”), infrastructure development, as well as operating capital, as presented in Table 18-1. Contingencies are only applied to major capital projects, in the case of Mponeng the Carbon Leader Project which includes a ZAR3.7m contingency. The estimated capital costs presented in Table 18-1 are carried forward and modelled in the Mponeng cash flow.

Costs in relation to the Mining Charter Compliance (“MCC”) is determined because of Mponeng’s SLP requirements and modelled as such. These costs are extracted from the SLP model.

Table 18-1: Summary of Capital Cost Estimates for Mponeng


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2029)
Abnormal Expenditure			392,553
Shaft Projects - VCR			624,558
Shaft Projects - CLR			53,788
Mining Charter Compliance			144,365
Total Cost			1,215,264
Note: No capital costs for 2029 onwards.

18.2Operating Costs

A summary of the direct and indirect operating costs for Mponeng are presented in Table 18-2. Operating costs are based on historic performance while applying any changes expected within the new financial year (such as electricity requirements, increased/decreased labour) and are used as an input into the Mponeng cash flow model.

Table 18-2: Summary of Operating Cost Estimates for Mponeng


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2029)
Mining			13,395,728
Services			2,588,570
Medical Hub / Station			549,066
Engineering			15,439,902


Total Direct Costs			31,973,266
Mine Overheads			1,977,763
Royalties			737,038
Ongoing Capex			1,742,064
Total Cost			36,430,131

18.3Comment on Capital and Operating Costs

The capital and operating cost estimates for Mponeng are based on actual historical data, as well as budget forecasts. Therefore, the forecasted costs are reliable, and at minimum meet the confidence levels of a Pre-Feasibility Study. This approach of estimating capital and operating costs is consistent with industry practice. A record of the forecast and budget costs is maintained by the operation, allowing for an assessment of the alignment of the forecast and actual costs.


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19Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

19.1Key Economic Assumptions and Parameters

The CODM forms, reviews, signs-off and distributes economic assumptions to its various business units. On an annual basis, during the period October to November, long-term commodity prices and exchange rates forecasts’, are received from various financial institutions. In addition, a specialist in Economics from a reputable economics company based in South Africa, provides expert views on the global markets, forward looking commodity prices, exchange rates, consumer price index, production price index, electricity cost and consumable increases. All factors are analysed, cognisance is taken of the requirements of the NYSE and JSE markets, and a proposal is presented to the CODM for recommendation and approval. These assumptions are then applied at Mponeng, along with specific operational considerations.

19.1.1Metallurgical Recoveries

The metallurgical recoveries used in the cash flow are provided in Table 12-1.

19.1.2Gold Price

The proposed gold price (USD1,546/oz) is the price that is used by Harmony for the Mponeng annual planning cycle and forms the basis for the spot gold price assumptions used in the Mponeng cashflow. The reader is referred to Figure 16-2 for the consensus forecast gold price.

The conversions used in the calculation of the various gold prices is presented in Table 19-1.

Table 19-1: Conversions Used in Gold Price Calculations


Economic Factors	Gold Price (USD/oz)	Conversion Factor (oz/kg)	Exchange Rate (ZAR:USD)	Gold Price (ZAR/kg)
2022 Mineral Resource	1,723	32.15	15.35	850,191
2022 Mineral Reserve	1,546	32.15	15.35	763,000
2023 forecasted gold price	1,546	32.15	15.35	763,000
Notes: 1. Forecasted gold price as used in the Mponeng cash flow.

19.1.3Exchange Rate

In addition, the CODM has reviewed the ZAR:USD exchange rate performance over the past three years, for the period June 2018 - June 2021 (Table 19-2). The proposed spot exchange rate of 15.35 ZAR:USD is the exchange rate that is used by Harmony for the Mponeng annual planning cycle and forms the basis for the ZAR:USD exchange rate assumptions used in the Mponeng cashflow.

Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)


Period			Average Exchange Rate (ZAR:USD)
July 2019 to June 2020			15.68
July 2020 to June 2021			15.41
July 2021 to June 2022			14.75
3-Year Ave. (not weighted)			15.28


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Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast


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19.1.4Royalties

Royalty is an expense paid to the government of South Africa and is accounted for in the Mponeng cash flow models. In terms of the mining ring-fencing application, each ring-fenced mine is treated separately, and deductions can normally only be utilised against mining income generated from the relevant ring-fenced mine.

19.1.5Capital Expenditure

At Harmony, capital is allocated to the mines with a longer life. Mponeng currently has a relatively short LOM model, and therefore has relatively small amounts dedicated to capital expenditure. Detailed capital costs can be found in Table 18-1. The total capital costs shown in Table 18-1 represents the capital costs (excluding Ongoing Capital Development) in the Mponeng cash flow (Table 19-4).

19.1.6Operating Expenditure

19.1.7Working Capital

Working capital is calculated at a Harmony Group level and not at an operational level.

19.1.8Taxes

19.1.9Closure Cost and Salvage Value

The closure cost estimates are those provided in Section 17.5. No account has been taken of any potential salvage values.

19.1.10Summary

The key assumptions used in the cash flow are summarised for Mponeng in Table 19-3.

Table 19-3: Key Economic Assumptions and Parameters


Parameter	Unit	Value
Production Rate	ktpm	82.00
Gold Recovery	%	97.87
Royalty	%	Formula
Tax Rate	%	Formula
Gold Price	ZAR/kg	763,000
Exchange Rate	USD:ZAR	15.53
Discount Rate	%	9.00

19.2Economic Analysis


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Table 19-4: Mponeng Cash Flow


Item	Units	Total	FY2023	FY2024	FY2025	FY2026	FY2027	FY2028	FY2029
Mining advance	m2	1,171,857	152,234	171,725	172,196	187,397	182,543	161,146	144,616
Ongoing Capital Development (OCD)	m	27,907	8,510	7,412	6,179	4,102	1,500	204	0
Milled tons	t ('000)	6,794,132	927,851	1,038,538	1,021,976	1,083,457	1,029,324	896,216	796,768
Yield	g/t	8.55	7.67	8.06	8.36	9.11	9.24	8.77	8.55
Gold recovered	kg	58,073	7,114	8,368	8,541	9,866	9,515	7,857	6,813
Revenue	ZAR'000	44,309,821	5,427,882	6,384,645	6,516,476	7,527,785	7,259,936	5,994,600	5,198,496
Total costs (including OCD)	ZAR'000	35,693,093	5,224,479	5,317,906	5,315,314	5,300,402	5,079,464	4,787,590	4,667,938
Mining Charter Compliance (MCC)	ZAR'000	144,365	44,365	20,000	20,000	20,000	20,000	12,000	8,000
Capital (excluding OCD)	ZAR'000	1,070,901	194,166	229,428	233,863	226,674	130,672	56,097	0
Royalty	ZAR'000	737,039	27,139	31,923	102,029	191,679	196,458	120,013	67,797
Total costs (including capital and royalty)	ZAR'000	37,645,397	5,490,149	5,599,257	5,671,206	5,738,755	5,426,595	4,975,700	4,743,735
Profit (after OCD and capital)	ZAR'000	6,664,424	-62,266	785,388	845,270	1,789,030	1,833,341	1,018,900	454,762
NPV - (low discount rate - 9%) (Rm)	@9%	4,572
NPV - (medium discount rate - 12%) (Rm)	@12%	4,071
NPV - (high discount rate - 15%) (Rm)	@15%	3,641


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The discounted cash flow model is used to calculate the NPV of the investments (real model). The NPV for the spot metal price, is approximately ZAR4.57Bn, at a discount rate of 9%. The NPV is calculated on a cash flow that accounts for factors such as:

•mining and ore processing working costs;

•royalty payments;

•capital costs, including costs allocated to ongoing development;

•any significant project work considered as major projects; and

•costs deemed as abnormal expenditure.

19.3Sensitivity Analysis

The economic assumptions, cash flow breakdown and economic analysis contribute to the basis for the sensitivity analysis. The sensitivities are calculated and analysed, as shown in the accompanying Table 19-5 to Table 19-7. Harmony has reviewed its exposure in terms of South Africa’s political instability, the COVID-19 pandemic, the currency exchange rate, and the gold price, on its financial assets and financial liabilities, and has determined the sensitivities for a ±10% variance. Management considers this range to be a reasonable change given the volatility in the market.

The sensitivity analysis is completed for variations in commodity price (ZAR/kg), total operating costs, which include capital costs and royalties paid; and a combined analysis considering variations in commodity price, total operating costs, and changes in production. Capital investments in Mponeng are relatively low and not expected to have any significant impact on the NPV and therefore not included in a sensitivity analysis. The base case in the analysis below is the economic results emanating from the LOM plan (Table 19-4).

Table 19-5: Gold Price Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR Bn)
10%	58,073	839,300	48,740,803	37,645,397	11,095,406	7,757
5%	58,073	801,150	46,525,312	37,645,397	8,879,915	6,165
LOM plan	58,073	763,000	44,309,821	37,645,397	6,664,424	4,572
-5%	58,073	724,850	42,094,330	37,645,397	4,448,933	2,979
-10%	58,073	686,700	39,878,839	37,645,397	2,233,442	1,386

Table 19-6: Total Operating Cost Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR Bn)
10%	58,073	763,000	44,309,821	41,409,937	2,899,885	1,844
5%	58,073	763,000	44,309,821	39,527,667	4,782,154	3,208
LOM plan	58,073	763,000	44,309,821	37,645,397	6,664,424	4,572
-5%	58,073	763,000	44,309,821	35,763,127	8,546,694	5,936
-10%	58,073	763,000	44,309,821	33,880,857	10,428,964	7,300
Note: 1. Total operating cost, including capital and royalty (ZAR).

The sensitivity in Table 19-5 and Table 19-6 are based upon the change in a single assumption while holding all other assumptions constant. In practice, this is unlikely to occur, as risks and/or opportunities will have an impact on the cash flows, and changes in some of these assumptions may be correlated. The insights that can be provided by this sensitivity analysis is that Mponeng Mine is most sensitive to changes in the gold price (ZAR/kg), closely followed by changes in total operating costs (Table 19-7).

The impact of one or a combination of risks and opportunities occurring at the same time cannot be specifically quantified so an analysis considering multi-parameters is considered. In this way the general risks, with the aid of the sensitivity table (Table 19-7) are adequately covered. The sensitivity analysis considering the 3 variations of gold price (ZAR/kg), operating costs and variation in production (kg Au) show that the lowering of working costs, improvement in productivity and the benefits of a higher gold price can have positive impacts on the Mponeng Mine.


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Table 19-7: Gold price, Operating Costs, and Production Variation Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR Bn)
10%	63,880	839,300	53,614,884	41,409,937	12,204,947	8,533
5%	60,977	801,150	48,851,578	39,527,667	9,323,911	6,473
LOM plan	58,073	763,000	44,309,821	37,645,397	6,664,424	4,572
-5%	55,170	724,850	39,989,614	35,763,127	4,226,487	2,830
-10%	52,266	686,700	35,890,955	33,880,857	2,010,098	1,248


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20Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

Mponeng lies to the south of TauTona and Savuka Mines and east of Kusasalethu Mine. All mines are 100% owned by Harmony and collectively form the West Wits operation. TauTona and Savuka have completely mined out the VCR horizon and some infrastructure is still available on the CLR horizon. The remaining portions of CLR Mineral Resource from these two mines was transferred to Mponeng in 2017 as at the time they were placed under and care and maintenance with intention to move towards eventual closure. Blyvooruitzicht Gold (Pty) Limited and Sibanye-Stillwater Limited own and operates other gold mines located to the north east and north west of Mponeng.


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21Other Relevant Data and Information

Section 229.601(b)(96) (21)

Public disclosure reports on Mponeng’s operational, financial and environmental performance are available on the Company’s corporate website. The following reports are relevant to this TRS:

•Integrated annual report 2022;

•ESG report 2022;

•Financial report 2022;

•Report to shareholders 2022;

•Operational report 2022;

•TCFD report; and

•SLP Project FY22.

The Mineral Corporation conducted an external audit of the estimates in August 2021. In its report (No. C-HGC-R&R-1950/1179), The Mineral Corporation concluded that Mineral Resources and Mineral Reserves as at June 2021 could be disclosed and signed-off by the QP according to internationally recognised mineral reporting guidelines and rules.


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22Interpretation and Conclusions

Section 229.601(b)(96) (22)

Mponeng is a well-established mine and has been in operation since commissioning in 1986. The name Mponeng was adopted in 1999 (previously known as Western Deep Level South Shaft), and the asset was acquired by Harmony in October 2020. Harmony has no known risks to conduct mining activities over the permitted mining rights’ areas, incorporated as Mponeng. In addition, no known risks are posed over surface access and activities, regarding mining related activities.

The gold-bearing conglomerates at Mponeng are found in the north-western margin of the Archean Witwatersrand Basin, a prominent gold deposit in the world. These gold bearing conglomerates are mostly confined to their horizons known as reefs. The VCR, hosted in the Kimberley and Booysens domain, is continuously developed across the entire Mponeng mining area and is currently the most exploited reef at Mponeng. The CLR, hosted in the Krugersdorp domain, was historically mined at the adjacent TauTona and Savuka Mines, and is the other gold-bearing reef that contributes to the Mponeng Mineral Resource.

Mponeng’s regional geological setting, mineralisation and deposit is well understood. The geology is supported by seismic survey and, surface and underground drilling findings. The geological anomalies, synonymous with both the VCR and CLR reefs are identified, defined, and managed by the Mponeng Geology Department. Planned targeted exploration for the 2022/2023 period is aimed at extending the Mineral Resources for the Booysens/Kimberley transition towards the east of the Phase 1 LOM extension area, and the area west of the Kimberley domain.

The sampling approach and management, density assumptions, laboratory procedures, and assaying and analysis are in keeping with industry standards and practices and is appropriate for the Witwatersrand and VCR-type mineralisation. The holistic understanding of the regional geology, lithological and structural controls of the mineralisation at Mponeng is sufficient to support the estimation of Mineral Resources.

Gold bearing ore mined at Mponeng is processed at the Mponeng processing facility which has been in operation since 1986, as such the processing method is considered well established for mineralisation at Mponeng. The plant therefore makes use of historical trends and data as a basis for their recoveries of VCR and CLR. However, metallurgical testwork is adopted for optimisation projects. In the recent past, a blend of ore was evaluated to optimise the mine’s processing conditions. The evaluation recommended that the optimal blend recovery is a composite of ore in a 40:60 ratio, with respect to Mponeng is to Kusasalethu. Current performance is aligned with this ratio.

The data pertaining to the mineralisation, regional and geological setting, exploration findings, sample collection, preparation, and testing, inclusive of data verification and metallurgical test work gives rise to the Mineral Resource estimate. The combined Measured and Indicated Mineral Resource, exclusive of Mineral Reserves, as at 30 June 2022 is 20.84Mt at 14.22g/t gold, containing 9.53Moz of gold, and the Inferred Mineral Resource contains 29.12Mt at 13.35g/t gold, containing 12.50Moz of gold.

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and operational mine planning processes. Mine planning utilises and takes into consideration actual historical technical parameters. In addition, conversion of the Mineral Resources to Mineral Reserves considers Modifying Factors, dilution, ore losses, minimum mining widths, planned mine call and plant recovery factors. The Mineral Reserve is 6.59Mt of milled ore containing 1.86Moz as at 30 June 2022.

The mine is currently mining profitably, and the Mineral Reserve estimates show positive cash flows. Silver or any other by-products that are recovered as part of the refining process, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimates. There are no obvious material risks that could have significant effect on the Mineral Reserves.

The Mineral Reserves are extracted via the SGM method with backfill support, taking into consideration the mining and rock engineering design guidelines. This mining method increases flexibility and minimises seismicity. In addition, the breast mining method that is adopted in some parts of the mine provide a safe and economic mining method, for these specific areas. Extracted minerals from the Mponeng Mine are recovered at an onsite processing plant. The metallurgical process is a well-tested technology, processing ore from the VCR and CLR reefs.


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

The mine’s regional and local infrastructure is capable of fully supporting the mining and surface related mining activities. Mponeng is accessed via national and provincial road networks, has key power transmission and distribution networks provided by the National electricity regulator, water supply networks and communication infrastructure. Overall, Mponeng is well-established with sufficient logistics and infrastructure support for the existing and planned mining operations.

Harmony and Mponeng are exposed to market risks such as exchange rate and gold price fluctuations which are partially offset by the Harmony Group hedging policy. The hedging programme takes into account factors effecting the global gold market and these, along with macro-economic conditions, are used to determine planning and forecasting inputs at group level for all of Harmony’s operating business units. Other non-gold related risks are addressed to some extent by Mponeng entering into vendor agreements for the provisions of supplies and services which are done on a competitive basis with customary price adjustment, renewal and termination clauses.

To successfully operate a mining operation in South Africa the state requires compliance with applicable environmental laws, regulations, permits and standards. Mponeng adheres to said compliance and regulatory standards and have, in addition, implemented an Environmental Management System in line with the ISO 14001.

As part of Harmony, Mponeng conducts its operations based on policies and systems that are aligned its corporate sustainable development framework. This is guided by the principles of the framework from the International Council on Mining and Metals or the UN Global Compact. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (GRI). Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (CDP) for both climate change and water.

One of the ways Harmony aims to grow and develop the people and assets and provide sustainable value to all stakeholders is through economic regeneration. The economics of Mponeng is based on the discounted cash flow model, with a spot price of above ZAR763,000/kg. The NPV for the spot metal price, is ZAR4.57Bn, at a discount rate of 9%. The NPV is calculated on cash flow that takes factors such as: capital and operating costs; and royalties. The capital and operating cost estimates for Mponeng are based on historical data, as well as budget forecasts. This estimation technique allows for the forecast and actual costs to be aligned.

Royalties and taxes are paid to the South African government and accounted for in the Mponeng cash flow and NPV analysis. There are also specific tax relief benefits that apply to gold mining companies, where 5% of total revenue is exempt from taxation, amongst other benefits. In addition, in response to challenges faced by companies during the COVID-19 pandemic, the government have implemented various stimulus packages to provide some tax relief to companies. The economics of Mponeng are tested for its sensitivity to commodity price (ZAR/kg), operating costs (ZAR) gold production (kg). The insights provided by the sensitivity analysis is that Mponeng Mine is most sensitive to changes in the gold price (ZAR/kg), closely followed by changes in total operating costs (ZAR).

To the south of Mponeng is the TauTona and limited Savuka Mines and to the east of Mponeng is the Kusasalethu Mine. All these mines are 100% owned by Harmony and collectively form the West Wits operation. TauTona and Savuka have completely mined out the VCR horizon. Portions of CLR Mineral Resource from TauTona and Savuka have been transferred to Mponeng. The TRS provides sufficient information as required and there is no other relevant data and information.

The TRS was prepared by a team of experienced professionals. The TRS provides a summary of the material scientific and technical information concerning the mineral exploration, Mineral Resources, Mineral Reserves, and associated production activities of the mineral asset, including references to the valuation for Mponeng. Each QP was responsible for specific sections of this TRS which they have personally supervised and reviewed. This TRS contains the expression of the QP opinions, based on the information available at the time of preparation.


Effective Date: 30 June 2022 91


			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

23Recommendations

Section 229.601(b)(96) (23)

Recommendations for Mponeng include the following incremental projects.

•129 – 132 VCR extension via the current decline system; and

•123 – 126 CLR extension via a ramp deepening.

The extension study is planned to be finalised during December 2022. A more accurate cost will

available by then.

It is also recommended that further study work on the extraction of the Tau Tona and Savuka Shaft pillars


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

24References

Section 229.601(b)(96) (24)

Burnett, R.J., Orton, R., Chola, D., Lavery, R.K. and Linton, P., 2015. Carbon Leader Reef Estimation Domain Model (unpubl.), in: AngloGold Ashanti Limited: Carbon Leader Reef Geoscience Project 2015, 1-54.

Dankert, B.T., and Hein, K.A.A., 2010. Evaluating the structural character and tectonic history of the Witwatersrand Basin. Precambrian Research 177, 1–22.

Fletcher, P., 2009. The Carbon Leader Reef (unpublished), in: AngloGold Ashanti Limited: TauTona Company Report 2009, 1–30.

https://www.gold.org/goldhub/data/gold-prices. Accessed 22 July 2022.

Manzi, M., Cooper, M., Malehmir, A., Durrheim, R., and Nkosi, Z. 2015. Integrated interpretation of 3D seismic data to enhance the detection of the gold-bearing reef: Mponeng Gold mine, Witwatersrand Basin (South Africa). Geophysical Prospecting 63: 881–902.

Muller, C., 1991. The Occurrence of Carbon in the Carbon Leader Reef and some important considerations, in: Gold Fields Oberholzer Geological Centre (Sedimentology Unit) Reference: 990/29/73/SED, 61–64.

Robb, L.J., and Meyer, F., 1995. The Witwatersrand Basin, South Africa: Geological framework and mineralisation processes. Ore Geology Reviews, 10(2), 67-94.

Robb, L.J., Robb, V.M., 1998. Gold in the Witwatersrand Basin. In: Wilson, M.G.C., Anhaeusser, C.R. (Eds.), The Mineral Resources of South Africa. Handbook. Council for Geoscience, 294–349.

South African Revenue Services. (2021, July 29). South African Revenue Services. Retrieved from Tax Relief Measures: https://www.sars.gov.za/media/tax-relief-measures/

World Gold Council. (2022, July 13). World Gold Council, Gold Hub, Gold mine production: Gold Production by Country | Gold Production | Goldhub


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			Technical Report Summary for Mponeng Mine, Gauteng, South Africa

25Reliance on Information Provided by the Registrant

Section 229.601(b)(96) (25)

Table 25-1: Other Specialists


Name	Specialist	Area of Responsibility	Association / Company
H Le Roux	Finance/Costing	Mponeng Finance Manager	Mponeng
N Strydom	Mining Rights	Harmony Senior Legal Council	Central
N Maluleke	Processing	Process plant	Plant
E Kleynhans	Rock Engineering	Rock Engineering	Mponeng
J Powell	Geostatistician	Estimation	Central


Effective Date: 30 June 2022 94

HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Kalgold Mine

North West Province, South Africa

Effective Date: 30 June 2022

Final Report Date: 18 July 2022


			Technical Report Summary for Kalgold Mine, North West Province, South Africa


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.

Effective Date: 30 June 2022


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Signature Page

/s/ Rebaone Francis Gaelejwe

____________________________________

Mr Rebaone Francis Gaelejwe

BSc. Hons (Geol), PgDip, EMBA

SACNASP (No. 400207)

Ore Reserve Manager

Harmony Gold Mining Company Limited

Effective Date: 30 June 2022

Final Report Date: 18 July 2022

Effective Date: 30 June 2022


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

List of Contents


1	Executive Summary			1
2	Introduction			7
3	Property Description			8
	3.1	Mineral Tenure		8
	3.2	Property Permitting Requirements		8
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			10
	4.1	Accessibility		10
	4.2	Physiology and Climate		10
	4.3	Local Resources and Infrastructure		10
5	History			11
	5.1	Historical Ownership and Development		11
	5.2	Historical Exploration		12
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		12
	5.4	Past Production		13
6	Geological Setting, Mineralisation and Deposit			15
	6.1	Regional Geology		15
	6.2	Local Geology		15
	6.3	Property Geology		15
		6.3.1	Lithology	18
		6.3.2	Structure	18
	6.4	Mineralisation		21
	6.5	Deposit Type		21
	6.6	Commentary on Geological Setting, Mineralisation and Deposit		21
7	Exploration			22
	7.1	Aeromagnetic Survey		22
	7.2	Geological and Topographical Mapping		22
	7.3	Surface Drilling Campaigns, Procedures, Sampling, Recoveries and Results		22
		7.3.1	AC and Percussion Drilling	22
		7.3.2	RC Drilling	25
		7.3.3	Diamond Core Drilling	25
		7.3.4	Drilling Results	25
		7.3.5	Collar and Downhole Surveys	25
		7.3.6	Sample Length and True Thickness	27
		7.3.7	Logging Procedure	27
		7.3.8	Core Recovery	27
	7.4	Hydrogeology		27
	7.5	Geotechnical Data		28
	7.6	Commentary on Exploration		28
8	Sample Preparation, Analyses and Security			29
	8.1	Sampling Method and Approach		29
		8.1.1	RC Samples	29
		8.1.2	Core Samples	29
	8.2	Density Determination		29
	8.3	Sample Security		29
	8.4	Laboratory Sample Preparation		30
	8.5	Assaying Methods and Analytical Procedures		30
	8.6	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)		30
		8.6.1	Standards	33
		8.6.2	Blanks	33
		8.6.3	Duplicates and Repeats	33

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			Technical Report Summary for Kalgold Mine, North West Province, South Africa


		8.6.4	Gold Assay Pills	34
	8.7	Comment on Sample Preparation, Analyses and Security		34
9	Data verification			35
	9.1	Data Verification Procedures		35
	9.2	Limitations to the Data Verification		35
	9.3	Comment on Data Verification		35
10	Mineral Processing and Metallurgical Testing			36
	10.1	Extent of Processing and Metallurgical Testing		36
	10.2	Degree of Representation of the Mineral Deposit		36
	10.3	Analytical Laboratory Details		36
	10.4	Test Results and Recovery Estimates		36
	10.5	Extent of Processing, Testing, and Analytical Procedures		38
11	Mineral Resource Estimate			39
	11.1	Geological Database		39
	11.2	Geological Interpretation		39
		11.2.1	Oxidation	39
		11.2.2	Estimation Domains	40
	11.3	Mineral Resource Estimation Methods		40
		11.3.1	Exploratory Data Analysis	40
		11.3.2	Global Analysis	41
		11.3.3	Decluster Analysis	44
		11.3.4	Data Compositing	44
		11.3.5	Diffusivity and Proportional Effect	44
		11.3.6	Contact Analysis	44
		11.3.7	Basis Statistics	45
		11.3.8	Top Cut Determination	45
		11.3.9	Stationarity	45
		11.3.10	Variography	45
		11.3.11	Block Model	47
		11.3.12	Grade Estimation	47
		11.3.13	Relative Density and Tonnage Calculation	47
		11.3.14	Model Validation	48
	11.4	Mineral Resource Evaluation		48
	11.5	Mineral Resource Classification and Uncertainties		49
	11.6	Mineral Resource Estimate		49
	11.7	Mineral Resource Reconciliation		52
	11.8	Comment on Mineral Resource Estimates		52
12	Mineral Reserve Estimate			53
	12.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve		53
	12.2	Modifying Factors		53
	12.3	Mineral Reserve Estimate		54
	12.4	Mineral Reserve Reconciliation		54
	12.5	Commentary on Mineral Reserve Estimate		55
13	Mining Method			56
	13.1	Mine design		56
		13.1.1	Mine Design Parameters	56
	13.2	Mine Plan Development and Life of Mine Schedule		58
	13.3	Geotechnical and Geohydrological Considerations		59
		13.3.1	Geotechnical	59
		13.3.2	Geohydrological and Seismic Monitoring	59
	13.4	Mining Operations		59

Effective Date: 30 June 2022


			Technical Report Summary for Kalgold Mine, North West Province, South Africa


		13.4.1	Mining Rates	59
		13.4.2	Mining Equipment and Machinery	60
		13.4.3	Grade and Dilution Control	62
		13.4.4	Ore transport	62
		13.4.5	Mining Personnel	62
	13.5	Commentary on Mining Method		63
14	Processing and Recovery Methods			64
	14.1	Mineral Processing Description		64
	14.2	Plant Throughput, Design, Equipment Characteristics and Specifications		66
	14.3	Energy, Water, Process Material and Personnel Requirements		66
	14.4	Commentary on the Processing and Recovery Methods		66
15	Infrastructure			68
	15.1	Surface Infrastructure		68
		15.1.1	Ore and Waste Rock Storage Facilities	68
		15.1.2	Leach Stockpiles	68
		15.1.3	Tailings Storage Facilities	68
		15.1.4	Power and Electrical	68
		15.1.5	Water Usage	71
		15.1.6	Logistics and Supplies	71
	15.2	Commentary on Infrastructure		71
16	Market Studies			72
	16.1	Market Overview		72
	16.2	Global Production and Supply		72
		16.2.1	New Mine Production	72
		16.2.2	Recycling	72
	16.3	Global Consumption and Demand		72
		16.3.1	Jewellery	72
		16.3.2	Investment	73
		16.3.3	Currency	73
	16.4	Gold Price		73
		16.4.1	Historical Gold Price	73
		16.4.2	Forecast Gold Price	73
		16.4.3	Harmony Group Gold Hedging Policy	73
	16.5	Commentary on Market Studies		75
	16.6	Material Contracts		75
17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			76
	17.1	Results of Environmental Studies		76
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		76
	17.3	Permitting and Licences		77
	17.4	Local Stakeholder Plans and Agreements		79
	17.5	Mine Closure Plans		79
	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals or Groups		79
	17.7	Local Procurement and Hiring		80
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		80
18	Capital and Operating Costs			81
	18.1	Capital Costs		81
	18.2	Operating Costs		81
	18.3	Comment on Capital and Operating Costs		81
19	Economic Analysis			83
	19.1	Key Economic Assumptions and Parameters		83
		19.1.1	Metallurgical Recoveries	83

Effective Date: 30 June 2022


			Technical Report Summary for Kalgold Mine, North West Province, South Africa


		19.1.2	Gold Price	83
		19.1.3	Exchange Rate	83
		19.1.4	Royalties	85
		19.1.5	Capital Expenditure	85
		19.1.6	Operating Expenditure	85
		19.1.7	Working Capital	85
		19.1.8	Taxes	85
		19.1.9	Closure Cost and Salvage Value	85
		19.1.10	Summary	85
	19.2	Economic Analysis		86
	19.3	Economic Analysis		86
	19.4	Sensitivity Analysis		86
20	Adjacent properties			90
21	Other Relevant Data and Information			91
22	Interpretation and Conclusions			92
23	Recommendations			94
	23.1	Additional Exploratory Drilling		94
24	References			95
25	Reliance on Information Provided by the Registrant			96

Effective Date: 30 June 2022


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

List of Figures


Figure 3-1: Location of Kalgold			9
Figure 3-2: Mineral Tenure of Kalgold			9
Figure 5-1: Graph of Kalgold Production History – Tonnes and Grade			14
Figure 5-2: Graph of Kalgold Production History – Gold Produced			14
Figure 6-1: Regional Geology of the Kraaipan Greenstone Belt			16
Figure 6-2: Local Geology of Kalgold			17
Figure 6-3: Property Geology of Kalgold			17
Figure 6-4: Cross Section Through A Zone Pit			19
Figure 6-5: Cross Section Through Watertank Pit			19
Figure 6-6: Cross Section Through the Windmill Pit			20
Figure 6-7: Schematic Kalgold Stratigraphy			20
Figure 7-1: Location of Kalgold Targeted Exploratory Drilling in Relation to the Mining Pits (2017 - 2019)			24
Figure 7-2: Location of Kalgold Drill Holes (2020-2021)			26
Figure 8-1: Laboratory Sample Preparation Process			32
Figure 10-1: Position of Drill Holes Used for Metallurgical Test Work			37
Figure 11-1: Kalgold Geological Domains Used in Mineral Resource Estimation			42
Figure 11-2: Distribution of the Kalgold Structural Domains			43
Figure 11-3: Variogram Ellipses Used for Each Structural Domain			46
Figure 11-4: Location and Classification of Kalgold’s Mineral Resources and Mineral Reserves			50
Figure 13-1: Plan Showing Kalgold Mining Zones			57
Figure 13-2: Section View of A Zone and Watertank Pit Slope and Ramp Design			60
Figure 13-3: Kalgold LOM Plan			60
Figure 13-4: Graph of Kalgold LOM Plan - Tonnes and Grade			61
Figure 13-5: Graph of Kalgold LOM Plan – Gold Produced (kg)			61
Figure 14-1: Schematic Flow Diagram of the Metallurgical Process			65
Figure 14-2: Historical Plant Recovery			67
Figure 15-1: Kalgold Mine Layout and Infrastructure			69
Figure 15-2: Detailed Surface Infrastructure of Kalgold Plant			70
Figure 16-1: Graph of Annual Gold Price History – ZAR/kg			74
Figure 16-2: Graph of Consensus View of Forecast Gold Price			74
Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast			84

Effective Date: 30 June 2022

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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

List of Tables


Table 1-1: Summary of the Kalgold Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8			3
Table 1-2: Summary of the Kalgold Mineral Reserves as at 30 June 2022 1-5			4
Table 1-3: Summary of LOM Capital Cost Estimate for Kalgold			6
Table 1-4 : Summary of Operating Cost Estimates for Kalgold			6
Table 1-5: Status of Environmental Permits and Licences			6
Table 2-1: List of Responsible and Contributing Authors			7
Table 3-1: Summary of Mineral Rights for Kalgold			8
Table 5-1: Summary of Historical Ownership Changes and Activities of Kalgold			11
Table 5-2: Summary of Historical Drilling at Kalgold			12
Table 5-3: Summary of the Previous Kalgold Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)			13
Table 5-4: Summary of the Previous Kalgold Mineral Reserves as at 30 June 2021			13
Table 7-1: Summary of Drilling Results			25
Table 7-2: Summary of Geotechnical Drilling Results			28
Table 7-3: Geotechnical Drilling Results - Shear Strength Tests			28
Table 8-1: Summary of Sample Batches for 2018 - 2021 Drilling			30
Table 8-2: Summary of AMIS Standard Results			33
Table 10-1: Leach Flowsheet Determination			36
Table 10-2: Metallurgical Test Work Results			36
Table 11-1: Geological Modelling Rock Codes			39
Table 11-2: Oxidation Domains			40
Table 11-3: Lode Estimation Domains			40
Table 11-4: Comparison of Data Before and After Data Compositing to 2m Lengths			44
Table 11-5: Summary of Block Model Extents			47
Table 11-6: Densities Assigned by Depth			48
Table 11-7: Economic Parameters for Mineral Resource Shell (30 June 2021)			48
Table 11-8: Parameters Considered for Constructing the Mineral Resource Classification Wireframes			49
Table 11-9: Summary of the Kalgold Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8			51
Table 12-1: Kalgold Modifying Factors Used for Mineral Reserve Determination			53
Table 12-2: Summary of the Kalgold Mineral Reserves as at 30 June 2022 1-5			54
Table 13-1: Key Mine Design Parameters			58
Table 13-2: Stockpile Categories			62
Table 14-1: Processing Parameters at Kalgold Plant			64
Table 14-2: Reagent Consumption			66
Table 16-1: Material Contracts			75
Table 17-1: Status of Environmental Permits and Licences			78
Table 18-1: Summary of Capital Cost Estimates for Kalgold			82
Table 18-1: Summary of Operating Cost Estimates for Kalgold			82
Table 19-1: Conversions Used in Gold Price Calculations			83
Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)			83
Table 19-3: Key Economic Assumptions and Parameters			85
Table 19-4: Kalgold Cash Flow			87
Table 19-5: Gold Price Sensitivity Analysis			89
Table 19-6: Total Operating Costs Sensitivity Analysis			89
Table 19-7: Gold Price, Operating Costs, And Production Variation Sensitivity Analysis			89

Effective Date: 30 June 2022

viii


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
°C			degrees Celsius
µm			Micrometres
3D			Three-dimensional
ADT			Articulated dump truck
AE			Abnormal expenditure
Andru Mining			Andru Mining (Pty) Limited
amsl			Above mean sea level
Avg.			Average
BIF			Banded iron formation
c.			Approximately
CIL			Carbon-in-Leach
cm			Centimetre
cmg/t			Centimetre-grams per tonne
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COP			Code of Practice
CRM			Certified Reference Material
COV			Coefficient of Variation
DD			Diamond Drilling
DMRE			Department of Mineral Resources and Energy
DWS			Department of Water and Sanitation
EIA			Environmental Impact Assessment
EMPR			Environmental Management Programme
EMS			Environmental Management System
EMTS			Electric Monorail Transport System
ESG			Environmental Social and Governance
ETF			Exchange traded fund
g			Gram
FEL			Front end loader
GHG			Greenhouse gas
g/t			Grams per metric tonne
GISTM			Global Industry Standard on Tailings Management
HG			High grade
kg			Kilogram
Kalgold			Kalahari Goldridge Mining Company Limited
KGB			Kalahari Greenstone Belt
km			Kilometre
Kpa			Kilo Pascals
ktpm			Kilo tonnes per month
Leapfrog			Leapfrog Geo 4.5 software
LBMA			London Bullion Market Association
LG			Low grade
Ltd			Limited
m			Metre
M			Million
Ma			Million years
masl			Metres above sea level
MCC			Mining Charter Compliance
MCF			Mine Call Factor

Effective Date: 30 June 2022


			Technical Report Summary for Kalgold Mine, North West Province, South Africa


NEMA			National Environmental Management Act, 107 of 1998
MPRDA			Mineral and Petroleum Resources Development Act, 28 of 2002
MRMR			Modified Rock Mass Ratings
Moz			Million troy ounces
Mpa			Mega Pascals
Mt			Million tonnes
Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
No.			Number
NPV			Net present value
OTC			Over the counter
oz			Troy ounce
PERC			Percussion drilling
Pty			Proprietary
QAQC			Quality Assurance and Quality Control
QP			Qualified Person
RC			Reverse Circulation drilling
RCDD			Reverse Circulation Diamond Drilling
RMR			Rock Mass Ratings
SACNASP			South African Council for Natural Scientific Professions
SAMREC			South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves
SANAS			South African National Accreditation System
SD			Standard Deviation
SEC			Securities and Exchange Commission
SGS			SGS South Africa (Pty) Limited
Shamrock			Shamrock Mining and Prospecting Company
Shell			Shell Limited
SLP			Social Labour Plan
SP			Stockpile
t			Metric tonne
t/m3			tonne per cubic metre
TRS			Technical Report Summary
TSF			Tailings Storage Facility
UCS			Uniaxial compressive strength (MPa)
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
WRCM			West Rand Consolidated Mines
WUL(s)			Water Use Licence(s)
y-o-y			Year on year
Yr			Year
ZAR			South African Rand
ZAR/kg			South African Rand per kilogram

Effective Date: 30 June 2022


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Glossary of Terms


Term			Definition
Co-kriging			A method that is used to predict the value of the point at unobserved locations by sample points that are known to be spatially interconnected by adding other variables that have a correlation with the main variable or can also be used to predict 2 or more variables simultaneously.
Cut-off grade			Cut-off grade is the grade (i.e., the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Dilution			Unmineralized rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Head grade			The average grade of ore fed into the mill.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Harmony			Harmony Gold Mining Company Limited
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the Modifying Factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project and may not be converted to a Mineral Reserve.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field.
LOM			The Life of Mine (LOM) is a technically achievable and economically viable period, which is formed from the basis of the determined Mineral Reserves, during which the Proven and Probable Mineral Reserves of the operation are planned to be extracted
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply Modifying Factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.

Effective Date: 30 June 2022


			Technical Report Summary for Kalgold Mine, North West Province, South Africa


Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralisation, taking into account relevant factors such as cut-off grade, likely mining dimensions, location, or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralisation drilled or sampled.
Modifying Factors			Modifying Factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate Modifying Factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include but are not restricted to mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the Modifying Factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product.
			(1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable.
			(2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is:
			(1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and
			(2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must:
			(i) Be either:
			(A) An organization recognized within the mining industry as a reputable professional association; or
			(B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field;
			(ii) Admit eligible members primarily on the basis of their academic qualifications and experience;
			(iii) Establish and require compliance with professional standards of competence and ethics;
			(iv) Require or encourage continuing professional development;
			(v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and
			(vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.
Tailings Freeboard			The vertical height between the beached tailings against the embankment crest and the crest itself.

Effective Date: 30 June 2022

xii


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Persons (“QP”) of Harmony Gold Mining Company Limited (“Harmony” or the “Company”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Company’s Kalahari Goldridge Mining Company Limited (“Kalgold” or “Kalgold Mine”). The TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, with an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature of this TRS.

Property Description

Kalgold is a modular open gold pit mine, extracting ore from a series of satellite orebodies. The mine is in the North West Province of South Africa, 55km southwest of the town of Mahikeng. The Kalgold Mine is serviced by well-maintained sealed roads with good access to all nearby towns and cities. The mine is surrounded by farmland and the closest community is at Kraaipan, approximately 15km to the south of the mine. The Kalgold Mine has been in operation since 1995 and is the only significant mining operation in the region.

The mining rights related to Kalgold was successfully acquired as the Kalahari Goldridge Mining Company Limited in July 1999. Through a successful legislative Section 11 process undertaken in terms of the Mineral and Petroleum Resources Development Act, 2008 (“MPRDA”), Harmony is now the holder of the following mining rights:

•NW30/5/1/2/2/77MR valid from 28 August 2008 to 27 August 2038; and

•NW30/5/1/1/2/863 and 1469PR. The section 102 application in terms of the MPRDA for the Prospecting Right to be incorporated as Kalgold Mining Right was not approved. A new Prospecting Right application will be lodged. The area is currently reserved, and the Department of Mineral Resources and Energy (“DMRE”) may not accept any other applications for the area.

There is no material litigation (including violations or fines) against the Company which threatens its mineral rights, tenure, or operations.

Ownership

Kalgold is 100% owned by Harmony, including the associated mineral rights. Harmony acquired the mine as part of a transaction concluded by the company in July 1999.

Geology and Mineralisation

The Kalgold lode deposit is located within the geological terrane known as the Archaean Kraaipan Greenstone Belt ("KGB"). The KGB forms part of the Kaapvaal Craton of South Africa and comprises a linear belt of weakly metamorphosed mafic volcanic rocks with interbedded metasedimentary rocks and Banded Iron Formation (“BIF”). The belt extends in a roughly north/south direction over 250km from South Africa into southern Botswana.

The belt is intruded by several granitoid suites which range from tonalitic and trondhjemitic gneisses through to granodiorite-monzonite suites. There is a general paucity of outcrop owing to the variably developed weathering profile and to the Tertiary- to-Recent cover, including transported Kalahari sands. Due to the younger cover rocks and lack of surface exposure, the mineralisation potential of the belt was poorly understood for many years.

The Kalgold lode deposit is accessed through five discrete mining areas, namely the D Zone, A Zone and A Zone south extension (Henry), Bridge Zone, Watertank, and Windmill pits. The geology of the D Zone Pit is used as a benchmark for the other pits. The geology consists of mafic schist, which forms the immediate footwall, a BIF horizon as the main mineralised zone and a succession of clastic sediments consisting of shale, greywacke, and volcanic conglomerates as the hanging wall. Mining is currently taking place at the A Zone, Watertank, Henrys and Windmill pits.


Effective Date: 30 June 2022 1


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Mineralisation at Kalgold is essentially strata bound to the BIF packages, resulting from intense silica, carbonate, sulphide, potassium alteration and metasomatic replacement of the BIF lenses. The mineralisation is manifested primarily as quartz veined and sulphidised BIF, with sulphides dominated by pyrrhotite and pyrite. Gold predominantly occurs as small grains of native gold, in association with pyrrhotite and trace chalcopyrite and sphalerite.

Status of Exploration, Development and Operation

Kalgold is an established, existing mining operation that has been in production for over 25 years. It currently mines at rates of c.3Mtpa of ore. An average of c.1,300kg of gold is produced annually, with ore sources originating from mining and stockpile handling operations.

In the period 2017 - 2019, definition and exploration drilling were undertaken over the Kalgold line of lode deposit. This exploration was aimed at validating and expanding the Mineral Resource estimate at that time. The drilling yielded significant extensions to the Mineral Resource area, expanding on the understanding of the deposit. The drilling results were analysed and incorporated into the geological model to upgrade the Mineral Resource estimates, and in-fill the areas between the A Zone and Watertank mining pits, known as the Bridge Zone.

Further exploration drilling took place during Q1 - Q2 in 2021. The results from this exploration drilling extended the mineralised area beyond the current resource limits. The exploration drilling and the subsequent definition of the Mineral Resources are ongoing, and the intention is that the Mineral Resource estimate will be continuously updated as the data becomes available and incorporated into the model.

The most recent exploratory work is planned to the south of the D zone and is supported by an approved budget. Any increase in confidence from these results is intended to support the latest plant Feasibility Study. This study is aimed at increasing the current milling and processing capacity. The results show a robust mining plan, and a proposal for a new 300ktpm mineral processing plant, in addition to the current approximate 130ktpm processing capacity.

Overall, the current Kalgold Mine site is well established and operates uninterrupted at a steady state capacity throughout the year.

Mineral Resource Estimate

The declared Mineral Resource estimate for Kalgold is based on the May 2022 Mineral Resource model. The model was completed by the Harmony QP using Leapfrog Geo 4.5 modelling software. The QP created wireframes and block models using the Datamine RMTM modelling software. The data used for the modelling in Datamine RM was based on a validated DatamineTM (“Datamine”) Fusion database containing exploration drill hole data, obtained until February 2022. The gold grade was estimated using the Ordinary Kriging interpolation method.

The QP compiling the Mineral Resource estimates is Mr RF Gaelejwe, who is Ore Reserve Manager at Kalgold, and an employee of Harmony.

The Mineral Resource estimate, as at 30 June 2021, exclusive of the reported Mineral Reserves is summarised in Table 1-1. These Mineral Resources account for mining depletions recorded until 30 June 2022 (20 January 2022 actuals plus five months forecast). They incorporate the A Zone, Watertank, Henrys and the Windmill Zone.


Effective Date: 30 June 2022 2


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Table 1-1: Summary of the Kalgold Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	0.576	1.65	953
Indicated	33.099	1.09	35,970
Total / Ave. Measured + Indicated	33.675	1.10	36,923
Inferred	25.440	0.34	8,557
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	0.635	0.048	0.031
Indicated	36.485	0.032	1.156
Total / Ave. Measured + Indicated	37.120	0.032	1.187
Inferred	28.043	0.010	0.275
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr RF Gaelejwe, who is Ore Reserve Manager at Kalgold, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 0.54g/t determined at a 90% profit guidance, and a gold price of USD1,723/oz; for an assumed plant throughput of 140ktpa ramping-up to 175kt. These parameters have been used to constrain the Mineral Resource shell.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The inferred portion of the Mineral Resource includes the historical Surface tailings of 6 263Kg (0,201Moz)
9. The Mineral Resource estimate is for Harmony’s 100% interest.

Mineral Reserve Estimate

The Mineral Reserves comprise 26% Proved Reserves and 74% are Probable Reserves. In the opinion of the QP, given that Kalgold is an established operation, the Modifying Factors informing the Mineral Reserve estimates would at minimum, satisfy the confidence levels of a Pre-Feasibility Study.

The declared Mineral Reserve is depleted to generate the Kalgold cash flows. The economic analysis of the cash flows displays positive results and are deemed both technically and economically achievable. It is important to note that the Mineral Reserves are declared as delivered to the mills, except for the recovered gold content. This gold content is calculated after factoring in the plant recovery as a modifying factor.


Effective Date: 30 June 2022 3


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Table 1-2: Summary of the Kalgold Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	5.616	0.94	5,303
Probable	15.789	1.16	18,262
Total (Proved + Probable)	21.405	1.10	23,565


IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	6.191	0.028	0.170
Probable	17.404	0.034	0.587
Total (Proved + Probable)	23.595	0.032	0.758
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr RF Gaelejwe, who is the Kalgold Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. Mineral Reserves are reported using a cut-off grade of 0.60g/t determined using a gold price of USD1,546/oz gold.

Capital and Operating Cost Estimates

The capital cost estimates for Kalgold are determined at corporate level, using the business plan as a basis. The capital cost elements can be mostly attributed to vehicle replacements, pumping and water control mechanisms, and slope stability monitoring. The capital and operating costs are reported in ZAR terms and on a real basis.

The capital cost estimates are shown in Table 1-3.

The operating cost estimates for Kalgold are categorised into direct and total costs. A summary of the Kalgold operating cost estimate is shown in the Table 1-4.

Permitting Requirements

Kalgold has the following valid permits and does not require any additional permits to continue with their mining operations. Environmental Management Programme (Amendment) authorisation, pending as at June 2021, has been granted by DMRE allowing the expansion of the current mining footprint within the approved Mining Right area.

Kalgold’s valid environmental permits are summarised in Table 1-5.

Conclusions

Kalgold Mine, a 100% owned Harmony asset, is well-established and has been operating successfully for the past 25 years. The mine is accessible within national and provincial roads, with secure infrastructure. Management has a good handle on aspects pertaining to legal and environmental matters with respect to operating within the South African mining law, as regulated by the MPRDA, and supporting legislation.

Kalgold hosts a distinct gold bearing Mineral Resource. The interpretation of the regional geological setting, mineralisation and orebody deposit is well understood and provides valuable insight to the gold mining operations. The mining methods of the Mineral Reserves is of sound design and has evolved over the history of the operations. The current preferred, modular open pit mining method based on the satellite orebodies, has progressively improved, with a significant focus on increased safety, grade control and pit slope stability monitoring. The gold recovery is well monitored through continuous bench marking initiatives against the mineral processing plants’ historical data.


Effective Date: 30 June 2022 4


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Harmony is in possession of robust contracts, with the gold price showing upside potential. The economics for Kalgold Mine display positive cashflows, based on detailed operating and capital costs. The valuation of the asset is proven to be most sensitive to the gold price. The assumptions and conclusions in this TRS contain the views of QPs and does not contain any known material risks at the time of compilation.

Recommendations

The current geological model is well understood. The Mineral Resource model in use, as updated in May 2022, is drilled to a standard suitable for robust estimation. However, a significant amount of additional definition drilling would be required to increase more Mineral Resources to a Measured category, as the small high grade ore lenses that fit inside the current drill spacing, would be better defined. To this end, further exploration drilling is required to expand on the current Mineral Resource and Mineral Reserve base.


Effective Date: 30 June 2022 5


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Table 1-3: Summary of LOM Capital Cost Estimate for Kalgold


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2033)
Shaft			32,373
MCC			44,157
Total			76,530

Table 1-4: Summary of Operating Cost Estimates for Kalgold


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2033)
Wages - payroll 1			421,289
Wages - payroll 2			43,185
Stores and materials			1,412,180
Electric power and water			18,498
Outside contractors			4,134,122
Other			273,878
Direct Costs			6,303,152
Refining charge			104,580
Assay cost			61,196
Plant treatment cost			5,631,560
Re-allocated costs			5,797,336
Mine overheads re-allocated			-136,794
Total			11,963,694

Table 1-5: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Environmental Management Programme (Amendment)

(NW) 30/5/1/2/3/2/1/77 EM

DMR

2022

LOM

Environmental Authorisation

NW30/5/1/2/2/77MR

DMR

2017

LOM

Hazardous Waste Generator Certificate

GPT-00-057

GDARD

23 July 2021

23 July 2023

Water Use Licence

07/D41B/ABCGIJ/4754

DWS

22 February 2021

LOM

Certificate of Registration Inflammable Liquids and Substances

(NW) 30/5/1/2/3/2/1/77 EM

DMR

20 January 2022

20 January 2023

Notes: DMR - Department of Mineral Resources, GDARD - Gauteng Department of Agriculture and Rural Development, DWS - Department of Water and Sanitation


Effective Date: 30 June 2022 6


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

2.Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS on Kalgold has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the U.S. SEC Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 - Technical Report Summary. The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand the Kalgold Mine, which forms part of Harmony’s activities.

This TRS has been prepared from the following sources of information:

•data available in the Competent Persons Report dated 30 June 2022;

•the 2022 and 2023 Corporate Business Plan; and

•the Mineral Resource and Mineral Reserve statement as at 30 June 2022.

The TRS was prepared by QPs employed by Harmony or Kalgold. The QP qualifications, areas of responsibility and personal inspections of the property are summarised in Table 2 1.

Table 2-1: List of Responsible and Contributing Authors

Qualified Person

Prof. Assoc.

Qualifications

TRS Section Responsibility

Personal Insp.

Mrs B Gruszka

MSc (Geology)

1, 6, 7, 8, 9, 22

Full time

Mrs B van der Linden

B Com. Hons (Bank/Fin Mng.)

1, 18, 19, 22

Full time

CODM

1, 16, 19.1.1, 19.1.2, 22

Full time

Mr D Fourie

SAIMM (706555)

MSc.Eng, GDE

1, 11, 22

Full time

Mr E Malaola

SAGC(PMS0196), IMSSA

NHD Mine Surveying, Mine Surveyors CoC

1, 9, 11.3 - 11.6, 12, 22

Full time

Mr D Vyas

SAIMM (704699), ECSA (00065392), MIMMM (685352)

B Eng. Mining

1, 13.1, 13.2, 22

Part time

Mr FP Coetzee

ECSA Pr. Eng. (20100158), MMC

B Eng. Mining, MBA

1, 13.3, 13.4, 22

Full time

Mr J Boshoff

SACNASP, SAIMM, GSSA

BSc. Hons, MSc, MBA

1, 9, 11.3 - 11.6, 12, 22

Full time

Mr J Spencer

FSANIRE

B.Sc. (Hons ), AREC (COM)

1, 13.2, 22

Part time

Ms K Sehularo

BA Geography and Environmental Management

1, 4, 17, 22

Full time

Mr N Wessels

AMRE

B.Eng (Mech), GCC

1, 15, 22

Full time

Ms KN Monaisa

AMMSA

B-Tech (Mining Engineering), MDP, MMC

1, 13.3, 13.4, 23

Full time

Mr R Montshonyane

BTech: Engineering Metallurgy, BT10014

1, 10, 14, 22

Full time

Mr R Reid

Australian Institute of Geoscientists (FAIG: 3507)

BSc. Hons (Earth Science), Grad. DipSc. (GIS)

1, 6, 11, 22

Full time

Mr RF Gaelejwe

SACNASP (400207/14)

BSc. Hons (Geol), PgDip, EMBA

All

Full time

Mr T van Dyk

SACNASP, GSSA

BSc. Hons (Geology)

1, 9, 11.3 - 11.6, 12, 22

Full time

Mr W De Wit

N.D.T. Mine Surveying, Mine Surveyors Certificate of Competency No 1605

1, 3,5, 16.3

Full time

This TRS is the first filing of such a document with the SEC. This TRS has an effective date as at 30 June 2022.

No material changes have occurred between the effective date and the date of signature.


Effective Date: 30 June 2022 7


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

3.Property Description

Section 229.601(b)(96) (3) (i-vii)

Kalgold is located at latitude 26°10.0’S and longitude 25°14.5’E, 55km southwest of Mahikeng, between Mahikeng and Stella, along the Mahikeng-Vryburg road (N18) in North West Province, South Africa (Figure 3-1). The Kalgold Mine is serviced by well-maintained sealed roads with good access to all nearby towns and cities. The mine is surrounded by farmland and the closest community is at Kraaipan, approximately 15km to the south of the mine. The Kalgold Mine has been in operation since 1997 and is the only significant mining operation in the region.

3.1Mineral Tenure

South African Mining Law is regulated by the MPRDA which is the predominant piece of legislation dealing with acquisitions or rights to conduct reconnaissance, prospecting, and mining. There are several other pieces of legislation which deal with such ancillary issues such as royalties (MPRDA), title registration (Mining Titles Registration Act, 1967), and health and safety (Mine Health and Safety Act, 1996).

The Kalgold Mining Right, which encompassed 615ha, was successfully converted, executed, and registered as a New Order Mining Right on 24 February 2015 as MR12/2015 under Mining Right Protocol 574/2008. A Section 102, in terms of the MPRDA, to include portions of the farms Goldridge 632 IO and Ferndale 544 IO was executed on 9 November 2010 under Mining Right Protocol 774/2010.

The Mining Right now encompasses 988.23ha (Figure 3-2, Table 3-1). The mining right was issued for a period of 30 years, expiring on 27 August 2038, and Kalgold has the exclusive right to renew the right for a further 30 years. The Kalgold mineral rights are held by Harmony (Table 3-1, Figure 3-2). Under the MPRDA, Harmony is entitled to apply to renew the mining right on its expiry. At the effective date, Harmony was still preparing to re-submit the Section 102 application refused by DMRE in 2021. These Prospecting Rights will be an extension to the current Mining Right.

Table 3-1: Summary of Mineral Rights for Kalgold

Licence Holder

Licence Type

Reference No.

Effective Date

Expiry Date

Area (ha)

Harmony Gold Mining Company Limited

NW30/5/1/2/2/77 MR

26-Aug-08

27-Aug-38

988.23

NW30/5/1/1/2/863 and 1469 PR

New prospecting application to be lodged

35,031.00

Notes: MR - Mining Right, PR - Prospecting Right

There is no material litigation (including violations or fines) against the Company which threatens its mineral rights, tenure, or operations.

3.2Property Permitting Requirements

Kalgold is located on a site that has been operational for approximately 39 years. The surface rights in the Kalgold area were previously held by Shamrock Mining and Prospecting Company (“Shamrock”), a wholly owned exploration and development subsidiary of Shell Limited (“Shell”). Harmony has access to all the properties it requires to conduct its current mining activities. The surface lease and surface right areas are sufficient in size and nature to accommodate the required surface infrastructure to facilitate current and planned mining and processing operations. There are no land claims or other legal proceedings that may have an influence on the rights to mine the minerals.


Effective Date: 30 June 2022 8


			Technical Report Summary for Kalgold Mine, North West Province, South Africa


Figure 3-1: Location of Kalgold

Figure 3-2: Mineral Tenure of Kalgold


Effective Date: 30 June 2022 9


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

4.Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

4.1Accessibility

Kalgold is located adjacent to the N18 National Road and can be reached via the local R49 road between Mafikeng and Vryburg (Figure 3-1). The mine is surrounded by farmland. The closest community is at Kraaipan, approximately 15km to the south of the mine. Access to the mine is restricted by security fencing, security guards, booms, and lockable gates at the main entrance. In addition, a communication system and access control system monitors personnel entering and leaving the mine property.

4.2Physiology and Climate

Kalgold is situated approximately 1,250 metres above sea level (“masl”) on the south eastern edge of the Kalahari Desert. The topography around the area is generally flat to low undulating country with outcrops rare and commonly confined to low ridges and hillocks. Much of the mine area is covered in bright orange-red Kalahari sands which progressively get deeper to the north and south of the operation. A significant paleo-channel cuts the mine site to the south and another to the north of the operation.

The area comprising farmlands are devoted to cereal production and cattle farming. However, there are belts of natural vegetation present which are considered part of the Savannah Biome and forms part of the Semi-arid Bushveld. The vegetation comprises Kalahari Thornveld and shrub Bushveld which is dominated by grasses and open forest comprising trees from the genus Acacia.

The climate is in a region that is considered as sub-tropical steppe climate, synonymous to a sub-tropical desert which is hot and dry. The winters are characterised as cool to mild, experiencing a daily mean temperature of approximately 16°C and the summers are characterised as hot and humid, experiencing a daily mean temperature of approximately 31°C. The average annual rainfall for the area is approximately 100mm - 550mm, the majority of which falls during the months of November to February. The months of May through to September rarely see rain. The average annual precipitation for the area is approximately 37mm. The wettest month experienced is February (~80mm). Rain occurs during only 17.2% of the year, while no rainfall is received for 82.8% of the year. However, the Kraaipan area can experience rare occurrences of heavy rainfall which can result in a brief stoppage of the open pit mining activities. There is no other specific climatic risks which affect the property.

4.3Local Resources and Infrastructure

Infrastructure in the region is well established. Kalgold Mine is serviced locally by well-maintained sealed roads with good access to all nearby towns and cities. The regional infrastructure includes national and provincial paved road networks, power transmission and distribution networks, water supply networks and communication infrastructure. Schools, clinics and hospitals are readily available in the surrounding areas. The mine personnel are typically sourced from local communities e.g., Ratlou local municipality, in which they reside in.

Operations are powered by electricity from Eskom Holdings State Owned Company (“SOC”) Limited. More detailed information on Kalgold infrastructure can be seen in Section 14.2.

Ore and waste material are transported separately, with ore being trucked from the pit to the plant ROM pad, and waste rock going to the mines waste dumps. Marginal and low-grade ore is transported by truck and stockpiled for future processing. Kalgold has its own processing plant situated adjacent to the mine.


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5.History

Section 229.601(b)(96) (5) (i-ii)

5.1Historical Ownership and Development

Kalgold was previously known as Shamrock, formed in 1982 as a wholly owned exploration and development subsidiary of Shell.

Exploration of the Kraaipan Greenstone belt by Shell, began in the 1980s. In 1994, West Rand Consolidated Mines (“WRCM”) acquired Shamrock. The company changed its name to Kalgold in May 1996 and was listed on the Johannesburg Stock Exchange on 14 October 1996, via an issue of 18.4% of the shares of the company, as a dividend in specie, to shareholders of WRCM.

Harmony acquired Kalgold in July 1999. The historical ownership and associated activities related to Kalgold are summarised in Table 5-1.

Table 5-1: Summary of Historical Ownership Changes and Activities of Kalgold


Year			Asset History Highlights
1982			Formed by Shamrock, a wholly owned exploration and development subsidiary of Shell.
1987 - 1994			Shell conducted extensive exploration work in the Kraaipan region. In 1991, the D Zone one area was discovered on the Goldridge farm.
1994			Shamrock was acquired by West Rand Consolidated Exploration Limited, a subsidiary of WRCM.
1994 - 1996			WRCM intensified exploration work. Mining commences in the D-Zone, in December 1995.
Jan-96			Construction of the crushing plant and phase 1 of the metallurgical extraction plant, consisting of the heap leach and gold recovery section, began.
May-96			WRCM changed its name to Kalahari Goldridge Mining Company Limited (“Kalgold”).
Jul-96			Planned mine infrastructure activities are completed and the first gold is produced.
Oct-96			Kalgold listed on the Johannesburg Stock Exchange (JSE), via an issue of 18.4% of the shares of the company as a dividend in specie to shareholders of WRCM.
Dec-96			The D-Zone open pit was exposed to a maximum depth of 25m below surface. The plant ore processing capabilities averaged at approximately 70ktpm. 174kg of gold was produced from approximately 345kt of low-grade and near-surface heap leach ore.
Mar-97			Mills are installed and the plant ore processing capabilities was increased to an average of approximately 90ktpm.
May-97			Construction commenced on the second phase of the processing facility which included an 80ktpm carbon-in-leach (“CIL”) plant and associated Tailings Storage Facility (“TSF”).
Jan-98			The second phase of the construction was fully commissioned. The throughput in the heap leach facility was reduced.
Jul-99			Harmony acquires Kalgold.
2003			A third mill was added to increase treatment capacity.
2012			A Mineral Resource model was constructed by ExplorMine Consultants.
2017 - 2019			Exploration drilling supported improvements in significantly expanding the understanding of the deposit, upgraded the Windmill and A Zone south extension (Henry) pit Mineral Resources, and provided insightful data to the areas between the A-Zone and Watertank Zone (current mining), known as the Bridge Zone.
2018			A new Mineral Resource model was generated by the Harmony South East Asia team. The model included the updated drilling database based on the exploration drilling, and an updated geological and oxide model based on new drilling information.
2019			The Mineral Resource model was updated by the Harmony South East Asia team. The model included the updated drilling database based on additional exploration drilling and updated implicitly geological and oxide models.
2022			Harmony team updated the Mineral Resource model using Datamine. The model included the updated drilling database based on additional exploration drilling and geological limb models.


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5.2Historical Exploration

Historical technical investigations which led to the discovery of the Kalgold deposit include detailed geological mapping, soils sampling, geotechnical sampling and geophysical surveys, followed by drilling and metallurgical testwork. A total of 142,710m of exploration and evaluation drilling was completed within the area and on surrounding properties in the periods 1987 to 2017. Historical drilling completed by previous owners is summarised in Table 5-2 and includes air core (“AC”), percussion, reverse circulation (“RC”) and diamond core (“DD”) drilling. Much of the deeper historic drilling has been focused on the D Zone Pit which has been mined out.

Table 5-2: Summary of Historical Drilling at Kalgold


Year	Company	No. Drill Holes	Drill Hole ID	Diamond Drill Hole (m)	Percussion Drill Hole (m)	AC or RC (m)	Assay Lab
N/A	Various	2,805	ARC Series, CRC series, GDP Series, DD series, ADD Series, SDD Series, SPD Series, WDD	18,167	71,820	21,240	N/A
1990	Shell	11	GDP1-GDP11	-	300	352	N/A
1991	Shell	43	GDP12-GDP76 DD1-DD5	933	1,514	845	N/A
1992	Shell	6	GDP253-GDP259	-	150	-	N/A
1993	Shell	3	GDP331-GDP333	-	-	183	-
1995	WRCM	18	GDP377-GDP404 DD18-DD21	487	101	175	N/A
1996	Kalgold	1	GDP415	-	-	77	N/A
1997	Kalgold	63	GDP440-GD600	-	1,783	5,870	N/A
1998	Kalgold	1	GDP589	-	-	528	N/A
1999	Harmony	46	GDP602-GD647	588	879	5,132	N/A
2000	Harmony	1	WB98	-	-	150	N/A
2001	Harmony	17	GDP648-GDP664	-	-	1,853	N/A
2002	Harmony	37	GDP668-GDP707	8,200	-	234	N/A
2003	Harmony	6	GDP710-GDP716	1,150	-	295	N/A
2017	Harmony	34	KG001-KG037	4,935	3,934	-	SGS
2018	Harmony	97	KG029 - KG126	25,194	4,952	-	SGS
2019	Harmony	81	KG127 KG204	3,173	7,370	-	SGS
2021	Harmony	142	KG205-KG344	101	16,135	-	SGS
Total		607		62,928	108,938	36,934
Notes: Lab - Laboratory

5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous Mineral Resource estimate for Kalgold was reported by Harmony on 30 June 2021 in accordance with the SAMREC Code. The Mineral Resource estimates are updated annually by Harmony, assisted by Harmony South East Asia, to incorporate the latest exploration drilling information. The previous Mineral Resource estimate exclusive of Mineral Reserves is presented in Table 5-3. The inferred portion of the Mineral Resource includes the historical Surface tailings of 6 263Kg (0,201Moz).


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Table 5-3: Summary of the Previous Kalgold Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	3.683	0.73	2,687
Indicated	56.090	0.83	46,438
Total / Ave. Measured + Indicated	59.773	0.82	49,125
Inferred	28.184	0.32	9,022
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	4.060	0.029	0.117
Indicated	61.829	0.025	1.522
Total / Ave. Measured + Indicated	65.888	0.025	1.639
Inferred	31.068	0.009	0.290

The previous Mineral Reserve estimate for Kalgold was declared by Harmony on 30 June 2021 in accordance with the SAMREC Code. Modifying Factors were considered and applied to the Mineral Resource to arrive at the Mineral Reserve estimate. These factors included the cut-off grade, the mine call factor (“MCF”), dilution, and the plant recovery factor. The previous Mineral Reserve estimate is summarised in Table 5-4 and has been superseded by the current estimate prepared by Harmony as detailed in Section 11 of this TRS.

Table 5-4: Summary of the Previous Kalgold Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proven	6.058	0.93	5,653
Probable	12.455	1.12	13,976
Total / Ave. Proven + Probable	18.513	1.06	19,629
IMPERIAL
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	6.678	0.027	0.182
Probable	13.729	0.033	0.449
Total / Ave. Proven + Probable	20.407	0.031	0.631

5.4Past Production

The opening up of the D Zone pit commenced in December 1995. By December 1996, ~2.1Mt of overburden waste material had been moved, to gain access to the D-Zone orebody and approximately 345kt of low-grade and near-surface heap leach ore was treated. Plant construction activities started at the Kalgold site in January 1996, with the crushing plant and Phase 1 of the metallurgical extraction plant. By 30 July 1996, when the first gold was poured, the mine infrastructure was complete.

Ore was treated by heap leaching until the installation of the first two mills in 1997. The mill rate built up to more than 90ktpm by the end of the first quarter of 1997. In May 1997 construction work commenced on the second phase of the processing facility which included an 80ktpm CIL plant and associated tailings disposal facility. In 1998, when the mill and CIL plant were fully commissioned, throughput in the heap leach facility was reduced to 50ktpm. In 2003, a third mill was added to increase treatment capacity. The D Zone pit was mined out in 2009.

Past production for Kalgold is presented in Figure 5-1 and Figure 5-2.


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Figure 5-1: Graph of Kalgold Production History – Tonnes and Grade

Figure 5-2: Graph of Kalgold Production History – Gold Produced


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6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii)

6.1Regional Geology

The Kaapvaal Craton of southern Africa hosts many of the region's economic mineral deposits. The craton has been subdivided into four sectors, namely the Eastern, Central, Northern and Western Terranes. The Western Terrane hosts the KGB, Amalia, and Madibe greenstone belts, and their southerly extensions. It is also host to the Gaborone Granite Complex to the north, which intrudes the Archaean granite-greenstone basement in south-eastern Botswana (Poujol et. al, 2002).

The Kalgold deposit is located within the KGB. The KGB has received significantly less geological attention when compared to the Murchison and Barberton greenstone belts, situated in the Northern and Eastern Terranes, respectively (Hammond and Moore, 2006). Investigations conducted in the region indicated that the KGB extends approximately 250km, in a north-south direction, from southern Botswana into South Africa (Hammond and Moore, 2006) (Figure 6-1). In the north, the KGB is subdivided into three narrow, sub-parallel north-to northwest-trending belts, spaced at 30km - 40km intervals, namely the western (Stella), central (Kraaipan) and eastern (Madibeng) belts.

The KGB, consisting of metamorphosed mafic volcanic rocks and interlayered metasediments (mainly gold-hosting BIFs, jaspilite’s and ferruginous chert), are exposed as discontinuous outcrops of steeply dipping units beneath cover sequences comprising mainly late Archean volcanic rocks of the Ventersdorp Supergroup and a blanket of Tertiary-to-Recent Kalahari sands. A variety of granitoid rocks (ranging from tonalitic and trondhjemitic gneisses through to granodiorite – monzonite) intruded the KGB. This age relationship was based upon whole-rock lead dating of the BIFs which yielded an age of 3,410Ma (±61Ma – 64Ma).

The lack of exposure has made mapping of the KGB difficult. However, subdivisions of the Kraaipan Group have been proposed for the region on the basis BIFs and chert exposures (SAC, 1980). The Kraaipan Group consists of three formations, namely the Khunwana, Ferndale and Gold Ridge formations. The Gold Ridge Formation is the oldest of the three and contains gold hosting BIFs (Anon, 2017).

6.2Local Geology

The Kalgold deposit occurs within the central (Kraaipan) belt (Figure 6-1), which comprises steeply dipping gold-hosting BIFs interbedded with magnetite quartzite, chert, greywacke, shale, and schist (Figure 6-2). BIFs are rhythmically banded chemical sediments comprising alternating light and dark laminae, which vary from 10mm - 50mm in thickness (Hilliard, 1996). The assemblage is surrounded by intrusive granites and gneisses. These rocks have a complex history of deformation, which includes folding, thrusting, faulting, and shearing. Several large dykes with a predominant east-west trend have intruded the rocks.

6.3Property Geology

The geology of the Mining Right area and its immediate vicinity is characterized by ferruginous chemical and clastic sediments interbedded with meta-lavas and non-ferruginous metasedimentary rocks. Outcrops in the area are sparse and generally restricted to the ferruginous rock types which are more resistant to erosion. The Kalahari Sand cover ranges from 2m - 12m thick. Magnetite quartzite and clastic sediments form a low ridge to the west of the lease area. Eastwards of this unit the iron-rich rocks generally comprise chemical sediments represented by magnetite-rich BIF, cherty BIF, and banded chert. These units are interbedded with mafic schist, greywacke, and sparse black shale (Mathe and Hilliard, 1998).

Kalgold comprises five discrete mineralised zones, namely D Zone, A Zone, Watertank, Windmill and A Zone south extension (Henry) (Figure 6-3), which are all hosted in BIF. The Bridge Zone and Spanover Zone also exist at Kalgold and occur amongst the aforementioned zones. The geology of the D Zone is used as a benchmark at Kalgold. The previous mining activities have provided extensive geological information of the deposit. Pits are now well established in the A Zone and Watertank areas. However, the geology does not vary significantly from that found at D Zone. Deposit thickness ranges up to 45m, and the main line of lode containing the D Zone, A Zone and Watertank Zone extends over 4.5km of strike.


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Figure 6-1: Regional Geology of the Kraaipan Greenstone Belt
Source: after Anhaeusser & Walraven, 1999


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Figure 6-2: Local Geology of Kalgold

Figure 6-3: Property Geology of Kalgold


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The D Zone is hosted by a sheared, cherty-BIF with associated silicification and carbonate alteration. The gold mineralisation occurs within blebs, veins, and disseminations of pyrite and pyrrhotite, which are oxidized, to goethite near surface. This zone dips 70° east, and has a strike length of 1,500m, varying in width between 15m - 45m. The footwall rocks predominantly comprise chloritic schist with subordinate BIF and carbonaceous shale. Carbonaceous shale and greywacke are exposed in the hanging wall.

The A Zone occurs to the north of the D Zone at a similar stratigraphic position. It is a composite, consisting of several mineralised cherty BIF units that are interbedded with schist and shale and is referred to as the east limb in Figure 6-4. Due to shearing in the pillow basalts between the two BIF lenses, the central schist unit thins out and both west and east limbs are very close to each other in the A Zone pit. The A Zone has an overall strike length of 850m and comprises individual zones of mineralisation which are steeply dipping and have strike length that ranges from 200m - 500m. The width of these mineralised zones or mineralised limbs range between 15m - 70m.

A section through the A Zone from the June 2019 geological model (Figure 6-4) shows the east and west limbs. The east limb and west limb are separated by a zone of sericite-chlorite schist with intercalated shale and phyllite that pinches out to the north. The A Zone west limb is situated in the footwall of the A Zone, and is separated by a chloritic schist unit that pinches out to the north. The A Zone west limb has an overall strike length of 750m and width of 20m thinning to the north.

The geology associated to the Watertank pit is a long narrow more northerly striking, hoisted by cherty BIF and is in the northern extension to the A Zone east limb mineralised BIF. The host rock BIF is steeply dipping and has a strike length of 1,200m and an average width of 45m. The mineralised zones within this unit ranges from 2m - 12m in width. Recent drilling has shown an extension of this BIF to the north, where it has intersected significant intervals of mineralised BIF. This area has been termed the Watertank North. A section through the Watertank Zone from the 2019 geological model is presented in Figure 6-5.

The Windmill Zone represented in Figure 6-6, is the smallest of the Kalgold zones but contains generally higher gold grades. It sits stratigraphically below the other three mineral zones and is hoisted by a magnetite-rich BIF unit with interbedded schist units. The host rock BIF has a strike length of 950m and thins to the north and south with a maximum width of 25m in the centre. Mineralisation within this zone occurs over a length of 800m with widths ranging from 2m - 17m and is structurally complex with displacements by faulting and dips varying from 75° - 90° east.

6.3.1Lithology

The lithological sequence at the Kalgold Mine area is grouped as follows:

•footwall mafic, including metabasaltic rocks and chlorite schist;

•package of interbedded shale and BIF; and

•hanging wall metasediments comprising a succession of metamorphosed chert, conglomerate, and greywacke.

A schematic stratigraphic column of the immediate Kalgold Mine is presented in Figure 6-7 showing the thin BIF units spaced between a significant package of mafic volcanics, capped by the deep water greywacke units. The mafic volcanics show significant evidence of pillow basalts indicating these are possibly deep water volcanics, the BIFs being chemical sediments, all capped by nearer shore sedimentary package.

6.3.2Structure

The KGB within the Kalgold Mine region is strongly deformed with consistent uniform regional fabric striking ~340° and dipping 65° - 70° east (Hilliard, 1996; Wilson, 1996; Moore, 1999; Hammond and Moore, 2016). The earliest tectonic fabric developed in the area, is a bedding parallel foliation defined, aligned with phyllosilicate and carbonate grains (Hilliard, 1996; Hammond and Moore, 2006). This foliation is best developed in the footwall schists and phyllites but is also evident in the BIF units as a strong slaty cleavage.

Mineral lineations are defined by elongate quartz and sulphide grains, strained clasts in the conglomerates and rods in the BIF. They have an average plunge of 67° towards 108° (Hilliard, 1996; Hammond and Moore, 2006).


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Figure 6-4: Cross Section Through A Zone Pit

Figure 6-5: Cross Section Through Watertank Pit


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Figure 6-6: Cross Section Through the Windmill Pit

Figure 6-7: Schematic Kalgold Stratigraphy


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Small scale isoclinal folds are common in the schist and BIF, and have axial planes dipping 61° - 64°, subparallel to the foliation. The axes of the isoclinal folds are subparallel to the mineral lineations (Hammond and Moore, 2006). Large open folds extend along the entire length in the north-south direction, with subvertical axial planes and fold axes plunging steeply to the east (Hilliard, 1996; Hammond and Moore, 2006). These open folds appear to have a significant impact on the contacts of the BIFs.

Late northeast to east-northeast trending faults is present cutting across the stratigraphy with visible fault offsets of 10s - 100s of metres (Wilson, 1996). Many of the late northeast to east-northeast striking dolerite dykes follow these structures (Wilson, 1996). In many areas, the dykes show evidence of minor shearing and foliation development that indicate and pre-date the last ductile deformation event. The BIF displays centimetre-scale boudins in some mineralised sections that are defined by orthogonal fracturing of Fe-rich and siliceous bands commonly filled with quartz and carbonates (Hammond and Moore, 2006).

6.4Mineralisation

Gold mineralisation at Kalgold is BIF-hosted. The BIFs are oxidized to a depth of approximately 40m below surface. Near surface the material is red and porous, composed of quartz, hematite, and goethite with minor magnetite. At depth the unaltered BIF consists of quartz, siderite, pyrite, pyrrhotite and magnetite with minor chlorite, calcite and stilpnomelane. In general, gold mineralisation has an erratic and localized distribution. Individual gold grains are on average less than 10µm in diameter and occur in clusters. Gold is generally associated with goethite in the weathered rocks and with pyrite and pyrrhotite in the fresh material.

Hammond (2002) established that the gold mineralisation is associated with two generations of sub horizontal quartz-carbon veins oriented approximately 20° - 40° west. The first generation consists of ladder vein sets preferentially developed in iron-rich mesobands, whilst the second generation consists of large quartz-carbon veins, which cut across the entire deposit, extending into the footwall, and hanging wall in places. Hammond (2002) indicated that major structures that control the mineralisation are related to meso-scale isoclinal folds with fold axes sub-parallel to mineral elongation lineation. Gold is closely associated with sulphides, mainly pyrite and pyrrhotite and to a lesser extent, bismuth telluride and carbonate gangue. The ore fluid responsible for gold deposition is a carbon-oxygen-hydrogen system with increased methane content attributed to localized hydrolysis reactions between interbedded carbonaceous sediments and ore fluid (Hammond, 2002; Hammond and Moore, 2006).

The mineralisation at Windmill South is strongly associated with sulphide replacement within the magnetite-rich BIF unit. These zones of sulphide replacement appear to be more structurally controlled compared to the mineralisation in the eastern and western limbs at Watertank and A zone pits, respectively. Mineralised veins and thin open fractures formed through crystallisation of hydrothermal fluids in a brittle structural environment. Alteration and mineralisation of the Kalgold deposit has been described by several previous workers and the paragenesis and associated mineral assemblages are described in detail by Hammond 2002, amongst other scholars.

6.5Deposit Type

The Kalgold deposit is a BIF hosted lode gold deposit of a type typical throughout Archean greenstone belts across the world. Gold is precipitated through the sulphidation of iron rich BIF host rock due to late movement of retrograde fluids during the later stages of deformation.

6.6Commentary on Geological Setting, Mineralisation and Deposit

The Kalgold geological model is not complicated, being based on the stratigraphy as determined through the mining and drilling.

The geological model has been well tested through years of mining and exploration drilling.

New drilling does not result in significant changes to the geological model, which has remained relatively unchanged for many years. Drilling undertaken on the Kalgold deposit to the current effective date of 30 June 2022, has confirmed this model. Continuous mining activities have also resulted in a relatively high level of confidence in the nature of the Kalgold mineralisation and its association with the cherty BIF horizons.


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7Exploration

Section 229.601(b)(96) (7) (i-vi)

During 2017 to 2019 surface exploration drilling commenced to both infill the current Mineral Resource areas, to identify additional potential mining targets. Drilling is currently targeting the Bridge Zone, A Zone south extension (Henry), Windmill, and the area known as the Spanover Boarder. The Spanover Boarder is in the footwall of the Watertank Zone.

7.1Aeromagnetic Survey

The Mining Right area is covered by a high resolution aeromagnetic and radiometric survey completed by Xcalibur Airborne Geophysics in September 2012. The survey comprised 7,680 line-km over a 47km x 8km area of the KGB at a line spacing of 50m and nominal flying height above ground of 30m. The aeromagnetic data provided detail of the magnetite bearing horizons, structural offsets to stratigraphy and intrusive bodies at a local scale. However, it was not able to differentiate mineralised from non-mineralised BIF units.

7.2Geological and Topographical Mapping

Several geological maps of the Kalgold Mine exist but they are relatively simple and sparse as much of the area is covered in Kalahari sands with very little outcrop. Therefore, reliance was largely placed on geophysical interpretation rather than ground mapping. The topography has been generated from surveyed pickups and traditional air photo mapping methods. New DTMs have recently been generated from shuttle radar topography mission data. Some detailed mapping results for the Windmill Zone has also been incorporated into the geological mapping.

7.3Surface Drilling Campaigns, Procedures, Sampling, Recoveries and Results

The location of the drilling from 2017 to 2019 is indicated in Figure 7-1. Drill holes flagged as Not Recorded (“NR”) are generally assumed to be either AC, as in the case of shallow drill holes, or RC for the deeper drill holes. Surface drilling at Kalgold has:

•indicated significant extensions to the Mineral Resource area;

•expanded significantly on an understanding of the Kalgold deposit;

•upgraded the Windmill and A Zone south extension (Henry) pit Mineral Resources; and

•infilled the areas between the A Zone and Watertank Zone (current mining), known as the Bridge Zone.

A combination of RC only and RC pre-collars with DD tails (“RCDD”) was completed during the exploration drilling programme. The depth of the RC drill holes and pre-collars varied depending on the target depth, the depth and amount of groundwater, and the penetration rate. If penetration rates of the RC drilling decreased materially, or if groundwater inflows prevented the collection of a dry sample, then the drill hole would be continued with a DD tail. In some cases, in the hanging wall units where mineralisation was not intersected, the RC pre-collars were continued through zones of groundwater and associated wet samples to achieve the planned pre-collar depth prior to commencing the DD tail.

7.3.1AC and Percussion Drilling

Part of the historic drilling at Kalgold comprised very shallow, regional AC or percussion drill holes.

AC drilling uses blades and compressed air to obtain a sample of the top unconsolidated or semi-consolidated cover and regolith. AC drilling technique was previously used to identify presence of BIF under cover and guide exploration activities.

Percussion drilling uses hammer and compressed air to deliver samples to surface. Since the sample travels between the rods and the walls of the hole it becomes contaminated with the rocks overlying the sampled horizon. This drilling technique has not been used at Kalgold with the exception of pre-collars being drilled


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through the overburden for the diamond boreholes. No AC or percussion data has been used in the evaluation of the deposits.


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Figure 7-1: Location of Kalgold Targeted Exploratory Drilling in Relation to the Mining Pits (2017 - 2019)


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7.3.2RC Drilling

The 2017 RC drilling was completed by Van Zyl Boorwerke drilling contractors a using a HDM400 rig with Atlas Copco compressor and booster. The RC drill holes were drilled with a 5.5-inch face‐sampling bit. The 2018 – 2019 RC drilling was completed by Major Drilling using a Hanjin DB36 multipurpose rig. RC drill holes were drilled using either a 4.5 inch or 5.5 inch face sampling bit. The inclined RC drill holes, generally varying between 60° - 70°inclinations, were drilled ~50m apart and 100m on spaced lines along strike, with infill drilling stepping this down to 50m line spacing. The down dip separation of mineralised intersections was planned at c.20m - 25m.

The infill RC drilling at selected targets re-commenced in October 2020 following a hiatus due to COVID19. This drilling was carried out by Torque Exploration using Thor 5000 and Thor 8000 rigs with Kirloskar 1200cfm compressor and Hurricane 1400cfm booster. Holes were drilled with RC 5,5-inch face sampling bit and sampling was done using rotary cone splitter.

A total of 75 boreholes covering 9,817m were drilled for the period to 30 June 2021 (Figure 7-2). Drilling focused on potential Mineral Resource extensions as well as testing the areas earmarked for infrastructure development.

7.3.3Diamond Core Drilling

The 2017 DD was completed by Van Zyl Boorwerke using two HR6 and one Everdighm diamond rigs. All drill cores were orientated using ACT III digital core orientation tool. Drilling contractors were changed during December 2017 and Major Drilling commenced operation using Hanjin DB36 multipurpose drill rigs to continue the programme. Van Zyl Boorwerke completed RC drilling for drill holes KG001 - KG037 and DD up to KG029. Major Drilling completed all RC drilling from KG038 onwards and all diamond drilling from KG033 onwards. Major Drilling utilised HQ (63.5mm), NQ2 (50.6mm) and NQ3 (45.0mm) core sizes in the drilling completed to the current effective date of 30 June 2021.

7.3.4Drilling Results

Results for the 2017 to 2021 drilling programme are presented in Table 7-1. Only the weighted average gold grade for the drill holes completed from 2017 to 2021 are summarised. Historical results are too voluminous to report. However, they have been included in the estimation of the current Mineral Resources.

Table 7-1: Summary of Drilling Results


Year	Company	Drill Hole ID	No. Drill Holes		Gold Grade (g/t Au)	Thickness (m)
2017	Harmony	KG001-KG037	34		1.36	16.44
2018	Harmony	KG029 - KG126	97		1.45	15.28
2019	Harmony	KG127 KG204	81		2.44	13.60
2021	Harmony	KG205-KG344	142		1.54	10.40
Total				354

7.3.5Collar and Downhole Surveys

Collar surveys are completed by the Kalgold Mine survey department. Planned collar coordinates are surveyed using a hand-held Global Positioning System ("GPS"), Trimble R8 RTK GPS. The coordinate system used is the Cape Datum and the Clarke 1880 Ellipsoid. The original coordinates are stored in a database along with the transformed coordinates to WGS84 Zone 35S. The accuracy of collar surveys is ±0.1m.

Downhole surveys are completed by the drilling contractor. Due to the magnetic nature of the BIF units, downhole surveys are taken using a reflex gyro survey tool. Downhole surveys are typically completed at the end of the RC pre-collar and/or at the end of the DD. A survey reading is taken every 10m from the end-of-hole depth to the collar position. Interim downhole surveys are completed at times during drilling in cases where the drill hole deviation is required to be monitored against the planned drill hole path. In cases where sections of the drill hole are surveyed separately, a 20m - 30m overlap between the surveys is completed to ensure robust survey checks.


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Figure 7-2: Location of Kalgold Drill Holes (2020-2021)
Source: Google Earth Image Date June 2019


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7.3.6Sample Length and True Thickness

In areas where drill holes intersect the deposit at obtuse angles, the sampled width is corrected for true thickness using the angle of intersection and the drilled width. The true thickness is used for modelling and reporting purposes if required. .

7.3.7Logging Procedure

At completion of drilling, all DD cores and RC chip trays are transported to the Kalgold core shed where they are logged. All logging is undertaken by suitably experienced or qualified Kalgold geologists. All RC chip samples are geologically logged at 1m intervals and the results captured into the LogChief logging system. Geological attributes logged include lithology, weathering, veining, mineralogy colour and magnetic susceptibility.

DD cores are logged, with the geological attributes captured including lithology, alteration, veining, mineralogy, weathering, structural zones, orientated structure, specific gravity, colour, and magnetic susceptibility. All core is logged regardless of its mineralisation status. The DD core results are also captured into the LogChief logging system. Basic geotechnical logging of the DD core comprises logging of two key attributes, namely core recovery and Rock Quality Description (“RQD”).

Drill core photography is conducted at the core shed, with all core trays photographed and documented before logging and sampling occurs. The details of the logging were sufficient for use in the Mineral Resource estimation and in technical studies.

7.3.8Core Recovery

During RC drilling, weights are recorded for the bulk and split samples over the 1m interval along with the condition of the sample, whether it is dry, moist, or wet. Bulk sample weights are monitored to indicate potential intervals of poor recovery, although variation in sample weights is also associated with changes in weathering and lithology/mineralisation. Comparison of sample recovery and gold grade does not indicate any sample bias nor any preferential loss or gain in the RC samples.

For DD holes, recovery of the drill core is assessed for each ‘run’ with the length of core recovered physically measured by the geologist or field assistant using a tape measure and compared to the drilled length as recorded by the driller for the corresponding run. The driller records the run information on the shift run sheet and the details on each core block which is placed in the core tray at the end of each run.

The measured recovery data is captured by the geologist or field assistant in LogChief and synchronised to the main database. Core recovery was calculated as a percentage recovery. Typically, recoveries >95% have been achieved at Kalgold, with minimal core loss recorded in some strongly fractured zones associated with faulting.

Experienced drillers are employed by the drilling contractor to oversee and manage the drill rig to ensure maximum recovery is achieved. Core recovery and grade have been reviewed and there is no correlation between them which would lead to a bias in the sample results. Additionally, RQD versus gold shows that the gold mineralised zones generally have good quality core.

7.4Hydrogeology

Harmony has conducted several specialist studies and the risk of surface decant due to rising groundwater levels has been obviated for Kalgold. However, in capturing and analysing geological data, a secondary function is to subsequently understand and assess the mineralisation and groundwater potential in the area. The semi-arid nature and rainfall patterns associated to the Kraaipan climate, currently do not pose any significant risks to the Kalgold Mine.

Nevertheless, in hard rock environments such as Kalgold, it is worth noting that deep saturated fractures in bedrock are also potential sources of groundwater and dykes are also known preferential pathways for groundwater. These deeper lying geological features, with the combined low risk potential of a rainy season, can pose a risk to the mining operations. Risks associated to the accumulation of groundwater is managed through a planned pumping strategy, driven by the Kalgold Engineering Department.


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7.5Geotechnical Data

The slope design used in the Kalgold pit optimisation process was informed by the geotechnical analysis. A total of nine core holes were drilled for the purpose of collecting geotechnical data. Four holes were drilled in the A-Zone, Henry and Watertank Zone.

Two holes were drilled in Watertank North, and three holes were drilled in Windmill. Geotechnical zones were classified based on the fresh rock types, with the weathered zone was classified as a separate geotechnical zone based on the depth of weathering. The Rock Mass Ratings (“RMR”) and Modified Rock Mass Ratings (“MRMR”) was classified as Fair to Good across the different rock types in all nine holes, and only the weathered zone was classified as Poor.

A total of 45 samples was sent to Rocklab in Pretoria for the uniaxial compressive strength (“UCS”) and tensile strength testing, which included 15 samples from the hanging wall, 15 samples from the orebody and 15 samples from the footwall, for the A Zone, Henry and Watertank pits. A total of 20 samples was sent to Rocklab in Pretoria for the UCS and tensile strength testing, which included 7 samples from the hanging wall, 7 samples from the orebody and 6 samples from the footwall, for the Watertank North pit.

A total of ten samples was sent to Rocklab in Pretoria for the UCS and tensile strength testing, which included seven samples from the hanging wall and three samples from the orebody, for the Windmill pit. Rock samples analysed at Rocklab presented findings as shown in Table 7-2.

In addition, six samples of discontinuities were taken from the drill core of the hanging wall, BIF and footwall and were sent for shear strength testing, for the A Zone, Henry, Watertank and Watertank North pits; while two samples of discontinuities were analysed for Windmill pit. The results for these peak strengths are shown in Table 7-3. The use of the geotechnical data related to Kalgold mining is discussed in more detail in Section 13.

Table 7-2: Summary of Geotechnical Drilling Results


Area		No. Samples	Min. Tensile Strength (Mpa)	Avg. Tensile Strength (Mpa)	Max. Tensile Strength (Mpa)	No. Samples	Min. UCS (Mpa)	Avg. UCS (Mpa)	Max. UCS (Mpa)
A Zone, Henry and Watertank	Hanging wall	14	8.0	15.0	20.8	15	74.1	119.0	180.7
	Orebody	12	8.0	15.0	21.8	15	50.6	142.0	283.3
	Footwall	18	6.7	13.0	17.8	15	68.3	96.0	156.7
Watertank North	Hanging wall	7	6.3	12.2	19.5	7	24.2	53.0	82.8
	Orebody	7	9.3	12.6	18.7	7	120.4	191.5	249.4
	Footwall	6	9.4	13.1	19.3	6	32.0	69.0	95.7
Windmill	Hanging wall	7	3.8	12.2	20.5	7	12.6	116.0	197.7
	Orebody	3	5.9	13.7	29.1	3	56.5	118.0	204.3
Total		74				75

Table 7-3: Geotechnical Drilling Results - Shear Strength Tests


Area		Cohesion (kpa)	Joint Friction Angle (°)
A Zone, Henry and Watertank	Hanging wall	155	29
	Orebody	260	29
	Footwall	75	34
Watertank and North Extension	Hanging wall	30	29
	Orebody	130	29
	Footwall	450	20
Windmill	Footwall	230	41

7.6Commentary on Exploration

The QP is of the opinion that the drilling and survey processes, the geological and geotechnical logging and the sampling and assaying data is appropriate for the Kalgold modelled deposit and mineralisation style.


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8Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

This section summarises information relating to the sample preparation on site through to the laboratory preparation and analysis.

8.1Sampling Method and Approach

Sampling is carried out in accordance with the Harmony internal sampling procedure guidelines.

8.1.1RC Samples

Samples are collected as drilling chips from the RC rig using a cyclone collection unit and directed through a splitter assembly to create a 1.5kg ‐ 3.0kg sample for assay which is approximately 4% - 7% of the metre interval sampled, this is considered appropriate for the style of mineralisation and size of the RC sample over each 1m interval.

8.1.2Core Samples

After logging is completed, the DD core is transported to the Kalgold core shed, where it is subsequently marked with metre intervals. Sample numbers and their associated drill hole intervals are recorded by the responsible geologist and given to the core yard technician for cutting and sampling. The core is cut along the orientation line at the bottom of the drill hole to reduce the possibility of sample bias. The core is split using a core saw, with half core samples taken in the HQ and NQ sections.

Sampling typically commences 10m above the hanging wall contact of the mineralised BIF and continues through to 10m below the footwall contact of the BIF. Drill core within the interval designated for sampling is continuously sampled along metre intervals and not split on lithological or alteration-based boundaries. For intervals of very broken core, samples are collected by taking approximately half of the drill core over the relevant sample interval. The remaining half core is stored onsite.

The core samples sent for assay are bagged in labelled calico sample bags which are then placed within larger poly weave bags for transport to the designated laboratory.

8.2Density Determination

Density measurements were undertaken using both Archimedes water displacement method and laboratory-based pycnometer method. For the Archimedes method, collection of drill core samples for bulk density testing has been completed at 30m intervals downhole. Samples were air dried, then a piece of core approximately 10cm in length selected and weighed in air followed by weighing submerged in water.

8.3Sample Security

Samples are collected by SGS from the Kalgold core shed and transported to the SGS laboratory in Randfontein. A hard copy sample submission form is sent with the samples and a digital copy along with a list of samples included in the submission is emailed to the laboratory. Upon receipt at the laboratory, the submission is sorted and checked against the sample submission form and the senior geologist is notified of any missing and/or additional samples.

All remaining RC chip trays, and DD half core samples are kept at Harmony’s core storage facility. The 1m bulk samples from the RC drilling are stored on site or at mine laydown facilities for a minimum of three months and then discarded. Coarse rejects from the assay laboratory samples are kept for three months and then discarded unless otherwise requested. This allows time for resamples or Quality Assurance and Quality Control (“QAQC”) checks. All pulp samples are returned and stored on site at the core storage facility.


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8.4Laboratory Sample Preparation

Historical exploration samples were sent to independent laboratories where they were crushed and pulverized. Aliquots (portions of larger samples) weighing 30g or 50g were taken for fire assay. The primary and a second, independent laboratory were used to assay pulp duplicate samples. Several laboratories were used during various exploration phases, including Performance Laboratories, Bergstrom, and Baker (now Set Point), and the onsite Kalgold analytical laboratory. All these laboratories are currently South African National Accreditation System (“SANAS”) accredited laboratories (except for the Kalgold laboratory). However, this may not have been the case when certain phases of historical exploration were undertaken.

Sample preparation and assaying of both RC and DD samples for the 2017 to 2021 drilling programme was completed at the external SGS laboratory in Randfontein. This laboratory is SANAS accredited (No. T0265) and conforms to the requirements of ISO/IEC 17025 for specific tests.

The sample preparation and analysis flow sheet for both the RC and DD samples from the 2017 to 2021 drilling programme is outlined in Figure 8-1. Screen sizing tests after the crushing and pulverising stage are completed at every 20th sample to ensure particle size tolerances are achieved prior to further splitting of the sample. Charts of screen sizing tests from samples submitted to the current effective date of 30 June 2022, illustrate the sizing tolerances are being met by the laboratory with only minor exceptions (Screen sizing tests after the crushing (90% passing 2mm) and pulverising (95% passing 75um) stages.

8.5Assaying Methods and Analytical Procedures

The method used for gold assay of both RC and DD samples is FAA303 (Au by lead fusion followed by Atomic Absorption Spectroscopy (‘AAS’) finish). This is an accredited method and conforms to ISO/IEC 17025. The multi-element assays are completed by Inductively Coupled Plasma – Optical Emission Spectrometry (ICP-OES) and ICP- Mass Spectrometry (ICP-MS) methods, which are not SANAS accredited.

Historical assays were done by various laboratories including Performance Laboratories and Setpoint Laboratories using fire assay method with AA finish or ICP finish respectively. There are no details on the methodology of the assays done during early years of exploration.

8.6Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

Routine quality control measures must be undertaken to check the precision and accuracy of analytical methods used by the laboratories. The checks involve regularly inserting blanks, duplicates, gold, and base metal standards into all batches of samples dispatched to the laboratory for analyses. The current primary analytical laboratories used for sample analysis also have several internal QAQC protocols in place.

At each interval of 20 samples a pulp Certified Reference Material ("CRM") or Gravel Blank is included as a sample. For RC drilling a duplicate field sample is taken from the splitter assembly every 50th sample and a gold assay pill is included into the sequence with the CRM standards and blanks. A photographic record of the relevant standard, blank and assay pill is captured as a record of quality control sample and corresponding sample number it was submitted as. This minimises the risk of a sample mix-up occurring in the sampling stage prior to dispatch and provides a reference point for investigations into QAQC issues at the laboratory.

The internal laboratory QAQC includes CRMs, blanks, splits at the crushing stage and repeats after the pulverising stage along with screen sizing tests and reporting of the lead button weights. The total samples submitted for the drilling program to December 2021 and QAQC ratios of both Harmony and internal laboratory samples are outlined in Table 8-1.

Table 8-1: Summary of Sample Batches for 2018 - 2021 Drilling


Sample Description			Total number (No.)
Batches submitted to laboratories			1,329
Drill hole samples			39,203
Quality control samples			15,920
CRMs			3,575


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Each batch is reviewed upon receipt and any QAQC issues raised with the laboratory. Depending on the type and number of QAQC samples that are outside expected ranges, either a portion or the entire batch is re-assayed. Once the re-assay results are received and the QAQC issue rectified, these values are set as the preferred values for the relevant samples.


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Figure 8-1: Laboratory Sample Preparation Process


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The impact of historical anomalous data on the Mineral Resource estimate, has been attempted to be controlled through the exclusion of some of the data from these drill holes. Holes that were misplaced or had grade profiles that did not appear to be in the correct locations, were excluded from estimating the Mineral Resource. Sampling of only mineralised material has resulted in many poorly sampled holes and gaps in the database.

However, this has been handled in the compositing process by inserting a background grade of 0.005g/t Au. It is also possible that this low grade “non-sampled” zones will have a negative impact on the Mineral Resources estimate, resulting in a lower estimate of the overall head grade.

Instead, maintaining the null value was preferred for the estimate fill blocks in low grade and waste areas, with high grade areas extrapolated over for the minute modelled intersections. Given that most of the drilling is historical, it was not possible to exclude historical drilling from the dataset. The historically adopted assay methods have evolved since the mid-nineties, and the QA data indicates the sampling methods are robust enough for inclusion into this model.

8.6.1Standards

A range of CRMs derived from similar mineralisation styles were sourced from the African Minerals Standards (“AMIS”) and inserted into the sample sequence by the logging geologist. The CRM standard assigned to a particular sample depended on the expected grade of the surrounding samples and, where possible, the grade of the standard was matched to the expected grade. Results of the CRM standards submitted to December 2021 are summarised in Table 8-2.

Table 8-2: Summary of AMIS Standard Results


	Au Standard		No. Samples	Calculated Values
Standard	Certified Value (g/t Au)	Expected STD		Mean (g/t Au)	SD	COV	Bias (%)
AMIS0440	1.740	0.040	460	1.725	0.1337	0.078	-0.89%
AMIS0441	2.440	0.115	526	2.394	0.233	0.097	-1.87%
AMIS0473	0.410	0.015	375	0.423	0.108	0.256	3.06%
AMIS0571	0.592	0.020	280	0.596	0.046	0.077	0.69%
AMIS0748	1.380	0.095	69	1.368	0.056	0.041	-0.85%
AMIS0747	0.621	0.042	48	0.596	0.099	0.166	-4.02%
AMIS0724	2.380	0.120	89	2.280	0.202	0.089	-4.21%
AMIS0719	0.897	0.035	84	0.892	0.107	0.120	-0.55%
AMIS0439	-0.001	-	261	0.082	0.536	6.506	0.00%
AMIS0681	-0.001	-	235	0.011	0.061	5.689	0.00%
Blank_Gravel	0.000	-	903	0.026	0.067	2.565	0.00%
AMIS0570	0.860	0.037	79	0.880	0.224	0.255	2.33%
AMIS0519	1.610	0.050	166	1.588	0.179	0.113	-1.34%

Review of the QAQC performance of the CRMs illustrates some outliers falling outside three Standard Deviations (“3SD”) from the expected result. However, most results fall within 2SDs of the certified values.

8.6.2Blanks

Blank material initially comprising barren quartz gravel. Subsequently RC chips from barren intervals were inserted into the sample sequence for both RC and DD samples at a ratio of approximately every 30th sample. The control chart for performance blanks between 2017 – 2019 was assessed and illustrated a small number of anomalous results. Investigation of these outliers found they were the result of mix-ups during the sample preparation or assay process which resulted in partial or complete re-assay of the corresponding batch.

8.6.3Duplicates and Repeats

Scatter plots illustrating all duplicate and repeat results were reviewed, along with field duplicate results from RC samples. No bias is apparent in laboratory duplicates, pulp splits or laboratory repeats. Outliers were


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predominantly associated with repeats of samples in batches that experienced sample swaps/mix-ups. However, some outliers were due to the presence of coarse gold in the original samples.

8.6.4Gold Assay Pills

A range of gold assay pills were sourced from Geostats (Pty) Limited in Perth, Australia. These comprise a 1g pill of known gold grade added to a blank sample. The expected grade is calculated from the weight of blank material and grade of pill. The advantages of the gold assay pills over pulp type CRM standards are that they are difficult to distinguish from the normal RC chip samples in the batch and test the sample size reduction and splitting processes along with the potential sample mix-ups and analytical errors. As the expected value of each inserted pill sample is different the relative difference plotted against expected grade is used to plot and review results. The target for the pill QAQC samples is required to be within ± 10% range of the expected result.

Problems were experienced with determination of the correct weight and control of the moisture content of the blank material with assay pills, which negatively affected the results. The use of assay pills was therefore discontinued. The milling of the entire sample was implemented to optimise the sample preparation process.

8.7Comment on Sample Preparation, Analyses and Security

In the QP’s opinion:

•the sampling methods are appropriate for the mineralisation styles encountered at Kalgold. No compositing of sample occurs prior to assay;

•the methods used for both the gold and multi-element assay are appropriate for the style of mineralisation; and

•anomalies created with the historical drill hole datasets has been adequately addressed, while maintaining the integrity of the drill hole database for the inclusion in the Mineral Resource estimate. Estimation techniques adopted a null value for low grade and waste areas, while keeping the extrapolation of high grade intersections to a minimum.


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9Data verification

Section 229.601(b)(96) (9) (i-iii)

The Kalgold drill hole data is stored in DatamineTM (“Datamine”) Fusion database, which can only be accessed by the QP and Technical Specialist (Exploration Manager). The backup process is managed by the Harmony IT Department and comprises a full backup of the SQL server database (HGMTSP303) run every day at 5:30am, with 21 days stored on disk, along with a full backup to tape every month, which is stored at a third-party data storage location. The latest round of drilling, which commenced in 2017, has been subject to extensive modern QAQC procedures and monitoring, which has included laboratory visits and audits by the geologists in charge.

9.1Data Verification Procedures

Data verification procedures included the following:

•the drill hole database was checked against the original logs;

•the drill hole database was checked for missing collar coordinates, collar position and elevation errors, downhole survey errors, interval errors and duplicate sample records;

•the database was exported into the modelling software to check that the drill hole collars rest on the topography

•when assay results were returned from the laboratory, the QC sample results were assessed for performance before the primary sample results could be used for Mineral Resource estimation;

•the primary assay results captured in the database were validated by spot checking a selection of drill holes used in the current Mineral Resource estimate; and

•the assays captured in the electronic database were checked against the original laboratory certificates.

Errors identified were recorded in a spreadsheet, which was subsequently sent back to the site geologist so that they could be corrected before the data could be used for Mineral Resource estimation.

9.2Limitations to the Data Verification

There has been no re-logging of the historical core and as such, lithology logs have been used as they are for creating the geological and domain models. Historical assay data is largely lacking QAQC information, however, the data that has been available has been subject to some assessment of duplicates and QAQC in the past. None of this information was supplied with the database, as such, all assay data supplied has been taken as is.

9.3Comment on Data Verification

The sampling methods, sample preparation procedures, and analytical techniques are all considered appropriate for the estimation of Mineral Resources. The Kalgold deposit is drilled to a standard suitable for robust estimation of Mineral Resources. However, a significant amount of additional Mineral Resource definition drilling would be required to increase the level of geological confidence.


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10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

Kalgold and its processing facility have been in operation since 1996, as such the processing method is considered well established for the style of mineralisation. The plant makes use of historical trends and data as a basis for their recoveries of ore mined, however when projects are planned for optimisation, appropriate test work will be performed. The latest detailed metallurgical test work program was conducted in July 2019 by Maelgwyn Mineral Services Africa for the Kalgold expansion project pre-feasibility study.

Two main composite samples (oxide and sulphide samples) as well as nine variability samples were evaluated with the objective to compare overall gold recoveries with different flowsheets including gravity, flotation, and leaching. The details and results of the tests are documented in the report entitled “Kalgold Expansion Project: Evaluation of Oxide (2019)”.

10.1Extent of Processing, Testing, and Analytical Procedures

The Kalgold ore can be described as semi-refractory and contains 3% - 5% sulphides. These sulphides negatively affect recoveries and will hence increase reagent consumption. The optimal conditions, as seen in Table 10-1, for the standard leach flowsheet, has been determined to be a grind at 80 um -75um, a 28hr leach time and a 2-pass pre-oxidation with shear reactors.

Table 10-1: Leach Flowsheet Determination


Leach Condition (28hr)	Head grade (g/t Au)	Residue Grade (g/t Au)	Cyanide Consump. (kg/t)	Dissolution (%)	Soluble Loss (%)	Overall Recovery (%)
Base case	1.43	0.15	0.31	88.59	1.5	87.09
2 pass pre-ox	1.43	0.12	0.26	90.65	1.5	89.15
2 pass pre-ox + AAL	1.43	0.14	0.6	89.51	1.5	88.01
Note: Consump. - Consumption

10.2Degree of Representation of the Mineral Deposit

The location of the drill holes used in the latest metallurgical test work are presented in Figure 10-1. Multiple holes were used from across the length of the deposit and are therefore deemed representative of Kalgold ore types. Nine metallurgical domains were identified based on the results of the current drilling campaign. Samples for each metallurgical domain have been obtained from the available cores and from the ROM feed to the plant.

10.3Analytical Laboratory Details

Maelgwyn Metallurgical Laboratory, established in 2009, conducts commercial mineral processing and metallurgical test work for the process design and development purposes. All leach work conducted can be validated by full metal balances including solid, liquid and carbon metal content. The laboratory holds an ISO 17205 quality accreditation for commercial laboratories.

10.4Test Results and Recovery Estimates

The overall gold recovery calculated for the two options tested namely; ROM- Leach and Flotation – Leach are outlined in Table 10-2.

Table 10-2: Metallurgical Test Work Results


Two Options	Recovery (%)	NaCN Consumption (kg/t)	Lime Consumption (kg/t)
ROM - Leach	89.1	0.65	0.75
Floatation - Leach	87.1	4.20	1.41


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Figure 10-1: Position of Drill Holes Used for Metallurgical Test Work
Source: Google Earth Image June 2019


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10.5Commentary on Mineral Processing and Metallurgical Testing

Kalgold and its processing facility have been in operation since 1996, and as such the processing method is considered well established for the style of mineralisation processed. The plant therefore makes use of historical trends and data as a basis for their recoveries. Additional metallurgical test work is only performed when projects are planned for optimisation or expansion as in the case of the Kalgold Expansion Project.


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11Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

The current Kalgold Mineral Resource estimate is based on the May 2022 geological model which was created by the Harmony QP using the following:

•Leapfrog Geo 4.5 ("Leapfrog") software for geological modelling;

•Datamine modelling software for Mineral Resource estimation and drill hole validation.

11.1Geological Database

The Kalgold Mineral Resource estimate is based on the exploration drill hole data obtained up to December 2021. The validated database contains a total of 3,269 drill holes (193,230m of drilling). Approximately 1,283 of those drill holes (146,124m) are valid and fall within the Mineral Resource model extents and were used in the estimation. The remaining of these holes have been excluded from the estimation. Around 89% of the exploration drilling assays comprise 1m long samples with the rest largely comprising samples <2m long. There is no apparent correlation between sample length and grade.

11.2Geological Interpretation

The Kalgold geological model has been constructed using drilling information, mapping information, geophysical survey and interpretation information and air photography and satellite studies. The estimation domains are controlled by the underlying geology model. Rock codes have been assigned to the different geology types as classified from drilling and mapping. The assigned codes are listed in Table 11-1.

Table 11-1: Geological Modelling Rock Codes


Lithology			Model Code
Cover			99
Eastern limb BIF			10
Central schist			20
Western limb BIF			30
Spanover BIF			70
Windmill BIF			80
Eastern Greywacke			90
Western Mafic			91
Conglomerate unit			95
Windmill Volcanics			96
Dolerite Intrusives			100

There is a good general understanding of the stratigraphy and the deposit type owing to the long history of mining. As such there has been no attempt to model different interpretations of the geology. New drilling has started to indicate more complexity at the northern end, where there was historically poor drill coverage. There is some scope for changes to the interpretation, but this is all north of the current mining area. Additional drilling work in these areas are planned to firm up the interpretation in this area.

11.2.1Oxidation

The oxidation model was built from the oxidation as logged in drilling. However, the quality of the oxidation logging was not reliable, with many drill holes logged either fresh from surface or oxidised the entire length. Most oxidation codes within the database were not specific regarding the amount of oxidation present, and this made separating the oxidation into complete/partial/fresh difficult. To this end only two oxidation domains were completed based on all available information, as shown in Table 11-2.


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Table 11-2: Oxidation Domains


Description			Model Code
Oxidised			2
Not Oxidised (Fresh)			1

The Kalgold area contains an overburden of Kalahari sands. Modelling of the overburden surface followed the below process:

•extracting the base of the logged overburden from the drill hole database;

•adding points to replicate the BIF outcrop along strike of the Windmill Zone; and

•modelling the surface and clipped it to the topography.

11.2.2Estimation Domains

The Kalgold estimation domains listed in Table 11-3 are based on the geology and structural domains. All wireframes generated using implicit modelling were assessed and modified using points and polylines inside Leapfrog to generate a reliable model. Wireframes were then exported to MicromineTM and DatamineTM where they were simplified by merging coincident triangles to reduce file size and make the files more manageable.

Table 11-3: Lode Estimation Domains


Description			Estimation Domain (Lode No.)
Eastern limb BIF			10
Central schist			20
Western limb BIF			30
Spanover BIF			70
Windmill BIF			80
Waste host			90/91/95/96
Kalahari sands cover			99
Dolerite intrusives			100

The estimation domains (Figure 11-1) have been split into east limb BIF, central schist, west limb BIF, Spanover BIF, Windmill BIF and Waste (comprising both the western mafic unit, conglomerate unit, and the eastern greywacke). Whilst no separate waste estimate has been conducted based on the boundary analysis, the waste rock composites have been used in the estimation of certain of the BIF units. The overprinting dykes are not mineralised and stope out the mineralisation. However, they have been included here as a domain in the model to ensure these blocks are excluded from the estimate.

The strike of the BIF units varies across the deposit. As such, the estimation domains have been split into three structural domains, namely North, Central and South. This split is based on the general strike and orientation of the stratigraphy and was used to inform the search direction. The structural domains are shown in 11-2.

11.3Mineral Resource Estimation Methods

11.3.1Exploratory Data Analysis

Analysis of exploration data has been conducted on all estimation domains. However, Domain 20 (Central schist) was not estimated due to a lack of consistent sampling resulting from a policy which did not require sampling of this schist unit. ExploreMine was contracted to complete a Mineral Resource estimate for the Spanover (Domain 70) and Windmill North(Domain 120) mineralized zone. Historic and recent exploration has indicated significant potential for the expansion to the current resource areas.


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

11.3.2Global Analysis

A global analysis of the data shows that the natural cut-off for the data sits around 0.2g/t, which is a good basis to develop a grade shell. However, the lack of consistent sampling downhole (selective geology-based sampling has been completed) has made it difficult to build a coherent grade shell with which to constrain the estimate. This resulted in minor smearing of grade into potentially undrilled low-grade areas. As drilling data increases into the future, the potential for smearing grade is expected to reduce.


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa


Figure 11-1: Kalgold Geological Domains Used in Mineral Resource Estimation


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa


Figure 11-2: Distribution of the Kalgold Structural Domains


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

11.3.3Decluster Analysis

Sample cluster analysis was conducted to assess the clustering in the exploration drilling using both Isatis and GSLib. The analysis was conducted by selecting an approximate cell size based on the average drill spacing and then adjusting using a fixed variable, 160m(X) and 160m(Y) and 80m(Z).

11.3.4Data Compositing

Various composite lengths for the exploration drill hole data were assessed to select a representative composite length, which comprised 1.0m, 2.0m, 2.5m and 5.0m lengths. Statistics by domain show that there generally is a significant fall in variability between raw, 1.0m and 2.0m lengths. However, after the 2.0m length, the variability was stable. A comparison of the data before and after compositing to 2.0m is presented in Table 11-4. Compositing to 2.0m adequately reduces the sample variance whilst maintaining an adequate amount of sample for Ordinary Kriging estimation. The data in all domains was negatively skewed and showed significant variance.

Table 11-4: Comparison of Data Before and After Data Compositing to 2m Lengths


Domain	Description	No. Samples	Minimum (g/t Au)	Maximum (g/t Au)	Mean (g/t Au)	SD (g//t Au)	Variance	COV
Eastern Limb BIF	Raw data	40,991	0.003	269	0.93	2.59	6.70	2.78
	Composited data	20,053	0.004	134	0.90	2.00	3.99	2.21
Central schist	Raw data	9,636	0.005	11	0.10	0.48	0.23	6.63
	Composited data	6,854	0.005	11	0.07	0.32	0.10	4.60
Western Limb BIF	Raw data	10,781	0.005	136	0.63	1.81	3.29	2.88
	Composited data	5,463	0.005	68	0.64	1.39	1.94	2.20
Windmill BIF	Raw data	2,714	0.005	37	0.98	2.76	7.65	2.81
	Composited data	1,338	0.005	25	0.99	2.34	5.46	2.37
Spanover BIF	Raw data	926	0.001	9	0.41	0.93	0.87	2.27
	Composited data	926	0.001	6	0.37	0.82	0.68	2.22
Windmill North BIF	Raw data	1,121	0.001	18	0.43	0.91	0.84	2.12
	Composited data	1,121	0.001	5	0.38	0.60	0.36	1.58
Total		101,924

11.3.5Diffusivity and Proportional Effect

Diffusivity tests how well the grade is connected across the domain. A diffuse deposit is one where different bins of grade are connected to others, creating a smooth gradation from high-grade to low-grade. Diffuse deposits can be estimated with simple linear estimation methods like Ordinary Kriging and inverse distance. Non-Diffuse deposits (sometimes referred to as mosaic-type deposits) are not smooth. High-grades and low- grades are found adjacent to each other without a gradational pattern between them. A mosaic-type deposit does not estimate well when linear estimation types are used. In these cases, a non-linear method such as Indicator Kriging or Conditional Simulation must be used. Diffusivity is tested by generating a series of cross variograms between different grade bins.

The proportion effect is a test of variability against grade. A positive result indicates that variability increases with grade. As a precious metal deposit, this is expected. Where proportional effect is shown to exist the use of traditional “raw” variograms are not advised.

The Kalgold deposit is both diffuse and shows a strong proportional effect. This means that whilst Ordinary Kriging is an appropriate method for this deposit care needs to be taken when constructing the variograms to ensure representativity. Standard semi-variograms are problematic in projects where a strong proportional effect is present. Harmony has resolved this problem by using correlograms for variography.

11.3.6Contact Analysis

A domain boundary contact analysis was completed using MicromineTM (normal distance to wireframe) to understand the nature of the boundaries between the different units.


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

The hanging wall to the East limb BIF and the footwall to the West limb BIF were both found to be soft over 10m - 20m. However, the internal Central schist appears to have hard boundaries between it and the BIFs on either side, with significant grade drops moving from the BIF unit into the schist.

11.3.7Basis Statistics

The basic domain statistical analysis shows that the domains are strongly skewed but generally contain only low to medium grades.

11.3.8Top Cut Determination

Top cuts were determined using statistical analysis, specifically analysing where the histogram breaks down and assessing that point against the data distribution in three-dimensional (“3D”), the metal content of the cut samples and the 99th percentile. Top cuts were determined from exploration data only and, where possible, less than ~10% of contained metal was removed from a domain.

Five estimated domains were assessed, and the final top cuts are 8.00g/t for domains 10 (east limb BIF), 20 (west limb BIF) and 6.33g/t for 70 (Spanover BIF), 15.00g/t for Zone 80 (Windmill) and 4.90g/t for Zone 120 Windmill North.

The post top cut domain statistical analysis shows the domains are less strongly skewed and, while they do only contain low to medium grades, the Coefficient of Variation (“COV”) variable indicates the domains are amenable to Ordinary Kriging.

11.3.9Stationarity

To test for domain stationarity a series of grade swath plots of mean grade and SD were used as shown in Figure 11-3. These charts show that there is very little drift in the Kalgold deposit with steps in the graphs correlated to changes in deposit strike which will be handled through search parameters, staged estimation and structural domaining.

11.3.10Variography

The variography generally exhibits a high nugget effect and variograms are noisy because of the strong proportional effect seen in the Kalgold deposit. To enable a relatively robust estimate, a series of correlograms were modelled for each domain. Back transformed Gaussian variograms were also assessed to compare the parameters used. The Gaussian variograms and correlograms were generally in agreement.

Variograms tend to indicate a nugget of between 15% - 30%. The second structure tends to comprise a further 40% -60% of the variance, with the long range third structure comprising the remainder. The first structure commonly covers 70% - 80% of the total variance and 20% - 30% of the total range with distances of between 20m - 50m. This indicates that to obtain a high-quality estimate drilling needs to be spaced at the 20m - 40m spacing.

The variograms were modelled in Isatis as correlograms. Rotations were determined using the Isatis Geological Plane to ensure easy transfer, from Isatis to Leapfrog and MicromineTM. Geological Plane rotation is ZYZ rotation or Z (azimuth), Y (dip right hand down looking along the strike) and Z (pitch in plane rotated down from Azimuth direction).


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa


Figure 11-3: Variogram Ellipses Used for Each Structural Domain


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

11.3.11Block Model

The Mineral Resource model was constructed in the LO25 grid. The parameters used in constructing the block model are shown in Table 11-5.

The resulting model was then re-blocked to 10m x 10m x 5m to create the Mineral Reserve model. The Windmill Mineral Resource, which has been included in the Kalgold model, utilises the same parameters and block size as the Broader model. A trial was run utilising a smaller block size on Windmill alone as a test. However, whilst there was a slight drop in tonnes and a higher gold grade, the overall result was not significant enough to justify a separate model.

Table 11-5: Summary of Block Model Extents


Variable	X	Y	Z
Minimum (Origin Centroid)	22,595	-95,220	775
Maximum	24,455	-91,760	1,355
Extents	1,860	3,460	580
Parent block size	10	20	20
Sub block size	5.0	5.0	2.5
No. of blocks	186	173	29
Rotation (Bearing/Plunge/Dip)	0	0	0

11.3.12Grade Estimation

The Ordinary Kriging grade interpolation method has been selected for Kalgold based on data density and grade distribution. The variograms helped inform the data searches in combination with the level of sample support. The first pass was roughly based on half the main variogram range at the recommendation of an independent reviewer. The second pass was double the first and the third was three times the first. The purpose of the third pass was to simply inform those parts of the model not filled by the earlier passes.

The Central schist unit was not estimated due to a lack of sampling that consequently causes grade smearing during estimation. The Spanover BIF (Domain 70) and Windmill North BIF (Domain 120) was estimated and classified using the same methodology as described in detail in “Harmony Kalgold Operations Kalgold Mineral Resource Report, (R.Reid December 2019). The Windmill North BIF (Domain 70) and Spanover (Domain 120) has had a significant amount of additional drilling, which has upgraded the Mineral Resource Model.

Grade continuity is considered moderately good. Variography and 3D analysis indicates that the grade is relatively continuous and tightly constrained to the extents of the BIF units. Mapping the BIFs essentially maps the grade distribution. Within this broad envelope of the BIF there is a strong structural component to the grade distribution which results in shallow northerly plunging high grade lozenges that are contained in an overall broad tablet-type low-grade halo constrained within the BIF. These grade lozenges are in the order of 40m to 80m in length and would require a high density of drilling to accurately map them within the model, this is well inside the current drill density and this lack of drill density negatively impacts the ability of the model to accurately replicate these small high-grade lenses.

11.3.13Relative Density and Tonnage Calculation

Densities used in past were taken from the Kalgold 2017 DatamineTM Ordinary Kriging estimation macro. This is because there were not enough samples across the deposit to update the assigned density numbers. Over the past couple of years, a significant number of density measurements were obtained from the new drilling at a rate of approximately 1 every 10m. As such, the density data now covers a significant portion of the deposit. This data has been combined with grab sample data taken from the pit during the sampling process. For the current estimation, the densities used were assigned to the block model using a MicromineTM macro. The densities have largely been estimated into the main domains using the Inverse Distance Squared interpolation method.

The densities that were used to calculate the Mineral Resource tonnage are presented in Table 11-6. The densities for the Mineral Resource model 2022 remained the same as the 2019 model. Areas not covered were extrapolated by nearest neighbour estimates.


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Table 11-6: Densities Assigned by Depth


Lithology	Depth (mRL)	Density (t/m3)
BIF	>=900	2.99
BIF	>=1,160	2.93
BIF (approximate base of oxide)	>=1,200	2.88
Not BIF	>=900	2.81
Not BIF	>=1,120	2.80
Not BIF	>=1,150	2.80
Not BIF (approximate base of oxide)	>=1,200	2.72

11.3.14Model Validation

The block model was validated using statistical tests, visual assessments, swath plots and estimation quality parameters. Swath plots were generated to compare the block model grades to the composite and declustered composite grades for easting, northing, and elevation slices through the deposit. Block model grades generally follow the composites and display an adequate amount of smoothing.

Estimation risk was assessed using cross validation plots and a supporting Inverse Distance Squared estimate. The grade-tonnage curves from both estimates replicate each other indicating no significant estimation issues with the Ordinary Kriging estimate showing some additional smoothing related to the variograms and high nugget.

11.4Mineral Resource Evaluation

The Mineral Resources at Kalgold are considered to have reasonable prospects of economic extraction by open pit mining methods. Kalgold is an on-going operation with a well-defined set of operating parameters and costs. These parameters are used to generate a series of WhittleTM open pit Mineral Resource shells based on various gold prices, to constrain the Mineral Resource block model for reporting purposes. At this stage the Windmill Zone model has no constraining Mineral Resource shell and is reported to an RL (reduced level). The parameters used to determine the economic cut-off grade at the current effective date of 30 June 2022 are presented in Table 11-7.

Table 11-7: Economic Parameters for Mineral Resource Shell (30 June 2021)


Description	Unit	Value
Gold price	ZAR/kg	850,191
Planned recovery factor	%	86
Mining costs	ZAR/t	Modelled based on Andru mining rates
Processing costs	ZAR/t	242.26
Plant throughput	ktpm	140 ramping up to 175 in Yr 3
Planned dilution (Weighted planned per pit)	%	9.1

The current gold price, as used for the Mineral Resource shell modelling and the Mineral Resource economic analysis, corresponds to the USD1,723/oz (ZAR850,191/kg) gold price (Table 11-7). The plant recovery factor is based on metallurgical test work and historical plant performance, as discussed in Section 10 of this TRS. Based on the parameters presented in Table 11-7, the cut-off grade reporting to the Kalgold Mineral Resources at the effective date is 0.54g/t gold. The cut-off grade has been updated using the BP2022/23 parameters pending the decision the on-going expansion project.

The Kalgold Mineral Resource estimate is reported based on either economically viable material that is delivered to the ROM or marginal ore that is delivered to stockpiles for future processing. All Mineral Resources reported between the 0.54g/t gold economic cut-off, and the profitable cut-off of 0.60g/t gold, are considered as marginal ore and are thus stockpiled for future processing. Material that is profitable at the Mineral Reserve gold price of ZAR763,000/kg is sent directly to the ROM for processing.


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

11.5Mineral Resource Classification and Uncertainties

The Kalgold Mineral Resource model was classified into Measured, Indicated and Inferred Mineral Resource categories. The classification criteria are based on the assessment of the quality of the Kriged estimate (using population breaks in the slope of regression and Kriging efficiency parameters) and sample support (average sample distance and data spacing). Each of these parameters were considered individually and ranked in order of priority with Estimation Pass, Average Sample Distance and the Slope of Regression having the most significant impact. Histograms of this data were assessed, and break points identified in the data that equate with the parameters presented in Table 11-8.

A combination of these parameters was used to classify the Mineral Resource estimate using a set of "if-else" statements that were collated into a single automatic classification. This data was then used to generate a series of wireframes for the Measured, Indicated, and Inferred categories. The wireframes were adjusted to account for the continuity seen in the geological model that included geology, structural understanding, grade continuity, historical reconciliations, and deposit type. No further geological losses or discounts were applied additional to those modelled in the ore limb model.

Table 11-8: Parameters Considered for Constructing the Mineral Resource Classification Wireframes


	Mineral Resource Category
Parameter	Measured	Indicated	Inferred
Kriging Variance	0.2	0.3	0.4
Kriging Efficiency	0.6	0.3	0.1
Slope of Regression	0.8	0.5	0.3
Average Sample Distance (m)	20	40	100
Estimation Pass	1	2	3

The Kalgold geological model is considered robust as it is based upon the well understood stratigraphic model with defined geological units that are readily mapped between drill holes and along strike. There are several poorly mapped cross-cutting faults that potentially impact the Watertank North Mineral Resource area that have not been included into the model. This adversely impacts the confidence in the model in this area and the classification is consequently downgraded.

A 3D image of the final classified Mineral Resource model prior to the application of the economic cut-off grade is shown in Figure 11-4. There is a significant amount of mineralised material outside this area that remains unclassified either due to lack of supporting data, poor chances at economic extraction, or poor estimate quality.

11.6Mineral Resource Estimate

The location of the Mineral Resources is indicated in Figure 11-4.

The Mineral Resource estimate for Kalgold (A Zone, Henrys and Watertank) and Windmill Zone is presented in Table 11-9 as at 30 June 2022, exclusive of Mineral Reserves. The estimate accounts for mining depletions up to June 2022. The Mineral Resource figures reported herein only consider the tonnages contained within the Mineral Resource model, and contains no material that may be present on the stockpiles or on the heap leach.

The QP compiling the Mineral Resource estimates is Mr RF Gaelejwe, who is Ore Reserve Manager at Kalgold, and an employee of Harmony.


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa


Figure 11-4: Location and Classification of Kalgold’s Mineral Resources and Mineral Reserves


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Table 11-9: Summary of the Kalgold Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	0.576	1.65	953
Indicated	33.099	1.09	35,970
Total / Ave. Measured + Indicated	33.675	1.10	36,923
Inferred	25.440	0.34	8,557
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	0.635	0.048	0.031
Indicated	36.485	0.032	1.156
Total / Ave. Measured + Indicated	37.120	0.032	1.187
Inferred	28.043	0.010	0.275
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr RF Gaelejwe, who is Ore Reserve Manager at Kalgold, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 0.54g/t determined at a 90% profit guidance, and a gold price of USD1,723/oz; for an assumed plant throughput of 140ktpa ramping-up to 175kt. These parameters have been used to constrain the Mineral Resource shell.
5. Tonnes are reported as rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The inferred portion of the Mineral Resource includes the historical Surface tailings of 6 263Kg (0,201Moz)
9. The Mineral Resource estimate is for Harmony’s 100% interest.

It is important to note that:

•the Mineral Resource estimates contain material originating from in-situ sources and no other material is considered;

•the economic assumptions are currently being reviewed and aligned to the results of the current Feasibility Study (Section 20) and business planning cycles, which are currently in progress, and was not available at the time of compiling this TRS; and

•the combined Measured and Indicated Mineral Resources, inclusive of Mineral Reserves, are carried forward to the Mineral Reserves conversion and subsequent LOM planning.

Factors that may affect the Mineral Resource estimates include the following:

•gold price assumptions;

•exchange rate assumptions;

•operating and capital cost assumptions;

•gold recovery assumptions; and

•operational risks.


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

11.7Mineral Resource Reconciliation

The Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, decreased by 24% year on year from 1.639Moz to 1.187Moz. The Inferred Mineral Resources, exclusive of Mineral Reserves, decreased from 0.089Moz in June 2021 to 0.074Moz in June 2022. The change is due to Windmill model refinement

from new exploration data and revision of economic resource cut-off from 0.30g/t to 0.54g/t based on the latest Mineral Resource optimisation run at ZAR850/kg.

11.8Comment on Mineral Resource Estimates

In the opinion of the QP:

•there are no obvious geological, mining, metallurgical, environmental, social, infrastructural, legal and economic factors that could have a significant effect on the declared Mineral Resource;

•there is no known geological data that could materially influence the estimated quantity and quality of the Mineral Resource; and

•current models/interpretations are continuously subjected to ongoing review for improvements where applicable. No other alternatives have been considered.


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

The reported Mineral Reserves are derived through a business planning process and consideration by the CODM. The business planning process comprises multi-functional reviews inclusive of all mining, support and service departments that are involved in the verification of the inputs and the Modifying Factors. The CODM comprises various executive roles and responsibilities. These executives assess the profitability, the revenue and production costs. The CODM also considers capital expenditure, gold production and tonnes milled when assessing the overall economic sustainability.

12.1Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

All reported Mineral Resources and Mineral Reserves originate in situ from the orebody hosted within the Kraaipan Greenstone belts at Kalgold. The Mineral Reserves are considered based on several factors, including:

•the latest geological structure and associated Mineral Resource estimation models that constrain the layout for the mine design and LOM planning;

•pit slope stability design parameters as guided by geotechnical design and modelling;

•identified mining areas can be found in four discrete orebodies - D Zone, A Zone, Watertank, and Windmill;

•the open pit mining methodology is informed by the geological model;

•the Mineral Reserves cater for allowances in dilution sources and relevant Modifying Factors. Dilution of the orebody is predominantly expected to be incurred during mining operations; and

•only Measured and Indicated Mineral Resources are used to derive the Mineral Reserves.

No other sources of information are published as part of the Mineral Reserves for Kalgold.

12.2Modifying Factors

A summary of the Modifying Factors used to convert the Mineral Resource to the Mineral Reserve for Kalgold is presented in Table 12-1. The Modifying Factors are consistent with the modelling of the orebody, planning and computing estimates used in determining the Mineral Reserves, which are also consistent with historical performance. Plant recovery as shown in Table 12-1, closely aligns to the overall metallurgical test work and gold recovery calculated for the both the ROM-leach and flotation-leach methods, as defined in Section 10 and Section 14, respectively.

The Mineral Reserves are declared as delivered to the mills, except for the recovered gold content. The gold content is calculated after factoring in the plant recovery factor, as shown in the Modifying Factors (Table 12-1) and is depleted to inform the Kalgold cashflows.

Table 12-1: Kalgold Modifying Factors Used for Mineral Reserve Determination


Modifying Factor	Unit	Value
Mineral Reserve cut-off - Pit Mineral Reserves	g/t	0.60
MCF - Pit Mineral Reserves	%	100
Dilution - Pit Mineral Reserves	%	9.1 (Weighted planned per pit)
Plant Recovery Factor - Pit Mineral Reserves	%	86
Plant Recovery Factor - Stockpile Mineral Reserves	%	70


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Dilution of 9,1% over the LOM (Table 12-1) is a weighted average from different pits. In the first 3 Years dilution is A Zone, Henrys and Windmill at 7,5%; and Watertank North at 5%. The rest of LOM from mid-2025 planned at 10%. The latter will be refined in the next year planning.

12.3Mineral Reserve Estimate

The QP compiling the Mineral Resource estimates is Mr RF Gaelejwe, who is Ore Reserve Manager at Kalgold, and an employee of Harmony.

The Mineral Reserves are 21,405Mt of milled ore containing 758koz of gold and comprises 26% Proved Reserves and 74% are Probable Reserves. The Kalgold Mineral Reserves are presented in Table 12-2, whilst their locality is presented in Figure 11-4.

Table 12-2: Summary of the Kalgold Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved (Open pits and stockpiles)	5.616	0.94	5,303
Probable (Open pits and stockpiles	15.789	1.16	18,262
Total (Proved + Probable)	21.405	1.10	23,565

IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved (Open pits and stockpiles)	6.191	0.028	0.170
Probable (Open pits and stockpiles	17.404	0.034	0.587
Total (Proved + Probable)	23.595	0.032	0.758
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr RF Gaelejwe, who is the Kalgold Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. Mineral Reserves are reported using a cut-off grade of 0.60g/t determined using a gold price of USD1,546/oz gold.

12.4Mineral Reserve Reconciliation

The declared Mineral Reserve estimate increased by 20% from 0.631Moz as at 30 June 2021 to 0.758Moz as at 30 June 2022. This difference can be attributed to the Windmill model refinement from the latest exploration data impact offset by the revised geotechnical inputs allowing deeper mining in Watertank and A Zone pits.


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12.5Commentary on Mineral Reserve Estimate

The declared Mineral Reserves takes into consideration all Modifying Factors. The Mineral Reserves are depleted to generate the cash flows presented in Section 19 and are deemed by the relevant QP's to be appropriate and, both technically and economically achievable. Any by-products that are recovered as part of the refining process, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimate.

In the opinion of the QP, the methodologies applied in estimating the Mineral Reserve is sound and that there are no obvious risks that could have a significant effect on the Mineral Reserves declared.


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13Mining Method

Section 229.601(b)(96) (13) (i-v)

Kalgold is an open-pit mining operation located in the geological terrane of the Archaean KGB. Gold mineralisation is hosted by steeply dipping BIF interbedded with schist, shale, and greywacke. The nature of the orebody requires the selective mining of the ore blocks, defined by the east and west mineralised limbs, to separate the ROM destined ore, above the Mineral Reserve cut-off of 0,6g/t. Based on the gold grade, properties of the host rock, and shallow depth of mineralisation, open pit mining is appropriate for Kalgold. The gold deposit is mined most cost effectively, using a modular approach with multiple small to medium open pits defined by mineralised zones, as presented in Figure 13-1.

The various mineralised zones at Kalgold include the D Zone, A Zone, Watertank, Bridge Zone, Henrys, and Windmill. Some of these zones are delineated by structural geological domains, are currently being mined, or scheduled to be mined, from the following pits:

•the D Zone, located to the south of the Kalgold lease area in south domain, was mined out via the D Zone pit;

•the A Zone, located largely in the south domain with some portion in central domain, is currently being mined;

•the Watertank Zone is defined in the north domain and is currently being mined as the Watertank pit;

•the Bridge Zone extends north, from the A Zone, and is mostly located in the central domain, and is the infill area that combines the respective A Zone and Watertank pits;

•Henry’s pit located to the south of the A Zone pit, known as the A Zone south extension, is in the south domain, and is scheduled to start mining in Q1 of 2022; and

•the Windmill Zone, located north of the A Zone and Watertank pits, in the north domain, is planned to be mined via the Windmill South pit. This Zone is to commenced mining in Q1 of 2022, along with Henry’s pit.

13.1Mine design

The mine design strategy aims at maximising the safe extraction of ore, while minimising the risk of geotechnical failures, which can result in operational disruptions and dangerous working conditions. The geological modelling, mining method, and geotechnical considerations are considered as part of the mine design process. Pit slope design work and recommendations play a critical role in the ultimate pit design and access ways.

While there are other satellite orebodies at Kalgold, the current A Zone and Watertank mining pits are discussed in detail. The A Zone and Watertank pits have an overall approximate strike of 2km and comprise two zones of mineralisation, which dip steeply towards the east. The mineralised zones range between 15m and 120m thick. A 10m bench height is used to mine the orebody. A plan view of the current designed mining pits shown in Figure 13-1.

13.1.1Mine Design Parameters

The mine design process at Kalgold incorporates the pit slope design for current and future operations. The pit slope design criteria are incorporated into the pit design and optimisation process. Mine planning and optimisation is conducted using the DatamineTM software. Key mine design parameters for the current A Zone and Watertank pits are shown in Table 13-1.


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Figure 13-1: Plan Showing Kalgold Mining Zones


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Table 13-1: Key Mine Design Parameters


Parameter	Unit	Value
Technical
Dilution (Weighted planned per pit)	%	9,1
Mineral Reserve cut-off grade	g/t	0.6
MCF	%	100.0
Plant Recovery Factor	%	86.0
Geotechnical Slope Design Angles
Weathered East:
Design	°	60.0
Overall (Windmill)	°	46.6
Overall (Watertank Main)¹	°	32.8
Overall (Henry)	°	49.0
Weathered West:
Design	°	60.0
Overall (Windmill)	°	46.4
Overall (Watertank Main)¹	°	34.9
Overall (Henry)¹	°	38.0
Eastern
Design	°	82.0
Overall (Windmill)¹	°	48.2
Overall (Watertank North)¹	°	51.6
Overall (Watertank Main)¹	°	56.0
Overall (A-Zone)1+2	°	47.6
Overall (Henry)2	°	52.2
Western
Design	°	82.0
Overall (Windmill)2	°	54.0
Overall (Watertank North)¹	°	52.3
Overall (Watertank Main)1+2	°	54.9
Overall (A-Zone)	°	62.4
Overall (Henry)1+2	°	50.7
Notes: 1 - Including a 23.7m ramp(s), 2 - Including a 11.85m ramp(s)

13.2Mine Plan Development and Life of Mine Schedule

The modular open pit mining method is dependent on the detailed geological understanding of the various satellite orebodies. Exploratory infill drilling provides accurate geological information and is included in the final mine designs. The optimised mine design gives rise to the short-term planning and scheduling activities. These activities lead to the better grade control, safer working conditions, and improved profitability. The short-term planning is based on a monthly mining tonnage profile which considers rainy season.

At Kalgold, the LOM plan and scheduling originates with the use of the Mineral Reserves model, which is modelled at a 0.6g/t cut-off grade. The 21,405Mt (milled ore) of Mineral Reserves are included in the LOM plan and are fully accessible via the mine’s existing infrastructure. The mining rates used in determining the LOM plan are based on the current and expected operational performance, notwithstanding any unforeseen constraints. The remaining LOM for the operations is planned for 11 years. More details of the mined waste and ore tons profile, the milled ore tons, and recovered gold are presented in Section 13.4.1.


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13.3Geotechnical and Geohydrological Considerations

13.3.1Geotechnical

The main geotechnical risk in open pit mining is slope failure.

The geotechnical model used in the Kalgold Mine design takes the geology and geological structures, observations from other historical slope failure incidents, results of the slope stability monitoring systems, groundwater flows, and mining conditions that may potentially induce slope failure. The geotechnical model also incorporates the geohydrology of the mining areas.

Slope failure is considered as a material risk which may impact Kalgold’s Mineral Resource and Mineral Reserve estimates. Current remedial action includes pre-split blasting to protect the integrity of the high walls. The pit slope mitigation strategy is detailed and managed through the Mining and Rock engineering Code of Practice (“COP”) and is communicated, adhered to, and monitored by both the mine’s technical services and operational teams. An example of the geotechnical recommendations for the A Zone and Watertank pits highwall design, in consideration of the ramp design, is represented in Figure 13-2.

13.3.2Geohydrological and Seismic Monitoring

Surface and groundwater samples are collected using water bottles. In sampling surface water, the sample bottles are plunged neck downwards below the surface water. For groundwater, a bailer is used to reach the water level down the boreholes. The samples are then sent to Rocklab laboratory for analysis and testing. Techniques used for testing parameters such as permeability as per the designated laboratory’s accreditation certificate are M001 - M003, M005 - M006, M015 - M016, M018, M020, M029, M031, M052 - M054, and M090. The QAQC measures adopted are as per ISO/IEC 17025:2005. Interpretation of the analysis results by the QP indicated that the water quality at Kalgold Water quality meets required SANS 241:2015 limits. The use of groundwater is optimised through recycling initiatives at Kalgold and re-circulated as a dust alleviation technique for the open pit activities.

The Leica GeoMos Monitoring Solution is installed and is used for data capturing. Currently data is being collected to understand Kalgold conditions and for system fine-tuning. Unstable communication network. Is restricting system use for live reporting and monitoring. Seismic monitoring includes the monitoring of pit slope stability by tracking and electronically recording prisms data points. These data points are captured via high resolution imaging from a remote monitoring location aimed at detecting movement in the pit highwalls.

13.4Mining Operations

Kalgold is an open-pit mining operation. There is currently one active pit, following the merger of the A Zone and Watertank pits, which is the main source of ore for the LOM plan. The LOM plan extends over the inclusive period of 2023 - 2033. ROM ore is supplied for the period 2023 - 2032. The remaining LOM plan is supported with ore from the onsite managed stockpile.

13.4.1Mining Rates

The forecasted mining production rates for Kalgold considers the planned mining areas, inclusive of the mines current infrastructure capacity. Kalgold LOM plan comprises the planned ROM ore at c.1.5Mtpa ramping-up to 2,0Mtpa from Year 3 for the period 2023 – 2032. The remaining of the LOM plan consists of material supplied from the stockpiles only. The LOM plan is presented in Figure 13-3.

The planned average stripping ratio for the period 2023 - 2031 is 1,87. The waste material movement is largely due to increasing depths of the planned pits.

Ore destined for the plant consists of ore from the pit and ore from the high grade (“HG”) and low grade (“LG”) stockpiles (“SP”). The annual forecasted milled tonnages and the associated yield used for the gold recovery is shown in Figure 13-4. Recovered gold content is based on the ore milled and processed originating from the various ore sources. The annual forecasted gold produced for the LOM is shown in Figure 13-5.


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13.4.2Mining Equipment and Machinery

Mining is conducted by mining contractors, Andru Mining (Pty) Limited (“Andru Mining”), under the management of Harmony. A contractor mining approach is envisaged for the proposed LOM plan.


Figure 13-2: Section View of A Zone and Watertank Pit Slope and Ramp Design

Figure 13-3: Kalgold LOM Plan


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Figure 13-4: Graph of Kalgold LOM Plan - Tonnes and Grade

Figure 13-5: Graph of Kalgold LOM Plan – Gold Produced (kg)

Conventional truck and shovel methods are adopted by the mining contractor using the following mining fleet for both waste and ore movement:

•8 excavators; and

•42 trucks

Ancillary equipment includes, but not limited to, the use of water and diesel bowsers, mechanical and electrical maintenance fleet, graders, and dozers.


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Stockpile handling is also carried out by the mining contractor using the following fleet:

•4 front end loaders (“FEL”); and

•5 articulated dump trucks (“ADTs”).

The mining contract is aimed at delivering a specific volume of ore and waste mined. The contractor is bound by providing the necessary fleet, taking into consideration all equipment availability and utilisation, to deliver the required volumes.

13.4.3Grade and Dilution Control

The selective open pit mining method is used to maintain grade control through improved selectivity and flexibility using modular pits. Ore grade and dilution control is monitored through key parameters including geological grade control, mining within cut-off grade and the MCF. The Mine Planning and Geology departments perform critical grade control monitoring, to ensure the ratio of the combined ore mined is withing grade tolerance limits.

Operationally grade and dilution control is mostly achieved through improved drilling and blasting practices. Drilling accuracy is achieved by holes that are drilled with minimum deviations, aimed at being correctly burdened and that are within the planned mining block limits. The ROM ore above the cut-off is earmarked for immediate processing from the ROM pad, while the low-grade ore is transported to a dedicated low-grade stockpile (Table 13-2).

Table 13-2: Stockpile Categories


Type of Stockpile			Grade Category (g/t)
ROM pad			>0.6
Low-grade			0.35 - 0.59
Mineralised zone (Waste Dump)			<0.35

The annual forecasted feed grades from the respective ore sources, the average feed grade for these respective sources, and the recovered grade for the LOM is shown in Figure 13-4. Higher grades are expected in the future with the planned potential mining of the Windmill Zone, as grades tend to increase towards the north.

13.4.4Ore transport

Ore and waste material are transported separately, with ore being trucked from the pit to the plant ROM pad, and waste rock going to the mines waste dumps. Low-grade ore is also delivered via trucks to the low-grade ore stockpile. Material re-handling, from the stockpile, is managed by a separate small loading and hauling fleet. There are established haul roads, maintained by the mining contractor, within the pit, plant, and stockpile that are designated for ore transport.

13..4.5Mining Personnel

The mine is supported by approximately 695 employees, comprising 255 permanent employees and 440 contractors. The open pit mining operations uses a 10-hour shift system, operating a 2-shift cycle per day. All other employees work on a day shift rotation system only. The Kalgold operations are supported by the key mining personnel functions, where some individuals carry overall accountability, as per the Mine Health and Safety Act 29 of 1996 (MHSA).


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13.5Commentary on Mining Method

The open pit modular mining method is the prevalent mining method at the Kalgold Mine. This mining method works well with a robust understanding of the orebody’s geology and the ideal implementation of the pit slope design.

The mine design, planning and scheduling for the mine is developed using the DatamineTM software, considering the geotechnical model and related parameters. Grade control is an important activity at Kalgold and is closely monitored through onsite stockpiling practices.

The geohydrological risks at Kalgold are low, based on the hot and dry climate conditions and the low expectancy of rain days. Potential slope failure is the main geotechnical risk, which is managed through integrated monitoring systems and operational practises. The monitoring data is incorporated into working mining models that inform daily mine planning decision-making.

The mining rates, machinery and equipment, ore transport, grade and dilution control, and labour resourcing and optimisation are driven by the mine schedule and continuous monitoring initiatives on-site.


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14Processing and Recovery Methods

Section 229.601(b)(96) (14) (i-iv)

Kalgold's gold processing facility has been in operation since 1996. The technology used to process the gold-bearing ore is well established and has proven to be suitable for the style of mineralisation.

14.1Mineral Processing Description

Kalgold processes the ore using a well-established cyanide and CIL process for their recovery of gold. The processing flowsheet is presented in Figure 14-1.

The mine ore is transported from the pit by truck and tipped into the plant ROM pad from where it is fed into the pre-primary crusher for first stage of comminution, to decrease its particle size distribution. Pre-primary product reports to the primary crusher, followed by secondary and tertiary crushing, after which the product is temporarily stored in the dome prior to milling.

Ore within the dome is fed to the A, B and C ball mills with the product ranging from 75% - 80% passing at 75μm. A and B mills are identical in capacity with C being larger (Table 14-1). The A and B mill cluster cyclone overflow gravitates onto a vibrating screen for over-size material removal, while the C mill uses a conventional linear screen for the removal of over-size material. Once the excess over-size material is removed all overflow is pumped out to the thickeners for dewatering prior to leaching.

Table 14-1: Processing Parameters at Kalgold Plant


Equipment	Unit	Value
Average ROM	ktpm	128
Moisture Content	%	1
Rate of feed to Mill A and B	t/hr	55
Rate of feed to Mill C	t/hr	105 - 110
Recovery of gold at CIL	%	85
Thickener underflow	%	50 - 55

The thickener allows for separation of solids and liquid over time, by allowing the solids to settle at the bottom. The underflow, which is rich in gold reports to the pre-aeration tank for pre-conditioning prior to the addition of cyanide.

Cyanide is automatically added to either Leach 2 or Leach 3, depending on the degree of pre-aeration stage as Kalgold ore requires large amounts of cyanide to complete the leaching process. Generally, 75% dissolution takes place in the two leaching tanks. The remaining slurry gravitates to the CIL tanks for further leaching and adsorption.

Once the gold is dissolved into the cyanide solution it has a higher ability to adsorb (attach) onto activated carbon through the application CIL technology. There are seven stages in the CIL process with an average of 85% of gold adsorbed onto activated carbon. Once the carbon loading in the head tank reaches the required gold loading, the stream is pumped to the load make-up screen for the elution process.

The Kalgold plant employs the Zadra elution process for gold recovery where the loaded carbon is treated with a hot caustic and cyanide solution. The pregnant solution is pumped into the electro-winning circuit, where the gold will “de-absorb” from the activated carbon and attach onto stainless-steel wool.

Activated carbon can be regenerated for use again and as such once the gold has been removed from the activated carbon the eluted carbon passes through the acid column to be treated with hydrochloric acid for the removal of inorganic material. Acid-treated carbon is rinsed with high-pH water to neutralise the acid and transferred to the kiln for carbon regeneration. The regeneration process takes place at temperatures above 700°C in the absence of air to drive off the organic material.

The electro-winning cathodes are washed through the gold table and filtered through the press to retain the gold sludge, which is dried, weighed, and dispatched to Rand Refinery for refining.


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Figure 14-1: Schematic Flow Diagram of the Metallurgical Process


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14.2Plant Throughput, Design, Equipment Characteristics and Specifications

The basic processing parameters for comminution, thickening, pre-oxidation followed by leach and CIL at Kalgold are shown in Table 14-1

14.3Energy, Water, Process Material and Personnel Requirements

The CIL and Zadra process requires significant amounts of reagents to achieve the 85% recovery, which are summarised in Table 14-2.

Table 14-2: Reagent Consumption


Reagent	Unit	Value
Lime use	g/t	700 - 1,000
Flocculant	g/t	44,477
Cyanide addition	kg/t	0.6 -1.8

Kalgold Plant has a total labour force of 193 employees.

The plant main sections for the processing gold are crushing (pre-primary, secondary and tertiary), milling and carbon–in-Leach (“CIL”) processes. The Crusher section is receiving ore from Azone and Water tank open pit, the crusher section consists of pre-primary and primary jaw crushers, secondary and tertiary Symons cone crushers.

The milling plant consists of 3 tumbling ball mills to grind the ore to the required size for liberation of gold. Mill sizes are 3.66m x 4.88m for the A & B Mills at throughput of 50t/h each and 4.26m x 7.31m for the C Mill at throughput of 100t/h.

The overflow from the Mills cyclone is routed to two thickeners which are utilized to upgrade the relative density of the slurry to the required density for dissolution and adsorption which consists of one Pre-aeration tank and two leach tanks to dissolve the liberated gold and eight CIL vessels for adsorption of gold onto activated carbon. The Plant used about 224,000m3 water for processing of the Sulphide and Oxide ores. The power notified maximum demand for the operation is 12MVA.

The average planned milling tonnages per month is 128.540ktpm at the planned feed grade of 1,06g/t.

14.4Commentary on the Processing and Recovery Methods

The average historical plant recovery is 84.6%, which has shown significant variations throughout the operating years (Figure 14-2). The variability in the recovery can be attributed to the following:

•differences in ore characteristics;

•varying feed grades; and

•plant condition and operating efficiency.

The metallurgical process is well-tested as part of the ongoing operations but has been subjected to reviews as part of the expansion project work.


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Figure 14-2: Historical Plant Recovery


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15Infrastructure

Section 229.601(b)(96) (15)

Kalgold is an established operation and as a result, the current infrastructure is satisfactory for the declared LOM requirements, as detailed in the Mineral Reserves statement (Section 12.2) and supported by the mine plan (Section 13.2). Kalgold is accessible via the national and provincial roads (Figure 3-1). The general layout of Kalgold Mine infrastructure, neighbouring main access roads, surrounding farmlands, stockpiles, and the pits is displayed in Figure 15-1.

A Google Earth image of the plant is presented in

15.1Surface Infrastructure

The detailed surface infrastructural layout includes established haul roads for the transport of ore and waste, the waste dumps, and stockpiles for the associated pits.

15.1.1Ore and Waste Rock Storage Facilities

Kalgold relies on ore blending and thus the high and low-grade ore stockpiles play a crucial role in the optimum recovery of gold. The low-grade ore is transported to the north of the N18 road, adjacent to the waste rock storage facility, while the high-grade ore (above 0,6g/t) is transported to the processing plant, south of the N18 road, adjacent to the D Zone pit (Figure 15-1).

Any waste identified in the pit is mined and transported to an associated waste rock dump. The D Zone waste is currently placed on the South Waste Dump. Waste from the current A Zone and Watertank mining areas are transported to dedicated locations north of the N18 road mining (Figure 15-1). Spanover waste rock dump, located to the east of the Watertank and A Zone pits, is used for deposition of waste from current mining operations. Deposition on the Watertank rock dump resumed in Q1 of 2021, with the mining of the pushback area for the Watertank pit.

15.1.2Leach Stockpiles

Heap leach stockpiles accumulated from historical mining activities are situated adjacent to the mineral processing plant. Leach stockpile activities are closely monitored, and Kalgold satisfies the relevant environmental legislation and associated regulations. In addition, metallurgical efficiency has been improved by increasing oxidation levels to reduce the presence of weak acid dissociable cyanide.

15.1.3Tailings Storage Facilities

The D Zone, where mining began in 1995, has been mined out and is currently being used for tailings deposition. The operation comprises a single TSF which was commissioned in 1998, after the replacement of the heap leach operation with a CIL plant.

The current LOM plan for Kalgold requires a total placement of approximately 21.4Mt. The remaining capacity at 30 June 2022 is projected at approximately 31.5Mt, which is adequate to meet the overall requirements of the LOM plan. The tailings dam complex is currently operated, managed and controlled in a responsible and diligent manner by the Kalgold personnel, and no impairment to the integrity of the dam is anticipated, provided current practices and levels of management are control are maintained with all necessary measures undertaken in a timely manner.

15.1.4Power and Electrical

Operations are powered by electricity from Eskom Holdings State Owned Company (“SOC”) Limited. Kalgold power supply is designed to satisfy the planned LOM production and service requirements. Main power supply is managed and distributed via electrical sub-stations located on site. The Kalgold processing plant has a dedicated 20MVA transformer, with a maximum nominated demand of 12MVA, therefore a spare capacity of 8MVA is available when needed. The ball mills are the largest consumers of electricity, with a combined installation, based on a motor size, of 5.1MVA.


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Figure 15-1: Kalgold Mine Layout and Infrastructure


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Figure 15-2: Detailed Surface Infrastructure of Kalgold Plant
Source: Google Earth Image Date March 2021


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The Kalgold central offices and training centre are dependent on a rural electrical supply, supported by a 100kVA transformer. An extension of the pit, offices and workshops will be on the Eskom rural line installation with no foreseeable constraint on the line capacity.

15.1.5Water Usage

Kalgold uses borehole water for domestic use and ore processing. Return water from the plant residue material is re-used in the plant for further processing activities. Groundwater is pumped out from the pits and used for dust allaying on the haul roads, muck piles and run-of-mine pads.

15.1.6Logistics and Supplies

The procurement of supplies and equipment are handled centrally, via Harmony, and then delivered to Kalgold. Kalgold is accessed via three dedicated main entrances namely, the plant main gate accessed from the N18, the central offices and mining contractor access, located along the Kraaipan Road. All Kalgold supplies and equipment deliveries are handled at the security entrance and then transferred to the central mine stores located onsite.

15.2Commentary on Infrastructure

Kalgold is an existing mining operation equipped with the necessary infrastructure and infrastructural support to mine as per the current mine plan of 130ktpm and ramp-up to 170ktpm of ROM ore. In addition, the surrounding operational infrastructure including road, rail, offices, security services, water and power supply is adequate. The operations are powered by electricity supply from Eskom.

Overall, Kalgold is well-established with sufficient logistical and infrastructure support for the existing and planned mining operations.


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16Market Studies

Section 229.601(b)(96) (16) (i-ii)

16.1Market Overview

16.2Global Production and Supply

Gold production and supply is sourced from existing mining operations, new mines and recycling.

16.2.1New Mine Production

16.2.2Recycling

16.3Global Consumption and Demand

16.3.1Jewellery


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16.3.2Investment

16.3.3Currency

16.4Gold Price

16.4.1Historical Gold Price

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

16.4.2Forecast Gold Price

The gold price forecast of USD1,546/oz is conservative if corroborated against a long-term broker consensus gold price outlook (Figure 16 2).

16.4.3Harmony Group Gold Hedging Policy

Harmony has a hedging policy which is managed and executed at Group treasury level on-behalf of its operating entities. The key features of the hedging programme are as follows:

•the policy provides for hedging (or forward selling) up to a maximum of 20% of expected gold production for a rolling 24-month period;

•the policy has no minimum quantity that should be hedged, and if an attractive margin above cost cannot be achieved (i.e., in a low gold price environment) then no hedges are entered into;

•Harmony enters into ZAR-denominated gold hedges for its South African operations (for the non-South African assets it enters into USD-denominated hedges);


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Figure 16-1: Graph of Annual Gold Price History – ZAR/kg
Source: https://www.gold.org/goldhub/data/gold-prices
Figure 16-2: Graph of Consensus View of Forecast Gold Price


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•Kalgold does not enter into hedges in its own name but delivers bullion to Rand Refinery for refining on behalf of Harmony. Rand Refinery is one of the world’s largest single-site precious metals refining and smelting complex in the world. Rand Refinery refine all of Harmony’s gold to at least 99.5% purity, and acting as agent, sells the gold on the daily spot London fixing price and make payment to the Harmony two days later;

•Kalgold does its mine planning and financial forecasts based on the estimated future gold price provided by the Group treasury, but its year-end actual financial results reflect the received gold price inclusive of the benefit of the hedging programme. Therefore, in theory, Kalgold receives a hedged gold price for a maximum of 20% of its gold sales with the balance attracting the spot price.

16.5Commentary on Market Studies

16.6Material Contracts

As with all major businesses, Harmony and Kalgold enters into a multitude of vendor agreements for the provisions of supplies and services. These agreements are entered into on a competitive basis and typically are of a medium-term duration all with clauses providing for periodic updating of pricing, annual (or other) renewal or termination.

The list of material contracts currently in place to support the Kalgold operation is presented in Table 16-1.

Table 16-1: Material Contracts


Vendor Name			Nature of Service /Supply
Andru Mining (Pty) Ltd.			Contract mining
B&E International (Pty) Ltd.			Crushing and screening
Grinding Media South Africa (Pty) Ltd.			Supply of grinding media products
Sasol Chemicals South Africa			Supply of cyanide
Air Liquide (Pty) Ltd.			Supply of industrial gases and services

All the listed contracts are currently valid and in good standing. Terms, rates, and charges of contracts are considered consistent with industry norms. Contract management processes are in place and resourced so that contracts re-tendered and/or renewed as they approach expiry.


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17Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Section 229.601(b)(96) (17) (i-vii)

The South African Government has an extensive legal framework within which mining, environmental and social aspects are managed. Harmony and its Kalgold operation is primarily regulated and managed by certain principal Acts (Section 17.3) as well as corporate policies, management systems and certain industry wide guidelines, including:

•Energy Efficiency and Climate Change Policy;

•Environmental Policy;

•Harmony Water Management Strategy;

•Biodiversity and Rehabilitation Position Statement;

•Socio-Economic Transformation Policy; and

•Corporate Social Responsibility Policy.

The latest sustainability policies and public Environmental Social and Governance (“ESG”) performance and disclosure reports are available on the corporate website. Harmony has identified the environmental risks for the business and has strategies in place to manage the risks.

17.1Results of Environmental Studies

Kalgold has prepared multiple environmental impact assessments (“EIA”) for regulatory approval under the South African legal framework. The EIA identifies and predicts the likely environmental, social, and other related impacts of a mining related project. Furthermore, it establishes the measures that are necessary to avoid, minimise or offset predicted adverse impacts and, where appropriate, to incorporate these into an EMPR. The competent authority either approves or rejects the proposed projects and establishes the terms and conditions for its implementation.

Kalgold has been granted several environmental permits and licences since the commencement of operation. The most recent approvals were obtained in September 2016, April 2021 and January 2022 required for the closure of the D-Zone open pit, the amendment of existing WUL and expansion of the mining footprint, respectively.

The management measures and others are contained in the amended 2014 EMPR. All other environmental aspects and impacts emanating from mining activities (such as stockpiling of topsoil, and the location and planning of all dumps, stockpiles, and infrastructure) are captured in an environmental aspect register in line with ISO 14001:2015 standard. Kalgold has maintained its ISO 14001 certification since 2010 and the operation remains committed to eliminating or minimizing the effects of mining activities on the environment and adjacent communities.

17.2Waste and Tailings Disposal, Monitoring & Water Management

The primary materials from mining activities and processes include the rock (ore and waste) together with liquefied petroleum gas, grease, cyanide and other chemical, fuels and lubricating and hydraulic oils. Harmony recognises that responsible and effective waste management can positively reduce its environmental impacts and mitigate associated environmental liabilities. Waste management is thus a priority focus area. Internally, guidelines on mineral, non-mineral and hazardous waste materials are included in the environmental management systems (“EMS”) implemented at Kalgold.

Tailings comprises of crushed rock and process water emitted from the gold elution process in the form of slurry, once gold has been extracted. As tailings contain impurities and pollutants, they are placed in TSF engineered to contain them, in line with Harmony's tailings management programme and the Global Industry Standard on Tailings Management (“GISTM”). Harmony's overall tailings management strategy is to ensure robust, meticulous engineering and dam design, along with a continual focus on management of risks through layered assurance and oversight.


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The focus areas include, but are not limited to:

•freeboard control;

•water management;

•maintaining stability and the safety factor as advised by the engineer of record;

•erosion controls; and

•monitoring and control measures implemented to ensure continued compliance (including regular inspections, audits, and meetings on varying intervals with subsequent actions, minutes and reports).

As part of its mining, environmental and water approvals and licences, Harmony is required to implement monitoring programmes and plans to establish the operations impact on the environment. The compliance limits for the monitoring variable are included in the applicable EMPRs, WULs and environmental authorisations. The environmental monitoring implemented at Kalgold includes:

•annual EMPR performance assessments;

•monthly and quarterly ground and surface water monitoring

•annual biomonitoring surveys;

•waste classification and quantification;

•annual Integrated waste and water management plan updates;

•annual water balance reviews;

•monthly and quarterly air quality (i.e., noise and dust) monitoring;

•periodic Greenhouse Gas emissions ("GHG") monitoring; and

•periodic licence and authorisation compliance assessments.

In addition, environmental legal compliance audits are conducted every two years by a third party to help the operation maintain its compliance with all relevant environmental legislation. Audit results show that Kalgold is environmentally compliant.

17.3Permitting and Licences

In respect of environment, the following national Acts and the regulations promulgated thereunder provide the regulatory framework for mine permitting and licencing in South Africa:

•Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”);

•National Environmental Management Act, 1998 (“NEMA”);

•National Environmental Management: Waste Act, 2008 (“NEM:WA”);

•National Environmental Management: Air Quality Act, 2004 (“NEM:AQA”); and

•National Water Act, 1998 (“NWA”).

A summary of the status of environmental permits and licences issued at the effective date related to Kalgold’s operation is presented in Table 17-1.

All relevant mining, environmental and water-use permits are in place that cover the environmental, archaeological, and hydrological components of Kalgold. All permits are audited regularly for compliance and no material risks to the operations have been identified.


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Table 17-1: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Environmental Management Programme (Amendment)

(NW) 30/5/1/2/3/2/1/77 EM

DMR

2022

LOM

Environmental Authorisation

NW30/5/1/2/2/77MR

DMR

2017

LOM

Hazardous Waste Generator Certificate

GPT-00-057

GDARD

23 July 2021

23 July 2023

Water Use Licence

07/D41B/ABCGIJ/4754

DWS

22 February 2021

LOM

Certificate of Registration Inflammable Liquids and Substances

(NW) 30/5/1/2/3/2/1/77 EM

DMR

20 January 2022

20 January 2023

Notes: DMR - Department of Mineral Resources, GDARD - Gauteng Department of Agriculture and Rural Development, DWS - Department of Water and Sanitation


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17.4Local Stakeholder Plans and Agreements

•contribute to areas that will have the most meaningful socioeconomic impact on communities, namely infrastructure, education and skills development, job creation and entrepreneurial development;

•enhance broad-based local and community economic empowerment and enterprise development initiatives;

•facilitate socio-economic development in local communities by means of SLPs and corporate social responsibility programmes;

•support arts, culture, and sports and recreation; and

•build relationships based on trust within host communities.

In South Africa, mining companies are required to have a SLP which forms an important component of Harmony's community investment plan. It sets out the Company’s obligation to develop and implement comprehensive human resource development programs, community development plans, housing and living condition plans and employment equity plans. The aim of the SLP is to ensure the uplift of the social and economic circumstances of local communities surrounding the mine and are a prerequisite to securing and maintaining a mining right, with progress required to be reported each year. The SLP is renewed every five years. Kalgold has committed to investment projects to the approximate total of ZAR49m within the local community over the five-year period between 2019 and 2023 as per the approved SLP. The vegetable project is one of the ongoing initiatives that aims to provide horticultural training to over 800 households. The project is expected to have the following benefits within the community surrounding Kalgold:

•sustainable food production;

•health and wellness;

•poverty alleviation; and

•income generation.

Due to the high-level of unemployment and skill shortage in the surrounding communities, there is potential risk that there will be an influx of people into the area resulting in the establishment of informal settlements. This social risk and others were considered as part of the EIA process and appropriate mitigation measures are captured in the EMPR, the SLP as well as other governance structures implemented by the mine.

17.5Mine Closure Plans

Harmony makes provision for closure and rehabilitation both for accounting purposes and as required under the MPRDA. The statutory obligation for all environmental rehabilitation at Kalgold is administered by the DMRE and requires the preparation of a closure plan, the development of a cost estimate, and financial assurance. This amount was ZAR136.61m as of 30 June 2022, which includes an allowance for management and contingency costs. The Company makes an annual submission to the DMRE setting out the cost of closure in accordance with the MPRDA and the regulations issued thereunder. Harmony is required to make funding available in an amount equal to the cost of closure as determined under the MPRDA in the form of a trust fund and/or bank guarantees.

17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals or Groups

Kalgold has valid permits and does not require any additional permits to continue with their mining operations. The EMP amendment has been granted by DMRE, allowing the expansion of the current mining footprint within the approved Mining Right area.


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17.7Local Procurement and Hiring

Harmony is committed to investing in the future of local communities beyond the life of mine and not to only empower them, but also to mitigate the impacts its activities to ensure a positive legacy. The 2014 Mining Charter serves to guide the South African mining industry in socio-economic transformation. Local procurement (goods and services) and human resource management are key measures set under the Mining Charter and are reported on annually. Portable skills are developed through expanded learning programmes, learnerships and other programmes opened only to operating communities and areas where labour is sourced. Recruitment needs analysis takes place at a local community level and priority is given to hiring people form the immediate surrounding community.

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Periodic inspections are conducted by the DMRE to verify compliance with applicable environmental laws, regulations, permits and standards. In addition, Kalgold has implemented an EMS in line with the ISO 14001 standard. The EMS is audited on an annual basis by a third party and includes the needs and expectations of interested parties.

As part of Harmony, Kalgold conducts its operation based on policies and systems that are aligned to its corporate sustainable development framework. Although Harmony is not a signatory to the International Council on Mining and Metals or the UN Global Compact, these form the guiding principles of the framework. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (“GRI”). Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (“CDP”) for both climate change and water. CDP is a global environmental disclosure system that supports companies to measure and manage their risks and opportunities on climate change, water security and deforestation.

Harmony has a good understanding of the environmental and social aspects of the operations through baseline and specialist studies previously conducted. Risk management and mitigation measures were adequately addressed in the environmental management plans and will be effective to mitigate risks and impacts to acceptable levels should the measures be implemented according to the specialists’ recommendations. Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure at Kalgold. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.


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18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Economic parameters for the Harmony Group, including capital and operating costs, are determined and signed off by the CODM, before distribution to the business units, including Kalgold. The capital and operating costs are reported in ZAR terms and on a real basis. Reporting period are done for the financial years, inclusive of the months from July - June. Rounding of figures may result in minor computational discrepancies.

18.1Capital Costs

The stay-in-business capital for Kalgold is presented in Table 18-1. The capital costs are considered for mining activities only. An average contingency of 10% is applied where the capital cost estimates have a level of uncertainty. There is no contingency applied, where capital cost estimates have a reasonable basis. The estimated capital costs presented in Table 18-1 are carried forward and modelled in the Kalgold cash flow.

Costs associated with the Mining Charter Compliance (“MCC”) are determined because of Kalgold’s SLP requirements and modelled as such. These costs are extracted from the SLP model. Shaft capital costs are costs that can be attributed to Kalgold’s open pit mining activities such as, and not limited to, site clearance, dust suppression requirements, vehicle replacements, pumping and water control mechanisms, blasting measures, and slope stability monitoring.

18.2Operating Costs

A summary of the direct and re-allocated operating costs for Kalgold are presented in Table 18-2. The cash operating costs are used as an input into the cash flow model.

18.3Comment on Capital and Operating Costs

The capital and operating cost estimates for Kalgold are based on actual historical data, as well as budget forecasts. Therefore, the forecasted costs are reliable, and at minimum meet the confidence levels of a Pre-Feasibility Study. This approach of estimating capital and operating costs is consistent with industry practice. A record of the forecast and budget costs is maintained by the operation, allowing for an assessment of the alignment of the forecast and actual costs.


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Table 18-1: Summary of Capital Cost Estimates for Kalgold


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2033)
Shaft			32,373
MCC			44,157
Total			76,530

Table 18-2: Summary of Operating Cost Estimates for Kalgold


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2033)
Wages - payroll 1			421,289
Wages - payroll 2			43,185
Stores and materials			1,412,180
Electric power and water			18,498
Outside contractors			4,134,122
Other			273,878
Direct Costs			6,303,152
Refining charge			104,580
Assay cost			61,196
Plant treatment cost			5,631,560
Re-allocated costs			5,797,336
Mine overheads re-allocated			-136,794
Total			11,963,694


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19Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

19.1Key Economic Assumptions and Parameters

The CODM forms, reviews, signs-off and distributes economic assumptions to its various business units. On an annual basis, during the period October to November, long-term commodity prices and exchange rates forecasts’, are received from various financial institutions. In addition, a specialist in Economics from a reputable economics company based in South Africa, provides expert views on the global markets, forward looking commodity prices, exchange rates, consumer price index, production price index, electricity cost and consumable increases. All factors are analysed, cognisance is taken of the requirements of the NYSE and JSE markets, and a proposal is presented to the CODM for recommendation and approval. These assumptions are then applied at Kalgold, along with specific operational considerations.

19.1.1Metallurgical Recoveries

The metallurgical recoveries used in the cash flow are provided in Table 12-1.

19.1.2Gold Price

The proposed gold price (USD1,546/oz) is the price that is used by Harmony for the Kalgold annual planning cycle and forms the basis for the spot gold price assumptions used in the Kalgold cashflow. The reader is referred to Figure 16-2 for the consensus forecast gold price.

The conversions used in the calculation of the various gold prices is presented in Table 19-1.

Table 19-1: Conversions Used in Gold Price Calculations


Economic Factors	Gold Price (USD/oz)	Conversion Factor (oz/kg)	Exchange Rate (ZAR:USD)	Gold Price (ZAR/kg)
2022 Mineral Resource	1,723	32.15	15.35	850,191
2022 Mineral Reserve	1,546	32.15	15.35	763,000
2023 forecasted gold price	1,546	32.15	15.35	763,000
Notes: 1. Forecasted gold price as used in the Kalgold cash flow.

19.1.3Exchange Rate

In addition, the CODM has reviewed the ZAR:USD exchange rate performance over the past three years, for the period June 2018 - June 2021 (Table 19-2). The proposed spot exchange rate of 15.35 ZAR:USD is the exchange rate that is used by Harmony for the Kalgold annual planning cycle and forms the basis for the ZAR:USD exchange rate assumptions used in the Kalgold cashflow.

Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)


Period			Average Exchange Rate (ZAR:USD)
July 2019 to June 2020			15.68
July 2020 to June 2021			15.41
July 2021 to June 2022			14.75
3-Year Ave. (not weighted)			15.28


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Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast


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19.1.4Royalties

Royalty is an expense paid to the government of South Africa and is accounted for in the Kalgold cash flow models. In terms of the mining ring-fencing application, each ring-fenced mine is treated separately, and deductions can normally only be utilised against mining income generated from the relevant ring-fenced mine.

19.1.5Capital Expenditure

At Harmony, capital is allocated to the mines with a longer life. Kalgold currently has a relatively short LOM model, and therefore has relatively small amounts dedicated to capital expenditure. Detailed capital costs can be found in Table 18-1. The total capital costs shown Table 18-1 represents the capital costs in the Kalgold cash flow (Table 19-4).

Other relevant information with respect to the current milling capacity feasibility study and, further exploratory drilling (Section 20), may change the nature of the forecasted mining capital spend.

19.1.6Operating Expenditure

19.1.7Working Capital

Working capital is calculated at a Harmony Group level and not at an operational level.

19.1.8Taxes

19.1.9Closure Cost and Salvage Value

The closure cost estimates are those provided in Section 17.5. No account has been taken of any potential salvage values.

19.1.10Summary

The key assumptions used in the cash flow are summarised for Kalgold in Table 19-3.

Table 19-3: Key Economic Assumptions and Parameters


Parameter	Unit	Value
Production Rate	ktpm	140 to 170
Gold Recovery	%	86.00
Royalty	%	Formula
Tax Rate	%	Formula
Gold Price	ZAR/kg	763,000
Exchange Rate	USD:ZAR	15.35
Discount Rate	%	9.00


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19.2Economic Analysis

19.3Economic Analysis

Harmony's respective business units and its associated operating sites consider the economic assumptions during their respective planning and analysis processes. The past year’s average gold price is used for testing purposes. A price of ZAR763,000/kg is used for forecasting the revenue of the Kalgold cash flow (Table 19-4).

The discounted cash flow model is used to calculate the Net Present Value (“NPV”) of the investments. The NPV for this metal price, is approximately ZAR1,604m, at a discount rate of 9%. The NPV is calculated on a cash flow that accounts for factors such as:

•mining and ore processing working costs;

•royalty payments;

•capital costs, including costs allocated to ongoing development;

•any significant project work considered as major projects; and

•costs deemed as abnormal expenditure (“AE”).

19.4Sensitivity Analysis

Capital investments in Kalgold are relatively low and not expected to have any significant impact on the NPV and therefore not included in a sensitivity analysis. The base case in the analysis below is the economic results emanating from the LOM plan presented in Table 19-4.

The sensitivity analysis shown in Table 19-5 and Table 19-6 is based on a change in a single assumption while holding all other assumptions constant. In practice, this is unlikely to occur, as risks and/or opportunities will have an impact on the cash flows, and changes in some of these assumptions may be correlated. The insights that can be provided by this sensitivity analysis is that Kalgold is most sensitive to changes in the gold price (ZAR/kg).

The impact of one or a combination of risks and opportunities occurring at the same time cannot be specifically quantified so an analysis considering multi-parameters is considered. In this way the general risks, with the aid of the sensitivity table (Table 19-7) are adequately covered. The sensitivity analysis considering the 3 variations of gold price (ZAR/kg), operating costs (ZAR) and variation in production (kg gold) show that the lowering of working costs, improvement in productivity and the benefits of a higher gold price can have positive impacts for Kalgold.


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Table 19-4: Kalgold Cash Flow


Item	Units	Total LOM	FY2023	FY2024	FY2025	FY2026	FY2027	FY2028	FY2029
Waste tonnes mined	t'000	64,547	8,073	8,739	7,156	6,497	4,815	5,984	6,668
Ore tonnes mined	t'000	34,504	3,438	2,843	4,785	2,669	4,338	3,121	2,325
Total tonnes mined	t'000	99,051	11,511	11,582	11,941	9,166	9,153	9,105	8,993
Milled tonnes	t'000	21,404	1,501	1,539	2,040	2,040	2,040	2,040	2,040
Yield	g/t	0.93	0.92	0.92	0.93	0.98	0.85	1.01	1.31
Gold recovered	Kg's	20,029	1,381	1,409	1,907	2,004	1,734	2,055	2,666
Revenue	ZAR'000	15,282,293	1,053,563	1,075,057	1,454,807	1,528,882	1,323,058	1,568,245	2,034,126
Operating costs incl. royalty	ZAR'000	12,298,905	1,107,348	1,122,208	1,287,344	1,161,395	1,144,660	1,163,742	1,198,108
Capital costs	ZAR'000	76,530	11,629	8,804	8,479	6,425	7,325	6,425	7,325

Profit after total costs	ZAR'000	2,906,858	-58,496	-48,970	166,894	368,973	178,984	405,989	836,604
NPV - (low discount rate - 9%)	ZAR'000	1,604,626
NPV - (medium discount rate - 12%)	ZAR'000	1,335,924
NPV - (high discount rate - 15%)	ZAR'000	1,119,473
Notes: 1. R/t, where t refers to tonnes milled. 2. Adjustments in tonnes due to stockpile management.


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Item	Units	Total LOM	FY2030	FY2031	FY2032	FY2033
Waste tonnes mined	t'000	64,547	4,788	6,368	5,459	0
Ore tonnes mined	t'000	34,504	4,022	2,799	4,164	0
Total tonnes mined	t'000	99,051	8,810	9,167	9,623	0
Milled tonnes	t'000	21,404	2,040	2,040	2,040	2,040
Yield	g/t	0.93	0.94	1.14	0.86	0.43
Gold recovered	Kg's	20,029	1,923	2,320	1,759	871
Revenue	ZAR'000	15,282,293	1,467,421	1,770,016	1,342,342	664,776
Operating costs incl. royalty	ZAR'000	12,298,905	1,141,068	1,185,384	1,172,876	614,772
Capital costs	ZAR'000	76,530	6,425	5,725	3,985	3,985

Profit after total costs	ZAR'000	2,906,858	327,839	586,818	96,204	46,019
NPV - (low discount rate - 9%)	ZAR'000	1,604,626
NPV - (medium discount rate - 12%)	ZAR'000	1,335,924
NPV - (high discount rate - 15%)	ZAR'000	1,119,473


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Table 19-5: Gold Price Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
10%	20,029	839,300	16,810,523	12,375,435	4,435,088	2,540,794
5%	20,029	801,150	16,046,408	12,375,435	3,670,973	2,072,710
LOM plan	20,029	763,000	15,282,293	12,375,435	2,906,858	1,604,626
-5%	20,029	724,850	14,518,179	12,375,435	2,142,744	1,136,542
-10%	20,029	686,700	13,754,064	12,375,435	1,378,629	668,458

Table 19-6: Total Operating Costs Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
10%	20,029	763,000	15,282,293	13,612,978	1,669,315	828,920
5%	20,029	763,000	15,282,293	12,994,207	2,288,087	1,216,773
LOM plan	20,029	763,000	15,282,293	12,375,435	2,906,858	1,604,626
-5%	20,029	763,000	15,282,293	11,756,663	3,525,630	1,992,479
-10%	20,029	763,000	15,282,293	11,137,891	4,144,402	2,380,332

Table 19-7: Gold Price, Operating Costs, And Production Variation Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
10%	22,032	839,300	18,500,807	13,612,978	4,878,596	2,794,874
5%	21,031	801,150	16,848,728	12,994,207	3,854,522	2,176,346
LOM plan	20,029	763,000	15,282,293	12,375,435	2,906,858	1,604,626
-5%	19,028	724,850	13,792,270	11,756,663	2,035,607	1,079,715
-10%	18,026	686,700	12,378,658	11,137,891	1,240,766	601,612


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20Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

Kalgold is surrounded by several tenements, namely the Goldridge Block and farms to the North of Goldridge Farm known as the Northern Farms Block (Figure 3-1). There are no other operations nearby. There are no adjacent properties that have bearing on this TRS.


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21Other Relevant Data and Information

Section 229.601(b)(96) (21)

Other relevant data and information pertaining to Kalgold include a Feasibility Study with respect to an increase in the plant capacity, and details of exploration drilling. The Feasibility Study was completed in Q2 of 2021. It included a robust feasibility level mining plan to mine and process 300ktpm of ore in a new plant. The current indicative initial capital outlay required for the plant is extensive.

The LOM study results of 10 years, after plant commissioning, shows that the pay back is relatively short, as per the high capital costs. Exploratory findings are expected to improve the economic analysis of the project. Environmental permitting, value engineering and detailed designs are planned for 2021 - 2022. Value engineering will aim to reduce the capital cost and further increase on the mining recovery factors. This work is still underway.

The results from the exploration drilling at Kalgold outline an expanded, robust mineralised system that extends beyond the current Mineral Resource limits. The exploration drilling and the subsequent definition of the Mineral Resources are ongoing, and the intention is that the Mineral Resource estimate will be continuously updated as the data becomes available and incorporated into the model. The Windmill Mineral Resource extension drilling programme was carried out during 2021. The results of this drilling has been incorporated in the May 2022 model.

At the effective date, a Section 102 application, incorporating the Prospecting Rights into the Kalgold Mining Right, has been refused by the DMRE. This application incorporates other exploration drilling area outside of the existing mining lease, which is currently halted. Harmony is in the process of resubmitting the application.

An exploration budget for this program has been approved and the drilling will start as soon as the formal approval from the DMRE is obtained. The priority drilling targets lie south of the D Zone pit. If successful, it is this drilling program that has the potential to expand the Kalgold Mineral Resource estimates, which has the potential to support the above-mentioned Feasibility Study.

Other relevant information includes the public disclosure reports on Kalgold’s operational, financial, and environmental performance are available on the Company’s corporate website. The following reports are relevant to this TRS:

•Integrated annual report 2022;

•ESG report 2022;

•Financial report 2022;

•Report to shareholders 2022;

•Operational report 2022;

•TCFD report; and


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22Interpretation and Conclusions

Section 229.601(b)(96) (22)

Kalgold is a well-established mine and has been in operation since December 1995. Harmony has no known risks to conduct mining activities over the permitted mining rights’ areas, incorporated as Kalgold. In addition, no known risks are posed over surface access and activities, regarding mining related activities.

Kalgold’s regional geological setting, mineralisation and deposit is well understood. The geology is supported by high resolution aeromagnetic and radiometric survey and, surface and infill drilling findings. The geological anomalies are identified, defined, and managed by the Kalgold Geology Department. Targeted exploration for the 2021/2022 period aimed at extending the Mineral Resources south of the D Zone pit, did not materialise due to the denied Section 102 application

The sampling approach and management, density assumptions, laboratory procedures, and assaying and analysis are in keeping with industry standards and practices and is appropriate for the strata bound, BIF packages type of mineralisation. The holistic understanding of the regional geology, lithological and structural controls of the mineralisation at Kalgold is sufficient to support the estimation of Mineral Resources.

Ore mined at Kalgold is processed at the Kalgold processing facility which has been in operation since January 1996, as such the processing method is considered well established for mineralisation at Kalgold. Kalgold makes use of historical trends and data as a basis for the ore recovery. However, metallurgical test work is adopted for optimisation and Mineral estimation projects.

The data pertaining to the mineralisation, regional and geological setting, exploration findings, sample collection, preparation, and testing, inclusive of data verification and metallurgical test work gives rise to the Mineral Resource estimate. The combined Measured and Indicated Mineral Resource, exclusive of Mineral Reserves, as at 30 June 2022 is 33.675Mt at 1,10g/t gold, containing 1,187Moz of gold, and the Inferred Mineral Resource contains 1.638Mt at 1.40g/t gold, containing 0.074Moz of gold.

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and operational mine planning processes. Mine planning utilises and takes into consideration actual historical technical parameters. In addition, conversion of the Mineral Resources to Mineral Reserves considers Modifying Factors, such as cut-off grade, the MCF, dilution, and the plant recovery factor. The Mineral Reserve is 21.405Mt of milled ore at 1.10g/t gold containing 0.758Moz of gold as at 30 June 2022.

Kalgold is currently operating profitably, and the Mineral Reserve estimates show positive cash flows. Any other by-products that are recovered as part of the refining process, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimates. There are no obvious material risks that could have significant effect on the Mineral Reserves.

The Mineral Reserves are extracted via an open pit mining method using a modular pit approach, based on numerous satellite orebodies, which takes into consideration the mining and rock engineering design guidelines. This mining method increases flexibility and supports overall optimisation of the gold grade. Extracted minerals from Kalgold are recovered at an onsite processing plant. The plant initially treated ore via the heap leach processing methodologies, until January 1998 where the CIL treatment facility and TSF was fully complete.

The mine’s regional and local infrastructure is capable of fully supporting the mining and other surface related mining activities. Kalgold is accessed via national and provincial road networks, has key power transmission and distribution networks provided by the National electricity regulator, water supply networks and communication infrastructure. Overall, Kalgold is well-established with sufficient logistics and infrastructure support for the existing and planned mining operations.


Effective Date: 30 June 2022 92


			Technical Report Summary for Kalgold Mine, North West Province, South Africa

Harmony and Kalgold are exposed to market risks such as exchange rate and gold price fluctuations which are partially offset by the Harmony Group hedging policy. The hedging programme considers factors effecting the global gold market and these, along with macro-economic conditions, are used to determine planning and forecasting inputs at group level for all of Harmony’s operating business units. Other non-gold related risks are addressed to some extent by Kalgold when entering into vendor agreements for the provisions of supplies and services, which are done on a competitive basis with customary price adjustment, renewal, and termination clauses.

To successfully operate a mining operation in South Africa the state requires compliance with applicable environmental laws, regulations, permits and standards. Kalgold adheres to said compliance and regulatory standards. As part of Harmony, Kalgold conducts its operations based on policies and systems that are aligned to its corporate sustainable development framework. This is guided by the principles of the framework from the International Council on Mining and Metals or the United Nations Global Compact. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the GRI. Further to this, Harmony discloses environmental information on the CDP for both climate change and water.

Harmony has a good understanding of the environmental and social aspects through baseline and specialist studies previously conducted. Risk management and mitigation measures were adequately addressed in the environmental management plans. All the required environmental authorisations are in place, except for the Section 102 application, incorporating the Prospecting Rights into the Kalgold Mining Right, which was refused by the DMRE. This application incorporates other exploration drilling area outside of the existing mining lease, which is currently halted. Harmony is in the process of resubmitting the application.

The economics of Kalgold is based on the discounted cash flow model, with a gold price of ZAR763,000/kg. The NPV for the metal price, is ZAR1,605m, at a discount rate of 9%. The NPV is calculated on cash flows that consider factors such as: capital and operating costs; and royalties. The capital and operating cost estimates for Kalgold are based on historical data, as well as budget forecasts. This estimation technique allows for the forecast and actual costs to be aligned.

Royalties and taxes are paid to the South African government and accounted for in the Kalgold cash flow and NPV analysis. There are also specific tax relief benefits that apply to gold mining companies, where 5% of total revenue is exempt from taxation, amongst other benefits. In addition, in response to challenges faced by companies during the COVID-19 pandemic, the government have implemented various stimulus packages to provide some tax relief to companies.

The economics of Kalgold are tested for its sensitivity to commodity price (ZAR/kg), operating costs (ZAR) gold production (kg). The insights provided by the sensitivity analysis is that Kalgold Mine is most sensitive to changes in the gold price (ZAR/kg).

The TRS provides contains information for other relevant data and information pertaining to Kalgold and includes a Feasibility Study with respect to an increase in the plant capacity, and details of exploration drilling. A robust feasibility level mining plan was developed to mine and process 300ktpm of ore in a new plant. Exploratory findings are further expected to improve the economic analysis of the project. The results from the exploration drilling at Kalgold outline an expanded, robust mineralised system that extends beyond the current resource limits.

The TRS was prepared by a team of experienced professionals. The TRS provides a summary of the material scientific and technical information concerning the mineral exploration, Mineral Resources, Mineral Reserves, and associated production activities of the mineral asset, including references to the valuation for Kalgold. Each QP was responsible for specific sections of this TRS which they have personally supervised and reviewed. This TRS contains the expression of the QP opinions, based on the information available at the time of preparation.


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

23Recommendations

Section 229.601(b)(96) (23)

23.1Additional Exploratory Drilling

The current geological model is well understood. The Mineral Resource model in use, as updated in May 2022, is drilled do a standard suitable for robust estimation. However, a significant amount of additional definition drilling would be required to increase more Mineral Resources to a Measured category, as the small high grade ore lenses that fit inside the current drill spacing, would be better defined. To this end, further exploration drilling is required to expand on the current Mineral Resource and Mineral Reserve base. This will also allow the operation to expand on the modular pit approach, which will improve the mining flexibility and LOM.


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

24References

Section 229.601(b)(96) (24)

Anon. 2017. Harmony Gold Mining Company Limited Mineral Resources and Mineral Reserves 2017. https://www.harmony.co.za/component/jdownloads/send/130-2017/2550-kalgold

Anhausseur, C.R. and Walraven, F. 1997. Poly Crustal Evolution of the Archean Kraaipan Granite-Greenstone Terrane, Kaapvaal Craton, South Africa. Economic Geology Research Unit, Department of Geology, University of the Witwatersrand. Information Circular No.313.

Geological Survey of South Africa, Handbook Vol 8, p 690. Lithostratigraphy of the Republic of South Africa, South West Africa/Namibia, and the Republics of Bophuthatswana, Transkei and Venda.

https://www.gold.org/goldhub/data/gold-prices. Accessed 22 July 2022.

https://www.sars.gov.za/media/tax-relief-measures/ Retrieved from Tax Relief Measures.

https://www.wits.ac.za/media/migration/files/cs-38933-fix/migrated-pdf/pdfs-8/EGRI%20313.pdf

Hammond N Q and Moore J M 2006 - Archaean lode gold mineralisation in banded iron formation at the Kalahari Goldridge deposit, Kraaipan Greenstone Belt, South Africa: in Mineralium Deposita v41 pp 483-503

Hammond N Q, Moore J M and Sheets R W, 2007 - Physico-chemical conditions of ore-forming fluids associated with genesis of the Kalahari Goldridge deposit, Kraaipan Greenstone Belt, South Africa: in Ore Geology Reviews v30 pp 106-134

Hammond, N.Q., Moore, J.M. Archaean lode gold mineralisation in banded iron formation at the Kalahari Goldridge deposit, Kraaipan Greenstone Belt, South Africa. Miner Deposita 41, 483–503 (2006). https://doi.org/10.1007/s00126-006-0074-6

Poujol. M., Robb. L.J., Anhausseur, C.R., and Gericke, B. 2002. Chronological Constraints on the Evolution of the Kaapvaal Craton, South Africa. Economic Geology Research Institute – Hugh Allsopp Laboratory, School of Geosciences, University of the Witwatersrand. Information Circular No. 360.

https://www.wits.ac.za/media/migration/files/cs-38933-fix/migrated-pdf/pdfs-7/360.pdf.

SACS (South African Committee for Stratigraphy) (1980) Stratigraphy of South Africa. Part I. (Compiler, L. E Kent).

South African Revenue Services. (2021, July 29). South African Revenue Services.

SRK, February 2021. Review of the Kalgold Mine 2020 Mineral Resource Estimate, Report No. 557066.

World Gold Council. (2022, July 13). World Gold Council, Gold Hub, Gold mine production: Gold Production by Country | Gold Production | Goldhub


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			Technical Report Summary for Kalgold Mine, North West Province, South Africa

25Reliance on Information Provided by the Registrant

Section 229.601(b)(96) (25)

Further to Section 24, there are no additional internal specialists of the Registrant which the principal QPs and authors have relied upon.


Effective Date: 30 June 2022 96

HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Mine Waste Solutions (MWS) and West Wits Operations

North West and Gauteng Provinces,

South Africa

Effective Date: 30 June 2022

Final Report Date: 15 July 2022


			Technical Report Summary for Mine Waste Solutions, North West, South Africa


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.

Effective Date: 30 June 2022


			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Signature Page

/s/ Bareng Joseph Selebogo

___________________________________

Mr Bareng Joseph Selebogo

NHD Mineral Resource Management

SAGC (No. MS 0151), MSCC (No. 1900)

Ore Reserve Manager

Harmony Gold Mining Company Limited

Effective Date: 30 June 2022

Final Report Date: 15 July 2022

Effective Date: 30 June 2022

iii


			Technical Report Summary for Mine Waste Solutions, North West, South Africa

List of Contents


1	Executive Summary			1
2	Introduction			9
3	Property Description and Location			10
	3.1	MWS Operation		10
		3.1.1	Description and Location	10
		3.1.2	Mineral Tenure	10
		3.1.3	Property Permitting Requirements	13
	3.2	West Wits Operation		13
		3.2.1	Description and Location	13
		3.2.2	Mineral Tenure	15
		3.2.3	Property Permitting Requirements	15
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			17
	4.1	MWS Operation		17
		4.1.1	Accessibility	17
		4.1.2	Physiology and Climate	17
		4.1.3	Local Resources and Infrastructure	17
	4.2	West Wits Operation		17
		4.2.1	Accessibility	17
		4.2.2	Physiology and Climate	17
		4.2.3	Local Resources and Infrastructure	18
5	History			19
	5.1	Historical Ownership and Development		19
		5.1.1	MWS Operation	19
		5.1.2	West Wits Operation	19
	5.2	Historical Exploration		19
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		19
	5.4	Past Production		22
6	Geological Setting, Mineralisation and Deposit			24
	6.1	Regional Geology		24
	6.2	Local Geology		24
	6.3	Property Geology		24
		6.3.1	TSF	24
		6.3.2	WRDs	27
	6.4	Mineralisation		27
	6.5	Deposit Type		27
	6.6	Commentary on Geological Setting, Mineralisation and Deposit		27
7	Exploration			28
	7.1	Mapping Surveys		28
	7.2	Topographic Surveys		28
	7.3	TSF Surface Drilling Campaigns, Procedures and Results		28
		7.3.1	Drilling Methods	28
		7.3.2	Collar and Downhole Surveys	31
		7.3.3	Logging Procedure	31
		7.3.4	Drilling Results	31
		7.3.5	Sample Recovery	31
		7.3.6	Sample Length and True Thickness	31
	7.4	Hydrogeology		31
	7.5	Geotechnical Data		31
	7.6	Commentary on Exploration		32
8	Sample Preparation, Analyses and Security			33

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			Technical Report Summary for Mine Waste Solutions, North West, South Africa


	8.1	TSFs			33
		8.1.1	Sampling Method and Approach		33
		8.1.2	Density Determination		33
		8.1.3	Sample Security		33
		8.1.4	Sample Storage		33
		8.1.5	Laboratories Used		33
		8.1.6	Laboratory Sample Preparation		33
		8.1.7	Assaying Methods and Analytical Procedures		34
		8.1.8	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)		35
		8.1.9	Standards		35
			8.1.9.1	Milled Blanks	35
			8.1.9.2	Duplicates	35
	8.2	WRDs			36
		8.2.1	Sampling Method and Approach		36
		8.2.2	Density Determination		36
		8.2.3	Sample Security		36
		8.2.4	Sample Storage		36
		8.2.5	Laboratories Used		36
		8.2.6	Laboratory Sample Preparation Procedures		36
		8.2.7	Assaying and Analytical Procedures		37
		8.2.8	Sampling and Assay QC Procedures and QA		37
			8.2.8.1	Standards	37
			8.2.8.2	Blanks	37
			8.2.8.3	Duplicates	37
	8.3	Commentary on Sample Preparation, Analyses and Security			38
9	Data verification				39
	9.1	Databases			39
	9.2	Data Verification Procedures			39
	9.3	Limitations to the Data Verification			39
	9.4	Comment on Data Verification			39
10	Mineral Processing and Metallurgical Testing				40
	10.1	Extent of Processing, Testing, and Analytical Procedures			40
	10.2	Degree of Representation of the Mineral Deposit			40
	10.3	Analytical Laboratory Details			40
	10.4	Test Results and Recovery Estimates			41
	10.5	Commentary on Mineral Processing and Metallurgical Testing			41
11	Mineral Resource Estimate				43
	11.1	TSFs - Mineral Resource Estimation Methods			43
		11.1.1	Geological (Sampling) Database		43
		11.1.2	Global Statistics		43
		11.1.3	Compositing		44
		11.1.4	Capping		44
		11.1.5	Variography		44
		11.1.6	3D Model		44
		11.1.7	Grade Estimation		45
		11.1.8	Density Assignment		45
		11.1.9	Block Model Validation		45
	11.2	WRDs - Mineral Resource Estimation Methods			47
		11.2.1	Geological (Sampling) Database		47
		11.2.2	Global Statistics		47

Effective Date: 30 June 2022


			Technical Report Summary for Mine Waste Solutions, North West, South Africa


		11.2.3	Compositing	47
		11.2.4	Variography	47
		11.2.5	3D Model	47
		11.2.6	Grade Estimation	47
		11.2.7	Density Assignment	47
		11.2.8	Block Model Validation	48
	11.3	Mineral Resource Evaluation		48
	11.4	Mineral Resource Classification and Uncertainties		48
		11.4.1	TSFs	49
		11.4.2	WRDs	49
	11.5	Mineral Resource Estimate		49
	11.6	Mineral Resource Reconciliation		55
	11.7	Commentary on Mineral Resource Estimate		56
12	Mineral Reserve Estimate			57
	12.1	MWS Operation Mineral Reserve Estimate		57
		12.1.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve	57
		12.1.2	Modifying Factors	57
		12.1.3	Mineral Reserve Estimate	58
	12.2	West Wits Operation Mineral Reserve Estimate		59
		12.2.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve	59
		12.2.2	Modifying Factors	59
		12.2.3	Mineral Reserve Estimate	59
	12.3	Mineral Reserve Reconciliation		60
	12.4	Commentary on Mineral Reserve Estimate		60
13	Mining Method			61
	13.1	Mine Design		61
		13.1.1	TSFs	61
		13.1.2	WRDs	61
	13.2	Mining Operations		62
		13.2.1	TSFs	62
		13.2.2	WRDs	62
	13.3	Geotechnical and Hydrological Considerations		62
		13.3.1	TSFs	62
		13.3.2	WRDs	62
	13.4	Dilution and Grade Control		62
		13.4.1	TSFs	62
		13.4.2	WRDs	62
	13.5	LOM Schedule		64
		13.5.1	MWS Operation	64
		13.5.2	West Wits Operation	64
	13.6	Ore Transport		64
		13.6.1	MWS Operation	64
		13.6.2	West Wits Operation	64
	13.7	Mining Equipment and Machinery		64
		13.7.1	MWS Operation	64
		13.7.2	West Wits Operation	64
	13.8	Mining Personnel		68
		13.8.1	MWS Operation	68
		13.8.2	West Wits Operation	68

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			Technical Report Summary for Mine Waste Solutions, North West, South Africa


	13.9	Commentary on Mining Method		68
14	Processing and Recovery Methods			69
	14.1	MWS Operation (MWS Gold Plant)		69
		14.1.1	Mineral Processing Description	69
		14.1.2	Plant Throughput, Design, Equipment Characteristics and Specifications	69
		14.1.3	Energy, Water, Process Material and Personnel Requirements	71
	14.2	West Wits Operation (Savuka Plant)		71
		14.2.1	Mineral Processing Description	71
		14.2.2	Plant Throughput, Design, Equipment Characteristics and Specifications	71
		14.2.3	Energy, Water, Process Material and Personnel Requirements	73
	14.3	Commentary on the Processing and Recovery Methods		73
15	Infrastructure			75
	15.1	MWS Operation Surface Infrastructure		75
		15.1.1	Ore and Waste Rock Storage Facilities	75
		15.1.2	Tailings Storage Facilities	75
		15.1.3	Pipelines and Conveyors	75
		15.1.4	Power and Electrical	75
		15.1.5	Water Usage	75
		15.1.6	Logistics and Supply	75
	15.2	West Wits Operation Surface Infrastructure		78
		15.2.1	Ore and Waste Rock Storage Facilities	78
		15.2.2	Tailings Storage Facilities	78
		15.2.3	Pipelines and Conveyors	78
		15.2.4	Power and Electrical	78
		15.2.5	Water Usage	78
		15.2.6	Logistics and Supply	78
	15.3	Commentary on Infrastructure		78
16	Market Studies			81
	16.1	Market Overview		81
	16.2	Global Production and Supply		81
		16.2.1	New Mine Production	81
		16.2.2	Recycling	81
	16.3	Global Consumption and Demand		81
		16.3.1	Jewellery	81
		16.3.2	Investment	82
		16.3.3	Currency	82
	16.4	Gold Price		82
		16.4.1	Historical Gold Price	82
		16.4.2	Forecast Gold Price	82
		16.4.3	Harmony Group Gold Hedging Policy	82
		16.4.4	Gold-Streaming Arrangement: Franco-Nevada Corporation	84
	16.5	Commentary on Market Studies		84
	16.6	Material Contracts		84
17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			86
	17.1	Results of Environmental Studies		86
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		86
	17.3	Permitting and Licences		87
	17.4	Local Stakeholder Plans and Agreements		87
	17.5	Mine Closure Plans		89

Effective Date: 30 June 2022

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			Technical Report Summary for Mine Waste Solutions, North West, South Africa


	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups		89
	17.7	Local Procurement and Hiring		90
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		90
18	Capital and Operating Costs			91
	18.1	MWS Operation		91
		18.1.1	Capital Costs	91
		18.1.2	Operating Costs	91
	18.2	West Wits Operation		91
		18.2.1	Capital Costs	91
		18.2.2	Operating Costs	91
19	Economic Analysis			94
	19.1	Key Economic Assumptions and Parameters		94
		19.1.1	Metallurgical Recoveries	94
		19.1.2	Gold Price	94
		19.1.3	Exchange Rate	94
		19.1.4	Royalties	96
		19.1.5	Capital Expenditure	96
		19.1.6	Operating Expenditure	96
		19.1.7	Working Capital	96
		19.1.8	Taxes	96
		19.1.9	Closure Cost and Salvage Value	96
		19.1.10	Summary	96
	19.2	Economic Analysis		97
	19.3	Sensitivity Analysis		103
		19.3.1	MWS Operation Sensitivity Analysis	103
		19.3.2	West Wits Operation Sensitivity Analysis	103
20	Adjacent properties			105
21	Other Relevant Data and Information			105
22	Interpretation and Conclusions			106
23	Recommendations			108
24	References			109
25	Reliance on Information Provided by the Registrant			110

Effective Date: 30 June 2022

viii


			Technical Report Summary for Mine Waste Solutions, North West, South Africa

List of Figures


Figure 3-1: Location of MWS and West Wits			11
Figure 3-2: Mineral Tenure and Location of MWS Operation			12
Figure 3-3: Mineral Tenure and Location of West Wits Operation			14
Figure 5-1: Graph of Past Production – Tonnes and Grade			23
Figure 5-2: Graph of Past Metal Production			23
Figure 6-1: Geological setting of the Witwatersrand Basin			25
Figure 6-2: Stratigraphy of the CRG in the Witwatersrand Supergroup			26
Figure 7-1: Location of TSF Drilling at MWS Operation			29
Figure 7-2: Location of TSF Drilling at West Wits Operation			30
Figure 11-1: Distribution of Gold Grades into the Block Models for South East, MWS 5, East 5 and Old North TSFs			46
Figure 11-2: Location and Classification of MWS Operation Mineral Resources			50
Figure 11-3: Location and Classification of West Wits Operation Mineral Resources			51
Figure 13-1: Photograph of TSF Reclamation			63
Figure 13-2: Photograph of WRD Mining			63
Figure 13-3: Graph of FY2022 Production by Source for MWS			65
Figure 13-4: Graph of FY2022 Production by Source for West Wits			65
Figure 13-5: Graph of LOM for MWS – Tonnes and Grade			66
Figure 13-6: Graph of LOM for MWS – Gold Produced (kg)			66
Figure 13-7: Graph of LOM for West Wits – Tonnes and Grade			67
Figure 13-8: Graph of LOM for MWS – Gold Produced (kg)			67
Figure 14-1: Schematic Flow Diagram of the Metallurgical Process Diagram at MWS Gold Plant			70
Figure 14-2: Schematic Flow Diagram of the Metallurgical Process Diagram at Savuka Plant			72
Figure 14-3: Graph of Historical Gold Recovery at MWS Gold Plant			74
Figure 14-4: Graph of Historical Gold Recovery at Savuka Plant			74
Figure 15-1: Infrastructure Plan for MWS Operation			76
Figure 15-2: Detailed Infrastructure for the MWS Plant			77
Figure 15-3: Infrastructure Plan for West Wits Operation			79
Figure 15-4: Detailed Infrastructure for the Savuka Plant			80
Figure 16-1: Graph of Annual Gold Price History – ZAR/kg			83
Figure 16-2: Graph of Consensus View of Forecast Gold Price			83
Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast			95

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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

List of Tables


Table 1-1:	Summary of the MWS Operation Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9	3
Table 1-2:	Summary of the West Wits Operation Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9	4
Table 1-3:	Summary of the MWS Operation Mineral Reserves as at 30 June, 2022 1-5	5
Table 1-4:	Summary of the West Wits Operation Mineral Reserves as at 30 June, 2022 1-5	5
Table 1-5:	Summary of LOM Capital Cost Estimate for MWS Operation Major Projects	7
Table 1-6:	Summary of Operating Cost Estimates for MWS Operation (MWS Gold Plant)	7
Table 1-7:	Summary of Operating Cost Estimates for West Wits Operation	8
Table 1-8:	Status of Environmental Permits and Licences	8
Table 2-1:	QP Qualification, Section Responsibilities and Personal Inspections	9
Table 3-1:	MWS Surface Deposits and Processing Route	10
Table 3-2:	MWS Property and Land Ownership	13
Table 3-3:	West Wits Surface Deposits and Processing Route	15
Table 3-4:	Summary of Mining Rights for West Wits	15
Table 3-5:	West Wits Property and Land Ownership	16
Table 5-1:	Summary of the Previous MWS Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)	19
Table 5-2:	Summary of the Previous West Wits Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)	20
Table 5-3:	Summary of the Previous MWS Mineral Reserves as at 30 June 2021	21
Table 5-4:	Summary of the Previous West Wits Mineral Reserves as at 30 June 2021	21
Table 7-1:	TSF Drilling Grid Spacing	27
Table 8-1:	Summary of Analytical Quality Control Data	33
Table 8-2:	Summary of Laboratory Standard Results for WRDs	36
Table 10-1	Gold Association for the Stream 1 Sample	39
Table 10-2	Gold Association for the Stream 2 Sample	39
Table 10-3	Gold Association for the Stream 3 Sample	39
Table 11-1	Summary of the Gold Assay Descriptive Statistics for the TSFs	41
Table 11-2	Summary of the Uranium Assay Descriptive Statistics for the TSFs	42
Table 11-3	Summary of the Gold Assay Descriptive Statistics for the Buffels 9, Margaret and Mponeng WRDs	45
Table 11-4	Summary of Geostatistical Parameters Used for Mineral Resource Estimation	46
Table 11-5	Classification of MWS Mineral Resources and Mineral Reserves by Surface Deposit ID	50
Table 11-6	Classification of West Wits Mineral Resources and Mineral Reserves by Surface Deposit ID	51
Table 11-7	Summary of the MWS Operation Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9	52
Table 11-8	Summary of the West Wits Operation Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9	53
Table 12-1	MWS Operation Mineral Reserves Modifying Factors (30 June 2022)	55
Table 12-2	Summary of the MWS Mineral Reserves as at 30 June 2022 1-5	56
Table 12-3	West Wits Operation Mineral Reserves Modifying Factors (30 June 2022)	57
Table 12-4	Summary of the West Wits Mineral Reserves as at 30 June 2022 1-5	58
Table 13-1	Key Hydro-Mining Design Parameters for TSFs	59
Table 13-2	Key WRD Mining Design Parameters	59
Table 13-3	MWS Operation Mining and Processing Employee Count	66
Table 13-4	West Wits Operation Mining and Processing Employee Count	66
Table 14-1	MWS Gold Plant Capacities and Treatment Rates	67
Table 14-2	MWS Gold Plant Leaching Process Parameters	67

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			Technical Report Summary for Mine Waste Solutions, North West, South Africa


Table 14-3	MWS Gold Plant Equipment Specifications	69
Table 14-4	MWS Gold Plant Energy and Water Requirements	69
Table 14-5	Savuka Plant Leaching Process Parameters	71
Table 14-6	Savuka Plant Equipment Specification	71
Table 14-7	Savuka Plant Energy and Water Requirements	71
Table 16-1	Material Contracts	83
Table 17-1	Status of Environmental Permits and Licences	86
Table 18-1	MWS LOM Capital Cost Estimate for MWS Operation Major Projects	90
Table 18-2	Summary of Operating Cost Estimates for MWS Operation (MWS Gold Plant)	91
Table 18-3	Summary of Operating Cost Estimates for West Wits Operation	91
Table 19-1	Conversions Used in Gold Price Calculations	92
Table 19-2	Gold Prices Used	92
Table 19-3	ZAR:USD Exchange Rate Performance (June 2019 – June 2022)	94
Table 19-4	Key Economic Assumptions and Parameters for MWS Cash Flow	95
Table 19-5	Key Economic Assumptions and Parameters for West Wits Cash Flow	95
Table 19-6	MWS Operation Cash Flow	96
Table 19-7	West Wits Operation Cash Flow	98
Table 19-8	MWS Gold Price Sensitivity Analysis	99
Table 19-9	MWS Operating Cost Sensitivity Analysis	99
Table 19-10	MWS Capital Cost Sensitivity Analysis	99
Table 19-11	West Wits Gold Price Sensitivity Analysis	100
Table 19-12	West Wits Operating Cost Sensitivity Analysis	100
Table 25-1	Other Specialists	104

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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
°C			degrees Celsius
µm			Micrometres
2D			Two-dimensional
3D			Three-dimensional
AE			Abnormal expenditure
Ag			Silver
AngloGold or AGA			AngloGold Ashanti Limited
Au			Gold
AuBIS			Harmony electronic database
Ave.			Average
Bn			Billion
c.			Approximately
CCLAS			Comlabs Computerised Laboratory Automation System
CIL			Carbon in leach
CIP			Carbon-In-Pulp
CLR			Carbon Leader Reef
cm			Centimetre
cmg/t			Centimetre-grams per tonne
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COP			Code of Practice
COV			Coefficient of Variation
CRG			Central Rand Group
CRM			Certified Reference Material
Datamine™			Datamine™ Studio RM modelling software
DMRE			Department of Mineral Resources and Energy
DTM			Digital Terrain Model
DWS			Department of Water and Sanitation
EIA			Environmental Impact Assessment
EMPR			Environmental Management Programme
EMS			Environmental Management System
ESG			Environmental Social and Governance
ETF			Exchange traded funds
EW-SX			Electro-wining solvent extraction
FAAS			Flame Atomic Absorption Spectroscopy
FX			Foreign Exchange rate
g			Gram
g/t			Grams per tonne
g/t			Grams per metric tonne
GISTM			Global Industry Standard on Tailings Management
GPS			Global positioning system
Ha			Hectares
Harmony			Harmony Gold Mining Company Limited
HPE			Hydro-powered
Kg			Kilogram
km			Kilometre
km2			Square kilometre
Kusasalethu			Kusasalethu Gold Mine
kWh			Kilowatt-hour

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			Technical Report Summary for Mine Waste Solutions, North West, South Africa


LOM			Life of Mine
Ltd			Limited
m			Metre
M			Million
m3/hr			Cubic metres per hour
masl			Metres above sea level
MCC			Mining Charter Compliance
MCF			Mine Call Factor
Mine Waste Solutions			Mine Waste Solutions operation
Mintek			South Africa's national mineral research organisation
Mlb			Million pounds
Moz			Million troy ounces
Mponeng			Mponeng Gold Mine
MPRDA			Mineral and Petroleum Resources Development Act, 28 of 2002
Mt			Million tonnes
Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
MWS Operations			Mine Waste Solutions Operation on Free State / North West Province boundary
NEMA			National Environmental Management Act, 107 of 1998
No.			Number
NPV			Net present value
OTC			Over the counter
oz			Troy ounce
PSD			Particle Size Distribution
Pty			Proprietary
QA/QC			Quality Assurance/Quality Control
QP			Qualified Person
ROM			Run-of-Mine
SACNASP			South African Council for Natural Scientific Professions
SAMREC			The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves
Savuka			Savuka Gold Mine
SD			Standard Deviation
SEC			Securities and Exchange Commission
SGS			SGS South Africa (Pty) Limited
SLP			Social Labour Plan
t			Metric tonne
t/m3			Tonne per cubic metre
TauTona			TauTona Gold Mine
TRS			Technical Report Summary
TSF			Tailings Storage Facility
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
VCR			Ventersdorp Contact Reef
VR			Vaal Reef
West Wits			Harmony's West Rand operations
WRD			Waste Rock Dump
WRG			West Rand Group
WUL(s)			Water Use Licence(s)
XRF			is X-ray fluorescence spectrometry
ZAR			South African Rand
ZAR/kg			South African Rand per kilogram

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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Glossary of Terms


Term			Definition
Cut-off grade			Cut-off grade is the grade (i.e. the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Dilution			Unmineralized rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Head grade			The average grade of ore fed into the mill.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a Mineral Reserve.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.

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			Technical Report Summary for Mine Waste Solutions, North West, South Africa


Modifying Factors			Modifying factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include but are not restricted to; mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product.
			(1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable.
			(2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is:
			(1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and
			(2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must:
			(i) Be either:
			(A) An organization recognized within the mining industry as a reputable professional association; or
			(B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field;
			(ii) Admit eligible members primarily on the basis of their academic qualifications and experience;
			(iii) Establish and require compliance with professional standards of competence and ethics;
			(iv) Require or encourage continuing professional development;
			(v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and
			(vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.
Tailings Freeboard			The vertical height between the beached tailings against the embankment crest and the crest itself.

Effective Date: 30 June 2022


			Technical Report Summary for Mine Waste Solutions, North West, South Africa

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Person(s) (“QP”) of Harmony Gold Mining Company Limited (“Harmony” or the “Company”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Company’s Mine Waste Solutions (“Mine Waste Solutions”) operations. The TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, with an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature of this TRS.

Property Description

Mine Waste Solutions is a surface operation which produces an estimated 95,000 ounces (“oz”) of gold per annum from the reclamation of gold from tailings storage facilities (“TSFs”) and waste rock dumps (“WRDs”). Mine Waste Solutions is divided into two distinct, geographically separated operations namely, the MWS Operation (or “MWS”) and the West Wits Operation.

The MWS Operation is located near the Vaal River, on the Free State - North West Provincial border and processes reclaimed tailings from TSFs, which are fed via three ore streams operating as separate plants within the MWS Gold Plant. The MWS Operation also has access to WRDs which are included in its Mineral Resource estimates.

The West Wits Operation (“West Wits”) is situated in the West Rand Region of the Gauteng Province. The West Wits Operation processes reclaimed tailings from the Old North TSF and waste rock from the Savuka WRD which are processed at the Savuka Plant.

Ownership

Mine Waste Solutions and its associated mineral rights are wholly owned by Harmony through its interest in Chemwes Proprietary Limited. Harmony acquired the assets as part of the transaction to take full ownership and control of AngloGold's remaining South African business, as of October 1, 2020.

Geology and Mineralisation

Material contained in the TSFs and WRDs predominantly originates from deep level gold mines, operated by Harmony and others, mostly located in Klerksdorp and Carletonville. The West Wits mining operations predominantly extract tabular gold-bearing conglomeratic reefs, namely the Carbon Leader Reef (“CLR”) and Ventersdorp Contact Reef (“VCR”). The MWS Operation, however, mainly exploits TSFs and WRD derived from the Vaal Reef (“VR”).

The Witwatersrand reefs occur within the Archean Witwatersrand Basin which hosts the Witwatersrand Supergroup succession. The VCR horizon is located at the top of the Turffontein Subgroup of the Central Rand Group (“CRG”), capping the Witwatersrand Supergroup. The VR horizon is situated within the Krugersdorp Formation, in the Johannesburg Subgroup of the CRG. The CLR is situated near the base of the Johannesburg Subgroup.

The TSF material comprises previously treated residues of gold-bearing conglomeratic reefs processed by carbon-in-leach (“CIL”). They are man-made “deposits” and are not the result of natural sedimentary processes. The grade of the TSFs is determined by the grade of the ore source at the time that they were processed, and the processing efficiency.

The WRDs are unconsolidated and are comprised of untreated, low grade, gold-bearing material from underground workings. The WRDs are also man-made deposits, with very little structure or continuity, and one in which the grade does not behave as a natural mineral deposit.


Effective Date: 30 June 2022 1


			Technical Report Summary for Mine Waste Solutions, North West, South Africa

The most significant mineral in the TSFs and WRDs is quartz, which is makes up more than 60% of the bulk mineral composition. The gold predominantly occurs in pyrite. Other minerals identified include uranium, iron oxide, titanium oxide and calcite from the VR, VCR and CLR conglomerates.

Current Status of Exploration, Development and Operation

Prior to 2011, grade estimations for the TSFs were based on residue grades obtained from the process plants, as well as various sampling projects in selected areas.

Most of these TSFs have since been sampled by means of an auger drilling exercise which commenced in 2011. The remaining TSFs will be sampled once they go out of service and become dormant.

Mine Waste Solutions made a recent decision not to treat WRD material, and hence the Savuka Plant was converted to a TSF-only processing facility by late 2021.

Mineral Resource Estimate

The current Mineral Resources for the TSFs were estimated using Datamine™ Studio RM modelling software (“Datamine™”), based on a validated Datamine™ Fusion database. The database contained auger drillhole sampling data obtained until June 2022. The QP created three dimensional (“3D”) digital terrain models (“DTM”) based on the TSF topographical survey results and gold values were estimated using the ordinary kriging interpolation method.

The Mineral Resources for the WRDs were also estimated using 3D DTMs to constrain the volumes. The gold grade was estimated by using the weighted average of the sample assays, as well as the gold grades obtained from reclaimed tonnes and from rock deposited on the stockpiles.

The Mineral Resource estimates, as at 30 June 2021, exclusive of the reported Mineral Reserves, are summarised in Table 1-1 and Table 1-2 for the MWS and West Wits operations, respectively.

The QP compiling the Mineral Resource estimates is Mr BJ Selebogo, who is the Ore Reserve Manager and an employee of Harmony.

Mineral Reserve Estimate

The Mineral Reserves are reported at 30 June 2022, as delivered to the plant. The Mineral Reserves are declared as delivered to the plant for all TSFs, except for the recovered gold content. This gold content is calculated after factoring in the plant recovery as a modifying factor. The Mineral Reserve estimates for MWS and West Wits operations are provided in Table 1-3 and Table 1-4, respectively

The QP compiling the Mineral Resource estimates is Mr BJ Selebogo, who is the Ore Reserve Manager and an employee of Harmony.


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Table 1-1: Summary of the MWS Operation Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9


METRIC			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (g/t)	U3O8 (kg/t)	Gold (kg)	U3O8 (t)
Measured	TSF	54.123	0.20	0.067	11,012	3,635


Indicated	TSF	113.045	0.19	0.075	21,415	8,489
	WRD	2.461	0.30	-	741	-

Total / Ave. Measured + Indicated		169.629	0.20	0.073	33,168	12,124

Inferred	WRD	2.520	0.28	-	700	-


IMPERIAL			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (oz/t)	U3O8 (lb/t)	Gold (Moz)	U3O8 (Mlbs)
Measured	TSF	59.660	0.006	0.134	0.354	8.013


Indicated	TSF	124.611	0.006	0.150	0.688	18.714
	WRD	2.713	0.009	-	0.024	-

Total / Ave. Measured + Indicated		186.984	0.006	0.143	1.066	26.728

Inferred	WRD	2.778	0.008	-	0.022	-
Total / Ave Inferred		2.778	0.008	0.000	0.022	0.000
Notes:
1. The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is Ore Reserve Manager, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No cut-off grade has been applied for the estimation of Mineral Resources. Mineral Resource tonnes are reported based on a gold price of USD1,723/oz.
4. Tonnes are reported as million tonnes rounded to three decimal places. Gold values are rounded to zero decimal places.
5. Uranium content is reported as part of the MWS Mineral Resource estimate only.
6. Metal content does not include allowances for processing losses.
7. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
8. Rounding as required by reporting guidelines may result in apparent summation differences .
9. The Mineral Resource estimate is for Harmony’s 100% interest.


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Table 1-2: Summary of the West Wits Operation Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9


METRIC			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (g/t)	U3O8 (kg/t)	Gold (kg)	U3O8 (t)



Indicated	TSF	22.899	0.36	-	8,260	-
	WRD	1.102	0.47	-	513	-

Total / Ave. Measured + Indicated		24.001	0.37	0.000	8,773	0




IMPERIAL			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (oz/t)	U3O8 (lb/t)	Gold (Moz)	U3O8 (Mlbs)



Indicated	TSF	25.242	0.011	-	0.266	-
	WRD	1.214	0.014	-	0.016	-

Total / Ave. Measured + Indicated		26.457	0.011	0.000	0.282	0.000



Notes:
1. The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is Ore Reserve Manager, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No cut-off grade has been applied for the estimation of Mineral Resources. Mineral Resource tonnes are reported based on a gold price of USD1,723/oz.
4. Tonnes are reported as million metric tonnes (“Mt”) rounded to three decimal places. Gold values are rounded to zero decimal places.
5. Uranium content is reported as part of the MWS Mineral Resource estimate only.
6. Metal content does not include allowances for processing losses.
7. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
8. Rounding as required by reporting guidelines may result in apparent summation differences .
9. The Mineral Resource estimate is for Harmony’s 100% interest.


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Table 1-3: Summary of the MWS Operation Mineral Reserves as at 30 June, 2022 1-5

METRIC

Mineral Reserve Category

Source

Milled Tonnes (Mt)

Gold Grade (g/t Au)

Gold Content (kg)

Proven

TSF

21.083

0.26

5,553

Probable

TSF

419.192

0.27

113,173

Total / Ave (Proved + Probable)

440.275

0.27

118,726

IMPERIAL

Mineral Reserve Category

Source

Milled Tonnes (Mt)

Gold Grade (oz/t)

Gold Content (Moz)

Proven

TSF

23.240

0.008

0.179

Probable

TSF

462.080

0.008

3.639

Total / Ave (Proved + Probable)

485.320

0.008

3.817

Notes:

1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is the Ore Reserve Manager, and a Harmony employee.

2. Tonnes, grade, and content are declared as net delivered to the mills.

3. Gold content is recovered gold after taking into consideration the modifying factors.

4. Mineral Reserves are reported using a cut-off grade of 0.23g/t and a gold price of USD1,546/oz.

5. Recovered gold (kg) is based on a conversion factor of 32.1507oz/kg.

Table 1-4: Summary of the West Wits Operation Mineral Reserves as at 30 June, 2022 1-5

METRIC

Mineral Reserve Category

Source

Milled Tonnes (Mt)

Grade (g/t Au)

Content Au (kg)

Probable

TSF

19.325

0.33

6,288

Total / Ave (Proved + Probable)

19.325

0.33

6,288

IMPERIAL

Mineral Reserve Category

Source

Milled Tonnes (Mt)

Gold Grade (oz/t)

Content (Moz Au)

Probable

TSF

21.302

0.009

0.202

Total / Ave (Proved + Probable)

21.302

0.009

0.202

Notes:

2. Tonnes, grade, and gold content are declared as net delivered to the mills.

3. Gold content is recovered gold after taking into consideration the modifying factors.

4. Mineral Reserves are reported using a cut-off grade of 0.28g/t and a gold price of USD1,546/oz.

5. Recovered gold (kg) is based on a conversion factor of 32.1507oz/kg.


Effective Date: 30 June 2022 5


			Technical Report Summary for Mine Waste Solutions, North West, South Africa

In the opinion of the QP, given that Mine Waste Solutions is an established operation, the Modifying Factors informing the Mineral Reserve estimates would at minimum, satisfy the confidence levels of a Pre-Feasibility Study.

The economic analysis of the cash flows displays positive results and are deemed both technically and economically achievable.

Capital and Operating Cost Estimates

The capital cost estimates for the MWS and West Wits operations are determined at corporate level, using the business plan as a basis. The capital cost elements include equipment, infrastructure and operating capital. The capital costs are reported in ZAR terms and on a real basis.

The capital cost estimates for MWS are presented in Table 1-5. West Wits does not have any capital requirements.

The operating cost estimates for the MWS and West Wits operations are categorised into nine allocated cost categories. The capital costs are reported in ZAR terms and on a real basis. A summary of the MWS and West Wits operating cost estimate, per stream, are presented in Table 1-6 and Table 1-7, respectively.

Permitting Requirements

To successfully operate a mining or reclamation operation in South Africa, the State requires compliance with applicable environmental laws, regulations, permits and standards. Mine Waste Solutions adheres to said compliance and regulatory standards and have, in addition, implemented an Environmental Management System in line with the ISO 14001. Mine Waste Solutions has all permits required to operate. The status of the permits held by the company are presented in Table 1-8.

Conclusions

Mine Waste Solutions is a wholly owned asset of Harmony, which is comprised of the MWS and West Wits operations. The majority of the assets were previously owned by AngloGold Ashanti and have been operating for many years. The operations are accessible and have good regional infrastructure. Management has a good handle on aspects pertaining to legal and environmental matters with respect to operating within the South African law, as regulated by the MPRDA, and supporting legislation.

MWS and West Wits have a significant Mineral Resource base, comprising gold-bearing TSFs and WRDs. These man-made deposits have their own depositional and mineralisation characteristics, and the exploration, modelling and estimation practices informing Mineral Resource estimates for these types of deposits is well established. The exploitation of these deposits either through reclamation by hydraulic monitoring guns or through loading operations is also well established, and Mine Waste Solutions has all the necessary infrastructure required to implement the mine plan.

Under the assumptions in this TRS, the MWS and West Wits operations shows a positive cash flow over the Life of Mine which supports the Mineral Resource and Mineral Reserve estimates, and the mine plan is achievable under the set of assumptions and parameters used.

Recommendations

It is recommended that a drone survey be carried out monthly to provide a high degree of accuracy with respect to digital terrain model and monthly survey results. The associated cost would be ZAR600,000 per annum (“pa”).

Stringent measures must be put in place to ensure the reclamation is done at an acceptable density to avoid bypass to Kareerand to ensure all declared tonnages are processed for gold.

In the case where deposition occurred after drilling, it is recommended that the model totals be updated with the deposited volumes, tonnage and gold grade.


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Table 1-5: Summary of LOM Capital Cost Estimate for MWS Operation Major Projects


Capital Cost Element (ZARm)			Total LOM (FY2023 - FY2039)
Kareerand			2,052.34
West 1			215.06
Mispah 1			400.90
Buffels5			56.97

MWS 4 & 5 Pump1			309.77
Stream 4			168.62
VR Substation			21.10
Other			1,658.21
Total			4,882.98

Table 1-6: Summary of Operating Cost Estimates for MWS Operation (MWS Gold Plant)


Operating Costs (ZAR/t processed)	Actual (2021/2022)	Budget (2022/2023)
Maintenance	1.26	1.28
Plant Labour	2.24	2.44
Operational Consumables	0.12	0.38
Plant Contractors	4.26	4.40
Cost Allocations	51.31	49.99
Major Engineering Stores	0.81	0.42
Services	1.36	0.99
Engineering	4.36	4.48
Mine Overheads	3.40	2.79
Total	69.12	67.17


Effective Date: 30 June 2022 7


			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Table 1-7: Summary of Operating Cost Estimates for West Wits Operation


Operating Costs (ZAR/t processed)			West Wits and Savuka Plant
Maintenance			0.86
Plant Contractors			6.16
Cost Allocations			69.60
Major Engineering Stores			0.37
Engineering			3.02
Mine Overheads			5.26
Total			85.27

Table 1-8: Status of Environmental Permits and Licences

Operation

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

MWS

Atmospheric Emissions Licence: MWS Gold Plant

NWPG/CHEMWES/AEL 4.1; 4.2 & 4.17

DEDECT

30-Sep-20

29-Sep-25

Certificate of Registration Inflammable Liquids and Substances: Chemwes Plant

Various Certificates issued for All Areas of the plant and outside sections

City Council of Matlosana

31-Dec-21

Water Use Licence: Chemwes

08/C24B/AACIG/8368 27/2/2/C224/101/1

DWS

31/11/2018

31/11/2028

New WUL issued on 10 June 2022, however it is being reviewed as it excluded some permitted activities that were in the previous WUL. Currently operating under previous WUL.

Environmental Authorisation for expansion of Karee

NWP/EIA/176/2008

DMRE

2021/11/11

N/A

Licence to construct a dam with safety risk: Chemwes

12/2/C241/37

DWS

18-Jun-10

West Wits

Atmospheric Emissions Licence

WR/16-17/AEL9/3

Dr. Kenneth Kaunda District Municipality

02-Oct-18

02-Oct-23

Water Use Licence

08/C23E/AEFGJ/1250

DWS

30-Nov-18

Amended WUL submitted 2020. Waiting for approval.

Environmental Authorisation

(GP) 30/5/1/2/3/2/1(01) EM

DMRE

26-Sep-18

N/A

(GP) 30/5/1/2/2(01) MR

Waiting for transfer to Harmony to be completed.

Waste Management Licence

Gaut 002/09-10/W0011

GDARD

27-Jul-15

Expired

AGA submitted renewal application. Awaiting approval.

DMRE

Note: DEDET - Department of Economic Development, Environment, Conservation and Tourism, DWS - Department of Water and Sanitation, Department of Mineral Resources and Energy, GDARD - Gauteng Department of Agriculture and Rural Development, AGA - Anglogold Ashanti Limited


Effective Date: 30 June 2022 8


			Technical Report Summary for Mine Waste Solutions, North West, South Africa

2Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS on Mine Waste Solutions has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the U.S. SEC Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 - Technical Report Summary. The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand Target which forms part of Harmony’s activities.

This TRS has been prepared from the following sources of information:

•Competent Persons Report dated 30 June 2022 prepared by Mr BJ Selebogo;

•2022 and 2023 Harmony Corporate Business Plan; and

•published Mineral Resource and Mineral Reserve statement as at 30 June 2022.

This TRS was prepared by QPs employed on a full-time basis by the registrant. The QPs qualifications, areas of responsibility and personal inspection of the properties are presented in Table 2-1.

Table 2-1: QP Qualification, Section Responsibilities and Personal Inspections

Qualified Person

Professional Organisation

Qualification

TRS Section Responsibility

Personal Insp.

Mr BJ Selebogo

SAGC

MSCC, HND (MRM), CoC Mine Survey

11, 12, 13, 17, 20, 21, 22, 23

Full time

Ms MS Maipushi

SACNASP

BSc. (Hons) Geol

6, 7, 8, 9, 10, 11

Full time

Mr MR Masakona

ECSA, MMMA, SAIMM

BSc. Eng (Chemical)

13, 14, 15

Full time

Mr N van Noordwyk

AMIChemE AMSAIMM

B. Eng. Chem

10, 14, 15

Full time

Mr C Badashe

MMMA

Tailings Management

13, 15

Full time

Mr SS Selamolela

MMMA

NHD – Extraction Metallurgy

13, 14, 15

Full time

Mr D de Witt

SAICA

Hons BCom/MBA

18, 19

Full time

Ms C Labuschagne

N/A

B. Comm, MDP

18, 19

Full time

Ms. B Diseko

SAATCA

M Env Man

Full time

Ms N Strydom

N/A

LLB H:Dip Corporate Law

Full time

H Mashaba

N/A

BSc. (Hons) Env Man

Full time

This TRS is the first filing of such a document with the SEC and has an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature.


Effective Date: 30 June 2022 9


			Technical Report Summary for Mine Waste Solutions, North West, South Africa

3Property Description and Location

Section 229.601(b)(96) (3) (i-vii)

Mine Waste Solutions is comprised of two distinct, geographically separated, operations namely the MWS Operation located on the Free State - North West provincial boundary, and the West Wits Operation situated in the West Rand Region of the Gauteng Province (Figure 3-1). Each operation will be discussed separately due to their geographical locations.

3.1MWS Operation

3.1.1Description and Location

MWS is located in the Vaal River area, and straddles the Free State, North West provincial border of South Africa, close to the town of Klerksdorp. The MWS Gold Plant (26° 50’8.66”E; 26° 47’41.83”S) is situated close to the town of Stilfontein, while the TSFs and WRD for this operation are scattered over an area that stretches approximately 13.5km north to south and 14.0km east to west (Figure 3-1).

The MWS Operation reprocesses tailings from 15 TSFs which are fed to three separate streams within the MWS Gold Plant (Table 3-1). The location of the surface deposits are indicated on Figure 3-2.

Table 3-1: MWS Surface Deposits and Processing Route

Operation

Type

Surface Deposit ID

Processing Plant

Processing Stream

MWS

TSF

Abandon

MWS Gold Plant

Stream 1 & Stream 4 for West Sources

TSF

Ariston Gully

TSF

West Grass Dam

TSF

South East Extension

TSF

Sulphur Paydam

TSF

West Compartment 1

TSF

West Compartment 2

TSF

East Tailings

Stream 2

TSF

Buffels 5

TSF

Buffels 3

TSF

Mispah 1

TSF

Harties 1

Stream 3

TSF

Harties 2

TSF

MWS 4

TSF

MWS 5

TSF

West Compartment 3

In Mineral Resource - not currently being treated.

TSF

West Compartment 4

TSF

West Extension

TSF

Harties 5

TSF

Harties 6

TSF

Harties 7

TSF

Buffels 1

TSF

Buffels 2

TSF

Buffels 4

TSF

Kopanang Paydam

WRD

Moab

WRD

Buffels 9

WRD

Margaret

3.1.2Mineral Tenure

The MWS Operation’s licence to operate is covered by the Environmental Authorisation under the National Environmental Management Act No. 107 of 1998. In terms of the current legislation, the MPRDA, a mining right is not required to reclaim TSFs. The location of the various residue deposits is indicated in Figure 3-2.

Following the acquisition of MWS Operation, all relevant permits and licences were transferred to Harmony including the approved EMP, the financial provision for rehabilitation liabilities for the MWS Operation mining rights, as well as the historic surface rights permits for MWS Operation. All of these permits are still valid.


Effective Date: 30 June 2022 10


			Technical Report Summary for Mine Waste Solutions, North West, South Africa


Figure 3-1: Location of MWS and West Wits


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa


Figure 3-2: Mineral Tenure and Location of MWS Operation


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

3.1.3Property Permitting Requirements

MWS has all the permits required to operate and to realise the current life of mine (“LOM”) plan reflected in the Mineral Reserve estimate and has access to all the properties it requires to conduct its current mining activities (Table 3-2).

Table 3-2: MWS Property and Land Ownership

Surface Deposit ID

Farm Name & No.

Portion No.

Owner

Title Deed No.

MWS 4

Stilfontein 408 IP

Chemwes Pty Ltd

T18439/2005

Stilfontein 408 IP

Chemwes Pty Ltd

T18439/2005

MWS 5

Stilfontein 408 IP

Chemwes Pty Ltd

T18439/2005

Stilfontein 408 IP

Chemwes Pty Ltd

T18439/2005

Margaret WRD

Stilfontein 534 IP

Omv Pty Ltd

T35140/2021

Harties 1&2

Zandpan 423 IP

Driade cc

T2888/1992

Zandpan 423 IP

Republic of South Africa

T75460/2012

Mapaiskraal 441 IP

African Rainbow Minerals Ltd

T121387/2000

Harties 5&6

Zandpan 423 IP

Temotuo rehabilitation co

T25046/2001

Zandpan 423 IP

Republic of South Africa

T75460/2012

South East TSF

modderfontein 440 IP

Anglogold Ashanti Ltd

T6528/1966

Vaalkop 439 IP

Anglogold Ashanti Ltd

T1744/1946

Sulphur Paydam

Modderfontein 440 IP

Anglogold Ashanti Ltd

T6528/1966

East TSF

Modderfontein 440 IP

Anglogold Ashanti Ltd

T6528/1966

Buffels 1 - 4

Buffelsfontein 443 IP

Chemwes Pty Ltd

T76488/2013

Buffels 5

Mapaiskraal 441 IP

Anglogold Ashanti Ltd

T50547/1980

Mapaiskraal 441 IP

Rocha Maria Ines Da

T37394/1990

Buffels 9 WRD

Hartebeestfontein 422 IP

Buffelsfontein Gold Mines Ltd

T95911/1996

Hartebeestfontein 422 IP

Buffelsfontein Gold Mines Ltd

T95911/1996

Buffelsfontein 443 IP

Chemwes Pty Ltd

T76488/2013

Kareerand

Megadam 574 ip

Chemwes Pty Ltd

T80960/2010

West Extension

Nooitgedacht 434 IP

200

Anglogold Ashanti Ltd

T75834/2013

Witkop 438 IP

Anglogold Ashanti Ltd

T78274/1999

West complex

Nooitgedacht 434 IP

200

Anglogold Ashanti Ltd

T75834/2013

Witkop 438 IP

Anglogold Ashanti Ltd

T78274/1999

Anglogold Ashanti Ltd

T78274/1999

Anglogold Ashanti Ltd

T78274/1999

Harties 7 TSF

Klerksdorp 424 IP

City of Matlosana

G201/1906

Ellaton TSF

Strathmore 436 IP

City of Matlosana

T58081/1981

Moab WRD

Anglo 593

Harmony Moab Khotsong Operations Pty Ltd

T8152/2018

Hoekplaats 598

Harmony Moab Khotsong Operations Pty Ltd

T8152/2018

Mispah 274

Harmony Moab Khotsong Operations Pty Ltd

T8152/2018

Mispah TSF

Mispah 274

Harmony Moab Khotsong Operations Pty Ltd

T8152/2018

3.2West Wits Operation

3.2.1Description and Location

The West Wits Operation is situated in the West Rand Region of the Gauteng Province (Figure 3-1). The West Wits Operation is situated approximately 75km west of Johannesburg. The site is approximately 7km south of Carletonville. West Wits Operation occupies an area 4,176ha in extent and is close to the boundary between Gauteng and North West Province (Figure 3-1).

The West Wits Operation reprocesses tailings from the Old North TSF dumps and waste rock from the Savuka WRD at the Savuka Plant (26° 25’20.31”E and 27° 24’11.30”S) (Figure 3-3).


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa


Figure 3-3: Mineral Tenure and Location of West Wits Operation


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

The feed sources for West Wits are presented in Table 3-3.

Table 3-3: West Wits Surface Deposits and Processing Route


Operation	Type	Surface Deposit ID	Processing Plant
West Wits	TSF	Old North TSF L 19	Savuka Plant
	WRD	Mponeng Low Grade	In Mineral Resource - not currently being treated.
	TSF	Old North TSF L17, L20, L21, L22	In Mineral Resource - not currently being treated.

3.2.2Mineral Tenure

The following mining rights make up the full mining right area of approximately 6,673ha:

•GP30/5/1/2/2(01) MR valid from 14 February 2006 to 13 February 2036;

•GP30/5/1/2/2(248) MR valid from 16 October 2012 to 15 October 2022.

The mining rights 01MR and 248MR were ceded from AngloGold Ashanti Limited ("AngloGold" or “AGA”) to Golden Core Trade and Investment (Pty) Ltd ("Golden Core"), a wholly-owned subsidiary of Harmony on 30 September 2020 and were successfully registered in the Mining Titles Office on the 14 June 2021 as part of AngloGold’s sale of their last remaining South African assets to Harmony, including its West Wits Operations ("Transaction").

A section 102 Application in terms of the MPRDA was submitted previously by AngloGold in March 2017 to consolidate its West Wits mining rights into a single mining right (GP30/5/1/2/2(01) MR). The AngloGold Application was approved by the Department of Minerals and Energy ("DMRE") in August 2020, but was, however, not implemented due to a change in circumstances as a result of the transaction, and will consequently be withdrawn by AngloGold. On 15 February 2022, Golden Core submitted an application in terms of section 102 of the MPRDA, substantively similar to the AngloGold Application, to consolidate the mining rights and mining right areas into a single mining right (GP30/5/1/2/2(01) MR) ("Golden Core Application"). The Golden Core Application is currently pending at the DMRE.

The mineral rights are summarised in Table 3-4. The location of the residue deposits is presented in Figure 3-3.

Table 3-4: Summary of Mining Rights for West Wits

Operation

Licence Type

Reference No.

Effective Date

Expiry Date

Area (ha)

Mponeng Mine

Mining Right

GP30/5/1/2/2(01) MR

14-Feb-2006

13-Feb-2036

6,477.35

Magnum Farm

Mining Right

GP30/5/1/2/2(248) MR

16-Oct-2012

15-Oct-2022

195.83

Total

6,673.18

There is no material litigation (including violations or fines) against Golden Core which threatens its mineral rights, tenure, or operations.

3.2.3Property Permitting Requirements

West Wits has all the permits required to operate and to realise the current LOM plan reflected in the Mineral Reserve estimate and has access to all the properties it requires to conduct its current mining activities (Table 3-5).


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Following the acquisition of West Wits surface operations, all relevant permits and licences were transferred to Harmony including the approved EMP, the financial provision for rehabilitation liabilities for the West Wits Operation mining rights, as well as the historic surface rights permits for West Wits Operation. All of these permits are still valid.

Table 3-5: West Wits Property and Land Ownership

Surface Deposit ID

Farm Name & No.

Portion No.

Owner

Title Deed No.

Mponeng TSF

Elandsfontein 115 IQ

Anglogold Ashanti Ltd

T34878/2010

New North TSF 7B

Doornfontein 118 IQ

Anglogold Ashanti Ltd

T46676/1999

New North TSF 7A

Doornfontein 118 IQ

Anglogold Ashanti Ltd

T46676/1999

Blyvooruitzicht 116 IQ

Anglogold Ashanti Ltd

T34877/2010

New North TSF 5B

Blyvooruitzicht 116 IQ

Anglogold Ashanti Ltd

T46676/1999

Blyvooruitzicht 116 IQ

Anglogold Ashanti Ltd

T46676/1999

Blyvooruitzicht 116 IQ

Anglogold Ashanti Ltd

T34877/2010

Doornfontein 118 IQ

Anglogold Ashanti Ltd

T46676/1999

New North TSF 5A

Blyvooruitzicht 116 IQ

Anglogold Ashanti Ltd

T46676/1999

Blyvooruitzicht 116 IQ

Anglogold Ashanti Ltd

T34877/2010

Old North TSF

Blyvooruitzicht 116 IQ

Blyvooruitzicht Gold Mining Co Ltd

T14831/1986

Blyvooruitzicht 116 IQ

Blyvooruitzicht Gold Mining Co Ltd

T11479/1966

Blyvooruitzicht 116 IQ

Anglogold Ashanti Ltd

T34877/2010

Savuka WRD

Blyvooruitzicht 116 IQ

Anglogold Ashanti Ltd

T46676/1999

Mponeng WRD

Elandsfontein 115 IQ

Anglogold Ashanti Ltd

T58640/1999


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

4Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

Due to the operation’s geographical separation, each is discussed separately in the sections to follow.

4.1MWS Operation

4.1.1Accessibility

The MWS Operation is accessible from Johannesburg via the N12 national road and R502 regional road in Klerksdorp, North West. A large network of either tarred roads or well-maintained gravel roads exist between the tailing dams, waste rock dumps and the MWS Plant that are scattered in the area (Figure 3-1).

4.1.2Physiology and Climate

The area where the MWS Operation is situated is at an elevation ranging between 1,270m above mean sea level (“amsl”) and 1,340masl. A natural rocky ridge (Black Reef rocks) constitutes the northern boundary of the operational area, with man-made structures such as headgears and TSFs altering the topography of the landscape.

The region’s climate is characterised as sub-tropical dry savanna, with a mean annual evaporation at ~1,300mm which far exceeds mean annual rainfall of ~600mm.

Temperature patterns are characterised by seasonal and daily variations, where summers are hot and winters are mild to cold. The seasonal fluctuations in mean temperatures vary between 2°C and 22°C in the winter months (May – August) and vary between 13°C and 29°C in the summer months (September – April). The month of June is generally the coldest month with lowest recorded temperatures of an estimated 5°C while the maximum recorded temperature of 29°C generally occurs in February.

4.1.3Local Resources and Infrastructure

4.2West Wits Operation

4.2.1Accessibility

The West Wits Surface operations near Carletonville are accessible via the N12 national road and R500 regional road from Johannesburg.

4.2.2Physiology and Climate

The area where the West Wits Operation is situated is approximately at an elevation of 1,700m above sea level. A prominent rocky ridge known as the Gatsrand extends across the West Wits Operation from east to west forming a watershed. Other man-made structures such as headgears, TSFs and WRDs altering the topography of the landscape.

The West Wits Operation falls within the Highveld climatic zone, which is characterized by warm temperatures, dry winters and summer rainfall (with all conditions being erratic and extremely variable). The mean annual evaporation is recorded at ~596mm with the highest precipitation occurring in January (194.7mm) and the lowest occurring in July (2.3mm).

The summer months are warm and mostly clear, and winters are cold and dry. The month of July is generally the coldest month with lowest recorded temperatures of an estimated 2°C while the maximum recorded temperature of 27°C generally occurs in February. The seasonal fluctuations in mean temperatures between the warmest and the coldest months vary between 12°C and 15°C.

4.2.3Local Resources and Infrastructure


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

5History

Section 229.601(b)(96) (5) (i-ii)

5.1Historical Ownership and Development

5.1.1MWS Operation

The MWS Gold Plant commenced production in 1952 and was the original gold processing plant for the Stilfontein Gold Mine. Following the rise in the uranium price in the 1970s, the operation investigated uranium recovery from the Stilfontein Gold Mine’s gold tailings dams and commissioned the uranium plant in mid-1979. The plant operated until 1989, processing 29.4Mt of tailings and recovering 4.56t of U3O8. In 2003, the plant was converted into a gold tailings treatment operation and no further uranium was produced at that stage.

In 2007, First Uranium (Pty) Ltd (South Africa) ("First Uranium") acquired the MWS Operations with the purpose of treating the tailings dams for both gold and uranium. The second and third processing plants were commissioned between 2007 and 2012.

On 20 July 2012, the MWS Operations were acquired by AngloGold from First Uranium. The MWS uranium plant and flotation plants were commissioned in 2014 and were further reconfigured into a more efficient operation during 2016, as part of an optimisation drive. In 2017, the uranium and flotation plants were discontinued resulting in MWS Gold Plant again producing only gold.

On the 1 October 2020 Harmony acquired all of AngloGold’s surface operations, including the MWS Operations.

5.1.2West Wits Operation

The Savuka Plant was commissioned in 1961 and originally designed to treat ore from Savuka Mine and TauTona Mine. In 2015, upon closure of the afore-mentioned shafts, the plant was converted into a tailings and WRD treatment facility. The Savuka Plant treats tailings material from Savuka and Mponeng TSFs and waste rock from the WRDs from the same operations. On the 1 October 2020, Harmony acquired all of AngloGold’s South African business, including the surface assets which constitute the West Wits Operation.

5.2Historical Exploration

Prior to 2011, grade estimations for the TSFs were based on residue grades obtained from the process plants, as well as various sampling projects in selected areas. No information has been provided on the historical drilling.

Most of these TSFs have since been re-sampled by means of an extensive auger drilling exercise which commenced in 2011. The exploration carried out since 2011 has been used in the estimation of the Mineral Resources and, as such, is discussed in Section 11. The remaining TSFs will be re-sampled once they go out of service and become dormant.

The reader should note that drilling cannot be carried out on WRDs due to their composition of unconsolidated rock. Therefore, historical exploration is not available. These deposits are sampled by Harmony for the purposes of Mineral Resource estimation, as discussed in Section 11.

5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous Mineral Resource estimate for Mine Waste Solutions was declared as at June 2021 according to SAMREC Code, 2016. The previous Mineral Resource estimates are summarised in Table 5-1 and Table 5-2 for MWS and West Wits, respectively. The Mineral Resources are exclusive of Mineral Reserves and have been superseded by the current estimate prepared by Harmony in Section 11 of this TRS.


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Table 5-1: Summary of the Previous MWS Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)


METRIC			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (g/t)	U3O8 (kg/t)	Gold (kg)	U3O8 (t)
Measured	TSF	43.777	0.19	0.084	8345	3,667
	WRD	-	-	-	-	-
Sub Total / Ave Measured		43.777	0.19	0.084	8,345	3,667
Indicated	TSF	265.209	0.24	0.061	64,390	16,097
	WRD	6.689	0.36	-	2,429	-
Sub Total / Ave Indicated		271.898	0.25	0.061	66,820	16,097
Total / Ave. Measured + Indicated		315.675	0.24	0.064	75,165	19,763
Inferred	TSF	-	-	-	-	-
	WRD	2.918	0.28	-	817	-
Total / Ave Inferred		2.918	0.28	0.000	817	0

IMPERIAL			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (oz/t)	U3O8 (lb/t)	Gold (Moz)	U3O8 (Mlbs)
Measured	TSF	48.256	0.006	0.168	0.268	8.084
	WRD	-	-	-	-	-
Sub Total / Ave Measured		48.256	0.006	0.168	0.268	8.084
Indicated	TSF	292.343	0.007	0.121	2.070	35.487
	WRD	7.373	0.011	-	0.078	-
Sub Total / Ave Indicated		299.716	0.007	0.121	2.148	35.487
Total / Ave. Measured + Indicated		347.972	0.007	0.128	2.417	43.570
Inferred	TSF	-	-	-	-	-
	WRD	3.217	0.008	-	0.026	-
Total / Ave Inferred		3.217	0.008	0.000	0.026	0.000


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Table 5-2: Summary of the Previous West Wits Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)


METRIC			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (g/t)	U3O8 (kg/t)	Gold (kg)	U3O8 (t)
Measured	TSF	-	-	-	-	-
	WRD	-	-	-	-	-
Sub Total / Ave Measured		0.000	0.00	0.000	0	0
Indicated	TSF	7.350	0.45	-	3,289	-
	WRD	2.242	0.40	-	888	-
Sub Total Indicated		9.592	0.44	0.000	4,177	0
Total / Ave. Measured + Indicated		9.592	0.44	0.000	4,177	0
Inferred	TSF	-	-	-	-	-
	WRD	-	-	-	-	-
Total / Ave Inferred		0.000	0.00	0.000	0	0

IMPERIAL			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (oz/t)	U3O8 (lb/t)	Gold (Moz)	U3O8 (Mlbs)
Measured	TSF	-	-	-	-	-
	WRD	-	-	-	-	-
Sub Total / Ave Measured		0.000	0.000	0.000	0.000	0.000
Indicated	TSF	8.102	0.013	-	0.106	-
	WRD	2.471	0.012	-	0.029	-
Sub Total Indicated		10.573	0.013	0.000	0.135	0.000
Total / Ave. Measured + Indicated		10.573	0.013	0.000	0.135	0.000
Inferred	TSF	-	-	-	-	-
	WRD	-	-	-	-	-
Total / Ave Inferred		0.000	0.000	0.000	0.000	0.000


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

The previous Mineral Reserve estimate for Mine Waste Solutions as at 30 June 2021, was estimated in accordance with the SAMREC Code, 2016. Modifying Factors were applied to the Mineral Resource estimate to arrive at the Mineral Reserve estimate. The previous Mineral Reserve estimate is summarised in Table 5-3 and Table 5-4 for MWS and West Wits, respectively, and has been superseded by the current estimate prepared by Harmony as detailed in Section 12 of this TRS.

Table 5-3: Summary of the Previous MWS Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Source	Milled Tonnes (Mt)	Gold Grade (g/t Au)	Gold Content (kg)
Proven	TSF	49.990	0.24	12,137
	WRD	-	-	-
Sub Total / Ave Proven		49.990	0.24	12,137
Probable	TSF	355.158	0.28	97,905
	WRD	-	-	-
Sub Total / Ave Probable		355.158	0.28	97,905
Total / Ave (Proved + Probable)		405.148	0.27	110,042
IMPERIAL
Mineral Reserve Category	Source	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	TSF	55.105	0.007	0.390
	WRD	-	-	-
Sub Total / Ave Proven		55.105	0.007	0.390
Probable	TSF	391.495	0.008	3.148
	WRD	-	-	-
Sub Total / Ave Probable		391.495	0.008	3.148
Total / Ave (Proved + Probable)		446.600	0.008	3.538

Table 5-4: Summary of the Previous West Wits Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Source	Milled Tonnes (Mt)	Grade (g/t Au)	Content Au (kg)
Proven	TSF	-	-	-
	WRD	-	-	-
Sub Total / Ave Proven		0.000	0.00	0
Probable	TSF	38.170	0.32	12,371
	WRD	-	-	-
Sub Total / Ave Probable		38.170	0.32	12,371
Total / Ave (Proved + Probable)		38.170	0.32	12,371
IMPERIAL
Mineral Reserve Category	Source	Milled Tonnes (Mt)	Gold Grade (oz/t)	Content (Moz Au)
Proven	TSF	-	-	-
	WRD	-	-	-
Sub Total / Ave Proven		0.000	0.000	0
Probable	TSF	42.075	0.009	0.398
	WRD	-	-	-
Sub Total / Ave Probable		42.075	0.009	0.398
Total / Ave (Proved + Probable)		42.075	0.009	0.398

5.4 Past Production

Mine Waste Solutions’ surface operations, including the MWS Operation and the West Wits Operation, were previously owned by AngloGold (“AGA”) and have reprocessed TSF and WRD material for over 10 years ending in 2019. The last four years’ historical production from AngloGold and the previous two years’ production since Harmony took control are presented in Figure 5-1 and Figure 5-2.


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Figure 5-1: Graph of Past Production – Tonnes and Grade

Figure 5-2: Graph of Past Metal Production


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6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii)

The TSFs and WRD which are processed by Mine Waste Solutions are man-made deposits, which arise from the processing of reefs or the deposition of waste material. They therefore have a very different geological setting, mineralisation and deposit-type to other orebodies.

6.1Regional Geology

The CRG is up to 2,880m thick and covers an area of up to 9,750km2, with a basal extent of c.290km x 150km. It is sub-divided into the lower Johannesburg Subgroup and upper Turffontein Subgroup as shown in (Figure 6-2). These subgroups are separated by the Booysens Shale Formation. The CRG comprises coarse-grained fluvio-deltaic sedimentary rocks.

The major gold-bearing conglomerate reefs, including the three which are the main source of the material deposited on the TSFs and WRDs, are mostly confined to the CRG. The reefs are mined in seven major goldfields, including the East Rand, South Rand, Central Rand, West Rand, West Wits, Klerksdorp, Free State (Welkom), and Evander goldfields (Figure 6-1).

6.2Local Geology

The material contained in the TSFs and WRDs originates from deep level gold mines mined by Harmony and its predecessors and are located near the towns of Klerksdorp and Stilfontein (including the Moab Khotsong Mine, Stilfontein Gold Mine and Hartbeesfontein Gold Mine) and Carletonville (including Savuka Mine, Kusasalethu Mine and Mponeng Mine).

The mines near Carletonville have predominantly extracted tabular gold-bearing conglomeratic reefs, namely the CLR and VCR. The Klerksdorp operations have mainly exploited the VR.

The VCR horizon is located at the top of the Turffontein Subgroup of the CRG, capping the Witwatersrand Supergroup. The VR horizon is situated within the Krugersdorp Formation, in the Johannesburg Subgroup. The CLR is situated near the base of the Johannesburg Subgroup (Figure 6-2).

6.3Property Geology

6.3.1TSF

The TSF material is previously treated residue of gold-bearing conglomeratic reefs described above processing by CIL. They are man-made “deposits” and are not the result of natural sedimentary processes. The TSFs are typically deposited by a number of spigots, which are placed at intervals around the TSF, and these spigots are periodically raised as deposition takes place over time. The result is that the TSFs are comprised of horizontal or near-horizontal layers.


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Figure 6-1: Geological setting of the Witwatersrand Basin


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Figure 6-2: Stratigraphy of the CRG in the Witwatersrand Supergroup
Source: Modified after Tucker et al. (2016)


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The grade of the TSFs is determined by the grade of the ore source at the time that they were processed, and the processing efficiency. These parameters would both have varied over time, and hence the grade of the deposits can vary within a TSF, and between TSFs. The mining method applied for the deposits does not typically allow for partial or selective mining, and hence the grade estimation methodology tends to be focussed on achieving a robust estimate of the mean grade.

The reader should note that a stratigraphic column through the TSF (or WRD) would be meaningless as it is a man made, uniform structure. The stratigraphic column provided in Figure 6‑2 is related to the ore mined to produce the TSF (or WRD).

6.3.2WRDs

The WRD material is derived from the following underground workings:

•minor reef intersected while accessing the primary reef;

•gold-bearing reef within small fault blocks that were exposed by off-reef development; and

•cross-tramming of gold-bearing reef material to the waste tips.

The WRDs are man-made deposits, with very little structure or continuity, and one in which the grade does not behave as a natural mineral deposit. The WRDs are unconsolidated rock piles, in which the angle of the slope is determined by the angle of repose. The particle size is variable but can range from gravels to large boulders.

The WRDs are typically deposited by a conveyer belt system, which would have migrated over time, or they are deposited by trucks. The style of deposition can result in internal layering, but the grades are seldom sufficiently variable to model – and as with TSFs, the grade estimation methodology is focussed on achieving a robust estimate of the mean.

6.4Mineralisation

The most significant mineral in the TSFs and WRDs is quartz, which is above 60% of the bulk mineral composition. The gold predominantly occurs in pyrite. Other minerals identified are iron oxide, titanium oxide and calcite from the VR, VCR and CLR conglomerates.

The gold present in the TSFs is fine grained, less than 20µm on average, with the majority of the gold being locked up with poor surface exposure.

The main uranium mineral in the Witwatersrand Supergroup is uraninite. Uraninite grains are associated with gold and other heavy minerals such as pyrite, chromite, zircon, rutile. The grain size of the uraniferous minerals identified within the TSF are between 20 - 40µm.

6.5Deposit Type

The TSFs are tabular, man-made deposits of previously processed waste material from conglomeratic reefs.

The WRDs are tabular, man-made deposit of previously uncrushed and untreated, low-grade material.

6.6Commentary on Geological Setting, Mineralisation and Deposit

The QP is of the opinion that the source and characteristics of the material deposited on the TSFs and WRDs are well understood.


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7Exploration

Section 229.601(b)(96) (7) (i-vi)

Prior to 2011, grade estimations for the TSFs were based on residue grades obtained from the process plants, as well as various sampling projects in selected areas. Most of these TSFs have since been re-sampled by means of an extensive auger drilling exercise which commenced in 2011. The remaining TSFs will be re-sampled once they go out of service and become dormant.

WRDs cannot be explored using drilling because they are comprised of unconsolidated rock. No drilling is undertaken on the MWS and West Wits WRDs. The reader is referred to Section 8.2.1 for a summary of the sampling methods and approach.

7.1Mapping Surveys

No mapping is undertaken of TSFs nor WRDs because they are man-made residue deposits.

7.2Topographic Surveys

All of the TSFs and WRDs are surveyed on a monthly and annual basis to determine the volume of the contained material. The surveys are conducted using a Total Station and Rovers, to collect GPS data. These surveys are used both to inform the volume of the deposits for Mineral Resource estimation, and they are used to reconcile the monthly addition and depletion records, once mining takes place.

LiDAR surveys are not typically used to inform the Mineral Resource estimates and may be undertaken on an ad hoc basis to determine volume if required.

7.3TSF Surface Drilling Campaigns, Procedures and Results

The location of the surface drilling undertaken on the TSFs at both MWS’s and West Wits’ operations are presented in Figure 7-1 and Figure 7-2, respectively. A total of 1,471 drill holes have been drilled in these TSFs between 2011 and present.

7.3.1Drilling Methods

Drilling of the TSFs is undertaken using a portable hydraulic auger drilling machine, which uses a rotating spiral enclosed in a 50mm nominal core barrel. Drilling is conducted vertically from the top of the TSF to intersect between 1.0m and 1.5m into the underlying strata.

All drilling of the TSFs since 2011 has been undertaken by an independent contractor, SGS South Africa (Pty) Limited, who sub-contracted Dump and Dune (Pty) Limited to perform the physical drilling.

The drill hole spacing is determined based on the purpose of the drilling. The initial drilling is undertaken on newly acquired TSFs or TSFs with no historical data. This is classified as Mineral Resource estimation drilling and is used to determine the average grade of the deposit.

In addition, metallurgical test work is conducted to determine gold recovery parameters.

Table 7-1: TSF Drilling Grid Spacing


Drilling Purpose	Horizontal Direction (Xm, Ym)	Vertical Direction (Zm)
Exploration (Mineral Resource)	150 x 150	1.5
Grade Control	100 x 100 to 50 x 50	1.5
Geo-metallurgical Test work	200 x 200 or every second drillhole of Mineral Resource grid (150m)	6.0 (Composites)


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Figure 7-1: Location of TSF Drilling at MWS Operation


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Figure 7-2: Location of TSF Drilling at West Wits Operation


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The TSF auger drilling process is undertaken according to the internal best practice, as outlined in Harmony procedure document (STD2015-2378). This standard describes the full process including drilling, logging and sampling. The drilling methodology and orientation is dictated by the fine-grained nature of the deposit, and the near-horizontal layering.

7.3.2Collar and Downhole Surveys

Drill hole collars completed on the TSFs are planned by the geologist and then pegged on the TSFs by the internal surveyor using a Global Positioning System (“GPS”) with an accuracy of 0.03m. The LO27 Cape Datum system is used to record the coordinates.

No downhole surveys are carried out on any of the drill holes.

7.3.3 Logging Procedure

The samples are collected in a plastic chute as the spiral is removed from the core barrel, and immediately transferred into sample bags. The sample bags are sealed and labelled with unique sample numbers prior to dispatch at the designated laboratory for analysis.

7.3.4 Drilling Results

With over 28,977 samples having been taken since 2011, the results are too voluminous to be reported in this report. The results have, however, been included into the geological modelling and Mineral Resource estimation process.

7.3.5 Sample Recovery

While the TSF auger drilling process, with the spiral in the core barrel, is designed to maximise the sample recovery, obtaining good sample recoveries requires careful drilling and sample handling. Sample recovery recorded is recorded by measuring the total samples extracted, and a re-drill is required if the recovery is zero due to foreign material in the TSF, a hole adjacent to the original hole is drilled and taken in for analysis (the hole must be less than 2m away from original hole).

7.3.6 Sample Length and True Thickness

Samples are taken every 1.5m down the auger hole. The auger holes are drilled vertically into the TSF and therefore the drill length equals the true thickness.

7.4Hydrogeology

Hydrogeology is only applicable to TSFs and WRDs from an environmental perspective, as they are man-made deposits located above ground. The reader is therefore referred to Section 17.

7.5Geotechnical Data

No geotechnical investigations have been undertaken for the TSFs and WRDs.


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7.6Commentary on Exploration

In the QP’s opinion:

•the drilling and sampling methodology in use for Harmony’s TSFs has been developed specifically for the challenges posed by these deposits and is aligned with industry best practice. This protocol has been in place since 2011, and the drilling components are applied by contractors who are experienced in this specific methodology;

•the drill hole samples are deemed to be representative as they provide both vertical and horizontal coverage of each TSF;

•drill holes are positioned at regular intervals across the TSF;

•the data spacing, density and distribution is sufficient to support the estimation of Mineral Resources for the various TSFs; and

•WRDs are not explored using exploration methods due to their unconsolidated nature.


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8Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

This section summarises information relating to the sample preparation on site through to the laboratory preparation and analysis.

8.1TSFs

Sampling is carried out in accordance with the Harmony’s internal sampling procedure guidelines, which were first put in place by AngloGold in 2011.

8.1.1Sampling Method and Approach

Samples are collected at 1.5m increments, with each weighing approximately 3.0kg-4.5kg. As noted in Section 17, the samples are collected in a plastic chute as the spiral is removed from the core barrel, and immediately transferred into sample bags. No sub sampling occurs in the field.

The sample bags are sealed and labelled with unique sample numbers prior to dispatch at the designated laboratory for analysis. A sample list with the unique sample number is also generated for laboratory dispatch.

8.1.2Density Determination

There is no density testing for the TSFs, however, an industry-based density of 1.45t/m3 is currently used.

8.1.3Sample Security

At the end of each drilling shift, the samples are transported from the field to the storage facility by the responsible geologist. At the end of each drilling shift, the samples are delivered to the SGS lab for analysis. In times where the samples cannot be delivered to the lab, the samples are temporarily stored at the plant and delivered the following day at the lab.

The collection and transportation of the samples requires a gold-bearing material permit which is issued by the security department. The permit accompanies the samples in transit at all times. A signed waybill is also required for transporting samples. The samples are counted upon arrival at the designated laboratory to ensure that they correspond to the total number on the security waybill and log sheet.

8.1.4Sample Storage

60 days after analysis is complete. The samples are then delivered to the respective plant for permanent storage and future usage on other projects.

8.1.5Laboratories Used

During the period 2014 to 2019, samples were sent to the external SGS South Africa (Pty) Limited (“SGS”) laboratory in Allanridge for preparation and gold assay. Following the closure of the Allanridge laboratory, the SGS Vaal River, Orkney and Randfontein laboratories have been used for gold analysis and metallurgical test work. SGS is ISO/IEC 17025:2017 accredited for chemical analysis, with current certification expiring on 27 February 2025.

8.1.6Laboratory Sample Preparation

Upon receipt at the laboratory, the samples are first weighed to obtain the “as received” mass and then dried at 100 °C ±10 °C. The samples are weighed again after drying to obtain the dry mass and are subsequently agglomerated to a 1000µm sieve.

The dry and sieved samples are then sub-sampled by means of a 10-way rotary splitter. The 10 sub-samples (obtained from splitting) are transferred to individual sample bags together with barcoded laboratory sample tickets. One sub-sample is marked for gold assay and the second for uranium and sulphur analysis. The remaining sub-samples are used for metallurgical test work and Quality Assurance and Quality Control (“QAQC”).


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8.1.7Assaying Methods and Analytical Procedures

The method of sample analysis is Fire Assay with Flame Atomic Absorption Spectroscopy Finish (“FAAS”). The assaying and analysis procedures are summarised as follows:

•fluxing for fire assay:

•the required amount of flux (±330g) is measured and transferred into new crucibles which are lined with plastic bags. For low grade samples, SGS’s standard is 300g to 400g for 100g aliquot;

•each sample bag is emptied onto a brown paper sheet and flattened. Multiple scoops are collected with a thin bladed spatula until the required aliquot mass (100g) is obtained;

•the aliquot mass extracted is weighed in a weighing boat on a calibrated balance. The weights are captured in the Comlabs Computerised Laboratory Automation System (“CCLAS”);

•the required amount of silver nitrate is dispensed into the content of each charged crucible by means of a calibrated bottle dispenser; and

•the crucibles are then submitted to the furnace section.

•fusion and de-slagging:

•prepared samples are loaded into a pre-heated (1,100°C ±50°C) furnace for 55 minutes;

•the slag becomes thoroughly fluid and allows the lead to fall as a rain of fine droplets through the slag, collecting all the noble metals;

•the slag is allowed sufficient time to cool in the cast iron moulds;

•the anvil is cleaned with a continuous flow of air (preventing slag from being hammered into the lead buttons) during the de-slagging process; and

•the lead buttons are weighed at a dedicated mass balance. The mass of each lead button is checked against the rejection criteria, i.e., minimum mass of 60.36g and maximum mass of 93.80g;

•cupellation and digestion of prills:

•the cupels are cleaned and pre-heated before the lead buttons are transferred;

•prills are individually placed on the anvil and hammered; and

•the hammered prills are transferred into their respective (10ml) volumetric flasks and digested by a nitric acid (HNO3 70% m/m) and hydrochloric acid (HCl 33% m/m) solution (ratio of 1:3). Aqua regia dissolves the gold.

The method of sample analysis for uranium or other trace element is X-ray fluorescence spectrometry (“XRF”). The assaying and analysis procedures are summarised as follows:

•ensure all instruments used for sample analysis is verified daily before been used;

•pressed pellet preparation is required to achieve a homogenous pressed powder pellet my milling 20g ± 0.05g sample pulp with 3g ± 0.05g binder (Sasol Wax);

•the above mixture is milled in a milling pot with 5ml volume of Vertex XF or methanol added before the top of the pot lid is placed. Pre-set time of milling to 5 minutes. All equipment’s are cleaned in between sample preparation;

•an aluminium cup is used for pressing the milled sample. The cup is placed onto a hydraulic lift and pressed down button to lower the cup into the die enclosure. The die cap is gently placed on top. Mylar film is placed in between the sample and the die to avoid contamination from the die surface. This film is then removed immediately after pressing. Close the arm to lock the die and start pressing; and

•the pressed pallet is then taken in the XRF for reading of uranium or other trace elements.


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8.1.8 Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

TSF samples are submitted to the laboratory with QC material to verify accuracy and precision of the primary sample results. The QC material includes milled blanks, pulp duplicates and standards or certified reference materials (“CRM”). The CRMs are sourced from African Minerals Standards (“AMIS”) and cover the low-grade spectrum.

Each laboratory batch consists of 24 samples, of which four are the laboratory QC samples. The remaining 20 samples on the tray are a combination of the Harmony TSF primary samples and QC samples. The latter constitute more than 12% of the samples per assayed batch.

Assay results received from the laboratory for primary samples are considered acceptable if all the QC sample results have passed. If a blank or CRM fails, the samples above and below the failed QC samples are re-assayed. If the QC still fails, then the entire sample batch is re-assayed.

A summary of the quality control samples is provided in Table 8-1.

Table 8-1: Summary of Analytical Quality Control Data


Quality Control Material Type	No. of Samples Submitted	No. of Failed Samples	Action Taken
CRMs / standards	1,202	172	Queried with the laboratory for reanalysis of QC sample plus three above and below the failed QC
Milled blanks	1,173	61	Queried with the laboratory for reanalysis of QC sample plus three above and below the failed QC
Pulp duplicates (13-months rolling)	686	0	Used in calculation of laboratory repeatability

8.1.9 Standards

The control line used to assess the QC sample results are where previously on two times the standard deviation (“SD”) for CRMs. Following an external audit, Harmony Gold now uses three times the standard deviation for its internal CRMs.

The CRM results are used to identify any issues with specific sample batches, and biases associated with the laboratory to which primary samples are sent. Control charts are typically plotted of the CRM results. A total of 26 OXC145 observations were made from which six outliers were identified. Analytical bias including outliers is +4.41% and excluding outliers is -1.42%. On an AMIS0647, analytical is at 3.65% (including and excluding outliers).

8.1.9.1 Milled Blanks

The control line used to assess the QC sample results are two times the lowest detection limit for milled blanks.

The results of the milled blanks are used to identify any contamination of primary samples during the laboratory preparation process. Control charts are produced using the QC sample results in order to demonstrate performance of the laboratory’s sample preparation and analytical procedures. The lowest detection limit at the laboratory is 0.01ppm. The were no outliers identified for the October to December 2021 analyses.

8.1.9.2 Duplicates

Duplicate samples are submitted to monitor precision of the analytical methods. Ideally, the required precision is that 90% of the pulp duplicates should have a maximum precision of 10%. Scatter plots are routinely plotted by the responsible geologist and show good reproducibility of original assays, although some outliers can be observed.


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8.2 WRDs

8.2.1Sampling Method and Approach

Samples from the WRDs are collected from the face of the dumps and from the conveyor belts on their way to the processing plant. Belts sampling is primarily used for Mineral Resource estimates and grade control.

Face sampling is undertaken according to the internal best practice, using Harmony’s Standard for Broken Ore Plant Sampling, and an internal best practice guideline for rock dump sampling. These procedures have been in place since 2011 and were first put in place by AngloGold Ashanti.

Face sampling involves digging a pit on a predetermined grid on the dumps:

•sample bag mass ranges between 7 - 11 kg;

•2x bags (50 x 60cm) per sampling point;

•20m intervals between sampling points;

• the excavator loosens material and then shovels are used to put material into bags;

•each bag gets a sample tag with MPO and number.

After bagging, samples are dispatched to the laboratory for analysis.

For Savuka Mine, Mponeng Mine and Kusasalethu Mine metallurgical plants, belt sampling of the WRD material is undertaken by means of mechanical stop belt samplers on the feed belts at the metallurgical plants. A one-ton bin is used in the belt sample collection.

8.2.2Density Determination

There is no relative density testing for the WRD, however, an industry-based relative density of 1.67 is currently used to calculate tonnages from volumes.

8.2.3Sample Security

The samples are transported from the field to the storage facility by the responsible geologist. The samples are transported to Mponeng plant’s air lock where they are stored overnight before being transported to the lab.

Collection and transportation of the samples requires a gold-bearing material permit which is issued by the security department. The permit accompanies the samples in transit at all times. A signed waybill is also required for transporting samples. The samples are counted upon arrival at the designated laboratory to ensure that they correspond to the total number on the security waybill and log sheet.

8.2.4Sample Storage

After analysis, samples are stored for a period of 60 days by the laboratory.

8.2.5Laboratories Used

WRD samples are sent to the external SGS laboratory in Orkney for preparation and gold assay. SGS is ISO/IEC 17025:2017 accredited for chemical analysis, with current certification expiring in February 2025.

8.2.6Laboratory Sample Preparation Procedures


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8.2.7Assaying and Analytical Procedures

The method of sample analysis is lead Fusion FAAS (internally referred to as GC-FAA100V10 and GO-FAA50V10 schemes). The assaying and analytical procedure can be summarised as follows:

•fluxing and fusion:

•samples are well pulverised and homogenized;

•for GC-FAA100V10 analysis, a 100g sample is weighed and 300g to 400g of basic lead flux is required. For GO-FAA50V10, a 50g sample is weighed and 190g±10g of basic lead flux is required. Prior to weighing,

•approximately 1ml for 100g sample, and 0.5ml for 50g sample, of 20mg/ml silver solution or 31.5mg/ml of silver nitrate solution is added for fluxing;

•crucibles are loaded into the Fusion Furnace set at 1,100°C ±50°C and the samples are fused for a minimum of 1 hour or until the fusion is complete;

•de-slagging and cupellation:

•when the samples are ready for pouring, the crucibles are removed from the furnace and poured carefully into clean moulds and subsequently cooled;

•after cooling, the lead buttons are separated from the slag using a hammer. The lead buttons are then weighed, and each is required to be 20g to 45g; and

•after weighing, each lead button is cupelled for 1 hour at cupellation furnace temperature of 950°C ±20°C.

•prill digestion and FAAS Finish:

•prills/beads are transferred into 10ml volumetric flasks or test tubes;

•approximately 1ml of 50% nitric acid is then added and allowed to digest in a water bath at 70°C ±5°C for approximately 15 minutes;

•once each prill/bead has completely parted, 1ml of hydrochloric acid is dispensed on each test tube and placed back in the water bath for 30 minutes;

•the water bath is then removed and allowed to cool to room temperature; and

•approximately 8ml of distilled water is then added to the test tube and mixed well by inverting at least 20 time. Each sample is then allowed to settle prior to transfer for analysis.

8.2.8Sampling and Assay QC Procedures and QA

WRD samples are not submitted to the laboratory with Harmony internal QC material. The QP relies on the laboratory’s internal QAQC procedures to verify accuracy and precision of the primary sample results. The laboratory’s procedures include the insertion of CRMs or standards, blanks and duplicates or repeat analysis into the primary sequence.

8.2.8.1 Standards

The laboratory sources a range of CRMs from AMIS. If results of any of the CRMs fall outside three standard deviations of the expected value for that particular CRM, they are deemed to have failed. Portions of the batches that fail, the laboratory re-assay before reporting results.

The degree of bias is also monitored by comparing the calculated mean value to the target or expected value of the CRM. Consistent failure with respect to a standard and the bias to the low or high side of a standard, are cause for concern and acted on as soon as a trend is observed. All concerns are addressed with the laboratory directly. Results of the performance of laboratory CRMs analysed from July 2021 to June 2022 is summarised in Table 8-2. All CRMs were analysed using the GO-FAA100V10 scheme.


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Table 8-2: Summary of Laboratory Standard Results for WRDs


CRM Code	Target Value (mg/kg)	Mean (mg/kg)	Bias (%)	Expected SD	Laboratory SD	% Relative SD	Average Z-Score	Bias Level
AMIS0523	0.079	0.081	2.672	0.010	0.004	4.833	0.247	Good
AMIS0614	0.026	0.024	-6.641	0.006	0.004	15.063	-0.280	Good
AMIS0645	0.162	0.173	6.481	0.012	0.009	4.928	0.785	Acceptable
AMIS0647	0.170	0.172	1.348	0.014	0.013	7.382	0.228	Good
AMIS0610	0.068	0.075	10.000	0.007	0.006	7.754	0.663	Acceptable
AMIS0772	0.370	0.393	6.216	0.020	0.010	2.545	1.147	Not Acceptable
AMIS0728	0.667	0.681	2.099	0.030	0.029	4.258	0.459	Acceptable

Control charts are regularly plotted for each QC sample.

Results demonstrating the performance of AMIS0772 indicated a positive bias of 6.2% based on 15 observations. There were no outliers within the 2nd and 3rd standard deviation. The average Z-score (numerical measurement that describes a value's relationship to the mean of a group of values) was 1.147. The bias level was considered not acceptable since all the results plotted above the expected value of the standard. The 5 standards produced good to acceptable bias level.

8.2.8.2 Blanks

The control chart demonstrating performance of the blank samples from July 2021 to June 2022 was reviewed. The lowest detection limit at the laboratory is -0.01mg/kg. No outliers (results outside two and three SDs) was observed out of a total of 115 observations. This was deemed to be an acceptable result.

8.2.8.3 Duplicates

For the samples analysed from April to June 2021, a total of 66 repeat or duplicate sample observations were made from which a total of 34 (51.52%) positive differences were identified. For the regression of SD on concentration, the correlation coefficient (specific measure that quantifies the strength of the linear relationship between two variables in a correlation analysis) was found to be 0.94, which is considered strong.

8.3 Commentary on Sample Preparation, Analyses and Security

In the QPs opinion:

•samples are only collected from the surface of WRDs, at regular intervals, due to their unconsolidated nature. Although though samples are only representative of the surface, additional belt samples are taken during the mining process to reconfirm the original estimates. Therefore, the samples are sufficiently representative for use in Mineral Resource and Mineral Reserve estimation;

•the sample preparation, security and analytical procedures followed for gold grade determination are adequate;

•the use of an industry standard density for the TSFs is less than ideal, however the densities are continuously monitored during mining, whether any adjustments being made thereafter;

•the assay methods are suitable for both TSF and WRD material types and grade ranges; and

•the results of the QAQC assessment have been appropriately addressed to ensure that the assay results of the primary samples are adequate for Mineral Resource and Mineral Reserve estimation.


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9Data verification

Section 229.601(b)(96) (9) (i-iii)

9.1Databases

All primary data for the TSFs was transferred from log sheets onto an access-controlled electronic database (“AuBIS”), which has been subsequently migrated to Datamine™ Fusion. Any data that has not yet been incorporated into Datamine™ Fusion is stored on the Company server, in an access-restricted Mineral Resource Management folder.

All primary data for WRDs is captured in Microsoft Excel files which are stored in an access restricted folder on the Company server.

9.2Data Verification Procedures

All inputs to the drilling and sample database are first verified by the Senior Evaluator. Laboratory assay results are verified using internal QC material that are sent to the designated laboratory for analysis together with the primary samples analysed. Accepted assay data is captured on Datamine™ Fusion.

The database verification procedures conducted by the QP prior to Mineral Resource estimation included checking for the following:

•overlapping drill hole and sample intersections;

•missing drill hole and sample intervals;

•existence of any outlier assay values; and

•the drilling, sampling, survey and assay files are loaded onto Datamine and the spatial location of the drill holes are verified.

9.3Limitations to the Data Verification

Limitations encountered by the QP include the following:

•drill hole data for the Chemwes TSF block models is limited; and

•the drill hole statistics are based on statistics from the 2008 MWS Technical Report of 2008. Post 2012, after AngloGold Ashanti acquired the operations, a drilling campaign was implemented on the Chemwes TSF for updated block models except on MWS 4 (part of future drilling plan) and Buffels 2,3,4 (floor cleaning).

9.4Comment on Data Verification

The QP is of the opinion that the database is suitable for TSF Mineral Resource and Mineral Reserve estimation purposes. The database is auditable, and access is limited to authorised personnel. Any changes made can be tracked by the administrator.

Since WRDs are not drilled, but rather sampled by grab samples. These are used to give an indication od the expected delivered grade for blending purposes. The weighted averages are calculated in excel and are not used for metal accounting. The grades used for metal accounting are sampled on the belt inside the processing plant and these metal accounting files are accessed controlled


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10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

In June 2021, SGS South Africa (Pty) Limited (“SGS”) was requested by Mine Waste Solutions to undertake a metallurgical test programme on four gold bearing ore samples specifically for MWS Gold Plant Stream 1, Stream 2 and Stream 3. The objective of the study was to establish the gold-mineral association within the individual ore sources that are currently being reclaimed from TSFs and processed at MWS Gold Plant.

The metallurgical test work that was planned to be conducted for WRD and processed at Savuka Plant would follow a similar procedure. However, since the processing of WRD material will be concluding by late 2021 there is no longer a requirement to continue with the planned metallurgical test work.

10.1 Extent of Processing, Testing, and Analytical Procedures

A total of four samples were taken from MWS Gold Plant Stream 1, 2 and 3. The sample was sourced from auger samples and composited to 6m intervals, which is equivalent to the mining bench heights used.

The aim of the test work was to determine the gold-mineral association within the individual ore sources reporting to the processing streams at MWS Gold Plant by quantifying the amount of free gold, leachable gold, gold in carbonaceous material and gold reporting to gangue.

The first step in the preparation involved the blending and splitting of the samples into representative sub-samples for the test work. The test procedure was carried out on the “as received” samples.

The leach procedure involved the sequential solubilizing of the least-stable minerals via various pre-treatments, and extraction of the associated gold by cyanidation and CIL. The sequential solubilizing steps were as follows:

•to quantify the gold that could be extracted via direct cyanidation (i.e., free and exposed gold) a sample was cyanided;

•to quantify the gold that was preg-robbed, but recoverable via CIL processing, a second sample was cyanided in the presence of activated carbon. Preg-robbed is a scientific phenomenon whereby the gold cyanide complex is removed from solution by the constituents of the ore, the primary constituent being carbonaceous matter;

•to quantify the gold that could be extracted via a mild oxidative pre-leach, (i.e. gold associated with calcite, dolomite, pyrrhotite, haematite etc.) and the gold that was associated with other sulphide minerals (i.e. pyrite, arsenopyrite etc.), the CIL residue was first subjected to a severe oxidative pre-treatment using hot HNO3 (nitric acid) followed by CIL dissolution of the acid-treated residue;

•to quantify the gold associated with carbonaceous material such as kerogen, the subsequent residue sample was subjected to complete oxidation via roasting, followed by CIL dissolution of the calcined product; and

•the undissolved gold remaining in the final residue was assumed to be associated with gangue.

10.2 Degree of Representation of the Mineral Deposit

The degree of representation of the mineral deposit was excellent as surface exploration auger holes were used to provide the metallurgical samples. As discussed in Section 7.3, and indicated in Table 7-1, these augers are drilled on a regular grid pattern across the surface of the TSF and are drilled vertically to intersect the soil beneath the dump. Auger holes are sampled at regular 1.5m intervals.

10.3 Analytical Laboratory Details

Samples were submitted to independent laboratory, SGS (Randfontein, South Africa), for base leach tests to estimate gold recoveries. SGS is ISO/IEC 17025:2017 accredited for chemical analysis, with current certification expiring in February 2025.


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10.4 Test Results and Recovery Estimates

The test results for Stream 1 are presented in Table 10-1 according to each process. Stream 1 sample had an assayed gold grade of 0.260g/t. The results show that approximately 45.41% of the contained gold can recovered via CIL processing.

Table 10-1: Gold Association for the Stream 1 Sample


Gold Association	Gold
	g/t	%
Available to direct cyanidation	0.11	43.36
Preg-robbed -CIL	0.01	2.05
HNO3 digestible minerals	0.10	38.55
Carbonaceous matter	0.01	2.57
Quartz (balance)	0.04	13.46
Total	0.26	100.00
Available via CIL Recovery		45.41

The results of Stream 2, with an initial gold grade of 0.290g/t, is presented in (Table 10-2). The results show that 55.46% of contained gold is expected to be recoverable via CIL processing.

Table 10-2: Gold Association for the Stream 2 Sample


Gold Association	Gold
	g/t	%
Available to direct cyanidation	0.14	49.08
Preg-robbed -CIL	0.02	6.38
HNO3 digestible minerals	0.09	29.92
Carbonaceous matter	0.00	1.53
Quartz (balance)	0.04	13.08
Total	0.29	100.00
Available via CIL Recovery		55.46

The results of Stream 2, with an initial gold grade of 0.240g/t, is presented in Table 10-3. Stream 3 sample had a gold grade of 0.240g/t. The result indicates that 62.76% of contained gold is expected to be recoverable via CIL processing.

Table 10-3: Gold Association for the Stream 3 Sample


Gold Association	Gold
	g/t	%
Available to direct cyanidation	0.13	54.68
Preg-robbed -CIL	0.02	8.08
HNO3 digestible minerals	0.05	21.50
Carbonaceous matter	0.00	1.66
Quartz (balance)	0.03	14.08
Total	0.24	100.00
Available via CIL Recovery		62.76


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10.5 Commentary on Mineral Processing and Metallurgical Testing

The objective of the study was to establish the gold-mineral association within the individual ore sources that are currently being reclaimed from TSFs and processed at MWS Gold Plant and estimate the percentage of gold recoverable using CIL. The recovery predictions, as determined from this metallurgical test work have been used to inform the Financial Model and Plant Mass Balance.

In addition to the testwork described above, the reclaimed ore from current ore samples is sampled daily for the duration of the production month to make a composite sample for the base leach test work. Simulating the plant conditions at an ISO/IEC17025 accredited laboratory, the leachability of the material is established, and the data is used to formulate the performance targets.

On prospective deposits, samples are collected through drilling at regular intervals both vertically and horizontally. The samples collected are sent to an ISO/IEC17025 accredited laboratory for grade, mineralogical association determination and gold recovery test works. The acquired data is used to determine the financial viability of the deposit as an ore resource in-line with the existing plant infrastructure.


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11Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

Mineral Resources have been estimated for the TSFs and WRDs using the methods outlined in the section to follow.

11.1 TSFs - Mineral Resource Estimation Methods

Mineral Resource estimation is carried out for 25 TSFs located at MWS Operation and one located at West Wits.

There was no geological modelling of the TSFs, as they are man-made deposits situated above ground. Only three dimensional (“3D”) wireframing and block modelling was carried out using Datamine.

11.1.1Geological (Sampling) Database

The Mineral Resource estimate is based on the auger sampling results obtained up to June 2022. The following validated datasets were imported into Datamine:

•auger drill hole collar coordinates;

•sample logs; and

•gold and/or uranium assays.

The database contained a total of 28,719 samples.

11.1.2 Global Statistics

Descriptive statistics were used to analyse the gold grade distribution in all TSFs, as well as to identify outliers. Histograms and statistics of the raw data were calculated for each TSF. The Coefficient of Variation ("COV"), calculated by dividing the standard deviation with the mean, gives a measure of the variability of the data. A high COV (>1) represents highly variable or highly skewed data, which may require some form of capping of extreme values to lower the COV to a more reasonable value (c.1). A summary of the gold and uranium statistics is presented in Table 11-1 and Table 11-2, respectively.

Table 11-1: Summary of the Gold Assay Descriptive Statistics for the TSFs


Surface Deposit ID	No. Samples	Minimum (g/t Au)	Maximum (g/t Au)	Mean (g/t Au)	Variance	SD (g/t Au)	COV
Abandoned	771	0.03	0.90	0.41	0.01	0.10	0.24
Ariston gully	390	0.06	0.90	0.31	0.01	0.12	0.37
West Comp 1	774	0.02	2.91	0.28	0.02	0.12	0.43
West Comp 2	988	0.08	2.93	0.31	0.02	0.12	0.39
West Grass	399	0.08	0.56	0.28	0.01	0.09	0.31
West Ext	426	0.02	0.51	0.23	0.01	0.07	0.30
Buffels 1	1,547	0.02	0.72	0.18	0.00	0.06	0.35
Buffels 5	2,187	0.01	1.05	0.22	0.01	0.11	0.49
Buffels 2	490	0.12	0.86	0.35	0.01	0.11	0.30
Buffels 3	885	0.00	0.80	0.30	0.01	0.11	0.36
Buffels 4	842	0.02	1.60	0.32	0.01	0.12	0.37
Old North	1,974	0.00	0.99	0.31	0.02	0.12	0.39
East	2,496	0.02	0.71	0.26	0.01	0.08	0.32
Harties 2	1,909	0.02	0.79	0.22	0.01	0.09	0.39
Harties 1	1,299	0.09	0.93	0.29	0.01	0.10	0.34
Harties 5	187	0.08	2.38	0.23	0.04	0.21	0.88
Harties 6	209	0.08	0.84	0.20	0.01	0.11	0.53
MWS 4 domain 1	266	0.08	0.46	0.14	0.01	0.07	0.49
MWS 4 domain 2	426	0.08	0.60	0.28	0.01	0.09	0.32
MWS 5	1,556	0.06	1.46	0.27	0.01	0.10	0.37
SPD	4,053	0.01	3.03	0.35	0.03	0.16	0.45


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Surface Deposit ID	No. Samples	Minimum (g/t Au)	Maximum (g/t Au)	Mean (g/t Au)	Variance	SD (g/t Au)	COV
South East	2,411	0.07	0.98	0.28	0.01	0.09	0.34
KOP Paydam	754	0.01	1.08	0.21	0.01	0.11	0.53
Mispah 1	1,480	0.03	3.23	0.31	0.01	0.12	0.38
Total	28,719

Table 11-2: Summary of the Uranium Assay Descriptive Statistics for the TSFs


Surface Deposit ID	No. Samples	Minimum (kg/t U3O8)	Maximum (kg/t U3O8)	Mean (kg/t U3O8)	Variance	SD (kg/t U3O8)	COV
Abandoned	494	0.000	0.299	0.063	0.002	0.050	0.795
Ariston gully	200	0.011	0.185	0.073	0.001	0.035	0.486
Comp 2	988	0.009	0.591	0.068	0.002	0.043	0.635
W Grass	399	0.012	0.288	0.084	0.001	0.037	0.438
Comp 1	774	-	0.680	0.076	0.003	0.051	0.671
Buffels 1	1,459	-	0.180	0.031	0.001	0.025	0.796
Buffels 5	1,829	-	0.620	0.055	0.001	0.037	0.672
Buffels 2	490	0.015	0.269	0.092	0.002	0.040	0.442
Buffels 3	885	-	0.980	0.065	0.004	0.061	0.939
Buffels 4	842	0.010	0.270	0.100	0.002	0.045	0.447
East	1,837	-	0.980	0.107	0.003	0.050	0.470
Harties 1	391	0.023	0.176	0.057	0.000	0.014	0.251
Harties 5	186	0.010	0.129	0.060	0.001	0.027	-
Harties 6	209	0.010	0.151	0.062	0.001	0.027	-
MWS 5	1,554	0.011	210.000	30.731	2,626.141	51.246	1.668
MWS 4 domain 1	271	5.000	147.000	48.620	815.866	28.563	-
MWS 4 domain 2	434	9.000	234.000	128.457	1,364.026	36.933	-
South East	1,040	0.001	0.990	0.120	0.004	0.061	0.511
KOP Paydam	712	4.000	290.000	118.451	2,461.481	49.613	0.419
Mispah 1	777	9.000	1,230.000	132.900	4,333.998	65.833	0.495
Total	15,771

11.1.3 Compositing

The drill holes were not composited. The 1.5m sampling interval was used for the estimation process.

11.1.4 Capping

Extreme gold grade values were capped based on the extreme value theory. This was undertaken to reduce the influence of the extreme values or outliers on the mean of the data, which has the potential risk of overestimating the gold grades.

11.1.5 Variography

11.1.6 3D Model

A 3D DTM was constructed for each TSF from the survey data (Section 14). This topographical surface was used to constrain the volume. The QP also modelled the base of each TSF in order to create and close the 3D wireframe based on the drill hole intersections. The QP used the top of the soil intersection in each drill hole to define the base of the TSF wireframe.

The block size used for estimation is typically half that of the sampling grid.


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11.1.7 Grade Estimation

Gold grade was estimated into the block model using the ordinary kriging grade interpolation method, after the kriging estimation parameters had been optimised.

The distance at which the kriging can search through the data is dependent of the search volume used. In addition, the number of samples used constrains the kriging process. The other parameter optimised is the discretisation. These parameters are optimised by investigating the behaviour of the kriging variance, slope of regression and the number of negative weights (which should be low or zero). The optimum kriging parameters are chosen where the kriging variance is low and has stabilised and the slope of regression close to one and stable.

A search volume optimisation is conducted for each surface deposit by keeping the minimum, maximum and discretization constant and changing the search distances. The first search distance used is related directly to the variogram modelled second range.

The results for the discretisation optimisation are reviewed. The optimisation is conducted by keeping the search range, as well as the minimum and maximum samples constant, while changing the discretisation.

The results for number of samples optimisation are reviewed. The maximum number of samples optimisation is conducted by keeping the search volume and discretization constant and changing the maximum samples. This was done on all TSFs kriged prior 2021 with AngloGold Ashanti.

The other method of optimising kriging parameters is the use the second range of the variogram as the search volume and changing maximum number of samples. The different kriged models are then compared to the borehole data using swath plots, section through model and descriptive statistics.

Examples of the gold distribution into the block models is presented in for the South East, MWS 5, East 5 and Old North TSFs is shown in Figure 11-1.

11.1.8 Density Assignment

An industry standard bulk density of 1.45t/m3 is used to determine the tonnage from the volume estimates.

11.1.9 Block Model Validation

The processes of checking and validating the estimate is undertaken using histograms, swath plots and visual checking of the raw data in relation to the estimate. This is undertaken for each model produced.

Histograms of the previous model, the updated model and the previous and drill hole data were analysed. These showed a good alignment of between data and model, with the expected smoothing introduced by the ordinary kriging process.

Swath plots were produced in the west/east direction, south/north direction and for elevations for each block model. The results also show good alignment of between data and model, with the expected smoothing introduced by the ordinary kriging process.

Visual validation is also undertaken on each block model. The validation results typically show that the models are representative of the sampling data and no significant bias was identified.

A database tracking additions and depletions for each TSF is also updated monthly. The daily, monthly and annual results for reclamation and deposition are compiled and analysed to assess the grade of the Mineral Resource, together with block model tonnage and remaining gold content. The annual Mineral Resource grade is compared to the monthly depletions and additions for verification purposes.


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa


Figure 11-1: Distribution of Gold Grades into the Block Models for South East, MWS 5, East 5 and Old North TSFs


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

11.2WRDs - Mineral Resource Estimation Methods

There is no geological modelling of the WRDs as they are man-made deposits. Mineral Resource estimation is carried out on four WRDs, located at MWS Operations and West Wits Operations, as shown in Figure 11-2 and Figure 11-3.

11.2.1Geological (Sampling) Database

The Mineral Resource estimate is based on the face sampling and belt sampling results. The database includes samples taken between up to and including June 2022.

11.2.2Global Statistics

Histograms and descriptive statistics were used to determine the expected feed grade at the plant, as well as for planning purposes. However, the overall deposition trend is considered to determine the grade used in planning. The descriptive statistical analysis results for the Buffels 9, Moab Khotsong, Mponeng and Savuka WRDs are summarised in Table 11-3.

Table 11-3: Summary of the Gold Assay Descriptive Statistics for the Buffels 9, Margaret and Mponeng WRDs


Statistics	Buffels 9	Moab Khotsong	Mponeng	Savuka
Total samples	16	263	1706	212
Minimum (g/t Au)	0.034	0.000	0.000	0.000
Maximum (g/t Au)	1.020	1.326	26.437	4.603
Range (g/t Au)	0.986	1.326	26.437	4.603
Mean (g/t Au)	0.161	0.358	0.526	0.307
Variance	0.066	0.042	1.441	0.537
Standard deviation (g/t Au)	0.249	0.205	1.200	0.733
Skewness	3.176	1.476	12.080	4.063
Kurtosis	10.590	2.951	217.242	17.260
Geometric mean	0.093	0.313	0.242	0.104

11.2.3Compositing

No compositing is undertaken for WRDs as drilling is not available.

11.2.4Variography

There is no variography undertaken for WRDs due to the paucity of sampling data.

11.2.53D Model

There is no block modelling undertaken for WRDs due to the paucity of sampling data.

11.2.6Grade Estimation

Grade estimation is simply based upon grades obtained from the following:

•reclaimed tonnages from the different stockpiles;

•grades obtained from rocks deposited on the WRD facilities; and

•grades from various other sampling projects carried out on some of the WRDs.

11.2.7Density Assignment

A uniform bulk density of 1.67t/m3 is used for all WRDs to determine the tonnage.

11.2.8Block Model Validation


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11.3Mineral Resource Evaluation

11.4Mineral Resource Classification and Uncertainties

Mineral Resource classification is a function of the confidence of the entire process from drilling, sampling, geological understanding and geostatistical relationships. The Chemwes TSF parameters used for Mineral Resource classification are summarised in Table 11-4.

Table 11-4: Summary of Geostatistical Parameters Used for Mineral Resource Estimation


	Mineral Resource Category
Parameter	Measured	Indicated	Inferred
Sampling (QAQC)	High confidence, no problem areas.	High confidence, some problem areas with low risk.	Some aspects might be of medium to high risk.
Number of samples used to estimate a specific block	At least 4x drill holes within variogram range and minimum of 20x 1.5m composited samples.	At least 3x drill holes within variogram range and minimum of 12x 1.5m composited samples.	At least 3x drill holes within variogram range.
Kriged Variance	This is a relative parameter and is only an indication and used in conjunction with the other parameters.
Distance to sample (variogram range)	Within at least 67%.	Within range.	Further than range.
Lower confidence limit (blocks)	Less than 20% from mean (80% confidence).	20%-40% from mean, (80%-60% confidence).	More than 40% (less than 60% confidence)
Kriging efficiency	More than 40%.	20%-40%	Less than 20%.
Deviation from 90% confidence limit (distribution within Mineral Resource area considered for classification)	Less than 10% deviation from mean.	10%-20%	More than 20%

11.4.1TSFs

The Mineral Resource estimate for the TSFs is classified based on drill hole sampling results at a predetermined grid which are adequate for the accurate determination of grade continuity. TSF’s are classified either as Indicated Mineral Resources (100m x 100m or 150m x 150m drill hole spacing) or Measured Mineral Resources (50m x 50m drillhole spacing).

11.4.2WRDs

The Mineral Resource grade estimates for the WRDs are based on face sampling and / or conveyor belt sampling. Neither of these methods are adequate to confirm grade continuity which is required for the classification into a Measured Mineral Resource.

The MWS WRDs are only sampled using conveyor belt sampling and are therefore classified as Inferred Mineral Resources.

The West Wits Operation WRDs were sampled using face sampling and are therefore classified as Indicated Mineral Resources.


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11.5 Mineral Resource Estimate

The Mineral Resources for both MWS and West Wits were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

The location of the Mineral Resources for MWS and West Wits are presented in Figure 11-2 and Figure 11-3, respectively.

The classification of the various TFS and WRDs into Mineral Resources or Mineral Reserves is summarised in Table 11-5 and Table 11-6, for the two operations, respectively.

The Mineral Resource estimate, as at 30 June 2022, exclusive of the reported Mineral Reserves, for MWS and West Wits are presented in Table 11-7 and Table 11-8, respectively. These estimates account for depletion recorded from July 2021 to June 2022.

The QP compiling the Mineral Resource estimates for both operations is Mr BJ Selebogo, Ore Reserve Manager and employee of Harmony.

Factors that may affect the Mineral Resource estimates include the following:

•gold price assumptions;

•exchange rate assumptions;

•operating and capital cost assumptions;

•gold recovery assumptions; and

•reclamation risks.


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Figure 11-2: Location and Classification of MWS Operation Mineral Resources


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Figure 11-3: Location and Classification of West Wits Operation Mineral Resources


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Table 11-5: Classification of MWS Mineral Resources and Mineral Reserves by Surface Deposit ID

Mineral Resource Category

Mineral Reserve Category

Source

Surface Deposit ID

Measured

Indicated

Inferred

Proved

Probable

Processing Plant

Processing Stream

TSF

Abandon

MWS Gold Plant

Stream 1 & Stream 4 for West Sources

Ariston Gully

West Grass Dam

South East Extension

Sulphur Paydam

West Compartment 1

West Compartment 2

East Tailings

Stream 2

Buffels 5

Buffels 3

Mispah 1

Harties 1

Stream 3

Harties 2

MWS 4

MWS 5

West Compartment 3

In Mineral Resource - not currently being treated.

West Compartment 4

West Extension

Harties 5

Harties 6

Harties 7

Buffels 1

Buffels 2

Buffels 4

Kopanang Paydam

WRD

Moab

Buffels 9

Margaret


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Table 11-6: Classification of West Wits Mineral Resources and Mineral Reserves by Surface Deposit ID

Mineral Resource Category

Mineral Reserve Category

Source

Surface Deposit ID

Measured

Indicated

Inferred

Proved

Probable

TSF

Old North TSF L 19

WRD

Mponeng Low Grade

TSF

Old North TSF L17, L20, L21, L22


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Table 11-7: Summary of the MWS Operation Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9


METRIC			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (g/t)	U3O8 (kg/t)	Gold (kg)	U3O8 (t)
Measured	TSF	54.123	0.20	0.067	11,012	3,635
	WRD	-	-	-	-	-
Sub Total / Ave Measured		54.123	0.20	0.067	11,012	3,635
Indicated	TSF	113.045	0.19	0.075	21,415	8,489
	WRD	2.461	0.30	-	741	-
Sub Total / Ave Indicated		115.506	0.19	0.075	22,156	8,489
Total / Ave. Measured + Indicated		169.629	0.20	0.073	33,168	12,124
Inferred	TSF	-	-	-	-	-
	WRD	2.520	0.28	-	700	-
Total / Ave Inferred		2.520	0.28	0.000	700	0

IMPERIAL			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (oz/t)	U3O8 (lb/t)	Gold (Moz)	U3O8 (Mlbs)
Measured	TSF	59.660	0.006	0.134	0.354	8.013
	WRD	-	-	-	-	-
Sub Total / Ave Measured		59.660	0.006	0.134	0.354	8.013
Indicated	TSF	124.611	0.006	0.150	0.688	18.714
	WRD	2.713	0.009	-	0.024	-
Sub Total / Ave Indicated		127.324	0.006	0.150	0.712	18.714
Total / Ave. Measured + Indicated		186.984	0.006	0.143	1.066	26.728
Inferred	TSF	-	-	-	-	-
	WRD	2.778	0.008	-	0.022	-
Total / Ave Inferred		2.778	0.008	0.000	0.022	0.000
Notes:
1. The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is Ore Reserve Manager, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No cut-off grade has been applied for the estimation of Mineral Resources. Mineral Resource tonnes are reported based on a gold price of USD1,723/oz.
4. Tonnes are reported as million tonnes rounded to three decimal places. Gold values are rounded to zero decimal places.
5. Uranium content is reported as part of the MWS Mineral Resource estimate only.
6. Metal content does not include allowances for processing losses.
7. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
8. Rounding as required by reporting guidelines may result in apparent summation differences .
9. The Mineral Resource estimate is for Harmony’s 100% interest.


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Table 11-8: Summary of the West Wits Operation Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves)1-9


METRIC			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (g/t)	U3O8 (kg/t)	Gold (kg)	U3O8 (t)
Measured	TSF	-	-	-	-	-
	WRD	-	-	-	-	-
Sub Total / Ave Measured		0.000	0.00	0.000	0	0
Indicated	TSF	22.899	0.36	-	8,260	-
	WRD	1.102	0.47	-	513	-
Sub Total Indicated		24.001	0.37	0.000	8,773	0
Total / Ave. Measured + Indicated		24.001	0.37	0.000	8,773	0
Inferred	TSF	-	-	-	-	-
	WRD	-	-	-	-	-
Total / Ave Inferred		0.000	0.00	0.000	0	0

IMPERIAL			Grade		Metal Content
Mineral Resource Category	Source	Tonnes (Mt)	Gold (oz/t)	U3O8 (lb/t)	Gold (Moz)	U3O8 (Mlbs)
Measured	TSF	-	-	-	-	-
	WRD	-	-	-	-	-
Sub Total / Ave Measured		0.000	0.000	0.000	0.000	0.000
Indicated	TSF	25.242	0.011	-	0.266	-
	WRD	1.214	0.014	-	0.016	-
Sub Total Indicated		26.457	0.011	0.000	0.282	0.000
Total / Ave. Measured + Indicated		26.457	0.011	0.000	0.282	0.000
Inferred	TSF	-	-	-	-	-
	WRD	-	-	-	-	-
Total / Ave Inferred		0.000	0.000	0.000	0.000	0.000


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11.6Mineral Resource Reconciliation

The MWS Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, decreased from 316Mt at a grade of 0.24g/t (2.417Moz gold) in June 2021 to 169Mt at a grade of 0.20g/t (1.066Moz gold) in June 2022. The key difference can be attributed to the inclusion of Mispah 1 into Mineral Reserves (-0.719Moz). Evaluation changes on MWS 5 (-0.050Moz) also aided the decrease from this source. These were offset by Buffels 1, 2 & 4 (0.098Moz) included in Exclusive Resource which was included in Mineral Reserves the previous year.

The MWS Inferred Mineral Resources decreased from 2.9Mt at a grade of 0.28g/t (0.026Moz gold) June 2021 to 2.5Mt at a grade of 0.28g/t (0.022Moz gold) due to the processing of Buffels 9 and Margaret Waste Rock dump material being treated through Kopanang and Mispah Gold Plants

The West Wits Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, increased from 9.592Mt at a grade of 0.44g/t (0.135Moz gold) in June 2021 to 24.00Mt at a grade of 0.37g/t (0.282Moz gold) in June 2022 due to Old North L 19 not being depleted as in previous year due to the constraint in allowable height in the deposition on Savuka TSF.

11.7Commentary on Mineral Resource Estimate

In the QP's opinion:

•there are no obvious reclamation, metallurgical, environmental, social, infrastructural, legal and economic factors that could have a significant effect on the TSFs and WRDs;

•the data spacing and distribution is sufficient to establish the grade continuity appropriate for the TSF Mineral Resource estimation procedure and classifications applied; and

•the grade estimation exercises are inadequate to determine grade continuity on WRDs. However, the low confidence in grade continuity has been considered in Mineral Resource classification.


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12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

The Mineral Reserves are derived through a business planning process and consideration by the Chief CODM. The business planning process comprises multi-functional reviews inclusive of all mining, engineering and service departments that are involved in the verification of the inputs and the Modifying Factors.

12.1MWS Operation Mineral Reserve Estimate

12.1.1Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

The material contained in the TSFs originates from ore-bearing reefs previously mined and treated by Harmony at the MWS Operation, Buffelsfontein, Hartebeestfontein and Stilfontein gold mines. All reported Mineral Reserves are located on surface and are connected to the source mines by either shafts, road, rail or pipelines. The Mineral Reserves are estimated considering the follow:

•grade estimates, based on historical data and exploratory drilling;

•slope stability design parameters, guided by geotechnical design and modelling;

•mining methodology, informed by the geological estimates;

•spatial reconciliation of historical material deposition on the TSF, as well as the grade control drilling;

•gold price estimates;

•gold recovery estimates; and

•cut-off grade assumptions.

Only Measured and Indicated Mineral Resources are used to inform the Mineral Reserves.

Mineral Reserves are planned for the TSFs using Deswik CAD software and scheduling is completed in the Deswik SCHED Scheduler software.

12.1.2Modifying Factors

The Modifying Factors used to convert the Mineral Resource to a Mineral Reserve for the MWS Operation are presented in Table 12-1. The Modifying Factors used are based on Harmony’s knowledge of the TSF, planning and computing estimates used in determining the Mineral Reserves, and historical data.

Table 12-1: MWS Operation Mineral Reserves Modifying Factors (30 June 2022)


Modifying Factor	Unit	Value
Gold Accounted For (“GAF”) - Grade Cut-off	g/t	0.23
Recovery Factor	%	45.64
Plant Call Factor	%	100.00
Dilution	%	N/A
Conversion factor	oz/kg	32.15


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The Mineral Reserves are declared as delivered to the mineral processing plant, except for the recovered gold content (kg). This gold content is calculated after factoring in the plant recovery factor, as shown in the Modifying Factors (Table 12-1). This is the gold content which informs the MWS Operation cashflows.

12.1.3Mineral Reserve Estimate

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and the operation’s planning processes. The Mineral Resource conversion to Mineral Reserves considers Modifying Factors, dilution, ore losses, minimum mining widths, planned mine call and plant recovery factors.

The Mineral Reserves are declared as delivered to the plant for all TSFs, except for the recovered gold content. This gold content is calculated after factoring in the plant recovery as a modifying factor. The Mineral Reserve estimates for MWS are summarised in Table 12-2.

The location and classification of the MWS Mineral Reserves is presented in Figure 11-2 and Table 11-5, respectively.

The QP compiling the Mineral Reserve estimates is Mr BJ Selebogo, Ore Reserve Manager and employee of Harmony.

Table 12-2: Summary of the MWS Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Source	Milled Tonnes (Mt)	Gold Grade (g/t Au)	Gold Content (kg)
Proven	TSF	21.083	0.26	5,553
	WRD	-	-	-
Sub Total / Ave Proven		21.083	0.26	5,553
Probable	TSF	419.192	0.27	113,173
	WRD	-	-	-
Sub Total / Ave Probable		419.192	0.27	113,173
Total / Ave (Proved + Probable)		440.275	0.27	118,726
IMPERIAL
Mineral Reserve Category	Source	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	TSF	23.240	0.008	0.179
	WRD	-	-	-
Sub Total / Ave Proven		23.240	0.008	0.179
Probable	TSF	462.080	0.008	3.639
	WRD	-	-	-
Sub Total / Ave Probable		462.080	0.008	3.639
Total / Ave (Proved + Probable)		485.320	0.008	3.817
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is the Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and content are declared as net delivered to the mills.
3. Gold content is recovered gold after taking into consideration the modifying factors.
4. Mineral Reserves are reported using a cut-off grade of 0.23g/t and a gold price of USD1,546/oz.
5. Recovered gold (kg) is based on a conversion factor of 32.1507oz/kg.


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12.2West Wits Operation Mineral Reserve Estimate

12.2.2Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

The material contained in the TSFs originates from the mining and processing of multiple ore-bearing reefs of the West Wits Operation. The tailings and WRD are residue or low grade WRDs of the VCR and CLR reefs.

Mineral Reserves are planned for the TSFs using Deswik CAD software and scheduling is completed in the Deswik SCHED Scheduler software.

12.2.2Modifying Factors

The Modifying Factors used to convert the Mineral Resource to the Mineral Reserve for the West Wits Operation is shown in Table 12-3. The Modifying Factors are consistent with the modelling based on knowledge of the TSF, planning and computing estimates used in determining the Mineral Reserves, and historical data.

Table 12-3: West Wits Operation Mineral Reserves Modifying Factors (30 June 2022)


Modifying Factor	Unit	Value
GAF - Grade Cut-off	g/t	0.28
Recovery Factor	%	41.00
Mine Call Factor	%	100.00
Dilution	%	N/A

12.2.3Mineral Reserve Estimate

The Mineral Reserve estimates for West Wits are summarised in Table 12-4

The location and classification of the West Wits Mineral Reserves is presented in Figure 11-3 and Table 11-6, respectively.

The QP compiling the Mineral Reserve estimates is Mr BJ Selebogo, Ore Reserve Manager and employee of Harmony.


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Table 12-4: Summary of the West Wits Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Source	Milled Tonnes (Mt)	Grade (g/t Au)	Content Au (kg)
Proven	TSF	-	-	-
	WRD	-	-	-
Sub Total / Ave Proven		0.000	0.00	0
Probable	TSF	19.325	0.33	6,288
	WRD	-	-	-
Sub Total / Ave Probable		19.325	0.33	6,288
Total / Ave (Proved + Probable)		19.325	0.33	6,288
IMPERIAL
Mineral Reserve Category	Source	Milled Tonnes (Mt)	Gold Grade (oz/t)	Content (Moz Au)
Proven	TSF	-	-	-
	WRD	-	-	-
Sub Total / Ave Proven		0.000	0.000	0
Probable	TSF	21.302	0.009	0.202
	WRD	-	-	-
Sub Total / Ave Probable		21.302	0.009	0.202
Total / Ave (Proved + Probable)		21.302	0.009	0.202
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr BJ Selebogo, who is the Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content are declared as net delivered to the mills.
3. Gold content is recovered gold after taking into consideration the modifying factors.
4. Mineral Reserves are reported using a cut-off grade of 0.28g/t and a gold price of USD1,546/oz.
5. Recovered gold (kg) is based on a conversion factor of 32.1507oz/kg.

12.3 Mineral Reserve Reconciliation

The Mineral Reserve estimate for MWS increased from 405Mt at a grade of 0.27g/t (3.54Moz gold) in 30 June 2021 to 440Mt at a grade of 0.27g/t (3.82Moz gold) as at 30 June 2022. The key difference can be attributed to the inclusion of Mispah 1 (0,728Moz) TSF. Sources that were processed during the year included, Sulphur Paydam, South East Extension, East TSF as well as Harties 1 and 2. Exclusions from previous year included Buffels 1, 2 & 4 less (-0.098Moz). Evaluation changes on MWS 5 (-0.050Moz) also added to a decrease in the Mineral Reserve from this source.

The Mineral Reserve estimate for West Wits decreased from 38.2Mt at a grade of 0.32g/t (0.398Moz gold) in 30 June 2021 to 19.3Mt at a grade of 0.33g/t (0.202Moz gold) as at 30 June 2022. The key difference can be attributed to reduced years in LOM from 2032 to 2028 on the back of deposition constraints on Savuka TSF due the maximum height constraint of the TSF, as well as the depletions of Old North L19.

12.4 Commentary on Mineral Reserve Estimate


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13Mining Method

Section 229.601(b)(96) (13) (i-v)

The mining methodologies adopted at Mine Waste Solutions entail the hydro-mining of the TSFs and reclamation of WRDs using front-end loaders (“FELs”).

13.1Mine Design

The mine designs used for TSFs and WRDs are significantly different and, as such, are discussed separately in the sections to follow. The principals of mine design for the two types of surface deposit are used irrespective of their location, i.e., MWS or West Wits.

13.1.1TSFs

The mine design strategy aims at maximising the safe extraction of the TSFs, while minimising the risk of geotechnical failures, which can result in operational disruptions and dangerous working conditions. The hydro-mining method of extraction has proven to be safer and cheaper than loading and hauling methods, using truck and shovel operations.

The TSFs 3D geological model, with the interpolated grade, is used as the basis for determining a mining model. Bench heights are constrained by safety measures and the pressure induced at the mining face by the monitoring guns. Key design and modelling parameters for the hydro-mining methods adopted for the TSFs reclamation are shown in Table 13-1.

Table 13-1: Key Hydro-Mining Design Parameters for TSFs


Parameter	Unit	Value
Water Pressure - Design Capacity	Bar	<40
Face Length	m	25
Relative Density – Slurry	kg/l	1.45 - 1.50
TSF Bulk Density	t/m3	1.45
Water - Slime Ratio	:	1:1

The proposed TSF reclamation plan further reviews safety measures by incorporating data from the Tailings Production Manager to ensure that the designs are procedurally correct, based on the Standard Operating Procedure. Planning also takes equipment maintenance and replacement into consideration. Once the designs and scheduling are complete, the results are evaluated using the latest official Mineral Resource and Mineral Reserve models available for the planned TSFs, in consultation with the Senior Evaluator who is responsible for these models.

13.1.2WRDs

The mine design strategy aims at maximising the safe extraction of the WRDs, while minimising the risk of geotechnical failures, which can result in operational disruptions and dangerous working conditions. Mining of these low grade WRDs requires continuous analysis to consider the constantly changing macro-economic climate.

Table 13-2: Key WRD Mining Design Parameters


Parameter	Unit	Value
Angle of Repose - Dozed Material	°	15
Advance - Dozing and Loading Operations	m	30
Loading Faces Vertical Height	m	<3
Loading Faces Batter Angle	°	<40


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13.2Mining Operations

13.2.1TSFs

The TSF material is reclaimed using several hydraulic monitoring guns which deliver high-pressure water to the face (Figure 13-1). High pressure water is transferred to the monitoring guns observing the maximum design capacity of the equipment is limited to 40 bars (“b”). Typically, a 25m mining face length is achieved with a water pressure in the range of 27b - 30b.

The tailings material can be selectively mined based on the positioning of the monitoring guns. The TSF face is broken by the water pressure, resulting in the slurry gravitating towards the collection sumps that deliver the slurry to the pumping stations, which is then pumped via overland pipelines to the respective plant streams. The TSFs are fed into one of the three respective plant streams, which comprise the MWS Gold Plant. The tailings material size is appropriate for high-pressure water to re-pulp the consolidated slimes to a slurry at a minimum relative density of around 1.45. No milling is required, as the material as previously been milled through the CIL plant treatment process.

13.2.2WRDs

Waste rock arises from underground development and is conveyed to large dumps where it is stockpiled. The grade values are inconsistently distributed amongst these rock deposits. Waste rock from off-reef development can also become contaminated during transport to surface by mineralised rock from unpay and marginal areas.

Tracked bulldozers are used on the top of WRDs during daylight hours, demarcated by surveyed markers (Figure 13-2), in accordance with safety standards. Vertical dozing operations are prohibited. During dozing operations, the geotechnical considerations and the materials’ natural angle of repose is adhered to, so as to maintain the WRD slope stability during loading operations.

Bulldozers are also used at the bottom of the WRDs to create a safe loading distance between the base of the WRD and the loading face. Loading measures take careful consideration of the existing dump design and ensures that extraction of the material is done safely. Front end loaders are used to load the dozed material into rail hoppers or trucks, which is transported to milling and mineral processing.

13.3Geotechnical and Hydrological Considerations

13.3.1TSFs

The geotechnical and hydrological considerations informing the mining of TSFs are described in Section 13.1.1, and are not discussed further here.

13.3.2WRDs

The geotechnical and hydrological considerations informing the mining of WRDs are described in Section 13.1.1, and are not discussed further here.

13.4Dilution and Grade Control

13.4.1TSFs

The reclamation method used for the TSFs precludes the use of grade control or selective mining, and typically, it is necessary to reclaim the entire TSF. For the same reason, dilution is not applied to the Mineral Reserve estimates.

13.4.2WRDs

The practical complexities of sampling the unconsolidated rock pile make the use of grade control or selective mining of WRDs difficult. Grade control is undertaken by means of the monitoring of conveyor belt samples, as described in Section 8.2.1.


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Figure 13-1: Photograph of TSF Reclamation

Figure 13-2: Photograph of WRD Mining


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13.5 LOM Schedule

The LOM schedule feed rates cater for provisions including availability and utilisation factors, as well as weather conditions which may affect the rate of reclamation. The gold content produced informs the economic analysis shown in the cashflow.

13.5.1MWS Operation

The material reclaimed from the MWS Operation TSFs currently feed three streams within the MWS Gold Plant, which is capable of processing 78,000tpd. The FY2023 production plan for MWS is presented in Figure 13-3, respectively. The available capacity of the MWS Gold Plant guides the forecasted reclamation rate. The daily plant capacity also provides guidance for the annual rate of reclamation, which is the equivalent of 28,080ktpa, assuming a 30-day operating month. This annual capacity gives rise to the MWS Operation LOM plan which is presented in Figure 13-5 and Figure 13-6.

13.5.2West Wits Operation

The material reclaimed from the West Wits Operation TSFs and WRDs currently feed into the Savuka Plant, which is capable of processing 10,000tpd, shown in the FY2023 monthly West Wits Operation mine plan (Figure 13-4). The extraction and processing of WRD material will end in October 2021 as the plant will be converted to a TSF only plant from this period. Thereafter, the extraction rate of 10,000tpd will consist of only TSF material. The available capacity of the Savuka Plant guides the forecasted reclamation rate. The daily plant capacity also provides guidance for the annual rate of reclamation, which is the equivalent of 3,600ktpa, assuming a 30-day operating month. This annual capacity gives rise to the West Wits Operation LOM plan (Figure 13-7 and Figure 13-8).

13.6 Ore Transport

13.6.1MWS Operation

After the slurry has been washed into the collection sumps and delivered to the pump station at the TSF, there are a series of overland pipelines through which the slurry is pumped, to the respective stream at the MWS Plant. The processing stream, and the TSFs which feed it, are shown in Table 3-1.

13.6.2West Wits Operation

For the mining of the remaining WRD material (which ceases in 2021), front end loaders are used to load the dozed material into rail hoppers or trucks, which is transported to milling and mineral processing.

The Old North Dump TSF will be connected to the Savuka Plant, as shown in Table 3-3, by an overland pipeline, which will feed the Savuka Plant in the same way as the MWS Plant is fed.

13.7 Mining Equipment and Machinery

13.7.1MWS Operation

The following equipment and machinery is employed in the reclamation of the TSFs in the MWS Operation:

•hydraulic monitoring guns are used to deliver high-pressure water streams to the TSF mining faces; and

•pumps are required to pump the slurry from the pump station at the TSF, through the overland pipeline, and to the MWS Gold Plant;

13.7.2West Wits Operation

The following equipment and machinery is employed in the mining of the WRDs at the West Wits Operation:

•tracked bulldozers are used on the top of the WRDs to maintain WRD slope stability;

•bulldozers are also used at the bottom of the WRDs to create a safe loading distance between the base of the WRD and the loading face; and


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Figure 13-3: Graph of FY2022 Production by Source for MWS

Figure 13-4: Graph of FY2022 Production by Source for West Wits


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Figure 13-5: Graph of LOM for MWS – Tonnes and Grade

Figure 13-6: Graph of LOM for MWS – Gold Produced (kg)


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Figure 13-7: Graph of LOM for West Wits – Tonnes and Grade

Figure 13-8: Graph of LOM for MWS – Gold Produced (kg)


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•FELs are used to load the dozed material onto trucks or rail hoppers.

When the mining of WRDs ceases and the Savuka Plant switches to fully processing tailings, the equipment used will be the same as that described for the MWS Operation above.

13.8 Mining Personnel

13.8.1MWS Operation

The number of personnel employed at MWS Operation is inclusive of both mining and processing (Table 13-3).

Table 13-3: MWS Operation Mining and Processing Employee Count


Employees			Unit
Permanent			490
Contractor			2,344
Total			2,834

13.8.2MWS Operation

The number of personnel employed at West Wits Operation is inclusive of both mining and processing (Table 13-4).

Table 13-4: West Wits Operation Mining and Processing Employee Count


Employees			Unit
Permanent			102
Contractor			127
Total			229

13.9Commentary on Mining Method

Dozers are positioned on top of the WRD. The dozers are used to create safe loading faces and blend the rock. The material is then loaded from the face onto trucks using FELs and transported to the relevant gold plants for processing. When loading is done at the bottom of the WRD, precaution must be taken to ensure that the face is not undercut. This precaution measure is put in place to prevent rock falls from the dump. A slope with a maximum inclination angle of 15° is created towards the loading point, where the WRD material is pushed down. The slope angle is monitored and maintained on a continuous basis.

14Processing and Recovery Methods


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Section 229.601(b)(96) (14) (i-iv)

There are two plants, namely the MWS Gold Plant and the Savuka Plant, which are dedicated to the processing of tailings and/or WRD material. Reclaimed tailings are pumped as slurry via pipelines and WRD material is transported on trucks, to the respective plants for processing.

14.1 MWS Operation (MWS Gold Plant)

MWS Gold Plant is a gold tailings retreatment plant located in the town of Stilfontein in the North West Province, roughly 130km southwest of Johannesburg.

Reclaimed tailings from Sulphur Paydam, South East Extension, East TSF, Harties 1 TSF and Harties 2 TSF are processed through the MWS Gold Plant (Table 3-1). Other TSFs form part of the MWS Operation LOM Plan. Although MWS Gold Plant historically processed gold and uranium in 2017, the uranium and flotation plants were discontinued resulting in the MWS Gold Plant producing only gold.

14.1.1Mineral Processing Description

MWS Gold Plant treats over 2Mtpm through three CIL streams that are fed from three separate reclamation sites approximately 15km from of the plant. The flow diagram is presented in Figure 14-1.

The gold bearing slurry is pumped from the reclamation sites to the respective Streams where the gold is dissolved and adsorbed onto activated carbon then later eluted into a concentrated solution. The concentrated solution is then circulated through a series of electrowinning cells to produce a concentrated gold sludge. The sludge is smelted on site to produce gold doré bars with a purity of 85-95% and dispatched to Rand Refinery for further refining. The low gold residue slurry is then pumped to a central mega TSF approximately 20km from the plant.

14.1.2Plant Throughput, Design, Equipment Characteristics and Specifications

MWS Gold Plant is currently capable of processing 78,000tpd (Table 14-1). This excludes Stream 4 which is planned for commissioning in 2024 at an expected capacity of 8,000tpd.

Table 14-1: MWS Gold Plant Capacities and Treatment Rates


Activity			Plant Capacity (t/day)
Stream 1			22,000
Stream 2			28,000
Stream 3			28,000
Stream 4 (from 2024)			8,000
Total MWS Gold Plant			86,000

Table 14-2: MWS Gold Plant Leaching Process Parameters


Processing parameters	Unit	Value
Slurry density	kg/l	1.45 – 1.50
Leach time	hr	18 – 24
pH		10.5
Cyanide dosage	ppm	250 – 300

The following table outlines the current number and capacities of the major plant equipment found at MWS Gold Plant.


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Figure 14-1: Schematic Flow Diagram of the Metallurgical Process Diagram at MWS Gold Plant


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Table 14-3: MWS Gold Plant Equipment Specifications


Plant Equipment	No. of Tanks	Volume (m3)
Receiving Tanks	1 per stream	2,500
Leach Tanks	8 per stream	2,500
Acid Wash Column	1 per stream	20
Elution Columns	1 per stream	20
Concentrate Tanks	2 per stream	260
Spent Tanks	1 per stream	260

14.1.3Energy, Water, Process Material and Personnel Requirements

The operational water supply is sourced from circulating return water at Kareerand, the existing TSF for the MWS Gold Plant, and power to the MWS Gold Plant is received from Eskom. The monthly averages of consumption and personnel requirements are shown below (Table 14-4). The personnel requirements for the plant are included in Table 13-3.

Table 14-4: MWS Gold Plant Energy and Water Requirements


Parameter	Unit	Value
Electricity consumption	kWh	16,930,474
Water consumption	kL	384,780

14.2West Wits Operation (Savuka Plant)

Historically, TSF and WRD material processed at Savuka Plant was fed from Old North TSF dumps and the Savuka WRD. However, the plant was converted exclusively to a TSF processing facility by late 2021.

14.2.1Mineral Processing Description

The feed slurry comes from Reclamation site and is pumped into the plant sampler tank, where lime is added and thereafter cyanide. The Savuka Plant flow diagram is presented in Figure 14-2.

The slurry is pumped into 32 leach Pachucas which constitutes of four rows of eight Pachucas each and thereafter it gets pumped onto eight CIP vessels. The reagent used to dissolve the gold is sodium cyanide with the addition of lime via tightly controlled predetermined levels to control the pH.

Once the slurry is adequately leached and the gold has attached to the activated carbon this slurry is transported to Mponeng Plant for the final gold recovery processing which involves elution, electrowinning and smelting (Figure 14-2). The spent carbon is reactivated in a kiln and then returned to the Savuka plant for reuse.

14.2.2Plant Throughput, Design, Equipment Characteristics and Specifications

The Savuka Plant is a single process flow with a current processing capacity of 10,000tpd. The cyanide leach is an intricate balance of time, pH and oxygen sparging. These parameters have been determined with metallurgical test work and historical performance in order to optimise the recovery. However, the dosing valves are linked to an online analyser so that accurate concentrations which optimise the leach can be controlled, if required. The parameters used in this process are set out in Table 14-5.


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Figure 14-2: Schematic Flow Diagram of the Metallurgical Process Diagram at Savuka Plant


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Table 14-5: Savuka Plant Leaching Process Parameters


Processing parameters	Unit	Value
Leach time	hr	24 - 40
pH		10.5 – 11.5 (With lime addition)
Cyanide dosage	ppm	180 – 300 as 100% NaCN
Oxygen	ppm	Sparged at 5 – 25
RD		1.38 – 1.45
		40 – 50% solids
		SG of 2.7

The major equipment used at the Savuka Plant are presented in Table 14-6.

Table 14-6: Savuka Plant Equipment Specification


Plant Equipment	No. of Tanks	Volume (m3)
Leach
Stream 1	32	10,723
Stream 2	5	3,173
Pachuca	1	1,165
CIP	8	1,111
Sampler	1	80

14.2.3 Energy, Water, Process Material and Personnel Requirements

The operational water supply is sourced from circulating return water from no.7 and Nursery Dam, the existing TSF for the Savuka Plant and power to the Savuka Plant is received from Eskom. The monthly averages of consumption are shown in Table 14-7. The personnel requirements for the plant are included in Table 13-4.

Table 14-7: Savuka Plant Energy and Water Requirements


Parameter	Unit	Value
Electricity consumption	kWh per month	3,016,428
Water consumption	kL per month	12,500

14.3 Commentary on the Processing and Recovery Methods

The MWS Gold Plant has been in operation since 2003, when the plant was dedicated solely to tailings re-treatment, and as such the processing method is considered well established for the material being treated. The plant makes use of historical data (Figure 14-3), trends and metallurgical test work (Section 10) as the basis for their projected recoveries.

The Savuka Plant has been in operation since 2015, when the plant was dedicated solely to tailings re-treatment and WRD processing, and as such the processing method is considered well established for the material being treated. The plant makes use of historical data (Figure 14-4), trends as a basis for their projected recoveries.


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Figure 14-3: Graph of Historical Gold Recovery at MWS Gold Plant

Figure 14-4: Graph of Historical Gold Recovery at Savuka Plant


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15Infrastructure

Section 229.601(b)(96) (15)

Both MWS Operation and West Wits Operation have adequate access to the infrastructure required to meet the planned LOM production schedules.

15.1MWS Operation Surface Infrastructure

The surface infrastructure associated with MWS is presented in Figure 15-1, whilst a Google Earth image of the MWS Plant is presented in Figure 15-2.

15.1.1Ore and Waste Rock Storage Facilities

There is no requirement for waste rock deposition.

15.1.2Tailings Storage Facilities

The existing Kareerand tailings storage facility was commissioned in 2011 with a design life to 2025 at a tailings deposition rate of 1.9Mtpm. The plant has been designed to treat a total of 352Mt to incorporate all tailings for the prepared LOM tailings disposal from the MWS Operation. Since commissioning, the production plan for MWS Gold Plant has been increased and has targeted a total tailings deposition rate of 2.5Mtpm until 2039. The increased tonnage throughput requires additional deposition space hence an extension project was initiated to split the tonnages between two facilities.

The extension footprint consists of a new TSF basin adjacent to the existing facility covering an area of 340ha. The deposition on the extension will abut the existing TSF on the western slope to form one expanded TSF. The Environmental Authorisation and the Water Use Licence were received. The contract was awarded to the successful contractor to commence with the construction.

15.1.3Pipelines and Conveyors

The collection sumps that deliver the slurry to the pumping stations, which is then pumped via overland pipelines to the respective plant streams have been dedicated to the transport of material and have been maintained effectively for this purpose.

15.1.4Power and Electrical

The power supply for the operations is from Eskom substations. The reliability of electricity from Eskom has declined over time with more forced load shedding affecting the operations, which is expected to continue into the future.

15.1.5Water Usage

The operational water supply is sourced from circulating return water at Kareerand, the existing TSF for the MWS Gold Plant tailings (Figure 15-1) and pumped water from old underground workings.

15.1.6Logistics and Supply

The MWS Operations have adequate access through maintained provincial tarred roads.


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Figure 15-1: Infrastructure Plan for MWS Operation


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Figure 15-2: Detailed Infrastructure for the MWS Plant
Google Earth Image Date April 2


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15.2West Wits Operation Surface Infrastructure

The surface infrastructure associated with West Wits is presented in Figure 15-3, whilst a Google Earth image of the Savuka Plant is presented in Figure 15-4.

15.2.1Ore and Waste Rock Storage Facilities

There is no requirement for waste rock deposition.

15.2.2Tailings Storage Facilities

The Savuka Gold Plant deposits tailings onto active Dams 5A, 5B, 7A and 7B (Figure 3-2) at 290,000tpm throughout the LOM. The Savuka Complex will no longer have capacity in 2027. This is as a result of the 60m height restriction on the dams, as well as the limitation on rate-of-rise on Dams 5A and 5B.

15.2.3Pipelines and Conveyors

The surface infrastructure associated with West Wits Operation is presented in Figure 15-3. Reclaimed tailings are pumped as slurry via pipelines (Figure 15-3) and WRD material is transported on trucks, to the Savuka Plant for processing. These pipelines have been dedicated to the transport of material since 2015 and have been maintained effectively for this purpose.

15.2.4Power and Electrical

15.2.5Water Usage

Water supply for West Wits Operation (both reclamation and processing), is sourced from circulating depositional water from No.7 and Nursery Dam.

15.2.6Logistics and Supply

The West Wits Operations have adequate access through maintained provincial tarred roads.

15.3Commentary on Infrastructure

The operational infrastructure for both the MWS Operation and West Wits Operation including road, rail, offices, security services, water and power supply is adequate, and is shared with the Harmony operations in the relevant areas. Mine Waste Solutions is well-established with sufficient logistical and infrastructure support for current operation. With the inclusion of the Kareerand extension at the MWS Operation there will be sufficient capacity for the planned mining operations.


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Figure 15-3: Infrastructure Plan for West Wits Operation


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Figure 15-4: Detailed Infrastructure for the Savuka Plant
Google Earth Image Date April


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16Market Studies

Section 229.601(b)(96) (16) (i-ii)

Gold is traded in a variety of markets/exchanges both in physical form through over the counter (“OTC”) markets, bullion banks and metal exchanges etc., and through passive investments such as exchange traded funds (“ETF’s”), which are based on gold prices and units representing physical gold which may be in paper or dematerialised form. Demand is driven by the jewellery market, bar and coin, use in technology, ETF’s and other financial products, and by central banks. An overview of the gold market is given in the following sections based mainly on data from the World Gold Council and GoldHub websites.

16.1Market Overview

16.2Global Production and Supply

Gold production and supply is sourced from existing mining operations, new mines and recycling.

16.2.1 New Mine Production

16.2.2 Recycling

16.3Global Consumption and Demand

16.3.1 Jewellery

Global annual jewellery demand increased from 1,329.7t in 2020 to 2,229.4t in 2021, amid a recovery of markets from the COVID-19 pandemic.


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As with recycling, the two largest markets, India and China, were major contributors to the decline in 2020, and markets were expected to improve with economic recovery in these geographies. In Q1 2022, recovery of demand was soft, down 7% y-o-y, after new lockdowns to contain COVID-19 (Gold Demand Trends Q1 2022, Gold.org, April 2022).

16.3.2 Investment

16.3.3 Currency

16.4 Gold Price

16.4.1 Historical Gold Price

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

16.4.2 Historical Gold Price

The gold price forecast of USD1,546/oz is conservative if corroborated against a long-term broker consensus gold price outlook (Figure 16 2).

16.4.3 Harmony Group Gold Hedging Policy

Harmony has a hedging policy which is managed and executed at Group treasury level on-behalf of its operating entities. The key features of the hedging programme are as follows:

•the policy provides for hedging (or forward selling) up to a maximum of 20% of expected gold production for a rolling 24-month period;

•the policy has no minimum quantity that should be hedged, and if an attractive margin above cost cannot be achieved (i.e., in a low gold price environment) then no hedges are entered into;


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Figure 16-1: Graph of Annual Gold Price History – ZAR/kg

Figure 16-2: Graph of Consensus View of Forecast Gold Price


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•Harmony enters into ZAR-denominated gold hedges for its South African operations (for the non-South African assets it enters into USD-denominated hedges);

•Mine Waste Solution does not enter into hedges in its own name but delivers bullion to Rand Refinery for refining on behalf of Harmony. Rand Refinery is one of the world’s largest single-site precious metals refining and smelting complex in the world. Rand Refinery refine all of Harmony’s gold to at least 99.5% purity, and acting as agent, sells the gold on the daily spot London fixing price and make payment to the Harmony two days later;

•Mine Waste Solution does its mine planning and financial forecasts based on the estimated future gold price provided by the Group treasury, but its year-end actual financial results reflect the received gold price inclusive of the benefit of the hedging programme. Therefore, in theory, Mine Waste Solution receives a hedged gold price for a maximum of 20% of its gold sales with the balance attracting the spot price.

16.4.4 Gold-Streaming Arrangement: Franco-Nevada Corporation

Other than the Harmony Group hedging programme, Chemwes (Pty) Limited (“Chemwes”), internally referred to as Mine Waste Solutions, entered into a gold-streaming contract with Franco-Nevada Corporation (“Franco Nevada”), a Canada-based, gold-focused royalty and streaming company. The key terms of the contract are as follows:

•the contract is at operational level and was entered into in the name of Chemwes (inherited through the acquisition of Anglogold’s South African assets);

•Franco-Nevada is entitled to 25% of all gold produced by Chemwes until 312,500oz of gold are received. This is anticipated to be reached by 2024;

•as at the 30 June 2022 Chemwes (had delivered 251 343oz of gold; and

•Franco-Nevada makes ongoing payments to Chemwes equal to the lesser of USD400/oz of payable gold (subject to a 1% annual inflation that commenced December 2012) and the spot price for gold; the current ongoing price is equal to USD441.85/oz of gold as of June 2022.

16.5 Commentary on Market Studies

16.6 Material Contracts


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Table 16-1: Material Contracts


Vendor Name			Nature of Service /Supply
Eskom			Electricity supply
Shomene 1 cc			Earth moving equipment hire
Intasol Tailings (Pty) Ltd			Re-mining of TSF
Cyclone Projects			Deposition of tailings
Cyclone Projects			Re-mining of TSF
Cyclone Projects			Re-mining of Savuka TSF
Rand Refinery (Pty) Ltd			Gold refining charges


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17Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Section 229.601(b)(96) (17) (i-vii)

The South African Government has an extensive legal framework within which mining, environmental and social aspects of the industry are managed. Harmony and Mine Waste Solutions operation are primarily regulated and managed by certain principal Acts (Section 17.3) as well as corporate policies, management systems and certain industry-wide guidelines, including:

•Energy Efficiency and Climate Change Policy;

•Environmental Policy;

•Harmony Water Management Strategy;

•Biodiversity and Rehabilitation Position Statement;

•Socio-Economic Transformation Policy; and

•Corporate Social Responsibility Policy.

17.1Results of Environmental Studies

Mine Waste Solutions has implemented an EMS aligned with ISO 14001:2015 standard to help identify, manage and monitor its environmental impacts. The EMS provides a holistic approach to encourage better environmental performance and helps demonstrate its compliance with its statutory and regulatory requirements. Mine Waste Solutions has successfully maintained its ISO 14001 certification since its accreditation in 2019. Every effort is made by both the surface operation and underground operations to eliminate or minimise the negative effects of Mine Waste Solutions’ activities on the environment and adjacent communities.

17.2Waste and Tailings Disposal, Monitoring & Water Management

As part of its mining, environmental and water approvals, and licences, Mine Waste Solutions is required to implement monitoring programmes and plans to establish the operations impact on the environment. The compliance limits for the monitoring variable are included in the applicable EMP(s), WUL(s) and AEL(s). The environmental monitoring implemented at Mine Waste Solutions includes:

•annual EMP performance assessments;

•monthly chemical of surface water quality;

•quarterly chemical analysis of groundwater quality;

•biomonitoring surveys;

•waste classification and quantification;

•Integrated waste and water management plan updates;

•monthly and bi-annual air quality (i.e. dust) monitoring; and

•periodic licence and authorisation compliance assessments.


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17.3Permitting and Licences

In respect of environment, the following national Acts and the regulations promulgated thereunder provide the regulatory framework for mine permitting and licencing in South Africa:

•Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”);

•National Environmental Management Act, 1998 (“NEMA”);

•National Environmental Management: Waste Act, 2008 (“NEM:WA”);

•National Environmental Management: Air Quality Act, 2004 (“NEM:AQA”); and

•National Water Act, 1998 (“NWA”).

Both the MWS Operation and West Wits Operation are broadly governed by Harmony’s underground mining operations and their respective mining rights and environmental permits. There is no requirement under the existing legislative framework to hold a mining right to process mine residue stockpiles which are linked to existing operations by road, rail and/or pipeline. Environmental permits and licences are however required that trigger any specific activity listed under the above-mentioned Acts and regulations. A summary of the status of all environmental permits and licences issued at the effective date related to both the MWS Operation and West Wits Operation is presented in Table 17-1.

MWS Operation is no longer under the Vaal River Mining right. Following the sale of the Vaal River underground operations, the Vaal River mining rights were transferred to Harmony, the appropriate authorisation for Vaal River Surface Sources is currently in the process of being applied for. West Wits Surface Sources is under West Wits Mining Rights.

All relevant mining, environmental and water-use permits are in place that cover the environmental, archaeological, and hydrological components of Mine Waste Solutions. All permits are audited regularly for compliance and the operation is currently within compliance for all relevant permits. The permits are continuously amended as required by the operation through relevant authorities. To this end, environmental approval is required for the future expansion of Kareerand TSF as well as the closure of Kopanang Gold Plant. The EIA process for environmental approval is underway.

17.4 Local Stakeholder Plans and Agreements

•contribute to areas that will have the most meaningful socioeconomic impact on communities, namely infrastructure, education and skills development, job creation and entrepreneurial development;

•enhance broad-based local and community economic empowerment and enterprise development initiatives;

•facilitate socio-economic development in local communities by means of corporate social responsibility programmes;

•support arts, culture, and sports and recreation; and

•build relationships based on trust within host communities.

Despite no formal or regulatory agreements in place for Mine Waste Solutions, the Company has committed to source labour from the surrounding communities as far as possible, where applicable.


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Table 17-1: Status of Environmental Permits and Licences

Operation

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

MWS

Atmospheric Emissions Licence: MWS Gold Plant

NWPG/CHEMWES/AEL 4.1; 4.2 & 4.17

DEDECT

30-Sep-20

29-Sep-25

Certificate of Registration Inflammable Liquids and Substances: Chemwes Plant

Various Certificates issued for All Areas of the plant and outside sections

City Council of Matlosana

31-Dec-21

Water Use Licence: Chemwes

08/C24B/AACIG/8368 27/2/2/C224/101/1

DWS

31/11/2018

31/11/2028

New WUL issued on 10 June 2022, however it is being reviewed as it excluded some permitted activities that were in the previous WUL. Currently operating under previous WUL.

Environmental Authorisation for expansion of Karee

NWP/EIA/176/2008

DMRE

2021/11/11

N/A

Licence to construct a dam with safety risk: Chemwes

12/2/C241/37

DWS

18-Jun-10

West Wits

Atmospheric Emissions Licence

WR/16-17/AEL9/3

Dr. Kenneth Kaunda District Municipality

02-Oct-18

02-Oct-23

Water Use Licence

08/C23E/AEFGJ/1250

DWS

30-Nov-18

Amended WUL submitted 2020. Waiting for approval.

Environmental Authorisation

(GP) 30/5/1/2/3/2/1(01) EM

DMRE

26-Sep-18

N/A

(GP) 30/5/1/2/2(01) MR

Waiting for transfer to Harmony to be completed.

Waste Management Licence

Gaut 002/09-10/W0011

GDARD

27-Jul-15

Expired

AGA submitted renewal application. Awaiting approval.

DMRE


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17.5Mine Closure Plans

Since Mine Waste Solutions does not operate under a mining right, there is no legal requirement under the current South African legislative framework for Harmony to compile a closure plan and provide financial assurance to the regulator. Despite this, Harmony appointed Digby Wells Environmental (“Digby Wells”), an independent environmental consultant, to review and update the closure cost for MWS which was evaluated in June 2021. The exercise was conducted under the general “duty of care” principle as per Section 28 of NEMA, using regulation 53 and 54 of the MPRDA as a guideline.

The approach followed by Digby Wells involved:

•identifying all areas and infrastructure that form part of Mine Waste Solutions responsibility (including both the MWS Operation and West Wits Operation);

•measuring the volumes and areas of the active waste rock dumps and TSFs using survey data;

•developing a site-specific closure cost model aligned with the methodologies applied to other Harmony operations; and

•compiling a report that outlines the methodology, assumptions, technical solutions, and any potential risks identified related to the closure cost.

The closure cost as at 30 June 2022, was calculated to be ZAR879m, including a 10% contingency allowance.

Harmony does not have a legal obligation to have a post-performance or reclamation bond in place with the regulator to fund the cost of closure.

17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups

Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure at Mine Waste Solutions. The Air Emissions License of MWS need to be amended. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 6 and 18 months.

17.7Local Procurement and Hiring

Harmony is committed to investing in the future of local communities beyond the life of the operations and not to only empower them, but also to mitigate the impacts of its operations to ensure a positive legacy. Although Mine Waste Solutions is not governed by the MPRDA and therefore there is no legal obligation to comply with the 2014 Mining Charter, the Company applies this framework in its socio-economic development initiatives such as the procurement of local goods and services. Portable skills are developed through expanded learning programmes, learnerships and other programmes opened to operating communities and areas where labour is sourced.

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Periodic inspections are conducted by the regulator to verify compliance with applicable environmental laws, regulations, permits and standards. In addition, Mine Waste Solutions has implemented an EMS in line with the ISO 14001 standard. The EMS is audited on an annual basis by a third party and includes the needs and expectations of interested parties.

As part of the Harmony group, Mine Waste Solutions conducts its operation based on policies and systems that are aligned to its corporate sustainable development framework. Although Harmony is not a signatory to the International Council on Mining and Metals or the UN Global Compact, these form the guiding principles of the framework. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (GRI). Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (CDP) for both climate change and water.


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Mine Waste Solutions and its associated underground operations have a good understanding of the environmental and social aspects of the operations through baseline and specialist studies previously conducted. Risk management and mitigation measures were adequately addressed in the environmental management plans and will be effective to mitigate risks and impacts to acceptable levels should the measures be implemented according to the specialists’ recommendations.

Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure at Mine Waste Solutions. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.


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18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Economic parameters for the Harmony Group, including capital and operating costs, are determined, and signed off by the CODM, before distribution to the business units, including Mine Waste Solutions. The capital and operating costs are reported in ZAR terms and on a real basis. Rounding of figures may result in minor computational discrepancies.

18.1MWS Operation

18.1.1 Capital Costs

A detailed breakdown of the estimated capital costs for major projects covering the LOM is shown in Table 18-1. The Kareerand TSF expansion project contributes the majority to the capital allocation as the extension footprint will consist of a new TSF basin adjacent to the existing facility covering an area of 340ha. Other capital contributions will be assigned to the relocation of the current pump stations as the reclamation footprint is exhausted and the addition of Stream 4 to the MWS Gold Plant as production is planned to increase.

18.1.2 Operating Costs

A summary of the direct and indirect unit operating costs for the MWS Operation are presented in Table 18-2. The costs shown in the below show the budgeted operating expenditure going forward. The cash flow model separates the three streams of the MWS Gold Plant

18.2 West Wits Operation

18.2.1 Capital Costs

No capital costs have been allocated to the West Wits Operation for the remaining duration of the LOM.

18.2.2 Operating Costs

A summary of the direct and indirect unit operating costs for the West Wits Operation are presented in Table 18-3. The costs shown in the tables below show the 2022 actual operating expenditure and the budgeted operating expenditure going forward.


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Table 18-1: MWS LOM Capital Cost Estimate for MWS Operation Major Projects


Capital Cost Element (ZARm)			Total LOM (FY2023 -FY2039)
Kareerand			2,052.34
West 1			215.06
Mispah 1			400.90
Buffels5			56.97

MWS 4 & 5 Pump1			309.77
Stream 4			168.62
VR Substation			21.10
Other			1,658.21
Total			4,882.98


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Table 18-2: Summary of Operating Cost Estimates for MWS Operation (MWS Gold Plant)


Operating Costs (ZAR/t processed)	Actual (2021/2022)	Budget (2022/2023)
Maintenance	1.26	1.28
Plant Labour	2.24	2.44
Operational Consumables	0.12	0.38
Plant Contractors	4.26	4.40
Cost Allocations	51.31	49.99
Major Engineering Stores	0.81	0.42
Services	1.36	0.99
Engineering	4.36	4.48
Mine Overheads	3.40	2.79
Total	69.12	67.17

Table 18-3: Summary of Operating Cost Estimates for West Wits Operation


Operating Costs (ZAR/t processed)			West Wits and Savuka Plant
Maintenance			0.86
Plant Contractors			6.16
Cost Allocations			69.60
Major Engineering Stores			0.37
Engineering			3.02
Mine Overheads			5.26
Total			85.27


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19Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

19.1Key Economic Assumptions and Parameters

The CODM forms, reviews, signs-off and distributes economic assumptions to its various business units. On an annual basis, during the period October to November, long-term commodity prices and exchange rates forecasts’, are received from various financial institutions. In addition, a specialist in Economics from a reputable economics company based in South Africa, provides expert views on the global markets, forward looking commodity prices, exchange rates, consumer price index, production price index, electricity cost and consumable increases. All factors are analysed, cognisance is taken of the requirements of the NYSE and JSE markets, and a proposal is presented to the CODM for recommendation and approval. These assumptions are then applied at Mine Waste Solutions, along with specific operational considerations.

19.1.1 Metallurgical Recoveries

The metallurgical recoveries used in the economic analysis are those provided in Table 12-1 and Table 12-3.These are based on metallurgical test work, and historical results.

19.1.2 Gold Price

The gold price used for the West Wits Operation for both their Mineral Reserves and economic analysis is the price used by Harmony for all of its other operations. Due to the Franco Nevada gold streaming arrangement, the gold price used for the MWS Operation cash flow differs from the proposed gold price used for the other Harmony assets; the Franco Nevada streaming arrangement will be concluding in 2026, and from thereon, the MWS Operation will use the same gold price as the West Wits Operation.

The gold price general conversions are presented in Table 19-1. The gold prices specifically used for the MWS and West Wits Operations are provided in Table 19-2. The reader is referred to Figure 16-2 for the consensus forecast gold price.

Table 19-1: Conversions Used in Gold Price Calculations


Economic Factors	Gold Price (USD/oz)	Conversion Factor (oz/kg)	Exchange Rate (ZAR:USD)	Gold Price (ZAR/kg)
2022 Mineral Resource	1,723	32.15	15.35	850,191
2022 Mineral Reserve	1,546	32.15	15.35	763,000
2023 forecasted gold price	1,546	32.15	15.35	763,000
Notes: 1. Forecasted gold prices as used in the Mine Waste Solutions and West Wits tailing reclamation cash flows

Table 19-2: Gold Prices Used


Gold Price (ZAR/kg)	2023	2024	2025	2026
2022 Mineral Resource	850,191	850,191	850,191	850,191
2022 Mineral Reserve	763,000	763,000	763,000	763,000
MWS Operation Cash Flow (Franco Nevada)	753,123	627,074	627,612	718,244
West Wits Operation Cash Flow	763,000	763,000	763,000	763,000
Notes: 1. oz/kg conversion factor = 32.15

19.1.3 Exchange Rate

In addition, the CODM has reviewed the ZAR:USD exchange rate performance over the past three years, for the period July 2019 - June 2022 (Table 19-3).


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Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast


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Table 19-3: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)


Period			Average Exchange Rate (ZAR:USD)
July 2019 to June 2020			15.68
July 2020 to June 2021			15.41
July 2021 to June 2022			14.75
3-Year Ave. (not weighted)			15.28

The proposed spot exchange rate of 15.35 ZAR:USD is the exchange rate that is used by Harmony for the Mine Waste Solutions annual planning cycle and forms the basis for the ZAR:USD exchange rate assumptions used in the Mine Waste Solutions cash flow.

19.1.4 Royalties

Royalty is an expense paid to the government of South Africa and is accounted for in both the MWS Operation and West Wits Operation cash flow models. In terms of the mining ring-fencing application, each ring-fenced mine is treated separately, and deductions can normally only be utilised against mining income generated from the relevant ring-fenced mine.

19.1.5 Capital Expenditure

Detailed capital costs can be found for MWS Operation in (Table 18-1), West Wits Operation has not declared any capital costs within their cash flow model.

19.1.6 Operating Expenditure

19.1.7 Working Capital

Movements in working capital are accounted for in the economic analysis; they are not however provided as a separate line item within Table 19-6 and Table 19-7.

19.1.8 Taxes

19.1.9 Closure Cost and Salvage Value

The closure cost estimates are those provided in Section 17.4. No account has been taken of any potential salvage values.

19.1.10 Summary

The key assumptions used in the cash flow are summarised for MWS and West Wits in Table 19-4 and Table 19-5, respectively.


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Table 19-4: Key Economic Assumptions and Parameters for MWS Cash Flow


Parameter	Unit	Value
Production Rate	tpm	2,361,208
Gold Recovery	%	45.64
Royalty	% of Revenue	0.02
Tax Rate	%	Formula
Gold Price	ZAR/kg	627,074
Exchange Rate	USD:ZAR	Variable
Discount Rate	%	9.00
Note: 1. This is based on the Franco Nevada arrangement that concludes in 2025

Table 19-5: Key Economic Assumptions and Parameters for West Wits Cash Flow


Parameter	Unit	Value
Production Rate	tpm	293,333
Gold Recovery	%	41.00
Royalty	% of Revenue	0.50
Tax Rate	%	Formula
Gold Price	ZAR/kg	763,000
Exchange Rate	USD:ZAR	Variable
Discount Rate	%	9.00

19.2 Economic Analysis

Harmony's respective business units and its associated operating sites consider the economic assumptions discussed in Section 19.1 during their respective planning and analysis processes.

The discounted cash flow model is used to calculate the NPV of the investments. The NPV for the spot metal price, for MWS Operation is ZAR1,175m and for West Wits Operation ZAR199m at a discount rate of 9%. The NPV is calculated on a cash flow that accounts for factors such as:

•mining and ore processing working costs;

•royalty payments;

•capital costs, including costs allocated to ongoing development;

•any significant project work considered as major projects; and

•costs deemed as abnormal expenditure.

The cash flow for MWS is presented in Table 19-6, whilst that for West Wits is provided in Table 19-7.


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Table 19-6: MWS Operation Cash Flow


Parameter	Unit	Total LOM	FY2023	FY2024	FY2025	FY2026	FY2027	FY2028	FY2029	FY2030	FY2031































Milled Tonnes	kt	440,274.8	25,784.7	26,466.3	28,343.7	28,334.5	28,491.9	28,334.5	28,334.5	28,334.5	28,491.9





Gold Produced	kg	54,180.8	2,942.5	3,422.0	3,761.1	3,441.8	3,114.4	2,978.3	3,247.2	3,607.2	3,031.8
Revenue	ZAR(m)	40,308.6	1,845.1	2,147.7	2,701.4	2,626.1	2,376.3	2,272.4	2,477.6	2,752.3	2,313.3
Operating Costs	ZAR(m)	29,656.4	1,815.1	1,847.7	1,887.3	1,830.6	1,827.8	1,972.4	1,971.6	1,963.9	1,934.2
Capital	ZAR(m)	4,881.2	1,554.3	1,318.1	369.7	204.1	304.9	197.0	100.8	85.0	109.2
Royalties	ZAR(m)	111.7	0.3	0.2	0.1	0.0	0.0	0.5	1.6	10.0	11.5


EBIT	ZAR(m)	5,658.4	-1,524.5	-1,018.4	444.3	591.3	243.5	102.5	403.6	693.4	258.4
NPV - (low discount rate - 9%) (Rm)	@9%	1,175.0
NPV - (medium discount rate - 12%) (Rm)	@12%	511.0
NPV - (high discount rate - 15%) (Rm)	@15%	41.0

Table 19-7: West Wits Operation Cash Flow


Parameter	Unit	Total LOM	FY2023	FY2024	FY2025	FY2026	FY2027	FY2028
Milled Tonnes	kt	19,325.0	3,520.0	3,510.0	3,510.0	3,510.0	3,520.0	1,755.0
Recovery	%	41.0	41.0	41.0	41.0	41.0	41.0	41.0
Gold Produced	kg	2,578.0	474.0	462.0	460.0	440.0	502.0	240.0
Revenue	ZAR(m)	1,967.1	361.3	352.2	350.9	335.3	383.5	183.9


Operating Costs	ZAR(m)	1,676.8	300.2	301.1	302.3	304.8	305.6	162.8
Capital	ZAR(m)	-	-	-	-	-	-	-
Royalties	ZAR(m)	31.7	1.8	1.8	5.5	8.5	10.4	3.7
EBIT	ZAR(m)	258.7	59.3	49.3	43.0	22.0	67.6	17.4
NPV - (low discount rate - 9%) (Rm)	@9%	199.1
NPV - (medium discount rate - 12%) (Rm)	@12%	184.1
NPV - (high discount rate - 15%) (Rm)	@15%	170.9


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19.3Sensitivity Analysis

The sensitivity analysis for the MWS Operation and West Wits Operation LOMs is based on a change in a single assumption while holding all other assumptions constant. In practice, this is unlikely to occur, as risks and/or opportunities will have an impact on the cash flows, and changes in some of these assumptions may be correlated.

19.3.1 MWS Operation Sensitivity Analysis

The sensitivities for MWS are presented in Table 19-8, Table 19-9 and Table 19-10. The sensitivity analysis for MWS indicates that the cash flow is most sensitive to changes in the gold price (ZAR/kg), closely followed by changes in total operating costs (ZARm). Due to the Franco Nevada gold streaming arrangement, the sensitivities on the gold price used for the MWS Operation is based on the Franco Nevada streaming arrangement (Table 19-2).

Table 19-8: MWS Gold Price Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Operating Cost (ZAR(M))	Capital Cost (ZAR(M))	NPV (ZARm)
10%	54,181	839,300	29,768	4,881	3,180
5%	54,181	801,150	29,768	4,881	2,181
LOM Plan	54,181	763,000	29,768	4,881	1,175
-5%	54,181	724,850	29,768	4,881	182
-10%	54,181	693,636	29,768	4,881	-817

Table 19-9: MWS Operating Cost Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Operating Cost (ZAR(M))	Capital Cost (ZAR(M))	NPV (ZARm)
10%	54,181	763,000	32,745	4,881	-371
5%	54,181	763,000	31,257	4,881	405
LOM Plan	54,181	763,000	29,768	4,881	1,175
-5%	54,181	763,000	28,280	4,881	1,958
-10%	54,181	763,000	26,791	4,881	2,734

Table 19-10: MWS Capital Cost Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Operating Cost (ZAR(M))	Capital Cost (ZAR(M))	NPV (ZARm)
10%	54,181	763,000	29,768	5,370	818
5%	54,181	763,000	29,768	5,125	999
LOM Plan	54,181	763,000	29,768	4,881	1,175
-5%	54,181	763,000	29,768	4,637	1,363
-10%	54,181	763,000	29,768	4,393	1,545

19.3.2 West Wits Operation Sensitivity Analysis

The sensitivities are calculated and analysed, as shown in the accompanying tables (Table 19-11 and Table 19-12). The sensitivity analysis indicates that West Wits is most sensitive to changes in the gold price (ZAR/kg).


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Table 19-11: West Wits Gold Price Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Operating Cost (ZAR(M))	NPV (ZARm)
10%	2,578	839,300	1,677	346
5%	2,578	801,150	1,677	272
LOM Plan	2,578	763,000	1,677	200
-5%	2,578	724,850	1,677	125
-10%	2,578	686,700	1,677	51

Table 19-12: West Wits Operating Cost Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Operating Cost (ZAR(M))	NPV (ZARm)
10%	2,578	763,000	1,845	218
5%	2,578	763,000	1,761	208
LOM Plan	2,578	763,000	1,677	200
-5%	2,578	763,000	1,593	189
-10%	2,578	763,000	1,509	179


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20Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

The footprints of the MWS Operation TSFs cover an area of approximately 1,100ha. The material contained in the TSFs and WRDs originates from the MWS, Buffelsfontein, Hartebeestfontein, and Stilfontein gold mines.

The West Wits Operation is located to the northwest of the Mponeng Mine with its major TSF being the Old North TSF that was used as the tailings facility for the original Savuka Mine. TauTona and Savuka have been completely mined out with respect to the VCR horizon, however some infrastructure remains on the CLR horizon.

21.Other Relevant Data and Information

Section 229.601(b)(96) (21)

Public disclosure reports on Mine Waste Solutions operational, financial, and environmental performance are available on the Company’s corporate website. The following reports are relevant to this TRS:

•Integrated annual report 2022;

•ESG report 2022;

•Financial report 2022;

•Report to shareholders 2022; and

•Operational report 2022.

22Interpretation and Conclusions

Section 229.601(b)(96) (22)

Mine Waste Solutions and West Wits Operations are 100% owned Harmony assets and are located in well-established mining districts. Both operations are accessible within the national and provincial road network, with well-established infrastructure. Management has an in depth understanding of the aspects pertaining to legal and environmental matters with respect to operating within the South African mining law, as regulated by the MPRDA, and supporting legislation.

AngloGold Ashanti acquired MWS operations from First Uranium in 2012. On the 1 October 2020 Harmony acquired all of AngloGold Ashanti’s surface operations, including the MWS and West Wits Operations.

The drilling and sampling methodology in use for Harmony’s TSFs has been developed specifically for the challenges posed by these deposits and is aligned with industry best practice. This protocol has been in place since 2011, and the drilling components are applied by contractors who are experienced in this specific methodology.

Mine Waste Solutions’ Mineral Resources and Mineral Reserves are derived from TSFs and WRDs originating from deep level gold mines, mostly located in Klerksdorp and Carletonville. The MWS Operations are mainly derived from the mining of VR. The Carletonville mining operations predominantly mined reefs such as the CLR and the VCR.

Post 2012, after AngloGold acquired the operations, a drilling campaign was implemented on all planned TSFs for updated block models except on MWS 4 (part of future drilling plan) and Buffels 2,3,4 (floor cleaning). Belt sampling is used in the Mineral Resource estimate and grade control since WRD are not drilled.

The TSF samples are submitted with internal Harmony QAQC material. The received laboratory results are verified based on the performance internal QAQC. WRD samples are not submitted to the laboratory with Harmony internal QC material. The QP relies on the laboratory’s internal QAQC procedures to verify accuracy and precision of the primary sample results. TSF drilling data is store in an accessed controlled database that is auditable.


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On the current sources, the reclaimed source gets sampled daily for the duration of the production month to make a composite sample for the base leach test work. Simulating the plant conditions at an ISO/IEC17025 accredited laboratory, the leachability of the material is established, and the data is used to formulate the performance targets.

On prospective deposits, samples are collected through drilling on an even grid system covering the entire surface area of the dam and the height of the deposit. The collected samples get sent to an ISO/IEC17025 accredited laboratory for grade, mineralogical association determination and gold recovery test works. The acquired data is used to determine the financial viability of the deposit as an ore resource in-line with the existing plant infrastructure.


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

Reclaimed tailings are pumped as slurry via pipelines and WRD material is transported on trucks, to the respective plants for processing at one of two plants, using an established processing method. The operational infrastructure for both MWS Operation and West Wits Operation including road, rail, offices, security services, water and power supply is adequate, and is shared with the Harmony operations in the relevant areas. The infrastructure is sufficient for the realisation of the current LOM plan.

The economics for both MWS and West Wits Operations display positive cashflows, based on detailed operating and capital costs. Positive NPV on both operations on a 5 % sensitivity applied on cost and gold price. The assumptions and conclusions in this TRS contain the views of QPs and does not contain any known material risks at the time of compilation.

Each QP was responsible for specific sections of this TRS which they have personally supervised and reviewed. This TRS contains the expression of the QP opinions, based on the information available at the time of preparation.

The gold price used for both Mineral Resources and Reserves are signed off by Harmony Corporate Office (Randfontein).

All the required permits are in place and amendments are being actioned. The Kareerand expansion capital has been approved. The West Complex pump station is in the process of being constructed. The MWS pump station is in feasibility phase and will commence in 2024 together with Stream 4.

In the West Wits, Old north TSF is not depleted in the plan due to deposition constraint

23.Recommendations

Section 229.601(b)(96) (23)

Stringent measures must be put in place to ensure the reclamation is done at an acceptable density to avoid bypass to Kareerand to ensure all declared tonnages are processed for gold.

In the case where deposition occurred after drilling, it is recommended that the model totals be updated with the deposited volumes, tonnage and gold grade.

24. References

Section 229.601(b)(96) (24)

CAE (2015) Technical report of the AGA Sulphur Pay Dam Mineral Resource Estimation. REP2015-2720.

Govindsammy, V. (2005). Vaal River Surface Mineral Resource Statement as at 31 December 2005.

Govindsammy, V. (2006) Vaal River Surface Resource Project.

Harmony Gold Mining Company (2020) Corporate Business Plan, 2020.

Harmony Gold Mining Company (2021) Corporate Business Plan, 2021.


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			Technical Report Summary for Mine Waste Solutions, North West, South Africa

https://www.gold.org/goldhub/data/gold-prices. Accessed 22 July 2022.

King, HL. (2012) An Independent Qualified Persons Report on the Mine Waste Solutions Tailings Recovery Project, North West Province, South Africa.

Lenahan, WC and Murray-Smith, RdL. (1989) Assay and analytical practice in the South African Mining Industry. The South African Institute of Mining and Metallurgy. Johannesburg.

Minxcon (2016) Technical Report on the AGA Old North Tailings Storage Facility Mineral resource estimation, Savuka Mine, Gauteng, South Africa

Minxcon (2018) Technical Report on the AGA Old North Tailings Storage Facility Mineral resource estimation, Savuka Mine, Gauteng, South Africa

Rademeyer B. (2000) Vaal River Surface Mineral Resources as at 31 December 2000.

Selebogo BJ (2019) WW and VR Waste Rock Dump Sampling procedure, 2019.

Selebogo BJ (2021) Competent Persons Report, Mine Waste Solutions, 2022.

Maipushi, MS. (2015) Tailings storage facilities sampling procedure. SA Surface Operations, Mine Waste Solutions. STD2015-2378_Auger drilling and sampling procedure

Maipushi MS (2021) Summary on scout drilling program and usage. Mine Waste Solution, North West, South Africa.

Maipushi MS (2000) East TSF metallurgical test work report. Mine Waste Solution, North West, South Africa

Robb, L.J., and Meyer, F., 1995. The Witwatersrand Basin, South Africa: Geological framework and mineralisation processes. Ore Geology Reviews, 10(2), 67-94.

Robb, L.J., Robb, V.M., 1998. Gold in the Witwatersrand Basin. In: Wilson, M.G.C., Anhaeusser, C.R. (Eds.), The Mineral Resources of South Africa. Handbook. Council for Geoscience, 294–349.

World Gold Council. (2022, July 13). World Gold Council, Gold Hub, Gold mine production: Gold Production by Country | Gold Production | Goldhub

25. Reliance on Information Provided by the Registrant

Section 229.601(b)(96) (25)

Table 25-1: Other Specialists


Name	Specialist	Area of Responsibility	Association / Company
D de Witt	Finance/Costing	Finance Manager	MWS
C Labuschagne	Finance/Costing	Finance Manager	West Wits
N Strydom	Mining Rights	Harmony Senior Legal Council	Central
C Geel	Environmental	Environmental Manager	Central


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HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Kusasalethu Mine

Gauteng Province, South Africa

Effective Date: 30 June 2022

Final Report Date: 15 July 22


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Signature Page

/s/ Johann Ackermann

___________________________________

Mr Johann Ackermann

BSc. Geology

SAIMM

Ore Reserve Manager, Kusasalethu Mine

Harmony Gold Mining Company Limited

/s/ Sias Le Roux

___________________________________

Mr Sias Le Roux

BSc. (Hons) Geol

HOD Geologist, Kusasalethu Mine

Harmony Gold Mining Company Limited

/s/ S van Huyssteen

__________________________________

Ms S van Huyssteen

BA. (Env Man)

Senior Environmental Co-ordinator,

Mponeng/Kusasalethu Mine

Harmony Gold Mining Company Limited

/s/ Michael Hopwood

__________________________________

Mr Michael Hopwood

B.Com. (Hons )

CIMA

Financial Manager, Kusasalethu Mine

Harmony Gold Mining Company Limited

/s/ Gert Nagel

___________________________________

Mr Gert Nagel

MBA; GDE (Mining Engineering)

HOD Planning, Kusasalethu Mine

Harmony Gold Mining Company Limited

Effective Date: 30 June 2022

Final Report date: 25 July 2022

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

List of Contents


1	Executive Summary			1
2	Introduction			5
3	Property Description and Location			6
	3.1	Mineral Tenure		6
	3.2	Property Permitting Requirements		6
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			8
	4.1	Accessibility		8
	4.2	Physiology and Climate		8
	4.3	Local Resources and Infrastructure		8
5	History			9
	5.1	Historical Ownership and Development		9
	5.2	Historical Exploration		9
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		9
	5.4	Past Production		10
6	Geological Setting, Mineralisation and Deposit			12
	6.1	Regional Geology		12
	6.2	Local Geology		12
	6.3	Property Geology		17
		6.3.1	VCR Lithology	17
		6.3.2	Structure	18
	6.4	Mineralisation		18
		6.4.1	VCR Mineralisation	19
		6.4.2	Alteration	19
	6.5	Deposit Type		19
	6.6	Commentary on Geological Setting, Mineralisation and Deposit		20
7	Exploration			21
	7.1	Geophysical Seismic Survey		21
	7.2	Topographic Surveys		21
	7.3	Underground Mapping		21
	7.4	Channel Sampling Methods and Sample Quality		22
	7.5	Surface Drilling Campaigns, Procedures, Sampling, Recoveries and Results		22
		7.5.1	Drilling Methods	22
		7.5.2	Collar and Downhole Surveys	22
		7.5.3	Logging Procedures	22
		7.5.4	Drilling Results	23
		7.5.5	Core Recovery	24
		7.5.6	Sample Length and True Thickness	24
	7.6	Underground Drilling Campaigns, Procedures, Sampling, Recoveries and Results		24
		7.6.1	Drilling Methods	25
		7.6.2	Collar and Downhole Surveys	25
		7.6.3	Logging Procedures	25
		7.6.4	Drilling Results	25
		7.6.5	Core Recovery	26
		7.6.6	Sample Length and True Thickness	26
	7.7	Hydrogeology		26
	7.8	Geotechnical Data		26
	7.9	Commentary on Exploration		26
8	Sample Preparation, Analyses and Security			27
	8.1	Sampling Method and Approach		27
		8.1.1	Channel Samples	27

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		8.1.2	Core Samples	27
	8.2	Density Determination		28
	8.3	Sample Security		28
	8.4	Sample Storage		28
	8.5	Laboratories Used		28
	8.6	Laboratory Sample Preparation		28
	8.7	Assaying Methods and Analytical Procedures		28
	8.8	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)		29
		8.8.1	Field QAQC	29
		8.8.2	Laboratory QAQC	30
		8.8.3	QAQC Results	30
	8.9	Comment on Sample Preparation, Analyses and Security		31
9	Data verification			32
	9.1	Data Verification Procedures		32
	9.2	Limitations to the Data Verification		32
	9.3	Comment on Data Verification		32
10	Mineral Processing and Metallurgical Testing			33
	10.1	Extent of Processing, Testing, and Analytical Procedures		33
	10.2	Degree of Representation of the Mineral Deposit		33
	10.3	Analytical Laboratory Details		33
	10.4	Test Results and Recovery Estimates		33
	10.5	Commentary on Mineral Processing and Metallurgical Testing		34
11	Mineral Resource Estimate			35
	11.1	Geological Database		35
	11.2	Global Statistics		35
	11.3	Geological Interpretation		35
	11.4	Structural Wireframe Model		37
	11.5	Compositing		37
	11.6	Capping		37
	11.7	Variography		37
	11.8	Mineral Resource Estimation Methods		37
	11.9	Estimation Parameters		38
	11.10	Density Assignment		38
	11.11	Model Validation		38
	11.12	Mineral Resource Evaluation		38
	11.13	Mineral Resource Classification and Uncertainties		40
	11.14	Mineral Resource Estimate		40
	11.15	Audits and Reviews		42
	11.16	Mineral Resource Reconciliation		42
	11.17	Comment on Mineral Resource Estimates		42
12	Mineral Reserve Estimate			44
	12.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve		44
	12.2	Modifying Factors		44
	12.3	Mineral Reserve Estimate		45
	12.4	Mineral Reserve Reconciliation		46
	12.5	Commentary on Mineral Reserve Estimate		46
13	Mining Method			47
	13.1	Mining Operations		47
		13.1.1	Sequential Grid Mining (“SGM”)	47
	13.2	Mine design		50
		13.2.1	Mine Design Parameters	50

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	13.3	Mine Plan Development and Life of Mine (“LOM”) Schedule		51
	13.4	Geotechnical and Geohydrological Considerations		51
	13.5	Dilution and Grade Control		54
	13.6	Ore transport		54
	13.7	Mining Equipment and Machinery		54
	13.8	Mining Personnel		54
	13.9	Commentary on Mining Method		56
14	Processing and Recovery Methods			57
	14.1	Mineral Processing Description		57
	14.2	Plant Throughput, Design, Equipment Characteristics and Specifications		57
	14.3	Energy, Water, Process Material and Personnel Requirements		59
		14.3.1	Energy	59
		14.3.2	Water	59
		14.3.3	Process Material	59
		14.3.4	Personnel	60
	14.4	Commentary on the Processing and Recovery Methods		60
15	Infrastructure			62
	15.1	Surface Infrastructure		62
		15.1.1	Ore and Waste Rock Storage Facilities	62
		15.1.2	Tailings Storage Facilities	62
		15.1.3	Power and Electrical	62
		15.1.4	Water Usage	67
	15.2	Underground Infrastructure and Shafts		67
	15.3	Commentary on Infrastructure		67
16	Market Studies			68
	16.1	Market Overview		68
	16.2	Global Production and Supply		68
		16.2.1	New Mine Production	68
		16.2.2	Recycling	68
	16.3	Global Consumption and Demand		68
		16.3.1	Jewellery	68
		16.3.2	Investment	69
		16.3.3	Currency	69
	16.4	Gold Price		69
		16.4.1	Historical Gold Price	69
		16.4.2	Forecast Gold Price	69
		16.4.3	Harmony Group Gold Hedging Policy	69
	16.5	Commentary on Market Studies		72
	16.6	Material Contracts		72
17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			73
	17.1	Results of Environmental Studies		73
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		73
	17.3	Permitting and Licences		74
	17.4	Local Stakeholder Plans and Agreements		75
	17.5	Mine Closure Plans		75
	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups		76
	17.7	Local Procurement and Hiring		76
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		76

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


18	Capital and Operating Costs			77
	18.1	Capital Costs		77
	18.2	Operating Costs		77
	18.3	Comment on Capital and Operating Costs		77
19	Economic Analysis			78
	19.1	Key Economic Assumptions and Parameters		78
		19.1.1	Metallurgical Recoveries	78
		19.1.2	Gold Price	78
		19.1.3	Exchange Rate	78
		19.1.4	Royalties	80
		19.1.5	Capital Expenditure	80
		19.1.6	Operating Expenditure	80
		19.1.7	Working Capital	80
		19.1.8	Taxes	80
		19.1.9	Closure Cost and Salvage Value	80
		19.1.10	Summary	80
	19.2	Economic Analysis		81
	19.3	Sensitivity Analysis		81
20	Adjacent properties			83
21	Other Relevant Data and Information			84
22	Interpretation and Conclusions			85
23	Recommendations			87
24	References			88
25	Reliance on Information Provided by the Registrant			89

Effective Date: 30 June 2022

vii


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

List of Figures


Figure 3-1: Location of Kusasalethu			7
Figure 3-2: Legal Tenure of Kusasalethu			7
Figure 5-1: Graph of Past Production– Tonnes and Grade			11
Figure 5-2: Graph of Past Metal Production			11
Figure 6-1: Regional Geology of the Witwatersrand Basin			13
Figure 6-2: Stratigraphy of the CRG in the Witwatersrand Supergroup			14
Figure 6-3: Simplified Stratigraphy of the West Wits Goldfield			15
Figure 6-4: Cross Section Through Kusasalethu			16
Figure 6-5: Kusasalethu VCR Geological Structure Plan			19
Figure 7-1: Location of Samples Collected from the VCR to Date			23
Figure 11-1: Kusasalethu VCR Geozones			35
Figure 11-2: Distribution of Gold Values on the VCR			39
Figure 11-3: Location of Kusasalethu VCR Mineral Resources and Mineral Reserves			41
Figure 13-1: Plan Showing the SGM Sequence at Kusasalethu			48
Figure 13-2: Plan View Extracted from Mine Design Software Depicting a Crosscut			49
Figure 13-3: Section of the Blueprint Footwall Crosscut Design at Kusasalethu			49
Figure 13-4: Graph of the Kusasalethu LOM Plan - Tonnes and Grade			53
Figure 13-5: Graph of the Kusasalethu LOM Plan – Gold Produced (oz)			53
Figure 14-1: Schematic Flow Diagram of the Metallurgical Process			58
Figure 14-2: Graph of VCR Historical Recovery Factor (18 month actual)			61
Figure 15-1: Kusasalethu and Mponeng Surface Mine Layout and Infrastructure			63
Figure 15-2: Kusasalethu Surface Infrastructure			64
Figure 15-3: Mponeng Plant Surface Infrastructure			65
Figure 15-4: Kusasalethu Mine Shaft and Underground Infrastructure			66
Figure 16-1: Graph of Annual Gold Price History – ZAR/kg			70
Figure 16-2: Graph of Consensus View of Forecast Gold Price			70
Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast			78

Effective Date: 30 June 2022

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

List of Tables


Table 1-1: Summary of the Kusasalethu Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves) 1-8			2
Table 1-2: Summary of the Kusasalethu Mineral Reserves as at 30 June 2022 1-5			3
Table 1-3: Summary of Capital Cost Estimate for Kusasalethu			4
Table 1-4: Summary of Operating Cost for Kusasalethu			4
Table 1-5: Status of Environmental Permits and Licences			4
Table 2-1: QP Qualification, Section responsibilities and Personal Inspections			5
Table 3-1: Summary of Mining Rights for Kusasalethu			6
Table 5-1: Summary of Historical Ownership Changes and Activities of Kusasalethu Mine			9
Table 5-2: Summary of the Previous Kusasalethu Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)			10
Table 5-3: Summary of the Previous Kusasalethu Mineral Reserves as at 30 June 2021			10
Table 7-1: Summary of Drilling at Kusasalethu			24
Table 7-2: Drill Hole Acceptance Criteria			24
Table 8-1: Field QAQC Samples			29
Table 8-2: Summary of Analytical Quality Control Data			30
Table 8-3: Summary of Kusasalethu CRM Performance			31
Table 10-1: Average Head Grades of Samples			33
Table 10-2: Results for the CIP Tests			33
Table 11-1: Summary of the Gold Assay Descriptive Statistics			35
Table 11-2: Grade and CW Capping Parameters			37
Table 11-3: Harmony Economic Assumptions (30 June 2022)			38
Table 11-4: Summary of Kusasalethu Mineral Resource Estimate as at 30 June 2022 (exclusive of Mineral Reserves)1-8			42
Table 12-1: Kusasalethu Mineral Reserves Modifying Factors (30 June 2022)			45
Table 12-2: Kusasalethu Mineral Reserve estimate (30 June 2022)1-5			46
Table 13-1: Key Mine Design Parameters			51
Table 13-2: Mining Personnel and Functions (Paired Panels)			55
Table 13-3: Mining Personnel and Functions (Single Panels)			56
Table 14-1: Key Equipment Specifications at Mponeng Gold Plant			57
Table 14-2: Design Throughput Versus Actual Throughput at Mponeng Gold Plant			59
Table 14-3: Leaching Process Material and Properties			59
Table 14-4: Mponeng Plant Energy Requirements			59
Table 14-5: Consumables			60
Table 14-6: Mponeng Plant Personnel Requirements			60
Table 16-1: Material Contracts			71
Table 17-1: Status of Environmental Permits and Licences			74
Table 18-1: Summary of Capital Cost Estimate for Kusasalethu			76
Table 18-2: Summary of Operating Cost Estimate for Kusasalethu			76
Table 19-1: Conversion Rates used in Cash Flow			77
Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)			77
Table 19-3: Key Economic Assumptions and Parameters			79
Table 19-4: Kusasalethu Cash Flow			80
Table 19-5: Production Sensitivity Analysis			80
Table 19-6: Gold Price Sensitivity Analysis			80
Table 19-7: Total Operating Cost Sensitivity Analysis			80
Table 25-1: Other Specialists			87

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
°C			degrees Celsius
µm			Micrometres
2D			Two-dimensional
3D			Three-dimensional
AE			Abnormal expenditure
Ag			Silver
AAC			Anglo American Corporation
AMIS			African Mineral Standards
AngloGold Ashanti			AngloGold Ashanti Limited
Au			Gold
AuBIS			Harmony electronic database
Ave.			Average
BLR			Black Reef
BMD			Below mine datum
Bn			Billion
BP			Business plan
c.			Approximately
CIP			Carbon-In-Pulp
CLR			Carbon Leader Reef
cm			Centimetre
cmg/t			Centimetre-grams per tonne
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COP			Code of Practice
CRG			Central Rand Group
CRM			Certified Reference Material
CV			Coefficient of Variation
DMRE			Department of Mineral Resources and Energy
DWS			Department of Water and Sanitation
EIA			Environmental Impact Assessment
EMPR			Environmental Management Programme
EMS			Environmental Management System
EMTS			Electric Monorail Transport System
ESG			Environmental Social and Governance
Eskom			Eskom Holdings State Owned Company Limited
ETF			Exchange traded fund
EW-SX			Electro-wining solvent extraction
FX			Foreign Exchange rate
g			Gram
g/t			Grams per metric tonne
GDARD			Gauteng Department of Agriculture and Rural Development
GHG			Greenhouse gas
GISTM			Global Industry Standard on Tailings Management
ha			Hectare
Harmony			Harmony Gold Mining Company Limited
HPE			Hydro-powered
Kalgold			Kalahari Goldridge Mining Company Limited

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


kg			Kilogram
km			Kilometre
km2			Kilometre squared
Kusasalethu			Kusasalethu Gold Mine
kWh			Kilowatt-hour
LBMA			London Bullion Market Association
LDL			Lower detection limit
LIB			Long Inclined Borehole
LOM			Life of Mine
Ltd			Limited
m			Metre
M			Million
m3/hr			Cubic metres per hour
masl			Metres above sea level
MCC			Mining Charter Compliance
MCF			Mine Call Factor
Mineral Corporation			The Mineral Corporation (Pty) Limited
Mintek			Mintek SA - South Africa's national mineral research organisation
Moz			Million troy ounces
Mponeng			Mponeng Gold Mine
MPRDA			Mineral and Petroleum Resources Development Act, 28 of 2002
Mt			Million tonnes
Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
NEMA			National Environmental Management Act, 107 of 1998
No.			Number
NPV			Net present value
OK			Ordinary kriging
OTC			Over the counter
oz			Troy ounce
PFZ			Pretorius Fault Zone
PSD			Particle Size Distribution
Pty			Proprietary
QA/QC			Quality Assurance/Quality Control
QP			Qualified Person
ROM			Run-of-Mine
SACNASP			South African Council for Natural Scientific Professions
SAMREC			The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves
SANAS			South African National Accreditation System
Savuka			Savuka Gold Mine
SD			Standard Deviation
SEC			Securities and Exchange Commission
SGM			Sequential Grid Mining
SGS			SGS South Africa (Pty) Limited
SLP			Social Labour Plan
SMK			Simple macro kriging
t			Metric tonne
t/m3			Tonne per cubic metre
TauTona			TauTona Gold Mine

TRS			Technical Report Summary

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


TSF			Tailings Storage Facility
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
VCR			Ventersdorp Contact Reef
West Wits			Harmony's West Rand operations
WRG			West Rand Group
WUL			Water Use Licence
XRD			X-ray diffraction
ZAR			South African Rand
ZAR/kg			South African Rand per kilogram

Effective Date: 30 June 2022

xii


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Glossary of Terms


Term			Definition
Co-kriging			A method that is used to predict the value of the point at unobserved locations by sample points that are known to be spatially interconnected by adding other variables that have a correlation with the main variable or can also be used to predict 2 or more variables simultaneously.
Cut-off grade			Cut-off grade is the grade (i.e. the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Dilution			Unmineralized rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Harvest mode			The operational stage where a mining operation is nearing the end of its operations and the LoM Plan consists of high grade and low volume material.
Head grade			The average grade of ore fed into the mill.
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a Mineral Reserve.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Modifying Factors			Modifying factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include, but are not restricted to: mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product.
			(1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable.
			(2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is:
			(1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and
			(2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must:
			(i) Be either:
			(A) An organization recognized within the mining industry as a reputable professional association; or
			(B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field;
			(ii) Admit eligible members primarily on the basis of their academic qualifications and experience;
			(iii) Establish and require compliance with professional standards of competence and ethics;
			(iv) Require or encourage continuing professional development;
			(v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and
			(vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.
Tailings Freeboard			The vertical height between the beached tailings against the embankment crest and the crest itself.

Effective Date: 30 June 2022

xiv


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Person(s) (“QP”) of Harmony Gold Mining Company Limited (“Harmony” or the “Company”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Company’s Kusasalethu Mine (“Kusasalethu”). The TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, with an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature of this TRS.

Property Description

Kusasalethu is a deep underground gold producing mine located in the West Wits mining district southwest of Johannesburg in Gauteng Province. The mine is currently operating at depths ranging between 2,900m and 3,300m below mine datum (“BMD”) and extracting the Ventersdorp Contact Reef (“VCR”).

Kusasalethu holds a mining right that was successfully converted, executed, and registered as a new order mining right at the Mineral and Petroleum Resources Titles Office. The mining right, GP30/5/1/2/2/07 MR is valid from 18 December 2007 to 17 December 2037. Kusasalethu has, in terms of section 102 of the Mineral and Petroleum Resources Development Act (“MPRDA”) successfully combined the contiguous farms Buffelsdoorn 143IQ and Deelkraal 142IQ into the mining right which increased the extent from 5,100 hectares (“ha”) to 7,000ha.

All relevant underground mining and surface right permits, and any other permit related to the work conducted on the property have been obtained and are valid. There are no known legal proceedings (including violations or fines) against Harmony, which threaten its mineral rights, tenure, or operations.

Ownership

Kusasalethu is wholly owned by Harmony, including the associated mineral rights. Harmony acquired the mine from AngloGold Ashanti Limited (“AngloGold”) in 2001.

Geology and Mineralisation

Kusasalethu is located on the north-western margin of the Archean Witwatersrand Basin, one of the prominent gold provinces in the world. There are seven gold-bearing conglomerates within the mining right area, of which only the VCR is economically viable.

The VCR is a tabular, inclined, gold-bearing quartz pebble conglomerate of intermediate to high grade. It forms the base of the Ventersdorp Supergroup, which caps the Central Rand Group (“CRG”) of the Witwatersrand Supergroup via an angular unconformity. This reef is characterised by its palaeomorphology, where a thick reef is preserved in the form of terraces separated stratigraphically by a thin inter-terrace slope reef.

The Kusasalethu mining right area is also intruded by dolerite sills and syenite dykes of different ages (Manzi et al., 2015). Many of these dykes strike north to north–northeast with thicknesses that vary from 1m to 90m.

Status of Exploration, Development and Operation

Kusasalethu is a mature mine which has been in operation for over 40 years. The mine can be described as being in harvest mode or nearing the end of its life.

As the underground areas were accessed, platforms were generated for underground drilling.

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Kusasalethu has been allocated a capital amount of ZAR3.96m for exploration drilling of which ZAR1.40m will be carried over to the 2023 financial year (“FY”). For the purpose of this report, the exploration holes drilled in 2022FY have not been included in the geological modelling and Mineral Resource estimation, as the interpretations will only be finalised after completion of the project.

The drilling of exploration holes is limited by the availability of sufficient drilling platforms or development ends. This however has a marginal effect on estimation, due to the limited amount of development being done on the mine.

Mineral Resource Estimate

The current Mineral Resource estimate for Kusasalethu was generated using DatamineTM Studio 3 modelling software. The QP validated the Kusasalethu Mineral Resource model using visual comparisons with the raw drill hole data, comparisons of the raw drill hole data statistics with the model statistics, model volume, and visual assessment of the block model with drill hole intersections to ensure that the grades are locally honoured by the model. The QP did not identify any critical errors in the block model.

The QP compiling the Mineral Resource estimates is Mr J Ackermann, Ore Reserve Manager at Kusasalethu, who is employed by Harmony.

The Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Mineral Resource estimate, as at 30 June 2022, exclusive of the reported Mineral Reserves is summarised in Table 1-1.

Table 1-1: Summary of the Kusasalethu Mineral Resources as at 30 June 2022 (exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	0.990	13.03	12,906
Indicated	8.545	9.28	79,333
Total / Ave. Measured + Indicated	9.535	9.67	92,239
Inferred	2.025	8.85	17,927
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	1.091	0.380	0.415
Indicated	9.419	0.271	2.551
Total / Ave. Measured + Indicated	10.511	0.282	2.966
Inferred	2.232	0.258	0.576
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr J Ackerman, who is Ore Reserve Manager at Kusasalethu, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Mineral Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 1,042cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Mineral Reserve Estimate

The Mineral Reserves for Kusasalethu were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

The Mineral Reserve estimate is derived from the estimated Mineral Resources, a detailed business plan, and the monthly mine planning process at the operation. The mine planning process considers strategic plan directives, analysis of previous performance, as well as realistic productivity, and cost parameters.

The conversion of Mineral Resources to Mineral Reserves considers Modifying Factors which include dilution, ore losses, minimum mining widths, and the planned mined call factor. Mineral Reserves include the VCR only and are declared as ore delivered to the mills. The Mineral Reserve estimate, as at 30 June 2022, is summarised in Table 1-2.

The QP compiling the Mineral Resource estimates is Mr J Ackermann, Ore Reserve Manager at Kusasalethu, who is employed by Harmony.

Table 1-2: Summary of the Kusasalethu Mineral Reserves as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	1.313	6.97	9,153
Probable	0.031	6.84	210
Total (Proved + Probable)	1.343	6.97	9,363
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	1.447	0.203	0.294
Probable	0.034	0.199	0.007
Total (Proved + Probable)	1.481	0.203	0.301
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr J Ackerman, who is the Kusasalethu Ore Reserve Manager, and who is a Harmony employee.
2. Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the Mineral Reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. Mineral Reserves are reported using a cut-off grade of 1,100cmg/t determined using a gold price of USD1,546/oz gold.

In the QP’s opinion, Kusasalethu is an established operation, and the Modifying Factors used in the Mineral Reserve estimate have a reasonable basis and, at a minimum, would satisfy the confidence levels for a Pre-Feasibility Study.

The estimated Mineral Reserves were depleted to generate the Kusasalethu cash flows. The economic analysis of the cash flows displays positive results and are deemed both technically and economically achievable.

Capital and Operating Cost Estimates

The capital and operating cost estimates for Kusasalethu are reported in South African Rands (“ZAR”) terms, on a real basis. The capital cost estimate for Kusasalethu is determined at corporate level, using the business plan as a basis. The capital cost elements are abnormal expenditure (“AE”), infrastructure, and operating capital. The capital cost estimate is shown in Table 1-3.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 1-3: Summary of Capital Cost Estimate for Kusasalethu


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2024)
Abnormal Expenditure			62,419
Shaft Projects			9,710


Total			72,129

The operating cost estimate for Kusasalethu is categorised into direct and total costs. A summary of the Kusasalethu operating cost estimate is presented in Table 1-4.

Table 1-4: Summary of Operating Cost for Kusasalethu


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2024)
Mining			3,002,706
Services			544,547
Medical Hub / Station			104,208
Engineering			2,645,345
Workshops			24,398

Total Direct Costs			6,321,204
Mine Overheads			219,556
Royalties			34,111
Ongoing Capex			68,877
Total Cost			6,643,748

The capital and operating cost estimates are accounted for in the economic analysis for Kusasalethu.

Permitting Requirements

Kusasalethu has valid permits, administered and managed by various departments, and does not require any additional permits to continue with their mining operations, including the applications which have been submitted to amend the existing Environmental Management Programme (“EMPR”) and Water Use Licence (“WUL”). These have been approved by the regulator at the effective date of this TRS. The permits and licences are summarised in Table 1-5.

Table 1-5: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

EMPR

GP30/5/1/2/3/2/1(07) EM

DMRE

2018

LOM

Mining Right

GP30/5/1/2/2 (07)MR

DMRE

2018

LOM

Water Use License

08/C23J/AJFG/1019

DWS

2018

2040

Note: LOM - Life of mine

Conclusions

Kusasalethu is a deep level gold mine in harvest mode and has three years remaining in its life of mine (“LOM”). Under the assumptions in this TRS, Kusasalethu’s cash flow shows a negative result for year 1, however the aggregate results of the economic analysis for the mine life are positive. This overall positive cash flow over the LOM supports the Mineral Resource and Mineral Reserve estimates. The mine plan is achievable under the set of assumptions and parameters used.

Recommendations

No recommendations are in place due to the short LOM remaining at Kusasalethu.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

2Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS on Kusasalethu has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the U.S. SEC Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 - Technical Report Summary. The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand Kusasalethu, which forms part of Harmony’s activities.

This TRS has been prepared from the following sources of information:

•Competent Persons Report (Ore Reserve Statement for period ended 30 June 2022, Technical Report for Kusasalethu Gold Mine) (prepared by Mr J Ackermann) dated 30 June 2022;

•the 2021 and 2022 Harmony Corporate Business Plan; and

•published Harmony 2022 Mineral Resources and Mineral Reserves Report as at 30 June 2022 (“HAR-RR22”).

The TRS was prepared by Qualified Persons (“QPs”) employed on a full-time basis by the registrant. The QPs qualifications, areas of responsibility and personal inspection of the property are summarised in Table 2-1.

Table 2-1: QP Qualification, Section responsibilities and Personal Inspections

Qualified Person

Professional Organisation

Qualification

TRS Section Responsibility

Personal Insp.

Mr. JD Ackermann

SAIMM

BSc (Geol)

1, 2, 3, 4, 5, 7, 11, 12, 13, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25

Full time

Mr. M Hopwood

CIMA

BCom (Hons) Management Accounting; ACMA/CGMA

16, 18, 19

Full time

Ms S v Huyssteen

None

BA Environmental Management

Full time

Mr. JJ Le Roux

None

BSc Hons (Geol)

6,7,8

Full Time

Mr. GJ Nagel

None

MBA, GDE Mining Engineering

Full time

This TRS is the first filing of such a document with the SEC and has an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

3Property Description and Location

Section 229.601(b)(96) (3) (i-vii)

Kusasalethu is a deep level gold mine, operating at depths ranging between 2,800m and 3,300m, located in the West Wits mining district, Gauteng Province. At longitude 27°21'32.91"E and latitude 26°27'16.23"S, the mine is approximately 70km southwest of Johannesburg and 15km south southwest of Carletonville and forms part of Harmony's West Rand (“West Wits”) operations. The location of Kusasalethu and its relative proximity to the other West Wits operations is shown in Figure 3-1.

3.1Mineral Tenure

A single mining right covers Kusasalethu which was successfully converted, executed and registered as a new order mining right at the MRTO. The principal mining right (GP30/5/1/2/2/(07) MR) covers an area of 7,000 hectares (“ha”) for the mining of gold. This mining right was granted on 18 December 2007 and, unless cancelled or suspended, will continue in force for 30 years ending 17 December 2037.

A section 102 application was submitted in 2018 to combine the contiguous farms Buffelsdoorn 143IQ and Deelkraal 142IQ, which increased the extent of the original mining right from 5,100ha to the current 7,000ha. The Kusasalethu mining right is shown in Figure 3-2 and detailed in Table 3-1.

Table 3-1: Summary of Mining Rights for Kusasalethu

Licence Holder

Licence Type

Reference No.

Effective Date

Expiry Date

Area (ha)

Kusasalethu Mine

Mining Right

GP30/5/1/2/2(07) MR

18-Dec-2007

17-Dec-2037

7,000

Under the MPRDA, Harmony is entitled to apply to renew the mining right on its expiry. There are no known legal proceedings (including violations or fines) against the Company which threatens its mineral rights, tenure, or operations.

3.2Property Permitting Requirements

All relevant underground mining and surface right permits, and any other permit related to the work conducted on the property have been obtained and are valid, including the applications which have been submitted to amend the existing EMPR and WUL. These have been approved by the regulator at the effective date of this TRS.

The surface rights in the Kusasalethu area were previously held by AngloGold and were acquired by Harmony in 2001. The surface mining right and surface right areas are sufficient in size and nature to accommodate the required surface infrastructure to facilitate current and planned mining and processing operations.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 3-1: Location of Kusasalethu

Figure 3-2: Legal Tenure of Kusasalethu

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

4Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

4.1Accessibility

Kusasalethu is situated adjacent to the N12 national road (Figure 3-1) and can be reached via tarred roads to all main access points. Access to the mine is restricted by security fencing, security guards, booms and lockable gates at the main entrance. In addition, a communication system and access control system monitors personnel entering and leaving the mine property.

4.2Physiology and Climate

Kusasalethu is situated approximately 1,640 metres above sea level (“mamsl”) within the Highveld region of South Africa. The surrounding area is characterised by undulating plains interspersed by rocky peaks. A prominent rock ridge known as the Gatsrand extends from the eastern extent to the western extremity forming a watershed.

The mine falls within the Highveld climatic zone, which is characterised by warm temperatures, dry winters and summer rainfall. The average annual rainfall recorded at the operation, based on recorded data between 2015 and 2018 was 698mm. Heavy thunderstorms occur between November and February.

Temperature patterns are characterised by seasonal and daily variations, where summers are warm to hot, and winters are mild to cold. The seasonal fluctuations in mean temperatures between the warmest and the coldest months vary between 12°C and 15°C. The month of June is generally the coldest month with lowest recorded temperatures of an estimated -2°C while the maximum recorded temperature of 37°C generally occurs in February. Windy months occur between August and November.

The Kusasalethu operation is not restricted by climatic or seasonal occurrences.

4.3Local Resources and Infrastructure

Kusasalethu comprises a twin-shaft system with two surface vertical shafts and two vertical sub-shafts. Ore is hoisted to surface and is delivered to the plant by road. Although Kusasalethu has its own processing plant situated adjacent to the mine, this plant does not treat the mine’s ore. Operations are powered by electricity from Eskom Holdings State Owned Company Limited.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

5History

Section 229.601(b)(96) (5) (i-ii)

5.1Historical Ownership and Development

Kusasalethu was previously known as Elandsrand Gold Mine when it was owned by AngloGold. The shaft system (i.e., the vertical twin shaft) together with the gold plant were commissioned in 1978.

In 2001, Harmony took control and ownership of Elandsrand Gold Mine and Deelkraal Gold Mine from AngloGold. The name Elandsrand was changed to Kusasalethu in 2010.

Kusasalethu is part of the West Wits mining district that includes the former Western Deep Levels shafts which include the Mponeng, TauTona and Savuka mines, all now also 100% owned by Harmony. The historical ownership and associated activities related to Kusasalethu are summarised in Table 5-1.

Table 5-1: Summary of Historical Ownership Changes and Activities of Kusasalethu Mine


Year			Asset History Highlights
1975			AAC commenced construction of the original twin shaft system and the gold plant complex in the southern part of the lease area.
1978			The vertical twin shaft system and the gold plant was commissioned down to 2,195m.
1984			A sub-vertical shaft down to 3,048m was commissioned that enabled development and production of the VCR.
1995			AAC approves project to deepen the mine’s shaft system from 3,048m to 3,388m BMD.
1998			AngloGold Ashanti Limited was formed through the merger of the gold interests of AAC and its associated companies.
2001			Harmony acquires the Kusasalethu and Deelkraal mines from AngloGold.
2010			Elandsrand changed name to Kusasalethu Mine.
2014			Old portions of Kusasalethu Mine suspended in order to restructure the mine. Subsequently, mining above 98 level ceased.
2015			A revised and shortened LOM was implemented due to the decrease in the Mineral Reserve, for mining over five levels from 98 level to 113 level.
2018			Section 102 approved for to adding Buffelsdoorn 143IQ and Deelkraal 142IQ to mining right.

5.2Historical Exploration

Exploration work on the Kusasalethu mining right area commenced in the early 1940s as part of the Western Deep Levels evaluation programme. The work was initially limited to surface platforms, where an extensive surface exploration programme was conducted across the Western Deep Levels leases by AAC. As the underground areas were accessed, more platforms were generated, and underground drilling conducted. When shaft sinking began in January 1975, a total of 16 surface drill holes had been drilled with VCR gold values ranging from 21cmg/t to 6,517cmg/t.

Surface core drilling and a historical geophysical seismic survey was used to define the ore body across the West Wits area and identified major structures that define the margins of the reef blocks upon which the mine is designed.

The last surface exploration programme at Kusasalethu took place from 1985 to 1991, during which 116 boreholes were drilled from surface by means of 15 mother holes, to complement and enhance the geological confidence levels of the areas of interest, situated to the south of the current mining area. The area of interest was prospected for the economic potential of deepening the project, with the exploration drilling reaching depths of up to 3,833m.

5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous in-situ Mineral Resource estimate for the VCR horizon at Kusasalethu was declared as at 30 June 2021, according to the SAMREC Code, 2016. The Mineral Resource was estimated using mixed support co-kriging, a technique that allows both drill hole and underground sampling data to be used together.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

The previous Mineral Resource estimate is summarised in Table 5-2, is exclusive of Mineral Reserves and has been superseded by the current estimate prepared by Harmony in Section 11 of this TRS.

Table 5-2: Summary of the Previous Kusasalethu Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	1.863	11.57	21,551
Indicated	12.373	9.09	112,511
Total / Ave. Measured + Indicated	14.236	9.42	134,062
Inferred	3.698	8.63	31,903
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	2.054	0.337	0,693
Indicated	13.639	0.265	3,617
Total / Ave. Measured + Indicated	15.693	0.275	4,310
Inferred	4.076	0.252	1,026

The previous Mineral Reserve estimate for the VCR horizon was also declared as at 30 June 2021 in accordance with the SAMREC Code, 2016. Modifying Factors were applied to the in situ Mineral Resource to arrive at the Mineral Reserve estimate. These factors included a dilution to accommodate the difference between milling width and stoping width, as well as the Mine Call Factor (“MCF”). The previous Mineral Reserve estimate is summarised in Table 5-3 and has been superseded by the current estimate prepared by Harmony as detailed in Section 12.3 of this TRS.

Table 5-3: Summary of the Previous Kusasalethu Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proven	1.883	7.51	14,143
Probable	0.280	4.76	1,334
Total / Ave. Proven + Probable	2.163	7.15	15,477
IMPERIAL
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	2.076	0.219	0,455
Probable	0.309	0.139	0,043
Total / Ave. Proven + Probable	2.385	0.209	0,498

5.4Past Production

Kusasalethu’s production over the past five years is provided in Figure 5-1 and Figure 5-2. Kusasalethu is currently in steady state, with a long operational history.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 5-1: Graph of Past Production– Tonnes and Grade

Figure 5-2: Graph of Past Metal Production

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii)

6.1Regional Geology

Kusasalethu is located on the northwestern margin of the Archean Witwatersrand Basin, one of the most prominent gold provinces in the world. The Witwatersrand Basin is an approximately 7,000m thick terrigenous sequence comprising mainly arenaceous and argillaceous, together with minor rudaceous, lithologies deposited in a fluvio-deltaic environment in the centre of the Archaean Kaapvaal Craton of South Africa (Robb and Meyer, 1995). The regional geology of the Witwatersrand Basin is shown in Figure 6-1.

The Witwatersrand Supergroup is subdivided into the basal West Rand Group (“WRG”) and overlying CRG (Robb and Robb, 1998). The WRG extends over an area of 43,000km2 and is up to 5,150m thick. It is sub-divided in three subgroups, namely, from bottom upwards, the Hospital Hill Subgroup; Government Subgroup and Jeppestown Subgroup. The stratigraphic succession of the WRG mainly consists of shale sediments, with occasional units of banded iron formation and conglomerate. The CRG is up to 2,880m thick and covers an area of up to 9,750 km2, with a basal extent of 290km x 150km. It is sub-divided into the lower Johannesburg Subgroup and upper Turffontein Subgroup as shown in Figure 6-2. These subgroups are separated by the Booysens Shale Formation. The stratigraphic succession of the CRG comprises coarse-grained fluvio-deltaic sedimentary rocks.

The major gold bearing conglomerates are mostly confined to the CRG, and these conglomerate horizons are known as reefs. The most important reefs within the CRG are at six stratigraphic positions, three within the Johannesburg Sub-group and three within the Turffontein Sub-group. The reefs are mined in seven major goldfields, and a few smaller occurrences, which extend for over 400km in what has been called “The Golden Arc”. This arc is centred on the prominent Vredefort Dome, as shown in Figure 6-1, which is thought to be a major meteorite impact site in the centre of the Witwatersrand Basin (Therriault et al., 1997). The goldfields, as shown in Figure 6-1, include: East Rand, South Rand, Central Rand, West Rand, West Wits, Klerksdorp, Free State (Welkom), and Evander.

6.2Local Geology

Kusasalethu is located within the West Wits Goldfield as shown in Figure 6-1. The general orientation of the Witwatersrand Supergroup succession in this goldfield is interpreted as west-southwest-trending and south-southeast dipping (Dankert and Hein, 2010).

The north-northeast-trending Bank Fault and the bedding sub-parallel Master Bedding Fault are the main faults identified in this area of the goldfield (Dankert and Hein, 2010). The Bank Fault is described as a west-dipping reverse fault that was reactivated as a normal fault. The Master Bedding Fault, which hosts brecciated and mylonite rock fragments, is described by various scholars as a 1m to 50m wide fault zone that is sub-parallel to bedding.

Kusasalethu mainly exploits the VCR, a tabular inclined gold-hosting horizon which is located at the top of the CRG (Figure 6-2), capping the Witwatersrand Supergroup (Figure 6-3). Extrusion of the overlying lavas of the Ventersdorp Supergroup halted the deposition of the VCR, preserving it in its current state.

The VCR was deposited on the uneven footwall strata due to uplift and is now represented by a shallow angular unconformity. An east–west cross section is presented in Figure 6-4. The footwall lithologies to the VCR therefore vary across Kusasalethu as the unconformity cuts deeper in an easterly direction into older strata of the Witwatersrand Supergroup.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 6-1: Regional Geology of the Witwatersrand Basin

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 6-2: Stratigraphy of the CRG in the Witwatersrand Supergroup
Source: Modified after Tucker et al. (2016)

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 6-3: Simplified Stratigraphy of the West Wits Goldfield
Source: Adapted from Manzi et al. (2015)

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 6-4: Cross Section Through Kusasalethu

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

6.3Property Geology

The VCR is continuously developed across the entire Kusasalethu mining area and dips at approximately 22° in a south southeast direction.

At Kusasalethu, the CLR strikes west-southwest and dips to the south at approximately 25° and lies 900-1,300m stratigraphically deeper than the VCR. Therefore, it occurs too deep to allow mining from current infrastructure. In addition, it is lower in grade than elsewhere in the goldfield. Consequently, the VCR is the only reef currently exploited at Kusasalethu.

The Middlevlei Reef, which occurs approximately 50m to 75m above the CLR, is the most important secondary reef within the Far West Rand. Other secondary reefs also occur in the area, the most significant being individual bands within the Mondeor Conglomerate Reef Zone that sub-crop beneath the VCR at Deelkraal Mine and on the western side of Kusasalethu.

6.3.1VCR Lithology

The VCR consists of a quartz pebble conglomerate, reaching up to 3m thick in places. A well-developed VCR facies model exists at Kusasalethu and is based on the terrace-slope model. The VCR is thought to have been degradational and eroded into its footwall during successive periods of deposition. This resulted in preserved terraces of deposition on various palaeotopographic elevations, separated by areas predominantly erosional in nature. The latter are characterised by either preservation of a thin conglomerate lag, or non-deposition, known as slopes. On the terraces, mineralised conglomerates typical of Witwatersrand type reefs are preserved, while in the slope areas there may be a narrow pebble lag preserved, or a complete lack of conglomerate developed.

Nine facies types have been recognised on Kusasalethu; eight sedimentological and one structural. Facies types are distinguished by sedimentological criteria such as pebble type and assemblage, pebble packing, textural relationships, maturity, amount of internal quartzite and sedimentological structures. Each facies type also has a characteristic grade and thickness profile.

There are four terrace-type facies identified:

•Terrace Complex 1: a massive to planar crossbedded oligomictic conglomerate, with scattered small internal lenses of quartzite, and quartzite cappings. The pebble assemblage consists of milky and smoky quartz and gold found within any portion of the reef;

•Terrace Complex 2: consisting of lower, middle and upper conglomerate units. The lower unit shows extensive interdigitation of polymictic, matrix supported conglomerates, pebble supported, pebble lags and crossbedded quartzites. The pebble assemblage consists of milky and smoky quartz pebbles and green shale clasts. The facies is characterised by its lime and apple green internal quartzites. Gold occurs predominantly in channel lags;

•Terrace Complex 4: a massive conglomerate consisting of mainly milky quartz pebbles, which can either be matrix or pebble supported. This lower conglomeratic unit grades into mainly a quartzitic unit with gritty bands and occasional pebble lags. This is overlain by an apple green massive quartzite. Gold concentration occurs mainly within the lower conglomerate unit and along scours in the upper conglomerate unit; and

•Terrace Complex 5: This complex comprises three to ten upward fining cycles with erosional basal contacts. Each cycle starts at the base with a basal leg, a thin oligomictic matrix supported conglomerate or pebble supported conglomerate. The pebble assemblage consists of chert, smoky and milky quartz. Gold occurs within the basal conglomerate and the basal scours of each stacked cycle.

A further set of non-terrace-type facies includes:

•Sand Filled Channel: a thin basal conglomerate with thick, grey and white, trough crossbedded quartzite capping;

•Slope Reef: a single pebble lag or with no conglomerate developed;

•Sandy Terrace Complex 2: a pebbly quartzite with a very low conglomerate percentage;

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

•Mondeor Conglomerates or Elsburg reef: a matrix to clast supported conglomerate with lenses of internal quartzite. The conglomerate grades laterally to pebbly quartzite, it consists of chert (5% to 10%) and quartz pebbles in a yellow-green quartzite matrix; and

•Duplicated Reef: a structural facies caused by low angle, bedding parallel thrust faulting on the reef horizon. Encompasses both duplicated and eliminated reef bands, within any of the above-mentioned facies types.

6.3.2Structure

The structural geology plan for the VCR is presented in Figure 6-5. Major faults at Kusasalethu were interpreted from historical seismic data and using information from surface drill holes. These major faults define the margins of some of the reef blocks, as well as the preliminary contoured surface of the reefs.

There are a series of east-trending, north-dipping normal faults with throws of up to 40m and a series of north-northeast-striking normal faults with generally smaller displacements in the northwest. These faults have a general dip of 75°. The Kit Tims and De Twem faults are examples of these normal faults. The original displacements on these faults are occasionally increased as a function of subsequent post-Bushveld displacement, but overall faulting is much less prevalent than it is in other Witwatersrand goldfields.

The Kusasalethu mining right is also intruded by dolerite sills and syenite dykes of different ages (Manzi et al., 2015). Many of these dykes strike north to north–northeast with thicknesses that vary from 1m to 90m. The prominent dykes are the Cobra, BV 78, Hammer, Grass, Wuddles, CAD, Bounder, Rogue, Rubble, Kent, Pink, Eastern Oberholzer and the Eastern Oberholzer 2.

Kusasalethu mines in blocky ground created by these dykes and faults, which are fairly basic in composition.

Faults and dykes can be classified according to their relative geological ages, as follows:

•pre-VCR structures including faults and dykes observed in the footwall with throws that do not affect the reef horizon, and are thus pre-Ventersdorp age such as the Fred, Alex and Ash dykes;

•low angle, bedding-parallel reverse and thrust fault systems that affect both the footwall units, and the VCR reef horizon are interpreted as being Bushveld or Vredefort age, from similar structures documented in literature. Vertical throws are usually no more than 2-5m, but lateral displacements can be up to several hundred metres; and

•Pilanesberg structures are the youngest features and have a NE-SW trend. They have intruded along pre-existing late Ventersdorp-age dykes and are thus usually multi-phase or bi-model intrusives. Throws are normal, typically 5 to 20m down to the NW e.g., Eastern Oberholzer and Wuddles dykes.

6.4Mineralisation

The fluids precipitated gold and other elements through reactions that took place at elevated temperatures along the reef horizons, which was the more favourable fluid conduit. In the case of the VCR, the resulting gold grades are mostly uniformly distributed throughout the reef package.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 6-5: Kusasalethu VCR Geological Structure Plan

6.4.1VCR Mineralisation

The VCR is dominated by silicate phases such as quartz (~60%), chlorite (~10%), muscovite (~5%) and zircon (~1%), as well as sulphide phases such as pyrite, pyrrhotite and chalcopyrite (~10 %). The pyrrhotite/pyrite relationship is thermally related to prograde metamorphism often associated with the extrusion of the lavas of the Ventersdorp Supergroup.

6.4.2Alteration

6.5Deposit Type

The Kusasalethu deposit is classed a meta-sedimentary gold deposit. Folding and basin edge faulting have been important controls for sediment deposition and gold distribution patterns within the Witwatersrand Basin and fold trends have been employed in the economic evaluation of various reef horizons.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

6.6Commentary on Geological Setting, Mineralisation and Deposit

The geological setting, mineralisation model and deposit types are well established at Kusasalethu, as a result of continuous exploration and mining activities over several decades. These geological interpretations and models form the basis of the Mineral Resources estimates for the VCR.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

7Exploration

Section 229.601(b)(96) (7) (i-vi)

Exploration at Kusasalethu has mainly focused on improving confidence in the geological model, as well as adding and upgrading additional Mineral Resources to the mine to replace depletion. Geological data has been obtained through underground channel (chip) sampling, underground mapping and underground drilling. The close spaced underground data gathering was preceded by a surface geophysical seismic survey, as well as surface diamond core drilling. Exploration from underground platforms continues to improve geological confidence for the VCR.

7.1Geophysical Seismic Survey

The Kusasalethu area was included in a three dimensional (“3D”) seismic reflection survey conducted by AAC in 1993. The 3D survey was conducted by Compagnie Générale de Géophysique, covering an area of approximately 300km2 (Manzi et al., 2015). The objective of the survey was to delineate the sub-surface formations above and below the VCR and CLR horizons, at depths ranging from 2.7km to 4.2km.

The data obtained from the survey was processed by Velseis Processing Pty Limited, successfully delineating the entire stratigraphy from surface through the Ventersdorp Supergroup to the base of the Witwatersrand Basin (~11km in depth) including the VCR (Figure 6-3). This enabled AAC to better understand the structural characteristics of the VCR at depths between 2.5km and 3.5km below surface. The CLR was not detected due to its relatively thin nature and association with quartzitic units which have unfavourable characteristic for seismic contrast.

In 1994, AAC interpreted the results of the survey using Geophysical AIS-3DTM software which was further enhanced using exploration drill core and VCR mappings from sub-shaft intersections. The interpretation together with the new data allowed for the bulk shift of all interpreted data of about 42m.

Additional analysis and interpretation of the dataset was undertaken in 1997 using the GeoQuestTM software. The results improved confidence in the geological planning at the then Western Deep Levels, particularly the positioning of the VCR at the sub-outcrop of the Kimberley Quartzite.

No further surveys and interpretations have been undertaken on Kusasalethu.

7.2Topographic Surveys

No topographic survey has been completed in the past, and in the opinion of the QP, these surveys are not necessary as the information in this TRS relates to an underground operation.

7.3Underground Mapping

Underground mapping is undertaken for grade control purposes, and in order to obtain geological information to support the updating of Kusasalethu’s geological model.

Face and reef development mapping is undertaken by a team comprising two or more personnel, including a geologist. Face tapes are setup along gullies and the stope face and oriented with reference to the latest survey pegs installed in the workplaces. Reef positions, lithological descriptions, the presence of faults or dykes, and other pertinent geological information is collected and measured relative to the reference tapes. The information is captured in a notebook. The primary scale of mapping is 1:200, however other scales are acceptable as long as the required detail can be depicted i.e., 1:20 or 1:50 profiles or 1:500.

Once at surface, the geologist transfers the information from the notebook into the geological mapping system, where a mapping report is produced for each mapped workplace. Data from the mapping is also incorporated into the geological models.

Approximately 80-90% of all workplaces are inspected by members of the Geosciences team on a monthly basis to ensure that suitable mapping information coverage is achieved. The primary focus on Kusasalethu is the mapping of the reef raises.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

7.4Channel Sampling Methods and Sample Quality

Channel sampling is used to provide local grade and thickness points of observation for both grade control and the Mineral Resource estimates.

Channel sampling of underground panels, blasted on monthly basis, is conducted perpendicular to the channel contact across the exposed channels. The section lines demarcating the width of the sample are drawn parallel to the reef waste contact while those demarcating the length of the sample are drawn at right angles to the reef waste contact and are marked 10cm apart. The samples are chipped out between these section lines.

Sampling of the VCR channel is undertaken at the advancing face on a grid spacing of 6m x 6m. The channel sampling is undertaken by a sampler and several assistants. The sampling process is audited monthly and annually by the Geoscience Manager.

The location of samples collected from the VCR to date is shown in Figure 7-1.

7.5Surface Drilling Campaigns, Procedures, Sampling, Recoveries and Results

Most of the surface drill holes used in the estimation of the current Mineral Resources, as well as those drilled on adjacent properties, such as Mponeng, Savuka and TauTona mines, were drilled by AAC and AngloGold before Harmony acquired the mine. The drill holes were completed using the diamond core drilling method. The reader should note that no holes have been drilled from surface since Harmony’s acquisition of the mine in 2001.

The location of the channel samples, as well as underground drillholes and surface drill holes intersecting the VCR on Kusasalethu is shown in Figure 7-1.

7.5.1Drilling Methods

The surface diamond core drilling has been undertaken using a thin-walled core barrel (TNW size core barrel) that delivers NQ (47.6 mm) core. No information on the drill rig types used to complete the surface drilling was available as they pre-date Harmony’s involvement and were drilled over 20 years ago.

The drill grid spacing of the surface drill hole intersections is up to 1,000m, and is often required to be complemented by underground drill hole intersections. The accuracy of the surface drilling intersection positions from drill holes that are from 2,500m to 4,000m in depth is the major limiting factor of actually achieving a planned grid spacing. Long surface drill holes often deflect and controlling the direction over that depth has always been challenging in the South African gold mining context.

7.5.2Collar and Downhole Surveys

The drill holes used for reef delineation at Kusasalethu are surveyed to confirm both collar position and trajectory. Drill hole collar and downhole surveys are conducted on all surface drill holes. Collar positions are surveyed by the internal Land Survey Department.

Downhole surveying is conducted using Electronic Multi-shot System and non-magnetic north seeking Gyro tools as supplied by a certified and specialised downhole survey company. Additional downhole surveys are conducted on all long inclined boreholes (“LIB”) and long vertical boreholes (“LVB”) for verification purposes, and the results are submitted together with the primary survey data used to determine the drill hole trajectories.

All records received from the survey company are checked for accuracy and then captured and stored in the electronic databases.

7.5.3Logging Procedures

No core photography is undertaken.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 7-1: Location of Samples Collected from the VCR to Date

Drill core logging is quantitative and qualitative. The following information is recorded:

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and alteration.

Observations are captured on the diamond drilling database by geologists. The logs are checked by the Senior Geologist prior to sampling.

7.5.4Drilling Results

A total of 2,787 surface holes have been drilled, totalling 50,460m. The VCR surface drilling results are too voluminous to be presented in the TRS. The results have, however, been included into the geological modelling and Mineral Resource estimation process.

A summary of the drilling, by year is presented in Table 7-1. The drill holes have been drilled to a maximum depth of 3,833m below surface.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 7-1: Summary of Drilling at Kusasalethu


Period	Company	No. Holes	Surface (m)	Underground (m)
1962 - 1979	Boart Longyear	84	9,898	5,310
1980 - 1989	Boart Longyear	810	37,820	40,997
1990 - 2001	Boart Longyear	1,002	2,742	57,977
2002 - 2009	Lesedi	427	0	21,310
2010 - 2022	Rosond	523	0	31,660
Total		2,846	50,460	157,254

7.5.5Core Recovery

Reef intersection “acceptability” is categorised according to the criteria set out in Table 7-2. Geological acceptability of drill hole intersections is determined by geologists based on, amongst others, drill core condition and faulting. The acceptability is verified for each reef intersection before the assay results are used for Mineral Resource estimation. Where possible, precautions were taken by the drilling contractors to utilise core barrels to ensure maximum recovery.

Table 7-2: Drill Hole Acceptance Criteria


Category			Comment
Acceptable			100% core recovery in the reef zone, or very minor loss due to reef chipping. No evidence of faulting within the reef horizon or at either contact with hanging wall or footwall lithologies.
Minimum value			Light to moderate disking of core in the core barrel due to drilling and/or ground conditions. Visual observations indicate that the conglomerate portion of the reef is usually more prone to disking, resulting in possible gold loss.
Faulted minimum value			If the fault loss is considered to be minor, this term may be used if the geologist is certain that only low-value internal quartzite is missing from the intersection.
Not acceptable			Heavy disking of core which may indicate core loss, partial known core loss due to grinding. Also faulting of any description within the reef zone.

In accordance with available historic data, an average core recovery of 95% was achieved for surface drilling.

7.5.6Sample Length and True Thickness

7.6Underground Drilling Campaigns, Procedures, Sampling, Recoveries and Results

Underground exploration drilling has been on-going throughout the operational life of Kusasalethu. Most of the underground drill holes used in the estimation of the current Mineral Resources were drilled by AAC and AngloGold before Harmony acquired the mine.

The underground exploration strategy adopted to address the geological structure and reef locations at Kusasalethu includes the following:

•definition drilling aiming for a 100m to 200m drilling grid for optimal placement of primary haulage and crosscut development; and

•infill drilling from haulages and crosscuts at a 100m to 30m drilling spacing which is used for placement of secondary development and understanding reef existence and quality.

More drilling may be required in more complex areas and areas beyond the 200m drill spacing where geological definition is limited.

The location of the channel samples, as well as underground drillholes and surface drill holes intersecting the VCR on Kusasalethu is shown on Figure 7-1. The underground exploration drill holes vary in length depending on the target position and ground conditions, but can have a length of up to 1,500m.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

7.6.1Drilling Methods

Two types of underground drilling methods are used at Kusasalethu.

The first method involves drilling of LIB or LVB, which are drilled up to 1,500m in length. These are angled at between 0° - 90°. These drill holes are drilled using a powerful hydraulic machine to improve depth penetration and core recovery. The core sizes used for reef intersections are BX (42.0mm) or BQ (36.5mm).

The second underground method is infill diamond core drilling, which is undertaken using small hydraulic and pneumatic drill rigs. The core size used for reef intersections is AXT (35.5mm).

7.6.2Collar and Downhole Surveys

The drill holes used for reef delineation at Kusasalethu are surveyed to confirm both position and trajectory. Drill hole collar and downhole surveys are conducted on LIBs/LVBs, as well as on the majority of the exploration drill holes drilled on the mine.

Underground drill hole collars are checked against layouts issued to diamond drilling contractors and confirmed by offsets taken underground in the workplaces.

Downhole surveying is conducted using Electronic Multi-shot System and non-magnetic north seeking Gyro tools as supplied by a certified and specialised downhole survey company. Additional surveys are conducted on all LIB/LVB drill holes for verification purposes, and the results are submitted together with the primary survey data used to determine the drill hole trajectories.

All records received from the survey company are checked for accuracy and then captured and stored in the electronic databases.

7.6.3Logging Procedures

Logging procedures are conducted as per the Harmony company standards, which have been in place since Harmony took over Kusasalethu in 2001. Upon arrival at the on-site core yard. Drill core is marked at every meter interval. The core is then orientated so that the low point of bedding is coincident with the edge of the angle iron.

The cut line is defined by the low point of the bedding at the base of the reef zone, when viewed as per convention, from left to right in the direction of increasing depth, is drawn parallel to the core. The core is then rotated through 90° and a yellow line was then drawn parallel to the core, to define the retention half core. Logging and sampling is done by the Kusasalethu geologists. Manual core logging is done on the mine and the logs are kept on hard copy. No core photography is undertaken.

Drill core logging is quantitative and qualitative. The following information is recorded:

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and alteration.

Observations are captured on the diamond drilling database by geologists. The logs are checked by the Senior Geologist prior to sampling.

7.6.4Drilling Results

The VCR surface drilling results are too voluminous to be presented in the TRS. The results have, however, been included into the geological modelling and Mineral Resource estimation process. The underground drilling is summarised, by year, in Table 7-1.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

7.6.5Core Recovery

Where possible, precautions are taken by the drilling contractors to utilise core barrels to ensure maximum recovery. Reef intersection “acceptability” is categorised as per the criteria summarised in Table 7-2.

A core recovery of 99.9% for underground drilling, with losses on underground holes primarily caused by chipping. There were minimal holes that were faulted or diced during underground drilling.

7.6.6Sample Length and True Thickness

7.7Hydrogeology

Various studies have been conducted at Kusasalethu on hydrogeology and geochemistry, in line with Water Use License (“WUL”) requirements. Phase I of the study comprised an assessment of the regional groundwater use and field investigations to collect data on the groundwater regime. The information gathered during this phase was incorporated into Phase II of the study, which assessed and quantified the impacts over time with the aid of a numerical groundwater model.

For each phase of the hydrogeological study, investigative/monitoring boreholes are drilled to supplement the existing monitoring programme, and in line with recommendations by independent Specialists that were appointed with each phase. The most recent hydrogeological study was done in 2021, which started with the updating of the numerical groundwater flow and mass transport model for Kusasalethu mine.

As part of the study, eight additional groundwater monitoring boreholes were drilled and will be incorporated into the existing groundwater monitoring programme. As part of the 2021 hydrogeological study, two quaternary catchment groundwater monitoring localities were included.

7.8Geotechnical Data

Geotechnical data is gathered independently by the Rock engineering manager. This data is derived by taking samples from exploration boreholes for especially uniaxial compressive tests bi-annually.

7.9Commentary on Exploration

Surface drilling was used as the initial exploration drilling, and this was later infilled to provide sufficient detail for geological modelling and Mineral Resource estimation. The underground infill drilling system is in place to improve data density in specific areas and are drilled from the underground development access drives. Drilling and logging practices are based on the Harmony company standards, which have been in place since Harmony took over Kusasalethu in 2001. The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to support the estimation of Mineral Resources and Mineral Reserves.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

8Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

This section summarises information relating to the sample preparation on site through to the laboratory preparation and analysis.

8.1Sampling Method and Approach

Sample types used to support both production and geological exploration include diamond drill core samples and channel (chip) samples. Sampling is carried out in accordance with the Harmony’s internal sampling procedure guidelines, which have been in place since 2001.

8.1.1Channel Samples

A standard practice for the sampling of stopes and development ends is required to ensure quality of sampling information and safety in its collection. Channel sampling is undertaken by a sampler, according to industry best practice, as well as the internal Underground Sampling Procedure.

Samples are chipped, using a standard chisel and mallet, from the advancing face from within clearly measured and marked channel sections, including the 2cm hanging wall and footwall width. The samples are individually chipped out to an even depth (1 to 2cm to replicate the same amount of sample as would be recovered from half BX core), commencing from the bottom sample. The remainder of the samples are chipped in succession up the face. Contamination of samples is reduced to a minimum by starting at the bottom.

Samples are taken from underground by the samplers and delivered to the mine surface, where they are later collected by the laboratory. All inter-person transfers are recorded. This process continues until the samples are delivered to the laboratory, where the chain of custody form is signed evidencing the date and time of sample receipt.

An adequate mass of each sample is collected (±300g) to allow sufficient sized aliquots to be analysed at the designated laboratory. Underground chip sampling is subject to a mass measurement versus theoretical mass analysis.

8.1.2Core Samples

Diamond drilled core is transported in sealed core boxes to the secured storage facility in the Geology office, under the supervision of a Senior Geologist. Once there, the core is logged and sampled according to Harmony’s Drill Hole Sampling Procedure.

Where possible, the entire channel width intersected in each drill hole is split using a diamond drill core cutter and one half of the sample is bagged, labelled with a unique sampling number, and sent to the designated laboratory for assay. The remaining half is retained for future reference.

If the core condition is such that a successful cut cannot be achieved, then the whole core is submitted for assay. Pertinent data captured during sampling includes sample width (cm), mass, core lithological intersection angles and a detailed visual description of the reef. The data is recorded in the drill hole database together with the unique sample number, collection date and spatial location.

All samples are assessed for quality and signed-off by the Senior Geologist for completeness and auditability, prior to laboratory dispatch.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

8.2Density Determination

The relative density (“RD”) of samples was determined through the work conducted in the period by AAC from 1980 to 2000. The dry mass and the submerged mass of the samples in water were measured and the density was calculated. Tests have occasionally been conducted thereafter on samples collected from the working places.

A relative density of 2.78 is used for tonnage calculations, which is based on historical analytical work conducted by the previous owners, AAC, and is therefore acceptable for use in tonnage calculations.

8.3Sample Security

Chip samples are bagged, sealed and transferred to surface on the same day as they are collected. Chain-of-custody for chip samples exists from sampler to the Sampling Team Leader to truck driver to laboratory official.

Cores are delivered to the core yard at the end of each day’s drilling. Chain-of-custody for drill hole samples exists from Geologist to Sampling Team Leader to truck driver to laboratory official.

Samples are stored in a secured facility and can only be transported by a permit holder for transporting gold bearing material. Waybills and registers are checked and signed off by security. The samples are received by the laboratory, from the mine, in locked containers with seals. The sample labels are scanned at the designated laboratory and the batches compared to the submitted sample sheets. The scanned bar codes are kept at the laboratory and compared to the work sheets that are automatically created on the system. Sample lists submitted by the mine are used to compare what is received at the laboratory.

8.4Sample Storage

All pulp samples of drill hole intersections and underground chip samples are kept for a few months at the laboratory and later discarded. The remaining half of the sampled core of drill holes is kept at the core yard for future reference.

8.5Laboratories Used

All samples are sent to the external SGS South Africa (Pty) Limited (“SGS”) laboratory (previously Performance Laboratories (Pty) Limited) in Randfontein for preparation and assay. The laboratory is ISO/IEC 17025:2017 certified for chemical analysis by the South African National Accreditation System (“SANAS”)(No. T0265).

8.6Laboratory Sample Preparation

The total percentage mass loss on each sample should not exceed 2%.

8.7Assaying Methods and Analytical Procedures

For the period 1 January 2021 to 31 December 2021, Kusasalethu submitted a total of 27,606 samples for analysis of gold and 46 samples for analysis of uranium using the following analytical techniques:

•gold: 30g fire assay with a gravimetric finish. The lower detection limit is 0.2g/t.; and

•uranium: X-ray diffraction (“XRD”) analysis.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Pulverised samples (85% passing 75 microns) are fused with a suitable flux. The flux combines with the gangue to form a fluid slag and the litharge in the flux is reduced to minute globules of lead.

8.8Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

The assessment of assaying accuracy and precision is carried out using Certified Reference Materials (“CRMs”), blanks and duplicates. CRMs, blank samples and duplicate samples are added to the underground chip samples and drill hole core samples sent to the assay laboratory.

If the CRM or blank sample has been deemed to have failed, the entire batch of samples assayed with this failed QAQC sample must be identified. A request must then be sent to the laboratory requesting the laboratory to repeat the assay procedure on all samples within the batch.

A second CRM or blank sample is provided to the laboratory to include with the batch of samples. Should the batch of samples fail the QAQC standards again, these samples are excluded from the sampling database (not captured in the sampling system), and the panel/drill hole will have to be resampled if necessary. In addition, regular audits of the laboratory processes and facilities are conducted by mine evaluators and regional experts to monitor compliance and quality controls.

8.8.1Field QAQC

Duplicate samples are submitted to monitor precision of the analytical methods. Pulverized primary samples are also selected at random and re-assayed.

Harmony inserts blanks, or CRMs obtained from African Mineral Standards (“AMIS”) and duplicates into their sample stream. inserts blanks, or CRMs obtained from AMIS and duplicates into their sample stream. The number of QAQC samples inserted by Harmony for the sampling period 01 October 2020 to 31 August 2021 is presented in Table 8-1.

Table 8-1: Field QAQC Samples


Type			Total No.
Primary Samples			35,019
Blanks			612
CRM			609
Duplicates			616

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Monthly process compliance reports are compiled as part of the quality control on the sampling process. Standard formats are used and recorded for audit purposes. Process compliance reports on the chipping personnel are also compiled in order to check the quality of the chipping. These observations are made weekly and are also kept on record for audit purposes.

8.8.2Laboratory QAQC

The laboratory's internal QAQC procedures include the following:

•insertion of split pulps, crushed duplicated and standards; and

•regular audits of the laboratory processes and facility are conducted by mine personnel and regional experts to monitor compliance. All audit reports compiled are assessed for remedial action by the responsible persons before next review. Monthly laboratory meetings are held with the Kusasalethu representatives to discuss concerns over the specific periods.

8.8.3QAQC Results

Password-protected Microsoft Excel spreadsheets are used to assess results of the QC samples. This is undertaken to validate the accuracy of the laboratory assay data and ensure a high level of confidence in the assay results used in the estimation of Mineral Resources.

If results of any of the CRM samples fall outside two standard deviations of the expected value for that particular CRM, they are deemed to have failed (i.e., they plot outside the acceptable tolerance limit). Portions of the batches that fail this criterion are queried with the laboratory and those samples are re-assayed.

Results of the Kusasalethu quality control samples and the performance of the CRM or standard samples is summarised in Table 8-2 and Table 8-3, respectively.

Table 8-2: Summary of Analytical Quality Control Data


Quality Control Material Type	No. of Samples Submitted	No. of Failed Samples	Action Taken
CRM	609	28	Failed/warnings regarding internal checks at the laboratory.
Blanks	612	0
Duplicates	616	0

A total of 1,837 aliquots (portions of larger samples) of the material were submitted to the laboratory and 28 of those received warnings but not failures i.e., they plotted on the acceptable tolerance limit of ±2 standard deviation from the expected value. Of note however, is 38% of the duplicate pulps for the low-grade samples (below 4.7g/t) fell outside the accepted hard value variance of 20%. This is a result of the known high nugget effect on the mine. Hard plots for medium and high grade were at 14% and 7%, respectively

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 8-3: Summary of Kusasalethu CRM Performance


Standard	CRM Alias	Certified Value (g/t Au)	Kusasalethu (±2 STD)		SGS Randfontein
			Upper Limit (g/t Au)	Lower Limit (g/t Au)	Analysis	Ave. (g/t)	Outliers & Failures	Bias (%)
Wits Au	AMIS0429	22.93	23.46	22.40	FA	23.00	0%	0%
Greenstone Belt Au	AMIS0441	2.44	2.55	2.33	FA	2.50	0%	2%
Wits Au	AMIS0465	14.80	15.45	14.15	FA	15.00	0%	1%
Wits Au	AMIS0554	7.88	8.35	7.42	FA	7.90	0%	0%
Greenstone Belt Au	AMIS0558	5.45	5.67	5.23	FA	5.60	0%	2%
Greenstone Belt Au	AMIS0559	12.01	12.42	11.60	FA	12.10	0%	0%
Wits Au	AMIS0705	12.91	13.71	12.11	FA	13.40	0%	3%
Wits Au	AMIS0721	8.32	8.57	8.07	FA	8.20	2%	-2%
Wits Au	AMIS0722	7.30	7.67	6.93	FA	7.30	0%	1%
Note: FA - Fire assay

8.9Comment on Sample Preparation, Analyses and Security

In the opinion of the QP that:

•the drill core sampling method adopted at Kusasalethu is appropriate for the Witwatersrand and VCR-type mineralisation;

•the underground chip sampling is representative of the channel sampled;

•the sample preparation, security and analytical procedures followed for gold grade determination are adequate; and

•the results of the QAQC assessment have been appropriately addressed to ensure that the assay results of the primary samples are adequate for Mineral Resource estimation.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

9Data verification

Section 229.601(b)(96) (9) (i-iii)

The dataset used for model update comprises chip samplings, underground boreholes/drill holes and surface boreholes. These inputs need to be checked and verified beforehand to ensure that the correct data is used for the model generation. This database is protected through administration rights allocated to an authorised administrator.

9.1Data Verification Procedures

This is a time-consuming phase of any geostatistical evaluation process. Kriging uses the sample value and spatial location of all sample points, and as such these parameters need to be checked. The steps followed are:

•the drill hole data gets checked against the original logs by the senior geologist before he inputs the values into the Microsoft Excel-based database;

•duplicate checking – Duplicate samples can easily be introduced to the sampling database through digitising the same samples from adjacent assay tracings, duplication of data inputs in the electronic sampling system or incorrect projections from stope sheets. After importing values into the evaluation software, a duplicate checking macro is run to identify and remove exact duplicates and “offset” duplicates from the database. “Offset” duplicates are samples located close together (within 50cm of each other) and have the same value;

•removal of obvious errors – The data is checked for obvious errors, such as negative values, blank values or default values. Any suspect value needs to be checked and corrected, and if no validation can be found, it should be removed from the database;

•spatial data check – The data is plotted spatially by means of a post-plot to ensure that the data is plotting in the correct position. Any co-ordinate error needs to be checked and corrected. This process cannot be put into a macro, and needs to be done manually; and

•the primary assay results captured in the database were validated by spot checking a selection of drill holes used in the current Mineral Resource estimate.

The QP did not identify any critical errors in the database.

9.2Limitations to the Data Verification

There are no limitations to this process as the verification methodology is over inspected by a central audit team and also, sample data has been integrated into the Harmony standard software system utilised for reporting of Mineral Resources and Reserves.

9.3Comment on Data Verification

The QP is of the opinion that the Kusasalethu drill hole and sample database is reliable and adequate for the purposes Mineral Resource estimation.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

The ore mined from Kusasalethu is processed at the Mponeng Gold Plant, located adjacent to the Mponeng shaft (Figure 3-1). The Mponeng processing facility has been in operation since 1986 and, as such, the processing method is considered well established for the style of mineralisation processed. The plant makes use of historical trends and data as a basis for the forecast processing parameters, except for instances where projects are planned for optimisation, for which appropriate test work is done.The ore processed at the Mponeng Gold Plant is a blend of ore received from the Mponeng Mine and the Kusasalethu Mine. The latest test work performed was in 2019 and analysed these blends to determine optimal conditions for processing.

10.1Extent of Processing, Testing, and Analytical Procedures

The objective of the test work, performed by Mintek SA (“Mintek”), was to evaluate the gold extraction techniques at the Mponeng Gold Plant under a range of conditions. This test work was conducted to ensure optimal conditions for processing gold at the plant. The following conditions were evaluated:

•grind size;

•leach residence time;

•sodium cyanide (NaCN) concentration;

•carbon contact time; and

•composite feed material blended at different ratios.

10.2Degree of Representation of the Mineral Deposit

Two samples, sourced from Mponeng and Kusasalethu ores at the front of the mill, were sent to Mintek. Each sample weighed approximately 20kg and had a complete particle size distribution (“PSD”) of below -1.7mm. The head grade of the samples is presented in Table 10-1 and may be considered as representative of the ores being mined at each site.

Table 10-1: Average Head Grades of Samples


Ore			Gold Grade (g/t)
Mponeng			7.34
Kusasalethu			9.43

10.3Analytical Laboratory Details

The metallurgical test work was carried out at Mintek, by the company’s Analytical Services Division. This division specialises in geochemical and metallurgical analyses. The laboratory is ISO 17025 certified.

10.4Test Results and Recovery Estimates

The results of the analysis by Mintek are presented in Table 10-2. The optimal plant recovery was achieved on Composite 2, at a ratio of Mponeng ore to Kusasalethu ore of 60:40.

Table 10-2: Results for the CIP Tests


Ore	Gold grade (g/t)	Carbon (g/t)	Percent Milled (%)	Lime Consump. (kg/t)	Recovery (%)
Kusasalethu	9.43	265	90	0.61	94.60
Kusasalethu (Sample 2)	9.43	210	80	0.58	94.00
Composite 1 (Kusasalethu 30:70 Mponeng)	7.82	210	-	0.55	97.20
Composite 2 (Kusasalethu 40:60 Mponeng)	8.17	201	-	0.47	97.60

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

10.5Commentary on Mineral Processing and Metallurgical Testing

Ore is fed into the Mponeng Gold Plant at the optimal feed ratio as determined by the metallurgical test work.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

11Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

The narrow-tabular nature of the VCR at Kusasalethu lends itself to the estimation of grade and thickness in two-dimensional (“2D”) block models, without the requirements for geological wireframes. An independent process of building a set of 3D wireframes of the structural interpretation to inform mine planning and the Mineral Reserve estimates is also undertaken.

The Mineral Resources for Kusasalethu have been estimated in geological domains using geostatistical parameters that reflect the variability of the data and data spacing, using a customized script in DatamineTM Studio 3 (“DatamineTM”) modelling software. This allows the steps in the process to be easily audited.

11.1Geological Database

The Kusasalethu Mineral Resource estimate is based on the surface drilling, underground drilling and underground chip sampling data obtained up to 30 December 2021. The database was exported from the electronic database to Datamine modelling software.

The VCR validated database contains a total of 2,846 surface and underground drill holes (surface and underground), and 1,089,893 underground channel samples.

11.2Global Statistics

A summary of the global statistics, by geozone, is provided in Table 11-1.

Table 11-1: Summary of the Gold Assay Descriptive Statistics


Geozone	No. Samples	Minimum (cmg/t Au)	Maximum (cmg/t Au)	Mean (cmg/t Au)	Variance	SD (cmg/t Au)	COV
GZ1	156,964	0.10	7,428	1,208	2,405,322	1,550	1.2
GZ2	11,228	0.80	4,059	660	734,126	1,162	1.2
GZ3	3,686	0.30	6,874	574	1,226,439	1,107	1.9
GZ4	28,520	1.00	4,096	790	810,547	1,175	1.1
GZ5	792,995	0.40	7,750	1,409	2,784,292	1,668	1.1
GZ6	23,825	0.30	7,240	1,226	2,436,122	1,560	1.2
GZ7	62,692	0.50	5,617	1,184	1,499,123	1,491	1.8
GZ8	3,349	8.00	3,125	820	494,654	817	1.4
GZ9	6,634	1.00	10,091	1,534	4,277,618	2,068	1.3
Total	1,089,893

11.3Geological Interpretation

The imported data is assigned to a series the VCR geological domains, or geozones, for generating the geological models. A plan showing the geozones is provided in Figure 11-1.

Although the geozone model used at Kusasalethu takes cognisance of structural discontinuities and the geological facies model (Section 6.3.1), the geozones are principally based on gold accumulation and channel width distributions. Geozones are selected based upon areas of similar grade or channel width and therefore may crosscut, and in some cases, subdivide the geological facies.

In the upper sections of the Kusasalethu mining right area the geozone directions reflect the predominant facies orientations, where the central portion trends northwest-southeast, while the rest of the mining area

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

has a northeast-southwest trend. In the lower central portion of the mine the geozones converge, with the western geozones boundary having a more north-south orientation and truncating the northeast-southwest trend geozones in the eastern section of the mine.


Figure 11-1: Kusasalethu VCR Geozones

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

11.4Structural Wireframe Model

A set of 3D structural wireframes is generated, representing the geological interpretation for each reef. This is informed by the geological drilling, chip sampling, underground geological mapping and survey point data (or underground pegs) data and is created in Datamine™ in order to allow subsequent mine design and planning to take cognisance of the latest geological information. These wireframes are not required for the Mineral Resource estimates.

11.5Compositing

Channel widths were calculated from the core bed axes (“CBA”) using the cosine rule as CBA’s are measured 90° to the drill hole core axis. The different Zone Code units were extracted into unique files, which were further processed in the geostatistical procedures. This is done over the full length of the reef channel.

11.6Capping

Outlying values (both for cmg/t and channel width) are calculated per domain at an optimal percentile using the “QUANTILE” process. The capping allows for meaningful semi-variogram modelling and avoids potential over-estimation due to extreme sample values. Capping parameters for both grade and channel width (“CW”) are summarised in Table 11-2.

Table 11-2: Grade and CW Capping Parameters


Geozone	Au Cut (cmg/t) (Max)	CW Cut (cm) (Max)
GZ1	7,428	204
GZ2	4,059	208
GZ3	6,874	121
GZ4	4,096	166
GZ5	7,750	201
GZ6	7,240	274
GZ7	1,184	234
GZ8	3,125	210
GZ9	10,091	136

11.7Variography

11.8Mineral Resource Estimation Methods

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

11.9Estimation Parameters

The estimation method used for the local Measured Mineral Resource estimates is ordinary kriging (“OK”) and for the Indicated and Inferred estimates, simple macro kriging (“SMK”).

The minimum and maximum number of data points used is 14 - 25 for the Measured category, 8 - 20 for the Indicated category and 3 - 12 for the Inferred category. Any un-kriged areas in the Inferred category regions are then estimated using a global mean.

The distribution of the VCR gold values is show in Figure 11-2.

11.10Density Assignment

The density currently used for tonnage calculation at Kusasalethu is an average of 2.78t/m3. Reef volume is determined by block area multiplied by the thickness estimate. The tonnage of the reef horizon is determined by multiplying the volume by the density.

11.11Model Validation

The QP validated the Kusasalethu Mineral Resource model using the following:

•visual comparisons with the raw drill hole data;

•comparisons of the raw drill hole data statistics with the model statistics;

•model volume; and

•visual assessment of the block model with drill hole intersections to ensure that the grades are locally honoured by the model.

The QP did not identify any critical errors in the block model.

11.12Mineral Resource Evaluation

The Mineral Resource estimate for Kusasalethu is considered to have reasonable prospects for economic extraction. This is demonstrated by the results of the cash flow for the mine. The cut-off value for the Mineral Resources is determined at 1,042cmg/t gold based on the economic assumptions presented in Table 11-3 at the effective date 30 June 2022. This cut-off value represents typical costs for the mining method and preliminary mining and metallurgical recovery assumptions.

Table 11-3: Harmony Economic Assumptions (30 June 2022)


Description	Unit	Value
Gold Price	USD/oz	1,723
Exchange Rate	ZAR:USD	15.35
Gold Price	ZAR/kg	850,191
Plant Recovery Factor	%	95.5
Unit Cost	ZAR/t	4,655

The gold price was derived by the Harmony Executive Committee at Head Office. The QP considers the price to be appropriate for Mineral Resource estimation and is slightly higher than that used for estimating Mineral Reserves (USD1,546oz). The operating costs (both mining and processing) are based on historical performance and budget.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 11-2: Distribution of Gold Values on the VCR

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

11.13Mineral Resource Classification and Uncertainties

The Kusasalethu Mineral Resources have been classified into Measured, Indicated and Inferred categories, according to the S-K 1300 definitions. The classification is based on geostatistical and geological confidence.

The QP then considered if the geostatistical confidence boundaries required modification based on the geological confidence in an area. The geological confidence could include confidence in the sedimentary facies and mineralisation model, or confidence in the structural model.

A 1.90% structural model discount has been applied for Measured Mineral Resource and 2.92% for Indicated and Inferred Mineral Resource, to account for any unknown geological structures that cannot be adequately defined by the available geological information ahead of the mining faces.

The application of the criteria above results in the following set of approximate sample spacings for each Mineral Resource category:

•>60m x >60m for Inferred Mineral Resource;

•60m x 60m for Indicated Mineral Resource; and

•6m x 6m for Measured Mineral Resource (underground channel sampling).

11.14Mineral Resource Estimate

The Mineral Resources for Kusasalethu were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The location of the VCR Mineral Resources in relation to the mining right boundary is presented in Figure 11-3.

The Mineral Resource estimate, as at 30 June 2022, exclusive of the reported Mineral Reserves is presented in Table 11-4. These estimates account for mining depletion recorded from July 2021 to June 2022. The QP compiling the Mineral Resource estimates is Mr J Ackermann (Ore Reserve Manager), who is employed by Harmony.

Factors that may affect the Mineral Resource estimates include the following:

•gold price assumptions;

•exchange rate assumptions;

•operating and capital cost assumptions;

•gold recovery assumptions;

•geology-related risks; and

•operational risks.

It is important to note that the combined Measured and Indicated Mineral Resources, inclusive of Mineral Reserves, are carried forward to the Mineral Reserves conversion and subsequent LOM planning.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 11-3: Location of Kusasalethu VCR Mineral Resources and Mineral Reserves

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 11-4: Summary of Kusasalethu Mineral Resource Estimate as at 30 June 2022 (exclusive of Mineral Reserves)1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	0.990	13.03	12,906
Indicated	8.545	9.28	79,333
Total / Ave. Measured + Indicated	9.535	9.67	92,239
Inferred	2.025	8.85	17,927
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	1.091	0.380	0.415
Indicated	9.419	0.271	2.551
Total / Ave. Measured + Indicated	10.511	0.282	2.966
Inferred	2.232	0.258	0.576
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr J Ackerman, who is Ore Reserve Manager at Kusasalethu, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Mineral Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 1,042cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.

11.15Audits and Reviews

The Mineral Corporation (Pty) Limited (“Mineral Corporation”) conducted an external audit of the current Mineral Resource and Mineral Reserve estimates in August 2021. Its findings were presented in report No. C-HGC-R&R-1950/1179.

Mineral Corporation concluded that Mineral Resources and Mineral Reserves as at June 2021 can be disclosed and signed-off by the QP according to internationally recognised mineral reporting guidelines and rules.

11.16Mineral Resource Reconciliation

The combined Measured and Indicated Mineral Resource gold content estimate for 2022, exclusive of Mineral Reserves, decreased by 31%, from 4.317Moz gold as at June 2021 to 2.966Moz gold as at June 2022.

The major difference in the reconciled Mineral Resources between June 2021 and June 2022 is attributed to a 19% increase in Mineral Resource cut off. This was directly driven by a 13% unit cost increase (from ZAR4,134/t to ZAR4,655/t) and only a 4% increase in the gold price used (ZAR850/g versus ZAR820/g). Further to this there was a decline in mineral inventory grade by 1,5% (979cmg/t to 964cmg/t).

11.17Comment on Mineral Resource Estimates

In the opinion of the QP:

•methodologies applied in estimating the Mineral Resource are subjected to scrutiny and sign off by a Qualified Person and are based on historical parameters;

•there is no known geological data that was not used that could materially influence the estimated quantity and quality of the Mineral Resource;

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

•the model for the Mineral Resource estimate is sound and it was not deemed necessary to consider alternative interpretations for the current Mineral Resource Statement.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

The reported Mineral Reserves are derived through a business planning process and consideration by the Chief Operating Decision-Maker (“CODM”). The business planning process comprises multi-functional reviews, including the mining, support, and service departments, that are involved in the verification of the inputs and the Modifying Factors. The CODM consists of various executive roles and responsibilities. These executives assess the profitability, revenue, and production costs. The CODM also considers capital expenditure, gold production and tonnes milled when assessing the overall economic sustainability.

12.1Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

The reported Mineral Reserve is an estimate of the gold as delivered to the processing plant, solely from the in situ underground tabular orebody at Kusasalethu Mine. The Mineral Reserve estimate takes several factors into account, including:

•the latest geological structure model and associated Mineral Resource models that constrain the layout for the mine design and LOM plan;

•the preferred mining method. The sequential grid mining method is employed at Kusasalethu, taking the mining and geotechnical properties of the deposit into account;

•the rock engineering considerations in the mine design. The geotechnical team designs a suitable pillar layout based on modelling results and include dip stabilizing- and bracket pillars into the mine design. A detailed mine design and schedule is then built, taking the pillar design and macroeconomic factors into consideration;

•the resultant mine design and schedule is the basis of the LOM plan and initial Mineral Reserve estimate; and

•Modifying Factors are then applied to the schedule, get to the final Mineral Reserve estimate.

The mine design, and finalised mine design and schedule, including the relevant mine design parameters and mine layout (Section 13) are derived using MicrostationTM (Version 8). The Modifying Factors are then incorporated in order to derive the Mineral Reserve estimate. The location of the VCR Mineral Reserves in relation to the licence boundaries is presented in Figure 11-3.

12.2Modifying Factors

A summary of the Modifying Factors that were applied in the conversion of Mineral Resources to Mineral Reserves for Kusasalethu is presented in Table 12-1. The Modifying Factors are consistent for Mineral Reserve estimation and mine planning. Although the Modifying Factors are based on historical operational performance, the future strategy and changes in mining conditions are considered.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 12-1: Kusasalethu Mineral Reserves Modifying Factors (30 June 2022)


Modifying Factor	Unit	Value
RD	t/m³	2,78
Stoping Width	cm	132,5
Gully	%	5,72
Off Reef	%	2,14
Waste to Reef	%	0,13
Flushing	%	0.16
Discrepancy	%	16,50
Mine Call Factor	%	85,92
Plant Recovery Factor	%	95,50
Mine Recovery Factor	%	82,05
Plant Call Factor	%	100,00
Mineral Reserves Cut Off	cmg/t	1100

The Modifying Factors do not include the plant recovery, on the basis that the Kusasalethu Mineral Reserve estimate represents the mineral content of the material delivered to the plant.

12.3Mineral Reserve Estimate

The reported Mineral Reserves, as at 30 June 2022, are declared as delivered to the plant, except for the recovered gold content. This gold content is calculated after factoring in the plant recovery as a Modifying Factor. The Mineral Reserve estimate for Kusasalethu is summarised in Table 12-2. The location and classification of Mineral Reserve is presented in Figure 11-.

The QP compiling the Mineral Resource estimates is Mr J Ackermann, who is employed by Harmony.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 12-2: Kusasalethu Mineral Reserve estimate (30 June 2022)1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	1.313	6.97	9,153
Probable	0.031	6.84	210
Total (Proved + Probable)	1.343	6.97	9,363
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	1.447	0.203	0.294
Probable	0.034	0.199	0.007
Total (Proved + Probable)	1.481	0.203	0.301
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr J Ackerman, who is the Kusasalethu Ore Reserve Manager, and who is a Harmony employee.
2. Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the Mineral Reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. Mineral Reserves are reported using a cut-off grade of 1,100cmg/t determined using a gold price of USD1,546/oz gold.

The requisite surface and underground infrastructure is in place to support the Mineral Reserves. The Mineral Reserve estimate takes all sources of dilution into account, and all the Modifying Factors (Table 12-1), with the exception of the plant recovery. While the plant recovery is not used in the estimation of Mineral Reserves, it is however used in determining the economic viability of Kusasalethu.

12.4Mineral Reserve Reconciliation

The declared Mineral Reserve estimate decreased from 0.498Moz as at 30 June 2021 to 0.301Moz as at 30 June 2022. The changes in the Kusasalethu Mineral Reserve estimate between 30 June 2021 and 30 June 2022 are attributed to depletion of 0.131Moz and an 8% decrease in planned efficiencies from 312m²/crew to 281m²/crew. There was also a decrease in the Mineral Reserve value by 3% from 1,392cmg/t to 1,351cmgt/.

12.5Commentary on Mineral Reserve Estimate

Any by-products that are recovered as part of the refining process, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimate.

There are no obvious material risks that could have significant effect on the Mineral Reserves.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

13Mining Method

Section 229.601(b)(96) (13) (i-v)

Kusasalethu is a deep level underground gold mine, currently operating at depths ranging between 2,900m and 3,300m BMD. Access to the orebody is gained through a twin shaft system from surface to 73 level. The twin sub shaft system extends from 73 level to 115 level.

13.1Mining Operations

The VCR horizon is extracted at Kusasalethu, and mining is conducted over five levels (98 level to 113 level) using sequential grid mining techniques.

The ore mined at Kusasalethu is processed at Mponeng Gold Plant. The Kusasalethu Plant is used for processing marginal ore, and for generating backfill material for mining operations.

13.1.1Sequential Grid Mining (“SGM”)

Due to the current mining depths at Kusasalethu, the SGM method with backfill and pre-conditioning is used. The SGM method is preferred due to the variability of the VCR orebody with respect to value, and the seismic risk associated with deep level mining. The mining sequence used for breast mining is a V-shaped configuration, colloquially referred to as the “inverted Christmas tree”. An underhand face configuration is adopted when mining towards the west, and an overhand face configuration when mining towards the east. The SGM method makes use of dip pillars and reduced mining spans with pre-developed tunnels, aimed at further control of stresses experienced during rock movement. An example of the mining sequence used at Kusasalethu is shown in Figure 13-1.

The selected SGM method, with breast mining as the mining direction, is a suitable mining method for underground, narrow reef mining. The layout of the primary and secondary development excavations at Kusasalethu are shown in Figure 13-2.

Further development is done at set intervals along the haulages towards the mineralised zones in the form of crosscuts. For secondary development, an inclined excavation that connects two levels is established, referred to a raise or winze, depending on the upwards or downwards direction of the development.

A key feature of the SGM mine design is the use of non-crushing stabilizing and regional pillars as shown in Figure 13-1. During the Kusasalethu mine design process, the pillar dimensions for a particular layout and depth are determined using the assumptions and model created by the geotechnical team. More details of the geotechnical and geohydrological considerations are found in Section 13.1.

To manage the seismic risk associated with ultra-deep level mining, the SGM method is used in the current mining operations. The SGM method is employed for this deep mining approach and offers various advantages, the critical one being increased safety. A noticeable characteristic of the SGM method is that mining from the raises is advanced in only one direction at a time, directed towards the stabilizing or regional pillars.

At Kusasalethu, SGM works in conjunction with backfill support and pre-conditioning, which allows this mining method to be more effective. The SGM mining sequence also eliminates the creation of remnant pillars, reducing the risk of seismicity. Therefore, the advantages offered by the SGM method make it the preferred mining method, especially when considering the current operating depths at Kusasalethu.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 13-1: Plan Showing the SGM Sequence at Kusasalethu

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 13-2: Plan View Extracted from Mine Design Software Depicting a Crosscut

Figure 13-3: Section of the Blueprint Footwall Crosscut Design at Kusasalethu

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

13.2Mine design

The mine design strategy aims at maximising the safe extraction of ore, while minimising the risk of geotechnical failures, which can result in operational disruptions and dangerous working conditions. The VCR is a tabular inclined horizon, which is almost continually developed across the Kusasalethu mining right area. The most critical parameter that varies in mining is the geology of the area. There are structure interruptions and some sedimentary features that may remove the reef in some places.

The occurrence of geological faults is also a source of groundwater intersections during mining operations which may lead to production delays, geotechnical risks, and the potential for flooding. Depending on the geology of the dyke or sill, a change in the mining direction may be required, or as in the case of low-risk scenarios the Rock Engineering department may suggest a safety and support strategy to mitigate the associated geotechnical risk. A change in mining direction may result in Mineral Resource losses, or an increase in dilution.

Access to the orebody is gained through a twin shaft system from surface to 73 level. The twin sub shaft system extends from 73 level to 115 level. Section 15 provides more detail on the surface and underground infrastructural layout that supports the mining operations at Kusasalethu. Broken rock handling is track-bound, transferring the rock to a number of inter level sub-vertical transfer systems that gravity feeds to the main silos on 115 level.

At Kusasalethu, development for the VCR horizon for all the levels is in the footwall. The presence of large geological structures within the raiseline can influence these developments. As part of primary development, a crosscut is developed in the direction of mine workings. A plan view of a typical footwall crosscut is shown in Figure 13-2.

A section view of the inclined secondary development is depicted in Figure 13-3. This is used to access the reef contact, and advanced from the position of respective crosscuts. Ore is extracted from stoping panels established from the inclined development. The typical stoping panel dimensions are a panel length of 27.6m and a stoping width of 1.32m.

13.2.1Mine Design Parameters

Mine design is done internally, using CADSMineTM (Graphics logon Version 10.1.94). The mine design parameters used are shown in Table 13-1.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 13-1: Key Mine Design Parameters


Parameter	Unit	Value
Regional Stability
Dip Stabilizing Pillar Dimensions
Strike Span	m	30
Dip Span	m	Full length of the raise
Strike Stability Pillar Spacing¹	m	N/A
Access Haulages Middling to Reef	m	90
Primary Development
Advance	m/month	28
Secondary Development
Advance	m/month	20
Stoping Parameters
Middling to Reef (VCR)	m	90
Economic Parameters
Cut-off Grade (planning)	cmg/t	1,100
Notes: 1. Faults are clamped and therefore strike stability pillars are not included in the mine design.

The geological models, and the geotechnical parameters formulated by the rock engineers, are used as a basis of the mine planning process. The stopes are mined from the centre raise line westwards and eastwards, one direction at a time, towards the stabilizing pillars (Figure 13-1). Additional support is provided using bracket pillars, to ensure safety around major geological features.

13.3Mine Plan Development and Life of Mine (“LOM”) Schedule

The key objective with the SGM method is to create flexibility and minimise any risks posed to the production plan by ensuring that development is at least two years ahead of mineable Mineral Reserves. This strategy allows for the collection of geological information, which is then considered in the mine design process to optimise the final mine design. It enables planning and scheduling activities to be accurately sequenced, which leads to better planning, safer working conditions, and improved profitability.

The Kusasalethu Mineral Reserves model is used at the basis of the LOM Plan and scheduling exercise. The Kusasalethu Mineral Reserve estimate is modelled at a cut-off grade of 1,100cmg/t, and 1.34Mt of Mineral Reserves are included in the LOM Plan.

The Mineral Reserves can be mined using the existing surface and underground infrastructure. The Mineral Resources which cannot be accessed using the existing infrastructure have not been included in the Mineral Reserve estimate and are therefore not included in the LOM Plan.

Kusasalethu is at the end of its mining life and currently mining in harvest mode (high grade, low volumes). The operation has a remaining life of two years, with a mining rate of 672ktpa milled tonnes during the period.

The Kusasalethu mine outline is shown in Figure 6-5 and Figure 11-2.

The forecasted mining production rates for Kusasalethu are the tonnages of the LOM plan which considers the planned and available working areas, inclusive of the mines current infrastructure capacity. The annual forecasted tonnages and gold produced for the LOM is shown in Figure 13-4 and Figure 13-5, respectively.

13.4Geotechnical and Geohydrological Considerations

Currently, the major geotechnical risk at Kusasalethu is the risk associated with flooding of the mine from the influx of water from Deelkraal Mine. To mitigate the risk, the mine design includes a series of water pillars, and dewatering boreholes drilled into the decommissioned Deelkraal underground workings.

The primary source of water in the underground workings is naturally occurring fissures. The Deelkraal water has a pH below 5 and is drained by 6 boreholes drilled from 98 level up into the old Deelkraal workings. The

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

head pressure on the water is known to fluctuate seasonally, and it is hypothesized that this is groundwater from the overlying Transvaal Supergroup which is draining along abandoned mining operations and surface boreholes into the Witwatersrand Supergroup.

In addition to the geotechnical risks that can be caused by the existence of geological structures and the presence of water and gas, there is also a seismicity risk at Kusasalethu due to the depth of the current mining operations. Kusasalethu maintains a working geotechnical model, to manage and control seismicity risk, consisting of primary data sourced from seismometers, reinforced with data inputs from geohydrological and other seismic monitoring processes. The geotechnical model for Kusasalethu takes the latest geological structural model and the selected mining method into account to design a suitable pillar layout.

The purpose of the pillar designs, regardless of the pillar type, is to customize them to the prevailing mining conditions, and make the mine design safe, practical, easy to implement, and profitable. These pillars include dip stabilizing-, bracket- and strike pillars. The details of the pillar design are presented in Table 13-1.

The dimensions depicted for the pillars are standard and are adjusted depending on planned bracketing of geological structures, backfilling or in some circumstances, if patches of low value reef have been encountered. The Rock Engineers measure the release of seismic energy known as the energy release rate to establish backfill support requirements and pillar design limits. Studies at Kusasalethu have shown backfill as a reliable support methodology for the SGM method. Large geological structures are supported by means of clamping pillars.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 13-4: Graph of the Kusasalethu LOM Plan - Tonnes and Grade

Figure 13-5: Graph of the Kusasalethu LOM Plan – Gold Produced (oz)

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

The geotechnical model is also used to manage and monitor the occurrence of ground water and gas intersections at the mine. There is a material risk associated with flooding and gas explosions at the mine, in the event of an unforeseen influx of uncontrolled water or gas from within the mining operations or from neighbouring mining operations. The rock fall mitigation strategy is detailed and managed through the Mining and Rock engineering Code of Practice (“COP”) and communicated, adhered to, and monitored by both the mine’s technical services and operational teams.

13.5Dilution and Grade Control

Grade and dilution control is mostly achieved through improved drilling and blasting practices. Drilling accuracy is achieved by holes that are drilled parallel, aimed at being correctly burdened and that are within the stoping limits. This ensures consistent and economic rock breaking, without dilution. Kusasalethu also adopts electronic blasting technology consisting of an integrated electronic system, which allows for precision timing and improved control of rock breaking. This technique controls stoping width and protects the integrity of the footwall and hanging wall, aimed at minimising dilution.

Mine Surveyors measure stopes monthly. The Mine Surveyors are accompanied by Grade Control Officers, who assess the extent to which blasted material has been cleaned from the stope and identify any tonnage lock-ups. Follow up checks are done on previously identified and reported lock-ups, off-reef mining and areas where reef has been left in the footwall or hanging wall. On the monthly measuring day, all relevant information is extracted electronically in order for the necessary adjustments to be made to the grade and tonnage calculations.

13.6Ore transport

The blasted ore from the stoping panels is moved with winch-operated scrapers along gullies to ore passes where it gravitates down to the loading boxes in the footwall crosscuts below the stopes. The ore is discharged into rail hoppers and transported, via front-driven locomotives, to dedicated inter-level transfer systems that gravity feed to the main silos on 115 level. Separate streams are used for waste rock and gold bearing ore.

The rock is hoisted to surface through the sub-shaft and transferred to the Rock / Vent shaft. From the Rock / Vent shaft, the ore is transported to the Mponeng plant by road to the Mponeng Plant, and the waste rock is transported by conveyor belt to the Kusasalethu plant. The waste rock is processed as a separate business unit at the Kusasalethu plant.

13.7Mining Equipment and Machinery

Mining equipment and machinery used at Kusasalethu, according to their function, includes the following:

•haulages and associated development: compressed air hand-held drills, mechanical loaders, rail hoppers and locomotives;

•production drilling and pre-condition drilling in the stopes: compressed air hand-held drills;

•rock movement - ore: box-front chutes load ore into the hoppers, where it is trammed to the shaft, then to the inter-level tips. It is then transferred to the main loading bins for hoisting to surface;

•rock movement – waste: waste rock from development operations is loaded into hoppers and trammed and hoisted in the same manner as the ore movement, but waste tramming is done via dedicated waste system to prevent diluting the ore grade; and

•ancillary equipment: Small articulated dump trucks, graders, and crawler mounted bulldozers for dump, waste and marginal ore movement also support the Kusasalethu Mine operations.

13.8Mining Personnel

Kusasalethu is a labour-intensive mining operation. The mine uses an 8-hour shift system, operating a 2-shift cycle per day. The mining personnel operating on this shift cycle are divided into workers performing development, stoping and other tasks. A crew is allocated for development and stoping. A crew is sub-divided into crews performing the following functions:

•drill and blast;

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

•cleaning; and

•support.

The drill and blast, and supporting crews primarily complete their tasks during the day shift, while the cleaning crew completes their task during the night shift. One development end is allocated for each crew for primary and secondary development. Development is done ahead of mining.

A panel pairing strategy is implemented for stoping. The aim of the strategy is to maximise efficiency by having less mining crews. The LOM plan is based on a hybrid plan, in which paired panels will have 20 crew members (Table 13-2) and single panels (Table 13-3) will have 18 crew members. The planned efficiencies are signed off by the Company Executive.

In addition to the primary functions noted in Table 13-2 and Table 13-3, there are supporting activities that are required during the 8-hour shift which include:

•pre-conditioning;

•support functions for mining gullies;

•backfill support;

•maintaining efficient spacing on strike; and

•in-stope support and blasting functions

The expected benefits of panel pairing are increased face time per task, better lead and lag management, increased efficiency in panel equipping, and improved efficiency overall. The benefits of panel pairing were proven in FY2021, as such the hybrid plan concept is the strategy used in the LOM plan. On average, the monthly advance is 262m²/month, using 45 crews.

Table 13-2: Mining Personnel and Functions (Paired Panels)


Mining Cycle Day and Shift	Crew No.	Function of Mining Crew	No. of Personnel
Dayshift (Drill and Blast Crew)	Panel A	Team Leader	1
Dayshift (Drill and Blast Crew)	Panel A	Rock Drill Operator	6
Dayshift (Drill and Blast Crew)	Panel A	Miner's Assistant	1
Dayshift (Drill and Blast Crew)		Total Crew Members	8
Dayshift (Support Crew)	Panel B	Team Leader	1
Dayshift (Support Crew)	Panel B	Rock Drill Operator	2
Dayshift (Support Crew)	Panel B	Stope Team Member	3
Dayshift (Support Crew)	Panel B	Winch Driver	1
Dayshift (Support Crew)		Total Crew Members	7
Nightshift (Cleaning)	Panel A	Team Leader	1
Nightshift (Cleaning)	Panel A	Winch Driver	3
Nightshift (Cleaning)	Panel A	Water Jet Operator	1
Nightshift (Cleaning)		Total Crew Members	5
Grand Total			20
Notes: 1. See crew no. (E1 and E2), and function of mining crew (support, break, clean) depicted in Figure 13-7.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 13-3: Mining Personnel and Functions (Single Panels)


Mining Cycle Day and Shift	Crew No.	Function of Mining Crew	No. of Personnel
Dayshift (Support, Drill and Blast)	Panel A	Team Leader	1
Dayshift (Support, Drill and Blast)	Panel A	Rock Drill Operator	7
Dayshift (Support, Drill and Blast)	Panel A	Stope Teams	3
Dayshift (Support, Drill and Blast)	Panel A	Winch Driver	1
Dayshift (Support, Drill and Blast)	Panel A	Miner's Assistant	1
Dayshift (Support, Drill and Blast)		Total Crew Members	13
Nightshift (Cleaning)	Panel A	Team Leader	1
Nightshift (Cleaning)	Panel A	Winch Driver	3
Nightshift (Cleaning)	Panel A	Water Jet Operator	1
Nightshift (Cleaning)		Total Crew Members	5
Grand Total			18
Notes: 1. See crew no. (E1 and E2), and function of mining crew (support, break, clean) depicted in Figure 13-7.

13.9Commentary on Mining Method

The SGM method with backfill support and pre-conditioning is optimal for the mining conditions at Kusasalethu.

The main geotechnical and geohydrological risks at Kusasalethu include influx of uncontrolled water from Deelkraal mine and seismicity.

The use of backfill results in lower rates of energy release relative to other mining methods. Low energy release rates are known to reduce the occurrence of seismic events and rockbursts or rockfalls. Seismicity is managed through monitoring systems, which are incorporated into the working mine models that continually inform mine planning and decision-making.

The risk associated with the influx of uncontrolled water is mitigated by the inclusion of water pillars and dewatering drill holes into the mine design.

Mine design, planning and scheduling at Kusasalethu are done using reputable software, taking the geotechnical model and related parameters into account.

The mining rates, machinery and equipment, ore transportation, grade and dilution control, as well as the allocation and optimisation of resourcing are driven by the mine schedule and continuous improvement initiatives on site.

The mining parameters and associated risks for Kusasalethu are well understood, and risk mitigation measures are put in place.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

14Processing and Recovery Methods

Section 229.601(b)(96) (14) (i-iv)

The ore from Kusasalethu is processed at Mponeng’s gold processing facility which has been in operation since 1986. The technology used to process the gold-bearing ore is well established and suitable for the style of mineralisation (VCR ore).

14.1Mineral Processing Description

The ore extracted from Kusasalethu is transported by road to the Mponeng Gold Plant, where it is treated and smelted. The process flow for Mponeng Plant is presented in Figure 14-1.

The ore is reduced in sized by crushing, followed by grinding using a semi-autogenous milling. A conventional gold leach process (cyanidation) follows, which uses liquid oxygen injection. The cyanidation process is one of the most utilised methods for the recovery of gold from auriferous ores. The use of cyanide leaching in the gold recovery process is based on the properties of gold, mainly its solubility (ability to dissolve) in cyanide solutions. Once the gold is dissolved into the cyanide solution, its ability to adsorb (attach) onto activated carbon through the application of carbon in pulp (“CIP”) technology.

The loaded carbon goes into the elution columns, which are high pressure vessels that circulate the loaded carbon, which extract the gold. The gold will then de-adsorb from the activated carbon and attach onto stainless-steel wool by means of electrowinning. The CIP circuit uses the gravity flow of slime between the consecutive counter-flow stages to recover and recirculate the activated carbon back into the system. The subsequent step after the CIP circuit is smelting of the cathode steel wool (after it had been dried in the calcining ovens). The gold bullion will then be dispatched to Rand Refinery for further refining, where silver is also produced as a by-product.

14.2Plant Throughput, Design, Equipment Characteristics and Specifications

The ore milled at the Mponeng plant follows a standard cyanide leach, CIP, and electrowinning process in order to extract the gold bullion. The plant is designed to process 95tph of ore (Table 14-1). The plant capacity is well-matched to accommodate the total ore feed from Kusasalethu and Mponeng, and the gold produced is in line with the forecast ounces. (Table 14-2).

Table 14-1: Key Equipment Specifications at Mponeng Gold Plant


Equipment	Unit	Capacity
Mill Silo (per silo – 3 silos)	Volume / silo (m3)	3,478
	Tonnes	3,500
ROM Mill (per mill – 3 mills)	Volume / tank (m3)	127
Leach (10 leach tanks)	Dry Tonnes / tank	1,011
CIP (8 tanks)	Volume / tank (m3)	231
	Dry Tonnes / tank (t)	159
Acid Wash (2 tanks)	Volume / tank (m3)	10.1
	Carbon (t)	5
	Cycle time (hr)	3
Elution (3 tanks)	Volume / tank (m3)	11.3
	Carbon (t)	5
	Cycle time (hr)	12
Thickener (3 thickeners)	Volume / thickener (m3)	1,590
	Dry Tonnes (t)	5,620

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 14-1: Schematic Flow Diagram of the Metallurgical Process

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 14-2: Design Throughput Versus Actual Throughput at Mponeng Gold Plant


	Throughput
Equipment	Design (t/hr)	Actual (t/hr)
Mill	95	75
Leach	300	223
CIP	300	223
Thickener	160	110

Table 14-3: Leaching Process Material and Properties


Process Requirements			Properties
pH			10.5 - 11.5 (controlled by lime addition)
Cyanide			180 - 300ppm as 100% NaCN
Leaching Time			24 – 40 hours
Oxygen			Air or oxygen sparged, 5 - 25 ppm O2
Cyanide Relative Density			1.38 - 1.45, 40-50% solids at SG 2.7

14.3Energy, Water, Process Material and Personnel Requirements

The Mponeng plant operates 365 days a year, with the exception for scheduled routine maintenance. The facility has a long operational history, and the planned mill feed rate for the remaining Kusasalethu operating life fits well with historical production statistics. Harmony expects that the Mponeng plant will have adequate energy, water, process material and labour required for processing ore from Kusasalethu and Mponeng.

14.3.1Energy

The energy requirements are noted in Table 14-4.

Table 14-4: Mponeng Plant Energy Requirements


Area	Unit	Average / month
Mponeng Gold Plant	kWh	8,371,204

14.3.2Water

The water infrastructure for the Mponeng plant includes supply and return water pipelines, and process water storage tanks. As a measure to minimise water consumption, clear overflow water from the metallurgical process is recycled to the process water storage tanks. In addition, the plant monitors water balance on a monthly basis using GoldSim modelling software. The purpose of the software is to keep track of demand for external water source requirements for the metallurgical process. The water consumption rate for Mponeng plant milling process is 15.31l/t/month.

14.3.3Process Material

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 14-5: Consumables


Equipment	Unit	Value
Steel Balls	Steel balls / annum	550
Lime	tpm	67,500
Flocculant	tpm	3,000
Cyanide	tpm	51,750
Carbon	tpm	6,000

14.3.4Personnel

The Mponeng plant has experienced management and staff for operating and technical functions, as well as support staff that is responsible for administration. The personnel requirements are summarised in Table 14-6.

Table 14-6: Mponeng Plant Personnel Requirements


Department			Personnel
Absorption			14
Backfill			9
Leach			8
Milling			48
Ore Reception			17
Smelt House			11
Tailings			7
Thickeners			10
Other			23
Mponeng Gold Plant Total			192

14.4Commentary on the Processing and Recovery Methods

The Mponeng Gold Plant has been in operation since 1986 and, as such, the processing method is considered well established for the style of mineralisation processed. The plant makes use of historical trends and data as a basis for the forecast processing parameters, except for instances where projects are planned for optimisation, for which appropriate test work is done.

The metallurgical process is a well-tested technology which has been in operation since 1986. The recoveries used in the business plan are based on historical performance. The methodology applied did not use the 18 month historic grades, due to the fact that Kusasalethu ore was moved to the Mponeng plant in July 2021, the recoveries used were based on a combination of a six month history, Mponeng plant historical performance and outlook. The actual monthly head grades were reviewed and the relationship between the head grade and recovery were used as base for the 2022/23 Business Plan (“BP”) metallurgical recoveries, taking into consideration the relevant forecast head grades (Figure 14-2).

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 14-2: Graph of VCR Historical Recovery Factor (18 month actual)
Note: VCR Applied signifies the recovery according to the monthly average which will be applied for VCR recovery used in the budget.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

15Infrastructure

Section 229.601(b)(96) (15)

Kusasalethu is an established operation and as a result, it has adequate access to the infrastructure required to meet the planned LOM production schedules.

15.1Surface Infrastructure

The infrastructural layout includes hauling and hoisting facilities; logistical support for core handling, sampling, and transporting; a mineral processing plant; marginal ore and waste processing facility; roads; water and power supply; ventilation and refrigeration systems; stores and workshop support; electrical supply; offices; housing and security. The surface infrastructure used by Kusasalethu also includes the Mponeng Gold Plant and associated tailings storage facility. The location of the Kusasalethu and Mponeng surface infrastructure is presented in Figure 15-1. The infrastructure associated with Kusasalethu is presented in Figure 15-2, whilst the Mponeng Gold Plant infrastructure is presented in Figure 15-3.

15.1.1Ore and Waste Rock Storage Facilities

Ore mined at Kusasalethu is classified into gold bearing ore and marginal ore. The gold bearing ore is transported by road to the Mponeng Gold Plant (Figure 15-1) where it is processed. Ore is deposited onto the run of mine (“ROM”) stockpile located adjacent to the plant.

Marginal ore and waste are transported and deposited on the marginal ore facility, adjacent to the Kusasalethu Plant. The marginal and waste ore is processed at the Kusasalethu Plant to make backfill. The existing physical extent on site for this waste dumping is sufficient.

15.1.2Tailings Storage Facilities

As the ore mined is processed at the Mponeng Gold Plant, a description of the tailings storage facility (“TSF”) at Mponeng is provided below. The TSF at Kusasalethu is utilised by a different business unit.

The Mponeng TSF is located to the south western section of the Mponeng mining right area (Figure 15-1). The TSF is currently active and is owned and operated by Mponeng. All waste material from the mineral processing activities at Mponeng is accumulated at this TSF. The initial TSF operations began in 1990. Incidental ore recovered since the inception of development and mining in 1986, until the commissioning of the tailings facility, was transported and processed via the Savuka infrastructure system.

15.1.3Power and Electrical

The Kusasalethu Mine power supply is designed to satisfy the planned LOM production and service requirements. Main power supply is managed and distributed via electrical sub-stations located on site, as represented in Figure 15-3. The total power requirement for Kusasalethu is 119MVA, with the maximum notified demand to Eskom averaging at 110MVA. The noted power requirements include the Kusasalethu plant, which is essential for backfill generation.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 15-1: Kusasalethu and Mponeng Surface Mine Layout and Infrastructure

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 15-2: Kusasalethu Surface Infrastructure
Source: Google Earth Image Date: March 2021

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 15-3: Mponeng Plant Surface Infrastructure
Source: Google Earth Image Date: March 2021

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 15-4: Kusasalethu Mine Shaft and Underground Infrastructure

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

15.1.4Water Usage

Kusasalethu utilises approximately 2,800Ml of water per annum.

15.2Underground Infrastructure and Shafts

Kusasalethu underground infrastructure consists of twin surface shafts extending to a depth 2,334m below datum (Figure 15-4) and the sub vertical system to a depth of 3,582m below datum. The underground infrastructure also includes the associated winders and fans (Figure 15-4) need to facilitate the underground access.

Several refrigeration plants are operational, providing chilled water to the bulk air coolers on the working levels. Additional ventilation is exhausted at the adjacent Deelkraal mine.

All movement is systematically facilitated by respective man and material tramming sections. Underground broken rock handling is track-bound via locomotive material cars. These movements are supported by traffic management systems, including control room monitoring, decline logistics control, etc. Rock is transferred via gravity feed to the main silo infrastructure, located on 115 level. Rock from the 115 level silos is transferred to surface by means of the sub-shaft and vertical shaft systems.

15.3Commentary on Infrastructure

The operational infrastructure including road, rail, offices, security services, water and power supply is adequate, and is shared with the Harmony operations in the relevant areas. Overall, Kusasalethu is well-established with sufficient logistical and infrastructure support for the existing and planned mining operations.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

16Market Studies

Section 229.601(b)(96) (16) (i-ii)

Gold is traded in a variety of markets/exchanges both in physical form through over the counter (“OTC”) markets, bullion banks and metal exchanges etc., and through passive investments such as exchange traded funds (“ETF’s”), which are based on gold prices and units representing physical gold which may be in paper or dematerialised form. Demand is driven by the jewellery market, bar and coin, use in technology, ETF’s and other financial products, and by central banks. An overview of the gold market is given in the following sections based mainly on data from the World Gold Council and GoldHub websites.

16.1Market Overview

16.2Global Production and Supply

Gold production and supply is sourced from existing mining operations, new mines and recycling.

16.2.1New Mine Production

16.2.2Recycling

16.3Global Consumption and Demand

16.3.1Jewellery

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

16.3.2Investment

16.3.3Currency

16.4Gold Price

16.4.1Historical Gold Price

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

16.4.2Forecast Gold Price

The gold price forecast of USD1,546/oz is conservative if corroborated against a long-term broker consensus gold price outlook (Figure 16-2).

16.4.3Harmony Group Gold Hedging Policy

Harmony has a hedging policy which is managed and executed at Group treasury level on-behalf of its operating entities. The key features of the hedging programme are as follows:

•the policy provides for hedging (or forward selling) up to a maximum of 20% of expected gold production for a rolling 24-month period;

•the policy has no minimum quantity that should be hedged, and if an attractive margin above cost cannot be achieved (i.e., in a low gold price environment) then no hedges are entered into;

•Harmony enters into ZAR-denominated gold hedges for its South African operations (for the non-South African assets it enters into USD-denominated hedges);

•Kusasalethu does not enter into hedges in its own name but delivers bullion to Rand Refinery for refining on behalf of Harmony. Rand Refinery is one of the world’s largest single-site precious metals refining and smelting complex in the world. Rand Refinery refine all of Harmony’s gold to at least 99.5% purity, and acting as agent, sells the gold on the daily spot London fixing price and make payment to the Harmony two days later;

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

•Kusasalethu does its mine planning and financial forecasts based on the estimated future gold price provided by the Group treasury, but its year-end actual financial results reflect the received gold price inclusive of the benefit of the hedging programme. Therefore, in theory, Kusasalethu receives a hedged gold price for a maximum of 20% of its gold sales with the balance attracting the spot price.


Figure 16-1: Graph of Annual Gold Price History – ZAR/kg
Source: https://www.gold.org/goldhub/data/gold-prices
Figure 16-2: Graph of Consensus View of Forecast Gold Price

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

16.5Commentary on Market Studies

16.6Material Contracts

Harmony has contractual vendor agreements with various service providers and suppliers. A list of the most significant of these contracts which are currently in place to support mining operations at Kusasalethu is presented in Table 16-1. All of the listed contracts are currently valid and in good standing. Terms, rates and charges of contracts are considered consistent with industry norms. Contract management processes are in place and resourced so that contracts re-tendered and/or renewed as they approach expiry.

Table 16-1: Material Contracts


Vendor Name			Nature of Service /Supply
Rosond (Pty) Limited			Underground Diamond Drilling
Axis Mining and Construction (Pty) Limited			Secondary support services
EBJ Gauteng (Pty) Limited			Drop Raising Services
Intasol Tailings (Pty) Limited			The management and maintenance of Kusasalethu TSF

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

17Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Section 229.601(b)(96) (17) (i-vii)

The South African Government has an extensive legal framework within which mining, environmental and social aspects of the industry are managed. Harmony and its Kusasalethu operation is primarily regulated and managed by certain principal Acts (as listed in Section 17.3) as well as corporate policies, management systems and certain industry-wide guidelines, including:

•Energy Efficiency and Climate Change Policy;

•Environmental Policy;

•Harmony Water Management Strategy;

•Biodiversity and Rehabilitation Position Statement;

•Socio-Economic Transformation Policy; and

•Corporate Social Responsibility Policy.

17.1Results of Environmental Studies

Kusasalethu has prepared multiple Environmental Impact Assessments (“EIA”) for regulatory approval, which under the current legal framework, require stakeholder engagement. Certain specialist studies are undertaken during operations to consciously to better understand the operations’ impacts on the environment. For example, bio-monitoring surveys are conducted periodically on streams in the vicinity of the operations. The objectives of the survey are to establish the aquatic health of rivers and streams, the water quality as wells as establish baseline reference conditions required for future studies. The biomonitoring survey conducted in 2021/22 indicated that the in-situ water quality results showed variable pH levels ranging from marginally acidic to marginally alkaline. In some areas the conductivity levels varied where some levels have exceeded the recommended guideline. Of the tested toxicity samples, only the Loopspruit Catchment Site Kusasalethu South presented a hazard towards the aquatic environment. This may have been due to the low dissolved oxygen or one (or more) of the exceedances. The water quality has been altered because of the raw or inadequately treated sewage and solid waste pollution as well as the mining activities in the area this limits the colonization of aquatic biota within the assessed ecosystem.

Kusasalethu environmental aspects and impacts are managed according to the Environmental Management Program (“EMPR”) approved by DMR in terms of Mineral and Petroleum Resource Development Act of 2004 and National Environmental Management Act 107 of 1998. All environmental aspects and impacts emanating from mining activities are documented in the two approved EMPR and the environmental aspect register as required by MPRDA and ISO 14001:2004 standard.

17.2Waste and Tailings Disposal, Monitoring & Water Management

The process of mining and beneficiation produce significant waste, typically consisting of 1) solid waste in the form of waste rock and overburden, 2) liquid wastes in the form of wastewater and tailings slurry and 3) gaseous emissions such as liquefied petroleum gas. Harmony recognises that responsible and effective waste management can positively reduce its environmental impacts and mitigate associated environmental liabilities.

Waste management is thus a priority focus area. Internally, guidelines on mineral, non-mineral and hazardous waste materials are included in the environmental management systems (“EMS”) implemented at Kusasalethu.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Tailings comprises of crushed rock and process water emitted from the gold elution process in the form of slurry once gold has been extracted. As tailings contain impurities and pollutants, they are placed in TSF engineered to contain them, in line with Harmony's tailings management programme and the Global Industry Standard on Tailings Management (“GISTM”). Harmony's overall tailings management strategy is to ensure robust, meticulous engineering and dam design, along with a continual focus on management of risks through layered assurance and oversight.

The focus areas include, but are not limited to:

•freeboard control;

•water management;

•maintaining stability and the safety factor as advised by the engineer of record;

•erosion controls; and

•monitoring and control measures implemented to ensure continued compliance (including regular inspections, audits, and meetings on varying intervals with subsequent actions, minutes and reports).

As part of its mining, environmental and water approvals and licences, Harmony is required to implement monitoring programmes and plans to establish the operations impact on the environment. The compliance limits for the monitoring variable are included in the applicable EMPR(s), WUL(s) and environmental authorisations. The environmental monitoring implemented at Kusasalethu includes:

•ground and surface water monitoring

•biodiversity monitoring;

•waste classification and quantification;

•integrated waste and water management plan updates;

•water balance reviews;

•licence and authorisation compliance reviews; and

•air quality (i.e., noise and dust) and greenhouse gas emissions ("GHG") monitoring.

17.3Permitting and Licences

In respect of environment, the following national Acts and the regulations promulgated thereunder provide the regulatory framework for mine permitting and licencing in South Africa:

•Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”);

•National Environmental Management Act, 1998 (“NEMA”);

•National Environmental Management: Waste Act, 2008 (“NEM:WA”);

•National Environmental Management: Air Quality Act, 2004 (“NEM:AQA”); and

•National Water Act, 1998 (“NWA”).

A summary of the status of environmental permits and licences issued at the effective date related to Kusasalethu are presented in Table 17-1. Kusasalethu environmental aspects and impacts are managed according to the EMPR as approved by the DMRE in terms of the MPRDA. All environmental aspects and impacts emanating from mining activities are documented in a dedicated report and in the environmental aspect register as required by the act and the ISO 14001:2015 standard.

All relevant mining, environmental and water-use permits are in place that cover the environmental, archaeological, and hydrological components of Kusasalethu Mine.

The operation has a digital environmental legal register on an off-site server this is used to monitor compliance and to obtain applicable and relevant environmental legal updates for the operation.

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 17-1: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

EMPR

GP30/5/1/2/3/2/1(07) EM

DMRE

2018

LOM

Mining Right

GP30/5/1/2/2 (07)MR

DMRE

2018

LOM

Water Use License

08/C23J/AJFG/1019

DWS

2018

2040

Note: LOM - Life of mine

In addition, the operation has retained its ISO14001 accredited and conforms the requirements of ISO14001: 2004 standard, the operation is also International Cyanide Management Institute (“ICMI”) accredited and audited annually as per ISO14001 requirements and Cyanide Management Code.

All permits are audited regularly for compliance and no material risks to the operations have been identified. Applications for the environmental permits and licences have been submitted or being considered by the relevant authorities to ensure compliance and alignment with operations LOM requirements. To this end, applications have been submitted to amend the 2014 EMPR to account for the change in the WRD and TSF footprint, reclamation of the WRD and the expansion of the existing underground workings.

17.4Local Stakeholder Plans and Agreements

•contribute to areas that will have the most meaningful socioeconomic impact on communities, namely infrastructure, education and skills development, job creation and entrepreneurial development;

•enhance broad-based local and community economic empowerment and enterprise development initiatives;

•facilitate socio-economic development in local communities by means of a social and labour plan (“SLP”) and corporate social responsibility programmes;

•support arts, culture, and sports and recreation; and

•build relationships based on trust within host communities.

In South Africa, mining companies are required to have a SLP which forms an important component of Harmony's community investment plan and is a prerequisite to securing and maintaining a mining right. It sets out the Company’s obligation to develop and implement comprehensive human resource development programs, community development plans, housing and living condition plans and employment equity plans.

The ultimate aim of the SLP is to ensure the upliftment of the social and economic circumstances of local communities surrounding the mine and, with progress required to be reported each year. The most recent progress on various SLP initiatives and commitments is reported on annually and is available on the Company’s corporate website. Harmony has budgeted to spend approximately ZAR10.8m annually over the over LOM to ensure it meet its SLP and local economic development commitments.

17.5Mine Closure Plans

Harmony makes provision for closure and rehabilitation both for accounting purposes and as required under the MPRDA.

The statutory obligation for all environmental rehabilitation at Kusasalethu is administered by the DMRE and requires the preparation of a closure plan, the development of a cost estimate, and financial assurance. The Company makes an annual submission to the DMRE setting out the cost of closure in accordance with the MPRDA and the regulations issued thereunder.

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Harmony appointed Digby Wells Environment (“Digby Wells”), independent environmental consultants, to review and update the closure cost for Kusasalethu and Deelkraal Shafts and its associated infrastructure. The mine closure assessment was done in terms of regulation 53 and 54 of the MPRDA and in accordance with the requirements of NEMA. The closure cost was calculated by Digby Wells at ZAR262m which represents the cost to close the operation in its current state as at 30 June 2022.

17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups

Risk management and mitigation measures are addressed in the environmental management plans and will be effective to mitigate risks and impacts to acceptable levels should the measures be implemented according to the specialists’ recommendations. Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure at Kusasalethu.

17.7Local Procurement and Hiring

Portable skills are developed through expanded learning programmes, learnerships and other programmes opened only to operating communities and areas where labour is sourced. Local procurement is being supported where there is a skills shortage. Harmony has included this in the Mining Charter annual compliance budget of approximately ZAR5.4m over the duration of the LOM towards local economic development. Compliance against the Mining Charter is reported is reported on annually and is available on the Company’s corporate website.

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Periodic inspections are conducted by the DMRE to verify compliance with applicable environmental laws, regulations, permits and standards. In addition, Kusasalethu has implemented an EMS in line with the ISO 14001 standard. The EMS is audited on an annual basis by a third party and includes the needs and expectations of interested parties.

As part of Harmony, Kusasalethu conducts its operation based on policies and systems that are aligned to its corporate sustainable development framework. Although Harmony is not a signatory to the International Council on Mining and Metals or the UN Global Compact, these form the guiding principles of the framework. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (“GRI”). Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (“CDP”) for both climate change and water. The CDP runs the global environmental disclosure system that supports companies to measure and manage their risks and opportunities on climate change, water security and deforestation.

Harmony has a good understanding of the environmental and social aspects of the operations through baseline and specialist studies previously conducted.

Risk management and mitigation measures were adequately addressed in the environmental management plans and will be effective to mitigate risks and impacts to acceptable levels should the measures be implemented according to the specialists’ recommendations. Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure at Kusasalethu. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Economic parameters for the Harmony Group, including capital and operating costs, are determined, and signed off by the CODM, before distribution to the business units, including Kusasalethu. The capital and operating costs are reported in ZAR terms and on a real basis. Rounding of figures may result in minor computational discrepancies.

18.1Capital Costs

The reported capital cost estimates for Kusasalethu include costs associated with abnormal expenditure (“AE”), shaft projects, major projects, and operating capital, as presented in Table 18-1. There are no contingencies included in the costs, the capital cost estimates are known to a high level of confidence. The forecast capital cost estimates are modelled in the Kusasalethu cash flow. The costs relating to the Mining Charter Compliance (“MCC”) are determined by Kusasalethu’s SLP requirements and modelled accordingly in the SLP model. The costs presented in Table 18-1 were sourced from the SLP model.

Table 18-1: Summary of Capital Cost Estimate for Kusasalethu


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2024)
AE			62,419
Shaft Projects			9,710


Total			72,129

18.2Operating Costs

A summary of the direct and indirect operating cost estimates for Kusasalethu and presented in Table 18-2. The operating cost estimates are based on historical performance, taking expected changes in the new financial year into account (such as electricity requirements, increased/decreased labour costs), and used as an input into the Kusasalethu cash flow model.

Table 18-2: Summary of Operating Cost Estimate for Kusasalethu


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2024)
Mining			3,002,706
Services			544,547
Medical Hub / Station			104,208
Engineering			2,645,345
Workshops			24,398

Total Direct Costs			6,321,204
Mine Overheads			219,556
Royalties			34,111
Ongoing Capex			68,877
Total Cost			6,643,748

18.3Comment on Capital and Operating Costs

The forecast Kusasalethu capital and operating cost estimates are based on previous performance, taking the budget updates for the new financial year into account. A record of the forecast and budget costs is maintained by the operation, allowing for an assessment of the alignment of the forecast and actual costs. The forecast costs are reliable and known to a high level of confidence. The approach used for the estimation of capital and operating costs is consistent with industry practice.

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

19Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

19.1Key Economic Assumptions and Parameters

The economic assumptions used in the economic analysis are sourced from the CODM, which derives, reviews, approves, and distributes the assumptions to its various business units. Annually, the CODM receives long-term commodity prices and exchange rate forecasts from various financial institutions during the period from October to November. In addition, a specialist in Economics from a reputable economics company based in South Africa provides expert views on global markets, as well as forecasts on commodity prices, exchange rates, consumer price index, production price index, electricity costs and consumables’ increases. These factors are analysed, taking cognisance of the requirements of the NYSE and JSE market, and presented to the CODM for recommendations and approval. These assumptions are then applied at Kusasalethu, together with specific operational considerations.

19.1.1Metallurgical Recoveries

The metallurgical recoveries are those provided in Section 12.2. A plant recovery factor of 95% has been applied.

19.1.2Gold Price

The proposed gold price (USD1,546/oz) is the price that is used by Harmony for the Kusasalethu annual planning cycle and forms the basis for the gold price assumptions used in the Kusasalethu cash flow. The reader is referred to Figure 16-2 for the consensus forecast gold price. The conversions used in the calculation of the various gold prices is presented in Table 19-1.

Table 19-1: Conversion Rates used in Cash Flow


Economic Factors	Gold Price (USD/oz)	Conversion Factor (oz/kg)	Exchange Rate (ZAR:USD)	Gold Price (ZAR/kg)
2022 Mineral Resource	1,723	32.15	15.35	850,191
2022 Mineral Reserve	1,546	32.15	15.35	763,000
2023 forecasted gold price	1,546	32.15	15.35	763,000
Notes: The forecast gold price as used in the Kusasalethu cash flow.

19.1.3Exchange Rate

The consensus minimum and maximum ZAR:USD exchange rate for the year 2021 Q4 to year 2024 is presented in Figure 19-1. The long-term exchange rates are not relevant for Kusasalethu as they go beyond the end of its mine life. The volatility in the ZAR has continued against the USD resulting in the ZAR:USD exchange rate fluctuating.

Forecasts as advised from various financial institutions show that the ZAR/USD is expected to trade in a range of ZAR15.13:USD – ZAR15.83:USD for the period 2022 to 2025 with a long-term outlook of ZAR15.83:USD in the short term. In addition, the CODM has reviewed the ZAR:USD exchange rate performance over the past three years, for the period June 2019 - June 2022 (Table 19-2).

Table 19-2: ZAR:USD Exchange Rate Performance (June 2019 – June 2022)


Period			Average Exchange Rate (ZAR:USD)
July 2019 to June 2020			15.68
July 2020 to June 2021			15.41
July 2021 to June 2022			14.75
3-Year Ave. (not weighted)			15.28

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa


Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast

The proposed spot exchange rate of 15.35 ZAR:USD is the exchange rate that is used by Harmony for the Kusasalethu annual planning cycle and forms the basis for the ZAR:USD exchange rate assumptions used in the Kusasalethu cash flow.

19.1.4Royalties

Royalty is an expense paid to the government of South Africa and is accounted for in the Kusasalethu cash flow models. In terms of the mining ring-fencing application, each ring-fenced mine is treated separately, and deductions can normally only be utilised against mining income generated from the relevant ring-fenced mine.

19.1.5Capital Expenditure

At Harmony, capital is allocated to the mines with a longer life. Kusasalethu currently has a relatively short LOM model, and therefore has small amounts dedicated to capital expenditure. Detailed capital costs are presented for Kusasalethu in Table 18-1.

19.1.6Operating Expenditure

19.1.7Working Capital

Working capital forms part of the total cost model applied to the LOM plan.

19.1.8Taxes

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			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Accounting depreciation is eliminated when calculating the South African mining tax income. Excess capital expenditure is carried forward as unredeemed capital to be claimed against future mining taxable income.

19.1.9Closure Cost and Salvage Value

The closure cost estimates are those provided in Section 17.5; no account has been taken of any potential salvage value.

19.1.10Summary

The key assumptions used in the cash flow are summarised for Kusasalethu in Table 19-3.

Table 19-3: Key Economic Assumptions and Parameters


Parameter	Unit	Value
Production Rate	ktpm	672
Gold Recovery	%	95.5
Royalty	%	Formula
Tax Rate	%	Formula
Gold Price	ZAR/kg	763,000
Exchange Rate	USD:ZAR	Variable
Discount Rate	%	9.00

19.2Economic Analysis

The discounted cash flow model is used to calculate the Net Present Value (“NPV”) of the investments. The Kusasalethu NPV at the spot metal price is approximately ZAR57m, at a discount rate of 9%. The NPV is calculated on a cash flow that accounts for factors such as:

•mining and ore processing working costs;

•royalty payments;

•capital costs, including costs allocated to ongoing development;

•any significant project work considered as major projects; and

•costs deemed as abnormal expenditure.

19.3Sensitivity Analysis

The economic assumptions, cash flow breakdown and economic analysis form the basis of the sensitivity analysis. The sensitivity analysis considers various scenarios, for which the project NPV is calculated. The sensitivity analyses on the Kusasalethu cash flow model are shown in Table 19-5, Table 19-6 and Table 19-7.

Harmony reviewed its exposure in terms of South Africa’s political instability, the impact of the COVID-19 pandemic, the exchange rate, and the gold price, as well as the likely impact of these factors on its financial assets and financial liabilities. Based on the review, the CODM determined a variance of ±10% for the sensitivity analyses.

The sensitivity analyses are done on selected production scenarios, the commodity price assumption (ZAR/kg), total operating costs (including capital costs and royalties paid) in ZAR terms, and a combined analysis considering all the factors.

Capital investments in Kusasalethu are relatively low and therefore not expected to have a significant impact on the NPV and thus not included in the sensitivity analysis.

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

Table 19-4: Kusasalethu Cash Flow


Item	Units	Total LOM	FY 2023	FY 2024
Mining advance	m2	294,727	143,040	151,687
Ongoing Capital Development (OCD)	m	1,284	1,284	0
Milled tons	t ('000)	1,343,257	650,881	692,376
Yield	g/t	6.66	6.58	6.73
Gold recovered	kg	8,941	4,283	4,658
Revenue	ZAR'000	6,822,194	3 267 935	3,554,259
Total costs (including OCD)	ZAR'000	6,609,636	3,297,549	3,312,087
Mining Charter Compliance (MCC)	ZAR'000	26,299	13,150	13,149
Capital (excluding OCD)	ZAR'000	72,129	72,129	0
Royalty	ZAR'000	34,111	16,340	17,771
Total costs (including capital and royalty)	ZAR'000	6,742,175	3,399,167	3,343,008
Profit (after OCD and capital)	ZAR'000	80,018	-131,233	211,251
NPV - (low discount rate - 9%)	@9%	57
NPV - (medium discount rate - 12%)	@12%	51
NPV - (high discount rate - 15%)	@15%	46

Table 19-5: Production Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost¹ (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
10%	9,835	763,000	7,504,413	6,742,175	762,238	656,000
5%	9,388	763,000	7,163,303	6,742,175	421,129	357,000
LOM Plan	8,941	763,000	6,822,194	6,742,175	81,019	57,000
-5%	8,494	763,000	6,481,084	6,742,175	-261,091	-242,000
-10%	8,047	763,000	6,139,974	6,742,175	-602,201	-542,000
Note: 1. Total operating cost, including capital and royalty (ZAR).

Table 19-6: Gold Price Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost¹ (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
10%	8,941	839,300	7,504,413	6,742,175	762,238	656,000
5%	8,941	801,150	7,163,303	6,742,175	421,129	357,000
LOM Plan	8,941	763,000	6,822,194	6,742,175	81,019	57,000
-5%	8,941	724,850	6,481,084	6,742,175	-261,091	-242,000
-10%	8,941	686,700	6,139,974	6,742,175	-602,201	-542,000
Note: 1. Total operating cost, including capital and royalty (ZAR).

Table 19-7: Total Operating Cost Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost¹ (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR'000)
10%	8 941	763,000	6,822,194	7,416,392	-594,199	-536,000
5%	8 941	763,000	6,822,194	7,079,284	-257,090	-239,000
LOM Plan	8 941	763,000	6,822,194	6,742,175	80,019	57,000
-5%	8 941	763,000	6,822,194	6,405,066	417,128	354,000
-10%	8 941	763,000	6,822,194	6,067,957	754,236	651,000
Note: 1. Total operating cost, including capital and royalty (ZAR).

The insights that can be provided by this sensitivity analysis is that the project NPV for Kusasalethu Mine is most sensitive to changes in the gold price (ZAR/kg), closely followed by changes in total operating costs (ZAR).

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

20Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

Kusasalethu lies adjacent and to the west of the Mponeng, TauTona and Savuka mines. All mines are 100% owned by Harmony and collectively form the West Wits operation. TauTona and Savuka have completely mined out the VCR horizon, while some infrastructure is still available on the CLR horizon. The remaining portions of CLR Mineral Resource from these two mines was transferred to Mponeng in 2017 as at the time they were placed under and care and maintenance with intention to move towards eventual closure. Blyvooruitzicht Gold (Pty) Limited and Sibanye-Stillwater Limited own and operates other gold mines located to the northeast and northwest of Mponeng.

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

21Other Relevant Data and Information

Section 229.601(b)(96) (21)

Public disclosure reports on Kusasalethu’s operational, financial and environmental performance are available on the Company’s corporate website. The following reports are relevant to this TRS:

•Integrated annual report 2022;

•ESG report 2022;

•Financial report 2022;

•Report to shareholders 2022;

•Operational report 2022;

•Task Force on Climate-related Financial Disclosures (“TCFD”) report; and

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

22Interpretation and Conclusions

Section 229.601(b)(96) (22)

Kusasalethu is a well-established mine and has been in operation since commissioning in 1978. The asset was acquired by Harmony in October 2001. Harmony has no known risks to conduct mining activities over the permitted mining rights’ areas, incorporated as Kusasalethu. In addition, no known risks are posed over surface access and activities, regarding mining related activities.

The gold-bearing conglomerates at Kusasalethu are found in the northwestern margin of the Archean Witwatersrand Basin, a prominent gold deposit in the world. These gold bearing conglomerates are mostly confined to their horizons known as reefs. The VCR, hosted in the Kimberley and Booysens domain, is continuously developed across the entire Kusasalethu mining area and is currently the only economically mined reef.

Kusasalethu’s regional geological setting, mineralisation and deposit is well understood. The geology is supported by seismic survey and, surface and underground drilling findings. The geological anomalies, synonymous with the VCR Reef are identified, defined, and managed by the Kusasalethu Geology Department. Planned targeted exploration for the 2022/2023 period is aimed at 3,400m.

The sampling approach and management, density assumptions, laboratory procedures, and assaying and analysis are in keeping with industry standards and practices and is appropriate for the Witwatersrand and VCR-type mineralisation. The holistic understanding of the regional geology, lithological and structural controls of the mineralisation at Kusasalethu is sufficient to support the estimation of Mineral Resources.

The combined Measured and Indicated Mineral Resource, exclusive of Mineral Reserves, as at 30 June 2022 is 9.535Mt at 9.67g/t gold, containing 2.966Moz of gold, and the Inferred Mineral Resource contains 2.025Mt at 8.85g/t gold, containing 0.576Moz of gold.

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and operational mine planning processes. Mine planning utilises and takes into consideration actual technical parameters. In addition, conversion of the Mineral Resources to Mineral Reserves considers Modifying Factors, dilution, ore losses, minimum mining widths, planned mine call and plant recovery factors. The Mineral Reserve is 1,343Mt of milled ore at 6.97g/t, containing 0.301Moz as at 30 June 2022.

Silver or any other by-products that are recovered as part of the refining process, make up an immaterial component of the total metal inventory, and is thus not reported as part of the Mineral Reserve estimates. There are no obvious material risks that could have significant effect on the Mineral Reserves.

Gold bearing ore mined at Kusasalethu is processed at the Mponeng processing facility which has been in operation since 1986 and, as such, the processing method is considered well established for mineralisation at Kusasalethu. The plant therefore makes use of previous trends and data as a basis for their recoveries of VCR.

Metallurgical test work was undertaken to identify the optimal blend of Kusasalethu to Mponeng ores to be treated through the plant. The results identified the optimal blend to be a ratio of Kusasalethu 40:60 Mponeng.

The Kusasalethu Plant is only used for processing marginal ore, and for generating backfill material for mining operations.

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

The mine’s regional and local infrastructure is capable of fully supporting the mining and surface related mining activities. Kusasalethu is accessed via national and provincial road networks, has key power transmission and distribution networks provided by the national electricity regulator, water supply networks and communication infrastructure. Overall, Kusasalethu is well-established with sufficient logistics and infrastructure support for the existing and planned mining operations.

Harmony and Kusasalethu are exposed to market risks such as exchange rate and gold price fluctuations which are partially offset by the Harmony Group hedging policy. The hedging programme takes into account factors effecting the global gold market and these, along with macro-economic conditions, are used to determine planning and forecasting inputs at group level for all of Harmony’s operating business units. Other non-gold related risks are addressed to some extent by Kusasalethu entering into vendor agreements for the provisions of supplies and services which are done on a competitive basis with customary price adjustment, renewal and termination clauses.

To successfully operate a mining operation in South Africa the state requires compliance with applicable environmental laws, regulations, permits and standards. Kusasalethu adheres to said compliance and regulatory standards and have, in addition, implemented an Environmental Management System in line with the ISO 14001.

As part of Harmony, Kusasalethu conducts its operations based on policies and systems that are aligned its corporate sustainable development framework. This is guided by the principles of the framework from the International Council on Mining and Metals or the United Nations Global Compact. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative. Further to this, Harmony discloses environmental information on the Carbon Disclosure Project for both climate change and water.

Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure at Kusasalethu. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.

The economics of Kusasalethu is based on the discounted cash flow model, with a spot price of ZAR763,000/kg. The NPV for the spot metal price, is ZAR57m, at a discount rate of 9%. The NPV is calculated on cash flow that takes factors such as: capital and operating costs; and royalties. The capital and operating cost estimates for Kusasalethu are based on historical data, as well as budget forecasts. This estimation technique allows for the forecast and actual costs to be aligned.

The economics of Kusasalethu are tested for its sensitivity to commodity price (ZAR/kg), operating costs (ZAR) gold production (kg). The insights provided by the sensitivity analysis is that Kusasalethu Mine is most sensitive to changes in the gold price (ZAR/kg), closely followed by changes in total operating costs (ZAR).

The TRS was prepared by a team of experienced professionals. The TRS provides a summary of the material scientific and technical information concerning the mineral exploration, Mineral Resources, Mineral Reserves, and associated production activities of the mineral asset, including references to the valuation for Kusasalethu. Each QP was responsible for specific sections of this TRS which they have personally supervised and reviewed. This TRS contains the expression of the QP opinions, based on the information available at the time of preparation.

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

23Recommendations

Section 229.601(b)(96) (23)

The remaining mining life for Kusasalethu is two years. On the basis of the operation’s short mine life, the QP does not have any recommendations for any additional work that will require significant capital investment.

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

24References

Section 229.601(b)(96) (24)

Ackermann, J.D., 2022. Ore Reserve Statement for period ended 30 June 2022, Technical Report for Kusasalethu Gold Mine. Harmony Gold Mining Operations- West Rand Operations, South Africa.

Dankert, B.T., and Hein, K.A.A., 2010. Evaluating the structural character and tectonic history of the Witwatersrand Basin. Precambrian Research 177, 1–22.

https://www.gold.org/goldhub/data/gold-prices. Accessed 22 July 2022.

Harmony. (2022, October 29). Harmony Mineral Resources and Mineral Reserves Report 2022. https://www.har.co.za/22/download/HAR-RR22.pdf

Portela, D., 2021. Independent Audit of the 2021 Mineral Resources and Mineral Reserves.

Robb, L.J., and Meyer, F., 1995. The Witwatersrand Basin, South Africa: Geological framework and mineralisation processes. Ore Geology Reviews, 10(2), 67-94.

Robb, L.J., Robb, V.M., 1998. Gold in the Witwatersrand Basin. In: Wilson, M.G.C., Anhaeusser, C.R. (Eds.), The Mineral Resources of South Africa. Handbook. Council for Geoscience, 294–349.

South African Revenue Services. (2022, July 13). South African Revenue Services. Retrieved from Tax Relief Measures: https://www.sars.gov.za/media/tax-relief-measures/

World Gold Council. (2022, July 13). World Gold Council, Gold Hub, Gold mine production: Gold Production by Country | Gold Production | Goldhub

Effective Date: 30 June 2022


			Technical Report Summary for Kusasalethu Mine, Gauteng Province, South Africa

25Reliance on Information Provided by the Registrant

Section 229.601(b)(96) (25)

Further to Section 24, in the preparation of this TRS, the principal QPs and authors relied upon information provided by the Registrant and other internal specialists with regards to mining rights, surface rights, contractual agreements, historical operating expenditures, community relations and other matters. The work conducted by these experts was completed under the supervision and direction of the respective QPs. The specialists who assisted the principal authors and QPs are listed in Table 25-1.

Table 25-1: Other Specialists


Name	Specialist	Area of Responsibility	Company / Association
BFM Malunga	Mining Engineering	General Manager	Kusasalethu
EA Mofokeng	Mining Engineering	Mining Department	Kusasalethu
GLP van Emmenis	Human Resources Management	Human Resources Department	Kusasalethu
SR Michaels	Valuation	Valuation Department	Kusasalethu
EGD Phenya	Mine Safety	Safety Department	Kusasalethu
NK Mosala	Mine Surveying	Safety Department	Kusasalethu
SJ Allen	Mining Engineering	Risk Management	Kusasalethu
H Kamedza	Electrical Engineering	Engineering Department	Kusasalethu
S Singh	Rock Engineering	Rock Mechanical Engineering Department	Kusasalethu
JR Powell	Geostatistics	Central Geostatistics Harmony North Operations	Central

Effective Date: 30 June 2022

HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Doornkop Mine

Gauteng Province, South Africa

Effective Date: 30 June 2022

Final Report Date: 25 July 2022


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.

Effective Date: 30 June 2022


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Signature Page

/s/ Hilton Chirambadare

___________________________________

Mr Hilton Chirambadare

BSc. (Hons) Geol, GDE, MENG, MBA

SACNASP (No. 400204)

Ore Reserve Manager, Doornkop Mine

Harmony Gold Mining Company Limited

Effective Date: 30 June 2022

Final Report Date: 25 July 2022

Effective Date: 30 June 2022

iii


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

List of Contents


1	Executive Summary			1
2	Introduction			7
3	Property Description			8
	3.1	Mineral Tenure		8
	3.2	Property Permitting Requirements		8
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			11
	4.1	Accessibility		11
	4.2	Physiology and Climate		11
	4.3	Local Resources and Infrastructure		11
5	History			12
	5.1	Historical Ownership and Development		12
	5.2	Historical Exploration		12
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		12
	5.4	Past Production		13
6	Geological Setting, Mineralisation and Deposit			15
	6.1	Regional Geology		15
	6.2	Local Geology		15
	6.3	Property Geology		19
		6.3.1	Kimberley Reefs Lithology	19
		6.3.2	South Reef Lithology	19
		6.3.3	Structure	19
	6.4	Mineralisation		19
		6.4.1	Kimberley Reef Mineralisation	19
		6.4.2	South Reef Mineralisation	22
		6.4.3	Alteration	22
	6.5	Deposit Type		22
	6.6	Commentary on Geological Setting, Mineralisation and Deposit		22
7	Exploration			23
	7.1	Geophysical Survey		23
	7.2	Topographical Survey		23
	7.3	Underground Mapping		23
	7.4	Channel Sampling Methods and Results		23
		7.4.1	Channel Sample Collection Method	23
		7.4.2	Results	23
	7.5	Surface Drilling Campaigns, Procedures, Sampling, Recoveries and Results		24
		7.5.1	Drilling Methods	24
		7.5.2	Collar and Downhole Surveys	24
		7.5.3	Logging Procedure	24
		7.5.4	Drilling Results	24
		7.5.5	Core Recovery	26
		7.5.6	Sample Length and True Thickness	26
	7.6	Underground Drilling Campaigns, Procedures, Sampling, Recoveries and Results		26
		7.6.1	Drilling Methods	28
		7.6.2	Collar and Downhole Surveys	28
		7.6.3	Logging Procedure	28
		7.6.4	Drilling Results	28
		7.6.5	Core Recovery	30
		7.6.6	Sample Length and True Thickness	30
	7.7	Hydrogeology		30
	7.8	Geotechnical Data		30

Effective Date: 30 June 2022


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


	7.9	Commentary on Exploration		30
8	Sample Preparation, Analyses and Security			31
	8.1	Sampling Method and Approach		31
		8.1.1	Channel Samples	31
		8.1.2	Core Samples	31
	8.2	Density Determination		31
	8.3	Sample Security		31
	8.4	Laboratory Sample Preparation		31
	8.5	Assaying Methods and Analytical Procedures		32
	8.6	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)		32
		8.6.1	Field QAQC	32
		8.6.2	Laboratory QAQC	33
		8.6.3	Results	33
	8.7	Comment on Sample Preparation, Analyses and Security		34
9	Data verification			35
	9.1	Data Verification Procedures		35
	9.2	Limitations to the Data Verification		35
	9.3	Comment on Data Verification		35
10	Mineral Processing and Metallurgical Testing			36
	10.1	Extent of Processing, Testing, and Analytical Procedures		36
	10.2	Degree of Representation of the Mineral Deposit		36
	10.3	Analytical Laboratory Details		36
	10.4	Test Results and Recovery Estimates		36
	10.5	Commentary on Mineral Processing and Metallurgical Testing		36
11	Mineral Resource Estimate			37
	11.1	Geological Database		37
	11.2	Global Statistics		37
	11.3	Geological Interpretation		37
	11.4	Structural Wireframe Model		39
	11.5	Compositing		39
	11.6	Capping		39
	11.7	Variography		39
	11.8	Mineral Resource Estimation Methods		39
		11.8.1	Estimation Parameters	39
		11.8.2	Relative Density and Tonnage Calculation	40
		11.8.3	Model Validation	40
	11.9	Mineral Resource Evaluation		40
	11.10	Mineral Resource Classification and Uncertainties		40
	11.11	Mineral Resource Estimate		42
	11.12	Mineral Resource Reconciliation		45
	11.13	Comment on Mineral Resource Estimates		45
12	Mineral Reserve Estimate			46
	12.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve		46
	12.2	Modifying Factors		46
	12.3	Mineral Reserve Estimate		47
	12.4	Mineral Reserve Reconciliation		47
	12.5	Commentary on Mineral Reserve Estimate		47
13	Mining Method			48
	13.1	Sequential Grid Mining		48
	13.2	Mine Design		48
	13.3	Mine Design Parameters		51

Effective Date: 30 June 2022


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


	13.4	Mine Plan Development and Life of Mine Schedule		51
	13.5	Geotechnical and Geohydrological Considerations		53
	13.6	Mining Operations		53
	13.7	Mining Rates		53
	13.8	Mining Equipment and Machinery		53
	13.9	Grade and Dilution Control		55
	13.10	Ore transport		55
	13.11	Mining Personnel		55
	13.12	Commentary on Mining Method		55
14	Processing and Recovery Methods			56
	14.1	Mineral Processing Description		56
	14.2	Plant Throughput, Design, Equipment Characteristics and Specifications		56
	14.3	Energy, Water, Process Material and Personnel Requirements		58
	14.4	Commentary on the Processing and Recovery Methods		58
15	Infrastructure			60
	15.1	Surface Infrastructure		60
		15.1.1	Ore and Waste Rock Storage Facilities	60
		15.1.2	Tailings Storage Facilities	60
		15.1.3	Power and Electrical	60
		15.1.4	Water Usage	60
		15.1.5	Logistics and Supplies	60
	15.2	Shaft and underground infrastructure		64
	15.3	Commentary on Infrastructure		64
16	Market Studies			66
	16.1	Market Overview		66
	16.2	Global Production and Supply		66
		16.2.1	New Mine Production	66
		16.2.2	Recycling	66
	16.3	Global Consumption and Demand		66
		16.3.1	Jewellery	66
		16.3.2	Investment	67
		16.3.3	Currency	67
	16.4	Gold Price		67
		16.4.1	Historical Gold Price	67
		16.4.2	Forecast Gold Price	67
		16.4.3	Harmony Group Gold Hedging Policy	67
	16.5	Commentary on Market Studies		69
	16.6	Material Contracts		69
17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			70
	17.1	Results of Environmental Studies		70
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		70
	17.3	Permitting and Licences		71
	17.4	Local Stakeholder Plans and Agreements		72
	17.5	Mine Closure Plans		73
	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups		73
	17.7	Local Procurement and Hiring		73
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		73
18	Capital and Operating Costs			75

Effective Date: 30 June 2022


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


	18.1	Capital Costs		75
	18.2	Operating Costs		75
	18.3	Comment on Capital and Operating Costs		75
19	Economic Analysis			76
	19.1	Key Economic Assumptions and Parameters		76
		19.1.1	Metallurgical Recoveries	76
		19.1.2	Gold Price	76
		19.1.3	Exchange Rate	76
		19.1.4	Royalties	78
		19.1.5	Capital Expenditure	78
		19.1.6	Operating Expenditure	78
		19.1.7	Working Capital	78
		19.1.8	Taxes	78
		19.1.9	Closure Cost and Salvage Value	78
		19.1.10	Summary	78
	19.2	Economic Analysis		78
	19.3	Sensitivity Analysis		80
20	Adjacent properties			82
21	Other Relevant Data and Information			82
22	Interpretation and Conclusions			83
23	Recommendations			85
	23.1	LIB drilling		85
	23.2	South Reef Exploration		85
24	References			86
25	Reliance on Information Provided by the Registrant			87

Effective Date: 30 June 2022

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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

List of Figures


Figure 3-1: Location of Doornkop			9
Figure 3-2: Mineral Tenure of Doornkop			10
Figure 5-1: Graph of Past Production– Tonnes and Grade			14
Figure 5-2: Graph of Past Metal Production			14
Figure 6-1: Regional Geology of the Witwatersrand Basin			16
Figure 6-2: Stratigraphy of the CRG in the Witwatersrand Supergroup			17
Figure 6-3: Simplified Stratigraphy of the West Rand Goldfield			18
Figure 6-4: Doornkop Cross Section (South – North)			20
Figure 6 5: Doornkop South Reef Geological Structure Plan			21
Figure 7-1: Location Channel Samples collected from the Kimberley Reef (Pre 2014)			25
Figure 7-2: Location of Channel Samples collected from the South Reef (2018 to 2022)			25
Figure 7-3: Location of Surface Drill Holes Intersecting the Kimberley Reef			27
Figure 7-4: Location of Surface Drill Holes Intersecting the South Reef			27
Figure 7-5: Location of Underground Drill Holes Intersecting the Kimberly Reef			29
Figure 7-6: Location of Underground Drill Holes Intersecting the South Reef			29
Figure 11-1: Kimberley Reef Geozones			38
Figure 11-2: South Reef Geozones			38
Figure 11-3: Distribution of Kimberley Reef cmg/t Estimates			41
Figure 11-4: Distribution of South Reef cmg/t Estimates			41
Figure 11-5: Location of Doornkop Kimberley Reef Mineral Resources and Reserves			43
Figure 11-6: Location of Doornkop South Reef Mineral Resources and Reserves			44
Figure 13-1: Plan Showing the SGM Sequence at Doornkop			49
Figure 13-2: Plan view of a Typical Footwall Crosscut at Doornkop			50
Figure 13-3: Section of a Typical Footwall Crosscut and Raise Layout at Doornkop			50
Figure 13-4: Doornkop LOM Plan			52
Figure 13-5: Graph of Doornkop LOM Plan - Tonnes and Grade			54
Figure 13-6: Graph of Doornkop LOM Plan – Gold Produced (kg)			54
Figure 14-1: Schematic Flow Diagram of the Metallurgical Process			57
Figure 14-2: South Reef Historical Plant Recovery			59
Figure 15-1: Doornkop Surface Mine Layout and Infrastructure			61
Figure 15-2: Doornkop Surface Infrastructure			62
Figure 15-3: Doornkop Processing Plant			63
Figure 15-4: Doornkop Schematic of Mine Shaft and Underground Infrastructure			65
Figure 16-1: Graph of Annual Gold Price History – ZAR/kg			68
Figure 16-2: Graph of Consensus View of Forecast Gold Price			68
Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast			77

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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

List of Table


Table 1-1: Summary of the Doornkop Mineral Resource Estimate as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8			2
Table 1-2: Summary of the Doornkop Mineral Reserve Estimate as at 30 June 2022 1-5			3
Table 1-3: Summary of Capital Cost Estimate for Doornkop			4
Table 1-4: Summary of Operating Cost Estimate for Doornkop			4
Table 1-5: Status of Environmental Permits and Licences			5
Table 2-1: List of Responsible and Contributing Authors			7
Table 3-1: Summary of Mineral Rights for Doornkop			8
Table 3-2: Surface Permits held by Doornkop			8
Table 5-1: Summary of Historical Ownership Changes and Activities of Doornkop			12
Table 5-2: Summary of the Previous Doornkop Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)			13
Table 5-3: Summary of the Previous Doornkop Mineral Reserves as at 30 June 2021			13
Table 7-1: Summary of Surface Drilling			26
Table 7-2: Drill Hole Acceptance Criteria			26
Table 7-3: Summary of Underground Drilling			30
Table 8-1: Summary of QA/QC Field Samples			32
Table 8-2: Summary of Analytical Quality Control Data			33
Table 8-3: Summary of CRM performance			33
Table 10-1: Head Grades of Samples			36
Table 11-1: Summary of the Gold Assay Descriptive Statistics for the Kimberley Reef			37
Table 11-2: Summary of the Gold Assay Descriptive Statistics for the South Reef			37
Table 11-3: Harmony Economic Parameters (30 June 2022)			40
Table 11-4: Summary of the Doornkop Mineral Resource Estimate as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8			42
Table 12-1: Doornkop Mineral Reserves Modifying Factors (30 June 2022)			46
Table 12-2: Summary of the Doornkop Mineral Reserve Estimate as at 30 June 2022 1-5			47
Table 13-1: Key Mine Design Parameters			51
Table 14-1: Key Equipment Specifications at Doornkop Gold Plant			56
Table 14-2: Design Throughput Versus Actual Throughput at Doornkop Gold Plant			56
Table 14-3: Leaching process material and properties			58
Table 14-4: Reagent consumption			58
Table 16-1: Material Contracts			69
Table 17-1: Status of Environmental Permits and Licences			72
Table 18-1: Summary of Capital Cost Estimate for Doornkop			75
Table 18-2: Summary of Operating Cost Estimate for Doornkop			75
Table 19-1: Conversions used in Gold Price Calculations			76
Table 19-2: ZAR:USD Exchange Rate Performance (July 2019 – June 2022)			76
Table 19-3: Summary of Key Assumptions used in the Economic Analysis			78
Table 19-4: Doornkop Cash Flow			79
Table 19-5: Gold Price Sensitivity Analysis			80
Table 19-6: Total Operating Cost Sensitivity Analysis			80
Table 19-7: Gold price, Operating Costs, and Production Variation Sensitivity Analysis			81
Table 25-1: Other Specialists			87

Effective Date: 30 June 2022


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
°C			degrees Celsius
µm			Micrometres
2D			Two-dimensional
3D			Three-dimensional
AE			Abnormal expenditure
Ag			Silver
AMIS			African Mineral Standards
Au			Gold
AuBIS			Harmony electronic database
Ave.			Average
BLR			Black Reef
BMD			Below mine datum
Bn			Billion
BP			Business plan
BSI			British Standard Institute
c.			Approximately
CIP			Carbon-In-Pulp
CLR			Carbon Leader Reef
cm			Centimetre
cmg/t			Centimetre-grams per tonne
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COP			Code of Practice
CRG			Central Rand Group
CRM			Certified Reference Material
CV			Coefficient of Variation
DMRE			Department of Mineral Resources and Energy
Doornkop			Doornkop Mine
DWS			Department of Water and Sanitation
EIA			Environmental Impact Assessment
EMPR			Environmental Management Programme
EMS			Environmental Management System
EMTS			Electric Monorail Transport System
ESG			Environmental Social and Governance
ETF			Exchange traded fund
EW-SX			Electro-wining solvent extraction
FX			Foreign Exchange rate
g			Gram
g/t			Grams per tonne
g/t			Grams per metric tonne
GDARD			Gauteng Department of Agriculture and Rural Development
GHG			Greenhouse gas
GISTM			Global Industry Standard on Tailings Management
Harmony			Harmony Gold Mining Company Limited
HPE			Hydro-powered
ICMC			International Cyanide Management Code
kg			Kilogram
km			Kilometre
km2			Square kilometre
Kusasalethu			Kusasalethu Gold Mine
kWh			Kilowatt-hour
LMBA			London Bullion Market Association
LDL			Lower detection limit
LIB			Long inclined borehole
LOM			Life of Mine

Effective Date: 30 June 2022


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Ltd			Limited
m			Metre
M			Million
m3/hr			Cubic metres per hour
masl			Metres above sea level
MCC			Mining Charter Compliance
MCF			Mine Call Factor
Mintek			Mintek SA, South Africa's national mineral research organisation
Moz			Million troy ounces
Mponeng			Mponeng Gold Mine
MPRDA			Mineral and Petroleum Resources Development Act, 28 of 2002
Mt			Million tonnes
Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
NEMA			National Environmental Management Act, 107 of 1998
No.			Number
NPV			Net present value
OTC			Over the counter
oz			Troy ounce
PFZ			Pretorius Fault Zone
PSD			Particle Size Distribution
Pty			Proprietary
QA/QC			Quality Assurance/Quality Control
QP			Qualified Person
REGM			Randfontein Estates Gold Mining Company Limited
ROM			Run-of-Mine
SACNASP			South African Council for Natural Scientific Professions
SAG			Semi-autogenous
SAMREC			The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves
SANAS			South African National Accreditation System
Savuka			Savuka Gold Mine
SD			Standard Deviation
SEC			Securities and Exchange Commission
SGM			Sequential Grid Mining
SGS			SGS South Africa (Pty) Limited
Sibanye-Stillwater			Sibanye Stillwater Limited
SLP			Social Labour Plan
t			Metric tonne
t/m3			Tonne per cubic metre
TauTona			TauTona Gold Mine
TRS			Technical Report Summary
TSF			Tailings Storage Facility
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
VCR			Ventersdorp Contact Reef
West Wits			Harmony's West Rand operations
WRG			West Rand Group
WUL			Water Use Licence
ZAR			South African Rand
ZAR/kg			South African Rand per kilogram

Effective Date: 30 June 2022


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Glossary of Terms


Term			Definition
Co-kriging			A method that is used to predict the value of the point at unobserved locations by sample points that are known to be spatially interconnected by adding other variables that have a correlation with the main variable or can also be used to predict 2 or more variables simultaneously.
Cut-off grade			Cut-off grade is the grade (i.e. the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Dilution			Unmineralized rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Head grade			The average grade of ore fed into the mill.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project and may not be converted to a Mineral Reserve.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.

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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Modifying Factors			Modifying factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include but are not restricted to: mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product.
			(1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable.
			(2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is:
			(1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and
			(2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must:
			(i) Be either:
			(A) An organization recognized within the mining industry as a reputable professional association; or
			(B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field;
			(ii) Admit eligible members primarily on the basis of their academic qualifications and experience;
			(iii) Establish and require compliance with professional standards of competence and ethics;
			(iv) Require or encourage continuing professional development;
			(v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and
			(vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.
Tailings Freeboard			The vertical height between the beached tailings against the embankment crest and the crest itself.

Effective Date: 30 June 2022

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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Persons (“QPs”) of Harmony Gold Mining Company Limited (“Harmony” or the “Company”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Company’s Doornkop Mine (“Doornkop” or “Doornkop Mine”). The TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, with an effective date as at 30 June 2021. No material changes have occurred between the effective date and the date of signature of this TRS.

Property Description

The Doornkop shaft complex is located south of Krugersdorp, 30km west of Johannesburg, in Gauteng Province, South Africa. The property lies between Sibanye Stillwater Limited’s (“Sibanye-Stillwater”) Cooke 1 shaft and Durban Roodepoort Deep Limited. Doornkop form part of Harmony’s West Rand operations and extends to a maximum depth of approximately 2,000m below surface. Current mining operations extract the South Reef, with the Mineral Reserves being comprised entirely of this reef. Mineral Resources are comprised of the South Reef and the Kimberley Reef, and a limited (<0.5%) amount of the Main Reef.

The current mining right (Reference No. GP30/5/1/2/2/09MR), held by Randfontein Estates Gold Mining Company Limited (“REGM”), encompasses an area of 2,941ha and is valid from 7 October 2008 to 6 October 2038.

Ownership

Doornkop is wholly owned by Harmony, including the associated mineral rights. Harmony acquired the mine in January 2000, when they took control of REGM.

Geology and Mineralisation

Doornkop is situated on the northwestern margin of the Witwatersrand Basin of South Africa, one of the most prominent gold provinces in the world. While there are several gold-bearing conglomerate reefs present within the mining right area, only the Kimberley Reef and South Reef are considered to have prospects for economic extraction at this stage.

In the West Rand Goldfield, the Kimberley Reefs include a number of different gold-bearing conglomerate horizons. At Doornkop, it is the Kimberley K9 Reef horizon which comprises the Mineral Resources along with the South Reef. The K9 Reef rests on an unconformity and is a multi-pulse conglomerate which is divided into four cycles, each consisting of an upper conglomerate and a lower quartzite.

The South Reef comprises a basal conglomerate unit and a cycle of trough cross-bedded sediments. The South Reef is dominated by silicate phases such as quartz, carbon (seam and specks), as well as sulphide phases such as pyrite, pyrrhotite and chalcopyrite. While the upper cycles may carry some gold values, up to 95% of the gold present is located in the lower cycle.

Both the Kimberley Reef and the South Reef have been subjected to faulting and are intruded by a series of dykes and sills of various ages that cut across the reefs. The gold mineralisation is interpreted to have succeeded a period of deep burial, fracturing, and alteration. The gold and other elements are believed to have precipitated through the reaction of hydrothermal fluids at high temperatures along the reef horizons.

Status of Exploration, Development and Operation

Doornkop has mined a combination of South Reef and Kimberley Reef over the past 30 years. Mining methods and associated production rates have varied through its history from mechanised to conventional. Doornkop has, for the past five years been producing approximately 90 to 110 thousand ounces (“koz”) of gold annually from the South Reef only.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Extensive exploration informs both the South Reef and Kimberley Reef models, and Harmony continues to conduct underground drilling and channel (chip) sampling on the South Reef. Sampling of underground drill hole intersections, as well as sampling of established stopes on the reef horizon, inform the updates to the Mineral Resources. Harmony has budgeted ZAR15m for infill exploration drilling on the South Reef over the next 12 months.

Doornkop may be considered as a well-established mine which operates uninterrupted at a steady state throughout the year.

Mineral Resource Estimate

The narrow-tabular nature of the Kimberley and South Reefs at Doornkop lend themselves to the estimation of grade and thickness in two-dimensional block models. The estimates are based on a verified electronic database containing surface drill hole data, as well as underground drilling, mapping, and sampling data obtained up until December 2021. Gold accumulation and channel widths are estimated using ordinary and simple macro kriging interpolation methods.

The QP responsible for compiling the Mineral Resource estimates is Mr H Chirambadare, Ore Reserve Manager at Doornkop, who is an employee of Harmony.

The Mineral Resource estimate, exclusive of the reported Mineral Reserves, is summarised in Table 1-1.

Table 1-1: Summary of the Doornkop Mineral Resource Estimate as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	18.202	3.54	64,492
Indicated	10.528	2.97	31,245
Total / Ave. Measured + Indicated	28.730	3.33	95,738
Inferred	13.414	4.38	58,707
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	20.064	0.103	2.073
Indicated	11.605	0.087	1.005
Total / Ave. Measured + Indicated	31.669	0.097	3.078
Inferred	14.787	0.128	1.887
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr H Chirambadare, who is Ore Reserve Manager at Doornkop, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 638cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Mineral Reserve Estimate

The Mineral Reserves for Doornkop were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

The QP responsible for compiling the Mineral Reserve estimates is Mr H Chirambadare, Ore Reserve Manager at Doornkop, who is an employee of Harmony.

The Mineral Reserve estimate, as at 30 June 2022, is summarised in Table 1-2.

Table 1-2: Summary of the Doornkop Mineral Reserve Estimate as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	5.876	4.46	26,179
Probable	7.924	4.29	33,988
Total (Proved + Probable)	13.799	4.36	60,167
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	6.477	0.130	0.842
Probable	8.734	0.125	1.093
Total (Proved + Probable)	15.211	0.127	1.934
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr H Chirambadare, who is the Doornkop Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. Mineral Reserves are reported using a cut-off grade of 739cmg/t determined using a gold price of USD1,546/oz gold.

The Mineral Reserves are derived entirely from the South Reef Mineral Resources. No Kimberley Reef Mineral Resources have been converted to Mineral Reserves.

In the QP’s opinion, Doornkop is an established operation, and the Modifying Factors used in the Mineral Reserve estimate have a reasonable basis and, at a minimum, would satisfy the confidence levels for a Pre-Feasibility Study.

The estimated Mineral Reserves were depleted to generate the Doornkop cash flows. The economic analysis of the cash flows displays positive results and are deemed both technically and economically achievable.

Capital and Operating Cost Estimates

The capital cost estimates for Doornkop are determined at corporate level, using the business plan as a basis. The estimated capital costs for Doornkop are reported according to costs associated with ongoing capital development, major equipment outside the main operating sections which is termed abnormal expenditure (“AE”), infrastructure development (“Shaft Capital”) and capital associated with Mining Charted compliance (“MCC”), The capital and operating costs are reported in ZAR terms and on a real basis. The capital cost estimates are shown in Table 1-3.

The operating cost estimates for Doornkop are categorised into direct and total costs. A summary of the Doornkop operating cost estimate is presented in Table 1-4.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Table 1-3: Summary of Capital Cost Estimate for Doornkop


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2038)
AE			235,200
Shaft Capital			206,405
MCC Capital			528,448
Total			970,053

Table 1-4: Summary of Operating Cost Estimate for Doornkop


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2038)
Mining			23,732,405
Services			3,609,957
Medical Hub / Station			793,274
Engineering			11,646,788


Total Costs By Process			39,782,425
Mine Overheads			1,807,703
Royalties			940,870
Ongoing Capex			2,429,452
Total Cost			44,960,450

Both, the capital and operating estimates are accounted for in the economic analysis of Doornkop Mine. The results of the economic analysis demonstrate positive returns.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Permitting Requirements

Doornkop has valid permits, administered and managed by various departments, and does not require any additional permits to continue with their mining operations. These have been approved by the regulator at the effective date of this TRS. The permits and licences are summarised in Table 1-5.

Table 1-5: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Environmental Management Programme Report (“EMPR”)

GP30/5/1/2/2/(09) EM

DMRE

07-Jun-2010

LOM

Certificate of Registration (Nuclear)

01/0025/06

National Nuclear Regulator

31-May-2003

LOM

Water Use Permit

33/2/323/24

DWS

01-Dec-1977

LOM

Integrated WUL (Draft)

16/2/7/C221/C024

DWS

01-Jan-2010

LOM

ISO 14001 Certification

631282

BSI

01-Nov-2021

01-Nov-24

Cyanide Management Certification

N/A

ICMC

01-Apr-2021

01-Apr-24

Precious Metal Refining Licence

1889/000251/66

SA Diamond & Precious Metals Regulator

01-Jun-2011

01-Jun-2024

Environmental Authorisation for Water Treatment Plant

GP30/5/1/2/2/(09) EM

DMRE

01-Aug-2016

LOM

Notes: DMRE - Department of Mineral Resources and Energy, DWS - Department of Water and Sanitation, BSI - British Standard Institute, ICMC-International Cyanide Management Code


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Conclusions

Under the assumptions in this TRS, Doornkop shows a positive cash flow over the life of mine (“LOM”). The mine plan is supported by the Mineral Resource and Mineral Reserve estimates and is considered achievable under the set of assumptions and parameters used.

Recommendations

To further de-risk the Mineral Resource and Mineral Reserves ahead of mining, the active long inclined borehole (“LIB”) drilling campaign should be continued. Additional exploration should be undertaken to investigate the continuation of high-grade pay shoots within the South Reef, as anticipated through historical literature and mining results.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

2Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS on Doornkop has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the U.S. SEC Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 – Technical Report Summary.

The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand the Doornkop Mine which forms part of Harmony’s activities.

This TRS has been prepared from the following sources of information:

•data available in the Competent Persons Report dated 30 June 2022;

•the 2020, 2021 and 2022 Corporate Business Plan; and

•published Ore Reserve as at 30 June 2022.

The TRS was prepared by the QP employed by Doornkop. The QP’s qualifications, areas of responsibility and personal inspections of the property are summarised in Table 2 1.

Table 2-1: List of Responsible and Contributing Authors

Qualified Person

Professional Organisation

Qualification

TRS Section Responsibility

Personal Insp.

Mr H Chirambadare

SACNASP

BSc. (Geol, Math), BSc. (Hons) Geol, MENG, MBA

All

Full time

This TRS is the first filing of such a document with the SEC. This TRS has an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

3Property Description

Section 229.601(b)(96) (3) (i-vii)

Doornkop is an underground gold mine located in the West Wits mining district Southwest of Johannesburg, in the Gauteng Province. At longitude 27°47'26.55"E and latitude 26°13'03.2"S, the mine is approximately 30km from Johannesburg and forms part of Harmony's West Rand (“West Wits”) operations. The location of Doornkop and its relative proximity to the other West Wits operations is shown in Figure 3-1.

3.1Mineral Tenure

South African Mining Law is regulated by the Mineral and Petroleum Resources Development Act,2008 (“MPRDA”) which is the predominant piece of legislation dealing with acquisitions or rights to conduct reconnaissance, prospecting, and mining. There are several other pieces of legislation which deal with such ancillary issues such as royalties (MPRDA), title registration (Mining Titles Registration Act, 1967), and health and safety (Mine Health and Safety Act, 1996).

The current mining right is held by REGM, a wholly owned subsidiary of Harmony. The right encompasses an area of 2,941.021ha and was successfully converted, executed and registered as a new order mining right at the Mineral and Petroleum Resources Titles Office. As such, it is secured under Mining Authorisation number ML 13/97. The Department of Mineral Resources and Energy reference GP30/5/1/2/2/09MR was issued for a period of 30 years expiring on 6 October 2038, and Harmony has the exclusive right to renew the right. The summary of mineral tenure and the approved mining area (also referred to as the mining lease area) is shown in Table 3-1 and Figure 3-2.

Table 3-1: Summary of Mineral Rights for Doornkop

Licence Holder

Licence Type

Reference No.

Effective Date

Expiry Date

Area (ha)

Randfontein Estates Gold Mining Company Limited

Mining Right

GP30/5/1/2/2/09MR

07-Oct-2008

06-Oct-2038

2,941.02

There are no known legal proceedings (including violations or fines) against the Company which threatens its mineral rights, tenure, or operations.

3.2Property Permitting Requirements

The surface rights over the Doornkop lease area are held by REGM (Table 3-2) (Figure 3-2). The total lease area is sufficient in size and nature to accommodate the required surface infrastructure to facilitate current and planned mining and processing operations.

Table 3-2: Surface Permits held by Doornkop

Permit Holder

Farm Name

Portion No.

Title Deed No.

Area (ha)

Randfontein Estates Ltd

Doornkop 239 IQ

130

T14868/1985

228.9004

131

T35158/1986

125.4526

Vlakfontein 238 IQ

T55420/2019

558.4165

Total

912.7695

Source: Deeds Office Property Search, 30 July 2022

Harmony holds Water Use Permits (REF: 33/2/323/24) from the Department of Water and Sanitation (“DWS”) as well as various other environmental authorisations related to its activities at Doornkop. The other permits associated with environmental aspects are discussed Section 17.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 3-1: Location of Doornkop


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 3-2: Mineral Tenure of Doornkop


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

4Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

4.1Accessibility

Doornkop Mine is located approximately 30km west of Johannesburg and is easily accessible via the R558 provincial road (Figure 3-1). Access to the mine is restricted by security fencing, security guards, booms and lockable gates at the main entrance. In addition, a communication system and access control system monitors personnel entering and leaving the mine property.

4.2Physiology and Climate

Doornkop is located within the Highveld region of South Africa. The general elevation across of the lease area varies from 1,600m to 1,780m above sea level (“asl”), gently sloping to the southwest. The surrounding area is characterised by undulating plains interspersed by rocky outcrops. Mining activities in the area have altered the natural topography of the area with the presence of old tailings dams and waste rock dumps.

The mine is situated within the Highveld climatic zone which is characterised by warm wet summers and cool to cold dry winters. The average annual rainfall recorded at the operation (2015 – 2018) was 698mm. Most of the rainfall occurs as heavy thunderstorms resulting in erosion and runoff. These typically occur between November and February. Temperature patterns are characterised by seasonal and daily variations, where summers are warm to hot and winters are mild to cold. The seasonal fluctuations in mean temperatures between the warmest and the coldest months varies between 12°C and 15°C.

The Doornkop operation is not restricted by climatic or seasonal occurrences.

4.3Local Resources and Infrastructure

Infrastructure in the region is well established supporting the numerous operational gold mines in the area. The regional infrastructure includes national and provincial paved road networks, power transmission and distribution networks, water supply networks and communication infrastructure. Doornkop’s surface and underground infrastructure, including its power and water supplies, is sufficient for the current and planned production level requirements.

Doornkop’s main and vent shaft systems are currently exploiting the South Reef to approximately 2,000m below surface. The narrow South Reef is exploited by means of conventional stoping. The ore mined at Doornkop is processed at the mine’s carbon-in-pulp (“CIP”) plant, which is located adjacent to the shaft. Operations are powered by electricity from Eskom Holdings Limited State-Owned Company (“SOC”).

Mine personnel are sourced from the surrounding towns of Krugersdorp, Randfontein and Johannesburg.

More detailed information on Doornkop’s infrastructure is presented in Section 15.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

5History

Section 229.601(b)(96) (5) (i-ii)

5.1Historical Ownership and Development

Although exploration in the Doornkop area dates back to the early 1930s, and multiple phases of exploration and mining activities have taken place in the intervening years, the sinking of the Main and Ventilation Shafts at Doornkop only commenced in 1983. At the time, Doornkop was owned by Johannesburg Consolidated Industries Limited (“JCI”).

It was initially planned to mine both the Kimberley and the South reefs. However, a decision was then taken by JCI to target the shallower Kimberley Reef only, mining it by mechanised methods. In additional, the deepening of the Main Shaft required to access to the South Reef was deferred. During 1989, the planned production rates from the Kimberley Reefs were achieved, but the anticipated grades were not recovered. Adverse geological structures were encountered, and the decrease in grades were attributed to difficulties associated with the mechanised mining methods resulting in dilution.

A review of the operation was undertaken in 1991, and the mining approach was changed to a more selective mining cut, targeting higher grade areas of Kimberley Reef only. In 1999, the deepening project was stopped, as a result of the low prevailing gold prices. The sub-vertical shaft sinking had been completed with the shaft bottom at 1,953m below surface. The deepening of the Main Shaft stopped at 1,340m below surface.

Harmony acquired Doornkop when they took over control of REGM in early 2000. Harmony continued mining the Kimberley Reef using mechanised mining methods, but revisited the work done toward extracting the South Reef. The mining method for the Kimberley Reef was subsequently changed to the conventional stoping approach, in order to extract a reduced tonnage at an improved grade.

The historical ownership and associated activities related to Doornkop are summarised in Table 5-1.

Table 5-1: Summary of Historical Ownership Changes and Activities of Doornkop


Year			Asset History Highlights
1983			JCI commenced construction of the Main and Ventilation Shafts.
1986			The vertical twin shaft system and the gold plant was commissioned.
1989			Planned production rates on Kimberley Reef achieved.
1991			Selective mining approach adopted on Kimberley Reef.
1991			A sub-vertical shaft was commissioned that enabled development and production of the South Reef.
1999			Deepening project stopped with Main Shaft at 1,953m and Sub-vertical Shaft at 1,340m below surface.
2000			Harmony acquires control of Doornkop when they take control of Randfontein Estates.
2003			South Reef mining commenced.

5.2Historical Exploration

As previously noted, exploration has been undertaken in the Doornkop area since the 1930s.

A total of eighteen surface drill holes were initially drilled over the area and of these, thirteen drill holes provided useful information for evaluation purposes. In addition, three intersections drilled from the Kimberley Reef workings, and three intersections drilled on the adjoining Durban Roodepoort Deep area showed the South Reef to contain economic concentrations of gold.

Since the commissioning of Doornkop in the 1980s, JCI and subsequently Harmony have continued on-mine exploration work, in the form of geophysics, surface drilling, underground drilling and sampling. As the results of these exploration efforts continue to inform the Mineral Resource estimates, they are described in Section 7 of this report.

5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous Mineral Resource estimate for Doornkop was issued by Harmony on 30 June 2021 in accordance with SAMREC, 2016. The previous Mineral Resource estimate is presented in Table 5-2 and is exclusive of Mineral Reserves.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Table 5-2: Summary of the Previous Doornkop Mineral Resources as at 30 June 2021 (exclusive of Mineral Reserves)


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	18.580	3.57	66,423
Indicated	12.409	3.31	41,085
Total / Ave. Measured + Indicated	30.989	3.47	107,507
Inferred	13.619	4.41	60,001
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	20.481	0.104	2.136
Indicated	13.678	0.097	1.321
Total / Ave. Measured + Indicated	34.159	0.101	3.456
Inferred	15.013	0.128	1.929

The previous Mineral Reserve estimate for Doornkop was issued by Harmony on 30 June 2021 in accordance with the SAMREC Code. Modifying Factors were applied to the in situ Mineral Resource to arrive at the Mineral Reserve estimate. These factors included dilution, and application of the Mine Call Factor (“MCF”) and the Plant Recovery Factor (“PRF”). The previous Mineral Reserve estimate is summarised in Table 5-3.

Table 5-3: Summary of the Previous Doornkop Mineral Reserves as at 30 June 2021


METRIC
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proven	6.035	4.73	28,549
Probable	4.438	4.17	18,523
Total / Ave. Proven + Probable	10.473	4.49	47,072
IMPERIAL
Mineral Reserve Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proven	6.652	0.138	0.918
Probable	4.892	0.122	0.596
Total / Ave. Proven + Probable	11.544	0.131	1.513

5.4Past Production

Mining production commenced in 1986 and reached steady state by 1989. The production for the previous six years for Doornkop is presented in Figure 5-1 and Figure 5-2.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 5-1: Graph of Past Production– Tonnes and Grade

Figure 5-2: Graph of Past Metal Production


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii

6.1Regional Geology

Doornkop is located on the northwestern margin of the Archean Witwatersrand Basin, one of the largest gold provinces in the world. The Witwatersrand Basin is an approximately 7,000m thick terrigenous sequence comprising mainly arenaceous and argillaceous, together with minor rudaceous, lithologies deposited in a fluvio-deltaic environment in the centre of the Archaean Kaapvaal Craton of South Africa (Robb and Meyer, 1995). The regional geology of the Witwatersrand Basin is shown in Figure 6-1.

The Witwatersrand Supergroup is subdivided into the basal West Rand Group (“WRG”) and overlying Central Rand Group (“CRG”) (Robb and Robb, 1998). The WRG extends over an area of 43,000km2 and is up to 5,150m thick. It is sub-divided in three subgroups, namely, from bottom upwards, the Hospital Hill Subgroup; Government Subgroup and Jeppestown Subgroup. The stratigraphic succession of the WRG mainly consists of shale sediments, with occasional units of banded iron formation and conglomerate. The CRG is up to 2,880m thick and covers an area of up to 9,750km2, with a basal extent of approximately 290km x 150km. It is sub-divided into the lower Johannesburg Subgroup and upper Turffontein Subgroup (Figure 6-2). These subgroups are separated by the Booysens Shale Formation. The stratigraphic succession of the CRG comprises coarse-grained fluvio-deltaic sedimentary rocks.

The major gold bearing conglomerates are mostly confined to the CRG, and these conglomerate horizons are known as reefs. The most important reefs within the CRG are at six stratigraphic positions, three within the Johannesburg Sub-group and three within the Turffontein Sub-group. The reefs are mined in seven major goldfields, and a few smaller occurrences, which extend for over 400km in what has been called “The Golden Arc”. This arc is centred on the prominent Vredefort Dome (Figure 6-1), which is thought to be a major meteorite impact site in the centre of the Witwatersrand Basin (Therriault et al., 1997). The goldfields (Figure 6-1) include: East Rand, South Rand, Central Rand, West Rand, West Wits, Klerksdorp, Free State (Welkom), and Evander.

6.2Local Geology

Doornkop is located within the West Wits Goldfield (Figure 6-1). The general orientation of the Witwatersrand Supergroup succession in this goldfield is interpreted as west-southwest-trending and south-southeast dipping (Dankert and Hein, 2010).

The Doornkop lease area is bounded by and lies to the southeast of the major north-easterly striking Roodepoort Fault, which dips to the south and constitutes the southern edge of the Witpoortjie Horst Block or Gap. This Horst Block is comprised of stratigraphically older sediments of the West Rand Group, the overlying Central Rand Group sediments having been removed by erosion. A number of other faults, including the Saxon Fault, also constitute conspicuous structural breaks in the Doornkop lease area

Doornkop’s previous production, current production and current Mineral Resources and Mineral Reserves are derived from the South Reef, and the Kimberley Reefs. These reefs are tabular, inclined, gold-hosting horizons located within the Johannesburg Subgroup and the Turfontein Subgroup of the CRG respectively, as shown in Figure 6-2. A simplified stratigraphy for the West Rand Goldfield is presented in Figure 6-3.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 6-1: Regional Geology of the Witwatersrand Basin


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 6-2: Stratigraphy of the CRG in the Witwatersrand Supergroup
Source: Modified after Tucker et al. (2016)


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 6-3: Simplified Stratigraphy of the West Rand Goldfield


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Nearly the entire upper Witwatersrand section is present in the area and therefore all the major zones are present, though due to the distance of the area from the fan head, the conglomerates, number of economic bands and their payability is limited. Eight of the well-known reefs are present in the area, but only the Kimberley Reef and South Reef are considered viable at this stage with some recent Main Reef potential due to development and drill hole intersection values. A cross section illustrating the major zones in the area is provided in Figure 6-4.

6.3 Property Geology

The main economic reefs at Doornkop comprise the K9 and K8 (both Kimberley Reefs) and the South Reef, which occur at depths ranging from 860m to 1,700m below surface. The general strike of the reef is east-west, and the dip varies from 10° to 20°. The overall mineralised strike length and width at Doornkop is about 4km by 4km and the mine is divided into a west side and an east side. As illustrated in Figure 6-3 and Figure 6-4, the South Reef lies 800-900m stratigraphically deeper than the lowest of the Kimberley Reefs.

6.3.1Kimberley Reefs Lithology

In the West Rand Goldfield, the Kimberley Reefs include a number of different conglomerate horizons, many of which contain gold mineralisation. At Doornkop the K9 Reef horizon, which was mined prior to 2014, comprises the Mineral Resources.

The K9 Reef rests on an unconformity and is a complex multi-pulse conglomerate which is divided into four cycles (Cycle 1 to 4), each of which consist of an upper conglomerate and a lower quartzite.

6.3.2South Reef Lithology

The South Reef unit typically comprises a basal lag unit, which is overlain by a series of trough cross-bedded cycles of quartzites. The basal lag unit is not universally preserved. The South Reef is considered to commence at the base of the first conglomerate band and includes internal waste and one conglomerate band above the basal band (“Leader 1”).

The lag unit thickness varies from 1.5cm to 8.0cm, where the lower thickness is typically just a pebble lag and the higher thicknesses, a well- to moderately-packed conglomerate band. The grading reef package is generally upward fining. The footwall rocks are cleaner, trough cross-bedded quartzites, with little variation between cycles and exercise no meaningful control over the sedimentation process of the South Reef.

6.3.3Structure

Shallow folding, contemporaneous with the deposition of the Witwatersrand sediments, is interpreted to have caused low profile domes and basins, on to have resulted in the reefs having uneven footwall surfaces.

The mine is bounded on the Northwest by major faults, striking in a generally north-east to south-west direction, referred to as the Roodepoort or Saxon fault system. A second fault system, called the Doornkop fault, which runs from east to west, sub-divides Doornkop into two mining entities. The structural geology plan for the South Reef is presented in Figure 6-5.

6.4Mineralisation

Gold mineralisation in the Witwatersrand is believed to have followed an episode of deep burial, fracturing and alteration. A variant of Archean gold-bearing hydrothermal fluid was introduced into the conglomerates and circulated throughout in hydrothermal cells. The fluids precipitated gold and other elements through reactions that took place at elevated temperatures along the reef horizons, which was the more favourable fluid conduit.

6.4.1Kimberley Reef Mineralisation

Pyrite heavy mineral concentrations occur as laminae in cross-bedded foresets, and nodular pyrite may be concentrated within the basal lag conglomerate. Gold is typically found in association with silver, uranium and buckshot pyrite


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 6-4: Doornkop Cross Section (South – North)
Not to scale


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 6 5: Doornkop South Reef Geological Structure Plan


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

6.4.2South Reef Mineralisation

The South Reef is dominated by silicate phases such as quartz, carbon (seam and specks), as well as sulphide phases such as pyrite, pyrrhotite and chalcopyrite. While the upper cycles may carry some gold values, up to 95% of the gold present is located in the basal conglomerate unit. Gold is typically found in association with brannerite (uranium) and carbon, either in seams or flyspeck.

6.4.3Alteration

Although alteration is evident in the Kimberley Reef and South Reef, alteration does not form an important part of the identification, modelling or mining of the reefs at Doornkop.

6.5Deposit Type

The deposit is classed as a tabular meta-sedimentary gold deposit. Folding and basin edge faulting have been important controls for sediment deposition and gold distribution patterns within the Witwatersrand Basin and fold trends have been employed in the economic evaluation of various reef horizons.

6.6Commentary on Geological Setting, Mineralisation and Deposit

The geological setting, mineralisation model and deposit types are well established at Doornkop, as a result of continuous exploration and mining activities over several decades. These geological interpretations and models form the basis of the Mineral Resources estimates for the South and Kimberley Reefs.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

7Exploration

Section 229.601(b)(96) (7) (i-vi)

Exploration at Doornkop has been focused on improving confidence in the geological model, as well as adding and upgrading additional Mineral Resources to the mine as existing Mineral Resources are depleted through mining. Over the years, geological data has been obtained through surface drilling, underground drilling, underground channel (chip) sampling and geological mapping.

7.1Geophysical Survey

The interpretation of the current Mineral Resources is assisted by the regional aeromagnetic survey by the Council of Geosciences, as well as a seismic survey in 2017 by GAP Geophysics. These surveys assist in the identification of large scale structures and stratigraphy.

7.2Topographical Survey

As an underground operation, topographic surveys are not required.

7.3Underground Mapping

Extensive face mapping is undertaken at Doornkop, as a form of grade control, and in order to inform updates to the geological model.

Face and reef development mapping is undertaken by a team comprising two or more personnel, including a geologist or sampler. Reference tapes are setup along gullies and the stope face, orientated with reference to the latest survey pegs to have been installed in the workplaces. The reef position, lithological descriptions, the presence of faults or dykes, and other pertinent geological information is collected and measured relative to the reference tapes.

Once at surface, the geologist transfers the information from the notebook into the geological mapping system, where a mapping report is produced for each mapped workplace. The mapping reports depict the geological information graphically relative to the survey measurement points. Data from the mapping is also incorporated into the geological models.

Approximately 80-90% of all workplaces are inspected by a Senior Geologist on a monthly basis to ensure that suitable mapping information coverage is achieved.

7.4Channel Sampling Methods and Results

Channel sampling of underground panels takes place on a monthly basis, in order to provide grade, channel width and facies information, which is used for grade control, and in Mineral Resource estimates.

7.4.1Channel Sample Collection Method

Sampling of the South Reef and Kimberley Reef channels are undertaken at the advancing face on a grid spacing of 5m x 5m. Channel sampling is undertaken according to the Doornkop Underground Sampling Procedure.

Channel sampling is undertaken by a team including a sampler, and several assistants. Samples are chipped from the advancing face from within clearly measured and marked channel sections. Samples are manually chipped from the rock face using a geological hammer, perpendicular to the channel contact exposed in the face, including 2cm from both the hanging- and footwall. The chips are collected in a sample bag.

7.4.2Results

The location of the Kimberley Reef channel samples to 2014 are presented in Figure 7-1. No further channel sampling has taken place on the Kimberley Reef since 2014 due to closing of Top Mine (Kimberly Reef), as it was unprofitable. The current Kimberly Reef Mineral Resource declaration is therefore based on the 2014 model and a part declaration of the total Mineral Resource base.


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The location of samples collected from the South Reefs, by year, are presented in Figure 7-2. The reader should note from Figure 7-1 and Figure 7-2 that the channel sampling results are too numerous to provide in a tabulated format. The results have, however, been included into the geological modelling and Mineral Resource estimation process.

7.5Surface Drilling Campaigns, Procedures, Sampling, Recoveries and Results

Surface exploration drilling has taken place over several different campaigns since exploration was initially undertaken in the 1930s. Surface drilling provides widely spaced initial grade and channel width information, upon which mine development decision are based. The location of the surface drill holes is indicated on Figure 7-3 and Figure 7-4 for each of the reefs.

7.5.1Drilling Methods

Diamond core drilling was used for all surface drill holes. Surface diamond core drilling has been undertaken using a thin-walled core barrel (TNW size core barrel) that delivers NQ (47.6mm) core. The holes are drilled vertically, and a single mother hole is drilled with multiple deflections.

7.5.2Collar and Downhole Surveys

Drill hole collar and downhole surveys are conducted on all surface drill holes to confirm both position and trajectory. Surface drill hole collars are surveyed by Doornkop’s Land Survey Department.

Downhole surveying is conducted using Electronic Multishot System and non-magnetic north seeking tools as supplied by Digital Surveying (Pty) Limited. Additional check surveys are conducted on most long exploration drill holes for QAQC purposes, and the results are submitted together with the primary survey data used to determine the drill hole trajectories.

7.5.3Logging Procedure

The drill cores are photographed prior to logging and sampling.

The entire core is transported to the storage facility at the Doornkop core yard under the supervision of a Senior Geologist. Upon arrival, the core is logged, using Harmony’s standard logging procedures, which have been applied since Harmony started operating Doornkop.

Drill core logging is quantitative and qualitative. The following information is recorded:

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and alteration.

Observations are captured on the diamond drilling database by geologists. The logs are checked by the Senior Geologist prior to sampling.

7.5.4Drilling Results

The Kimberley Reef and South Reef geological stratigraphic interpretations were originally informed by surface drilling campaigns which date back over several decades and having been drilled by various companies. A summary of the drilling is provided in Table 7-1. No further surface drilling has been done on the Kimberley Reefs since the closure of the top mine, restricting accessibility to drilling platforms.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 7-1: Location Channel Samples collected from the Kimberley Reef (Pre 2014)

Figure 7-2: Location of Channel Samples collected from the South Reef (2018 to 2022)


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Table 7-1: Summary of Surface Drilling


YEAR	Companies	No. Drill Holes	Comments
1935 - 1987	Tudor Gold Mining Limited, Durban Roodepoort Deep, General Mining, JCI, West Rand Holdings, New Union Goldfields and others.	139	Utilised for stratigraphy and structure only - not for grade modelling.
1937 - 1985	JCI, Randfontein Estates, South Roodepoort Main Reef	31	Utilised for stratigraphy and structure only - not for grade modelling.
Uncertain	Not recorded	5	Utilised for regional stratigraphy - no reef intersections.
1950 - 1989	JCI, Durban Roodepoort Deep Ltd, Rio Tinto, South Roodepoort Main Reef	65	Utilised for stratigraphy and structure only - not for grade modelling.
Total		240

With over 240 drill holes having been drilled since 1937, the results are too voluminous to be reported in this report, however, the results of the Harmony drilling have been included into the geological modelling process.

The location of the surface drill holes intersecting the Kimberley Reef are shown on Figure 7-3, whilst the location of the surface drill holes intersecting the South Reef are shown on Figure 7-4.

7.5.5Core Recovery

Where possible, precautions are taken by the drilling contractors to utilize core barrels to ensure maximum recovery. Reef intersection acceptability is categorised as per the criteria summarised in Table 7-2. Geological acceptability of drill hole intersections is determined by geologists based on, amongst others, drill core condition and faulting.

Table 7-2: Drill Hole Acceptance Criteria


Category			Comment
Acceptable			100% core recovery in the reef zone, or very minor loss due to reef chipping. No evidence of faulting within the reef horizon or at either contact with hanging wall or footwall lithologies.
Minimum value			Light to moderate disking of core in the core barrel due to drilling and/or ground conditions. Visual observations indicate that the conglomerate portion of the reef is usually more prone to disking, resulting in possible gold loss.
Faulted minimum value			If the fault loss is considered to be minor, this term may be used if the geologist is certain that only low-value internal quartzite is missing from the intersection.
Not acceptable			Heavy disking of core which may indicate core loss, partial known core loss due to grinding. Also faulting of any description within the reef zone.

The overall core recovery is typically acceptable however, due to the reef intersections being on a carbonaceous unconformity, the majority of the reef horizon is often disced and considered unacceptable.

7.5.6Sample Length and True Thickness

In areas where drill holes intersect the orebodies at obtuse angles, the sampled width is corrected for true thickness using the angle of intersection and the drilled width. The true thickness is used to determine the value the gold content of the reef.

7.6Underground Drilling Campaigns, Procedures, Sampling, Recoveries and Results

Underground exploration drilling is a continuous process which would have been in place since the operation commenced. The underground drilling provides geological information, which is used for the Mineral Resource estimates, as well as for mine planning purposes. The exploration strategy adopted to address the geological structure and reef locations at Doornkop includes the following:


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 7-3: Location of Surface Drill Holes Intersecting the Kimberley Reef

Figure 7-4: Location of Surface Drill Holes Intersecting the South Reef


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

•definition drilling aiming for a 100m to 200m drilling grid for optimal placement of primary haulage and cross-cut development; and

•infill drilling from haulages and crosscuts at a 100m to 50m drilling spacing is used for placement of secondary development and understanding reef existence and quality.

More drilling may be required in more complex areas and areas beyond the 200m drill spacing where geological definition is limited.

7.6.1Drilling Methods

Diamond core drilling was used for all underground drill holes. Diamond core drilling has been undertaken using hydraulic and pneumatic drill rigs. The core sizes for reef intersections include the following:

•pneumatic drilling - AXT (35.51mm); and

•hydraulic drilling- BX (42mm) or BQ (36.5mm).

Drilling can be undertaken in any orientation, depending on the position of the reef relative to the drilling location, however the drill holes are typically planned to intersect orthogonal to the mineralisation and the thickness is corrected for the true width prior to being used for Mineral Resource estimation.

7.6.2Collar and Downhole Surveys

Underground drill hole collars are checked against layouts issued to diamond drilling contractors and confirmed by offsets taken underground in the workplaces.

Downhole surveying is conducted using Electronic Multishot System and non-magnetic north seeking tools as supplied by Digital Surveying (Pty) Limited. Additional surveys are conducted on most long exploration drill holes for QAQC purposes, and the results are submitted together with the primary survey data used to determine the drill hole trajectories.

7.6.3Logging Procedure

The drill cores are also photographed prior to logging and sampling.

Harmony’s standard logging procedures are used, which have been in place since Harmony started operating Doornkop.

Drill core logging is quantitative and qualitative. The following information is recorded:

•lithology;

•packing density;

•roundness;

•sorting;

•contact type, grain/pebble size;

•sediment maturity; and

•mineralisation; and alteration.

Observations are captured on the diamond drilling database by geologists. The logs are checked by the Senior Geologist prior to sampling.

7.6.4Drilling Results

Underground drilling has resulted in 356 intersections of Kimberley Reef and 897 intersections of South Reef (Table 7-3). The location of the underground drill holes intersecting the Kimberley and South reefs are identified in Figure 7-5 and Figure 7-6, respectively.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 7-5: Location of Underground Drill Holes Intersecting the Kimberly Reef

Figure 7-6: Location of Underground Drill Holes Intersecting the South Reef


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Table 7-3: Summary of Underground Drilling


Year	Companies	No. Drill Holes	No. Reef Intercepts	Comments
Pre-2018	Harmony & others pre-Harmony	1,052	575	Underground drilling for South Reef
2018	Harmony	139	118	Underground drilling for South Reef
2019	Harmony	160	121	Underground drilling for South Reef
2020	Harmony	89	32	Underground drilling for South Reef
2021	Harmony	143	51	Underground drilling for South Reef
Total		1,583	897

While these drill holes are used for structural and facies interpretation, none have been used in estimating the South Reef grades, as a result of discing on the reef intersections due to the basal, carbonaceous unconformity over a thin reef. No underground drilling has been done on the Kimberley Reef since 2014, due to the closure of the top mine, as it was unprofitable.

7.6.5Core Recovery

The core recovery acceptance criteria used for underground drill holes is the same as those applied to surface drill holes (Table 7-2).

7.6.6Sample Length and True Thickness

7.7Hydrogeology

Three dewatering wells have been drilled around the shaft collar, one being a replacement well drilled in 2021.

7.8Geotechnical Data

Geotechnical issues related to underground workings are discussed in more detail in the Mining and Mine Design sections (Section 13.2). Geological exploration drilling is not typically used to gather geotechnical data. These data are gathered independently by the geotechnical engineer.

7.9Commentary on Exploration

Since 2014, Top Mine on the Kimberley Reef horizon has been closed and no subsequent underground drilling has taken place.

Drilling and logging practices are based on the Harmony company standards, which have been in place since Harmony took over Doornkop.

The QP is of the opinion that the quality and quantity of the exploration methods and information gathered is sufficient to support the estimation of Mineral Resources and Mineral Reserves.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

8Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

This section summarises information relating to the sampling method and preparation on site through to the laboratory preparation and analysis.

8.1Sampling Method and Approach

Sampling is carried out in accordance with the Harmony’s internal sampling procedure guidelines, which have been in place since Harmony starting operating Doornkop.

8.1.1Channel Samples

Sampling is undertaken by a sampler, assisted by a sampling crew. Chips are collected in a sample bag. Samples are weighed, labelled according to a unique sampling number, and submitted to the assay laboratory, together with the required blanks and standards.

An adequate (±300g) mass of each sample is collected to allow sufficient sized aliquots to be analysed at the designated laboratory.

8.1.2Core Samples

All underground and surface core is sampled according to the Harmony Drill hole Sampling Procedure. Sampling is undertaken by a Senior Geologist at the core storage facility.

The full channel width (reef) intersected in each drill hole is split longitudinally using a diamond drill core cutter. One half core is bagged, sealed and labelled with a unique sampling number. The remaining half core is kept in the core tray for reference purposes. A minimum 10cm to 15cm sample is required by the laboratory for assay purposes, depending on core diameter.

Pertinent data captured during sampling includes channel width (cm) and a detailed visual description of the reef, including in colour, matrix grain size, pebble size etc. The data is recorded in the drill hole database together with the unique sample number, collection date and spatial location.

All samples are assessed for acceptability and signed-off by the Senior Geologist for completeness and auditability, prior to laboratory dispatch.

8.2Density Determination

Density measurements were undertaken using both Archimedes water displacement method and laboratory-based pycnometer method. A density of 2.77t/m3 is used for tonnage calculations, which is based on 1,308 samples taken from the run-of-mine conveyor belt.

8.3Sample Security

All cores are transported to the secure core yard for logging and sampling.

8.4Laboratory Sample Preparation

All samples are sent to the external SGS South Africa (Pty) Limited laboratory (“SGS”) in Randfontein for preparation and assay. The laboratory is ISO/IEC 17025:2017 certified for chemical analysis by the South African National Accreditation System (“SANAS”) (SANAS No. T0265).


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The total percentage mass loss on each sample should not exceed 2%.

8.5Assaying Methods and Analytical Procedures

Analysis of gold and uranium is undertaken at the SGS laboratory using the following analytical techniques:

•fire assay with a gravimetric finish for gold for all reef and waste dump and drill hole samples. This has a lower detection limit of 0.5g/t;

•Aztec analysis for gold for all underground chip samples, with a lower detection limit of 0.5g/t; and

•X-ray diffraction (“XRD”) analysis for uranium.

All pulps of exploration drill hole intersections are kept and stored on site. Underground chip sample pulps are kept for three months and then discarded.

8.6Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

Routine quality control measures must be undertaken to check the precision and accuracy of analytical methods used by the laboratories. The checks involve regularly inserting blanks, duplicates and gold standards into all batches of samples dispatched to the laboratory for analyses. The current analytical laboratories used for sample analysis also have several internal QAQC protocols in place.

8.6.1Field QAQC

Harmony inserts blanks, certified reference material ("CRM") or blank obtained from African Mineral Standards (“AMIS”) and duplicates into their sample stream. The number of QAQC samples inserted by Harmony for the January 2021 to December 2021 sampling period is presented in Table 8-1.

Table 8-1: Summary of QA/QC Field Samples


Type			Total No.
Primary Samples			45,833
Blanks			500
CRM			1,311
Duplicates			106

Blank samples were submitted to monitor the possible contamination in the fusion process stage of the analysis at the laboratory. High- and low-grade CRMs are inserted to monitor the accuracy of the analytical methods. This ensures that the full range of gold categories is covered.

Duplicate samples were submitted to monitor precision of the analytical methods. Pulverized primary samples are also selected at random and re-assayed.

Monthly Process Compliance Reports were compiled as part of the quality control on the sampling process. Standard formats are used and recorded for audit purposes. Process Compliance Reports on the Chippers are also compiled in order to check the quality of the chipping. These observations are made weekly and are also kept on record for audit purposes.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

8.6.2Laboratory QAQC

The laboratory's QAQC procedures include the following:

•repeat assays on samples from the mine; and

•regular audits of the laboratory processes and facility are conducted by mine personnel and regional experts to monitor compliance.

All audit reports compiled are assessed for remedial action by the responsible persons before next review. Monthly laboratory meetings are held with the Doornkop representatives to discuss concerns over the specific periods.

8.6.3Results

The QAQC results are assessed to monitor the quality of the assaying and analytical procedures undertaken by SGS, in order to ensure the accuracy of the laboratory assay data and ensure a high-level of confidence in the Mineral Resource estimate.

The degree of bias is also monitored by comparing the calculated mean value to the expected value. Consistent failure of a standard and the bias to the low or high side of a standard are cause for concern and acted on as soon as a trend is observed. All concerns are addressed with the laboratory directly. The results of the Doornkop quality control samples are summarised in Table 8-2 and Table 8-3, respectively.

Table 8-2: Summary of Analytical Quality Control Data


Quality Control Material Type	No. of Samples Submitted	No. of Failed Samples	Action Taken
CRMs / standards	1,311	25	Sent for re-assay.
Coarse blanks	500	7	Sent for re-assay.
Pulp duplicates	106	0

Table 8-3: Summary of CRM performance


Standard	Certified Value (g/t Au)	Doornkop (±2 STD)		SGS Randfontein
		Upper Limit (g/t Au)	Lower Limit (g/t Au)	Ave. (g/t)	Outliers & Failures	Bias (%)
AMIS0615	1.068	0.950	1.180	1.100	13	-1%
AMIS0430	2.680	2.350	3.040	2.700	0	0%
AMIS0515	0.510	0.120	0.900	0.600	2	15%
AMIS0705	12.910	10.510	15.310	13.100	1	1%
AMIS0721	8.320	9.070	7.570	8.400	4	1%
AMIS0782	4.820	5.450	4.190	4.800	0	-1%
AMIS0785	5.530	4.740	6.330	5.500	0	0%


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

8.7Comment on Sample Preparation, Analyses and Security

In the QP’s opinion:

•the drill core sampling method adopted at Doornkop is appropriate for narrow, tabular, Witwatersrand -type gold mineralisation;

•the underground chip sampling is representative of the channel sampled;

•the sample preparation, security and analytical procedures followed for gold grade determination are adequate; and

•the results of the QAQC assessment have been appropriately addressed to ensure that the assay results of the primary samples are adequate for Mineral Resource estimation.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

9Data verification

Section 229.601(b)(96) (9) (i-iii)

The Doornkop drill hole data is stored in DatamineTM Fusion Client database, which can only be accessed by the QP and Technical Specialist (Exploration Manager). The backup process is managed by the Harmony IT Department and comprises a full backup of the SQL server database (HGMTSP303) daily, with 21 days stored on disk, along with a full backup to tape every month, which is stored at a third-party data storage location.

9.1Data Verification Procedures

Once the assay results are returned to the Senior Geologist, the Senior Geologist updates the calculations of the evaluation cuts and thicknesses, which are then stored in Fusion Client.

The steps followed are:

•the drill hole data gets checked against the original logs by the senior geologist before he inputs the values into the Microsoft Excel-based database;

•duplicate checking – duplicate samples can easily be introduced to the sampling database through digitising the same samples from adjacent assay tracings, duplication of data inputs in the electronic sampling system or incorrect projections from stope sheets. After importing values into the evaluation software, a duplicate checking macro is run to identify and remove exact duplicates and “offset” duplicates from the database. “Offset” duplicates are samples located close together (within 50cm of each other) and have the same value;

•removal of obvious errors – the data is checked for obvious errors, such as negative values, blank values or default values. Any suspect value needs to be checked and corrected, and if no validation can be found, it should be removed from the database;

•spatial data check – the data is plotted spatially by means of a post-plot to ensure that the data is plotting in the correct position. Any co-ordinate error needs to be checked and corrected. This process cannot be put into a macro, and needs to be done manually; and

•the primary assay results captured in the database were validated by spot checking a selection of drill holes used in the current Mineral Resource estimate.

The QP did not identify any critical errors in the database.

A peer review is conducted over the drill hole core and the inputs and results before each drill hole is signed off as being suitable for use.

Biannual audits are undertaken on the underground chip sampling process by the Geosciences Manager.

9.2Limitations to the Data Verification

None.

9.3Comment on Data Verification

The QP is of the opinion that the Doornkop drill hole and sample database is reliable and adequate for the purposes Mineral Resource estimation.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

Doornkop and its processing facility have been in operation since 1986 and as such the processing method is well established for the style of mineralisation processed. Harmony is able to make use of historical trends and data as the basis for their recovery assumptions. Prior to recommencing mining on the South Reef, a metallurgical test work campaign was undertaken.

10.1Extent of Processing, Testing, and Analytical Procedures

The objective of the test work performed by Mintek SA (“Mintek”) was to evaluate if the South Reef could be processed in a similar way to the Kimberley Reef, which had already been successfully processed for some time. The test work investigated the effectiveness of the existing gold extraction techniques applied to the South Reef, and evaluated if there were optimisation opportunities in:

•gravity concentration;

•grind size;

•leach residence time;

•sodium cyanide (NaCN) concentration, and

•carbon contact time.

10.2Degree of Representation of the Mineral Deposit

Two samples from existing South Reef workings were taken; one sample of 75kg was of reef material only, while the second sample of 80kg was a full face sample. These samples were prepared, analysed and subjected to the test programme. Gold dissolution test work was conducted on all samples delivered from the underground workings as well as the products generated from the mineralogical investigation.

The head grade of the samples is presented in Table 10-1, and these grades were considered representative of the ore to be mined.

Table 10-1: Head Grades of Samples


Sample Description			Gold Grade (g/t)
Reef only sample			30.45
Full face sample			8.70

10.3Analytical Laboratory Details

The metallurgical test work of the ore samples from Doornkop was conducted by Mintek. Mintek’s services include an analytical service division which specialise in geochemical and metallurgical analyses, and they have laboratories that conduct testing according to ISO17025 requirements.

10.4Test Results and Recovery Estimates

The test results did not indicate any material changes were necessary to the Doornkop processing lant in order to treat South Reef material, and that recoveries similar to those achieved from the Kimberley Reef were likely. As the Doornkop plant had successfully and consistently treated South Reef in a production environment in the interim, these results do not inform the Mineral Resource or Mineral Reserve estimates herein, and they are therefore not discussed in any further detail.

10.5Commentary on Mineral Processing and Metallurgical Testing

Doornkop and its processing facility have been in operation since 1986, as such the processing method is considered well established for the style of mineralisation processed. The plant makes use of historical trends and data as the basis for their recoveries; however, when new projects are planned, test work is performed.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

11Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

The narrow-tabular nature of the Kimberley and South Reefs at Doornkop lend themselves to the estimation of grade and thickness in two-dimensional (“2D”) block models, without the requirements for geological wireframes. An independent process of building a set of three-dimensional (“3D”) wireframes of the structural interpretation to inform mine planning and the Mineral Reserve estimates is also undertaken.

Gold values are estimated into geological domains using geostatistical parameters that reflect the variability of the data and the data spacing, utilising a customised script in DatamineTM modelling software (“DatamineTM”). This allows the steps in the process to be repeated, recorded and easily audited.

11.1Geological Database

The Mineral Resource estimate is based on the surface and underground exploration data obtained up to 31 December 2021 for both the South and Kimberley Reefs. The validated database contains a total of 20 surface drill holes, 1,823 underground drill holes and 66,471 underground channel samples. The database is exported from Fusion ClientTM into DatamineTM.

The current Kimberley Reef Mineral Resource was last modelled in 2014 after which the Top Mine was closed. The Mineral Resource included validated drill holes and underground channel sampling that can be found in their respective databases.

11.2Global Statistics

Histograms and statistics of the raw data are calculated for each geological domain for comparative purposes. The Coefficient of Variation ("COV"), calculated by dividing the standard deviation with the mean, gives a measure of the variability of the data. A high CV (>1) represents highly variable or highly skewed data, which may require some form of capping of extreme values to lower the COV to a more reasonable value (~1).

A summary of the global statistics, by geozone, for the Kimberly and South reefs is provided in Table 11-1 and Table 11-2, respectively.

Table 11-1: Summary of the Gold Assay Descriptive Statistics for the Kimberley Reef


Geozone	No. Samples	Minimum (cmg/t Au)	Maximum (cmg/t Au)	Mean (cmg/t Au)	Variance	SD (cmg/t Au)	COV
1	2,417	2.00	4,521	706	N/A	564	0.80
2	422	3.00	4,541	1,086	N/A	787	0.72
3	5,087	6.00	4,723	1,116	N/A	754	0.67
4	520	14.00	3,981	601	N/A	543	0.90
5	2,038	1.00	7,051	1,018	N/A	976	0.95
Total	10,484

Table 11-2: Summary of the Gold Assay Descriptive Statistics for the South Reef


Geozone	No. Samples	Minimum (cmg/t Au)	Maximum (cmg/t Au)	Mean (cmg/t Au)	Variance	SD (cmg/t Au)	COV
1	2,705	0.50	10,702	633	511,803	715	1.13
2	32,936	0.50	27,030	872	944,788	972	1.12
3	15,179	0.19	33,409	1,058	1,511,556	1,229	1.16
4	13,649	0.54	26,453	1,131	2,251,695	1,501	1.33
Total	64,469

11.3Geological Interpretation

The geological interpretation is based on sedimentological principles for the reefs. The imported data is assigned to a series of geological domains, or geozones, for generating the geological models. The geological domains or zones for the Kimberley and South reefs are graphically presented in Figure 11-1 and Figure 11-2, respectively.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 11-1: Kimberley Reef Geozones

Figure 11-2: South Reef Geozones


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

The estimation domains are based on geology. The imported data is attributed to the appropriate Kimberley Reef or South Reef geological domains (or geo-zones) for statistical and geostatistical analysis.

11.4Structural Wireframe Model

A set of 3D structural wireframes is generated, representing the geological interpretation for each reef. This is informed by the geological drilling, chip sampling, underground geological mapping and survey point data (or underground pegs) data and is created in Datamine™ in order to allow subsequent mine design and planning to take cognisance of the latest geological information. These wireframes are not required for the Mineral Resource estimates.

11.5Compositing

Compositing is undertaken over the full width of the reef intersection.

11.6Capping

Outlying values (both for cmg/t and channel width) are calculated per domain at an optimal percentile using the “QUANTILE” process. The “capping” allows for meaningful semi-variogram modelling and avoids potential over-estimation due to extreme sample values.

11.7Variography

11.8Mineral Resource Estimation Methods

11.8.1Estimation Parameters

The orientations and ranges of each geo-zone’s semi-variogram are used to determine the optimised set of kriging estimation parameters. The search ellipse is aligned with respect to its range and direction, to the direction of the associated semi-variogram, as well as the range distances.

The estimation method used for the local Measured Mineral Resource estimates is Ordinary Kriging (“OK”) and for the Indicated and Inferred estimates, simple macro kriging (“SMK”).

Estimates are generally kriged into 30mx30m blocks for the Measured category, using point support data. The Indicated category estimates are kriged into 60m x 60m blocks, using the associated semi-variograms, utilising a macro kriging declustered data set. Similarly, the Inferred category estimates are kriged into 120m x 120m blocks, using the associated semi-variograms.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

The distribution of the Kimberley Reef cmg/t estimates is shown in Figure 11-3, whilst those of the South Reef are indicated in Figure 11-4.

11.8.2Relative Density and Tonnage Calculation

The relative density currently used for tonnage calculation at Doornkop is an average of 2.77t. Reef volume is determined by block area multiplied by the thickness estimate. The tonnage of each reef horizon is determined by multiplying the volume by the relative density.

11.8.3Model Validation

The QP validated the Mineral Resource model using the following:

•visual comparisons with raw drill hole data to observe any anomalies or trends;

•a comparison of the LOM scheduling using the model compared with previous models, and

•a year-on-year comparisons of summary statistics, total gold, average grade etc;

11.9Mineral Resource Evaluation

The Mineral Resource estimate for Doornkop is considered to have reasonable prospects for economic extraction. The cut-off value for the Mineral Resources has been determined as 638cmg/t, based on the economic assumptions presented in Table 11-3, at the effective date of 30 June 2022. This cut-off considers high-level assumptions for mining and processing, as well as Doornkop’s likely cost structure, informed by the ongoing mining operations.

Table 11-3: Harmony Economic Parameters (30 June 2022)


Description	Unit	Value
Gold price	USD/oz	1,723
FX rate	ZAR:USD	15.35
Gold price	ZAR/kg	850,191
Plant recovery factor	%	96.65
Unit cost	R/t	2,798

The gold price in Table 11-3has been derived by the Harmony Executive Committee. The QP considers the price to be appropriate for Mineral Resource estimation and is slightly higher than that used for estimating Mineral Reserves (USD1,546/oz).

11.10Mineral Resource Classification and Uncertainties

The Mineral Resources have been classified into Measured, Indicated and Inferred categories, according to the SAMREC Code and have taken cognisance of the S-K 1300 definitions. The classification is based on geostatistical and geological confidence.

For the geostatistical confidence, the Measured Mineral Resource model is constrained by the Slope of Regression Estimation Confidence (Section 11.8.1), and the Indicated and Inferred Mineral Resource models are constrained by their kriging estimation parameters.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 11-3: Distribution of Kimberley Reef cmg/t Estimates

Figure 11-4: Distribution of South Reef cmg/t Estimates


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Doornkop considers that the structural model adequately accounts for geological losses, and no additional discount is applied to the Kimberley Reef or South Reef Mineral Resource models to account for unknown geological structures.

The application of the classification criteria above results in the following set of approximate sample spacings for each Mineral Resource category:

•1,000m x 1,000m for Inferred Mineral Resources;

•100m x 100m for Indicated Mineral Resources; and

•5m x 5m for Measured Mineral Resources (underground channel sampling).

Geological losses are applied according to Mineral Resource category as follows:

•Measured: 3% ;

•Indicated: 9%; and

•Inferred: 15%.

11.11Mineral Resource Estimate

The geological model was prepared using sampling data to end December 2021. The Mineral resource estimate takes into account mining depletions from July 2021 to June 2022. The Qualified Person responsible for the estimate is Mr H. Chirambadare, Ore Reserve Manager, and Harmony employee. The Mineral Resource estimate for Doornkop as at 30 June 2022, exclusive of Mineral Reserves is presented in Table 11-4. The location of the Kimberley Reef and South Reef Mineral Resources in relation to the mining right boundaries are presented in Figure 11-5 and Figure 11-6, respectively.

Table 11-4: Summary of the Doornkop Mineral Resource Estimate as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC
Mineral Resource Category	Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Measured	18.202	3.54	64,492
Indicated	10.528	2.97	31,245
Total / Ave. Measured + Indicated	28.730	3.33	95,738
Inferred	13.414	4.38	58,707
IMPERIAL
Mineral Resource Category	Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Measured	20.064	0.103	2.073
Indicated	11.605	0.087	1.005
Total / Ave. Measured + Indicated	31.669	0.097	3.078
Inferred	14.787	0.128	1.887
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr H Chirambadare, who is Ore Reserve Manager at Doornkop, and a Harmony employee.
2. The Mineral Resource tonnes are reported as in-situ with reasonable prospects for economic extraction.
3. No modifying factors or dilution sources have been included to in-situ Reserve which was subtracted from the SAMREC Resource in order to obtain the S-K 1300 Resource.
4. The Mineral Resources are reported using a cut-off value of 638cmg/t determined at a 90% profit guidance, and a gold price of USD1,723/oz.
5. Tonnes are reported rounded to three decimal places. Gold values are rounded to zero decimal places.
6. Mineral Resources are exclusive of Mineral Reserves. Mineral Resources are not Mineral Reserves and do not necessarily demonstrate economic viability.
7. Rounding as required by reporting guidelines may result in apparent summation differences.
8. The Mineral Resource estimate is for Harmony’s 100% interest.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 11-5: Location of Doornkop Kimberley Reef Mineral Resources and Reserves


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 11-6: Location of Doornkop South Reef Mineral Resources and Reserves


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It is important to note that the combined Measured and Indicated Mineral Resources, inclusive of Mineral Reserves, are carried forward to the Mineral Reserves conversion and subsequent LOM planning.

Factors that may affect the Mineral Resource estimates include the following:

•gold price assumptions;

•exchange rate assumptions;

•operating and capital cost assumptions;

•gold recovery assumptions;

•geology related risks; and

•operational risks

11.12Mineral Resource Reconciliation

The combined Measured and Indicated Mineral Resource gold content estimate for 2021, exclusive of Mineral Reserves, decreased by less than 1%, from 3.456Moz gold to 3.078Moz gold. This was in part due to depletions, and the net positive increase in Mineral Resources through the long inclined borehole (LIB) exploration drilling programme.

11.13Comment on Mineral Resource Estimates

In the opinion of the QP:

•testing the realistic prospects for eventual economic extraction has not been done since 2014 when Top Mine was closed. The plan for the new financial year is to declare a Mineral Resource on the new geological model which was created subsequent to a seismic survey and data harvesting exercise from surrounding mines being conducted. This allowed for the inclusion of historic geological information which enhanced the confidence in the geological model. Previously a smaller portion of the Mineral Resource base was declared to indicate the Mineral Resource potential while upscaling the Mineral Resource confidence;

•the methodologies applied in estimating the Mineral Resource are based on historical well-established practices;

•there is no known geological data that was not used that could materially influence the estimated quantity and quality of the Mineral Resource;

•the model for the Mineral Resource estimate is sound and it was not deemed necessary to consider alternative interpretations for the current Mineral Resource Statement.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

The reported Mineral Reserves are derived through a business planning process and consideration by the Chief Operating Decision Maker (“CODM”). The business planning process comprises multi-functional reviews inclusive of all mining, support and service departments that are involved in the verification of the inputs and the Modifying Factors. The CODM comprises various executive roles and responsibilities. These executives assess the profitability, the revenue and production costs. The CODM also considers capital expenditure, gold production and tonnes milled when assessing the overall economic sustainability.

12.1Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

All reported Mineral Resources and Mineral Reserves originate in situ from the orebody hosted at Doornkop. The Mineral Reserves are considered based on several factors, including:

•the latest geological structure and associated Mineral Resource estimation models that constrain the layout for the mine design and LOM planning;

•only Measured and Indicated Mineral Resources are used to derive the Mineral Reserves;

•the need for regional rock engineering stability pillars which are used for mining and geological support;

•the extent or lack thereof of pillar mining, mining of remnant areas, reclamation of broken ore out of old areas, tailings, or any other source;

•the conventional breast mining method in use at Doornkop, taking into consideration the mining and rock engineering design guidelines; and

•the sources of dilution and relevant Modifying Factors.

12.2Modifying Factors

A summary of the Modifying Factors used to convert the Mineral Resource to the Mineral Reserve for Doornkop is presented in Table 12-1.

Table 12-1: Doornkop Mineral Reserves Modifying Factors (30 June 2022)


Modifying Factor	Unit	Value
Relative Density	t/mᶟ	2.77
Stoping width	cm	123
Gully (dilution)	%	4.36
Off Reef	%	3.02
Waste to Reef	%	0.27
Flushing tons	%	0.00
Discrepancy	%	16.37
Mine Call Factor	%	81.00
Plant Recovery Factor	%	96.65
Mine Recovery Factor	%	78.29
Plant Call Factor	%	100.00
Mineral Reserve cut-off	cmg/t	739.00

The Modifying Factors are based on an analysis of 24-months of historical data, modified to take into account changes in future strategies as appropriate. The plant recovery shown in Table 12-1 is also consistent with the processing and recovery methods as described in Section 14.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

12.3Mineral Reserve Estimate

The Qualified Person responsible for the estimate is Mr H. Chirambadare, Ore Reserve Manager, and Harmony employee.

The Doornkop Mineral Reserves are presented in Table 12-2, whilst the locality of the South Reef Mineral Reserves is shown on Figure 11-6. The Mineral Reserves are mineable within the mine's current infrastructure. They are declared as delivered to the mills, except for the recovered gold content. This gold content is calculated after factoring in the plant recovery factor, as shown in the Modifying Factors (Table 12-1) and is the gold content which informs the economic assessment.

Table 12-2: Summary of the Doornkop Mineral Reserve Estimate as at 30 June 2022 1-5


METRIC
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (g/t)	Gold Content (kg)
Proved	5.876	4.46	26,179
Probable	7.924	4.29	33,988
Total (Proved + Probable)	13.799	4.36	60,167
IMPERIAL
Mineral Reserve Category	Milled Tonnes (Mt)	Gold Grade (oz/t)	Gold Content (Moz)
Proved	6.477	0.130	0.842
Probable	8.734	0.125	1.093
Total (Proved + Probable)	15.211	0.127	1.934
Notes:
1. The Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr H Chirambadare, who is the Doornkop Ore Reserve Manager, and a Harmony employee.
2. Tonnes, grade, and gold content (oz) are declared as net delivered to the mills.
3. Figures are fully inclusive of all mining dilutions, gold losses and are reported as mill delivered tonnes and head grades. Metallurgical recovery factors have not been applied to the reserve figures.
4. Gold content is recovered gold content after taking into consideration the modifying factors.
5. Mineral Reserves are reported using a cut-off grade of 739cmg/t determined using a gold price of USD1,546/oz gold.

The Kimberley Reefs are not included in the Mineral Reserve estimate as there is no immediate, foreseeable opportunity for extraction.

12.4Mineral Reserve Reconciliation

The Mineral Reserve has increased from 1.513Moz as at 30 June 2021 to 1.934Moz as at 30 June 2022, which is primarily related to mining depletions and an increase in Mineral Reserves due to the LIB exploration programme and the winzing strategy employed at the operation.

12.5Commentary on Mineral Reserve Estimate

The Mineral Reserves estimates include the South Reef only.

The Mineral Reserve estimates at Doornkop are informed by a business planning process and take into consideration all the necessary Modifying Factors. The mine is currently mining profitably, and the Mineral Reserve estimates are supported by an economic analysis which indicates positive cash flows. There are no obvious material risks that could have significant effect on the Mineral Reserves.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

13Mining Method

Section 229.601(b)(96) (13) (i-v)

Doornkop is a deep level underground gold mine currently operating at depths ranging between 1,870m and 1,950m below surface.

13.1Sequential Grid Mining

The mining method used at Doornkop is conventional breast mining, in a sequential grid, also known as sequential grid mining (“SGM”).

Doornkop does not use backfill for the support of stopes. The SGM method makes use of dip pillars and reduced mining spans with pre-developed tunnels, aimed at controlling geotechnical stress. The Geotechnical Engineering department provides detailed numerical modelling and guidance regarding the best mining practices to be applied to minimize risk associated with seismicity.

The mining sequence at Doornkop is typically a V-shaped configuration, colloquially referred to as the “inverted Christmas tree”. An underhand face configuration is adopted when mining towards the west and an overhand face configuration when mining towards the east. An example of the mining sequence used at is shown in Figure 13-1.

Primary development is done off-reef (in waste rock), while secondary development is done on-reef (in the mineralised zone). In primary development, horizontal haulages are developed from the vertical shaft, extending to the extremities of the mining level. The inter-level spacing, which is the perpendicular distance between two consecutive level stations underground, is typically 50m. Further development is done at set intervals along the haulages towards the mineralised zones in the form of crosscuts. For secondary development, an inclined excavation that connects two levels is established, referred to a raise or winze, depending on the upwards or downwards direction of the development. A schematic layout is provided in Figure 13-2.

The mine design includes pillars in the stoping areas that are designed to minimises the risk of unpredicted collapse of stoping areas. These collapses can compromise the safety of mining operations and may lead to permanent closure of stoping panels or sterilisation of ore. The major geological features are stabilised through bracket pillars. A key feature of the SGM mine design is the stabilizing regional pillars as shown in Figure 13-1. During the mine design process, the pillar dimensions for a particular layout and depth are determined using the assumptions and model created by the geotechnical team. More details of the geotechnical and geohydrological considerations are found in Section 13.5.

The SGM employed offers various advantages, the critical one being increased safety. As part of the strategy to maximise flexibility and mitigate the risks associated with the production plan, development is done 24 months ahead of mining. A noticeable characteristic of the SGM method is that mining from the raises is advanced in only one direction at a time, which is directed towards the stabilizing or regional pillars. This SGM mining sequence also eliminates the creation of remnant pillars (a feature in breast mining) reducing the risk of seismicity

13.2Mine Design

The mine design strategy aims at maximising the safe extraction of ore, while minimising the risk of geotechnical failures, which can result in operational disruptions and dangerous working conditions. The most critical parameter that varies in mining is the geology of the area. The South Reef horizons have been subject to faulting and intrusions by igneous dykes and sills that cut across the reefs.

The occurrence of geological faults is also a source of groundwater during mining operations which may lead to production delays, geotechnical risks, and the potential of flooding. Depending on the geology of the dyke or sill, a change in the mining direction may be required, or as in the case of low-risk scenarios the Rock Engineering department may suggest a safety and support strategy to mitigate the associated geotechnical risk. A change in mining direction may result in Mineral Resource losses, or an increase in dilution.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 13-1: Plan Showing the SGM Sequence at Doornkop


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 13-2: Plan view of a Typical Footwall Crosscut at Doornkop


Figure 13-3: Section of a Typical Footwall Crosscut and Raise Layout at Doornkop
.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

A mine design that is sufficiently informed with geological data is progressed to the mine planning phase. Mine planning is done on a macro scale as well as on a micro scale. On a macro scale, a regional cut-off grade is applied and the material below cut-off is excluded from the mining model. On a micro scale, the mining model is then subject to constraints that are applied because of the geotechnical design and other limitations.

At Doornkop, reefs are accessed through a vertical twin shaft system with a supporting sub-vent shaft. Section 15 provides more details of the surface and underground infrastructural layout supporting Doornkop’s mining operations. The critical working levels at Doornkop are between 192 level and 212 level.

Development is predominantly in the footwall and the access haulages are typically positioned 75m to 90m below the reef plane. The presence of large geological structures within the raise line can influence these footwall development positions. As part of primary development, a crosscut is developed in the direction of the mine workings. A plan view of a typical footwall crosscut is shown in Figure 13‑3.

A section view of the inclined secondary development, which is used to access the reef contact, and advanced from the position of respective crosscuts is presented in Figure 13‑3. Ore is extracted from stoping panels established from the inclined development. The typical stoping panel dimensions are a panel length of 27m and a stoping width on the South Reef of 1.23m.

13.3Mine Design Parameters

Mine design is done internally by Harmony DeswikTM (Version 3) software. The geological models, and the geotechnical parameters formulated by the Rock Engineers, are used as a basis of the mine planning process. The mine design parameters are shown in Table 13-1. The stopes are mined from the centre raise line, one direction at a time, towards the stabilizing pillars (Figure 13-1). Additional support is provided using bracket pillars, to ensure safety around major geological features.

Table 13-1: Key Mine Design Parameters


Parameter	Unit	South Reef
Regional Stability
Dip stabilizing pillar dimensions
Strike span	m	15
Dip span	m	150-380
Strike stability pillar spacing¹	m	130-180
Access haulages middling to reef	m	50-75
Primary Development
Advance	m/month	34
Secondary Development
Advance	m/month	24
Economic Parameters
Cut-off grade (planning)	cmg/t	739
Notes: 1. Pillar spacing is measured skin to skin.

13.4Mine Plan Development and Life of Mine Schedule

The SGM mining method is dependent on development staying ahead of the mining front, so that accurate geological information is gathered and included in final designs before mining commences. This also enables, planning and scheduling activities to be accurately sequenced, which leads to better planning, safer working conditions, and improved profitability.

The LOM plan and scheduling starts with the use of the planning model, which is modelled at a 739cmg/t cut-off grade. The mining rates used in determining the LOM plan are based on the current and expected operational performance, notwithstanding any unforeseen underground mining constraints. The remaining LOM for the operation is planned for 16 years, with a planned mining rate averaging at approximately 1,080ktpa (milled tons) over the LOM period. The extent of the Doornkop LOM plan is shown in Figure 13-4.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 13-4: Doornkop LOM Plan


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

13.5Geotechnical and Geohydrological Considerations

Apart from the geotechnical risks that can be caused by the existence of geological structures and the presence of water and gas, there is also a seismicity risk at Doornkop due to the depth of the current mining operations. Doornkop maintains a network of seismic and geohydrological monitoring points. The geotechnical model takes the latest geological structural model and the selected mining method into account to design a suitable pillar layout.

The purpose of the pillar designs, regardless of the pillar type, is to customize them to the prevailing mining conditions, with the objective of making the mine design safe, practical, easy to implement, and profitable. These pillars include dip stabilizing-, bracket- and strike pillars. The details of the pillar design can be found in Table 13-1. The dimensions depicted for the pillars are standard and are adjusted depending on planned bracketing of geological structures, backfilling or in some circumstances, if patches of low value reef have been encountered. The Rock Engineers measure the release of seismic energy known as the energy release rate to establish backfilling support requirements and pillar design limits.

This model is also used to manage and monitor the occurrence of ground water and gas intersections at the mine. Doornkop has encountered water-bearing fissures and faults, as well as methane, in its mining history. There is always some risk associated with flooding and gas explosions at the mine, in the event of an unforeseen influx of uncontrolled water or gas, from within the mining operations or from neighbouring mining operations.

From a regional geohydrological perspective, Doornkop falls within the Zuurbekom compartment. Active pumping is continuously underway around the shaft, to avoid water ingress. Limited and insignificant water ingress does take place through mine workings, and underground water is primarily associated with the Chevron Fault and the Black Duck Dyke.

Methane gas pathways are identified during geological mapping and investigation of seismic data. Attributes based on structural interpretation, give rise to the identification and understanding of methane gas migration pathways. The identification of this structural architecture is critical for the mine as it provides a better understanding of these pathways. Any risks identified from the presence of gas is controlled though the use of Doornkop’s ventilation and refrigeration systems. The Geology department maintains detailed electronic records of all water and gas intersections at the operations.

Seismic monitoring is done using uniaxial and triaxial sensors, which measure seismic activity on surface and underground. The sensors are placed strategically based on Rock Engineering recommendations. In addition to the monitoring done through the systems that are in place, visual monitoring of the mining excavations is done by the Rock Engineering department, mainly focusing on the conditions of the pillars.

13.6Mining Operations

Doornkop has an extensive operational history and is operating within well-defined infrastructure. All ore is currently sourced from the South Reef and the mined ore is processed at Doornkop’s processing plant.

13.7Mining Rates

The Doornkop LOM is 16 years and includes mining of the South Reef only. The annual forecasted tonnages and gold produced for the LOM is shown in Figure 13-5 and Figure 13-6, respectively.

13.8Mining Equipment and Machinery

Development and stoping operations at Doornkop require the following equipment:

•haulages and associated development require hydro-powered (“HPE”) drill rigs for underground excavations and tunnelling;


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 13-5: Graph of Doornkop LOM Plan - Tonnes and Grade

Figure 13-6: Graph of Doornkop LOM Plan – Gold Produced (kg)


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

•production drilling in stopes requires compressed air hand-held drills;

•raise boring drill rigs are used for the development of ventilation connections and ore passes; and

13.9Grade and Dilution Control

Broken ore grade control centres on the measurement of tonnage and grade through the ore flow, from the blasted stope to the delivery to the plant.

At Doornkop, Mine Surveyors measure stopes monthly. The Mine Surveyors are accompanied by Grade Control Officers, who assess the extent to which blasted material has been cleaned from the stope and identify any tonnage lock-ups. Follow up checks are done on previously identified and reported lock-ups, off-reef mining and areas where reef has been left in the footwall or hanging wall. On the monthly measuring day, all relevant information is extracted electronically in order for the necessary adjustments to be made to the grade and tonnage calculations.

13.10Ore transport

The blasted ore from the stoping panels is moved with winch-operated scrapers along gullies to ore passes where it gravitates down towards the loading boxes in the footwall cross-cuts below the stopes. The ore is discharged into rail hoppers and transported, via front-driven locomotives to dedicated inter-level transfer systems that gravity feed to the main silos which are from 207 to 212 Level. The ore is hoisted up the sub-vertical shaft and transferred to the main shaft rock system and silos. Once hoisted up the main vertical shaft to surface, the ore is transported to the processing plant via conveyor belt.

13.11.Mining Personnel

Doornkop is labour intensive. The mine is supported by approximately 3,581 mine-employed personnel and approximately 859 labour personnel are in direct production. The underground mining operations uses an 11-hour shift system, operating a 2-shift cycle per day. The mining personnel operating on this shift cycle, comprise of workers performing development, stoping, and other additional tasks. These personnel are sub-divided and organised into support, breaking (also referred to as drill and blast), and cleaning crews.

The supporting and breaking crew complete tasks during the day shift, while cleaning is done during the night shift. A development crew is responsible for one development end at a time. Doornkop plans to achieve an average of 20,342m2 per month, with a crew complement of 69, or approximately 295m2 /crew/month.

13.12Commentary on Mining Method

The SGM mining method employed by Doornkop is appropriate for the depth and levels of seismicity experienced at the operation. The mine design, planning and scheduling for the mine is developed using DeswikTM (Version 3) software, considering the geotechnical model and related parameters.

The main geotechnical and geohydrological risks include the presence of gas, ground water and seismicity, which are managed through the integrated monitoring systems, and incorporated into working mining models that inform daily mine planning decision-making.

The mining rates, machinery and equipment, ore transport, grade and dilution control, and labour resourcing and optimisation are driven by the mine schedule and continuous improvement initiatives on-site.


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14Processing and Recovery Methods

Section 229.601(b)(96) (14) (i-iv)

Doornkop's gold processing facility has been in operation since the mid-1980s. The technology used to process the gold-bearing ore is well established and is suitable for the style of mineralisation.

14.1Mineral Processing Description

All of the ore mined at Doornkop is treated and smelted at the Doornkop plant. The flowsheet is presented in Figure 14-1.

The ore is initially reduced in size by crushing followed by semi-autogenous (“SAG”) milling after which a conventional gold leach process (cyanidation), incorporating liquid oxygen injection is applied. The cyanidation process is one of the most common methods for the recovery of gold from auriferous ores. The use of cyanide leaching for gold recovery is based on gold’s properties, mainly its solubility in cyanide solutions.

Once the gold is dissolved into the cyanide solution it has a higher ability to adsorb (attach) onto activated carbon through the application of carbon in pulp (“CIP”) technology.

The loaded carbon then enters the elution columns, which are high pressure vessels that circulate the loaded carbon extracting the gold. The gold will “deabsorb” from the activated carbon and attach onto stainless-steel wool by means of electrowinning. The CIP circuit makes use of gravity flow of slime between the consecutive counter-flow stages in order to recover recirculate the activated carbon back into the system. Following this process, the cathode steel wool is smelted after drying in the calcining ovens. The bullion (gold) will then be dispatched to Rand Refinery for final refining, with silver as a by-product.

14.2Plant Throughput, Design, Equipment Characteristics and Specifications

The milled ore from Doornkop follows a standard cyanide leach, CIP and electrowinning process in order to extract the gold bullion. The key equipment specifications of the plant are provided in Table 14-1.

Table 14-1: Key Equipment Specifications at Doornkop Gold Plant


Equipment	Unit	Capacity
Mill Silo (per silo – x no. silos)	Volume / silo (m3)	1,875
	Tonnes	3,000
ROM Mill (per mill – 5 mills)	Volume / mill (m3)	143
Leach (10 leach tanks)	Dry tonnes / tank	1,372
CIP (13 tanks)	Volume / tank (m3)	213
	Dry tonnes / tank (t)
Elution (2 tanks)	Volume / tank (m3)	7
	Carbon (t)	3
	Cycle time (hr)	AARL Process
Thickener (x thickeners)	ID (m)	60
	Dry tonnes (tpm)	50,000

The plant is currently operating below its designed throughput capacity and in the past has operated it the throughput required to deliver the forecasted ounces of gold in the LOM (Table 14-2).

Table 14-2: Design Throughput Versus Actual Throughput at Doornkop Gold Plant


	Throughput
Equipment	Design (t/hr)	Actual (t/hr)
Mill	95	75
Leach	300	223
CIP	300	223
Thickener	160	110


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Figure 14-1: Schematic Flow Diagram of the Metallurgical Process


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Table 14-3: Leaching process material and properties


Process Requirements			Properties
pH			10.5 - 11.5 (controlled by lime addition)
Cyanide			180 - 300ppm as 100% NaCN
Leaching Time			24 - 40 hours
Oxygen			Air or oxygen sparged, 5 - 25ppm O2
Cyanide Relative Density			1.38 - 1.45, 40-50% solids at SG 2.7

14.3Energy, Water, Process Material and Personnel Requirements

The processing plant requires the following consumables are presented in Table 14-4:

Table 14-4: Reagent consumption


Equipment	Unit	Value
Steel Balls	tpm	26.4
Lime	tpm	58.6
Flocculant	tpm	0.3
Cyanide	tpm	18.2
Carbon	tpm	4.1

The Doornkop Plant requires approximately 52,000MWh per annum of electricity, 130kL of water per annum, and has approximately 149 employees.

14.4Commentary on the Processing and Recovery Methods

The metallurgical process is a well-tested technology which has been in operation at the mine since 1986. The recoveries used in the business plan were based on historic performance. The methodology applied considered the historical metallurgical recovery (18-month period) for the relevant ore source. The actual monthly head grades were reviewed and the relationship between the head grade and recovery were used as base for the Business Plan (“BP”) 2022/23 metallurgical recoveries, taking into consideration the relevant forecast head grades (Figure 14-2).


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Figure 14-2: South Reef Historical Plant Recovery


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15Infrastructure

Section 229.601(b)(96) (15)

Doornkop is an established operation, and the currently available infrastructure is sufficient to support the mine plan. Doornkop is accessible via the national and provincial roads (Figure 3-1). The general layout of Doornkop infrastructure is presented in Figure 15-1. Google Earth images are provided of the shaft area and plant in Figure 15-2 and Figure 15-3, respectively.

15.1Surface Infrastructure

The infrastructural layout includes hauling and hoisting facilities (shaft); logistical support for core handling, sampling, and transporting; a mineral processing plant; ore and waste facilities; tailings infrastructure; roads; water and power supply; ventilation and refrigeration systems; stores and workshop support; electrical supply; offices; housing and security.

15.1.1Ore and Waste Rock Storage Facilities

The gold bearing ore Doornkop is processed at the mineral processing plant (Figure 15-3). There are two ROM ore storage silos on surface, with a combined capacity of 5,600t.

Waste was previously transported and deposited on the rock waste dump located adjacent to the plant (Figure 15-3) however at present, waste mining at Doornkop is relatively modest, and the waste is treated by the plant.

15.1.2Tailings Storage Facilities

The tailings storage facility (“TSF”) is located north of Doornkop (Figure 15-1). The TSF is currently active and is owned and operated by Doornkop. All waste material from the mineral processing activities is accumulated at this TSF.

The TSF site has full engineering records including design, construction, operation, and maintenance plans. The design height is 49.9m and is engineered in an upstream raising method. The designed volume is 12.68Mm3 and has a planned utilisation ending in 2038.

15.1.3Power and Electrical

Electricity is sourced from Eskom, and the annual power consumption is in the order of 200GWhr. Doornkop power supply is designed to satisfy the planned LOM production and service requirements. The main power supply is managed and distributed via electrical sub-stations located on site.

15.1.4Water Usage

Doornkop has a sufficient supply of water to support mining and processing activities for the LOM. Water usage per annum is approximately 700ML.

15.1.5Logistics and Supplies

The procurement of supplies and equipment are handled centrally, via Harmony, and then delivered to Doornkop.

Harmony operates its own rail system which connects the shafts, reduction works, shaft stores, explosives magazine and the mine workshops. This system is used to transport ore between shafts and plant and to transport consumables between the surface stores to the respective locations, as required. It is also connected to the regional railway system.


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Figure 15-1: Doornkop Surface Mine Layout and Infrastructure


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Figure 15-2: Doornkop Surface Infrastructure
Google Earth Image Date September 2021


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Figure 15-3: Doornkop Processing Plant
Google Earth Image Date September 2021


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15.2Shaft and underground infrastructure

The existing shaft headgear is photographed in Figure 15-2, whilst the underground infrastructure used to access the reef is schematically presented in Figure 15-4.

The underground workings are accessed and mined via a Main and Vent Shaft, and a Sub-Vent Shaft. The Main Shaft extends from surface to 212 level, while the Vent Shaft extends from surface to 106 level. The Sub-Vent Shaft extends from 96 level to 212 level.

Currently production occurs between 192 level and 212 level, and access is provided by either the Main Shaft or the Sub-Vent Shaft.

All movement is systematically facilitated by respective man and material tramming sections. Underground broken rock handling is track-bound via locomotive material cars. These movements are supported by traffic management systems, including control room monitoring, decline logistics control, etc. Rock is transferred via gravity feed to the main silo infrastructure, located on 212 level. Rock is hoisted from 212 level to surface via the Main Shaft.

15.3Commentary on Infrastructure

The operational infrastructure including road, rail, offices, security services, water and power supply is adequate. Doornkop is well-established with sufficient logistical and infrastructure support for the existing and planned mining operations.


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Figure 15-4: Doornkop Schematic of Mine Shaft and Underground Infrastructure


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16Market Studies

Section 229.601(b)(96) (16) (i-ii)

Gold is traded in a variety of markets/exchanges both in physical form through over the counter (“OTC”) markets, bullion banks and metal exchanges etc., and through passive investments such as exchange traded funds (“ETF’s”), which are based on gold prices and units representing physical gold which may be in paper or dematerialised form. Demand is driven by the jewellery market, bar and coin, use in technology, ETF’s and other financial products, and by central banks. An overview of the gold market is given in the following sections based mainly on data from the World Gold Council and GoldHub websites.

16.1Market Overview

16.2Global Production and Supply

Gold production and supply is sourced from existing mining operations, new mines and recycling.

16.2.1New Mine Production

16.2.2Recycling

16.3Global Consumption and Demand

16.3.1Jewellery


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16.3.2Investment

16.3.3Currency

16.4Gold Price

16.4.1Historical Gold Price

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

16.4.2Forecast Gold Price

The gold price forecast of USD1,546/oz is conservative if corroborated against a long-term broker consensus gold price outlook (Figure 16-2).

16.4.3Harmony Group Gold Hedging Policy

Harmony has a hedging policy which is managed and executed at Group treasury level on-behalf of its operating entities. The key features of the hedging programme are as follows:

•the policy provides for hedging (or forward selling) up to a maximum of 20% of expected gold production for a rolling 24-month period;

•the policy has no minimum quantity that should be hedged, and if an attractive margin above cost cannot be achieved (i.e., in a low gold price environment) then no hedges are entered into;

•Harmony enters into ZAR-denominated gold hedges for its South African operations (for the non-South African assets it enters into USD-denominated hedges);


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Figure 16-1: Graph of Annual Gold Price History – ZAR/kg

Figure 16-2: Graph of Consensus View of Forecast Gold Price


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•Doornkop does not enter into hedges in its own name but delivers bullion to Rand Refinery for refining on behalf of Harmony. Rand Refinery is one of the world’s largest single-site precious metals refining and smelting complex in the world. Rand Refinery refine all of Harmony’s gold to at least 99.5% purity, and acting as agent, sells the gold on the daily spot London fixing price and make payment to the Harmony two days later;

•Doornkop does its mine planning and financial forecasts based on the estimated future gold price provided by the Group treasury, but its year-end actual financial results reflect the received gold price inclusive of the benefit of the hedging programme. Therefore, in theory, Doornkop receives a hedged gold price for a maximum of 20% of its gold sales with the balance attracting the spot price.

16.5Commentary on Market Studies

16.6Material Contracts

Harmony has contractual vendor agreements with various service providers and suppliers. The list of material contracts currently in place to support the Doornkop operation is presented in Table 16‑1. All the listed contracts are currently valid and in good standing. Terms, rates, and charges of contracts are considered consistent with industry norms. Contract management processes are in place and resourced so that contracts re-tendered and/or renewed as they approach expiry.

Table 16‑1: Material Contracts

Vendor Name

Nature of Service / Supply

Contract Number

Annual Value (ZARm)

Duration

Price Adjustment Mechanism

Termination Mechanism

Mega Space

Underground secondary support services

REL/19/04/0066-8

63.37

3 Yrs

Annually

30 Days

Tychoflash

Rail Upgrade & Maintenance

REL/22/03/0053 & REL/19/11/0057

47.89

5 Yrs

Annually

30 Days

Bidvest Protea Coin Security

Asset Protection

CS/17/11/0001-2

14.65

3 Yrs

Annually

30 Days

Imex

Semi -Trackless and Trackless Development

REL/20/06/0077-2

12.84

3 Yrs

Annually

30 Days

Rosond

Cover Drilling

REL/19/08/0011-2

10.18

3 Yrs

Annually

30 Days


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17Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Section 229.601(b)(96) (17) (i-vii)

The South African Government has an extensive legal framework within which mining, environmental and social aspects are managed. Harmony and its Doornkop operation is primarily regulated and managed by certain principal Acts (Section 17.3) as well as corporate policies, management systems and certain industry wide guidelines, including:

•Energy Efficiency and Climate Change Policy;

•Environmental Policy;

•Harmony Water Management Strategy;

•Biodiversity and Rehabilitation Position Statement;

•Socio-Economic Transformation Policy; and

•Corporate Social Responsibility Policy.

17.1Results of Environmental Studies

Doornkop has prepared multiple environmental impact assessments (“EIA”) for regulatory which, under the current legal framework, require stakeholder engagement. One of the specialist studies undertaken at the operation was a cultural and heritage resources surveys in 2009. The study was used to identify sites of cultural importance within the mining lease area. A graveyard was identified as an important cultural and heritage resource which required the area to be fenced off to prevent any damage from mining and community activities.

Harmony is committed to maintaining good relationships with regulatory authorities, industries, communities, business partners and surrounding stakeholders. Harmony is committed to maintaining good relationships with regulatory authorities, industries, communities, business partners and surrounding stakeholders. A detailed environmental impact register has been developed to identify all potential environmental impact of the operations. The main impacts were rated, and mitigation measures were proposed to minimise their impact on environment.

17.2Waste and Tailings Disposal, Monitoring & Water Management

The process of mining and beneficiation produce significant waste, typically consisting of:

•solid waste in the form of waste rock and overburden;

•liquid wastes in the form of wastewater and tailings slurry; and

•gaseous emissions such as liquefied petroleum gas.

Measures have been put in place for the handling and disposal of all hazardous chemicals (e.g. cyanide), hydrocarbons (i.e. hydraulic oils and diesel) and other chemicals to ensure the protection of human health and its potential impact on the environment. Harmony recognises that responsible and effective waste management can positively reduce its environmental impacts and mitigate associated environmental liabilities. Waste management is thus a priority focus area. Internally, guidelines on mineral, non-mineral and hazardous waste materials are included in the environmental management systems (“EMS”) implemented at Doornkop


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•freeboard control;

•water management;

•maintaining stability and the safety factor as advised by the engineer of record;

•erosion controls; and

•monitoring and control measures implemented to ensure continued compliance (including regular inspections, audits, and meetings on varying intervals with subsequent actions, minutes and reports).

As part of its mining, environmental and water approvals and licences, Harmony is required to implement monitoring programmes and plans to establish the operations impact on the environment. The compliance limits for the monitoring variable are included in the applicable EMPRs, WULs and environmental authorisations. The environmental monitoring implemented at Doornkop includes:

•ground and surface water monitoring;

•biodiversity monitoring;

•mentoring the ecological health Klipriver;

•waste classification and quantification;

•integrated waste and water management plan updates;

•water balance reviews;

•licence and authorisation compliance reviews; and

•air quality (i.e. noise and dust) and greenhouse gas emissions ("GHG") monitoring.

Doornkop has implemented Harmony’s corporate water management standard which applies to water in the entire mining lifecycle, including prospecting, project design and commissioning, operation and closure. The objective of the standard is to improve the efficiency of wate use in the entire mining life cycle and reduce the demand on natural and municipal water supply. One the measures in place is the treatment of underground fissure water at a reverse osmosis plant to potable standard. The treated water is used as drinking water quality at the mine offices, hostels, medical hubs and at the cheese factory. The quality of this water is monitored on a daily basis to ensure compliance to SANS 241 drinking water quality standard. Back wash water is pumped to gold plant for use in metallurgical processes.

17.3Permitting and Licences

In respect of environment, the following national Acts and the regulations promulgated thereunder provide the regulatory framework for mine permitting and licencing in South Africa:

•Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”);

•National Environmental Management Act, 1998 (“NEMA”);

•National Environmental Management: Waste Act, 2008 (“NEM:WA”);

•National Environmental Management: Air Quality Act, 2004 (“NEM:AQA”); and

•National Water Act, 1998 (“NWA”).

In line with MPRDA, Doornkop has an approved EMPR that formed part of the mining right application and is used as the basis for managing all environmental aspect/impacts at operation. Doornkop has all other environmental permits are in place required that cover the environmental, archaeological, waste and hydrological components of the operations. A summary of the status of environmental permits issued is presented in Table 17-1.


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Table 17-1: Status of Environmental Permits and Licences

Permit / Licence

Reference No.

Issued By

Date Granted

Validity

Environmental Management Programme Report (“EMPR”)

GP30/5/1/2/2/(09) EM

DMRE

07-Jun-2010

LOM

Certificate of Registration (Nuclear)

01/0025/06

National Nuclear Regulator

31-May-2003

LOM

Water Use Permit

33/2/323/24

DWS

01-Dec-1977

LOM

Integrated WUL (Draft)

16/2/7/C221/C024

DWS

01-Jan-2010

LOM

ISO 14001 Certification

631282

BSI

01-Nov-2021

01-Nov-24

Cyanide Management Certification

N/A

ICMC

01-Apr-2021

01-Apr-24

Precious Metal Refining Licence

1889/000251/66

SA Diamond & Precious Metals Regulator

01-Jun-2011

01-Jun-2024

Environmental Authorisation for Water Treatment Plant

GP30/5/1/2/2/(09) EM

DMRE

01-Aug-2016

LOM

Notes: DMRE - Department of Mineral Resources and Energy, DWS - Department of Water and Sanitation, BSI - British Standard Institute, ICMC-International Cyanide Management Code

A compliance assessment is required to be undertaken against the conditions of the EMPR every second year by an independent party and the report is submitted to the regulator. The audit conducted for the year 2019/20 indicates that Harmony’s Doornkop operation obtained a total compliance score of 94.31% for the audit. All permits are audited regularly for compliance and no material risks to the operations have been identified. An online Doornkop environmental legal register, available at www.drayer-legal.co.za, is used to monitor compliance and to obtain relevant legal environmental updates for the operation to ensure compliance.

In addition, Doornkop operation is both certified in terms of ISO 14001:2015 standard and by the International Cyanide Management Institute in terms of the cyanide management code. As required by both the ISO14001 standard and cyanide management code, every effort is made to either eliminate or minimize the impacts of mining activities on the environment and surrounding communities.

17.4Local Stakeholder Plans and Agreements

•contribute to areas that will have the most meaningful socioeconomic impact on communities, namely infrastructure, education and skills development, job creation and entrepreneurial development;

•enhance broad-based local and community economic empowerment and enterprise development initiatives;

•facilitate socio-economic development in local communities by means of Social and Labour Plans (“SLPs”) and corporate social responsibility programmes;

•support arts, culture, and sports and recreation; and

•build relationships based on trust within host communities.


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The ultimate aim of the SLP is to ensure the uplift of the social and economic circumstances of local communities surrounding the mine and are a prerequisite to securing and maintaining a mining right, with progress required to be reported each year. Implementation of the SLP is the responsibility of the General Manager and the Human Resources Leader at the operation. Harmony has budgeted to spend a total of ZAR14.6m in the next financial year to meet its SLP commitments. Of this amount, ZAR4m will be for mine community development.

17.5Mine Closure Plans

The Company makes an annual submission to the DMRE setting out the cost of closure in accordance with the MPRDA and the regulations issued thereunder. Harmony appointed Digby Wells Environmental, independent environmental consultants, to review and update the closure cost. The mine closure assessment was done in terms of regulation 53 and 54 of the MPRDA and in accordance with the requirements of NEMA. The cost of closure must be determined and updated during the LOM and the financial provision made in accordance with the estimated closure cost and the predicted LOM. The closure cost, as at 30 June 2022, was calculated to be ZAR109m including a 10% contingency allowance.

Harmony is required to make funding available in an amount equal to the cost of closure as determined under the MPRDA in the form of a trust fund and/or bank guarantees.

17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups

Most of the required environmental authorisations are in place and only require amendments to be made to reflect the current infrastructure at Doornkop. Based on current industry norms, a realistic timeframe to obtain relevant authorisations is estimated between 12 and 18 months.

17.7Local Procurement and Hiring

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Periodic inspections are conducted by the DMRE to verify compliance with applicable environmental laws, regulations, permits and standards. In addition, Doornkop has implemented an EMS in line with the ISO 14001 standard. The EMS is audited on an annual basis by a third party and includes the needs and expectations of interested parties.

As part of Harmony, Doornkop conducts its operation based on policies and systems that are aligned to its corporate sustainable development framework. Although Harmony is not a signatory to the International Council on Mining and Metals or the UN Global Compact, these form the guiding principles of the framework. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (“GRI”). Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (“CDP”) for both climate change and water. CDP is a global environmental


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disclosure system that supports companies to measure and manage their risks and opportunities on climate change, water security and deforestation.


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18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Economic parameters for the Harmony Group, including capital and operating costs, are determined and signed off by the CODM, before distribution to the business units. The capital and operating costs are reported in ZAR terms and on a real basis. Reporting periods are financial years, inclusive of the months from July to June. Rounding of figures may result in minor computational discrepancies.

18.1Capital Costs

The estimated capital costs for Doornkop are reported according to costs associated with ongoing capital development, major equipment outside the main operating sections which is termed AE, infrastructure development or shaft capital and capital associated with MCC, as presented in Table 18-1. An average contingency of 10% is applied where the capital cost estimates have a level of uncertainty, for example, where a capital project is an isolated occurrence. Where the capital cost estimates have a reasonable basis, there is no contingency applied. The estimated capital costs presented in Table 18-1 are carried forward and modelled in the cash flow.

18.2Operating Costs

A summary of the direct and indirect operating costs for Doornkop are presented in Table 18-2. The operating costs are forecasted on actual historical costs and are used as an input into the Doornkop cash flow model.

18.3Comment on Capital and Operating Costs

The capital and operating cost estimates for Doornkop are based on actual historical data, as well as budget forecasts. Therefore, the forecasted costs are reliable, and at minimum meet the confidence levels of a Pre-Feasibility Study. This approach of estimating capital and operating costs is consistent with industry practice. A record of the forecast and budget costs is maintained by the operation, allowing for an assessment of the alignment of the forecast and actual costs.

Table 18-1: Summary of Capital Cost Estimate for Doornkop


Capital Cost Element (ZAR'000s)			Total LOM (FY2023 - FY2038)
AE			235,200
Shaft Capital			206,405
MCC Capital			528,448
Total			970,053

Table 18-2: Summary of Operating Cost Estimate for Doornkop


Operating Cost Element (ZAR'000)			Total LOM (FY2023 - FY2038)
Mining			23,732,405
Services			3,609,957
Medical Hub / Station			793,274
Engineering			11,646,788
Total Costs By Process			39,782,425
Mine Overheads			1,807,703
Royalties			940,870
Ongoing Capex			2,429,452
Total Cost			44,960,450


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19Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

19.1Key Economic Assumptions and Parameters

The CODM forms, reviews, signs-off and distributes economic assumptions to its various business units. On an annual basis, during the period October to November, long-term commodity prices and exchange rates forecasts’, are received from various financial institutions. In addition, a specialist in Economics from a reputable economics company based in South Africa, provides expert views on the global markets, forward looking commodity prices, exchange rates, consumer price index, production price index, electricity cost and consumable increases. All factors are analysed, cognisance is taken of the requirements of the NYSE and JSE markets, and a proposal is presented to the CODM for recommendation and approval. These assumptions are then applied at Doornkop, along with specific operational considerations.

19.1.1Metallurgical Recoveries

The metallurgical recoveries used in the cashflow are those provided Table 12-1.

19.1.2Gold Price

The proposed gold price (USD1,546/oz) is the price that is used by Harmony for the Doornkop annual planning cycle and forms the basis for the gold price assumptions used in the Doornkop cash flow. The reader is referred to Figure 16-2 for the consensus forecast gold price.

The conversions used in the calculation of the various gold prices is presented in Table 19-1.

Table 19-1: Conversions used in Gold Price Calculations


Economic Factors	Gold Price (USD/oz)	Conversion Factor (oz/kg)	Exchange Rate (ZAR:USD)	Gold Price (ZAR/kg)
2022 Mineral Resource	1,723	32.15	15.35	850,191
2022 Mineral Reserve	1,546	32.15	15.35	763,000
2023 forecasted gold price	1,546	32.15	15.35	763,000
Notes: 1. Forecasted gold price as used in the Doornkop cash flow.

19.1.3Exchange Rate

In addition, the CODM has reviewed the ZAR:USD exchange rate performance over the past three years, for the period July 2019 - June 2022 (Table 19-2). The proposed spot exchange rate of 15.35 ZAR:USD is the exchange rate that is used by Harmony for the Doornkop annual planning cycle and forms the basis for the ZAR:USD exchange rate assumptions used in the Doornkop cash flow.

Table 19-2: ZAR:USD Exchange Rate Performance (July 2019 – June 2022)


Period			Average Exchange Rate (ZAR:USD)
July 2019 to June 2020			15.68
July 2020 to June 2021			15.41
July 2021 to June 2022			14.75
3-Year Ave. (not weighted)			15.28


Effective Date: 30 June 2022 76


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa


Figure 19-1: Graph of Consensus ZAR : USD Exchange Rate Forecast


Effective Date: 30 June 2022 77


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

19.1.4Royalties

Royalty is an expense paid to the government of South Africa and is accounted for in the Doornkop cash flow models. In terms of the mining ring-fencing application, each ring-fenced mine is treated separately, and deductions can normally only be utilised against mining income generated from the relevant ring-fenced mine.

19.1.5Capital Expenditure

The capital cost breakdown for Doornkop is presented in Table 18-1.

19.1.6Operating Expenditure

The operating costs are determined as a function of the cash working costs of the mining and mineral processing plant activities and ongoing capital development for mining). Whereas, total costs are a function of the operating costs, capital costs, and royalties. The operating costs for Doornkop are presented in Table 18-2.

19.1.7Working Capital

Working capital is calculated at a Harmony Group level and not at an operational level.

19.1.8Taxes

19.1.9Closure Cost and Salvage Value

The closure cost estimates are provided in Section 17.5. No account has been taken of any potential salvage values.

19.1.10Summary

The key assumptions that are applied to the economic analysis for the Doornkop cash flow are presented in Table 19-3.

Table 19-3: Summary of Key Assumptions used in the Economic Analysis


Parameter	Unit	Value
Production Rate	tpm	1,100
Gold Recovery	%	96.65
Royalty	% of xx	Formula
Tax Rate	%	Formula
Gold Price	ZAR/kg	763,000
Exchange Rate	USD:ZAR	Variable
Discount Rate	%	9.00

19.2Economic Analysis

The discounted cash flow model is used to calculate the Net Present Value (“NPV”) of the investments. The NPV for this spot metal price, is approximately ZAR2,995bn, at a discount rate of 9%.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Table 19-4: Doornkop Cash Flow


Item	Units	Total LOM	FY2023	FY2024	FY2025	FY2026	FY2027	FY2028	FY2029	FY2030
Mining advance	m2	4,123,241	244,101	254,009	254,015	269,324	269,929	270,803	270,197	270,709
Ongoing Capital Development (OCD)	m		11,855	12,279	10,871	15,444	13,477	10,200	7,925	6,405
Milled tons	t ('000)	17,279,972	1,054,217	1,104,928	1,089,277	1,140,996	1,140,047	1,144,886	1,127,967	1,121,863
Yield	g/t	4.29	3.96	3.87	4.34	4.37	4.35	4.44	4.57	4.40
Gold recovered	kg	74,162	4,176	4,280	4,724	4,989	4,954	5,080	5,150	4,939
Revenue	ZAR'000	56,585,711	3,186,159	3,265,754	3,604,463	3,806,405	3,780,002	3,876,120	3,929,078	3,768,203
Total costs (including OCD)	ZAR'000	47,113,719	3,094,139	3,118,604	3,079,050	3,298,693	3,243,334	3,144,276	3,089,578	3,033,200
Mining Charter Compliance (MCC)	ZAR'000	193,524	13,823	13,823	13,823	13,823	13,823	13,823	13,823	13,823
Capital (excluding OCD)	ZAR'000	654,462,774	272,516,037	302,533,037	15,220,100	16,017,600	16,017,600	16,017,600	16,017,600	17,600
Royalty	ZAR'000	956,801	15,931	16,329	42,868	50,021	58,040	74,134	83,012	73,847
Total costs (including capital and royalty)	ZAR'000	49,549,560	3,439,355	3,475,265	3,336,764	3,469,059	3,348,797	3,265,833	3,220,012	3,154,471
Profit (after OCD and capital)	ZAR'000	7,036,152	-253,196	-209,511	267,699	337,346	431,205	610,286	709,066	613,732
NPV - (low discount rate - 9%) (Rm)	@9%	2,985,108
NPV - (medium discount rate - 12%) (Rm)	@12%	2,303,886
NPV - (high discount rate - 15%) (Rm)	@15%	1,796,607


Item	Units	Total LOM	FY2031	FY2032	FY2033	FY2034	FY2035	FY2036	FY2037	FY2038
Mining advance	m2	4,123,241	268,270	271,574	270,246	270,383	268,754	269,036	221,718	180,174
Ongoing Capital Development (OCD)	m		5,360	4,212	3,419	1,411	56	53	0	0
Milled tons	t ('000)	17,279,972	1,112,710	1,129,889	1,121,990	1,121,140	1,106,859	1,108,019	913,142	742,042
Yield	g/t	4.29	4.46	4.45	4.17	3.96	4.00	4.26	4.65	4.54
Gold recovered	kg	74,162	4,961	5,028	4,677	4,442	4,424	4,719	4,251	3,370
Revenue	ZAR'000	56,585,711	3,785,108	3,836,599	3,568,187	3,389,374	3,375,301	3,600,253	3,243,185	2,571,522
Total costs (including OCD)	ZAR'000	47,113,719	2,969,283	2,952,071	2,936,993	2,897,095	2,798,488	2,761,279	2,463,278	2,234,358
Capital (excluding OCD)	ZAR'000	654,462,774	17,600	17,600	17,600	17,600	17,600	17,600	0	0
Royalty	ZAR'000	956,801	80,398	86,151	64,543	52,535	59,228	81,325	78,608	39,831
Total costs (including capital and royalty)	ZAR'000	49,549,560	3,097,104	3,085,646	3,048,958	2,997,053	2,905,139	2,890,027	2,541,886	2,274,189
Profit (after OCD and capital)	ZAR'000	7,036,152	688,004	750,953	519,229	392,320	470,163	710,225	701,298	297,333
NPV - (low discount rate - 9%) (Rm)	@9%	2,985,108
NPV - (medium discount rate - 12%) (Rm)	@12%	2,303,886
NPV - (high discount rate - 15%) (Rm)	@15%	1,796,607


Effective Date: 30 June 2022 79


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

The NPV is calculated on a cash flow that accounts for factors such as:

•mining and ore processing working costs;

•royalty payments;

•capital costs, including costs allocated to ongoing development;

•any significant project work considered as major projects; and

•costs deemed as AE.

19.3Sensitivity Analysis

The economic assumptions, cash flow breakdown and economic analysis contribute to the basis for the sensitivity analysis. The sensitivities are calculated and analysed, as shown in the accompanying tables (Table 19-5, Table 19-6 and Table 19-7). Harmony has reviewed its exposure in terms of South Africa’s political instability, the COVID-19 pandemic, the currency exchange rate, and the gold price, on its financial assets and financial liabilities, and has determined the sensitivities for a ±10% variance. Management considers this range to be a reasonable change given the volatility in the market.

The sensitivity analysis is completed for variations in commodity price (ZAR/kg), total operating costs, which include capital costs and royalties paid (ZAR); and a combined analysis considering variations in commodity price, total operating costs, and changes in production. Capital investments at Doornkop are relatively low and not expected to have any significant impact on the NPV and therefore not included in a sensitivity analysis. The base case in the analysis below is the economic results emanating from the LOM plan (Table 19-4).

Table 19-5: Gold Price Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR Rm)
10%	81,578	836,000	61,999,547	49,549,560	12,449,988	5,948
5%	77,870	798,000	59,181,386	49,549,560	9,631,826	4,466
LOM plan	74,162	760,000	56,363,225	49,549,560	6,813,665	2,985
-5%	70,454	722,000	53,545,064	49,549,560	3,995,504	1,504
-10%	66,746	684,000	50,726,902	49,549,560	1,177,343	22
Note: 1 Total operating cost, including capital and royalty.

Table 19-6: Total Operating Cost Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR Rm)
10%	74,162	763,000	56,585,711	54,504,516	2,081,196	321
5%	74,162	763,000	56,585,711	52,027,038	4,558,674	1,653
LOM plan	74,162	763,000	56,585,711	49,549,560	7,036,152	2,985
-5%	74,162	763,000	56,585,711	47,072,082	9,513,630	4,317
-10%	74,162	763,000	56,585,711	44,594,604	11,991,108	5,649
Note: 1 Total operating cost, including capital and royalty.

The sensitivity analysis (Table 19-5 and Table 19-6) is based on a change in a single assumption while holding all other assumptions constant. In practice, this is unlikely to occur, as risks and/or opportunities will have an impact on the cash flows, and changes in some of these assumptions may be correlated. The insights that can be provided by this sensitivity analysis is that Doornkop is most sensitive to changes in the gold price (ZAR/kg), closely followed by changes in total operating costs (ZAR).

The impact of one or a combination of risks and opportunities occurring at the same time cannot be specifically quantified so an analysis considering multi-parameters is considered. In this way the general risks, with the aid of the sensitivity table (Table 19-7) are adequately covered. The sensitivity analysis considering the three variations of gold price (ZAR/kg), operating costs (ZAR) and variation in production (kg Au) shows that the lowering of working costs, improvement in productivity and the benefits of a higher gold price can have positive impacts on the Doornkop.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

Table 19-7: Gold price, Operating Costs, and Production Variation Sensitivity Analysis


Sensitivity (%)	Production (kg)	Gold Price (ZAR/kg)	Revenue (ZAR’000)	Operating Cost (ZAR'000)	Profit / Loss (ZAR'000)	NPV (ZAR Rm)
10%	81,578	839,300	68,468,711	54,504,516	13,964,195	6,543
5%	77,870	801,150	62,385,747	52,027,038	10,358,709	4,690
LOM plan	74,162	763,000	56,585,711	49,549,560	7,036,152	2,985
-5%	70,454	724,850	51,068,604	47,072,082	3,996,523	1,429
-10%	66,746	686,700	45,834,426	44,594,604	1,239,822	20
Note: 1 Total operating cost, including capital and royalty.


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

20Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

Doornkop forms part of Harmony’s West Rand operations, which include Mponeng, TauTona, Savuka and Kusasalethu Mine (Figure 3‑1). All mines are 100% owned by Harmony and collectively form the West Wits operation.

Doornkop’s immediately adjacent properties are the Cooke Shafts (owned by SibanyeStillwater) and the Durban Roodepoort Deep mines to the East. Durban Roodepoort Deep has historically mined the South Reef extensively, whilst the Cooke Shafts have not typically mined the South Reef due to it being below infrastructure.

21Other Relevant Data and Information

Section 229.601(b)(96) (21)

Other relevant information includes the public disclosure reports on Doornkop’s operational, financial, and environmental performance are available on the Company’s corporate website. The following reports are relevant to this TRS:

•Integrated Annual Report 2022;

•ESG Report 2022;

•Financial Report 2022;

•Report to shareholders 2022;

•Operational Report 2022;

•TCFD (Task Force on Climate-related financial disclosures) Report


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			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

22Interpretation and Conclusions

Section 229.601(b)(96) (22)

Doornkop is a well-established mine which has been operating since 1983.

Harmony is not aware of any risks to continued mining activities over the permitted mining rights’ areas, incorporated as Doornkop. In addition, no known risks are posed over surface access and activities, regarding mining related activities.

The gold-bearing conglomerates at Doornkop is situated on the northwestern margin of the Witwatersrand Basin of South Africa, one of the most prominent gold provinces in the world. While there are several gold-bearing conglomerate reefs present within the mining right rea, only the Kimberley Reef and South Reef are considered to have prospects for economic extraction at this stage.

The regional geological setting, mineralisation and deposit is well understood. The geology is supported by seismic survey and, surface and underground drilling findings. Geological anomalies associated with the Kimberley and South Reefs are identified, defined, and managed by the Geology Department.

Extensive exploration informs both the South Reef and Kimberley Reef models, and Harmony continues to conduct underground drilling and channel sampling on the South Reef. Sampling of underground drill hole intersections, as well as sampling of established stopes on the reef horizon, inform the updates to the Mineral Resources. Harmony has budgeted ZAR15m for infill exploration drilling in the next 12 months.

The sampling approach and management, density assumptions, laboratory procedures, and assaying and analysis are in keeping with industry standards and practices and is appropriate for the Witwatersrand-type mineralisation. The understanding of the regional geology, lithological and structural controls of the mineralisation is sufficient to support the estimation of Mineral Resources.

The data pertaining to the mineralisation, regional and geological setting, exploration findings, sample collection, preparation, and testing, inclusive of data verification and metallurgical test work gives rise to the Mineral Resource estimate. The combined Measured and Indicated Mineral Resource, exclusive of Mineral Reserves, as at 30 June 2022 is 28.73Mt at 3.33g/t gold, containing 3.078Moz of gold, and the Inferred Mineral Resource contains 13.41Mt at 4.38g/t gold, containing 1.887Moz of gold.

Mineral Reserves are derived from the Mineral Resources, a detailed business plan and operational mine planning processes. Mine planning utilises and takes into consideration actual historical technical parameters. In addition, the conversion of the Mineral Resources to Mineral Reserves considers Modifying Factors, dilution, ore losses, minimum mining widths and the planned mine call factors. The Mineral Reserve is 13.80Mt of ore at 4.36g/t, containing 1.934Moz as at 30 June 2022.

Gold bearing ore mined at Doornkop is processed at the Doornkop processing facility which has been in operation since 1986, and as such the processing method is considered well established for mineralisation at Doornkop. The plant therefore makes use of historical trends and data as a basis for their recoveries.

The mine is currently mining profitably, and the Mineral Reserve estimates show positive cash flows. There are no obvious material risks that could have significant effect on the Mineral Reserves.

The Mineral Reserves are extracted via the SGM method, taking into consideration the mining and rock engineering design guidelines. This mining method increases flexibility and minimises seismicity and is appropriate for the deep-level nature of the operation. The metallurgical process is a well-tested technology, processing ore from the Kimberley and South reefs.


Effective Date: 30 June 2022 83


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

The mine’s regional and local infrastructure is capable of fully supporting the mining and surface related mining activities. Doornkop is accessed via national and provincial road networks, has key power transmission and distribution networks provided by the National electricity regulator, water supply networks and communication infrastructure. Doornkop is well-established with sufficient logistics and infrastructure support for the existing and planned mining operations.

Harmony and Doornkop are exposed to market risks such as exchange rate and gold price fluctuations which are partially offset by the Harmony Group hedging policy. The hedging programme takes into account factors effecting the global gold market and these, along with macro-economic conditions, are used to determine planning and forecasting inputs at group level for all of Harmony’s operating business units. Other non-gold related risks are addressed to some extent by Doornkop entering into vendor agreements for the provisions of supplies and services which are done on a competitive basis with customary price adjustment, renewal and termination clauses.

To successfully operate a mining operation in South Africa the state requires compliance with applicable environmental laws, regulations, permits and standards. Doornkop adheres to said compliance and regulatory standards and have, in addition, implemented an Environmental Management System in line with the ISO 14001.

Doornkop conducts its operations based on policies and systems that are aligned its corporate sustainable development framework. This is guided by the principles of the framework from the International Council on Mining and Metals or the UN Global Compact. Harmony discloses its sustainable development voluntarily in accordance with the guidelines issued by the Global Reporting Initiative (GRI). Further to this, Harmony discloses environmental information on the Carbon Disclosure Project (CDP) for both climate change and water.

The economics of Doornkop’s Mineral Reserve is based on the discounted cash flow model, with a spot price of above ZAR763,000/kg. The NPV for the spot metal price, is ZAR2.985Bn, at a discount rate of 9%. The NPV is calculated on cash flow that takes factors such as: capital and operating costs; and royalties. The capital and operating cost estimates for Doornkop are based on historical data, as well as budget forecasts. This estimation technique allows for the forecast and actual costs to be aligned.

Royalties and taxes are paid to the South African government and accounted for in the Doornkop cash flow and NPV analysis. There are also specific tax relief benefits that apply to gold mining companies, where 5% of total revenue is exempt from taxation, amongst other benefits. In addition, in response to challenges faced by companies during the COVID-19 pandemic, the government have implemented various stimulus packages to provide some tax relief to companies.

The economics are tested for its sensitivity to commodity price (ZAR/kg), operating costs (ZAR) gold production (kg). The insights provided by the sensitivity analysis is that Doornkop is most sensitive to changes in the gold price (ZAR/kg), closely followed by changes in total operating costs (ZAR).

The TRS provides sufficient information as required and there is no other relevant data and information.

The TRS was prepared by a team of experienced professionals. The TRS provides a summary of the material scientific and technical information concerning the mineral exploration, Mineral Resources, Mineral Reserves, and associated production activities of the mineral asset, including references to the valuation for Doornkop. Each QP was responsible for specific sections of this TRS which they have personally supervised and reviewed. This TRS contains the expression of the QP opinions, based on the information available at the time of preparation.


Effective Date: 30 June 2022 84


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

23Recommendations

Section 229.601(b)(96) (23)

23.1LIB drilling

To further de-risk the Mineral Resource and Mineral Reserves ahead of mining, the active LIB drilling campaign should be continued.

23.2South Reef Exploration

Additional exploration should be undertaken to investigate the continuation of high-grade pay shoots within the South Reef, as anticipated through historical literature and mining information.


Effective Date: 30 June 2022 85


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

24References

Section 229.601(b)(96) (24)

Dankert, B.T., and Hein, K.A.A., 2010. Evaluating the structural character and tectonic history of the Witwatersrand Basin. Precambrian Research 177, 1–22.

https://www.gold.org/goldhub/data/gold-prices. Accessed July 2022.

Robb, L.J., and Meyer, F., 1995. The Witwatersrand Basin, South Africa: Geological framework and mineralisation processes. Ore Geology Reviews, 10(2), 67-94.

Robb, L.J., Robb, V.M., 1998. Gold in the Witwatersrand Basin. In: Wilson, M.G.C., Anhaeusser, C.R. (Eds.), The Mineral Resources of South Africa. Handbook. Council for Geoscience, 294–349.

South African Revenue Services. (2021, July 29). South African Revenue Services. Retrieved from Tax Relief Measures: https://www.sars.gov.za/media/tax-relief-measures/

World Gold Council. (2021, July 29). World Gold Council, Gold Hub, Gold mine production: Gold Production by Country | Gold Production | Goldhub


Effective Date: 30 June 2022 86


			Technical Report Summary for Doornkop Mine, Gauteng Province, South Africa

25Reliance on Information Provided by the Registrant

Section 229.601(b)(96) (25)

Table 25-1: Other Specialists


Name	Specialist	Area of Responsibility	Association / Company
C Laas	Senior Mine Planner	Mine design and scheduling	Doornkop
M DeNoon	Mine Planner	Mine design and scheduling	Doornkop
T Thubatsi	Mine Planner	Mine design and scheduling	Doornkop
J Modise	Survey and Planning Manager	Reconciliation and Reporting	Doornkop
N Nxumalo	HOD Geology	Mineral Resources	Doornkop
B McNally	Sectional Geologist	Mineral Resources	Doornkop
D Mhlanga	Rock Engineering Manager	Geotechnical Designs	Doornkop
T Lala	Senior Financial Manager	Cash flow analysis	Doornkop
J Naude	Senior Valuator	Valuation	Doornkop
T Sithole	Environmental Officer	Environmental management	Doornkop
H Mashaba	Environmental Officer	Mine Closure and Rehabilitation	Harmony Central
J Roos	Plant Manager	Recovery and process costs	Doornkop
L Boshielo	Senior Engineer	Technical Studies	Doornkop
J Jackson	Tax Head of Department	Tax	Harmony Central
J Powell	Geostatician HOD	Mineral Resources	Harmony Central
E Malaola	Manager ORM Audit and Survey	Mineral Resources & Reserves Audit	Harmony Central
T v Dyk	Senior Ore Reserve Manager	Mineral Resources & Reserves Audit	Harmony Central
J Boshoff	Executive: Ore Reserves	Mineral Resources & Reserves Audit	Harmony Central


Effective Date: 30 June 2022 87

HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Hidden Valley Mine

Morobe Province, Papua New Guinea

Effective Date: 30 June 2022

Final Report Date: 12 July 2022


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.


Effective Date: 30 June 2022 i


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Signature Page

/s/ Ronald Reid

___________________________________

Mr Ronald Reid

BSc. (Hons). Grad.Dip(GIS)

FAIG. MAusIMM

Group Resource Geologist

Harmony Gold (PNG Services) Limited

/s/ Daniel Ross

____________________________________

Mr Daniel Ross

BEng. (Mining)

MAusIMM

Group Mining Planning Engineer

Harmony Gold (PNG Services) Limited

/s/ Sarah Watson

____________________________________

Ms Sarah Watson

MSc, BSc(Hons)

MAusIMM

Group Environment, Social and Governance Manager

Harmony Gold (PNG Services) Pty Limited

/s/ David Hall

____________________________________

Mr David Hall

BComm

MAHRI, MAICD

General Manager – HR & Community Affairs

Effective Date: 30 June 2022

Final Report Date: 12 July 2022

/s/ Greg Job

____________________________________

Mr Greg Job

BSc. MSc. (Mineral Economics)

FAusIMM

Executive General Manager - Growth & Resource Development

Harmony Gold (PNG Services) Limited

/s/ Morne Swart

____________________________________

Mr Morne Swart

BE (Met Eng), MBA

FAusIMM (CP)

RPEQ, MIEPNG

General Manager – Projects and Processing

Harmony Gold (PNG Services) Pty Limited

/s/ Matthew Koehler

____________________________________

Mr Matthew Koehler

BBus Acc, Grad Dip (CA)

CAANZ

Manager – Commercial South East Asia

Harmony Gold (PNG Services) Pty Limited


Effective Date: 30 June 2022 ii


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

List of Contents


1	Executive Summary			1
2	Introduction			6
3	Property Description and Location			7
	3.1	Mineral Tenure		7
	3.2	Property Permitting Requirements		7
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			9
	4.1	Accessibility		9
	4.2	Physiology and Climate		9
	4.3	Local Resources and Infrastructure		9
5	History			10
	5.1	Historical Ownership and Development		10
	5.2	Historical Exploration		10
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		11
	5.4	Past Production		12
6	Geological Setting, Mineralisation and Deposit			14
	6.1	Regional Geology		14
	6.2	Local Geology		16
	6.3	Property Geology		16
		6.3.1	Alteration and Veining	17
		6.3.2	Structure	19
	6.4	Mineralisation		19
	6.5	Deposit Type		20
	6.6	Commentary on Geological Setting, Mineralisation and Deposit		20
7	Exploration			21
	7.1	Mapping Surveys		21
		7.1.1	Topographic Survey	21
		7.1.2	Light Detection and Ranging (“LiDAR”) Survey	21
		7.1.3	Geological Mapping	21
	7.2	Geophysical Surveys		21
	7.3	Petrology, Mineralogy and Research Studies		21
	7.4	Geochemical Sampling		22
	7.5	Stream Sediment Sampling		22
	7.6	Surface Drilling Campaigns		22
	7.7	Diamond Drilling Campaigns, Procedures, Sampling, Recoveries and Results		24
		7.7.1	Drilling Methods	24
		7.7.2	Collar Surveys	25
		7.7.3	Downhole Surveys	25
		7.7.4	Logging Procedures	25
		7.7.5	Results	25
		7.7.6	Core Recovery	26
		7.7.7	Sample Length and True Thickness	26
	7.8	RC Drilling Campaigns, Procedures, Sampling, Recoveries and Results		26
		7.8.1	Drilling Methods	26
		7.8.2	Collar Surveys	26
		7.8.3	Downhole Surveys	26
		7.8.4	Logging	27
		7.8.5	Results	27
		7.8.6	Chip Recovery	27
		7.8.7	Sample Length and True Thickness	27
	7.9	Operational Grade Control Drilling Campaigns, Procedures, Sampling, Recoveries and Results		27


Effective Date: 30 June 2022 iii


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


		7.9.1	Drilling Methods	27
		7.9.2	Collar Surveys	28
		7.9.3	Downhole Surveys	28
		7.9.4	Logging	28
		7.9.5	Results	28
		7.9.6	Chip Recovery	28
		7.9.7	Sample Length and True Thickness	28
	7.10	Hydrogeology		28
	7.11	Geotechnical Data		28
		7.11.1	Drilling Methods	29
		7.11.2	Collar Surveys	29
		7.11.3	Downhole Surveys	29
		7.11.4	Logging Procedures	29
		7.11.5	Drilling Results	30
	7.12	Commentary on Exploration		30
8	Sample Preparation, Analyses and Security			32
	8.1	Sampling Method and Approach		32
		8.1.1	Core samples	32
		8.1.2	RC Samples	32
		8.1.3	Grade Control Samples	34
	8.2	Density Determination		34
	8.3	Sample Security		34
	8.4	Sample Storage		35
	8.5	Laboratories Used		35
	8.6	Laboratory Sample Preparation		35
	8.7	Assaying Methods and Analytical Procedures		36
	8.8	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)		36
		8.8.1	Core samples	37
		8.8.2	RC Samples	37
		8.8.3	Laboratory Internal QAQC	37
		8.8.4	Results	37
	8.9	Comment on Sample Preparation, Analyses and Security		38
9	Data verification			39
	9.1	Databases		39
	9.2	Data Verification Procedures		39
	9.3	Limitations to the Data Verification		40
	9.4	Comment on Data Verification		40
10	Mineral Processing and Metallurgical Testing			41
	10.1	Extent of Processing, Testing, and Analytical Procedures		41
	10.2	Degree of Representation of the Mineral Deposit		41
		10.2.1	Hamata	41
		10.2.2	Hidden Valley Kaveroi	41
	10.3	Analytical Laboratory Details		42
	10.4	Hidden Valley Test Results and Recovery Estimates		42
		10.4.1	Multivariable Recovery Model	42
	10.5	Commentary on Mineral Processing and Metallurgical Testing		43
11	Mineral Resource Estimate			44
	11.1	Geological Database		44
	11.2	Global Statistics		44
	11.3	Geological Interpretation and Modelling Approach		44
		11.3.1	Lithological Domains	44


Effective Date: 30 June 2022 iv


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


		11.3.2	Oxidation Domains	49
		11.3.3	Lode Domains	49
		11.3.4	Acid Rock Drainage (“ARD”) Domains	49
	11.4	Exploratory Data Analysis		50
	11.5	Composites		50
	11.6	Decluster Analysis		50
	11.7	Diffusivity and Proportional Effect		51
	11.8	Contact Analysis		51
	11.9	Grade Capping / Upper Cut Determination		51
	11.10	Estimation / Interpolation Methods		52
	11.11	Stationarity		52
	11.12	Variography		53
	11.13	Block Model and Estimate Parameters		53
		11.13.1	Estimation Techniques	53
		11.13.2	Block Model	54
		11.13.3	Interpolation Parameters	54
		11.13.4	Change of Support	54
		11.13.5	Result	55
	11.14	Model Validation		55
	11.15	Density (Specific Gravity) Assignment		56
	11.16	Mineral Resource Evaluation		56
	11.17	Mineral Resource Classification and Uncertainties		58
	11.18	Mineral Resource Estimate		59
	11.19	Mineral Resource Reconciliation		62
	11.20	External Audits and Reviews		62
	11.21	Comment on Mineral Resource Estimates		62
12	Mineral Reserve Estimate			63
	12.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve		63
		12.1.1	Proposed Mining Case	63
		12.1.2	Mining Costs	64
		12.1.3	Profit Algorithm	64
		12.1.4	Metallurgical Recovery	65
	12.2	Modifying Factors		65
	12.3	Mineral Reserve Estimate		65
	12.4	Mineral Reserve Reconciliation		69
	12.5	Commentary on Mineral Reserve Estimate		69
13	Mining Method			70
	13.1	Mine design		70
	13.2	Mining Costs		73
	13.3	Mine Plan Development and Life of Mine Schedule		73
	13.4	Geotechnical and Geohydrological Considerations		73
		13.4.1	Geotechnical	73
		13.4.2	Geohydrological	75
	13.5	Mining Operations		79
	13.6	Mining Rates		79
	13.7	Mining Equipment and Machinery		79
	13.8	Grade and Dilution Control		79
	13.9	Ore transport		79
	13.10	Mining Personnel		79
	13.11	Commentary on Mining Method		81
14	Processing and Recovery Methods			82


Effective Date: 30 June 2022 v


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


	14.1	Mineral Processing Description		82
	14.2	Plant Throughput, Design, Equipment Characteristics and Specifications		85
	14.3	Energy, Water, Process Material and Personnel Requirements		85
		14.3.1	Energy	85
		14.3.2	Water	85
		14.3.3	Process Materials	85
		14.3.4	Personnel Requirements	86
	14.4	Commentary on the Processing and Recovery Methods		87
15	Infrastructure			88
	15.1	Surface Infrastructure		88
		15.1.1	Ore and Waste Rock Storage Facilities	88
		15.1.2	Tailings Storage Facilities	88
		15.1.3	Power and Electrical	90
		15.1.4	Water Usage	90
		15.1.5	Pipelines	90
		15.1.6	Logistics and Supplies	90
	15.2	Commentary on Infrastructure		90
16	Market Studies			91
	16.1	Gold		91
		16.1.1	Market Overview	91
		16.1.2	Global Production and Supply	91
		16.1.3	Global Consumption and Demand	91
		16.1.4	Gold Price	92
	16.2	Silver		94
		16.2.1	Market Overview	94
		16.2.2	Global Production and Supply	94
		16.2.3	Global Consumption and Demand	94
		16.2.4	Silver Price	96
	16.3	Commentary on Market Studies		96
	16.4	Material Contracts		97
17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			98
	17.1	Results of Environmental Studies		98
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		98
	17.3	Permitting and Licences		99
		17.3.1	Memorandum of Agreement with Government of PNG	99
	17.4	Local Stakeholder Plans and Agreements		100
	17.5	Mine Closure Plans		100
	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals or Groups		100
	17.7	Local Procurement and Hiring		101
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		101
18	Capital and Operating Costs			102
	18.1	Capital Costs		102
	18.2	Operating Costs		102
	18.3	Comment on Capital and Operating Costs		103
19	Economic Analysis			104
	19.1	Key Economic Assumptions and Parameters		104
		19.1.1	Metallurgical Recoveries	104
		19.1.2	Metal Prices	104


Effective Date: 30 June 2022 vi


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


		19.1.3	Exchange Rate	104
		19.1.4	Royalties	104
		19.1.5	Working Capital	104
		19.1.6	Taxes	105
		19.1.7	Closure Costs and Salvage Value	105
		19.1.8	Inflation	105
		19.1.9	Summary	105
	19.2	Economic Analysis		105
	19.3	Sensitivity Analysis		107
	19.4	QP Comments		107
20	Adjacent properties			108
21	Other Relevant Data and Information			109
22	Interpretation and Conclusions			110
	22.1	Mineral Tenure		110
	22.2	Geology and Mineralisation		110
	22.3	Exploration, Drilling and Analytical Data Collection in Support of Mineral Resource Estimation		110
	22.4	Mineral Processing and Metallurgical Testing		111
	22.5	Mineral Resource Estimates		111
	22.6	Mineral Reserve Estimates		111
	22.7	Mine Plan		112
	22.8	Processing		112
	22.9	Infrastructure		112
	22.10	Environmental, Permitting and Social Considerations		112
	22.11	Markets		112
	22.12	Capital and Operating Cost Estimates		112
	22.13	Economic Analysis		112
23	Recommendations			114
24	References			115
25	Reliance on Information Provided by the Registrant			117


Effective Date: 30 June 2022 vii


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

List of Figures


Figure 3-1: Location of Hidden Valley			8
Figure 3-2: Mineral Tenure of Hidden Valley			8
Figure 5-1: Graph of Hidden Valley Production History – Tonnes and Grade			13
Figure 5-2: Graph of Hidden Valley Production History – Metal Produced			13
Figure 6-1: Regional Geology			15
Figure 6-2: Local Geology and Structural Plan			15
Figure 6-3: Cross Section of HVK			18
Figure 6-4: Stratigraphic Column			18
Figure 7-1: Location of Drilling Used in Mineral Resource Estimate			23
Figure 7-2: Location of Operational Grade Control Drilling			23
Figure 7-3: Location of Geotechnical Drill Holes (2019)			31
Figure 11-1: Lithological Domains in the Hidden Valley Geological Model			47
Figure 11-2: Oxidation Domains in the Hidden Valley Geological Model			47
Figure 11-3: Grade or Lode Domains in the Hidden Valley Geological Model			48
Figure 11-4: ARD Domains in the Hidden Valley Geological Model			48
Figure 11-5: Graph of Grade Tonnage Curve for Gold			57
Figure 11-6: Graph of Grade Tonnage Curve for Silver			57
Figure 11-7: Location and Classification of Mineral Resources			60
Figure 12-1: Graph of Gold Recovery versus Head Grade			66
Figure 12-2: Graph of Silver Recovery versus Head Grade			66
Figure 12-3: Approximate Location and Classification of Hidden Valley Mineral Reserves			67
Figure 13-1: HVK Ultimate Pit (HVK7)			71
Figure 13-2: Hamata Ultimate Pit (HAM)			71
Figure 13-3: Cross Section through HVK Open Pit Indicating Stage 8 Cutback Configuration			72
Figure 13-4: Graph of Hidden Valley LOM Plan – Tonnes Milled			74
Figure 13-5: Graph of Hidden Valley LOM Plan – Metal Produced (oz)			74
Figure 13-6: Vibrating Wire Piezometer Locations in HVK (KCB 2020)			76
Figure 13-7: Cross Section of Hidden Valley Pit With Phreatic Surfaces			78
Figure 14-1: Hidden Valley Flowsheet			84
Figure 15-1: Plan of Site Surface Infrastructure			89
Figure 15-2: Photograph of HVK Open Pit			89
Figure 16-1: Graph of Annual Gold Price History – USD/oz			93
Figure 16-2: Graph of Consensus View of Forecast Gold Price			93
Figure 16-3: Graph of Annual Silver Price History – USD/oz			95
Figure 16-4: Graph of Consensus View of Forecast Silver Price			95


Effective Date: 30 June 2022 viii


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

List of Tables


Table 1-1: Summary of the Hidden Valley Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8			3
Table 1-2: Summary of the Hidden Valley Mineral Reserves as at 30 June 2022 1-6			4
Table 1-3: Summary Capital Cost Estimate for Hidden Valley			4
Table 1-4: Summary Operating Cost Estimate for Hidden Valley			5
Table 1-5: Environmental Approvals Register			5
Table 2-1: QP Qualifications, Section Responsibilities and Personal Inspections			6
Table 3-1: Summary of Mineral Tenure for Hidden Valley			7
Table 5-1: Summary of Historical Ownership Changes and Activities at Hidden Valley			10
Table 5-2: Summary of Previous Hidden Valley Mineral Resources as at 30 June 2021 (Exclusive of Mineral Reserves)			11
Table 5-3: Summary of the Previous Hidden Valley Mineral Reserves as at 30 June 2021			12
Table 7-1: Summary of Drill Holes Used by Company			22
Table 7-2: Summary of Drill Holes Used by Type			24
Table 7-3: Geotechnical Drill Holes (2019)			30
Table 8-1: Summary of Laboratories and Sample Preparation by Exploration Programme			33
Table 8-2: Density Results			34
Table 8-3: Number of QAQC Samples (2021/2022 Sampling)			36
Table 11-1: Summary of Gold Statistics By Domain			45
Table 11-2: Multi-Element Statistics for the Geological Model			46
Table 11-3: ARD Type			50
Table 11-4: Top-cuts Applied by Domain			52
Table 11-5: Block Model Extents			54
Table 11-6: Summary of the Hidden Valley Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8			61
Table 12-1: Profit Algorithm Parameters			64
Table 12-2: Modifying Factors			65
Table 12-3: Summary of the Hidden Valley Mineral Reserves as at 30 June 2022 1-5			68
Table 13-1: Mining Costs			73
Table 13-2: Geotechnical Domains and Associated Parameters			75
Table 13-3: Hydraulic Test Data			77
Table 13-4: List of Mining Equipment			80
Table 13-5: Mining Personnel			81
Table 14-1: Major equipment			85
Table 14-2: Process Materials			86
Table 14-3: Processing Personnel			86
Table 16-1: Previous Average Metal Prices			92
Table 16-2: Silver Price Consensus Forecast			96
Table 16-3: Hidden Valley Material Contracts			97
Table 17-1: Approvals Register			99
Table 18-1: Summary of LOM Capital Cost Estimate for Hidden Valley			102
Table 18-2: Summary of Operating Cost Estimates for Hidden Valley			103
Table 19-1: Key Financial Metrics			105
Table 19-2: Cash Flow for Hidden Valley			106
Table 19-3: Gold Price Sensitivity Analysis			107
Table 19-4: Production Sensitivity Analysis			107
Table 19-5: Total Operating Cost Sensitivity Analysis			107
Table 25-1: Other Specialists			117


Effective Date: 30 June 2022 ix


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
202202			February 2022 geological model
°C			degrees Celsius
µm			Micrometres, micron
2D			Two-dimensional
3D			Three-dimensional
AA DL			Atomic absorption spectroscopy to detection limit
AAS			Atomic absorption spectroscopy
Abelle			Abelle Limited
ACE			Allowable capital expenditure
AE			Abnormal expenditure
Ag			Silver
AGF			Australian Goldfields Limited
AISC			All in sustaining costs
Al			Aluminium
AMC			AMC Consultants Pty Limited
AMD			Acid and metaliferous drainage
AMG			Australian Map Grid
amsl			Above mean sea level
ANC			Acid neutralising capacity
ANCOLD			Australian National Committee on Large Dams
AngloGold Ashanti			AngloGold Ashanti Limited
APT			Additional profit tax
Ar			Argon
ARD			Acid rock drainage
As			Arsenic
asl			Above sea level
ATV			Acoustic televiewer
Au			Gold
Aurora			Aurora Gold Limited
AusD			Australian Dollar
Ave.			Average
Axb			Ore hardness value
BBWi			Bond Ball Mill Work index
bcm			Bank cubic metres
Bi			Bismuth
Bn			Billion
BOCO			Base of complete oxidation
BQ			Core size diameter of 36.5mm
C&I			Control and instrumentation
c.			Approximately
Capex			Capital expenditure
CCD			Counter current decantation
CEPA			Conservation and Environment Protection Authority PNG (previously Department of Environment and Conservation)
CIF			Cost Insurance and Freight
CIL			Carbon-In-Leach
CIP			Carbon-In-Pulp
Cl			Chlorine
CLR			Carbon Leader Reef


Effective Date: 30 June 2022 x


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


cm			Centimetre
cmg/t			Centimetre-grams per tonne
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COV			Coefficient of Variation
CPS			Controlled potential sulphidisation
CPS			CPS Palanga Surveys
CRAE			CRA Exploration (Pty) Limited
CRM			Certified Reference Material
Cu			Copper
DBSim			Direct block simulation
DD			Diamond drilling
DGPS			Digital GPS
dmt			Dry metric tonne
doré			Multi metal bar delivered to a refinery for refining
Dwi			Drop weight index
EA			Environmental Authorisation
EIA			Environmental Impact Assessment
EIR			Environmental inception report
EL			Exploration Licence
Elders			Elders Resources Limited
EMP			Environmental Management Plan
EMPR			Environmental Management Programme
EMS			Environmental Management System
EP			Environmental Permit
ESG			Environmental Social and Governance
EUS			Environmental Impact Statement
FAusIMM			Fellow of the Australasian Institute of Mining and Metallurgy
Fe			Iron
FOB			Free on board
FS			Feasibility Study
FY			Financial year
g			Gram
g/t			Grams per metric tonne
GC			Grade control drilling
Geostats			Geostats Pty Limited
GHG			Greenhouse gas
GIS			Geographic information system
GPS			Global Positioning System
HAM			Hamata
Harmony			Harmony Gold Mining Company Limited
Harmony PNG			Harmony Gold (PNG Services) Limited
HSEAsia			Harmony South East Asia
HFO			Heavy fuel oil
Hg			Mercury
HPE			Hydro-powered
HQ			Core size diameter of 63.5mm
HR			Human resources
HV			High voltage (>1,000V)
HV			Hidden Valley
HVK			Hidden Valley Kaveroi


Effective Date: 30 June 2022 xi


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


HVJV			Hidden Valley Joint Venture
HVZ			Hidden Valley Zone
ICP			Inductively-coupled plasma
ID2			Inverse distance squared
IFC			International Finance Corporation
in			Inch
IP			Inter polar
IPP			Independent power producers
IRL			Intensive leach reactor
IRR			Internal rate of return
IRS			Internal rock strength
ISO			International Standards Organisation
IT			Information technology
ITS			ITS Laboratories Limited
J			Joule
JK Indicies			JK Drop Weight test indices for Ore characterisation
JORC Code			Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve Joint Ore
JV			Joint venture
K			Potassium
KCB			Klohn Crippen Berger
KCZ			Kaveroi Creek Zone
kg			Kilogram
km			Kilometre
km2			Square kilometre
KV			Kaveroi
kWh			Kilowatt-hour
L			Litre
L/s			Litres per second
lb			Pound
LDL			Lower detection limit
LHD			Load haul dump vehicle
LiDAR			Light imaging detection and ranging
LMIK			Localised Multiple Indicator Kriging
LOM			Life of Mine
LUC			Localised uniform conditioned
m			Metre
M or m			Million
m3/hr			Cubic metres per hour
masl			Metres above sea level
Mg			Manganese
MIK			Multiple Indicator Kriging
ML			Mining Lease
Mo			Molybdenum
MOA			Memorandum of Agreement
Morobe Consolidated			Morobe Consolidated Goldfield Limited PNG
MOU			Memorandum of understanding
Moz			Million troy ounces
MPA			Maximum potential acidity
MRA			PNG Mineral Resource Authority
MS			Multi-spectral
Mt			Million tonnes


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
NAF			Non acid forming
NAPP			Net acid producing potential
Newcrest			Newcrest Mining Limited
Ni			Nickel
NN			Nearest neighbour
No.			Number
NPV			Net present value
NQ			Core size diameter of 47.6mm
NRG			Non-refractory gold mineralisation
NSR			Nett smelter return
OES			Optical emission spectroscopy
OH&S			Occupational health and safety
OK			Ordinary kriging
Opex			Operating expenditure
oz			Troy ounce
PAF			Potentially acid forming
Pb			Lead
PFD			Process flow diagram
PFS			Pre Feasibility Study
PGK			PNG Kina
pH			Power of hydrogen (acidity or alkalinity of a solution)
Pilbara Lae			Pilbara Laboratories in Lae
Placer			Placer Pacific Limited
PNG			Independent State of Papua New Guinea
POX			Pressure oxidation
ppm			Parts per million
PQ			Core size diameter of 85.0mm
PSD			Particle Size Distribution
Pty			Proprietary
PVC			Polyvinyl chloride
Q			Quarter
QAQC			Quality Assurance/Quality Control
QKNA			Quantitative kriging neighbourhood analysis
QP			Qualified Person
Rb			Rhobidium
RC			Reverse circulation drilling
RG			Refractory gold
Rio Tinto			Rio Tinto Limited
RL			Relative level
RMR			Rock Mass Rating
RMCP			Rehabilitation and Mine Closure Plan
ROM			Run-of-Mine
RQD			Rock quality designation
S			Sulphur
SAG			Semi-autogenous grinding
SAMREC Code, 2016			The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 Edition
Sb			Antimony
SEC			Securities and Exchange Commission


Effective Date: 30 June 2022 xiii


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


SER			Sub-hypersynchronous slip energy recovery
SGCS			Sequential Gaussian conditional simulation
SMBS			Sodium meta-bisulphite
SMU			Selective mining unit
SP			Self potential
Sr			Strontium
SRK			SRK Consulting
SRM			Standard reference material
STD			Standard Deviation
t			Metric tonne
t/m3			Tonne per cubic metre
TOFR			Top of fresh
TRS			Technical Report Summary
TSF			Tailings storage facility
UC			Uniform conditioned
USc			United States cents
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
USD/t			United States Dollar per tonnes
W			Watt
WAD			Weak acid dissociable
WQC			Water quality criteria
XRD			X-ray diffraction
ZAR			South African Rand
ZAR/kg			South African Rand per kilogram
Zn			Zinc


Effective Date: 30 June 2022 xiv


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Glossary of Terms


Term			Definition
Co-kriging			A method that is used to predict the value of the point at unobserved locations by sample points that are known to be spatially interconnected by adding other variables that have a correlation with the main variable or can also be used to predict 2 or more variables simultaneously.
Cut-off grade			Cut-off grade is the grade (i.e. the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Dilution			Unmineralized rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Domain (modelling)			The area extent of a model.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Environmental Impact Statement			A document that provides a comprehensive assessment of potential environmental and social impacts (or benefits) associated with a project, in accordance with Section 53 of the PNG Environment Act 2000.
Fault			A planar fracture or discontinuity in a volume of rock, across which there has been significant displacement as a result of rock mass movement.
Head grade			The average grade of ore fed into the mill.
Hydrogeology			Area of study concerning the distribution and movement of groundwater in the soil and rocks of the Earth's crust (commonly in aquifers).
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a Mineral Reserve.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field
Level 3 Environmental Permit			Authority under the PNG Environment Act 2000 to carry out Level 3 activities.
Life of the Mine			The time in which, through the employment of the available capital, the ore reserves, or such reasonable extension of the ore reserves as conservative geological analysis may justify, will be extracted.
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


Mine Area			The area encompassing the mine and nearby infrastructure, waste rock dump, Process Plant, power generation facilities, laydown areas, water treatment facilities, any quarry or borrow pit, wastewater discharge and raw water make-up pipelines from the Watut River, raw water dam, sediment control structures, roads and accommodation facilities for the construction and operations workforces.
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.
Modifying Factors			Modifying factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include, but are not restricted to: mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Non-Acid Forming			Chemically-stable materials that will not generate any by-products which could affect the environment.
Potential Acid Forming			Material that contains sulphidic compounds with the potential to generate sulphuric acid under oxidising conditions.
Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product. (1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable. (2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is: (1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and (2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must: (i) Be either: (A) An organization recognized within the mining industry as a reputable professional association; or (B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field; (ii) Admit eligible members primarily on the basis of their academic qualifications and experience; (iii) Establish and require compliance with professional standards of competence and ethics; (iv) Require or encourage continuing professional development; (v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and (vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.
Waste Rock Dump			Refers to the waste rock dumps established to manage mine waste.


Effective Date: 30 June 2022 xvi


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Persons (“QP”) of Harmony Gold (PNG Services) Limited (“Harmony PNG”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Hidden Valley Mine (“Hidden Valley or the mine”), an open pit mining operation owned by Harmony Gold Mining Company Limited (“Harmony”). This TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, effective 30 June 2022. No material changes have occurred between the effective date and this TRS's signature date.

Property Description

The Hidden Valley Mine is situated within the Morobe Province of Papua New Guinea (“PNG”), approximately 90km south-southwest of Lae, the nearest commercial centre and capital of the Morobe Province. The mine comprises the Hidden Valley Kaveroi (“HVK”) and Hamata open pits located approximately 6km apart, where Mineral Resources and Mineral Reserves have been declared. The mine has been in production since May 2009 and produced 139,712 ounces (“oz”) of gold and 2,750,840 oz of silver in the financial year (“FY”) 2022.

Hidden Valley operates within Mining Lease (“ML”), ML151, registered in the name of Morobe Consolidated Goldfield Limited PNG (“Morobe Consolidated”).

Ownership

Hidden Valley is owned and operated by Morobe Consolidated, a 100% owned subsidiary of Harmony.

Geology and Mineralisation

Hidden Valley Mine is made up of the following deposits:

•the vein-stockwork gold-silver HVK deposit, which in turn comprises:

•the high gold – moderate silver Hidden Valley deposit (830m x 500m x 200m);

•the moderate gold – high silver Kaveroi deposit (1,000m x 400m x 280m); and

•the vein-stockwork gold-silver Hamata deposit (800m x 300m x 100m).

The Hidden Valley Operation comprises three separate deposits, Hidden Valley, Kaveroi and Hamata. Whilst Hidden Valley and Kaveroi are situated side by side and effectively mined as a single pit, Hamata is a distinct deposit, mined via a separate pit. Ore mining at Hamata has been completed, and Hamata does not form a material part of the operation, nor the Mineral Resources or Mineral Reserves.

The HVK and Hamata deposits are hosted within the Morobe Granodiorite. The granodiorite comprises two parts; an upper homogenous granodiorite of uniform texture and below the Hidden Valley (“HV”) fault, a more heterogeneous lower unit comprising granodiorite, diorite, adamellite, tonalite and feldspar porphyry. The overlying country rocks comprise grey-black and green-brown, variably carbonaceous, schistose, quartz-rich psammites and pelites that have undergone regional greenschist metamorphism and localised, higher grade contact metamorphism on intrusive contacts with Morobe Granodiorite.

The HVK deposit is classified as a low-sulphidation or adularia-sericite-type epithermal gold-silver system. The deposit may be further classified into a sub-group simply referred to as carbonate - base metal - gold, due to the presence of carbonates as vein-gangue. The gold-silver mineralisation at the HVK deposit is contained within the Morobe Granodiorite, the primary host to the deposit.

The Hamata deposit is classified as a quartz-pyrite-sericite epithermal gold system. It comprises several shallow south-east dipping reefs defining narrow NE-SE dipping sub-parallel vein sets with individual strike lengths of approximately 100m. The understanding of the HVK deposit settings, lithologies, mineralisation, and geological, structural, and alteration controls on mineralisation is sufficient to support the estimation of Mineral Resources and Mineral Reserves.


Effective Date: 30 June 2022 1


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Status of Exploration, Development and Operation

Mining commenced at Hidden Valley in 2008, with the first gold poured in May 2009. The mine was officially opened in September 2010. The operation comprises two open pits and an ore processing facility.

Exploration drilling commenced in 1985 and has included diamond core and reverse circulation (“RC”) drilling. The mine also carries out blast hole and operational in-pit grade control RC drilling.

Drilling was undertaken continuously between 2009-2012, with some minor additional drilling done since. Some targeted deeper RC holes and diamond holes have been drilled into the deposit during 2014-2022 to close up the drill spacing.

A total of 34,086 holes measuring 1,099,053m of drilling were used in the generation of the 2022 geology and domain models. This included both blast and RC operational grade control drilling. A total of 1,586 drill holes, comprising 275,491m of drilling was used in the Mineral Resource estimate.

The existing infrastructure located at the mine is sufficient to support the mining operation.

Mineral Resource Estimate

The Mineral Resource was modelled using a Localised Multiple Indicator Kriging (“LMIK”) grade estimation method based on 16 bins into 48m x 48m x 3m panels, with a change of support into a selective mining unit (“SMU”) size of 12m north x 12m east x 3m relative level (“RL”). The drill hole sample composite size used was 4m lengths within mineralised domains generated using Leapfrog Geo 6.0 based on indicators of 0.2 and 0.4 g/t Au.

All Mineral Resources are reported according to the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 Edition (“SAMREC Code, 2016”). For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

Mineral Resource estimates are provided in Table 1-1. The Mineral Resource includes broken ore stockpiles after mining depletion which are classified as Measured Resources. No other material is classified as Measured.

The QP compiling the Mineral Resource estimates is Mr. Ronald Reid, Group Resource Geologist with Harmony PNG.

All Mineral Resources are reported on a 100% basis with an effective date of 30 June 2022. Harmony has a 100% interest in the mine. Mineral Resources are reported exclusive of those Mineral Resources converted to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Mineral Reserve Estimate

The Mineral Reserves are reported according to the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

Mineral Reserves are reported for HVK and Hamata. Measured and Indicated Mineral Resources were converted to Proven and Probable Mineral Reserves.

All Mineral Reserves are reported on a 100% basis with an effective date of 30 June 2022. Harmony has a 100% interest in the mine.

The QP who compiled the Mineral Reserve estimate is Mr Daniel Ross, Group Mining Engineer with Harmony PNG. The summary of the Mineral Reserve estimate for HVK and Hamata is tabulated in Table 1-2.


Effective Date: 30 June 2022 2


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Table 1-1: Summary of the Hidden Valley Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC			Grade		Metal Content
Mineral Resource Category	Open Pit	Tonnes (Mt)	Gold (g/t)	Silver (g/t)	Gold (kg)	Silver (kg)
Measured	HVK	-	-	-	-	-
	Hamata	-	-	-	-	-
Total / Ave. Measured		0.000	0.00	0.00	0	0
Indicated	HVK	32.986	1.34	21.97	44,064	724,693
	Hamata	1.607	1.97	-	3,163	-
Total / Ave. Indicated		34.592	1.37	21.97	47,228	724,693
Total / Ave. Measured + Indicated		34.592	1.37	21.97	47,228	724,693
Inferred	HVK	1.234	1.21	23.12	1,489	28,521
	Hamata	0.190	1.50	-	284	-
Total / Ave. Inferred		1.423	1.25	23.12	1,773	28,521

IMPERIAL			Grade		Metal Content
Mineral Resource Category	Open Pit	Tonnes (Mt)	Gold (oz/t)	Silver (oz/t)	Gold (Moz)	Silver (Moz)
Measured	HVK	-	-	-	-	-
	Hamata	-	-	-	-	-
Total / Ave. Measured		0.000	0.000	0.000	0.000	0.000
Indicated	HVK	36.360	0.039	0.641	1.417	23.299
	Hamata	1.771	0.057	-	0.102	-
Total / Ave. Indicated		38.132	0.040	0.641	1.518	23.299
Total / Ave. Measured + Indicated		38.132	0.040	0.641	1.518	23.299
Inferred	HVK	1.360	0.035	0.674	0.048	0.917
	Hamata	0.209	0.044	-	0.009	-
Total / Ave. Inferred		1.569	0.036	0.674	0.057	0.917
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 using the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr R Reid, Group Resource Geologist, and employee of Harmony PNG.
2. Mineral Resources are adjusted for mining depletion to end April 2022, with assumed production for May and June, 2022.
3. Measured Resources include surface stockpiles only.
4. Mineral Resources are reported on a 100% basis. Harmony holds a 100% interest.
5. Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
6. Mineral Resources at HVK are reported assuming a bulk open pit mining metallurgical recovery for silver and gold by sulphide flotation. Mineral Resources are reported above a gold grade cut-off of 0.65g/t on the results of a profit algorithm; this equates to a marginal ore cut-off grade. The profit algorithm takes account of metal price, grade, ore processing route, recoveries and costs. Metal price assumptions are USD1,546/oz gold, USD22.35/oz silver and a 0.73 USD/AusD exchange rate. Adjustments to these figures will potentially impact upon the economic cut-off grade.
7. Tonnages are metric tonnes. Gold and silver ounces are estimates of metal contained in tonnages and do not include allowances for processing losses.
8. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.


Effective Date: 30 June 2022 3


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Table 1-2: Summary of the Hidden Valley Mineral Reserves as at 30 June 2022 1-6


METRIC			Grade		Metal Content
Mineral Reserve Category	Open Pit	Tonnes (Mt)	Gold (g/t)	Silver (g/t)	Gold (kg)	Silver (kg)
Proven	HVK	2.547	0.86	18.32	2,191	46,672
	Hamata	-	-	-	-	-
Total / Ave. Proven		2.547	0.86	18.32	2,191	46,672
Probable	HVK	16.289	1.78	22.45	28,941	365,718
	Hamata	0.269	1.48	-	399	-
Total / Ave. Probable		16.558	1.77	22.45	29,340	365,718
Total / Ave. Proven + Probable		19.105	1.65	21.89	31,531	412,390

IMPERIAL			Grade		Metal Content
Mineral Reserve Category		Tonnes (Mt)	Gold (oz/t)	Silver (oz/t)	Gold (Moz)	Silver (Moz)
Proven	HVK	2.808	0.025	0.534	0.070	1.501
	Hamata	-	-	-	-	-
Total / Ave. Proven		2.808	0.025	0.534	0.070	1.501
Probable	HVK	17.955	0.052	0.655	0.930	11.758
	Hamata	0.297	0.043	-	0.013	-
Total / Ave. Probable		18.252	0.052	0.655	0.943	11.758
Total / Ave. Proven + Probable		21.060	0.048	0.639	1.014	13.259
Notes:
1. Mineral Reserves are reported with an effective date of 30 June 2022, using the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr D Ross, Group Mine Planning Engineer, and employee with Harmony PNG.
2. Mineral Resources are reported on a 100% basis. Harmony holds a 100% interest.
3. Mineral Reserves are reported using the following assumptions: open pit mining method, gold price of USD1,546/oz, silver price of USD22.35/oz at USD/AusD 0.73 exchange rate (PGK/USD 3.5 exchange rate).
4. Not all “ore” as defined at the economic cut off reports to the Mineral Reserve due to the constrained tailing storage facility with some marginal grade ore material remaining on stockpile. The Proved Mineral Reserve is limited to stockpiles. Probable Mineral Reserve is derived from the Indicated Mineral Resource.
5. Gold and silver ounces are estimates of metal contained in tonnages and do not include allowances for processing losses.
6. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.

Capital and Operating Cost Estimates

Capital and operating cost estimates were based on well-established cost base from 10+ years of mining plus the capital forecast as of 30 June 2022.

The life of mine (“LOM”) capital cost is estimated at USD124m. The capital cost estimates by area are presented in Table 1-3.

Table 1-3: Summary Capital Cost Estimate for Hidden Valley


Area			USDm
Tailings Storage Facility 1			24
Tailings Storage Facility 2			44
Mobile Fleet Replacements			39
Fixed Plant Sustaining			14
Other Sustaining			3
Total LOM Capital Cost			124


Effective Date: 30 June 2022 4


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

The operating cost estimates by area are presented in Table 1-4.

Table 1-4: Summary Operating Cost Estimate for Hidden Valley


Operating Cost Element			USDm
Mining Open Pit
Mining cost			127.49
Geology / Technical Services			34.98
Mobile Fleet and Light Vehicles Maintenance			178.52
Subtotal Mining Cost			340.99
Treatment Cost
Processing (including maintenance)			228.02
Power cost			108.29
Overland Conveyor and Crusher			45.19
Subtotal Treatment			381.49
Site Support Services
Camp Services			33.68
Commercial			31.96
Logistics			63.52
Other services (HR, IT, etc)			133.15
Obsolete stock			2.74
Royalties			40.52
Concentrate freight			5.95
Subtotal Site Support Services			311.54
Total			1,034.02
Notes: Total is inclusive of cost allocations for deferred stripping activities.

Permitting Requirements

In accordance with the Papua New Guinea Environment Act 2000, an Environmental Impact Statement was submitted to the Department of Environment and Conservation (now Conservation and Environment Protection Authority (“CEPA”)) in February 2004 in support of the development of the mine. Waste discharge and water extraction permits were subsequently issued to Hidden Valley Services Limited and were amalgamated as Environment Permit EP-L3(578) in October 2017. Morobe Consolidated presently operates the Hidden Valley Mine under the conditions imposed by EP-L3(578). This permit was amended in March 2021 and will expire on 29 March 2030.

Table 1-5: Environmental Approvals Register


Permit / Licence			Status
Environment Permit EP-L3 (578)			Awarded October 2017. Amended March 21. Expires March 2030.
EIS			Approved January 2005.

Conclusions

Under the assumptions in this TRS, the Hidden Valley Mine shows a positive cash flow over the life-of-mine and supports the Mineral Resource and Mineral Reserve estimate. The mine plan is achievable under the set of assumptions and parameters used.

Recommendations

The mine is in operation and a suitable budget needs to be re-evaluated annually to extract the Mineral Reserves as declared.


Effective Date: 30 June 2022 5


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

2Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS on the Hidden Valley Mine has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 – Technical Report Summary. The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand the Hidden Valley Mine which forms part of Harmony’s activities.

This TRS has been prepared from the following sources of information:

•Harmony Hidden Valley Operations Hidden Valley Mineral Resource Report April 2022 TMP133 prepared by Mr R Reid;

•Hidden Valley Operations: June 2022 Mineral Reserve Report

•2022 Harmony Gold Mineral Resource and Reserve Statement;

•Hidden Valley FY23 Budget; and

•Hidden Valley Monthly Reports.

The TRS was prepared by QPs employed at Harmony PNG. The QP qualifications, areas of responsibility and personal inspections of the property are summarised in Table 2-1.

Table 2-1: QP Qualifications, Section Responsibilities and Personal Inspections

Qualified Person

Prof. Assoc.

Qualifications

TRS Section Responsibility

Personal Insp.

Mr R Reid

FAIG, MAusIMM

BSc.(Hons), Grad.Dip (Sc)

3, 4, 5, 6, 7, 8, 9, 11

Regular.
Last June 2022

Mr G Job

MAusIMM

BSc. MSc (Min Econ)

1, 2, 3, 15, 21, 22, 23

Regular.
Last June 2022

Mr D Ross

MAusIMM

BEng (Mining)

12, 13

Regular.
Last June 2022

Mr M Swart

FAusIMM(CP), RPEQ

BMetEng, MBA

10, 14

Regular.
Last June 2022

Ms S Watson

MAusIMM

MSc, BSc.(Hons)

Regular.
Last July 2022

Mr. D Hall

MAHRI & MAICD

Bachelor Commerce (HR & Industrial Psychology)

Regular.
Last March 2020

Mr M Koehler

CAANZ

BBus Acc, Grad Dip (CA)

16, 18, 19

Regular
Last August 2021

This TRS is the first filing of such a document with the SEC. This TRS has an effective date of 30 June 2022. No material changes have occurred between the effective date and the date of signature.


Effective Date: 30 June 2022 6


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

3Property Description and Location

Section 229.601(b)(96) (3) (i-vii)

The Hidden Valley Mine is situated within the Morobe Province of PNG, approximately 90km south-southwest of Lae, the nearest commercial centre and capital of the Morobe Province (Figure 3-1) at a latitude of 7°22’S and longitude of 146°39’E. It is located approximately 15km southwest of the town of Wau.

The mine comprises the Hidden Valley Kaveroi and Hamata open pits located approximately 6km apart where Mineral Resources and Mineral Reserves have been declared. The mine has been in production since May 2009, processing ore through a single metallurgical processing plant. Hidden Valley produced 119,186oz of gold and 2,741,052oz of silver in FY2022.

3.1Mineral Tenure

Hidden Valley is owned and operated by Morobe Consolidated, which is a wholly owned subsidiary of Harmony.

Hidden Valley operates within ML151, registered in the name of Morobe Consolidated. The summary of mineral tenure is presented in Table 3-1 and graphically presented in Figure 3-2.

Table 3-1: Summary of Mineral Tenure for Hidden Valley

Licence Holder

Licence Type

Reference No.

Effective Date

Expiry Date

Area (ha)

Morobe Consolidated

Mining

ML151

04-Mar-2005

03-Mar-2030

4,098.29

Mining operations must be carried out on a continuous basis to ensure the validity of the ML. Any failure to maintain operations can result in a suspension. An extension to the Mining Lease was approved by the PNG Mineral Resources Authority in May 2021, with the lease expiring on 3 March 2030.

3.2Property Permitting Requirements

In accordance with the PNG Environment Act 2000, an Environmental Impact Statement (“EIS”) was submitted to the Department of Environment and Conservation (now Conservation and Environment Protection Authority (“CEPA”)) in February 2004. The EIS was approved in January 2005, and Waste Discharge and Water Extraction permits issued. In October 2017, these permits were amalgamated as Environment Permit EP-L3(578). In March 2021, an amendment to the Environment Permit was issued by CEPA and the mine presently operates under the conditions imposed by Environment Permit (EP-L3(578)), which will expire on 29 March 2030.

The holder of a Mining Lease must pay a royalty to the State that is equivalent to 2% of the net proceeds of sale of minerals (calculated as net smelter return (“NSR”) or free-on-board (“FOB”) export value, whichever is appropriate). A production levy of 0.25% is also payable on the gross value of production (i.e., excluding the offsets of treatment and refining charges, payable terms and freight). Hidden Valley also pays an equity payment of 0.25% of revenue to local landowners.

There are no known material legal proceedings currently impacting the site, nor are any foreseen that, if determined against the Company, would be likely to have a material negative impact on the operation.

The surface access has been obtained through negotiations with the land owners. The surface access is sufficient for the LOM.


Effective Date: 30 June 2022 7


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


Figure 3-1: Location of Hidden Valley

Figure 3-2: Mineral Tenure of Hidden Valley


Effective Date: 30 June 2022 8


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

4Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

4.1Accessibility

The Mine is located in a mountainous area of PNG. Hidden Valley is accessible via a specially constructed access road that links the mine to the nearby towns of Bullolo and Wau and connects with the provincial road network at Bullolo. The town of Bullolo is connected via this network to the provincial capital of Lae (Figure 3-1).

Commercial airlines operate flights between the national capital, Port Moresby, and Nadzab airport (Figure 3-1). Local airports are available at Bololo and Wau. There are no regular commercial flights into Bulolo or Wau; however, a number of small light aircraft companies fly regularly to both locations. The mine runs commercial charter flights into Bulolo from Port Moresby, Wau and the Highlands of PNG as part of the roster system. Helicopter access to the site is possible.

4.2Physiology and Climate

The deposits are located in steep, mountainous and forested terrain, with narrow stream beds, sharp ridges and valley side slopes commonly greater than 30°. Landslip scars are a common feature on the steeper slopes.

The mine is situated on the divide of the Upper Watut and Bulolo river catchments. These two rivers merge to form the Watut River, which ultimately joins the Markham River (Figure 3-1). The Hamata and HVK deposits are at elevations of 2,050m above sea level (“asl”) and 2,600masl, respectively,

The climate at the Hidden Valley Mine is classified as Lower Montane Humid (McAlpine et al. 1983). No strong meteorological seasonality exists, and rainfall remains relatively constant throughout the year, with slightly higher rainfall experienced over the November to February period and drier periods in the middle of the year. Rainfall does vary significantly with elevation in the Bulolo and Watut river catchments, generally increasing with altitude. Annual rainfall at Hidden Valley is approximately 2,800mm while Hamata receives an annual rainfall of 2,600mm. Rainfall exceeds evaporation with mean annual evaporation of 1,010mm at Hidden Valley and 1,220mm at Hamata.

Mean monthly maximum temperatures range between 22.2°C and 25.0°C at Hamata and between 18.0°C and 21.7°C at Hidden Valley. Mean monthly minimum temperatures vary from 10.4°C to 13.7°C at Hamata and 7.8°C to 11.8°C at Hidden Valley.

Winds at both Hamata and Hidden Valley are predominantly trending from the southwest through to southeast, most likely due to topographical effects rather than wind season influences. Winds are generally light at Hamata, with mean monthly wind speeds of up to 5.7m/s. Winds at Hidden Valley are stronger, probably due to higher elevation and exposure and mean monthly wind speeds of up to 12.3m/s have been recorded.

Mining activities occur year-round, although they may be temporarily curtailed by heavy rainfall events.

4.3Local Resources and Infrastructure

Wau is the closest town, with an estimated population of 5,800 (2011 census). This town was the centre of the gold rush in the 1920s and 1930s in the Morobe Goldfield. An airstrip is operational in the town.

The nearest large town is Bulolo, with a population estimated at 20,000 in 2010. In the 1930s, this town was the centre of gold dredging on the Bulolo River. The town has an airport, schools, clinics and hospitals. Forestry is currently the dominant industry in the area.

Lae is an urban area, a major transport hub, and a commercial, administrative, industrial, residential, and educational centre for both the Morobe Province and PNG, with a population in 2011 (the most recent year for which PNG census data are available) of approximately 149,000.


Effective Date: 30 June 2022 9


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

5History

Section 229.601(b)(96) (5) (i-ii)

5.1Historical Ownership and Development

The Hidden Valley deposit has had a long history from discovery until the present day. The historical highlights and ownership changes are presented in Table 5-1.

Table 5-1: Summary of Historical Ownership Changes and Activities at Hidden Valley


Year			Asset History Highlights
1927-1929			Gold was discovered in Hidden Valley Creek by W.H. Chapman in 1927 (Lowensteub, 1982) and worked until 1929.
1984			CRA Exploration (Pty) Limited ("CRAE") discovered Hidden Valley Kaveroi deposit from a regional stream sediment sampling programme in the headwaters of the Upper Watut River. Sediment samples (-80mesh) returned values of 54ppm Au. Mapping up the creeks revealed a landslide on the northern bank of Hidden Valley Creek had exposed altered and mineralised granodiorite with initial chip sampling returning 55m @ 3.8ppm Au.
1985			CRAE commenced with drilling and intersected wide zones of mineralisation.
1988			First Mineral Resource estimate published at a gold grade cut-off of 1g/t Au, 31Mt at 2.07g/t Au and 30g/t Ag.
1989			CRAE completed a Pre-Feasibility Study which concluded that the deposit was too marginal at that time to develop.
1992			Placer Pacific Limited ("Placer") entered into a joint venture ("JV") with CRAE and drilled 13 drill holes and tested adjacent targets.
1993			Placer exited JV.
1995			Hiatus with no exploration.
1997			CRA (now known as Rio Tinto Limited ("Rio Tinto")) sold its interest in the Hidden Valley Kaveroi deposit to a wholly owned subsidiary of Australian Goldfields NL ("AGF"), who was subsequently placed into administration. Mineral Resource estimated at a gold grade cut-off of 1g/t Au, 31.3Mt at 2.57g/t Au and 38g/t Ag.
1998			Aurora Gold Limited ("Aurora") acquired the deposit from the administrators of AGF.
2002			Aurora completed Feasibility Study. Mineral Resource estimated at a gold grade cut-off of 0.7g/t Au, 51.7Mt at 2.35g/t Au and 37g/t Ag.
2003			Abelle Limited ("Abelle") obtained 100% ownership of the deposit in February 2003, following the merger of Abelle with Aurora.
			Harmony effectively acquired 100% of Abelle in May 2003.
2005			A Memorandum of Agreement ("MOA") between landowners and the PNG Government was signed in August 2005 which resulted in the mining lease (ML151) for the project being granted.
2008			Harmony commenced and completed a Feasibility Study on the deposit and commenced construction in 2008.
2008			Morobe Mining Joint Ventures ("MMJV") was formally established as a 50:50 joint venture between Harmony and Newcrest Mining Limited ("Newcrest").
2009			Ore treatment plant commissioned in August 2009.
2010			Mine officially opened in September.
2016			Harmony buys Newcrest out and becomes 100% owner of Hidden Valley.
2021			Extension to ML151, LMP80 and ME82

5.2Historical Exploration

Historical exploration dates back to 1984 and has included regional exploration sampling, reverse circulation and diamond core drilling. The historical exploration is included in Table 5-1. The results of the exploration, which are also included in the current geological modelling and Mineral Resource estimation, are discussed in Section 7.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous Mineral Resource was reported as at 30 June 2021 according to SAMREC, 2016. Mineral Resources were reported exclusive of those Mineral Resources converted to Mineral Reserves. Mineral Resource estimates are provided in Table 5-2 and have been superseded by the current estimate prepared by Harmony in Section 11 of this TRS.

The Mineral Resource includes broken ore stockpiles after mining depletion, which are classified as Measured Resources.

Table 5-2: Summary of Previous Hidden Valley Mineral Resources as at 30 June 2021 (Exclusive of Mineral Reserves)


METRIC			Grade		Metal Content
Mineral Resource Category	Open Pit	Tonnes (Mt)	Gold (g/t)	Silver (g/t)	Gold (kg)	Silver (kg)
Measured	HVK	-	-	-	-	-
	Hamata	-	-	-	-	-
Total / Ave. Measured		0.000	0.00	0.00	0	0
Indicated	HVK	34.191	1.32	19.39	45,244	663,076
	Hamata	1.634	1.91	-	3,120	-
Total / Ave. Indicated		35.825	1.35	19.39	48,364	663,076
Total / Ave. Measured + Indicated		35.825	1.35	19.39	48,364	663,076
Inferred	HVK	1.418	1.06	20.63	1,498	29,259
	Hamata	0.190	1.50	-	284	-
Total / Ave. Inferred		1.608	1.11	20.63	1,782	29,259

IMPERIAL			Grade		Metal Content
Mineral Resource Category	Open Pit	Tonnes (Mt)	Gold (oz/t)	Silver (oz/t)	Gold (Moz)	Silver (Moz)
Measured	HVK	-	-	-	-	-
	Hamata	-	-	-	-	-
Total / Ave. Measured		0.000	0.000	0.000	0.000	0.000
Indicated	HVK	37.689	0.039	0.566	1.455	21.318
	Hamata	1.801	0.056	-	0.100	-
Total / Ave. Indicated		39.490	0.039	0.566	1.555	21.318
Total / Ave. Measured + Indicated		39.490	0.039	0.566	1.555	21.318
Inferred	HVK	1.563	0.031	0.602	0.048	0.941
	Hamata	0.209	0.044	-	0.009	-
Total / Ave. Inferred		1.772	0.032	0.602	0.057	0.941

The previous Mineral Reserve estimate for Hidden Valley was reported as of 30 June 2021, in accordance with SAMREC, 2016. Mineral Reserves are reported on a 100% basis. The summary of the Mineral Reserve estimate for HVK is tabulated in Table 5-3, and has been superseded by the current estimate prepared by Harmony as detailed in Section 12 of this TRS.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Table 5-3: Summary of the Previous Hidden Valley Mineral Reserves as at 30 June 2021


METRIC			Grade		Metal Content
Mineral Reserve Category		Tonnes (Mt)	Gold (g/t)	Silver (g/t)	Gold (kg)	Silver (kg)
Proven	HVK	3.388	0.95	17.31	3,206	58,661
	Hamata	0.006	1.63	-	0,010	-
Total / Ave. Proven		3.394	0.95	17.31	3,216	58,661
Probable	HVK	19.867	1.59	27.18	31,609	540,062
	Hamata	0.242	1.82	-	0,442	-
Total / Ave. Probable		20.109	1.59	27.18	32,051	540,062
Total / Ave. Proven + Probable		23.504	1.50	25.75	35,267	598,723

IMPERIAL			Grade		Metal Content
Mineral Reserve Category		Tonnes (Mt)	Gold (oz/t)	Silver (oz/t)	Gold (Moz)	Silver (Moz)
Proven	HVK	3.735	0.028	0.505	0.103	1.886
	Hamata	-	-	-	-	-
Total / Ave. Proven		3.735	0.028	0.505	0.103	1.886
Probable	HVK	21.900	0.046	0.793	1.016	17.363
	Hamata	0.267	0.053	-	0.014	-
Total / Ave. Probable		22.167	0.046	0.793	1.030	17.363
Total / Ave. Proven + Probable		25.901	0.044	0.751	1.134	19.249

5.4Past Production

The production from Hidden Valley for the last seven years is presented in Figure 5-1 and Figure 5-2 .


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


Figure 5-1: Graph of Hidden Valley Production History – Tonnes and Grade

Figure 5-2: Graph of Hidden Valley Production History – Metal Produced


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii)

Hidden Valley Mine is made up of the following deposits:

•the vein-stockwork gold-silver HVK deposit, which in turn comprises:

•the high gold – moderate silver Hidden Valley deposit (830m x 500m x 200m);

•the moderate gold – high silver Kaveroi deposit (1,000m x 400m x 280m); and

•the vein-stockwork gold-silver Hamata deposit (800m x 300m x 100m).

The Hidden Valley Operation comprises three separate deposits, Hidden Valley, Kaveroi and Hamata. Whilst Hidden Valley and Kaveroi are situated side by side and effectively mined as a single pit, Hamata is a distinct deposit, mined via a separate pit. The Hamata deposit is largely mined out and does not form a material part of the Mineral Resources or Mineral Reserves.

6.1Regional Geology

PNG has undergone a complex history of tectonic development involving a change from early passive margin extension on the edge of the Australian Plate to convergent phases of obduction and continental arc development.

The first significant phase was during the first collision of the Australian Plate with the Bismark and Pacific Plates during the Eocene. This episode was responsible for the emplacement of the Papuan Ultramafic Belt Ophiolites and the regional mid to upper greenschist metamorphism and deformation that affects the area. An Rb-Sr isotopic age of 21.0±4.0Ma has been obtained from strongly cleaved phyllites from Mount Kaindi; the tight result adds confidence to the date and indicates an early Miocene date for the completion of the regional metamorphic event termed the Papuan Orogeny (Davies and Jaques, 1984; Little et al., 2011). More recently, the commencement of the Niugini Orogeny (about 5 Ma) has resulted in the uplift and deformation of what has become known as the New Guinea Mobile Belt. This orogeny is currently ongoing.

The Owen Stanley Metamorphic Complex comprises clastic meta-sedimentary rocks, minor limestones and meta-basic volcanics. The Owen Stanley metamorphics have been dated as Permian based on SHRIMP U/Pb ages (282.6+/-1.7Ma; Bodorkos et al. 2013) for the eastern assemblage to Cretaceous ages (~110Ma) in the west based on SHRIMP U/Pb dates from Twomey and Dobe (2015) and fossil and foraminifera evidence (Dow et al. 1974). These rocks are referred to as “Kaindi Metamorphics” in the Wau region and throughout this report.

Morobe Granodiorite intruded the Kaindi Metamorphics at a batholithic scale in the Middle Miocene (SHRIMP UP/b age of 13.6 +/ -0.13Ma; Bodorkos et al. 2013). The Morobe Granodiorite is a medium-grained, generally unaltered biotite-hornblende granodiorite with local adamellite and monzonite phases (Dow et al., 1974; Williamson and Hancock, 2005) and has strongly hornfelsed the Kaindi Metamorphics on its contacts. The Morobe Granodiorite is bound on the NW side by the Sunshine Fault and on the SE side by the Kamerenga Fault systems. Both of these faults are deep-seated structures and control the development of the Wau Graben (Gray, 2012) (Figure 6-1). The Granodiorite has been dated to between 12 and 14 Ma (Page, 1971; Lowenstein, 1982; Bodorkos et al. 2013).

The Wau Graben, a back-arc pull-a-part rift basin, formed in the southern extension of the New Guinea Mobile Belt in an area known as the Owen Stanley Foreland Thrust Belt. The graben covers an area of approximately 850 km2 and contains the Morobe Goldfield, including the Hidden Valley Kaveroi and Hamata deposits. Owen Stanley Metamorphic Complex and Morobe Granodiorite are basement rocks to the Wau Graben. The graben formed from dextral, right stepping strike-slip faults formed under NE-SW to ENE-WSW compression (Gray, 2010)

The formation of the Wau Graben preceded a resurgence of igneous and volcanic activity, occurring along and within inferred bounding faults to the graben during the Pliocene.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


Figure 6-1: Regional Geology
Source: HiddenValley202202_resource_report_Final_SAMREC_Format
Figure 6-2: Local Geology and Structural Plan
Source: HiddenValley202202_resource_report_Final_SAMREC_Format


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

This magmatic activity included the intrusion of stocks and plugs of andesitic to dacitic composition, termed the Edie Porphyry suite, and the eruption and re-deposition of andesitic to dacitic volcaniclastic rocks of the Bulolo Volcanics.

These volcanics have been dated to between 3.46 +/- 0.06 and 3.22 +/- 0.06 Ma (Bodorkos et al. 2013). Major epithermal to mesothermal gold-silver-base metal mineralisation of the basement rocks (e.g., Edie Creek, Hamata and HVK), Pliocene intrusions and volcanics accompanied this magmatic event.

6.2Local Geology

The HVK deposit is a vein-stockwork gold-silver deposit located in the southeast corner of the Wau Graben (Figure 6-1) and is hosted by the Morobe Granodiorite. The deposit setting is controlled by the rotation and deformation of the Papuan peninsula. The local geology is presented in Figure 6-2, along with a stratigraphic column in Figure 6-3.

6.3Property Geology

The Kaindi Metamorphics occur as a cap to the HVK mineralisation. HVK comprises grey-black and green-brown, variably carbonaceous, schistose, quartz-rich psammites and pelites that have undergone regional greenschist metamorphism and localised, higher grade contact metamorphism on intrusive contacts with Morobe Granodiorite. The granodiorite comprises two parts; an upper homogenous granodiorite of uniform texture, cut by thin aplite dykes and feldspar porphyry dykes; and below the HV fault, a more heterogeneous lower unit comprising granodiorite, diorite, adamellite, tonalite and feldspar porphyry (Adams, 1998). The lower unit tends to contain gypsum veining, not regularly seen in the upper unit.

Numerous porphyry dykes of the Eddie Creek Suite intrude both the Kaindi Metamorphics and the Morobe Granodiorite. Porphyry composition varies from hornblende-biotite to feldspar-quartz phenocryst varieties. These bodies are not general mineralised but do commonly show some alteration.

Surficial weathering, mainly by downward percolation of oxygenated meteoric water, is variable over the gold-silver deposit due to lithological, alteration and structural discontinuities. Of the two main rock units, the granodiorite is usually more deeply weathered than the metasediment. At the Hidden Valley Kaveroi deposit, four distinct oxidation zones are recognised; an oxide zone, a zone of partial oxidation, a zone of fracture oxidation and a fresh (primary) zone. However, the effects of supergene gold enrichment or depletion (if present) are minimal for the Hidden Valley Kaveroi deposit.

The Hamata deposit is hosted in the Morobe Granodiorite which is medium-grained and relatively uniform in composition and grain size. The unaltered granodiorite contains plagioclase, potassium feldspar, quartz, biotite and hornblende. Minor andesite dykes and dacite porphyries irregularly intrude the granodiorite throughout the deposit; however, a significant dacite feldspar porphyry occurs as a large body on the western side of the deposit associated with the Western Fault. While this porphyry is unaltered and un-mineralised, smaller intrusions within the ore body are commonly altered, indicating the porphyry intrusions occurred throughout and post the mineralisation event. The deposit sits within the hangingwall of the Upper Watut Fault and is cut by significant faults belonging to two different fault generations. An earlier series of NNE-SSW striking structures that dip moderately to steeply to the E-SE, such as the 5-15m wide Western Fault, and the 2m wide Southern Fault, which divides the southern domain from the rest of the deposit. A second set of structures strike SE and dip steeply to the NE, the largest of these structures is the Cross Fault which separates the centre domain from the northern domain.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

6.3.1Alteration and Veining

There are four generations of veins recognised as follows:

•Stage 1 or Early Veins: These veins comprise quartz-pyrite, chlorite-epidote and quartz-chlorite-pyrite veins. The veins carry low-order gold ranging from a few millimetres to several centimetres and occur in most rock types. Most of the metamorphic quartz veins are related to this early vein generation;

•Stage 2 Veins: These veins are multigenerational and are developed in moderate propylitic altered zones. These comprise quartz-chlorite-hematite-pyrite, carbonate-chlorite-pyrite, carbonate-hematite-pyrite veins. Despite containing marginally elevated gold, these veins are important in providing significant preparation for later auriferous veins;

•Stage 3 Veins: These veins are economically significant because of the high-grade gold content. The three subtypes have been identified as follows:

•quartz-adularia-carbonate occur as irregular stockwork veins range from 2-10mm in width. Coarse adularia is seen rimming feldspar with pyrite inclusion. These veins contain moderate gold grades;

•carbonate - base metal sulphide veins that carry the bulk of higher grade gold. Carbonate species characterise these with variable amounts of galena-sphalerite-chalcopyrite-pyrite +/- free gold. Colloform texture with adularia growing along the edges is frequently observed. A manganese-rich pinkish carbonate called kutnahorite is sometimes observed within the main ore zone;

•carbonate-rhodochrosite-pyrite veins with low-moderate gold. These veins occur peripheral to the main high-grade zone; and

•Stage 4 veins: These are late-stage and include massive pyrite, clay shears and breccia veins. The latter contains economic gold grades, especially within the HV fault zone.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


Figure 6-3: Cross Section of HVK
Source: Hidden Valley
Figure 6-4: Stratigraphic Column
Source: Hidden Valley


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Regional propylitic alteration of granodiorite is represented by the partial, selective replacement of primary hornblende and biotite by chlorite ± epidote and/or calcite. This alteration locally occurs with pyrite, hematite and/or magnetite disseminations and veinlets. These are generally barren with respect to gold, silver and base metals.

The most common and intensely developed alteration selvage, located on and around the mineralised vein-stockworks, is sericitic alteration. This selvage comprises sericite-illite + chlorite + carbonate + pyrite. Argillic alteration locally occurs as a minor overprint on sericite-illite in alteration selvages. This is represented by illite ± kaolinite ± carbonate. The Kaindi Metamorphics generally show localised quartz + chlorite + sericite + clay + pyrite alteration and “bleaching” adjacent to vein stockworks (Figure 6-3). A strong zonation occurs related to the host rocks being affected by the alteration. Background alteration in the Kaindi metamorphics comprises largely chlorite, whereas, within the granodiorite, epidote is more common. Moreover, the chlorite moves from a Fe-poor 2+ form in metasediments to a Fe-rich 3+ form (i.e., from reduced to oxidised) into granodiorite. Additionally, illite – common in the metasediments, is more commonly found as phengite (a Fe-rich form) within the Granodiorite (again from reduced to oxidised across the contact). This change indicates a redox change across the contact, which significantly coincides with a marked drop in grade; very little gold is found within the overlying metasediments.

6.3.2Structure

The HVK deposit is divided into two distinct structural zones; the Hidden Valley Zone (“HVZ”) and the Kaveroi Creek Zone (“KCZ”). The HVK deposit appears to be bounded and structurally controlled by a series of northwest to north-northwest striking faults in Morobe Granodiorite and the basal in-situ contact of Kaindi Metamorphics (Figure 6-2). These features occur within the Upper Watut Fault Zone; one of the major bounding structures of the Wau Graben.

The HVZ is characterised by shallow northeast dipping vein sets bound by the Hidden Valley fault below and the Upper boundary fault above. The KCZ comprises a series of steeply southwest dipping vein sets within a broad moderately northeast dipping mineralised halo.

Large reactivated fault structures (e.g., Hidden Valley Fault) are characterised by angular to sub-rounded wall rock fragments of varying size and showing varying degrees of intensity of alteration and mineralisation, supported by massive to foliated, unconsolidated, gritty clay matrices with abundant sulphide clasts. Most of the faults identified within the HVK deposit show evidence of reactivation by younger tectonism.

Faults in the HVK can be divided into four main sets (Gray, 2010):

•the Hidden Valley set (Set 1): comprises northwest-southeast trending northeast dipping thrust faults. Kinematic indicators show they were initially active under a northeast-southwest compression event (towards 220°) and have since been reactivated under an extensional regime with sub-vertical shortening and northeast-southwest elongation;

•east/west steeply dipping Faults (Set 2): showing sinistral down-dip HW movement in a strike-slip regime under northwest-southeast compression, shows similar kinematics to set 1 faults;

•northeast-trending, southeast dipping Normal Faults (Andim, Nogat, Pata Faults – set 3): indicating sub-vertical shortening and northwest-southeast elongation in an extensional regime; and

•northwest-trending, southwest dipping normal faults (set 4): sub-vertical shortening and northeast-southwest directed extension.

6.4Mineralisation

The HVK deposit is classified as a low-sulphidation or adularia-sericite-type epithermal gold-silver system. Leach and Corbett further classify HVK mineralisation into a sub-group simply referred to as carbonate - base metal - gold, due to the presence of carbonates as vein-gangue.

High-grade gold-silver mineralisation in the HVK deposit is associated with manganocarbonates (e.g., kutnahorite, rhodochrosite) and dissolution of sulphide grains in late stages of the vein paragenesis. There is also a tentative association of high gold-silver grades with the presence of late chalcopyrite and sulphosalts in these veins.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Gold-silver mineralisation is largely hosted in narrow, moderate to steeply northeast dipping and west southwest dipping veins in the Hidden Valley and Kaveroi lodes, respectively. These veins occur in dilatational structures formed as the result of normal movement on major faults, such as the Hidden Valley Fault, and others occurring in the hanging wall of this structure.

Gold occurs in electrum with rare gold tellurides and as rare free grains mutually intergrown with carbonate. Silver is mainly present as either electrum or sulphosalts. Electrum most commonly occurs as inclusions within or intergrown with late-stage tetrahedrite and silver-sulphosalts. Therefore, gold shows a moderate positive correlation with silver and base metals in the HVK deposit. However, the silver shows two independent populations – a base metal association and a gold-silver association- leading to complications during the estimation process.

Mineralised veins in the Hidden Valley lode show a predominant northeast dip and are structurally bound in granodiorite by a northwest striking structure, called the Hidden Valley Fault, and an upper contact on the Kaindi Metamorphics. Mineralisation has been dated to 4.2Ma (Hoppe, 1999; Nelson et al., 1990).

Mineralised veins in the Kaveroi lode show a predominant west-southwest dip and are also hosted in granodiorite. The mineralisation appears to be structurally bound by north northwest striking, steep east northeast dipping structures that are thought to be hanging wall splays off the Hidden Valley Fault. Despite the different kinematics, both deposits appear to be related to first a compressional and then extensional structural regime, as indicated by the normal offsets in the bounding structures and the shallow dipping Edie Creek Porphyries that cut the orebody (Gray, 2010).

Later drilling has indicated the presence of fault-controlled, steeply west-dipping fault structures cutting Kaveroi that contain very high gold and silver grades. The first of these structures identified has been termed ‘Big Red” and contains pods of strongly mineralised breccia at the intersection of the strongly mineralised fault and cross cutting faults. As drilling and mining progresses a number of similar strike parallel structures have been identified.

The paragenesis of mineralised vein-stockworks in HVK is believed to represent a continuum of hydrothermal fluids depositing varying amounts of carbonate (dominantly manganocarbonate and calcite), sulphides (sphalerite, galena, pyrite, minor chalcopyrite), and sulphosalts, together with subordinate adularia, quartz, and electrum. K-Ar dating of adularia in mineralised vein material from HVK indicates a Pliocene age (4.1Ma to 4.2Ma) for vein deposition and probably gold-silver mineralisation. This is synchronous with regional magmatism, emplacement of Edie Porphyry and associated gold-silver mineralisation located elsewhere in the Wau Graben.

Mineralisation at Hamata comprises a high temperature quartz-pyrite epithermal vein system occurring as a series of sub-parallel South east-dipping vein sets. Individual reefs typically have a strike length of 100m and can be traced up to 100m down dip; they generally define shallow to moderately NE dipping tensional veins commonly with a significant sigmoidal shape.

6.5Deposit Type

HVK is a low sulphidation carbonate base metal gold-silver deposit, whilst Hamata is a high temperature quartz-pyrite ± sericite epithermal deposit

6.6Commentary on Geological Setting, Mineralisation and Deposit

In the opinion of the QP, the understanding of the HVK deposit settings, lithologies, mineralisation, and geological, structural, and alteration controls on mineralisation is sufficient to support the estimation of Mineral Resources.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

7Exploration

Section 229.601(b)(96) (7) (i-vi)

The HVK deposit has had a long history of exploration (Table 5-1) dating back to the 1980s. The amount of exploration carried out over the Project area is significant, and the volume of the results is too large to enable detailed reporting herein. The exploration results that have been used in the estimation of the Mineral Resources are identified and discussed in as much detail as possible, given the confines of this TRS.

7.1Mapping Surveys

7.1.1Topographic Survey

The pre-mining topography was compiled from contour data generated by CPS Palanga Surveys (“CPS”) during an extensive re-surveying programme completed in 1998-1999 across the project where collars, trenches, topography, creeks, roads and control points were all captured. Error is believed to be between 0.05m for control points, 0.10-0.15m for collars and topography and 0.5m for benches and sample points (Onley, 1999).

The grid system at Hidden Valley is coincident with the Australian Map Grid (AMG66). The current site grid is HVD91 and was developed by CRAE. CPS provided survey control. HVD91 is approximately equivalent to a truncated AMG66, where the Easting is less 400,000m and the Northing is less 9,100,000m. The magnetic declination to HVD91 is approximately 7°.

7.1.2Light Detection and Ranging (“LiDAR”) Survey

In 2010, a LiDAR survey was flown over the area, the results of which inform the bulk of the Mineral Resource area. The original CPS data have been used in those areas where mining had commenced. All as-mined topographical surfaces used to deplete the Mineral Resource, and for reconciliation purposes were obtained from the mine’s survey team, who generate a weekly surface based on traditional surveying methods, LiDAR scanning technology and drone surveys. The 2010 Lidar survey was supplemented across much of the site with a new LiDAR survey in 2016.

7.1.3Geological Mapping

A large mapping dataset exists from detailed work completed over the years.

The geological model used in the Mineral Resource estimate has been based upon combined drill hole data and surface mapping that has been completed over time. The author has conducted some structural mapping in and around the site and within the open pits on a number of occasions. Observations gathered during open pit mapping have been combined with more regional mapping work completed over time by site geologists and consultants to construct a robust geological model that will support the grade estimate.

7.2Geophysical Surveys

Available regional government geophysical datasets include a 1000m spaced fixed-wing airborne magnetic survey, a 400m spaced helicopter airborne magnetic survey and a 2000m spaced fixed-wing gravity survey. Available company geophysical datasets include a 50m spaced helicopter airborne magnetic survey, some prospect-specific ground magnetic survey stations, and induced polarisation surveys.

7.3Petrology, Mineralogy and Research Studies

There have been a significant number of petrology and mineralogy studies completed on the deposit over the years. CRAE completed regular Petrology studies, the first in 1985 and regularly most in most years. In 2011 a Mineralogy study was completed on a variety of ore sources by the Newcrest process mineralogist, which resulted in a detailed analysis of the composition of the ore feed.

There have been no published research studies done on Hidden Valley.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

7.4Geochemical Sampling

Regional stream sediment and ‘Ridge and Spur’ soil sampling was completed by CRAE between 1983(?) and 1989. Additional soils and trenches were completed prior to and post- the commencement of drilling. Drilling data and mining have superseded the information in the trenching programs.

Available geochemical sampling on ML151 includes a total of 24,844 surface samples. These are a mix of historical company data and Harmony collected sampling. Surface geochemical sampling techniques include soil (8,741), rock chip (12,468), wacker (2,033), auger (920) and stream sediment (245), plus some other less common techniques. Available assay suites for both historical company data and Harmony collected sampling vary widely, with assay suites generally extended to more elements in more modern times.

7.5Stream Sediment Sampling

CRAE discovered Hidden Valley using stream sediment sampling campaign up the headwaters of the Upper Watut River in 1984. Sediment samples (-80mesh) returned values of 54ppm Au. No further information is available on the stream sediment sampling campaign. These data are not, however, used in geological modelling and Mineral Resource estimation.

7.6Surface Drilling Campaigns

Surface drilling completed to date included diamond core and reverse circulation (“RC”) drilling.

A total of 34,086 holes measuring 1,099,053m of drilling were used in the generation of the 2022 geology and domain mode. This includes both blast and RC operational grade control drilling.

A total of 1,586 drill holes, comprising 275,491m of drilling was used in the Mineral Resource estimate. The location of all drill holes is presented in Figure 7-1. This represents an additional 311 drill holes (28,897m) since the last model was prepared in February 2021. The drill holes used in the estimate are summarised by company in Table 7-1, and by type in Table 7-2.

The reader should note that these tables exclude grade control drilling. This drilling (Figure 7-2) was not included in the Mineral Resource estimate due to sample support issues which would result from such closely spaced drilling.

Table 7-1: Summary of Drill Holes Used by Company


Year	Company	No. Holes	Metres Drilled (m)
1985-1996	CRAE	144	39,526
1992	Placer	13	3,379
1997-1998	AGF	16	2,967
1998-2002	Aurora	135	35,208
2003-2005	Abelle	31	8,736
2007-2008	Harmony	46	17,871
2009-2016	HVJV	164	70,234
2016-2021	Harmony	1,037	97,570
Total		1,586	275,491

Over 94% of the Mineral Resource drilling to date has been using diamond core with the remaining drilling being a combination of RC pre-collars with diamond tails and some minor RC drilling.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


Figure 7-1: Location of Drilling Used in Mineral Resource Estimate
Source: HiddenValley202202_resource_report_Final_SAMREC_Format
Figure 7-2: Location of Operational Grade Control Drilling
Source: HiddenValley202202_resource_report_Final_SAMREC_Format


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Table 7-2: Summary of Drill Holes Used by Type


Type	Symbol	No. Holes	Metres Drilled (m)
Diamond	DD	531	174,639
Diamond Wedge	DD_W	1	300
Reverse Circulation	RC	23	2,369
RC start & diamond at depth	RC/DD	21	7,112
RC Grade Control	RC_GC	705	56,945
RC Resource	RC_RES	305	34,126
Total		1,586	275,491

7.7Diamond Drilling Campaigns, Procedures, Sampling, Recoveries and Results

Diamond drilling was used where detailed geological or geo-technical information was required.

7.7.1Drilling Methods

Diamond drilling was conducted using wireline drilling methods, with a triple tube system employed. Rigs used originally were from United Pacific Drilling (PNG) Limited and were helicopter-supported Longyear 38, Longyear 44 and LF-70 skid-mounted rigs placed on hand-dug drill pads. In 2009 the HVJV contracted Traverse Drilling to conduct diamond core drilling at Hidden Valley. Up to four Coretech track-mounted YDX-3L and DE740 drill rigs were utilised up until 2012 when resource definition diamond drilling on the project largely ceased.

Drill spacing varies across the deposit due to available drill locations and the depths of the drillholes; however, efforts are made to ensure the Mineral Resource Definition drilling is reduced to 40m spacing where possible. Areas that are lacking data are targeted with specific RC drillholes when the Open pit gets to an appropriate depth. This data is then included in the annual Mineral Resource model update.

The diamond core drilling was generally PQ size from surface to a depth of between 100 - 150m, then reduced to HQ size for the remainder of the hole. Occasionally for deeper holes with problematic ground conditions, the core size was reduced to NQ.

Hole conditioning is always required to stabilise the moderately to highly fractured ground conditions, with drilling additives constantly maintained in circulated drilling fluids to ensure maximum core recovery.

Drill holes were drilled as inclined holes varying from 50 – 90° in inclination, generally on grid as east or west-directed drilling. Drill hole design depths varied from 150 – 800m, although total depths were assessed based on meeting drilling target objectives and drill hole trajectory rather than a predetermined planned depth.

All core was originally oriented for collection of structural information; however, core orientations were ceased onsite during 2011 because of the continual failures due to broken or faulted ground conditions preventing the transfer orientation lines or match between runs.

Harmony and the HVJV implemented standard procedures for the preparation and sampling of drill core, which adopts best practice to ensure quality assurance and quality control throughout the process of core mark-up, digital core photography, geotechnical logging, and geological logging, through to core cutting, sampling and sample dispatch.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

7.7.2Collar Surveys

Collar locations were originally surveyed using contractors from Asia Pacific Surveyors Limited. More recently, they are surveyed by the qualified on-site survey team using Differential Global Positioning System (“DGPS”) equipment.

In the past, a variety of methods have been used, including theodolites and standard GPS units. In all cases, the survey method was documented in the database. On the rare occasion, the drill hole collar has not been picked up, and the collar retains the planned coordinates – this is documented in the database as estimated or nominal.

Collars have been checked against topographical surfaces – both original and mined and all are located within 1m or less of the topography at the time of drilling.

7.7.3Downhole Surveys

All diamond drill holes are surveyed downhole. Downhole survey data in the past was obtained via Eastman DH cameras. In recent years downhole surveys have been carried out using modern electronic downhole survey tools, with a measurement taken at 9m followed by 50m and, more recently, 30m intervals.

These survey data are captured in electronic files and processed to remove outliers prior to import into DataShed, and all raw data is captured in the database.

7.7.4Logging Procedures

Following receipt of core from the drill sites, core is marked up (measured and metre marks annotated in permanent marker on core and core tray inserts/outer) prior to geotechnical and geological logging.

All core was originally oriented for collection of structural information; however, core orientations were ceased on-site during 2011 because of the continual failures due to broken or faulted ground conditions preventing the transfer orientation lines or match between runs.

Geological logging was both qualitative and quantitative and recorded lithology, mineralisation, alteration mineralogy, weathering, structural characteristics and other physical core properties. A consistent geological logging standard and descriptive terminology have been applied since Aurora Gold Limited took over the project in 1998. Historical logging conducted by CRAE, and RGC was transformed into this terminology.

Geological logging codes evolved over time with increased geological understanding of different rock types and associations. For most drill holes, logging includes details of:

•core recovery;

•rock quality designation (“RQD”);

•lithology;

•alteration; and

•weathering; and

•structural features.

Detailed geotechnical information, such as rock strength, fracture frequency, rock mass rating (“RMR”) and discontinuities, was collected for some later core drill holes.

Mineralisation was logged and photographed before sampling. All core photographs were downloaded and uploaded to a computerised database for reproduction purposes. Core photographs are available for drill holes completed since exploration started on the site.

All geological and geotechnical logging is conducted digitally using toughened field laptops and LogChief (Maxwell GeoServices) logging software. The software contains a locked set of geological libraries, so all data is recorded using a standard set of codes. This is done to ensure consistency in logging and to reduce the incidence of data entry errors. The logging process follows Harmony’s Drill Hole Logging Protocols which have been developed over time in accordance with industry best practice


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

7.7.5Results

With 541 diamond drill holes being completed since 1985, the results are too voluminous to be reported in this report. However, the results have been included in the geological modelling and Mineral Resource estimation process

7.7.6Core Recovery

Best practice was implemented to ensure maximum core recovery and quality and integrity of the samples. Core recovery was recorded for all core drilling on a metre-by-metre basis as a percentage. Core recovery averaged 94% over the drilling dataset.

Review of the results indicates that, while the recoveries are generally good, there is some core loss resulting from significant clay and fault zones that impact the quality of the core and the recoveries. Additionally, there are a significant number of intervals with greater than 100% core recovery. All these instances relate to short runs of generally less than 50cm in poor ground.

No material relationship was identified between core recovery and grade. There is a significant amount of grade across zones of poor recovery, which is expected given the main alteration product associated with the mineralisation is clay, and a significant amount of puggy clay fault zones occur within the deposit. Overall, there does not appear to be a substantial amount of gold loss through core loss.

7.7.7Sample Length and True Thickness

The sampling of the diamond and most RC drill holes is conducted on 1m intervals, some historic holes were sampled on 2m intervals. Where Mineral Resources use deeper grade control data, the holes are sampled at 1.5m which is half the mining flitch height of 3m. The HVK deposit is not a tablet-style deposit, so true width calculations do not apply in this context. Holes commonly start within or do not exit the extent of the deposit.

7.8RC Drilling Campaigns, Procedures, Sampling, Recoveries and Results

RC drilling procedures, sampling, recoveries, and results are reported here only where different to those reported above in the diamond core drilling section.

7.8.1Drilling Methods

RC drilling is completed by QED, who utilize Schramm 450WS reverse circulation drill rigs for all RC and grade control drilling.

Inclined drill holes, generally 60° - 70°, are drilled targeting areas lacking data. This infill drilling aims to step spacing down to a maximum of 40m.

Sampling is completed using a 5.25 inch face sampling hammer and chips collected via a rotary cone splitter on the rig.

Rock chips are collected and placed into chip trays for geological logging.

7.8.2Collar Surveys

In the past, a variety of methods have been used, including theodolites and standard GPS units. In all cases, the survey method was documented in the database. On the rare occasion, the drill hole collar has not been picked up and the collar retains the planned coordinates – this is documented in the database as estimated or nominal.

Collars have been checked against topographical surfaces – both original and mined and all are located within 1m or less of the topography at the time of drilling.

7.8.3Downhole Surveys

Downhole surveys are taken for all deeper RC holes but not for the shallower RC holes as the depth of the holes restricts the potential for hole deviation.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

7.8.4Logging

RC cuttings for each metre drilled were sieved and stored in chip trays for each drill hole. The cuttings were logged for:

•lithology;

•alteration;

•weathering; and

•structural features.

7.8.5Results

With 247 RC drill holes being completed since 1985, the results are too voluminous to be reported in this report. However, the results have been included in the geological modelling and Mineral Resource estimation process.

7.8.6Chip Recovery

RC drilling chips are no longer retained nor generally weighed. Sampling is completed using rotary splitters that are designed to take a specific sample of 2-3kg (which is weighed by the laboratory). Recovery is generally good. There is no relationship between recovery and grades. This was assessed recently to ensure grade was not lost through the fines and was found not to be a problem.

7.8.7Sample Length and True Thickness

The HVK deposit is not a tablet-style deposit, so true width calculations do not apply in this context. Holes commonly start within or do not exit the extent of the deposit.

7.9Operational Grade Control Drilling Campaigns, Procedures, Sampling, Recoveries and Results

Although this drilling is for grade control purposes, the close-spaced, dense RC drilling provides a comprehensive map of the grade distribution, which is used to drive modelling decisions outside the general operational grade control process.

The grade control data was not used in the Mineral Resource estimate due to the potential impact this close-spaced drilling would have on the estimate due to sample support issues; it was used to build the Resource domains. A separate, conditionally simulated grade control model is constructed to ensure the grade control data informs the model for planning purposes. The simulated nodes are reblocked up to the selective mining unit (“SMU”) size and then merged with the Mineral resource model to create a planning model as part of the site planning model update protocol. This ensures the grade control data was included into the planning model but does not adversely impact the Mineral Resource model.

7.9.1Drilling Methods

Operational grade control drilling is completed using RC drilling and is based on a grid of 8m x 6m. Holes are pattern drilled vertically to a depth of 30m.

Blast hole sampling represents only a small component of the grade control data and is only gathered when the RC rig is unavailable, or areas are too tight for the large RC rig.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

7.9.2Collar Surveys

Collars have been checked against topographical surfaces – both original and mined and all are located within 1m or less of the topography at the time of drilling.

7.9.3Downhole Surveys

Downhole surveys are not taken for shallow RC holes as the depth of the holes restricts the potential for hole deviation.

7.9.4Logging

Grade control holes are generally not logged.

7.9.5Results

With 247 RC drill holes being completed since 1985, the results are too voluminous to be reported in this report. However, the results have been included in the geological modelling process.

7.9.6Chip Recovery

No chip recovery methods are undertaken for grade control drill holes.

7.9.7Sample Length and True Thickness

The HVK deposit is not a tablet-style deposit, so true width calculations do not apply in this context. Holes commonly start within or do not exit the extent of the deposit.

7.10Hydrogeology

A total of 52 hydrogeological bores have been drilled across site over the history of the project. New bores are regularly drilled when old ones become in-operable due to mining impacts and age. Holes are installed by a dedicated Geotech diamond core rig. Currently, 32 of the 52 bores are monitored by the Geotechnical and Environmental departments.

7.11Geotechnical Data

Geotechnical data is gathered as part of the logging process (Section 7.7.4). A review of the core RQD measurements show a significant spread in RQD values indicating the ground is generally fractured and cannot be considered competent. There is no relationship between the RQD and gold, with gold grades found across all RQD percentages.

Geotechnical data is gathered to determine suitable rock mass and defect strength models to support current and future geotechnical reviews in Hidden Valley. The rock mass assessment completed indicates a good correlation between historic data and recent geotechnical drillhole information.

The rock mass and defect strength models developed are appropriate and suitable for use in HVK 7 and future slope design reviews.

Derived material shear strength properties include:

•Mohr Coulomb rock mass shear strength-isotropic;

•shear normal function strength-isotropic;

•defect shear strength – directional anisotropic; and

•3D geological strength index (“GSI”) model.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

7.11.1Drilling Methods

New geotechnical core was collected from diamond drill holes drilled from the surface with triple tube in 2019 FY20.

7.11.2Collar Surveys

In the past, a variety of methods have been used, including theodolites and standard GPS units. In all cases, the survey method was documented in the database. On the rare occasion, the drill hole collar has not been picked up and the collar retains the planned coordinates – this is documented in the database as estimated or nominal.

Collars have been checked against topographical surfaces – both original and mined and all are located within 1m or less of the topography at the time of drilling.

7.11.3Downhole Surveys

Downhole surveys are taken at 50m downhole intervals using single shot camera

7.11.4Logging Procedures

Geophysics drill hole logging was carried out to log the orientation of structural defects along each drill hole. Core logging and laboratory tests were carried out to evaluate the rock strength and rock mass strength in order to inform the HV7 Design. The logging captured, recovery, RQD and rock mass. Core photography was completed and compared with drill hole imaging done for each hole.

Core samples 20-25cm in length were selected and sampled for rock lab testing. Drill core data were correlated with mapping data where intersections of geological entities such as faults and contacts, were encountered. Among key data captured were:

•exposed bench face rock strength (“UCS”);

•GSI;

•rock mass weathering;

•groundwater condition;

•defect characteristic;

•joint roughness;

•infill strength;

•infill weathering;

•infill width (mm);

•joint persistence; and

•fracture frequency per metre.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

7.11.5Drilling Results

A total of eight geotechnical holes were drilled in 2019 to develop a geotechnical design for HV7 pit at Hidden Valley Mine. The drill holes are listed in Table 7-3, and their location is indicated in Figure 7-3.

Table 7-3: Geotechnical Drill Holes (2019)


Hole ID	East(m)	North(m)	RL(m)	Total Depth(m)
GT19DD001	63,953.33	74,883.03	2,534.48	250.0
GT19DD002	64,101.00	75,186.00	2,542.00	200.0
GT19DD003	64,062.38	75,508.26	2,563.30	220.0
GT19DD004	64,100.69	75,758.11	2,589.41	250.0
GT19DD005	64,250.66	75,219.73	2,636.62	377.1
GT19DD006	64,218.33	75,618.84	2,666.95	231.5
GT19DD007	64,445.05	75,413.06	2,713.55	410.1
GT19DD008	64,515.70	75,315.91	2,723.84	316.5
Total				2,255.2

Numerous consultants have been engaged to review the geophysical assumptions and models over the mine life, including Klohn Crippen Berger and Gecko consultants. Most recently, Cartledge Mining and Geotechnics have been engaged to provide this oversight.

7.12Commentary on Exploration

In the opinion of the QP, the quantity and quality of the logged geological data, collar, and downhole survey data collected in the exploration and infill drill programmes are sufficient to support Mineral Resource and Mineral Reserve estimation and mine planning for Hidden Valley as follows:

•drill hole logging meets industry norms for gold and silver exploration;

•there is no relationship between RQD results and gold grades;

•collar surveys were performed using industry-standard instrumentation at the time the drill programme was conducted;

•downhole surveys were performed using industry-standard instrumentation at the time the drill programme was conducted;

•recovery data from core drill programmes are acceptable;

•there is no relationship between recovery and grade results;

•geotechnical logging of drill core meets industry standards for planned caving operations;

•drill orientations are generally appropriate for the mineralisation style and the orientation of mineralisation for the bulk of the deposit areas;

•external reviews of the project have been conducted in the past by various industry experts, and their opinions have driven advancements and improvements in the project;

•the drilling patterns provide adequate sampling of the gold and silver mineralisation for the purpose of estimating Mineral Resources and Mineral Reserves;

•sampling is representative of the gold and silver grades in the deposit areas, reflecting areas of higher and lower grades; and

•there is +10 years of mining history.

In the QP’s opinion, no material factors were identified with the data collection from the drilling programmes that could significantly affect Mineral Resource or Mineral Reserve estimation for Hidden Valley.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


Figure 7-3: Location of Geotechnical Drill Holes (2019)
Source: Hiden Valley drill database


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8Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

8.1Sampling Method and Approach

Sampling intervals have varied between 1-2m for the exploration drilling and 1.5m for the grade control drilling. Review of the results has indicated that there is no apparent correlation between sample length and grade.

8.1.1Core samples

Sampling is conducted after all data collection is complete, verified, and quality control of core photographs undertaken. All data collection and sampling is conducted onsite at the Hidden Valley core processing facility, which includes a logging shed, core cutting shed, and storage areas. Sampling methods utilised in the various exploration programmes is summarised in Table 8-1.

All core collected during the CRAE drilling campaigns was collected at 2m intervals. Half core was then bagged and sent for assay at Analabs (then Pilbara laboratories) in Lae, PNG (Table 8-1).

Placer holes were also sampled at 2m intervals, regardless of geological boundaries or mineralisation styles. The core from these holes was not split and was analysed as full core through Astrolabe in Madang (Table 8-1).

Core from the AGF and Aurora drilling was sampled at 1m intervals, regardless of geological boundaries or mineralisation styles. Half core was dispatched to Analabs, in Lae for analysis (Table 8-1).

Harmony and the HVJV implemented standard procedures for sampling drill core in 2008, which adopt best practice to ensure quality assurance and quality control throughout core mark-up, digital core photography, geotechnical logging, and geological logging, through to core cutting, sampling and sample dispatch.

Sampling is currently carried out at 1m lengths, cut to geological boundaries (Table 8-1). Drill core is split using a core saw and half submitted for assay. The other half is kept for reference.

The half core sent for assay was bagged in labelled calico sample bags with the sample number scribed on an aluminium strip included in the bag. Samples are currently delivered to the independent operated ITS Laboratories Limited (“ITS”) facility on site.

8.1.2RC Samples

RC drilling has only been undertaken from 2016 after Harmony took over the operation.

Samples are collected in duplicate at 1m intervals via a rotary cone splitter, splitting samples down to approximately 2kg for assay.

The sampling procedure for the RC drill holes by Harmony was:

•calico sample bags are labelled;

•standard, blank or duplicate are assigned to every tenth sample;

•Standards to monitor sample preparation and analytical accuracy are inserted at random samples throughout the sequence;

•1m interval of sample is collected from the cone splitter off the cyclone;

•approximately 2-3kg of sample is collected in a calico bag;

•reject was originally collected in white poly-weave bags; however, this is no longer the case as it is no longer considered important based on the advanced stage of the mining operation;

•the drill hole interval, sample recovery and condition (wet/dry) were recorded in a sample book;

•samples were transported to the laboratory.

Whilst individual samples are not weighed at the rig, all sample bags sent for assay are weighed and the weights recorded in the drill hole database.


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Table 8-1: Summary of Laboratories and Sample Preparation by Exploration Programme

Exploration Programme

Parameter

1984-1986

1986-1988

1989-1990

1992-1993

1995-1996

1997-1998

1998-2016

2016-2020

Company

CRAE

CRAE / Minenco

CRAE

CRAE / Placer

CRAE / Minenco

AGF

MGC / MMJV

Harmony

Sample Preparation Laboratory

Astrolobe, Madang

Pilbara, Lae

Astrolobe, Madang

On site

Pilbara, Lae

Analabs, Lae

Intertek, Lae

ITS, on site

Analytical Laboratory

Astrolobe, Madang

Pilbara, Lae

Astrolobe, Madang

Pilbara, Lae

Analabs, Lae

Intertek, Jakarta

ITS, on site or Intertek, Lae

Sample Interval

0.5-1.2m, by geology / alteration

1.5m

Core Sample Size

Half PQ, HQ

Half HQ

Whole PQ/HQ

Half HQ

Half HQ/NQ

Half HQ/RC

1° Crush

Jaw crusher to nominal -5mm

Jaw crusher to nominal -10mm

Jaw crusher to nominal -2mm

Split

75% to coarse reject

2° Crush

3 times roll

Disc pulverise

3 times roll

Disc pulverise

Giving Coarse Reject

Crush to nominal -40# (425µm)

Crush to nominal -80# (180µm)

Crush to nominal -1mm

Crush to nominal -80# (180µm)

1° Split

Two A & B 300g

400g

Two A & B 300g

1kg

300-400g

500g

Rotary split, ~lkg

Pulverise to 90% passing

75µm

90µm

75µm

LM2 mill to -106µm

Gold Assay Methods

50g Fire Assay

30g fire assay + AAS finish

Silver (and copper) Assay Methods

Aqua regia digest, AA finish, multi acid digestions, high silver aqua regia digest and AA DL finish.


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8.1.3Grade Control Samples

Grade control samples are taken at 1.5m intervals down the hole. This equates to half the flitch height.

In the case of grade control sampling only, the sampling equipment is cleaned before and after each sample is taken. Collected samples are placed in a labelled plastic bag. Labels contain a blast name, drill hole number and sample number (e.g., 116DR001 114 C). The drilling operator is required to flush the blast hole with an air blast at the end of each sample before the sample bucket is removed.

8.2Density Determination

A total of 4,884 bulk density measurements have been taken over the history of the project. These measurements were taken over two continuous periods, the first being from 1986-1988 when CRAE measured 1,926 samples and the second from 1996-2012 when Placer, AGF, Aurora and Harmony measured 2,960 samples.

All samples were measured using the weight in air/weight in water method.

Throughout the period of mining additional grab samples have been taken and tested to ensure the original density values are still valid, to date this checking has supported the original assumptions.

Lithology and oxidation are considered reliable boundaries for the division of bulk densities, therefore the bulk densities assigned to the block model by modelled domain are shown in Table 8-2. The February 2022 estimate used Inverse Distance to estimate density values into the model based on the combined lithology-oxidation domains shown in Table 8-2.

Table 8-2: Density Results


Lithology	Oxidation	No. Samples	Bulk Density (g/cm3)
Metasediment / Schist	Fresh	368	2.70
Metasediment / Schist	Partially Oxidised	221	2.57
Metasediment / Schist	Oxidised	65	2.40
Granodiorite / Porphyry	Fresh	3,814	2.61
Granodiorite / Porphyry	Partially Oxidised	363	2.51
Granodiorite / Porphyry	Oxidised	53	2.31
Fill / Cover	-	0	1.80
Total		4,884

Density was checked both un-weighted and length weighted, and the difference was negligible; weighting was found to not be required.

There was no apparent relationship between bulk density and grade.

8.3Sample Security

Sample security has not historically been monitored.

During the HVJV drill programmes, drill core was delivered directly from the drill rig at the end of each shift by the drill crew to the logging shed. This compound is fenced and under 24-hour patrol.

Samples are collected in the core yard area and loaded onto a company vehicle for transfer to the lab where the samples are signed over to the lab. Samples are counted onto and off the vehicle to ensure all samples are accounted for.

All remaining core is retained at the mines core yard. Regular audits of the laboratory are conducted to ensure the quality of the sampling and analytical chain.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

8.4Sample Storage

Drill core is stored in a dedicated facility at the mine.

Pulps and crusher residues were returned from the laboratory to the core shed for long-term storage under direct supervision of Hidden Valley staff.

8.5Laboratories Used

Three different laboratories were used during the exploration at Hidden Valley. The laboratories used are summarised in Table 8-1. The reader should note that Pilbara laboratory underwent a name change to Analabs laboratory and later to Intertek.

The primary and a second independent laboratory were used to assay pulp duplicate samples.

Laboratories have all been independent. All of these laboratories were accredited laboratories (according to the accreditation requirements of the time), but these have not been recorded in the drilling data.

The onsite laboratory, Intertek, is accredited by Papua New Guinea Laboratory accreditation scheme for precious metal, alloy and ores fire assay and Atomic Absorption Spectrometry (“AAS”).

8.6Laboratory Sample Preparation

The laboratory sample preparation methods for core samples are summarised in Table 8-1 by exploration programme.

Sample preparation used for RC samples is as follows:

•receive 2-8kg drill sample,

•drying (<105°C),

•fine crush, 80% passing -2mm. Perform crusher quality control (“QC”) test 1 every 20 (“1:20”) 80% passing 2mm,

•rotary split down to 1.0-1.5kg,

•excess re-bagged and stored as residue,

•pulverise 1.0-1.5kg 95% passing 106μ. Duplicate pulp at 1:20. Perform pulveriser QC 1:20 95% passing 106μ,

•scoop 400g for analysis,

•excess re-bagged and stored as residue, and

•sub-sample sent for analysis.

Sampling at Hidden Valley has evolved over time from the first protocols of CRAE through to today. Over that time, a number of companies have conducted exploration, each with its own sampling process. MCG conducted sample heterogeneity testing in the late 1990s through Geostats (Pty) Limited (“Geostats”). The aim was to (Onley, 1999):

•evaluate the sampling and sample preparation protocols employed to date, and

•determine an appropriate sampling and sample preparation protocol for all future samples.

Geostats conducted the heterogeneity testing using “Fundamental Sampling Error” on four sample types – Hidden Valley High Grade, Hidden Valley Low Grade, Hamata High Grade and Hamata Low Grade.

Geostats recommended a process where 100% of 8kg sample (half core) be jaw crushed to a nominal 10mm, 100% then disc-milled to a nominal 600 micron size, a riffle split of 500g sub-sample be taken which is then pulverised to a nominal 75 micron in a puck mill, and a subsequent 50g sub-sample being taken for assay. The primary sample can vary between 3.5-8kg without significantly impacting the quality of the results (Onley, 1999).


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

8.7Assaying Methods and Analytical Procedures

A number of different analytical methods were used over Hidden Valley’s history. These are included in Table 8-1.

Core samples were analysed for gold, silver, copper, lead, zinc, arsenic, molybdenum, iron and sulphur. RC and operational grade control samples are analysed for gold, silver and copper where required.

The assay methods used by ITS Hidden Valley since 2019 are:

•gold was determined by 30g fire assay (single) with atomic absorption spectroscopy (“AAS”) finish. The detection limit is 0.01-100.00g/t, and

•silver and copper were analysed using aqua regia digest, AA finish, multi-acid digestions (two elements), high silver aqua regia digest and atomic absorption spectroscopy to detection limit (“AA DL”) finish. Detection limits for silver are 1-500ppm, and copper are 2-10,000ppm.

The methods used for both the gold and multi-element results are considered to be appropriate for the style of mineralisation.

8.8Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

Routine QC measures have been implemented in the various exploration programmes to check the precision and accuracy of analytical methods used by the laboratories. The checks involved the regular insertion of blanks, duplicates, and gold and silver standard reference materials (“SRMs”) into all batches of samples dispatched to the laboratory for analyses. These were implemented to various degrees for the early exploration campaigns; however, the details are not available. A significant amount of more recent drilling QAQC has supported the older drill hole results, and the reduced proportion of original drillhole data used in the Resource estimate has reduced the influence of this earlier drilling.

QAQC measures are employed by Harmony as part of the ongoing monitoring of RC and diamond drill samples submitted for assay. These protocols have been implemented since the start of Harmony’s involvement in 2008. The total number of QAQC samples submitted between February 2021 (previous geological model) and April 2022 (current geological model) are presented in Table 8-3.

Table 8-3: Number of QAQC Samples (2021/2022 Sampling)


Type	No.	Insertion Ratio (1:x)
Batches	880
Drill Hole Samples	92,356
Company QAQC Samples Inserted
QA samples	9,925	9
Standards	24,772	4
Field Duplicates	949	97
Blanks	1,887	49
Laboratory Internal QAQC Samples Inserted
Split of Pulps	4,723	20
Crushed Duplicates	4,163	22
Standards	11,515	8
Blanks	9,474	10
Gold High Grade	145	637
Gold Medium Grade	794	116
Gold Low Grade	146	633
Base Metal Standard	456	203
CRM	354	261
Note: Includes grade control samples.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

All assays results were checked and verified on a regular batch by batch basis by the Harmony Geology department personnel and the companies database administrator.

All assay data support Mineral Resource estimation with no restriction on confidence categories.

8.8.1Core samples

At each interval of 20 samples, a pulp Certified Reference Material (“CRM”) or gravel blank was included as a sample. The insertion rates of blanks, standards, pills and field duplicates for diamond attempt to achieve a ratio of 1 assurance sample for every 48 samples. This same rate is applied to the Resource development RC drilling but not to the grade control drilling.

A range of CRM’s were obtained from Geostats and inserted into the sample sequence by the logging geologist. The CRM standard assigned to a particular sample depended on the expected grade of the surrounding samples. Where possible, the grade of the standard was matched to the expected grade. The 75g pulp packets are removed from the sealed foil packet and placed in the corresponding calico sample bag. A photograph of the CRM standard name and associated calico bag sample identity is recorded and used to reduce uncertainty regarding samples mix-ups.

8.8.2RC Samples

A pulp CRM or gravel blank was included every 20th sample.

Blank material, initially comprising barren gravel, was inserted into the sample sequence for RC samples at a ratio of approximately every 49th sample for a total of 1,887 samples. The results to February 2022 indicated a small number of anomalous results. Investigation of these outliers found they were the result of mix-ups during the sample preparation, laboratory blanks show that there may be a minor smearing of grade at times, indicating potential inadequate cleaning of equipment between samples.

For RC Resource definition drilling, a field duplicate sample is taken from the splitter assembly every 50th sample. For the grade control drilling, the field duplicate samples are taken from the rotary splitter on the rig every 99th sample, this lower frequency is due to the significant number of GC samples taken.

A gold assay pill is also included every 50th sample along with the CRM standards and blanks.

8.8.3Laboratory Internal QAQC

Internal laboratory duplicates, following the crushing and pulverising stages, were carried out and reported in the batch results. These were captured in the database and reviewed as part of the QAQC checks. The number of internal laboratory added duplicates, standards and CRMs is presented in Table 8-3.

8.8.4Results

Turnaround times for samples were generally 1-2 days (out to 4) for most of the period covered. However, during 2020, turnaround times deteriorated due to equipment failures and COVID19-related issues. These included delays in the shipping of new parts and the availability of personnel due to travel restrictions. As a result, some samples were sent to Intertek, Lae, to alleviate the backlog on site. Ample turnaround at the time of writing is back to the acceptable contract time period

No bias is apparent in laboratory duplicates, pulp splits or repeats. Outliers are predominantly associated with repeats of samples in batches that experienced sample swaps or mix-ups. However, some outliers were due to the presence of coarse gold in the original samples.

A population of samples with poor repeatability of the low original assay with a high repeat was identified. However, the cause of this has not been determined.

A review of the QAQC performance of the CRM standards illustrates some outliers falling outside three standard deviations from the expected result; however, the majority of results fall within two standard deviations of the certified values. A review of CRM results outside the expected range found that most cases were related to sample mix-ups during the sample preparation or fire assay process. In general, the laboratory presented a tighter result when compared to the company standard results.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

8.9Comment on Sample Preparation, Analyses and Security

In the opinion of the QP, the sample preparation, analysis, and security practices, data collection, and quality are acceptable, meet industry-standard practices, and are sufficient to support Mineral Resource and Mineral Reserve estimation and mine planning purposes, based on the following:

•sampling intervals have remained fairly constant through the various exploration campaigns, and all have been equal to or less than 2m. There is no relationship between sample length and grade results,

•sample preparation for core and RC samples has followed a similar procedure since Harmony acquired Hidden Valley in 2008. This represents 64% of the drill hole meterage used in the current Mineral Resource estimate. The preparation procedure was in line with industry-standard methods,

•a sampling and sample preparation heterogeneity review was undertaken in the late 1990s and the recommendations were implemented,

•analytical methods for core and RC samples used similar procedures. The analytical procedures were in line with industry-standard methods,

•Harmony has used a QA/QC programme comprising blanks, SRM and duplicate samples since 2008. This represents 64% of the drill hole meterage used in the current Mineral Resource estimate. QA/QC submission rates were typical for the programme at the time the data were collected. Evaluations of the QA/QC data did not indicate any significant problems with the analytical programmes therefore the gold and silver analyses from the core and RC drilling were suitable for inclusion in Mineral Resource estimation,

•verification was performed on all digitally collected data on upload to the main database and included checks on assay data. The checks were appropriate and consistent with industry standards,

•sample security has relied upon the fact that the samples were always attended or locked in the on-site sample preparation facility. Chain-of-custody procedures consisted of filling out sample submittal forms that are sent to the laboratory with sample shipments to make certain that all samples were received by the laboratory,

•sample storage procedures and storage areas are consistent with industry norms, and

•very good mine-to-mill reconciliation on grade.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

9Data verification

Section 229.601(b)(96) (9) (i-iii)

9.1Databases

Data management into the various databases include the following:

•all production, Mineral Resource and grade control data are currently stored in an SQL database managed with a Datashed front-end,

•drill core was logged directly in the core shed into laptops using LogChief logging software with periodic integration to the database,

•initial collar surveys were uploaded into LogChief. A qualified surveyor provided the final collar pickups in comma-separated value (csv) format, and were directly uploaded into DataShed,

•downhole survey data were imported via *.csv files from the survey instruments into LogChief logging software and then uploaded into the SQL database via Datashed,

•density data were directly recorded into the LogChief logging software and then uploaded into DataShed, and

•assay data were received from the laboratory in digital format and were uploaded to the database using import templates.

All data uploaded to the database must pass integrity checks and reviews. User access to the database is controlled by a hierarchy of permissions controlled by database administrators, with oversight of data integrity by an external DataShed software specialist.

Historical assay data collated by CRAE were imported into the current database from an existing MS Access database. The process used by CRAE to transfer assay data into their database was not recorded.

Database checks were done by Harmony staff, who had oversight of database management and Mineral Resource estimation.

The database is regularly backed up, and copies are stored offsite and on Cloud-based services.

The data used in the latest geological model was exported from the site database via SQL queries. The files were exported from the database and saved to the working folders on the QPs computer.

9.2Data Verification Procedures

There has been no re-logging of the historical core, so lithology logs used for creating the geological and domain models have been taken as is.

All drilling data is validated using Micromine drill hole database validation tools and also Leapfrog Geo validation tools to ensure the data is of a standard suitable for modelling.

Any drill hole trace that looks suspect is assessed, and drill hole surveys that are obviously in error are excluded. All drilling is assessed for depth_to < depth from, assay or lithology depths > max_depth, coordinate errors where Eastings / Northings or RL are in obvious error, overlapping samples or drillholes. Any errors are assessed, checked and amended where possible.

Verification is also performed on all digitally collected data on upload to the main database and includes checks on surveys, collar coordinates, lithology, and assay data. The checks were appropriate and consistent with industry standards;


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

External Audits are regularly carried out on the operation as a part of Harmony Golds Annual Audit Rotation. Audits completed to date include:

•2013 Audit on Harmony Operations, which found no material issues and was endorsed by SRK,

•2015 Audit on the HV Operations, which found no material issues and was endorsed by AMC,

•2016 Technical Review on the HV Operations by AMC, which found no material issues,

•2016 Audit on the HV Mineral Resource by SRK, which found no material issues, and

•2019 Audit on the HV Operations, which found no material issues and was endorsed by Derisk.

9.3Limitations to the Data Verification

Controls and standards in place for the operation reduce limitations on the data verification process; any issues are found and corrected, resulting in improving reliability with time. The QP has not identified any critical limitations to the data verification process.

9.4Comment on Data Verification

The process of data verification for the Hidden Valley Mineral Resource model was performed by the QP, Mr Ron Reid (Group Resource Geologist). The QP believes that the database accurately reflects original sources and is adequate to support geological interpretations and Mineral Resource and Mineral Reserve estimation and in mine planning.

The QP has regularly visited the site and observed the drilling and sampling methods and protocols.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

Hidden Valley is a going concern with twelve years operational experience. The processing plant can be fined tuned based upon production and metallurgical history.

10.1Extent of Processing, Testing, and Analytical Procedures

Harmony and previous owners have conducted extensive metallurgical testwork programmes over the years, and process flowsheets have been developed for the treatment of the Hamata, Hidden Valley and Kaveroi ore deposits. These ore deposits were broadly classified into oxide, transition and primary ore types, which were subsequently metallurgically tested and evaluated.

Test work has been recorded and reported and covered both Hamata and Hidden Valley Kaveroi deposits.

10.2Degree of Representation of the Mineral Deposit

10.2.1Hamata

Ore composites, which represent Hamata oxide and primary ores spatially and vertically, were prepared from full PQ drill core and subjected to a suite of standard grindability tests. Only a single composite sample was used for most of the comminution testwork on the Hamata primary ore, although four ball mill work indices were conducted. This is insufficient to properly establish the ore characteristics, particularly when using a SAG mill as a primary mill.

Variability tests were also performed on several samples from within each ore zone to understand the consistency / variability of hardness of ore from within this pit. Variability tests only consisted of standard Bond tests and not the full suite of other tests. Tests on Hamata ore types included:-

•SAG mill amenability (Amdel advanced media competency tests);

•Impact crushing tests;

•UCS;

•JK Indices;

•abrasion;

•SG determinations (both true and acid rock drainage (“ARD”));

•rod and ball mill work indices;

•gravity gold leaching;

•flotation performance;

•cyanidation performance;

•oxygen uptake; and

•rheology.

10.2.2Hidden Valley Kaveroi

The following composites were prepared as part of a metallurgical testwork programme performed in November 2000 by AMMTEC Limited (Report No. A7313).

•Hidden Valley oxide;

•Hidden Valley transition;

•Hidden Valley fresh; and

•Kaveroi fresh.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

These composites were used for the majority of the preliminary testwork evaluation undertaken. Details of the composite sample preparation procedure can be found in the AMMTEC Limited, November 2000 Report No A7313. Tests on HVK ore types included:-

•SAG mill amenability (Amdel advanced media competency tests);

•impact crushing tests;

•UCS;

•JK Indices;

•abrasion;

•SG determinations (both true and ARD);

•rod and ball mill work indices;

•gravity gold leaching;

•flotation performance;

•cyanidation performance;

•oxygen uptake; and

•rheology.

10.3Analytical Laboratory Details

Analytical laboratories used during the feasibility studies for Hidden Valley and Hamata orebodies were all independent facilities and included Ammtec Limited, IML, Outokumpu, Newcrest laboratories,

The onsite Laboratory (Intertek) is used to analyse operational control and mass balance samples. In addition, most routine and ad hoc test work analyses is also completed by Intertek. The onsite laboratory, Intertek, is accredited by the Papua New Guinea Laboratory accreditation scheme for precious metal, alloy and ores fire assay and Atomic Absorption Spectrometry.

10.4Hidden Valley Test Results and Recovery Estimates

10.4.1Multivariable Recovery Model

The previous Hidden Valley Kaveroi GeoMet model/process was recently reviewed and updated. This review was commenced after a low correlation between plant performance and low-grade oxide ore in the recent past.

A three-month study was undertaken by HV Metallurgy from December 2019 to February 2020 to assess the suitability of utilising multi-variate (“MV”) regression for developing improved gold and silver recovery models at Hidden Valley.

Recent plant data (855 data points) was used in generating a best fit model for plant recovery for gold. The key independent variables include:

•gold head grade,

•mill throughput (tph),

•Ag/Au Ratio,

•oxide %, and

•clay %.

Due to insufficient recovery data points below 1g/t, a fixed tails grade of 0.20g/t has been applied for calculating recoveries below 1g/t mill feed grade.

Likewise, recovery has been capped at a maximum of 91.5% for the upper extremity to ensure model output generates a realistically achievable plant gold recovery. An MV regression model equation for gold was derived.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Plant data (582 data points) was used in generating a best fit model for plant recovery for silver. The key independent variables that gave the strongest R2 value include:

•Ag head grade,

•mill throughput (tph),

•Ag/Au ratio,

•oxide %, and

•sulphur %.

Due to insufficient recovery data points below 12.5g/t, a fixed tails grade of 4.62g/t has been applied for calculating recoveries below 12.5g/t mill feed grade. Likewise, recovery has been capped at a maximum of 83.5% for the upper extremity to ensure model output generates a realistically achievable plant silver recovery. An MV regression model equation for silver was derived.

10.5Commentary on Mineral Processing and Metallurgical Testing

Hidden Valley is a going concern with twelve years of operational experience. The processing plant can be fined tuned based on production and metallurgical history.

Test work has been recorded and reported and covered both Hamata and Hidden Valley Kaveroi deposits.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

11Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

11.1Geological Database

The data was extracted from the DataShed database on 7 December 2021.

11.2Global Statistics

A summary of statistics for Hidden Valley is presented, by domain, in Table 11-1.

A global analysis of the data shows that the natural cut-off for the data is approximately 0.2g/t Au, which was a good basis for developing a grade shell. Whilst this captures the mineralisation, it does not adequately define the higher grade portions, which, after years of mining, has shown it needs to be adequately constrained to prevent grade smearing. A high-grade core domain has been defined by the 0.4g/t Au isoshell.

A bivariate statistical analysis was undertaken between gold and silver. There is a moderate level of correlation between silver and gold at Hidden Valley, especially noted in the high-grade domain with a linear correlation of 0.58. The low-grade domain shows a stronger second population of high gold and lower silver has brought the linear correlation down to 0.43. There is a higher level of correlation at Kaveroi where the high-grade domain has a linear correlation of 0.71; the low grade likewise shows 0.69. The Kaveroi footwall domains shows a lower correlation of 0.57. The significant high gold – low silver population tends to be most common higher up and close to the Hidden Valley fault.

The multi-element statistics for the model are presented in Table 11-2.

11.3Geological Interpretation and Modelling Approach

An updated geological model was constructed for the Hidden Valley Kaveroi deposit, which included lithology, oxidation and mineralisation models.

The February 2022 (“202202”) model has been compiled using Leapfrog Geo 6.0 for geological modelling, Isatis.Neo 2020 for all geostatistical analysis and Vulcan v2021 for the Mineral Resource estimation and drill hole validation. The estimate was completed using the Localised Multiple Indicator Kriging (“LMIK”) methodology, which was assessed as the best option for this deposit.

The interpretation of the alteration has demonstrated a distinct relationship between alteration and mineralisation, but spatial modelling of these zones has proven difficult due to the complexity of the alteration geometry and its apparent association with structure.

Drilling since the completion of the last geological model has led to only minor modifications to the previous model and generally confirmed the previous interpretation.

Wireframes were constructed for lithology, oxidation, estimation lodes and acid rock drainage (“ARD”). The domains are graphically presented in Figure 11-1, Figure 11-2, Figure 11-3 and Figure 11-4.

11.3.1Lithological Domains

Lithological domains are based on the granodiorite and the overlying metasediments and schist (Figure 11-1). Minor wedges of granodiorite within metasediment and metasediment within granodiorite, proximal to the Kaindi contact, were modelled in 2012, and these have been carried over. Additionally, porphyry domains have been modelled based on available logged intersections, and in general, these are thin and difficult to correlate; whilst they do affect grade the impact appears minor. They have not been used as a separate estimation domain in the model. The lithological domains are primarily used to assign bulk density and ARD types into the model.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Table 11-1: Summary of Gold Statistics By Domain


			Au (g/t)							Ag (g/t)
Domain	Code	Data Type	No. Samples	Min	Max	Mean	SD	Var	COV	No. Samples	Min	Max	Mean	SD	Var	COV
Hidden Valley Low Grade	1000	Raw	20,446	0.010	138.0	0.75	2.99	8.93	3.98	20,446	0.010	2,000	12.41	42.11	1,773	3.39
		Naïve Composite	7,859	0.010	71.7	0.75	1.98	3.93	2.63	7,859	0.010	1,026	12.55	29.23	854	2.33
		Declustered	7,859	0.010	71.7	0.74	1.91	3.64	2.58	7,859	0.01	1,026	11.07	26.76	716	2.42
		Top-cut	7,859	0.005	25.0	0.74	1.57	2.45	2.12	7,859	0.05	200	12.04	21.70	471	1.80
Hidden Valley High Grade	1100	Raw	24,240	0.010	431.0	2.11	6.76	45.70	3.20	24,240	0.01	4,185	31.43	83.26	6,932	2.65
		Naïve Composite	8,969	0.010	218.9	2.10	4.69	21.96	2.23	8,969	0.01	1,961	31.51	60.58	3,670	1.92
		Declustered	8,969	0.010	218.9	1.87	3.90	15.23	2.09	8,969	0.01	1,961	27.79	51.37	2,638	1.85
		Top-cut	8,969	0.005	45.0	2.05	3.72	13.86	1.81	8,969	0.05	350	30.42	45.60	2,079	1.50
Kaveroi Low Grade Domain	2000	Raw	31,925	0.010	148.0	0.67	2.33	5.44	3.48	31,925	0.01	5,780	15.71	72.10	5,198	4.59
		Naïve Composite	10,592	0.010	61.5	0.68	1.62	2.63	2.39	10,592	0.01	2,600	16.11	53.19	2,829	3.30
		Declustered	10,592	0.010	61.5	0.66	1.60	2.55	2.42	10,592	0.01	2,600	14.99	52.60	2,767	3.51
		Top-cut	10,592	0.005	25.0	0.67	1.40	1.97	2.10	10,592	0.05	300	14.91	31.44	989	2.11
Kaveroi High Grade Domain	2100	Raw	19,968	0.010	133.7	1.71	4.48	20.10	2.63	19,968	0.01	4,000	33.47	100.26	10,053	3.00
		Naïve Composite	6,605	0.010	59.9	1.68	2.95	8.73	1.76	6,605	0.01	1,958	33.44	70.84	5,018	2.12
		Declustered	6,605	0.010	59.9	1.67	2.99	8.94	1.79	6,605	0.01	1,958	33.07	75.34	5,677	2.28
		Top-cut	6,605	0.005	40.0	1.67	2.82	7.93	1.69	6,605	0.05	340	31.44	46.76	2,186	1.49
Kaveroi Footwall Domain	3000	Raw	5,750	0.010	80.0	0.65	2.24	5.03	3.46	5,750	0.01	1,290	15.15	48.27	2,330	3.19
		Naïve Composite	2,010	0.010	33.3	0.63	1.42	2.01	2.25	2,010	0.01	428	14.75	29.81	889	2.02
		Declustered	2,010	0.010	33.3	0.63	1.65	2.71	2.61	2,010	0.01	428	14.85	31.31	980	2.11
		Top-cut	2,010	0.005	10.0	0.60	1.00	0.99	1.66	2,010	0.05	160	14.02	23.77	565	1.70
Kaveroi Big Red Domain	4000	Raw	1,589	0.01	354.8	2.72	13.07	170.70	4.80	1,589	0.01	8,120	80.79	322.86	104,237	4.00
		Naïve Composite	570	0.01	98.8	2.56	6.84	46.85	2.68	570	0.01	1,495	72.70	173.43	30,077	2.39
		Declustered	570	0.01	98.8	2.70	7.61	57.91	2.81	570	0.01	1,495	77.09	186.45	34,765	2.42
		Top-cut	570	0.01	35.0	2.34	4.94	24.37	2.11	570	0.05	550	61.42	114.10	13,019	1.86
Notes: SD - Standard deviation, COV - Coefficient of variation


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Table 11-2: Multi-Element Statistics for the Geological Model


			Model Statistics					Top-cut
Element	Unit	No. Samples	Min	Max	Mean	SD	Variance	Max	Mean	SD
As	ppm	49,671	0.005	4,275.00	52.07	150.80	22,755.00	1,500.00	50.82	132.20
C	%	49,671	0.005	10.44	0.07	0.29	0.08	4.50	0.07	0.28
Cu	ppm	49,671	0.005	3,460.00	47.17	75.51	5,701.00	1,000.00	46.89	69.70
Fe	ppm	49,671	0.005	143,900.00	3,139.00	11,227.00	126,038,546.00	66,000.00	3,135.00	11,195.00
Mn	ppm	49,671	0.005	133,638.00	982.30	2,353.00	5,536,414.00	24,000.00	972.10	2,160.00
Pb	ppm	49,671	0.005	31,765.00	73.53	336.80	113,455.00	5,000.00	71.67	275.20
S	%	49,671	0.005	9.51	0.13	0.46	0.21	4.00	0.13	0.46
Zn	ppm	49,671	0.005	17,266.00	142.50	456.50	208,368.52	5,500.00	139.50	393.10
Notes: SD - Standard deviation


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


Figure 11-1: Lithological Domains in the Hidden Valley Geological Model
Source: HiddenValley202202_resource_report_Final_SAMREC_Format
Figure 11-2: Oxidation Domains in the Hidden Valley Geological Model


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea


Figure 11-3: Grade or Lode Domains in the Hidden Valley Geological Model
Source: HiddenValley202202_resource_report_Final_SAMREC_Format
Figure 11-4: ARD Domains in the Hidden Valley Geological Model
Source: HiddenValley202202_resource_report_Final_SAMREC_Format


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

11.3.2Oxidation Domains

Oxidation domains have been based on the logged oxidation states with checks made of historical drillholes where continuity of sectional interpretations did not match the logged oxidation (Figure 11-2). A surface was modelled for the total oxidation domain (Base of Complete Oxidation (”BOCO”)), meaning that anything above this surface is considered to be completely oxidised. Totally oxidised rock is identified on the basis of complete oxidation and destruction of all sulphide minerals.

A surface was also modelled for the partial oxidation domain (Top of Fresh Rock (“TOFR”)), meaning that anything above this surface but below the total oxidation surface is considered to be partially oxidised material.

Partially oxidised rock is a mixed oxide sulphide zone with oxidation affecting parts of the rock groundmass. Any material below the top of fresh rock surface is considered fresh rock; however, a zone of fracture oxidation has been logged but not modelled. Fracture oxidation is where oxidation occurs only along the fractures in the rock and does not affect the rock groundmass.

The model was built using implicit modelling in Leapfrog Geo 6.0; the topographical surface was offset to the contact points for the BOCO surface, and the BOCO surface was then offset to the contact points for the TOFR surface. This process ensures the oxidation surfaces are modelled consistently across the model extents, and where contact details do not exist, the average offset distance is used.

11.3.3Lode Domains

The dimension of the Hidden Valley lode is approximately 800m along strike, 500m down-dip and 100m thick and strikes 130° and dips 40° to the northeast.

The Kaveroi lode is about 800m along strike, 400m down-dip and 300m thick and strikes 155° and dips 65° to the east northeast. The ore body is constrained in the footwall by the Hidden Valley Fault and in the hanging wall by the Granodiorite – Metasediment contact. It is within this volume that the deposit’s grade shells have been modelled.

The current estimate uses a 0.2g/t cut-off modelled using implicit modelling (“IM”) of the 0.2g/t indicator in Leapfrog Geo 6.0. This low-grade cut-off was an imposed boundary for the Hidden Valley and Kaveroi lodes as a way of constraining the metal within the hanging wall of the deposit. The grade continuity within these broad low-grade domains is erratic, whilst the continuity of high-grade domains is better.

To this end, the halo mineralisation was estimated with a high-grade yield designed to prevent the metal being overstated in the estimation. The high-grade internal domains have been modelled using implicit modelling of an indicator based on a 0.4g/t cut-off which comprises the main portion of the orebody. Mineralised domains are modelled using both grade control data and resource development data. Ranges and a nugget variable utilised in generating the IM domains are based on the average 30% nugget of variograms modelled over time for the HV dataset.

The mineralised domain interpretation (Figure 11-3) is considered a robust estimation constraint for probabilistic grade estimation approaches and allows for effective modelling of recovered Mineral Resources, including internal dilution.

The high-grade core domains were removed in the past to simplify the modelling process but were re-established based upon a nominal 0.4g/t cut-off after production showed that without them, the sporadic high grades found within the outer halo contributed to an overstatement of metal in these areas. The 202202 model continues the Kaveroi footwall domain based on the footwall portion of Kaveroi below the Darby Fault. This fault causes a noticeable and significant offset in the grade of the deposit.

11.3.4Acid Rock Drainage (“ARD”) Domains

An ARD type has been assigned within the block model based on the use of Sulphur (S%) and Carbon (C%) as proxies for the estimation of Maximum Potential Acidity (“MPA”) and Acid Neutralising Capacity (“ANC”). The relationship between the proxies and ARD type are as follows:

•MPA = S% x 30.6;

•ANC = (C% x 81.67) x 1.2 + 20; and

•Net Acid Producing Potential (NAPP) = MPA – ANC.


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			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

The criteria used are listed in Table 11-3, and the representative spatial distribution of the ARD types is shown in Figure 11-4.

Table 11-3: ARD Type


ARD Type	Code	Criterium
Fill	0	Waste Back Fill
Barren	1	Metasediment with S% <= 0.2
NAF1 High ANC	2	Granodiorite with NAPP <= -75
NAF Low ANC	3	Granodiorite with NAPP between -75 to 0
PAF2 Low Capacity	4	Metasediment with S% between 0.2 to 1.0
		Granodiorite with NAPP between 0 to 10
PAF Low Capacity	5	Metasediment with S% >/= 1.0
		Granodiorite with NAPP > 10
Notes: 1. NAF = Net acid forming, 2. PAF = Potential acid forming

This ARD model is then combined with a rock hardness model to generate a set of material types used in the mining process. The hardness model has been built in Leapfrog Mining software using RQD, Recovery % and a clay alteration index. The results were combined into a series of nested domains and then used to classify a material field in the planning model.

11.4Exploratory Data Analysis

A total of 1,586 drill holes for 275,491m were utilised in the evaluation of the Hidden Valley Kaveroi deposit. Drilling was coded with the geological and mineralisation models in Vulcan and run-length composites generated for gold and silver before exploratory analysis was undertaken.

The data was declustered, and duplicates were removed to ensure the composite table was representative prior to analysis. The statistical analysis included assessment of outliers, bivariate statistical studies and the generation of indicator statistics.

The statistical analysis included assessment of outliers, bivariate statistical studies and the generation of indicator statistics. An assessment of RC versus diamond drilling was made to ensure there was no significant difference between the RC data and the diamond data. SRK completed an in-depth study as part of their review of the resource. Results indicated no significant difference between RC grades and the diamond core grades within a 10m radius.

11.5Composites

The coded drill hole data was composited to 4m lengths, based on the predominant sampling lengths of 1m, and 2m and an SMU size of 12m x 12m x 3m. The QP selected the 4m composite length as most appropriate for the data as the variance stabilises at this length. In addition, a 4m composite is compatible with the 3m grade control composites so that both sets of data may be used in estimations. The composites were flagged for mineralised domain, oxidation and lithology. Compositing to 4m reduces the sample variance whilst maintaining an adequate amount of sample for estimation (Table 11-1).

11.6Decluster Analysis

In the past, declustering has been accomplished using the cell declustering methodology in Vulcan and Isatis. However, the process was not deemed to give satisfactory results. Therefore, for this geological model, declustering has been accomplished using kriging weights. Kriging was completed using a specific declustering estimate based on the 4m composite file and the standard estimation domains.

The declustered statistics for gold and silver are presented in Table 11-1. Cellular declustering generally shows higher weights than the kriging, especially in the higher grade domains The waste domain has significantly higher kriging weights than the cellular declustering, but as this domain was not estimated for gold or silver, this is not considered significant.


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11.7Diffusivity and Proportional Effect

Diffusivity tests how well grade is connected across the domain. A diffuse orebody is one where different bins of grade are connected to others, creating a smooth gradation, from high grade to low grade. Diffuse orebodies can be estimated with simple linear estimation methods like Ordinary Kriging (“OK”) and Inverse Distance. Non-diffuse orebodies (sometimes referred to as mosaic-type orebodies) are not smooth; high grades and low grades are found adjacent to each other without a gradational pattern between them. A mosaic-type orebody does not estimate well when linear estimation types are used, in these cases, a non-linear method such as Indicator Kriging or Conditional Simulation must be used.

As the Multiple Indicator Kriging (“MIK”) model is to be localised using the localised uniform conditioned (“LUC”) method of Abzalov (2006) it is necessary to have a generally diffuse model, in order to ensure the representivity of the DGM and Gaussian transform. A diffusivity test was run in Isatis using omnidirectional indicator variograms based on a group of five indicators (0.1, 0.2, 0.5, 1.0 and 2.0g/t for gold and 1, 2, 5, 10, 20g/t for silver). This indicates the domains are diffuse (grade moves continuously from one bin to another) and thus the Gaussian tests required are valid.

The proportion effect is a test of variability against grade, with a positive result indicating that variability increases with grade. As a precious metal deposit this is expected. The results showed a strong correlation between mean grade and standard deviation, i.e., the proportion effect does indeed occur. Where the proportional effect is shown to exist, the use of traditional “raw“ variograms is not advised. The best way to deal with this to ensure a more robust estimate is to use correlograms for the variography and these were used here

The HVK is both diffuse and shows a strong proportional effect. This means that a variety of methods such as OK and uniform conditioned (“UC”) appear to be appropriate for this deposit, but care was taken when constructing the variograms to ensure representivity.

Moreover, the mineralisation at HVK tends to show mixed populations that indicate higher grade bins have a different orientation to the lower grade halo. This dual population is an artefact of the stockwork breccia that accompanies the precipitation of the mineralisation and requires MIK to handle effectively.

11.8Contact Analysis

A domain boundary contact analysis was completed using Micromine (normal distance to wireframe) in order to understand the nature of the boundaries between the different estimation domains. The domain boundaries are relatively arbitrary, so one would expect the boundaries between the domains to be relatively soft. The domains are based on gold, and the gold was found to be soft between the different domains; however, the silver tends to display hard boundaries between the high and low-grade domains. This is believed to be a product of the domains being gold-based; therefore, silver was still estimated with soft boundaries. This was the case for both the Hidden Valley and Kaveroi deposits.

There is a lack of meaningful sample data in the Kaveroi footwall domain around the contact with any specific domain, so an open domain was used. This hampers detailed analysis as the data that is available indicates that there is a soft contact between inside and outside. As the domain boundary is arbitrary this is expected; however, it is known that the contact between Kaveroi footwall and Kaveroi is hard – being a fault, so for this reason, a hard contact has been used.

11.9Grade Capping / Upper Cut Determination

Top cuts were determined using statistical analysis, specifically analysing where the histogram breaks down and assessing that point against the data distribution in 3D, the metal content of the cut samples and the 99th percentile.

An analysis of the top-cut was done for each of the domains using the Micromine2021 Top-cut Analyser. The resulting top-cut was then evaluated against the populations (Table 11-1).

Top cuts were determined from exploration data only, and where possible top cuts remove less than ~10% of contained metal within the domain. Only the five domains to be estimated were assessed at this time, the final top cuts are tabulated in Table 11-4.


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Table 11-4: Top-cuts Applied by Domain


		Top Cut Applied
Domain	Code	Au (g/t)	Ag (g/t)
Hidden Valley Low Grade	1000	25	200
Hidden Valley High Grade	1100	45	350
Kaveroi Low Grade Domain	2000	25	300
Kaveroi High Grade Domain	2100	40	340
Kaveroi Footwall Domain	3000	10	160
Kaveroi Big Red Domain	4000	35	550

The post top-cut domain statistical analysis shows the domains are less strongly skewed. While they only contain low to medium grades, the Variation Coefficient (“COV”) variable indicates the domains are robust. Ideally, the COV should be below 1.2, but as the estimation method is a MIK estimate, these domains are fit for purpose. A review of the location of the top-cut samples in relation to the orebodies shows that they form no significant population or grouping and are outliers.

Multi-element top cuts were completed using Micromine2020 Top cut Analyser. The top-cuts used, and the resultant geological model statistics are presented in Table 11-2.

11.10Estimation / Interpolation Methods

MIK is considered an appropriate estimation method for both Hidden Valley gold and silver based on the over printing populations and nature of the mineralisation. Indicator thresholds and intra-class statistics were therefore required to enable the grade estimation. These thresholds have been selected to ensure adequate discretisation of the data population, with additional high-grade bins created to estimate the higher grade portions of the distribution adequately. The 202202 estimate was for gold and silver, completed on 4m composites using indicators from the high-grade domains only. The Kaveroi Footwall silver estimate utilised the indicators taken from the Kaveroi domain due to a lack of sample. Kaveroi Big Red domain was estimated using ordinary kriging.

The 202202 estimate did not update the multi-element estimates. There has been no change in data since the 201912 estimate, and so the 201912 model remains current for multi-element estimates, including copper, lead, zinc, iron, arsenic, manganese, sulphur and carbon. All these elements were estimated using OK and utilised in the geometallurgical model to inform the waste rock classification. There is a significant lack of data in many areas of the deposit so the possibility of domaining was limited, therefore, a global estimate was used.

11.11Stationarity

A series of grade swath plots of mean grade were generated to test for domain stationarity. The results show that there is very little drift in most of the domains, and any drift present was handled through search parameters, staged estimation and structural domaining


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11.12Variography

The variography was modelled using Isatis.Neo 2021 geostatistical software. Rotations are reported as geological notations (Strike, Dip, Pitch) with the Y, X and Z axis also referred to as major, semi-major and minor axes respectively.

Variography was generated for both the gold and the silver for all the Hidden Valley estimation domains. The low-grade domains included both internal high-grade and low-grade halo data to ensure a robust model, whereas high-grade domains used only high-grade domain composites. A complete set of indicator variograms (1 of the 16 thresholds) were modelled with the residual thresholds calculated using linear interpolation for intermediate indicators.

The variography is based on 4m downhole composites generated as run length composites in Vulcan and imported into Isatis. High-grade cuts and declustering weights were applied before generating the variograms. Variograms were modelled to ensure consistency between grade bins to reduce the chance of order relations issues.

In addition to the indicator variography and the global Gaussian variograms calculated on the resource development dataset, variography was completed on grade control dataset also. These variograms were then normalised to the resource dataset variance and used in conjunction with past production to tune the global change of support. A correlogram was also modelled for all domains.

The resource development drilling was used to create global Gaussian variograms and back-transformed results for gold and silver respectively. The variography has been generated orientated consistently with the dip and plunge of the zone interpretation.

The nugget for the gold and silver variograms (as modelled using downhole variograms) varies between 25% for the lower grade indicators to 60% for the higher grade indicators with the bulk of the nugget around the high 30s to low 40s for both gold and silver. This is consistent with modelling done across the deposit as part of the grade control process which finds a nugget around 40% as being the norm. Check variography using both the correlogram and Gaussian transformed data were completed to check and validate the nugget, total variance. As a spatial measure against that modelled in the indicators, these investigations supported the reported variography.

The OK localising estimate and the Kaveroi Big Red domain were modelled using the correlograms for both gold and silver.

Grade control drilling variograms were constructed for Hidden Valley and Kaveroi gold and silver. It is evident when comparing the grade control variograms against the resource development variograms that there has been a shift in the nugget and the sill proportions within the variography, particularly the reduced ranges for each sill component. This has a significant impact on the mining selectivity, and for this reason, the grade control variograms were normalised to the Resource Definition variogram variance and utilised in the change of support assessment.

11.13Block Model and Estimate Parameters

The Hidden Valley Kaveroi block model comprises estimated grades for Au and Ag.

11.13.1Estimation Techniques

LMIK utilises the linear relationship inherent in OK to rank blocks by grade, into which the estimated proportions of the non-linear MIK model are written. The MIK panel estimates are localised in Isatis using the LUC process described by Abzalov (2006) into an LMIK model at the SMU resolution. This process should combine the strengths of both methods resulting in a good global estimate that is locally robust, and results in a model with one simple grade estimated field, which simplifies the mine planning process. The average grade of the LMIK panel should match the MIK panel estimate.

LMIK involves the creation of two separate models, an MIK model into larger panels and an OK model into SMU size blocks. These two models are then merged into a single SMU-sized block model with a single gold field. The same process is followed for both the gold and silver estimates. The LMIK process works well; however, the widely spaced drilling at Hidden Valley and Hamata causes a data resolution issue. This impacts the reliability of the LMIK resource at the mining scale due to the very large parent blocks that are estimated.


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This impact can result in some significant local variation between the resource model (on which the long-term planning is conducted) and the grade control model, which is modelled at mining selectivity.

11.13.2Block Model

The HVK Mineral Resource model has been constructed from several different models; two 48m x 48m x 3m MIK panel models (one each for gold and silver), and two 12m x 12m x 3m OK models (again one each for gold and silver). The MIK models were sub-blocked to the SMU size against the domain boundaries for resolution. Later these were used to calculate a proportion of the panel within the domain, and tonnages were adjusted accordingly.

The parameters used in constructing the block models are shown in Table 11-5. The final model was the LMIK model at a block size of 12m x 12m x 3m, used to create the reserve model.

Table 11-5: Block Model Extents


	MIK Block Model Extents			OK and LMIK Block Model Extents
Variable	X	Y	Z	X	Y	Z
Minimum (Origin Centroid)	63,008	74,704	2,000	63,008	74,704	2,000
Maximum	64,832	76,336	2,900	64,736	76,336	2,900
Extents	1,824	1,632	900	1,728	1,632	900
Parent Block Size	48	48	3	12	12	3
Sub Block Size	12	12	3	12	12	3
No. of Blocks	39	34	300	144	136	300
Rotation (Bearing/Plunge/Dip)	90	0	0	90	0	0

11.13.3Interpolation Parameters

Grade estimation within the domains was undertaken by both MIK and OK estimation based on 4m composites of gold and silver. Kriging parameters were determined from the variography, and a sample search selected based on neighbourhood testing and sample support. The MIK estimate formed the basis for the LMIK estimate; the OK estimate provided the grade ranking estimate.

Grade was generally estimated within 1-2 passes to fill all blocks within the deposit, and a third pass was utilised where required. The OK estimate utilised parameters designed for a more local estimate. The OK estimate was used for ranking purposes only. The estimation domains were estimated with restricted internal soft boundaries but hard external boundaries. The low-grade halo estimate had a high-grade yield limit applied of 5gpt gold and 50g/t silver over a distance of 40m (subject to search ellipse parameters). This was to ensure isolated high-grade composites were not overly influencing the low-grade halo estimate. A discretisation of 4x4x2 was used for the MIK estimate, and the OK estimate used 3x3x2.

11.13.4Change of Support

A change of support was applied, which produced a grade estimate reflecting the anticipated mining selectivity. The MIK estimate was into panels of 48m east x 48m north x 3m in RL (large enough for a robust estimate): However, the SMU is 12m x 12m x 3m. The SMU was estimated by applying a two-staged indirect log-normal\affine change of support methodology.


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The change of support coefficients applied during the modelling are calculated through an iterative process comparing the MIK estimate against discrete Gaussian change of support models (“DGM”) built in both Isatis and Vulcan using grade control data and comparison against past production. The final change of support coefficients applied to the Hidden Valley orebody estimates are:

•Hidden Valley LG gold = 0.20;

•Hidden Valley HG gold = 0.12;

•Hidden Valley silver = 0.20;

•Kaveroi LG gold = 0.20;

•Kaveroi HG gold = 0.14; and

•Kaveroi Silver = 0.19.

The comparative grade tonnage curves and sample data were prepared comparing the MIK estimate against the DGM. A comparison of the global change of support indicates the MIK estimate is robust and reproduces both the grades and the tonnages for each domain.

11.13.5Result

The block model has generated an acceptable model and resulted in a minor correction to the gold grades. This updated model does not result in a significant update to the Mineral Resource; rather, it incorporates additional data into the estimate and attempts to model the internal variability better.

The total grade and tonnage values for the entire unmined model (classified and unclassified) and classified material are plotted in Figure 11-5 and Figure 11-6 for gold and silver, respectively. This demonstrates that there is a large amount of mineralised material at Hidden Valley that has the potential to be upgraded. However, a significant portion of the material is under-drilled and requires substantial drilling to upgrade. The material that has been classified indicates the higher confidence portions of the Mineral Resource.

11.14Model Validation

Validation was completed on both the OK/MIK parent models and the LMIK model. Validation included visual and statistical validation, swath plots, validation against past mining and validation against the input data. All tests indicate the current model faithfully maps the grade distribution and is robust enough for general use.

Grade tonnage curves show that the localised MIK closely matches the original informing MIK estimate, indicating the localisation step has not adversely impacted the informing estimate.

A visual assessment was carried out by generating a series of charts for each lode comparing the composite grades against the LMIK estimate. An on-screen, visual assessment was made by comparing the block grades against the informing composites. Visually, there is good grade mapping between the composites and block grades, and a good representation of grade distribution for gold and silver in the MIK model.

A series of validation swath plots have been compiled for the model to compare the LMIK estimate against the informing composites. The swath plots are generated along eastings, northings and RLs and compare the estimated blocks against the naïve and declustered composite grades for gold and silver. The plots show that the grade estimate faithfully replicates the informing grades with an acceptable level of grade mapping. A good correlation occurs between the declustered composite grades and the estimated grades.

Scatter plots are generated that compare the Au:Ag bivariate statistics against the estimated grades to ensure acceptable levels of correlation were maintained. The average grades between the weighted composites and the model were less than 10% different. There was a drop in correlation in the estimate relative to the composites of approximately 12%, which is considered acceptable. The model was compared against past production to test whether the model correctly maps the production profile, the results were found to be acceptable.


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11.15Density (Specific Gravity) Assignment

A description of the density measurements and determination is provided in Section 8.2. The densities used by domain are presented in Table 8-2.

11.16Mineral Resource Evaluation

The HVK Mineral Resource forms part of the Hidden Valley Operation in PNG and has been operating for more than ten years. It has a well-known and defined set of operating parameters and costs.

Mining parameters and operational constraints are fully disclosed in the annual reports and SOX Form 20-F compliance documents released by Harmony every year. These parameters were used to generate a whittle shell based on a gold price of USD1,546/oz and a silver price of USD22.35/oz at assumed site costs and were used to constrain the model.


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Figure 11-5: Graph of Grade Tonnage Curve for Gold

Figure 11-6: Graph of Grade Tonnage Curve for Silver


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The reporting cut-off of 0.65g/t gold is based on assessing a profitable cut-off assuming all blocks around each block are mined. Therefore, all unmined ore above 0.65g/t gold within the USD1,500/oz whittle shell is considered a Mineral Resource. Not all of this material is included in the Mineral Reserve figure as additional constraints such as production rates, AMD considerations, and TSF capacity combine to impact what is mined on a year-by-year basis. Whilst there is an expectation that the entire Mineral Resource will be mined, the realities of the production environment mean some material may not be extracted.

11.17Mineral Resource Classification and Uncertainties

The HVK model was classified using a combination of geological continuity, model robustness, grade continuity and estimate robustness. These parameters were used to complete a series of wireframes that were then used to hard code the Mineral Resource classifications. The April 2022 classification wireframes have been slightly updated to capture some newly delineated grade, but this has had an overall minor impact on the global Mineral Resource. As new data comes to hand, the extents are reviewed, and the wireframes are adjusted as required.

The economic and cost assumptions for the Mineral Resource reporting include metal price, recovery and cost assumptions:

•constraining pit shell. The maximum undiscounted cash flow pit using a USD1,500/oz gold price has been used to constrain the Mineral Resource, and

•cut-off grade calculations. The Mineral Resources are reported using a fixed grade cut-off based on a profit algorithm that approximately equates to a marginal ore cut-off grade of 0.65g/t Au. The profit algorithm takes account of metal price, grade, ore processing route, recoveries and costs. Metal price assumptions are USD1,546/oz gold and USD22.35/oz silver and a 0.73 USD:AUD exchange rate.

The Mineral Resource has been classified into Measured, Indicated, and Inferred after assessing the following and taking into consideration if the model has been informed by new geological information:

•drill hole spacing,

•style of mineralisation,

•data quality and QAQC,

•geological continuity,

•grade continuity, and

•mining selectivity and scale of mining.

The overall classification wireframes based on these remain unchanged from previous years. The location and classification of the Mineral Resources is shown in Figure 11-7.

The Mineral Resource includes broken ore stockpiles (as Measured Mineral Resources) and after mining depletion. The HVK Mineral Resource does not include Measured material as close-spaced grade control drilling is required to move the material into the Measured confidence bracket.

However, the grade control drilling is rarely far enough ahead of the advancing mining face to make a Measured declaration viable. Thus, Measured material comprises only broken stockpile tonnages previously mined.

The potential impact of anomalous data is controlled through the exclusion of some holes; holes that were obviously misplaced or had obvious survey issues that could not be corrected were excluded from the resource.

Given that a significant majority of the drilling into the deposit is historic, it was impossible to exclude historical drilling from the dataset. The assay methods used have changed little since drilling started, and the QA data indicates the sampling methods are robust enough to include historical data in this model.

There is an inherent geological risk in all geological and Mineral Resource Models due to the size of the sample and the drill spacing. This risk has been reflected in the Mineral Resource classification process.


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However, the geological model is considered robust as the geology is well understood. The structural model continues to evolve, and the structures' impacts on day-to-day mining are constantly monitored, but it is not considered overly material to the Mineral Resource.

Estimation risk was assessed by comparing the LMIK estimate with the MIK panel, the OK localising estimate and an LUC estimate.

The LMIK estimate plotted against the OK estimate indicates that the MIK estimate is robust and better represents the higher grades than the more smoothed OK estimate. The grade tonnage curves from both estimates replicate each other, indicating no significant estimation issues; the OK estimate shows some additional smoothing related to the variograms and high nugget. As we mine deeper into the deposit, the decreasing drill hole coverage increases the estimation risk, especially at the local scale. Additional drilling will be required to mitigate this risk.

A LUC estimate was run into a model using a panel of 48m x 48m x 6m and 48m x 48m x 3m to assess the smaller panels' impact and generate a model that can be used to validate the MIK estimate. LUC has been raised as a likely estimation method for HVK by various past auditors. The LUC study used parameters based on the same parameters as the MIK and OK estimates to ensure valid comparisons. The study shows the 3m high panels result in little to no difference in the global estimate. A 3m panel was recommended to provide more granularity on the local scale. The 3m panel was initially adopted for the 202201 Mineral Resource estimate.

The LMIK estimate plotted against the LUC estimate indicates that the MIK estimate is robust and better represents the high grades than the more smoothed LUC estimates. The LUC estimate generates more ounces than the MIK due to the increase in tonnages in the middle to high-grade bins. This overstatement of ounces could create issues from a planning point of view; thus, LUC is not recommended for the HV deposit.

11.18Mineral Resource Estimate

All Mineral Resources are reported according to the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

The QP compiling the Mineral Resource estimates is Mr R Reid, Group Resource Geologist, and employee of Harmony PNG.

The Mineral Resource includes broken ore stockpiles after mining depletion and are classified as Measured Resources. Mineral Resource estimates are provided by deposit in Table 11-6.


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Figure 11-7: Location and Classification of Mineral Resources
Source: HiddenValley202202_resource_report_Final_SAMREC_Format


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Table 11-6: Summary of the Hidden Valley Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-8


METRIC			Grade		Metal Content
Mineral Resource Category	Open Pit	Tonnes (Mt)	Gold (g/t)	Silver (g/t)	Gold (kg)	Silver (kg)
Measured	HVK	-	-	-	-	-
	Hamata	-	-	-	-	-
Total / Ave. Measured		0.000	0.00	0.00	0	0
Indicated	HVK	32.986	1.34	21.97	44,064	724,693
	Hamata	1.607	1.97	-	3,163	-
Total / Ave. Indicated		34.592	1.37	21.97	47,228	724,693
Total / Ave. Measured + Indicated		34.592	1.37	21.97	47,228	724,693
Inferred	HVK	1.234	1.21	23.12	1,489	28,521
	Hamata	0.190	1.50	-	284	-
Total / Ave. Inferred		1.423	1.25	23.12	1,773	28,521

IMPERIAL			Grade		Metal Content
Mineral Resource Category	Open Pit	Tonnes (Mt)	Gold (oz/t)	Silver (oz/t)	Gold (Moz)	Silver (Moz)
Measured	HVK	-	-	-	-	-
	Hamata	-	-	-	-	-
Total / Ave. Measured		0.000	0.000	0.000	0.000	0.000
Indicated	HVK	36.360	0.039	0.641	1.417	23.299
	Hamata	1.771	0.057	-	0.102	-
Total / Ave. Indicated		38.132	0.040	0.641	1.518	23.299
Total / Ave. Measured + Indicated		38.132	0.040	0.641	1.518	23.299
Inferred	HVK	1.360	0.035	0.674	0.048	0.917
	Hamata	0.209	0.044	-	0.009	-
Total / Ave. Inferred		1.569	0.036	0.674	0.057	0.917
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 using the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr R Reid, Group Resource Geologist, and employee of Harmony PNG.
2. Mineral Resources are adjusted for mining depletion to end April 2022, with assumed production for May and June, 2022.
3. Measured Resources include surface stockpiles only.
4. Mineral Resources are reported on a 100% basis. Harmony holds a 100% interest.
5. Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
6. Mineral Resources at HVK are reported assuming a bulk open pit mining metallurgical recovery for silver and gold by sulphide flotation. Mineral Resources are reported above a gold grade cut-off of 0.65g/t on the results of a profit algorithm; this equates to a marginal ore cut-off grade. The profit algorithm takes account of metal price, grade, ore processing route, recoveries and costs. Metal price assumptions are USD1,546/oz gold, USD22.35/oz silver and a 0.73 USD/AusD exchange rate. Adjustments to these figures will potentially impact upon the economic cut-off grade.
7. Tonnages are metric tonnes. Gold and silver ounces are estimates of metal contained in tonnages and do not include allowances for processing losses.
8. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.


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11.19Mineral Resource Reconciliation

A number of changes have been made to the Mineral Resource estimate compared to the reported 30 June 2021 Mineral Resource. These changes include:

•updated Mineral Resource model informed by updated geological information and interpretation derived from additional resource definition and grade control drilling programs;

•changes to search parameters aimed at restricting the impact of HG samples;

•changes to the panel height (from 6m to 3m) to reduce the number of internal SMU’s to assist in the control of excessive high grade material;

•removal of the highest HG indicator for the Indicator Kriging bins in order to reduce the mean of the top bin and reduce the impact of high grades on the Mineral Resource;

•mining depletion to end April 2022; and

•change in ore stockpile balance to end April 2022.

The previous Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, have decreased from 1.550Moz of contained gold to 1.518Moz of gold in June 2022. The previous Measured and Indicated Mineral Resources, exclusive of Mineral Reserves, have increased from 21.300Moz of silver to 23.299Moz of silver in June 2022.

11.20External Audits and Reviews

The HVK Mineral Resource modelling process has been reviewed both externally and internally a number of times over the years. External audits relating to the LMIK estimation process occurred in 2015 (AMC), 2016 (AMC), 2018 (SRK), 2019 and 2022 (Derisk), and all have found the process robust and have offered advice for improving the estimate. When this advice was found to improve the estimate's quality, the changes were implemented.

In general, the audits have found:

•the workflow seems sensible;

•domaining is reasonable relative to geology;

•variography and search parameters used appear sensible;

•contact analysis and data sharing are reasonable;

•validation is consistent with expectations; and

•additional drilling is required.

Implementing the recommendations have improved the robustness of the model and the external audits have all recommended the model as fit for use, and there are no significant issues with the estimate.

11.21Comment on Mineral Resource Estimates

The QP is of the opinion that Mineral Resources were estimated using industry-accepted practices and conform to the SAMREC Code. The Mineral Resources have also been reported in accordance with the S-K 1300 guidelines.

The block model has generated an acceptable model and resulted in a minor correction to the gold grades. This updated model does not result in a significant update to the Mineral Resource, rather, it incorporates additional data into the estimate and attempts to better model the internal variability of the model.

The modelling process has been reviewed internally and externally and found robust. Implementing the recommendations have improved the robustness of the model and the external audits have all recommended the model as fit for use, and there are no significant issues with the estimate.

There are no other environmental, legal, title, taxation, socio-economic, marketing, political or other relevant factors known to the QP that would materially affect the estimation of Mineral Resources that are not discussed in this TRS.


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12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

The Hidden Valley Mineral Reserve estimate is based upon the open pit mining of the HVK and Hamata pits and the processing of the ore at the Hidden Valley processing plant. The HVK deposit produced gold and silver, whilst Hamata only produces gold. The Hamata pit is almost mined out and represents only 1% of the declared Mineral Reserves.

12.1Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

The Mineral Reserving process involves the following steps:

•model preparation;

•application of profit algorithm;

•pit optimisation;

•pit design;

•scheduling; and

•reporting.

The reportable Mineral Reserves are limited by the capacity of the current tailings storage facilities TSF1 (in use) and TSF2 (to be constructed). Not all mined “ore” as defined at the economic cut-off reports to the Mineral Reserve due to the constrained tailing storage facility with some marginal grade ore material remaining on stockpile at the end of the planned mine life.

All Mineral Resource classifications are maintained and converted to Mineral Reserve classifications inside the economic pit design limits.

The Mineral Reserve declaration is based upon the following key assumptions:

•LOM pit mining until Q2 c2026, with processing ore mined ore to continue until Q1 c2027 this includes mining of two cutbacks in the HVK pit namely Stage 7 and 8;

•increase in the height of TSF1 to 2,017mRL to increase capacity

•construction of TSF2 utilising the Hamata open pit void;

•gold price of USD1,546/oz;

•silver prices of USD22.35/oz;

•AUD : USD exchange rate of 0.73; and

•PGK : USD exchange rate of 3.50.

Both the HVK and Hamata Mineral Resource models, used in the preparation of this estimate, are MIK panel estimates that have been localised into 12m x 12m x 3m SMU’s in the case of HVK and 12m x 12m x 6m SMU’s for Hamata.

The HVK Mineral Resource model used to derive the current Mineral Reserve estimate was updated in February 2022.

The Hamata planning model used to derive the current Mineral Reserve estimate was updated in Feb 2022. This represents only 1% of the Mineral Reserve and is therefore not material.

12.1.1Proposed Mining Case

Two separate open pits are currently in operation; the HVK pit and the Hamata pit. HVK pit is the larger pit supplying the majority of the ore and is located approximately 6km from the processing plant.

The Hamata open pit is nearing completion and is predominately used to supply construction material for the construction of the TSF dam walls.


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Mining operations employ conventional open pit mining techniques with back-hoe excavators and rigid dump trucks as the primary load and haul equipment. Front-end loaders are used for crusher feed and stockpile reclaim. A number of articulated smaller dump trucks are used for construction, and to a lesser extent mining in Hamata.

Mining bench configuration consists of 18m inter-berm heights, mined as 2m x 9m benches or 3m x 3 m flitches (in ore).

Waste is disposed in engineered valley fill waste dumps, with toes keyed in and buttressed using competent non-acid producing rock. The construction of the Neikwiye valley toe buttress and underdrain network was completed in FY18 and waste rock will be disposed in this dump envelope through the remainder of the mine life. Dumping in the Kaveroi Valley adopts the same engineering concepts with underdrain construction currently underway. This dump will also continue to be used for the life of mine.

12.1.2Mining Costs

Mining cost inputs to the 2022 Mineral Reserve estimate are derived from the FY23 LOM/Budget plan. They are consolidated and applied in the following categories: haulage, loading, blasting, ancillary, general and administration (“G&A”) and reclaim.

12.1.3Profit Algorithm

Modifying factors are applied to the resource model to determine the marginal cut-off grade on a block level in the resource model. This gold cut-off is then applied for reporting purposes. The grade control process utilises the same economic parameters to generate a series of material types based on the gold equivalent cut-offs calculated using these parameters.

The profit algorithm assigns a marginal cut-off value per block and considers the following parameters:

•gold and silver price estimates;

•gold and silver grades;

•ore processing method;

•estimated metal recoveries;

•costs:

•crush and convey cost;

•processing cost estimate;

•realisation and royalty cost estimates;

•G&A cost estimates; and

•tailings loading cost.

The parameters considered in application of profit algorithm are presented in Table 12-1. These cut-offs are used for grade control and dig block modelling but are not used in the reporting of the Mineral Reserves.

Table 12-1: Profit Algorithm Parameters


Parameter	Unit	Value
Royalty Cost Au	%	2.50%
Royalty Cost Ag	%	2.50%
Realisation cost Au	PGK/oz	98.78
Realisation cost Ag	PGK/oz	0.00
Crush and Convey Cost HV	PGK/t Milled	4.55
Crush and Convey Cost KV	PGK/t Milled	4.55
Crush and Convey Cost HM	PGK/t Milled	4.55
Processing Cost Flotation Ore	PGK/t Milled	53.60
Processing G&A Cost	PGK/t Milled	51.54


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12.1.4Metallurgical Recovery

Metallurgical parameters applied in this Mineral Reserve estimate is based on metal recovery estimates as per the document “MV Recovery Model (EZ) 20200407”. Metallurgical recovery estimates are based on a set of developed recovery curves for gold and silver. These are presented in Figure 12-1 and Figure 12-2, respectively.

12.2Modifying Factors

The modifying factors applied to the Mineral Resources to convert them to Mineral Reserves are presented in Table 12-2.

Table 12-2: Modifying Factors


Modifying Factor	Unit	Value
Gold Price	USD/oz	1,546
Silver Price	USD/oz	22.35
Exchange Rate
Aus Dollar : USD	:	0.73
PGK : USD	:	3.50
Tonnage Recovery	%	100
Gold Grade Recovery
HVK >2300mRL	%	97
HVK < 2300mRL	%	93
Hamata	%	90

12.3Mineral Reserve Estimate

Mineral Reserves are reported for HVK and Hamata. Measured and Indicated Mineral Resources were converted to Proven and Probable Mineral Reserves. The Mineral Reserves are reported according to the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

All Mineral Reserves are reported on a 100% basis with an effective date of 30 June 2022. Harmony has a 100% interest in the mine.

The approximate location of the Mineral Reserves is indicated in Figure 12-3.

The QP who compiled the Mineral Reserve estimate is Mr D Ross, Group Mine Planning Engineer, and employee of Harmony PNG.


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Figure 12-1: Graph of Gold Recovery versus Head Grade
Source: Ore Resv rpt HVO_June_2022_Final
Figure 12-2: Graph of Silver Recovery versus Head Grade
Source: Ore Resv rpt HVO_June_2022_Final


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Figure 12-3: Approximate Location and Classification of Hidden Valley Mineral Reserves


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The summary of the Mineral Reserve estimate for HVK and Hamata is tabulated in Table 12-3.

Table 12-3: Summary of the Hidden Valley Mineral Reserves as at 30 June 2022 1-5


METRIC			Grade		Metal Content
Mineral Reserve Category	Open Pit	Tonnes (Mt)	Gold (g/t)	Silver (g/t)	Gold (kg)	Silver (kg)
Proven	HVK	2.547	0.86	18.32	2,191	46,672
	Hamata	-	-	-	-	-
Total / Ave. Proven		2.547	0.86	18.32	2,191	46,672
Probable	HVK	16.289	1.78	22.45	28,941	365,718
	Hamata	0.269	1.48	-	399	-
Total / Ave. Probable		16.558	1.77	22.45	29,340	365,718
Total / Ave. Proven + Probable		19.105	1.65	21.89	31,531	412,390

IMPERIAL			Grade		Metal Content
Mineral Reserve Category		Tonnes (Mt)	Gold (oz/t)	Silver (oz/t)	Gold (Moz)	Silver (Moz)
Proven	HVK	2.808	0.025	0.534	0.070	1.501
	Hamata	-	-	-	-	-
Total / Ave. Proven		2.808	0.025	0.534	0.070	1.501
Probable	HVK	17.955	0.052	0.655	0.930	11.758
	Hamata	0.297	0.043	-	0.013	-
Total / Ave. Probable		18.252	0.052	0.655	0.943	11.758
Total / Ave. Proven + Probable		21.060	0.048	0.639	1.014	13.259
Notes:
1. Mineral Reserves are reported with an effective date of 30 June 2022, using the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr D Ross, Group Mine Planning Engineer, and employee with Harmony PNG.
2. Mineral Resources are reported on a 100% basis. Harmony holds a 100% interest.
3. Mineral Reserves are reported using the following assumptions: open pit mining method, gold price of USD1,546/oz, silver price of USD22.35/oz at USD/AusD 0.73 exchange rate (PGK/USD 3.5 exchange rate).
4. Not all “ore” as defined at the economic cut off reports to the Mineral Reserve due to the constrained tailing storage facility with some marginal grade ore material remaining on stockpile. The Proved Mineral Reserve is limited to stockpiles. Probable Mineral Reserve is derived from the Indicated Mineral Resource.
5. Gold and silver ounces are estimates of metal contained in tonnages and do not include allowances for processing losses.
6. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.

Risks associated with the Mineral Reserve include:

•lower metal recoveries than planned;

•tonnes and /or grade not achieved;

•production is delayed;

•profitability of operation is at risk; and

•delays to mining or construction schedule.


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12.4Mineral Reserve Reconciliation

The previous Mineral Reserve estimate is tabulated in Table 5-3 and declared 23.5Mt of ore for 1,137koz contained gold in the HVK and Hamata open pits. The current 2022 Mineral Reserve update reports an increase when compared to the previous year. Current Mineral Reserve estimate is 19.1Mt of ore for 1,014koz contained gold. The most significant changes in this Mineral Reserve estimate relative to the June 2021 release include:

•depletions (pit and stockpiles) to end June 2022 (-3.2Mt);

•updated geological model (+0.2Mt);

•modifying factors (-0.9Mt);

•stockpile changes (-0.8Mt).

12.5Commentary on Mineral Reserve Estimate

The QP is of the opinion that Mineral Reserves were estimated using industry accepted practices and conform to the SAMREC and S-K 1300 requirements. Mineral Reserves are based on open pit mining assumptions.

The Mineral Reserves are acceptable to support mine planning. There are no other environmental, legal, title, taxation, socioeconomic, marketing, political or other relevant factors known to the QP that would materially affect the estimation of Mineral Reserves that are not discussed in this Report.


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13Mining Method

Section 229.601(b)(96) (13) (i-v)

Two separate open pits are currently in operation; the HVK pit and the Hamata pit. HVK pit is the larger pit and the Hamata open pit is nearing completion.

Mining bench configuration consists of 18m inter-berm heights, mined as 2m x 9m benches or 3m x 3m flitches (in ore).

13.1Mine design

The mining design process is an iterative process which includes the following steps:

•optimisation;

•pit design;

•stage (cutback) design;

•review; and

•implementation.

The planning model forms the basis of the input to the design process and is derived by application of the profit algorithm (Section 12.1.3). Various inputs and constraints are considered in the optimised ultimate pit design, and stage design processes. These include:

•inputs:

•mining cost;

•processing cost;

•metal recoveries;

•revenues;

•geotechnical slope parameters;

•constraints:

•legal/environmental – Mine lease boundaries;

•equipment/operational - minimum mining width, drainage, exploration, stockpiling etc.; and

•construction – waste dump and TSF construction and material specification and sourcing.

Following completion of all designs, a rigorous operational and geotechnical review is conducted to ensure the practicality and safety of designs. Current ultimate pit (HVK8 and HAM4) designs are illustrated in Figure 13-1 and Figure 13-2. The Stage 8 cutback in HVK is presented as a cross-section in Figure 13-3.

Pit design is a manual process completed in SURPAC and utilises the slope model, planning model, optimised pit shells and restricted area outlines as inputs. Other inputs such as minimum mining width, ramp locations, pit entry and exits, staging constraints and topography are taken into account throughout the design process. Figure 19 shows a section through the Kaveroi pit illustrating the current planned staging configuration. The Stage 8 cut back targets ore predominately from the Kaveroi part of the ore body.


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Figure 13-1: HVK Ultimate Pit (HVK7)
Source: Ore Resv rpt HVO_June_2022_Final
Figure 13-2: Hamata Ultimate Pit (HAM)
Surce: Ore Resv rpt HVO_June_2022_Final


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Figure 13-3: Cross Section through HVK Open Pit Indicating Stage 8 Cutback Configuration
Source: Ore Resv rpt HVO_June_2022_Final


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13.2Mining Costs

Mining cost inputs to the 2022 Mineral Reserve Estimate are derived from the FY23 LOM/Budget plan. The mining cost inputs, by category, used in the mine design are presented in Table 13-1.

Table 13-1: Mining Costs


Category	Unit	HVK	Hamata
Hauling	PGK/t mined	3.38	3.38
Loading	PGK/t mined	4.09	4.09
Drilling	PGK/t mined	0.81	0.81
Blasting	PGK/t mined	0.48	0.48
Ancillary	PGK/t mined	1.28	1.28
Admin (incl. Site G&A)	PGK/t mined	0.17	0.17
Reclaim	PGK/t mined	0.00	0.00
Total Mining Cost		10.22	10.22

13.3Mine Plan Development and Life of Mine Schedule

Mine scheduling is completed in Minesched. Input to the scheduling process requires the planning model as well as pit and stage designs.

Other inputs to the schedule process include and are not limited to; mill processing capacity, mining fleet operational equipment effectiveness assumptions, mining strategies, haul routes, waste dump and stockpiling cut-off strategies.

Stage 7 waste stripping is underway which will present ore throughout 2022. Lower grades are expected as Stage 7 progressed through the halo zone at the top of the ore body, until the core of the ore body is exposed. Stage 8 cutback has now been added to the mine schedule and is forecast to commence mid-2023, as a continuation of current mining operations. Hamata quarry will continue to be utilised for construction material to complete TSF1 and build TSF2.

Mill throughput is forecast at 4Mt per annum. The Mineral Reserve will be processed over five year remaining life to FY27.

The FY23 LOM schedule and commercial model provides economic justification to support the reported Mineral Reserve. Current economic conditions have generated a higher price environment particularly around logistics, fuel, explosives and reagents that have been incorporated into the 2022 Mineral Reserve financial modelling. The financial model estimates positive NPV’s for the asset at a LOM AISC of ~USD1,148/oz.

The production profile is presented in Figure 13-4 and Figure 13-5.

13.4Geotechnical and Geohydrological Considerations

13.4.1Geotechnical

Geotechnical domains have been defined for both pits using geotechnical drill holes results, geotechnical parameters and structural models. These parameters are continually reviewed and the latest guidance prior to any pit design modifications are confirmed with the geotechnical department. These parameters are used for the purpose of pit optimisation and design. The domains and their associated geotechnical parameters are presented in Table 13-2.

These parameters are applied in the pit design process and are facilitated by incorporating the geotechnical domains (Rocktype, Oxstate and design sector) and design parameters into the block model which spatially outputs the slope configuration and design constraints for batter and inter-ramp slopes. Geotechnical review of the final designs ensures conformance to the recommended geotechnical criteria. The review and update to designs to improve safety, production and reduce failure risk is an ongoing process working with the latest available geotechnical information available.


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Figure 13-4: Graph of Hidden Valley LOM Plan – Tonnes Milled

Figure 13-5: Graph of Hidden Valley LOM Plan – Metal Produced (oz)


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Table 13-2: Geotechnical Domains and Associated Parameters


Open Pit	Wall	Geotechnical Domain	Bench Height (m)	Bench Face Angle (°)	Bench Width (m)	Inter Ramp Angle (°)
HVK	All	GGD Oxide	18	45	6	37
	East	MTS Oxide	18	45	8	35
		MTS East	18	60	8	44
		MSC East	9	55	6	36
		GGD East	18	65	8	48
	North	MTS North	18	60	8	44
		GGD North	18	65	6	51
	Southeast	GGD Southeast	18	50	8	38
	West	GGD West	18	50	10	36
	South	HV Fault	9	50	6	33
		GGD South	18	60	7	46
Kaveroi	East	MTS East	18	60	8	44
		GGD East	18	55	6	42
	West	GGD West	18	60	6	44
Hamata	West	GGD Oxide West	9	60	7	36
		GGD Fresh West	18	50	10	36
	South	GGD Oxide South	9	55	6	36
		GGD Fresh South	18	50	10	36
	East	GGD Oxide East	18	55	8	41
		GGD Fresh East	18	60	8	44

13.4.2Geohydrological

Groundwater models were developed by Klohn Crippen Berger (“KCB”) in 2017 and updated in 2020. The model is based on hydrogeological data for ground water models from historic and FY20 piezometer monitoring results, bore pumping data, visible water seepage on pit slopes and hydrogeological parameters, or estimated from historical data with similar hydrogeological characteristics. The location of the piezometers is indicated in Figure 13-6.

Packer tests were attempted during drilling investigations for the Closure Plan project. Soft ground, collapsing conditions and associated difficulties with achieving effective packer seals reduce the confidence that can be assigned to interpreted hydraulic conductivity (“K”).

K values derived from nine packer tests across fault and/or fracture zones range from 0.006 to 0.340m/day. Inspection of the borehole logs for the intervals tested, and the predominance of clay infill in fracture zones, suggests that fault permeability is similar to the more intact rock mass or moderately higher. The hydraulic test data used in the HVK pit assessment is presented in Table 13-3.

For the metasediments, in situ packer and falling head tests were completed for five unique sequences in two holes for a geometric mean permeability of 0.04m/day, ranging between 0.01m/day and 0.34m/day. The ratio between horizontal and vertical conductivity (Kh:Kv) is assumed to be 10:1. Aquifer storage (”S”) parameters are not known.

A cross section of the phreatic surfaces is presented in Figure 13-7.

In situ packer and falling head tests were completed for seven unique sequences in the Granodiorite across five holes for a geometric mean permeability of 0.07m/day, ranging between 0.02m/day and 0.20m/day. Kh:Kv is assumed to be 10:1 and S parameters are unknown.

The Hidden Valley Surface Water Management Plan aims to prevent adverse impacts on the natural function and environmental value of watercourses, water quality and sheet flow downstream from the mine area. This is achieved by minimising disruption to natural flows, preventing erosion and contamination of surface and ground water.


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Figure 13-6: Vibrating Wire Piezometer Locations in HVK (KCB 2020)


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Table 13-3: Hydraulic Test Data


			Testing Interval		Average Hydraulic Conductivity (m/day)
Borehole ID	Test Date	Dip	From (m)	To (m)	Thiem (1906)	Hoek and Bray (1974)	Formation or Feature
BH703	05-Aug-16	50	61.0	66.3	0.138	0.340	Metasediments, highly fractured
BH703	10-Aug-16	50	149.8	167.0	0.103	0.230	Metasediments, highly fractured
BH703	14-Aug-16	50	190.4	210.0	0.006	0.013	Metasediments, fault zones, highly fractured
BH703	18-Aug-16	50	248.9	266.1	0.028	0.060	Metasediments, fractured and dyke / fault clay gouge
BH704	29-Jul-16	52	152.2	174.0	0.009	0.020	Diorite, highly fractured, some faulting
BH705	20-Aug-16	50	116.0	119.8	0.021	0.055	Granodiorite, fault - clay breccia
BH705	24-Aug-16	50	137.8	151.6	0.029	0.065	Granodiorite, fault - clay breccia with granodiorite clasts
BH707	04-Aug-16	65	22.4	41.9	0.098	0.212	Granodiorite, fractured
BH707	09-Sep-16	65	128.6	138.4	0.038	0.087	Granodiorite, fractured


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Figure 13-7: Cross Section of Hidden Valley Pit With Phreatic Surfaces
Source: KCB 2020


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The surface water management plan also aims to minimise the impact of uncontrolled surface water movement for safe working and achieving mine production requirements. This is achieved by integrating natural and constructed diversion drainage from the pit area into the surrounding gullies and into pit, infrastructure and de-silting ponds. Ideal operational practices on how to manage and minimise pit flooding, damage to haul ramps and erosion of pit slopes from surface water run-off are in place.

Hidden Valley surface water from the KCB hydrological report provided the water balance of the catchment area and a recommendation. The interception and diversion of surface runoff is a common strategy at Hidden Valley. “Rainfall infiltration, runoff and interflow events are the main source of water in the mine. Intercepting this will reduce the amount of water to be managed in the sump” The aforementioned has been part of the short-term planning of Hidden Valley operations, however, effective use of sumps and pumping to collect water from horizontal drill holes has fallen off in recent times. A deal process to manage surface water and wet horizontal holes is through effective v-drains with lining to prevent draining water percolation into the strata.

13.5Mining Operations

Mining is currently taking place at a rate of ~27Mtpa from the HVK open pit and 2.5Mtpa for the Hamata open pit.

13.6Mining Rates

Mining is planned at an average rate for 27Mtpa from HVK and 3Mtpa from Hamata. These rates reflect a return to historical averages with the inclusion of significant equipment capital included in the life of mine plan to upgrade primary digging fleets to improve equipment availabilities.

13.7Mining Equipment and Machinery

The equipment list is presented in Table 13-4 inclusive of MGC owned equipment and permanent contractor equipment.

13.8Grade and Dilution Control

Extensive grade control drilling is completed across the mine site prior to mining. Grade control is largely completed using an RC rig, with drill holes spaced on an 8x6m pattern with holes drilled to a depths of 24m. This pattern is sufficient to obtain a detailed grade map which is used to inform the grade control model, dig-blocks for ore source and short and long term planning. Some of these grade control holes are extended to between 100-200m where required to infill gaps in the Resource definition drilling which are used in the annual Resource model updates.

In rare occasions, where space is too tight for the larger drill rig or production constraints impede on the availability of the grade control rig, blast holes are sampled and used to inform the grade block outlines.

13.9Ore transport

Ore is transported by truck from the Hamata pit to the Coarse Ore Stockpile (“COS”) located adjacent to the processing plant. HVK ore is transported via dump truck to a primary and secondary crusher system then transported down mountainous terrain via an overland conveyor to the processing plant COS, a distance of approximately 6km.

13.10Mining Personnel

The mining personnel is presented in Table 13-5.


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Table 13-4: List of Mining Equipment

MGC Equipment

Equipment

No.

HVC Contractor Equipment

Equipment

No.

Grader

16M Grader

Dump Truck - Ridid

Astra Tipper Truck

Grader

18M Graders

Excavator

Back Hoe

Explosives Truck

Bomb truck - BT501

Compactor(HVC)

Excavator

CAT6030

Crusher

Cone Crusher

Dozer

D155

Dozer

D65 Dozer (HVC)

Dozer

D275

Dozer

D85 Swampy(HVC)

Dozer

D375

Dozer

D85 -swampy(HVC)

Drill

D65

Loader

FE Loader 770

Drill

DM30

Flat Bed

Drill

ECM720 (to be replaced)

Float

Fuel Truck

Fuel Truck(HVC)

Grader

GD825 Grader

Grader

Grader 870G

Dump Truck - Ridid

HD785

Crusher

Jaw Crusher

Dump truck - articulated

HM400

Screen

Power Screen

Drill

Leopard

Rock Breaker

Excavator

PC1250

Roller

Excavator

PC2000

Roller

Roller (MCG- Bulolo airport)

Pump

Roller

Roller(2/1 HVC)

Crusher

Sandvik Crusher (MCG)

Stacker

Stemming Loader

Stockpiler

Loader

WA600

Crusher

Warrior

Loader

WA900

Water Truck(HVC)

Water Truck

Excavator

HVC Digger

Loader

WD600

Total HVC

Excavator

Wheel Excavator

Grand Total

148

Loader

WA470

Total MCG

110


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Table 13-5: Mining Personnel


Mining and Technical Services	Function of Mining Crew	Crew No.
Mining - Drill and Blast	Drill and Blast	44
Mining - Dispatch	Mine Control	8
Mining - Operations	Mining	460
Mine Technical Services - Technical	Planning	57
Mine Technical Services - Geology	Geology	34
Mine Technical Services - Environment	Environment	16
Hidden Valley Contractors	Projects	117
QPS	Drilling	39
Winima Investment	Labour	12
Other	Various small contracts	38
Total		825

13.11Commentary on Mining Method

Hidden Valley mining is completed by conventional truck and excavator methods. Material is grade controlled through ore benches using RC drilling and sampling methods with samples analysed on site with analysed results feed into the mining model. This is followed by production drill and blasting using standard hammer drilling with down hole and bench services provided by Maxam blasting services. Mining is then completed by a fleet of five Komatsu excavators and 85t rear dump trucks for load and haulage to engineered waste dumps or ROM stockpiles.

The mining method is appropriate to the dimension and mineralisation associated with the orebody and the LOM is achievable based upon the parameters presented.


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14Processing and Recovery Methods

Section 229.601(b)(96) (14) (i-iv)

The Hidden Valley CIL processing plant, located adjacent to the Hamata open pit, was commissioned in 2009 and treats approximately 4Mtpa of ore.

14.1Mineral Processing Description

A simplified flow diagram for the Hidden Valley plant is provided in Figure 14-1. The process description is as follows:

•mined ore is screened and crushed through the Hidden Valley primary jaw crusher, Wobbler screens and secondary cone crusher. The crushed ore is transported overland to the COS via and overland pipe conveyor;

•the crushed ore is discharged to a conical open stockpile, which has a live capacity of 22 hours, or 11,250 t. Coarse ore is reclaimed from the stockpile by three apron feeders, each driven by a variable-speed drive. A spray water dust suppression system suppress dust generated at the apron feeder discharge points. Each feeder has the capacity to provide 60% of the full tonnage rate to the SAG;

•the feeders discharge onto the semi-autogenous grinding (“SAG”) mill feed conveyor, which transport the ore to the SAG mill feed chute. The SAG feed conveyor is fitted with a weightometer, for mass measurement of the feed reporting to the SAG mill. SAG grinding media is added to the SAG mill via the feed conveyor through a ball charging hopper and ball counter;

•the grinding circuit consists of a single SAG mill in closed circuit with cyclones;

•the SAG mill feed conveyor discharges ore into the feed chute of the SAG mill together with mill feed dilution water, gravity screen oversize and cyclone underflow. The dual pinion driven SAG mill is fitted with twin 5MW motors controlled by sub-hypersynchronous slip energy recovery (“SER”) drives. The SAG mill is fitted with discharge grates, and discharge onto a horizontal vibrating screen. The screen undersize discharges into the cyclone feed pump hopper and combine with the gravity circuit tailings. Screen oversize is recycled via the scats handling circuit, onto the feed belt to the SAG mill;

•the blended slurry is pumped by a variable-speed cyclone feed pump to the cyclone cluster. A spilt of cyclone feed is diverted to the gravity circuit from the cyclone distribution box.

•grinding circuit cyclone overflow flows by gravity through a primary flotation feed sampler and onto the float feed trash screen. The undersize from the screen flows by gravity to the flotation conditioning tank. The trash screen oversize report to the trash bunker for removal by FEL as required. The grinding circuit cyclone underflow returns to the SAG mill;

•the portion of the cyclone feed directed to gravity is sent through a cyclone pack with underflow and overflow recombined to reduce pressure prior to flowing over a vibrating screen with polyurethane panel deck. Gravity feed screen underflow gravitate to a splitter box ahead of the two centrifugal gravity concentrators. Screen oversize gravitates back to the SAG mill feed chute;

•the splitter box feeding the centrifugal concentrators has air actuated valves directing pulp to the appropriate concentrator and to bypass as required during the automatic concentrate recovery cycle. Concentrate is automatically flushed from the concentrator on a regular basis and fed to the intensive leach reactor (“ILR”). The concentrator tailing will report to the cyclone feed hopper;

•the gravity concentrate is stored in the ILR feed hopper and processed in a batch fashion. The ILR uses high concentrations of cyanide and oxygen to leach the gravity concentrate. The leached solids are pumped back to the cyclone feed hopper once the leach cycle is completed. The pregnant leach solution is pumped to the ILR eluate tank and batched through to Merrill Crowe to recover precious metals. Barren eluate is directed to the counter current decantation (“CCD”) circuit after completion;

•auxiliary equipment in the grinding section of the plant include a liner handler, dedicated reline hoist, SAG mill feed chute winch, cyclone jib hoist and cyclone feed pump maintenance hoist;

•sump pumps collect spillage and wash down, and return the slurry to the circuit via the cyclone feed hopper;


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•flotation reagents are added to the conditioning tank which in turn feeds into No 1 rougher flotation cell. The slurry cascades by gravity through 2 rougher and four scavenger cells to produce a silver/gold bulk sulphide concentrate. Flotation tailings are pumped to a thickener where the slurry is thickened to 40 -45% solids and pumped to the carbon-in-leach (“CIL”) section for further gold and silver recovery;

•the flotation concentrate is pumped to a hydrocyclone cluster (classifier), from where the underflow is reground by a conventional ball mill. The ball mill product is to the hydrocyclone cluster for size classification. The overflow from the cyclone cluster gravitates to the concentrate thickener. Thickened concentrate is pumped to the concentrate leach circuit where liquid sodium cyanide and milk of lime is added to gold and silver from the concentrate for approximately 72 hours;

•from the concentrate leach, the leached ore is pumped to the CCD section where the slurry is washed with barren solution to further extract gold and silver from the ore. The slurry and the solution are pumped in opposite directions to each other, and the gold/silver rich solution is decanted into a clarifier to remove entrained solids, prior to being gravity fed to the unpolished solution tank in Merrill Crowe section of the plant. Solids underflow from the CCD circuit is pumped to the CIL circuit for further treatment;

•the unpolished solution is filtered through one of two disc filters to remove entrained solids which could interfere with the downstream precipitation process. The clear filtrate is stored in the polished solution tank;

•the polished solution is passed through a de-aeration tower where oxygen is removed prior to adding zinc powder and lead nitrate to precipitate the gold and silver. The precipitate is passed through leaf filters to capture the zinc/gold/silver precipitate. The precipitate is harvested on a regular basis and dried in calcining type ovens in preparation for smelting;

•dried precipitate together with fluxes is charge into one of two submerged arc furnaces where the silver rich doré bar are poured;

•the slurry from the CCD and flotation tailings thickeners is pumped to the distribution box of the CIL plant where pH and cyanide concentration is checked and adjusted if required. The slurry gravity flows through six CIL tanks where the activated carbon adsorbs the remaining gold/silver that is in solution. The carbon moves in a counter current fashion to the slurry flow;

•gold and silver is stripped through the application of pressure in the presence of a cyanide solution (Elution plant). The stripped solution reports to the Merrill Crowe circuit for recovery;

•the close to barren slurry tailings pass through the INCO system where oxygen, copper sulphate and sodium meta-bisulphite (“SMBS”) is added to reduce the weak acid dissociable (“WAD”) cyanide concentration to ~25ppm before final disposal to the tailings storage facility (“TSF”);

•the loaded carbon is harvested regularly (18 – 27tpd) is first treated with hydrochloric acid to remove calcium ions, then placed in a pressure vessel where a concentrated hot cyanide solution is used to strip/remove/elute the gold and silver from the carbon. The barren carbon is then thermally reactivated through a kiln prior to being returned to the circuit for re-use;

•the silver/gold rich eluate is pumped to a storage tank at the refinery where the gold/silver is recovered in the same manner as the gold and silver from the polished solution;

•water is decanted from the TSF and pumped to the process water tank in the milling circuit for reuse. HV has a nett positive water balance, this excess water from the TSF is chemically treated through the CAROS reactor to reduce WAD cyanide concentration to below 0.5ppm in order to discharge to the environment; and

•the mine produces a silver rich doré bar typically comprised of 85% Ag, 10% Au and 5% deleterious elements mainly as Cu, Fe and Zn.


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Figure 14-1: Hidden Valley Flowsheet


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14.2Plant Throughput, Design, Equipment Characteristics and Specifications

The Hidden Valley Gold Plant is designed to treat nominally 4.0Mtpa of gold bearing ore from three separate open pits. Three distinct ore types are to be treated through two alternate treatment routes:

•whole ore processing: used to process the blend containing ore from the Hamata deposit, and oxide, transitional and primary ore from the Hidden Valley and Kaveroi deposits; and

•primary ore processing: used when processing only the primary ore from the Hidden Valley and Kaveroi deposits.

The Hamata ore is typically a gold:silver ratio of 1:1 with varying sulphur grades from 0.5% to 5.0%. Transition and primary ores have a significantly higher silver content with a gold:silver ratio of 1:15. Transition sulphur averages 0.96% while primary ore has a sulphur grade of 1.81%. The major equipment is listed in Table 14-1.

Table 14-1: Major equipment


Criteria	Units	SAG Mill	Ball Mill
Units installed		1	1 on float concentrate regrind
Diameter (inside shell)	m	10.4	3.6
Effective grinding length	m	6.3	4.9
Diameter and length (Imperial)	ft	34 x 21	12 x 16
Length:diameter ratio		0.61	1.34
Discharge arrangement		Grate discharge to closed circuit cyclone cluster	Overflow discharge to closed circuit cyclone cluster
Speed (design)	rpm	9.72	22.36
Liner type		Polymet grate discharge with pulp lifter	Rubber liner and lifter, overflow discharge
Liner thickness (new)	mm	150	75
Media type		Forged steel balls	Forged steel balls
Media (top size)	mm	105	20
Ball charge (design)	%	15	30
Total load (design)	%	26	35
Pinion power (design)	kW	8,723	811
Installed	kW	2 x 5,000	1,250

14.3Energy, Water, Process Material and Personnel Requirements

14.3.1Energy

Electric power is obtained from two sources, namely PPL Power Limited (national grid) and on site power generation from 20 diesel powered generators. PPL supplies 60 – 70% of power although contracted to supply 90% of Hidden Valley’s power requirements.

14.3.2Water

Raw water for the process plant is extracted from Pihema Creek. The raw water is treated to supply filtered raw water for processing requirements as well as feed to the potable water treatment plant. Approximately 50% of the water required for the processing plant is returned from the TSF via a set of three centrifugal pumps mounted on pontoons. Excess water is treated prior to being returned to the environment.

14.3.3Process Materials

Materials required for the process plant are tabulated in Table 14-2.


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Table 14-2: Process Materials


Process Material	Unit	Amount	Vessel
Aerophine Promotor	kg	1,000	IBC
Soda Ash Powder	kg	25	bag
Zinc Dust Powder	kg	50	drum
Copper Sulphate Powder	kg	1,200	bag
Potassium Amyl Xanthate ("PAX")	kg	900	bag
Lead Nitrate Powder	kg	25	bag
Lime	t	24	container
Borax Powder	kg	25	bag
Silica Sand Powder	kg	25	bag
Hydrogen Peroxide	t	25.20	ISO tank
Sodium Cyanide Bulk Sparge	t	19.70	ISO tank
Sulphuric Acid, 98.5% CG1840	t	21.88	ISO tank
Ammonium Nitrate, OPAL-PPAN	kg	1,000	bag
Grinding Media (105mm Steel)	kg	2,100	bag
Grinding Media (80mm Steel)	kg	2,100	bag
Grinding Media (65mm Steel)	kg	2,100	bag
Grinding Media (125mm Steel)	kg	2,100	drum
Grinding Media (25mm Steel)	kg	1,000	drum
Grinding Media (25mm Steel)	kg	1,000	bag
Leachwell	kg	10	pail
Aerofroth70	kg	800	tote
Frothing Agent, AF70	kg	160	drum
Coagulent FL4440	kg	1,050	IBC
Filter Aid	kg	330	bag
Sodium Metabisulphate	kg	1,250	bag
Antiscalent Liquid	kg	1,300	IBC
Carbon (Granules)	kg	500	bag
Hydrochloric acid	t	20	container
Flocculant, AN934 VHM	kg	750	bag
Promotor, C459 Fischerchem,	kg	1,000	IBC
Note: IBC - Intermediate bulk container

14.3.4Personnel Requirements

The processing plant staffing requirements are presented in Table 14-3.

Table 14-3: Processing Personnel


Department			No.
Processing			116
Fixed Plant Maintenance			247
Overland Conveyor & HV Crusher			39
Total			402

Crews are split into three panels, one day shift, one night shift and one on field break. Senior and supervisory staff generally work day shift only.


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14.4Commentary on the Processing and Recovery Methods

The QP notes:

•the plant has been operational since 2009 and generally meets its design criteria;

•the plant uses conventional designs and equipment (other than the pipe conveyor); and

•the technology associated with the ore processing is an industry standard for this style of deposit.


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15Infrastructure

Section 229.601(b)(96) (15)

The existing infrastructure located at the mine site is sufficient to support the current mine plan. Any extension to this plan will require the construction of an additional TSF (TSF3).

15.1Surface Infrastructure

Surface infrastructure consists of the following:

•primary and secondary crusher plant;

•overland conveyor;

•4.0Mtpa processing plan;

•TSF;

•diesel generator plant;

•sewerage treatment plant;

•concrete batching plant;

•workshops; and

•mine accommodation.

The surface infrastructure plan for the mine area is presented in Figure 15-1, whilst a photograph of the HKV open pit and adjacent infrastructure is shown in Figure 15-2.

15.1.1Ore and Waste Rock Storage Facilities

Ore is stored on the ROM stockpile prior to processing through the plant (Figure 15-1).

The LOM waste will be deposited in the Western Sector Ultimate waste dump (Figure 15-1). This dump is valley fill dump requiring underdrains and keyed in toe utilising competent rock. The dump is now fully established (underdrains and toe) and ROM waste is place in 5m lifts building from the bottom up in stages. Some of the metasediment waste is potentially acid forming and must be placed in the core of the dump. The granodiorite waste is not potentially acid forming and provides cover material to cap the waste. As part of the Stage 8 expansion additional dump capacity will be added to the Kaveroi Valley, were stability, drainage and construction techniques adopted for the waste storage dump will be implemented. This dump expansion will provide sufficient dump capacity for the LOM inclusive of Stage 8.

15.1.2Tailings Storage Facilities

The Hidden Valley mine currently operates one TSF referred to as the TSF or Hamata TSF which is expected to reach capacity in 2024 (Figure 15-1).

As part of the Stage 8 expansion incorporated into the FY22 LOM, TSF2 will be constructed as an economically viable solution that would see tailings stored in the Hamata Pit shell to expand the Hidden Valley tailings storage capacity to accommodate ore mined from Stage 8.

Tailings will be contained behind a cross-valley embankment on the north side of the pit, constructed largely within the final profile of the Hamata pit shell and founded on weathered bedrock. The dam layout is restricted by the geometry of the proposed site and the proximity of the Watut River. A portion of the TSF2 embankment will be founded on the remaining Ross Creek channel, with the maximum downstream (northern) extent constrained by the confluence of Ross Creek with the Watut River Channel.

The TSF2 embankment is designed on the proposed ultimate Hamata pit shell and profile provided to Klohn Krippen Berger (“KCB”) by Morobe Consolidated on 20 February 2020. The criteria for design, construction and operation of TSF2 has been determined as defined by Australian National Committee on Large Dams (“ANCOLD”) (2019) guidelines. Morobe Consolidated is experienced in the construction and management of tailings storage facilities with TSF2 being a continuation of the current TSF construction activities.


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Figure 15-1: Plan of Site Surface Infrastructure

Figure 15-2: Photograph of HVK Open Pit


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15.1.3Power and Electrical

Hidden Valley mine has a total power demand of 18-19MW. Since 2011 HV has been connected to the Ramu National Power Grid owned by PNG Power Limited (“PPL”). Incoming power is transmitted at 132kVolts to the PPL switchyard on site, where two 25MVA transformers (100% redundancy) are located. PPL maintain the grid, transmission lines and the 132kV side of their switchyard.

Total installed generation capacity of the Ramu Grid is approximately 185MW, with the actual capacity being 100MW. Power generated and fed into the Ramu Grid is primarily hydro-electric at 65%, with the balance being thermal using diesel and heavy fuel oils (“HFO”).

PPL have numerous projects in their pipeline to improve on the efficiency of operational generation stations, as well as to bring on-line capacity that has been dormant for some years. There are also additional independent power producers (“IPPs”) entering the market, which will add to the PPL and Ramu Grid generation capacity.

As backup power, Hidden Valley has a Diesel Power Station with 20 CAT3615B Generators installed, which is capable of supplying 20MW. There are two additional bays already equipped, in the event that the demand increases beyond 20MW or for redundancy.

Once the 132kV received from PPL is stepped-down, the remaining reticulation on-site is at 11kV, 450V and 240V.

In the event of a shortfall from PPL, the system is designed to automatically synchronise the power generated by the diesel generators with the power received via the transmission lines. When forewarned, the generators are started, with no impact on the running of the mine and processing plant.

15.1.4Water Usage

Water extraction (water use), reuse and discharge volumes are monitored at the mine site to ensure water is managed in a responsible manner and potential environmental impacts are minimised.

Water extracted from the Upper Watut Catchment (Upper and Lower Keru and Bulldog Creeks) is supplied to the potable water treatment system for use at the Ridgeline camp. Approximately 1,967ML of water was extracted from Pihema Creek during 2021 for ore processing and potable water use at Hamata. The water extraction rate for the year was less than the permit limit of 2,372ML in 2021.

15.1.5Pipelines

There are no significant pipeline on the site. Small HDPE pipes carry tails from the processing plant to the TSF immediately adjacent.

15.1.6Logistics and Supplies

All supplies, fuel and equipment are brought into the mine site via the road from Bulolo (Figure 3-1). Gold doré product is flow out of the mine site via helicopter.

15.2Commentary on Infrastructure

The QP notes that Hidden Valley is an operating mine and as such has the necessary infrastructure to support the LOM plan; The LOM budget allows for operating cost and sustaining capital sufficient to meet operating criteria of the plant.


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16Market Studies

Section 229.601(b)(96) (16) (i-ii)

Internet based market studies were undertaken by Harmony in 2022 for the metals reported in the Mineral Resource estimate i.e., gold and silver. Hidden Valley produces silver and gold in the form of a silver rich doré bar. Gold provides around 80% to 85% of Hidden Valley’s revenue whilst silver provides the remaining 15% to 20%.

16.1Gold

16.1.1Market Overview

16.1.2Global Production and Supply

Gold production and supply is sourced from existing mining operations, new mines and recycling.

16.1.2.1New Mine Production

Overall, global mine production was 3,000t in 2021, slightly lower than production levels in 2020 (3,030t), and the second annual decline in production after 2016. Recent decline has been largely attributable to COVID-19 interruptions. In 2021, the major producing gold countries in the world were China (370t), Australia (330t), Russian Federation (300t), USA (180t), Canada (170t), Ghana (130t), Mexico (100t), and Uzbekistan (100t). Indonesia, Peru and Sudan produced 90t each, followed by Brazil (80t). South Africa produced 100t in the same year (USGS Mineral Commodity Summaries, 2022).

16.1.2.2Recycling

16.1.3Global Consumption and Demand


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16.1.3.1Jewellery

16.1.3.2Investment

16.1.3.2Currency

16.1.4Gold Price

16.1.4.1Historical

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

The previous average gold prices for the last three years are presented in Table 16-1.

Table 16-1: Previous Average Metal Prices


Date	Gold Price (USD/oz)	Silver Price (USD/oz)
July 2019 to June 2020	1,562.35	16.89
July 2019 to June 2021	1,850.24	25.39
July 2021 to June 2022	1,833.86	23.59
Three year average	1,748.82	21.94


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Figure 16-1: Graph of Annual Gold Price History – USD/oz

Figure 16-2: Graph of Consensus View of Forecast Gold Price


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16.1.4.2Forecast

Harmony’s gold price forecast of USD1,546/oz is conservative if corroborated against a long-term broker consensus gold price outlook (Figure 16-2).

16.2Silver

Silver is traded as an investment or precious metal as a safe-haven asset in periods of high economic risk. The metal is physically traded as bullion, as well as in futures, options or other financial instruments across a variety of markets/exchanges. Physical silver demand is driven by a series of applications linked to its malleable, pliable, lustrous, and antibacterial properties. Silver prices are mainly driven by gold prices, investor sentiment and the global economic outlook, forex markets and industrial manufacturing demand. An overview of the silver market is given in the following sections based mainly on data from the Silver Institute website, and other market research groups.

16.2.1Market Overview

The silver market is driven by its application in jewellery, silverware and in industrial manufacture of micro-electronic components, where it is valued for its high conductivity and ductility, among other applications such as catalysts, in brazing and soldering, bearings and in medicine (Silverinstitute.org, Accessed 2022). Industrial demand from solar panels, electric vehicles and other electronics is growing. In addition, silver is valued as a precious metal and investment, where the market is affected by macoeconomic events.

16.2.2Global Production and Supply

Global mined production of silver grew by 5.3% in 2021, to 822.6Moz, where the historically significant growth was driven by recovery of mine production after the impact of COVID-19 in 2020 (Silverinstitute.org, Accessed 2022). Silver is produced as a primary mined product (increasing by 10.2% in 2021), and as a co-product from gold and lead-zinc mines (5.8% and 5.1% respectively) (Silverinstitute.org, Accessed 2022). Most silver is produced in Mexico, followed by China, Peru, Australia and Poland, with the USA and Canada also hosting large reserves. Major producing projects include KGHM Polska Miedz (a primary copper mine in Poland), Penasquito (a primary gold project in Mexico), Spence (a primary copper project in Chile), Escobal (a silver mine in Guatemala) and Kazzinc (a primary zinc mine in Kazakhstan), among others (S&P Global Market Intelligence, Accessed 2022).

Industrial scrap supplies the global silver recycling market, which increased to an eight-year high of 173Moz (2021) (Silverinstitute.org, Accessed 2022).

The silver market was in deficit in 2021, with total supply at 997Moz (Energy and Metals Consensus Forecasts, Consensus Economics, June 2022).

16.2.3Global Consumption and Demand

Demand for silver is from the jewellery market as well as industrial demand, where it is used in the manufacture of electronics and solar power generation. Demand for silver was estimated at 1,049Moz in 2021, increasing from 880Moz in 2020 (Energy and Metals Consensus Forecasts, Consensus Economics, June 2022).

Industrial fabrication increased by 9% in the year, given resumed operations and business with the recovery from COVID-19, and demand from consumer electrics, 5G infrastructure, inventory in supply, and application in photovoltaics (Silverinstitute.org, Accessed 2022).

Demand for silver in jewellery and silverware increased by 21% in 2021 to 181.4Moz, as a result of increased consumption and increased fabrication and rebuilding of stock. India drives silver jewellery demand, which exhibited a 45% increase to 58.7Moz. Demand from Thailand (24.8Moz), Italy (20.4Moz) and the US (13.2Moz) was also noteworthy. Consumption in silverware was driven by India, with 24.4Moz (Silverinstitute.org, Accessed 2022).


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Figure 16-3: Graph of Annual Silver Price History – USD/oz

Figure 16-4: Graph of Consensus View of Forecast Silver Price


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16.2.4Silver Price

16.2.4.1Historical

The six year silver price history is graphically presented in Figure 16-3. The spot price of silver decreased to trade an USD21.50/oz, reaching a more than one year low on 29 September 2021. The US Federal Reserve Bank indicated that they could start tightening monetary policy measures soon, which cause the USD index to reach a ten month high and reduce the appeal of silver for other currency holders.

The previous average silver prices for the last three years are presented in Table 16-1.

16.2.4.2Forecast

The sliver price appears to be retreating towards historical levels reaching an 11-month low after an escalated period from July 2020-April 2022, driven by monetary policy, fears of a recession and USD strength. However, price declines for precious metals are expected to be moderated by uncertainty in the macroeconomic environment, given that silver remains a hedge against inflation (Consensus price forecasts – Gloomy economy weighs on prices, S&P Global Market Intelligence, 2022). The near and medium-term mean price outlook for silver does not decline below USD20.0/oz until 2030.

This silver forecast price consensus from various sources is provided in Table 16-2 and whilst the S&P Global Market Intelligence view is graphically portrayed in Figure 16-4. Harmony has adopted USD22.35/oz for its long term silver price.

Table 16-2: Silver Price Consensus Forecast


Source	Unit	2022	2023	2024
World Bank: Development Prospects Group	USD/oz	24.80	24.40	24.00
CIBC	USD/oz	31.00
TD Economics	USD/oz	23.38	22.69
Scotiabank	USD/oz	25.00	23.00
BMO Capital Markets	USD/oz	25.00
S&P Global	USD/oz	25.58	24.26	23.24

16.3Commentary on Market Studies

The sliver price appears to be retreating towards historical levels reaching an 11-month low after an escalated period from July 2020-April 2022, driven by monetary policy, fears of a recession and US Dollar strength. However, price declines for precious metals are expected to be moderated by uncertainty in the macroeconomic environment, given that silver remains a hedge against inflation (Consensus price forecasts – Gloomy economy weighs on prices, S&P Global Market Intelligence, 2022). The current silver price of USD 20.42/oz (30.06.22) is aligned with the historical three-year average.

The near and medium-term mean price outlook for silver does not decline below USD 20.0/oz until 2030, where the price will not retreat much beyond historical levels in the near term. The mean price outlook for 2023 is USD 22.69/oz.


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16.4Material Contracts

Harmony has contractual vendor agreements with various service providers and suppliers. A list of the most significant of these contracts, by value, which are currently in place to support mining operations are presented in Table 16-3. All of the listed contracts are currently valid and in good standing. Terms, rates and charges of contracts are considered consistent with industry norms. Contract management processes are in place and resourced so that contracts re-tendered and/or renewed as they approach expiry.

Table 16-3: Hidden Valley Material Contracts


Vendor Name			Nature of Service /Supply
Puma Energy PNG Ltd			Supply of Diesel Fuel
Hidden Valley Contractors			Mining Services
Pacific Cargo Transport Ltd			Logistics Services - Transport of Goods
Komatsu Australia Pty Ltd			FPA supply of Komatsu spares
Orica Australia Pty Ltd			FPA Supply of Cyanide
Nkw Holdings Ltd			Catering & Camp Services
Hevilift Aviation Ltd			Fixed & Rotary Wing - Aviation


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17Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Section 229.601(b)(96) (17) (i-vii)

An extensive baseline of environmental, social and cultural heritage studies were used to inform the Hidden Valley Mine EIS. Over the life of the mine to date, these studies have been supplemented by additional investigations and an extensive data collection regime which are used to assess potential environmental risks, potential impacts from the mine and to monitor the mine’s performance.

17.1Results of Environmental Studies

The Hidden Valley Mine EIS presented the findings of the various baseline studies conducted prior to 2004 and evaluated potential environmental, social and cultural heritage impacts associated with the development of the mine. The EIS also set out proposed management measures to address any adverse impacts. The EIS was subject to a public consultation and review phase as prescribed by the Sections 51 and 55 of the Environment Act 2000.

Since the construction of the mine, additional technical investigations have been undertaken to inform and support changes to the mine plan and surface infrastructure configuration and to address identified risks and impacts. An extensive monitoring program is in effect as defined by the Hidden Valley Mine Environmental Management Plan (2021 – 2024). The results of any such studies and the monitoring program are communicated annually to CEPA via the Hidden Valley Mine Annual Environmental Report.

17.2Waste and Tailings Disposal, Monitoring & Water Management

Details on waste rock management and tailings disposal are provided in Section 15.1.1 and 15.1.2. The mining operation directly interacts with the Upper Watut River catchment and consequently an extensive monitoring program is in effect to measure the water quality of the Upper Watut River and adjoining tributaries. This is conducted in accordance with the requirements of the Hidden Valley Environmental Management Plan (2021 – 2024) (Section 17. 3), with some exceptions in the 2020-21 period on account of the COVID-19 pandemic.

Water quality monitoring data is an indicator of potential impacts to the environment and the performance of the Hidden Valley Mine. It should however be noted that many other natural and anthropogenic factors also contribute to the chemical composition of the water at the Environment Permit compliance point including landslips, artisanal mining and agriculture.

Condition 28 of Environment Permit EP-L3(578) requires that the discharge of waste water from the mine site must not cause the water quality outside the boundary of the mixing zone to exceed environment permit limits (criteria) for fresh Water Quality Criteria (“WQC”). The mixing zone boundary (compliance point) is located at Nauti village approximately 18km downstream of the mine site.

Water quality monitoring at the Nauti compliance point for the previous regulatory reporting period (calendar year 2021) demonstrated that concentrations were less than environment permit WQC and generally within historical ranges for most parameters, with the exception of dissolved manganese. Minor exceedances of the permit criteria of 0.5mg/L have been intermittently recorded since the second half of 2019. Investigations by Morobe Consolidated Goldfield’s Limited and independent consultants have determined that the Western Sector and Neikwiye Dumps are the primary point sources of soluble manganese to the river. Manganese at levels currently detected in the river is unlikely to cause any significant impact to the river system given that recorded concentrations remain well below (conservative) international ecosystem protection guidelines. Investigations are ongoing to evaluate the most effective response and control measures to address these low-level non-compliances. No other dissolved metal concentrations are at risk of non-compliance with the environment permit WQC.

Monitoring of seepage from the tailings storage facility (at both the main and saddle dams) is also conducted in accordance with the EMP. Seepage chemistry does not have a significant impact on the water quality at the boundary of the mixing zone.


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17.3Permitting and Licences

Hidden Valley operates within Mining Lease, ML151, registered in the name of Morobe Consolidated Goldfields Limited which is valid until 2030 (Table 3-1).

In accordance with the PNG Environment Act 2000, an Environmental Impact Statement (“EIS”) was submitted to the Department of Environment and Conservation (now CEPA) in February 2004. The EIS was approved in January 2005 and Waste Discharge and Water Extraction permits issued. In October 2017, these permits were amalgamated as Environment Permit EP-L3(578).

In December 2020, Morobe Consolidated Goldfields Limited submitted an application to CEPA for a minor amendment to Environment Permit (EP-L3(578) in support of the Stage 8 expansion, in accordance with the Environment (Prescribed Activities) Regulation 2002. An amendment to Environment Permit (EP-L3(578) was issued by CEPA in March 2021

The mine presently operates in accordance with the 41 conditions prescribed by Environment Permit (EP-L3(578)) which will expire on 29 March 2030. The existing environmental and tenure permits and licences are summarised in the approvals register in Table 17-1.

Table 17-1: Approvals Register


Permit / Licence			Status
Mining Lease			ML151 current. Amended 25 May 2021. Expiry 3 March 2030.
Lease for Mining Purpose			LMP80 current. Amended 25 May 2021. Expiry 3 March 2030.
Mining Easement			ME82 current. Amended 25 May 2021. Expiry 3 March 2030.
Environment Permit EP-L3 (578)			Awarded October 2017. Amended March 2021. Expires March 2030.
EIS			Approved January 2005.

In accordance with Environment Permit EP-L3(578) condition 4, Morobe Consolidated Goldfields Limited reviews and updates its Hidden Valley Environmental Management Plan (“EMP”) every three years. The most recent iteration of the EMP (2021-2024) was submitted to CEPA for approval in March 2021.

A detailed environmental monitoring program is defined in the EMP which includes water, sediment and air quality monitoring, hydrological studies, land clearance assessment and aquatic biota studies. Water quality monitoring within the major tributaries of the Watut and Bulolo Rivers forms a critical component of the monitoring program to identify potential impacts on the downstream environment as a result of the mining operation.

Results of the monitoring program are communicated to CEPA annually through the operation’s Annual Environment Report, satisfying condition 40 of Environment Permit EP-L3(578).

17.3.1Memorandum of Agreement with Government of PNG

A Memorandum of Agreement (“MOA”) relating to the Hidden Valley Project was officially signed between Independent State of PNG, Morobe Provincial Government, Morobe Consolidated Goldfields, Nakuwi Landowner Association., Wau Rural Local Level Government, Watut Rural Local Level Government and Wau Bulolo Urban Local level Government on 5 August 2005.

The agreement sets out the intent as follows:

•State grants the mining lease 151 to MCG to operate the mine;

•mining project should proceed for the common benefit of stakeholders, inclusive of MCG, People of PNG, Morobe Province, Bulolo and Wau district and the Project landowners; and

•MCG, State, Province, district, LLG and Landowners agreed to a number of matters that are captured in an enduring agreement that is reviewed from time to time by the parties through a formal process co-ordinated by the state authority (Mineral Resources Authority, referred to as MRA).


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17.4Local Stakeholder Plans and Agreements

The Hidden Valley Memorandum of Agreement (“MOA”) provides for preferential employment, training and business opportunities. Morobe Consolidated has compensation agreements with landowners of ML151 and ME 82 communities.

The Community Affairs Team has Annual Engagement plans that the team uses to inform landowners and key stakeholders including Government at all levels about the operations of the Mine on a quarterly basis.

Bulolo District (inclusive of Wau) has a five year plan for the district that links the District and various LLGs to Morobe Provincial Plan. Other development plans in the District are supposed to link to the District Plan.

The parties note that under the current 2022 elections, the Wau district has been granted its separate electorate and it is yet to be clarified/determined how this would operate within or independently of the Bulolo district.

The Morobe Provincial Government currently has an independent agreement in place with the Bulolo district on the distribution of royalty payments

17.5Mine Closure Plans

EP-L3(578) requires that the company submit a detailed Rehabilitation and Mine Closure Plan for approval by the government five years prior to the completion of commercial production. Under the previous life of mine plan, mining of Stages 5, 6 and 7 was due to be completed in 2024 and accordingly, a Mine Closure Plan was prepared and submitted to the government in June 2019.

In November 2020, Morobe Consolidated submitted a revised plan to CEPA and the MRA to reflect updated socioeconomic closure objectives and criteria. This 2020 Rehabilitation and Mine Closure Plan (“RMCP”) superseded the 2019 plan and constituted an update to the Conceptual Closure Plan as contemplated by Clause 32 of the Hidden Valley Gold Project Memorandum of Agreement.

In May 2021, the Mining Minister granted an extension of Mining Lease ML151 to underpin the Stage 8 life of mine plan. This represents a departure to the mine plan (including configuration and liabilities) reflected in the 2020 RMCP and consequently, a further update to the plan was lodged with the State of PNG in March 2022. Approval of a final RMCP is stipulated in Clause (v) of the tenement extension of term approval conditions and will be required two years prior to the end of operations.

Mine closure cost estimates have been maintained since 2009 and are updated annually via internal and external reviews. In 2021, Tetra Tech prepared a closure cost model for the Hidden Valley Mine to inform short-term closure (unplanned closure) and life of mine closure (at the end of Stage 8) cost scenarios. The closure cost as at 30 June 2022, was calculated to be AUD120m including a 10% contingency allowance.

17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals or Groups

Morobe Consolidated Goldfields through its Environment Team submits annual reports to the CEPA. Per the information presented in Section 17.2, low-level exceedances of dissolved manganese have been recorded at the environment permit compliance point since 2019. Laboratory and field testing programs remain in progress to define the most effective methods to improve the geochemical performance of the operation’s waste rock dumps and inform plans for the closure of these landforms. Findings from these investigations and any remedial actions proposed will be communicated to CEPA.

Key stakeholders to the HV MOA are updated on regular basis through various forums.


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17.7Local Procurement and Hiring

Harmony’s supplier spend per geographical location is as follows:

•in Morobe – 15%;

•in Nauti, Kuembu and Winima 14%;

•outside of Morobe 38%;

•outside of PNG (Australia) 26%; and

•outside of PNG (global, excluding Australia) 7% hiring.

For businesses, under Business Development Plan (HV MOA), the National Government through Department of Trade, Commerce and Industry, undertakes to ensure that preference is given by MCG, on commercial terms generally available and subject to proven expertise, to the NAKUWI Landowners (currently under the investment arms namely, NKW Holding Limited. NKW has its shareholders as Winima Investment Limited, Kuembu Investment Limited and Winima Investment Limited. There are other landowner companies from the impacted communities that we contract with to ensure the above distribution of suppliers and other Landowner companies benefit from the mine operations.

In respect of employment and training, the National Government through the Department of Labour and Industrial Relations ensure that MCG complies and implements the three year Employment and Training Plan. A preference is given in training and employment opportunities during the life of the Project, firstly to Landowners, secondly to people from the related districts, thirdly to other areas of Morobe and fourthly to other Papua New Guineans. Should we still be unable to secure the appropriate resources we would then recruit international resources to perform roles and to train and develop local skills.

Harmony’s current employment numbers have met with the intent of the MOA in respect of the local communities and geographical areas are as follows:

•Tier 1 Employees (Landowner Communities) - 17%

•Tier 2 in Bulolo District – 27%;

•Tier 3 in Morobe Province - 11%;

•Tier 4 Outside of Morobe, within PNG 41%. Current data indicates that 48% of these individuals live in Morobe Province; and

•Tier 5 Outside of PNG (Australia) 4%.

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

As described above, an array of technical studies remain in progress to support advances in mine closure planning. The outcomes of these work programs will inform the Final RMCP, the approval of which by the State of PNG will be supported by extensive closure-specific stakeholder engagement programs.


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18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Capital and operating cost estimates are based on current contract values along with historical costs informed by current economic assumptions. The site current and budgeted LOM provides the basis of analysis in performing current valuation outcomes. The Capital and Operating costs are aligned to the underlying mine plan which dictates material volumes and the equipment and manning required to deliver these outcomes.

18.1Capital Costs

Capital costs are predominately related to ongoing TSF construction and heavy equipment replacement both of which are considered sustaining capital spend. The TSF construction is predominately an earthworks project with required engineering to ensure correct TSF construction practice. Heavy equipment replacement is based replacing and expanding current equipment levels where applicable to achieve the mining plan. Costs are built up off significant history or current market-based quotations.

The capital costs estimates are presented in Table 18-1.

Table 18-1: Summary of LOM Capital Cost Estimate for Hidden Valley


Area			USDm
Tailings Storage Facility 1			24
Tailings Storage Facility 2			44
Mobile Fleet Replacements			39
Fixed Plant Sustaining			14
Other Sustaining			3
Total LOM Capital Cost			124

Closure costs are included as part of capital with estimated costs spread out over five years from one year before closure (landforms on waste dumps) till three years after closure (allowance for settling in TSF before capping), along with ongoing care and maintenance allowances.

18.2Operating Costs

The site current and budgeted LOM operating costs are used as a basis for zero based informed cost outcomes. Significant data gathering and market trends are applied at the time of valuation to inform the overall operating costs. Ongoing review of operating costs ensure all future forecasts and budgets are informed based on current market conditions.

The operating cost estimates are presented in Table 18-2.

Labour costs are significant with over 1,500 employees plus contractors onsite. Fuel usage by mining equipment is also a significant expense. These costs in order of value are closely followed by reagents and consumables used in processing the ore to silver / gold doré product.


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Table 18-2: Summary of Operating Cost Estimates for Hidden Valley


Operating Cost Element			USDm
Mining Open Pit
Mining cost			127.49
Geology / Technical Services			34.98
Mobile Fleet and Light Vehicles Maintenance			178.52
Subtotal Mining Cost			340.99
Treatment Cost
Processing (including maintenance)			228.02
Power cost			108.29
Overland Conveyor and Crusher			45.19
Subtotal Treatment			381.49
Site Support Services
Camp Services			33.68
Commercial			31.96
Logistics			63.52
Other services (HR, IT, etc)			133.15
Obsolete stock			2.74
Royalties			40.52
Concentrate freight			5.95
Subtotal Site Support Services			311.54
Total			1,034.02
Notes: Total is inclusive of cost allocations for deferred stripping activities.

18.3Comment on Capital and Operating Costs

The QP notes that the operating and capital cost are well known from greater than ten years of operations and maintenance records. Cost control on the site is good and there is a high confidence around the cost estimates.


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19Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

This economic analysis includes forward-looking statements. Forward-looking statements are based on current market-based assumptions as detailed below. The Hidden Valley mine has a remaining life of five years. With annualised production of 180koz Au and 2Moz Ag the operation remains well placed to continue delivering significant positive cashflows to the Harmony group. The mine delivers competitive Margin and cashflow over the remaining life of the project with further options to extend mine life being considered.

The country risk is considered well known, and Harmony has operated in PNG for over ten years.

The gold and silver market are well established, and the current sale contracts are assumed to continue. Forecast consensus gold and silver price estimates remain favourable to future value.

There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of Harmony. Readers are cautioned not to place undue reliance on forward looking statements.

19.1Key Economic Assumptions and Parameters

Key economic assumptions are provided to the Harmony Group each year based on consensus analysis and informed by valuation guidelines. These assumptions are used to model the Hidden Valley operation. Hidden Valley was valued using a discounted cash flow (“DCF”) approach. Estimates were prepared for all the individual elements of cash revenue and cash expenditures.

The resulting net annual cash flows are discounted back to 1 July 2021. A discount rate of 8.5% was used.

19.1.1Metallurgical Recoveries

Over the LOM, silver recoveries will average 71.4% and gold recoveries will average 84.7%.

19.1.2Metal Prices

The proposed gold price (USD1,546/oz) is the price that is used by Harmony for the Hidden Valley annual planning cycle and forms the basis for the gold price assumptions used in the Hidden cash flow. The reader is referred to Figure 16-2 for the consensus forecast gold price.

The proposed silver price (USD22.35/oz) is the price that is used by Harmony for the Hidden Valley annual planning cycle and forms the basis for the silver price assumptions used in the Hidden cash flow. The reader is referred to Figure 16-3 and Table 16-2 for the consensus forecast silver price. (

19.1.3Exchange Rate

The exchange rate assumptions are as follows:

•USD : AusD = 0.72; and

•AusD : PGK = 3.50.

19.1.4Royalties

Royalty provisions in the financial model include:

•royalty paid to PNG government = 2% of revenue;

•equity payment to local landowners = 0.25% of revenue; and

•production levy paid to PNG government = 0.25% of revenue.

19.1.5Working Capital

The cash flow model includes an allowance of 21 days for accounts receivable and 30 days for accounts payable.


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19.1.6Taxes

Company taxation rate in PNG is 30%. Currently Hidden Valley operation is not in a tax paying position due to previous losses. The operation is subject to Goods and Services Tax (“GST”) along with various other taxation arrangements. Hidden Valley is 100% compliant with all PNG related taxes with significant cashflow remitted to the PNG government over the life of the project to date.

19.1.7Closure Costs and Salvage Value

Conceptual mine closure costs are based on an estimated total closure cost for the operation consisting of an annual spend during operations and a final closure cost incurred over the final five years (Table 17-2). Closure plans are reviewed and updated each year. No account has been taken of any potential salvage values.

19.1.8Inflation

No inflation factors have been applied to the operations valuation. All figures are presented in real terms.

19.1.9Summary

In summary, the key financial metrics is presented in Table 19-1.

Table 19-1: Key Financial Metrics


Area	Units	Value
LOM	Years	5.00
Total material moved	kt	117,395
Total waste mined	kt	102,204
Total ore mined	kt	15,192
Total ore processed	kt	19,105
Au grade (recovered)	g/t	1.45
Ag grade (recovered)	g/t	15.59
Au metal produced	koz	892
Ag metal produced	koz	9,577
Au metal produced	koz/a average	892
Ag metal produced	koz/a average	9,577
Total sustaining capital	USDm real	124
Total operating cost (including deferred stripping cost)	USD/t ore milled LOM	54
Other cash items (lease payments, silver hedge, etc)	USD/t ore milled LOM	2

19.2Economic Analysis

The Hidden Valley LOM represents five more years of mine life culminating in FY27. Hidden Valley is well positioned to take advantage of spot market gold and silver prices. Future extensions to mine life will be considered based on risk and economic valuation. Harmony remains committed to PNG mining with ongoing negotiations in developing the world class Wafi Golpu deposit. The strategy of having a profitable operating mine in PNG in the lead up to the Wafi Golpu development has been key and helps underpin future success for both operations.

The cash flow is presented in Table 19-2.


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Table 19-2: Cash Flow for Hidden Valley


Item	Units	Total LOM	FY2023	FY2024	FY2025	FY2026	FY2027	FY2028	FY2029	FY2030






Operating Summary

Ore Processed	kt	19,105	4,020	4,005	4,043	4,020	3,017
Gold Grade - Milled	g/t	1.66	1.56	1.46	1.80	1.93	1.47
Silver Grade - Milled	g/t	21.89	31.48	20.84	24.36	18.59	15.16
Metal Production
Gold Production	koz	892	174	163	207	222	125
Silver Production	koz	9,577	2,962	1,824	2,270	1,608	913
Cash Flow Summary
Gross Revenue	USDm	1,588	334	292	370	380	213
Operating cost (including deferred stripping cost)	USDm	-1,034	-267	-247	-231	-199	-90
Other cash items (lease payments, silver hedge, etc)	USDm	-34	-13	-7	-8	-4	-2
Capital	USDm	-124	-46	-38	-19	-14	-8
Closure cost	USDm	-84	0	0	0	0	-17	-34	-34
Free Cash Flow	USDm	312	8	0	112	163	96	-34	-34
NPV - (low discount rate - 9%)	@9%	233.8
NPV - (medium discount rate - 12%)	@12%	213.2
NPV - (high discount rate - 15%)	@15%	194.8


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19.3Sensitivity Analysis

A sensitivity analysis was performed on the gold price, gold production and on total operating costs (Table 19-2, Table 19-3 and Table 19-4). The Hidden Valley NPV is most sensitive to changes in the gold price and gold grade, and least sensitive to changes in operating costs.

Table 19-3: Gold Price Sensitivity Analysis


Sensitivity (%)	Gold Production (oz)	Gold Price (USD/oz)	Revenue (USDm)	Operating Cost (USDm)	Profit / Loss (USDm)	NPV (USDm)
10%	891,519	1,701	1,511,997	1,038	447	339
5%	891,519	1,623	1,443,083	1,036	380	286
LOM plan	891,519	1,546	1,374,168	1,034	313	234
-5%	891,519	1,469	1,305,254	1,032	245	181
-10%	891,519	1,391	1,236,340	1,031	178	129

Table 19-4: Production Sensitivity Analysis


Sensitivity (%)	Gold Production (oz)	Gold Price (USD/oz)	Revenue (USDm)	Operating Cost (USDm)	Profit / Loss (USDm)	NPV (USDm)
10%	980,671	1,546	1,511,997	1,038	447	339
5%	936,095	1,546	1,443,083	1,036	380	286
LOM plan	891,519	1,546	1,374,168	1,034	313	234
-5%	846,943	1,546	1,305,254	1,032	245	181
-10%	802,367	1,546	1,236,340	1,031	178	129

Table 19-5: Total Operating Cost Sensitivity Analysis


Sensitivity (%)	Gold Production (oz)	Gold Price (USD/oz)	Revenue (USDm)	Operating Cost (USDm)	Profit / Loss (USDm)	NPV (USDm)
10%	891,519	1,546	1,374,168	1,137	209	151
5%	891,519	1,546	1,374,168	1,086	261	192
LOM plan	891,519	1,546	1,374,168	1,034	313	234
-5%	891,519	1,546	1,374,168	982	364	275
-10%	891,519	1,546	1,374,168	931	416	317

19.4QP Comments

The QP notes:

•the country risk is considered well known, and Harmony has operated in PNG for over ten years;

•the gold and silver market are well established, and the current sale contracts are assumed to continue. Forecast consensus gold and silver price estimates remain favourable to future value;

•the economic analysis is presented on a 100% basis and Harmony holds a 100% interest in the Hidden Valley;

•the IRR cannot be calculated due to ongoing positive cashflows. The projected NPV is USD291m; and

•Hidden Valley is most sensitive to changes in the gold price and gold grades.


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20Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

There are no significant adjacent mining properties to Hidden Valley. The closest operation is the Edie Creek mining operation several kilometres to the north of Hidden Valley. This operation is a small scale gravity alluvial wash / oxide gold operation.


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21Other Relevant Data and Information

Section 229.601(b)(96) (21)

There is no other relevant data and information.


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22Interpretation and Conclusions

Section 229.601(b)(96) (22)

The QPs note the following interpretations and conclusions in their respective areas of expertise, based on the review of data available for this TRS.

22.1Mineral Tenure

There are no known legal proceedings currently impacting the site, nor are any foreseen that might impact the operation going forward.

22.2Geology and Mineralisation

In the opinion of the QP the understanding of the HVK deposit settings, lithologies, mineralisation, and geological, structural, and alteration controls on mineralisation is sufficient to support the estimation of Mineral Resources.

22.3Exploration, Drilling and Analytical Data Collection in Support of Mineral Resource Estimation

•core logging meets industry norms for gold and silver exploration;

•there is no relationship between RQD results and gold grades;

•collar surveys were performed using industry-standard instrumentation at the time the drill programme was conducted;

•downhole surveys were performed using industry-standard instrumentation at the time the drill programme was conducted;

•recovery data from core drill programmes are acceptable;

•there is no relationship between core recovery and grade results;

•geotechnical logging of drill core meets industry standards for planned caving operations;

•drill orientations are generally appropriate for the mineralisation style and the orientation of mineralisation for the bulk of the deposit areas;

•the drilling patterns provide adequate sampling of the gold and silver mineralisation for the purpose of estimating Mineral Resources and Mineral Reserves; and

•sampling is representative of the gold and silver grades in the deposit areas, reflecting areas of higher and lower grades.

In the QP’s opinion, no material factors were identified with the data collected from the drilling programmes that could significantly affect Mineral Resource or Mineral Reserve estimation for Hidden Valley.

•a sampling and sample preparation heterogeneity review was undertaken in the late 1990s, and the recommendations were implemented;


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•analytical methods for core and RC samples used similar procedures. The analytical procedures were in line with industry-standard methods;

•Harmony has used a QA/QC programme comprising blanks, SRM and duplicate samples since 2008. This represents 64% of the drill hole meterage used in the current Mineral Resource estimate. QA/QC submission rates were typical for the programme at the time the data were collected. Evaluations of the QA/QC data did not indicate any significant problems with the analytical programmes, therefore the gold and silver analyses from the core and RC drilling were suitable for inclusion in Mineral Resource estimation;

•verification was performed on all digitally collected data on upload to the main database and included checks on assay data. The checks were appropriate and consistent with industry standards;

•sample security has relied upon the fact that the samples were always attended to or locked in the on-site sample preparation facility. Chain-of-custody procedures consist of filling out sample submittal forms that are sent to the laboratory with sample shipments to make certain that all samples were received by the laboratory; and

•sample storage procedures and storage areas are consistent with industry norms.

22.4Mineral Processing and Metallurgical Testing

Hidden Valley is a going concern with ten years operational experience. The processing plant can be fined tuned based upon production and metallurgical history.

Harmony and previous owners have conducted extensive metallurgical testwork programmes over the years and process flowsheets have been developed for the treatment of the Hamata, Hidden Valley and Kaveroi ore deposits. These ore deposits were broadly classified into oxide, transition and primary ore types, which were subsequently metallurgically tested and evaluated.

Test work has been recorded and reported and covered both Hamata and Hidden Valley Kaveroi deposits.

22.5Mineral Resource Estimates

The modelling process has been reviewed both internally and externally have found the process robust. Implementing the recommendations have improved the robustness of the model and the external audits have all recommended the model as fit for use, and there are no significant issues with the estimate.

22.6Mineral Reserve Estimates

The QP is of the opinion that Mineral Reserves were estimated using industry-accepted practices and conform to the SAMREC and S-K 1300 requirements. Mineral Reserves are based on open pit mining assumptions.

The Mineral Reserves are acceptable to support mine planning. There are no other environmental, legal, title, taxation, socio-economic, marketing, political or other relevant factors known to the QP that would materially affect the estimation of Mineral Reserves that are not discussed in this Report.


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22.7Mine Plan

Hidden Valley mining is completed by conventional truck and excavator methods. Material is grade controlled through ore benches using RC drilling and sampling methods with samples analysed on-site with analysed results fed into the mining model. This is followed by production drill and blasting using standard hammer drilling with downhole and bench services provided by Maxam blasting services. Mining is then completed by a fleet of five Komatsu excavators and 85t rear dump trucks for load and haulage to engineered waste dumps or ROM stockpiles.

The mining method is appropriate to the dimension and mineralisation associated with the orebody, and the LOM is achievable based on the parameters presented

22.8Processing

The QP notes:

•the plant has been operational since 2009 and generally meets its design criteria;

•the plant uses conventional designs and equipment (other than the pipe conveyor); and

•the technology associated with the ore processing is an industry standard for this style of deposit.

22.9Infrastructure

22.10Environmental, Permitting and Social Considerations

In compliance with HV MOA, MCGL submits compliance reports to CEPA through the Environment Department. These are also communicated from time to time to Landowner Association, Landowners, Provincial Government, Local Level Governments and local communities through Community Affairs Stakeholder meetings or through similar meetings with all stakeholders.

CEPA and MPG under the MOA are also required to monitor and assess the impact of the Project on communities downstream.

Under the MOA, Royalties is also paid to Highway and River communities.

An array of technical studies are in progress to support advances in mine closure planning. The outcomes of these work programs will inform the Final RMCP, the approval of which by the State of PNG will be supported by extensive closure-specific stakeholder engagement programs.

22.11Markets

The QP is of the opinion that the marketing and commodity price information is suitable to be used in the cash flow evaluations supporting Mineral Reserve estimates.

22.12Capital and Operating Cost Estimates

The QP notes that the operating and capital cost are well known from +10 years of operations and maintenance records. Cost control on the site is good and there is a high confidence around the cost estimates.

22.13Economic Analysis

The QP notes:

•the economic analysis is presented on a 100% basis and Harmony holds a 100% interest in the Hidden Valley;

•the IRR cannot be calculated due to ongoing positive cashflows. The projected NPV is USD291m at a 9% discount rate; and


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•the Hidden Valley NPV is most sensitive to changes in the gold price and gold grade, and least sensitive to changes in operating costs.


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23Recommendations

Section 229.601(b)(96) (23)

The mine is in operation and a suitable budget needs to be re-evaluated annually to extract the Mineral Reserves as declared.


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24References

Section 229.601(b)(96) (24)

Abelle Limited, 2003. Hidden Valley Project Feasibility Study, Section 3 Geology. Unpublished Internal Report.

Adams, P., 1998, Annual Report for EL677 (Kuper Range); 18th February 1997 to 17th February, 1998. Morobe Consolidated Goldfields.

Abzalov, M., 2006. Localised uniform conditioning (LUC): A new approach for direct modelling of small blocks, in Mathematical Geology (The International Association for Mathematical Geology).

ALS, 2018. Quantitative Automated Mineralogical Analysis conducted on Six Gold Samples from the Metallurgical Test Work & Optimisation – Hidden Valley Stage 5 Mining Development for Morobe Consolidated Goldfields Limited. Mineralogy Report MIN3208. MCG Internal Report.

Berry, M., De Vitry, C., Dorricott, M, and Pilkington, M., 2019, Hidden Valley Operations; 2019 Mineral Resource and Mineral Reserve Review. Derisk report P1819-24. Internal unpublished MCGL report. 39pp.

Bodorkos, S., Sheppard, S., Saroa, D., Tsiperau, C.U. & Sircombe, K.N., 2013. New SHRIMP U-Pb zircon ages from the Wau-Bulolo region, Papua New Guinea. Geoscience Australia Record 2013/25; Mineral Resources Authority, Papua New Guinea, Technical Note TN 2013/05. Geoscience Australia, Canberra.

Consensus Economics Inc. (2022, June 20). Consensus Economics. Energy and Metals Consensus Forecasts.

Davies, HL., and Jaques, AL., 1984. Emplacement of ophiolite in Papua New Guinea, Geological Society of London Special Publication 13, 341-350.

Derisk, 2019. External 3rd Party Review: “P1819-24 MCGL HVO 2019 review Final”, August 2019, Derisk Audit of HVO EOFY19 resources and reserves.

Dow, DB., Smit, AJ., and Page, RW., 1974. 1:250 000 Geological Series Explanatory Notes, WAU, Papua New Guinea.

Geological Survey of Papua New Guinea.

Gleeson, E. 2016. Technical Review of Hidden Valley, AMC report 315019_2.Unppublished internal Harmony Report. 65pp.

Gray, D., 2010, Structural Geology Review, Hidden Valley Gold Mine, PNG. Unpublished internal HVJV report. 69pp.

Gossage, B, 2012. Hidden Valley Kaveroi Project, Grade Estimation Study. ERGM Consulting. 84 pages.

HGSE Asia, 2019. Memorandum: “HGSEAsia - Planning Parameters - FY2020.v2”, HGSEAsia Memorandum, April 2020. Updated Metal Price assumptions for Resources and Reserves.

Hoppe, F.E.P. 1999, Structural Interpretation of the hidden valley and kaveroi gold and silver deposits from the structural measurements in drill core. Morobe Consolidated Goldfield(Pty)Ltd. MCG.60.30 (MGC199).

https://www.gold.org/goldhub/data/gold-prices. Accessed 22 July 2022.

https://www.nasdaq.com/market-activity/commodities/si%3acmx/historical. Accessed 24 September 2021.

https://www.silverinstitute.org/Silverinstitute.org. Accessed 02 August 2022.

Joint Ore Reserves Committee (JORC) of the Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia, December 2004. Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code)

Kentwell, D., 2016. Hidden Valley 2016 Resource Review, Morobe Mining Limited – Hidden Valley Services Limited. Internal SRK report for HVJV. pp43.

LBMA, distributed by Refinitive, retrieved from S&P Global Market Intelligence.


Effective Date: 30 June 2022 115


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

Little, TA., Hacker., BR., Gordon, SM., Baldwin, SL., Fitzgerald, PG., Ellis, S and Korchinski, M., 2011. Diapiric exhumation of Earth’s youngest (UHP) eclogites in the gneiss domes of the D’Entrecasteaux Islands, Papua New Guinea. Tectonophysics v. 510., pp. 39-68.

Lowenstein, P.L., 1982. Economic geology of the Morobe Goldfield. Papua New Guinea. Geological Survey. Memoir, 9.

Nelson, R.W., Bartram, JA and Christie, MH., 1990. Hidden Valley gold-silver deposit, in Geol of the min deps of Australia and PNG (ED; F Hughes), pp 1773-1776. The Australasian Institute of Mining and Metallurgy.

Onley, P.G., 1999, Review of Morobe Project, Papua New Guinea for Aurora Gold Ltd. Mining and Resource Technology(Pty)ltd. Internal MCG Report. P40.

Page, R.W., 1971. The geochronology of igneous rocks in the New Guinea region. PhD thesis, Australian National University. (Unpublished).

QG, 2011. June 2011. Bi-Variate Direct Block Simulation for Hidden Valley. Unpublished Consultants Report. June, 2011.

Reid, R., 2022. Hidden Valley Mineral Resource Report, April 2022, Morobe PNG. Harmony Gold. Unpublished internal company report.

Reid, R., 2022. Harmony Gold Mineral 2022 Resource and Reserve Statement. Harmony Gold. Unpublished internal company report.

Ross, D., 2022. Hidden Valley Operations: June 2022 Mineral Reserve Report. Harmony Gold. Unpublished internal company report.

Ross, D., 2022. Hidden Valley FY23 LOM Budget. Harmony Gold. Unpublished internal company report.

RSG Global, 2006. Hidden Valley Project. Mineral Resource Estimate for the Hidden Valley Gold-Silver deposits. Unpublished Consultants Report. March 2006.

S&P Global Market Intelligence. Accessed 02 August 2022.

S&P Global Market Intelligence. (2022, July 08). S&P Global Market Intelligence, Metals and Mining Research, Consensus price forecasts – Gloomy economy weighs on prices.

Stewart, R., 2012. Hidden Valley Mineral Resource Report for Hidden Valley Kaveroi, June 2011. Unpublished internal Company document.

Twomey, G and Dobe, J, 2015, Geological Compilation of the Wafi-Golpu Camp. Footprint Resources(Pty)Ltd. Unpublished internal Company document.

Williamson A. and Hancock, G., 2005 (eds). The Geology and Mineral Potential of Papua New Guinea. Papua New Guinean Department of Mining. 152p.

World Gold Council. (2022, July 18). World Gold Council, Gold Hub, Gold mine production: Gold Production by Country | Gold Production | Goldhub.


Effective Date: 30 June 2022 116


			Technical Report Summary for Hidden Valley, Morobe, Papua New Guinea

25Reliance on Information Provided by the Registrant

Section 229.601(b)(96) (25)

Table 25-1: Other Specialists


Name	Specialist	Area of Responsibility	Association / Company
M Ebersohn	Finance/Costing	Financial Leader - Management Account	HSEAsia
J Chenery	Social Planning	Social Performance Planning Principal	HSEAsia
M Rynhoud	Tailings	Infrastructure	KCB
S Bierschenk	Power	Infrastructure	HSEAsia


Effective Date: 30 June 2022 117

HARMONY GOLD MINING COMPANY LIMITED

Technical Report Summary of the

Mineral Resources and Mineral Reserves

for

Wafi-Golpu Project

Morobe Province, Papua New Guinea

Effective Date: 30 June 2022

Final Report Date: 12 July 2022


			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


IMPORTANT NOTICE This Technical Report Summary has been prepared for Harmony Gold Mining Company Limited in support of disclosure and filing requirements with the United States Securities and Exchange Commission’s (SEC) under Regulation S-K 1300; 229.601(b)(96). The quality of information, estimates, and conclusions contained in this Technical Report Summary apply as of the effective date of this report. Subsequent events that may have occurred since that date may have resulted in material changes to such information, estimates and conclusions in this summary. No other party is entitled to rely on this report beyond its intended use and any reliance by a third party on this report is done so at that party’s own risk.


Effective Date: 30 June 2022 i


			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Signature Page

/s/ Ronald Reid

___________________________________

Mr Ronald Reid

BSc(Hons). Grad.Dip(GIS)

FAIG, MAusIMM

Group Resource Geologist

Harmony Gold (PNG Services) Pty Limited

/s/ Geoff Dunstan

___________________________________

Signed by authorised signatory for and on behalf of

Caveman Consulting (Pty) Limited

/s/ Sarah Watson

____________________________________

Ms Sarah Watson

MSc, BSc(Hons)

MAusIMM

Group Environment, Social and Governance Manager

Harmony Gold (PNG Services) Pty Limited

Effective Date: 30 June 2022

Final Reporting: 12 July 2022

/s/ Greg Job

____________________________________

Mr Greg Job

BSc. MSc (Min Econ)

MAusIMM

Executive General Manager (Growth & Resource Development)

Harmony Gold (PNG Services) Pty Limited

/s/ Morne Swart

____________________________________

Mr Morne Swart

BE (Met Eng), MBA

FAusIMM (CP)

RPEQ, MIEPNG

General Manager – Projects and Processing

Harmony Gold (PNG Services) Pty Limited

/s/ Matthew Koehler

____________________________________

Mr Matthew Koehler

BBus Acc, Grad Dip (CA)

CAANZ

Manager – Commercial South East Asia

Harmony Gold (PNG Services) Pty Limited


Effective Date: 30 June 2022 ii


			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

List of Contents


1	Executive Summary			1
2	Introduction			10
3	Property Description and Location			11
	3.1	Mineral Tenure		11
	3.2	Property Permitting Requirements		11
4	Accessibility, Climate, Local Resources, Infrastructure and Physiography			15
	4.1	Accessibility		15
	4.2	Physiology and Climate		15
	4.3	Local Resources and Infrastructure		15
5	History			16
	5.1	Historical Ownership and Development		16
	5.2	Historical Exploration		16
	5.3	Previous Mineral Resource and Mineral Reserve Estimates		17
	5.4	Past Production		17
6	Geological Setting, Mineralisation and Deposit			18
	6.1	Regional Geology		18
	6.2	Local Geology		18
	6.3	Property Geology		21
		6.3.1	Golpu	21
		6.3.2	Wafi	21
		6.3.3	Nambonga	21
		6.3.4	Structure	21
	6.4	Mineralisation		23
		6.4.1	Golpu	23
		6.4.2	Wafi	25
		6.4.3	Nambonga	25
	6.5	Deposit Type		25
	6.6	Commentary on Geological Setting, Mineralisation and Deposit		26
7	Exploration			27
	7.1	Topographic Survey		27
	7.2	Geological Mapping		27
	7.3	Geophysical Surveys		27
	7.4	Petrology, Mineralogy, and Research Studies		27
	7.5	Geochemical Sampling		28
	7.6	Surface Drilling Campaigns		28
	7.7	Diamond Drilling Campaigns, Procedures, Sampling, Recoveries and Results		30
		7.7.1	Drilling Methods	30
		7.7.2	Collar Surveys	30
		7.7.3	Downhole Surveys	30
		7.7.4	Logging Procedures	31
		7.7.5	Drilling Results	32
		7.7.6	Core Recovery	32
		7.7.7	Sample Length and True Thickness	32
		7.7.8	Drill Hole Completed Post Mineral Resource Database Close-out	32
	7.8	RC Drilling Campaigns, Procedures, Sampling, Recoveries and Results		33
		7.8.1	Drilling Methods	33
		7.8.2	Collar Surveys	33
		7.8.3	Downhole Surveys	33
		7.8.4	Logging	33


Effective Date: 30 June 2022 iii


			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


		7.8.5	Drilling Results	33
		7.8.6	Chip Recovery	33
		7.8.7	Sample Length and True Thickness	33
	7.9	Hydrogeology		34
	7.10	Geotechnical Data		34
	7.11	Commentary on Exploration		34
8	Sample Preparation, Analyses and Security			35
	8.1	Sampling Method and Approach		35
		8.1.1	Core samples	35
		8.1.2	RC Samples	35
	8.2	Density Determination		36
	8.3	Sample Security		36
	8.4	Sample Storage		37
	8.5	Laboratories Used		37
	8.6	Laboratory Sample Preparation		37
	8.7	Assaying Methods and Analytical Procedures		38
	8.8	Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)		38
		8.8.1	Golpu	39
		8.8.2	Wafi	39
		8.8.3	Nambonga	39
	8.9	Comment on Sample Preparation, Analyses and Security		39
9	Data verification			43
	9.1	Databases		43
	9.2	Data Verification Procedures		43
		9.2.1	Internal Data Verification	43
	9.3	Limitations to the Data Verification		45
	9.4	Comment on Data Verification		45
10	Mineral Processing and Metallurgical Testing			46
	10.1	Extent of Processing, Testing, and Analytical Procedures		46
	10.2	Degree of Representation of the Mineral Deposit		46
	10.3	Analytical Laboratory Details		46
	10.4	Golpu Test Results and Recovery Estimates		47
		10.4.1	Flowsheet Development	47
		10.4.2	Variability Tests	48
		10.4.3	Flotation Modelling	48
		10.4.4	Grind Optimisation	49
		10.4.5	Effect of Ore Composition on Flotation Performance	49
		10.4.6	Effect of Ageing on Metallurgical Performance	49
		10.4.7	Alternative Flowsheet	53
		10.4.8	Concentrate Solution Quality	53
		10.4.9	Slurry Pumping and Hydraulic Testwork	53
		10.4.10	Thickener Testwork	53
		10.4.11	Filtration Rates and Equipment	53
		10.4.12	Recoveries and Concentrate Produced	53
	10.5	Wafi Test Results and Recovery Estimates		54
		10.5.1	Mineralogy	54
		10.5.2	Cyanidation Testwork	54
		10.5.3	Flotation Testwork	54
		10.5.4	Fine Grinding of Concentrate	55
		10.5.5	Pre-Oxidation Processing	55
		10.5.6	Alkaline Leaching	56


Effective Date: 30 June 2022 iv


			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


		10.5.7	Comminution Tests	56
		10.5.8	Recoveries and Doré Produced	56
	10.6	Commentary on Mineral Processing and Metallurgical Testing		57
11	Mineral Resource Estimate			58
	11.1	Global Statistics		58
	11.2	Golpu Mineral Resource Estimation Methods		58
		11.2.1	Geological Database	58
		11.2.2	Geological Interpretation and Modelling Approach	58
		11.2.3	Exploratory Data Analysis	59
		11.2.4	Composites	59
		11.2.5	Grade Capping / Outlier Restrictions	59
		11.2.6	Density (Specific Gravity) Assignment	60
		11.2.7	Variography	60
		11.2.8	Estimation / Interpolation Methods	60
		11.2.9	Model Validation	61
		11.2.10	Mineral Resource Evaluation	61
	11.3	Wafi Mineral Resource Estimation Methods		62
		11.3.1	Geological Database	62
		11.3.2	Geological Interpretation and Modelling Approach	62
		11.3.3	Exploratory Data Analysis	63
		11.3.4	Composites	63
		11.3.5	Grade Capping / Outlier Restrictions	63
		11.3.6	Density (Specific Gravity) Assignment	64
		11.3.7	Variography	64
		11.3.8	Estimation / Interpolation Methods	64
		11.3.9	Model Validation	65
		11.3.10	Mineral Resource Evaluation	65
	11.4	Nambonga Mineral Resource Estimation Methods		66
		11.4.1	Geological Database	66
		11.4.2	Geological Interpretation and Modelling Approach	66
		11.4.3	Exploratory Data Analysis	67
		11.4.4	Composites	67
		11.4.5	Grade Capping / Outlier Restrictions	67
		11.4.6	Density (Specific Gravity) Assignment	67
		11.4.7	Variography	68
		11.4.8	Estimation / Interpolation Methods	68
		11.4.9	Model Validation	68
		11.4.10	Mineral Resource Evaluation	68
	11.5	Mineral Resource Classification and Uncertainties		69
		11.5.1	Golpu	69
		11.5.2	Wafi	71
		11.5.3	Nambonga	72
	11.6	Mineral Resource Estimate		72
	11.7	Mineral Resource Reconciliation		75
	11.8	Comment on Mineral Resource Estimates		75
12	Mineral Reserve Estimate			76
	12.1	Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve		76
		12.1.1	Proposed Mining Case	76
		12.1.2	Geometallurgical Domains and Recovery	77
		12.1.3	Net Smelter Return	77
	12.2	Modifying Factors		79


Effective Date: 30 June 2022 v


			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


	12.3	Mineral Reserve Estimate		79
	12.4	Mineral Reserve Reconciliation		82
	12.5	Commentary on Mineral Reserve Estimate		82
13	Mining Method			83
	13.1	Mine design		83
		13.1.1	Access	83
		13.1.2	Cave Design	86
		13.1.3	Ventilation	87
	13.2	Mine Plan Development and Life of Mine Schedule		87
	13.3	Geotechnical and Geohydrological Considerations		87
		13.3.1	Geotechnical	87
		13.3.2	Geohydrological	90
	13.4	Mining Operations		90
	13.5	Mining Rates		90
	13.6	Mining Equipment and Machinery		90
	13.7	Grade and Dilution Control		91
	13.8	Ore transport		91
	13.9	Mining Personnel		92
	13.10	Commentary on Mining Method		92
14	Processing and Recovery Methods			93
	14.1	Mineral Processing Description		93
	14.2	Plant Throughput, Design, Equipment Characteristics and Specifications		96
		14.2.1	Comminution Circuit	96
		14.2.2	Flotation Circuit	97
		14.2.3	Copper Regrind Milling Circuit	98
		14.2.4	Pyrite Regrind Milling Circuit	98
	14.3	Energy, Water, Process Material and Personnel Requirements		98
		14.3.1	Energy	98
		14.3.2	Water	98
		14.3.3	Process Materials	99
		14.3.4	Personnel	99
	14.4	Commentary on the Processing and Recovery Methods		99
15	Infrastructure			100
	15.1	Surface Infrastructure		100
		15.1.1	Ore and Waste Rock Storage Facilities	100
		15.1.2	Tailings Storage Facilities	104
		15.1.3	Power and Electrical	104
		15.1.4	Water Usage	105
		15.1.5	Pipelines	105
		15.1.6	Logistics and Supplies	105
	15.2	Underground Infrastructure and Shafts		106
	15.3	Commentary on Infrastructure		106
16	Market Studies			107
	16.1	Gold		107
		16.1.1	Market Overview	107
		16.1.2	Global Production and Supply	107
		16.1.2.1	New Mine Production	107
		16.1.3.2	Recycling	107
		16.1.3	Global Consumption and Demand	107
		16.1.3.1	Jewellery	108
		16.1.3.2	Investment	108


Effective Date: 30 June 2022 vi


			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


		16.1.3.3	Currency	108
		16.1.4	Gold Price	108
	16.2	Copper		108
		16.2.1	Market Overview	110
		16.2.2	Global Production and Supply	110
		16.2.3	Global Consumption and Demand	110
		16.2.4	Copper Price	111
	16.3	WGJV Concentrate Specification		111
	16.4	Typical Concentrate Payment Terms		112
	16.5	WGJV Marketing Strategy		112
	16.6	Commentary on Market Studies		113
	16.7	Material Contracts		113
17	Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups			114
	17.1	Results of Environmental Studies		114
	17.2	Waste and Tailings Disposal, Monitoring & Water Management		114
	17.3	Permitting and Licences		115
		17.3.1	Permits Required for Development	115
		17.3.2	Memorandum of Understanding with Government of PNG	116
	17.4	Local Stakeholder Plans and Agreements		116
	17.5	Mine Closure Plans		117
	17.6	Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups		118
	17.7	Local Procurement and Hiring		118
	17.8	Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups		118
18	Capital and Operating Costs			119
	18.1	Capital Costs		119
	18.2	Operating Costs		119
	18.3	Comment on Capital and Operating Costs		120
19	Economic Analysis			121
	19.1	Key Economic Assumptions and Parameters		121
		19.1.1	Metallurgical Recoveries	121
		19.1.2	Metal Prices	121
		19.1.3	Exchange Rate	121
		19.1.4	Royalties	121
		19.1.5	Working Capital	122
		19.1.6	Taxes	122
		19.1.7	Closure Costs and Salvage Value	122
		19.1.8	Financing	122
		19.1.9	Inflation	122
		19.1.10	Summary	123
	19.2	Economic Analysis		123
	19.3	Sensitivity Analysis		127
	19.4	QP Comments		127
20	Adjacent properties			129
21	Other Relevant Data and Information			129
22	Interpretation and Conclusions			129
	22.1	Mineral Tenure		129
	22.2	Geology and Mineralisation		129
	22.3	Exploration, Drilling and Analytical Data Collection in Support of Mineral Resource Estimation		129


Effective Date: 30 June 2022 vii


			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


	22.4	Metallurgical Testwork	130
	22.5	Mineral Resource Estimates	130
	22.6	Mineral Reserve Estimates	130
	22.7	Mine Plan	131
	22.8	Recovery Plan	131
	22.9	Infrastructure	132
	22.10	Environmental, Permitting and Social Considerations	132
	22.11	Markets	133
	22.12	Capital Cost Estimates	133
	22.13	Operating Cost Estimates	134
	22.14	Economic Analysis	134
23	Recommendations		135
24	References		136
25	Reliance on Information Provided by the Registrant		139


Effective Date: 30 June 2022 viii


			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

List of Figures


Figure 3-1: Location of Wafi-Golpu			12
Figure 3-2: Mineral Tenure of Wafi-Golpu			12
Figure 6-1: Regional Geology and Lithotectonic Domains			19
Figure 6-2: Local Geology			19
Figure 6-3: Alteration Plan			20
Figure 6-4: Schematic Cross Section of Wafi-Golpu Deposits			20
Figure 6-5: Schematic Tectono Stratigraphic Column			22
Figure 6-6: Cross section Through Golpu, Wafi and Nambonga Deposits			22
Figure 6-7: Cross Section Showing Golpu Sulphide Zonation			24
Figure 7-1: Location of Drill Holes			29
Figure 10-1: Graph of Golpu LEAN Flowsheet and Flowsheet Model			50
Figure 10-2: Graph of Golpu Flowsheet Model			50
Figure 10-3: Graph of Copper Recovery versus Primary Grind			51
Figure 10-4: Graph of Gold Recovery versus Grind Size			51
Figure 10-5: Graph of Ore Blend Testwork Results			52
Figure 11-1: Location and Classification of Mineral Resources			70
Figure 12-1: Approximate Location and Classification of Golpu Mineral Reserves			81
Figure 13-1: Schematic of Mine Layout			84
Figure 13-2: Plan View of Mine Layout by Block Cave Levels			85
Figure 13-3: Graph of Wafi-Golpu LOM Plan – Tonnes and Grade			88
Figure 13-4: Graph of Wafi-Golpu LOM Plan - Metal Produced			88
Figure 14-1: Golpu LEAN Flowsheet			94
Figure 14-2: Golpu General Flowsheet			95
Figure 15-1: Plan of Site Surface Infrastructure and Beginning of the Infrastructure Corridor			101
Figure 15-2: Plan of the Surface Infrastructure at the Port			102
Figure 15-3: Schematic 3D view of the Surface Infrastructure at the Mine Site			103
Figure 16-1: Graph of Annual Gold Price History – USD/oz			109
Figure 16-2: Graph of Annual Copper Price History – USD/lb			109
Figure 19-1: Graph of Sensitivity of IRR			128
Figure 19-2: Graph of Sensitivity of NPV			128


Effective Date: 30 June 2022 ix


			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

List of Tables


Table 1-1: Summary of the Golpu Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-6			3
Table 1-2: Summary of the Wafi Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-6			4
Table 1-3: Summary of the Nambonga Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-6			5
Table 1-4: Summary of the Golpu Mineral Reserves as at 30 June 2022 1-5			6
Table 1-5: Summary Capital Cost Estimate for Golpu			7
Table 1-6: Summary Operating Cost Estimate for Golpu			8
Table 1-7: Status of Environmental Permits and Licences			9
Table 2-1: QP Qualifications, Section Responsibilities and Personal Inspections			10
Table 3-1: Summary of Mineral Rights for Wafi-Golpu			11
Table 3-2: Detail Relating to Permit Applications			13
Table 5-1: Summary of Historical Ownership Changes and Activities of Wafi-Golpu			16
Table 7-1: Summary of All Drill Holes			28
Table 7-2: List of Drill Holes by Used in Mineral Resource Estimates			30
Table 8-1: QA/QC Protocols for Golpu			40
Table 8-2: QA/QC Protocols for Wafi			41
Table 10-1: Comminution Parameters			47
Table 10-2: Statistical Summary of Variability Results – Total Copper Concentrate			48
Table 10-3: Average Variability Results versus Bulk Flotation Concentrate			48
Table 11-1: Global Multi Element Grade Statistics			58
Table 11-2: Multi Element Statistics for the Golpu Model Limits			58
Table 11-3: Wafi Confidence Category Classification Input Considerations			71
Table 11-4: Summary of the Golpu Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-6			73
Table 11-5: Summary of the Wafi Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-6			74
Table 11-6: Summary of the Nambonga Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-5			75
Table 12-1: Parameters for Column Heights			77
Table 12-2: Metallurgical Recovery Assumptions			78
Table 12-3: NSR Input Parameters			79
Table 12-4: Modifying Factors			79
Table 12-5: Summary of the Golpu Mineral Reserves as at 30 June 2022 1-5			80
Table 13-1: Block Cave Layout Assumptions			86
Table 13-2: Geotechnical Results			89
Table 13-3: List of Mining Equipment			90
Table 13-4: Steady State Full Time Employees by Department			92
Table 14-1: Mill Equipment Specifications			96
Table 14-2: Residence Times			97
Table 14-3: Mass Pull Assumptions			97
Table 14-4: Flotation Cell Numbers and Sizing			98
Table 16-1: Typical Concentrate Chemical Analysis			111
Table 16-2: Marketing Assumptions Used in 2018 FSU			112
Table 17-1: Approvals Register			115
Table 18-1: Summary capital Cost Estimate for Golpu			119
Table 18-2: Summary Operating Cost Estimate for Golpu			120
Table 19-1: Exchange Rate Assumptions			121
Table 19-2: Key Financial Metrics			123
Table 19-3: Cash Flow for Golpu Project			124


Effective Date: 30 June 2022 x


			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Units of Measure and Abbreviations


Unit / Abbreviation			Description or Definition
%w/w			Percent by mass
€			Euro
°C			degrees Celsius
µm			Micrometres, micron
2D			Two-dimensional
3D			Three-dimensional
ACE			Allowable capital expenditure
AE			Abnormal expenditure
Ag			Silver
Al			Aluminium
AMC			AMC Consultants (Pty) Limited
AMD			Acid and metalliferous drainage
amsl			Above mean sea level
AngloGold Ashanti			AngloGold Ashanti Limited
APT			Additional profit tax
Ar			Argon
ARV			Asset replacement value
As			Arsenic
ASS			Atomic absorption spectroscopy
ATV			Acoustic televiewer
Au			Gold
Aurora			Aurora Gold Limited
AusD			Australian Dollar
Ave.			Average
Axb			Ore hardness value
BBWi			Bond Ball Mill Work index
BC			Block cave
bcm			Bank cubic metres
Bi			Bismuth
Bn			Billion
BOCO			Base of complete oxidation
BQ			Core size diameter of 36.5mm
C&I			Control and instrumentation
c.			Approximately
Capex			Capital expenditure
Caveman Consulting			Caveman Consulting (Pty) Limited
CEPA			Conservation and Environment Protection Authority PNG (previously Department of Environment and Conservation)
CIF			Cost Insurance and Freight
CIL			Carbon-In-Leach
CIP			Carbon-In-Pulp
Cl			Chlorine
CLR			Carbon Leader Reef
cm			Centimetre
cmg/t			Centimetre-grams per tonne
CODM			Chief Operating Decision-Maker
Company			Harmony Gold Mining Company Limited
COV			Coefficient of Variation


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


CPS			Controlled potential sulphidisation
CRAE			CRA Exploration (Pty) Limited
CRM			Certified Reference Material
CSA			Canadian Securities Administrators
CSAMT			Controlled source audio-frequency magneto- telluric
Cu			Copper
DBSim			Direct block simulation
DEC			Department of Environment and Conservation
DGPS			Digital GPS
dmt			Dry metric tonne
DOF			Depth of failure
doré			Multi metal bar delivered a refinery for refining
DSTP			Deep sea tailings placement
DWi			Drop weight index
EIA			Environmental Impact Assessment
EIR			Environmental Inception Report
EL			Exploration Licence
Elders			Elders Resources Limited
EMPR			Environmental Management Programme
EMS			Environmental Management System
EP			Environmental Permit
ESG			Environmental Social and Governance
ETF			Exchange traded funds
FAusIMM			Fellow of the Australasian Institute of Mining and Metallurgy
FCWT			Foreign Contractor Withholding Tax
Fe			Iron
FOB			Free on board
FS			Feasibility Study
FSU			Feasibility Study Update (2018)
FY			Financial year
g			Gram
g/t			Grams per metric tonne
Genalysis Jakarta			Genalysis Jakarta laboratory
GHG			Greenhouse gas
GIS			Geographic information system
GPS			Global Positioning System
Harmony			Harmony Gold Mining Company Limited
Hg			Mercury
HOD			Height of draw
HPE			Hydro-powered
HQ			Core size diameter of 63.5mm
HR			Human resources
HV			High voltage (>1,000V)
ICP			Inductively-coupled plasma
ID2			Inverse distance squared
IFC			International Finance Corporation
IFO			Intermediate fuel oil
in			Inch
IP			Inter polar
IRR			Internal rate of return
IRS			Internal rock strength


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


ISO			International Standards Organisation
IT			Information technology
J			Joule
JORC Code			Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
JV			Joint venture
K			Potassium
kg			Kilogram
km			Kilometre
km2			Square kilometre
kWh			Kilowatt-hour
L			Litre
L/s			Litres per second
lb			Pound
LBMA			London Bullion Market Association
LDL			Lower detection limit
LEAN			Appropriately considered scope, cost, specification, strategy
LHD			Load haul dump vehicle
LiDAR			Light imaging detection and ranging
LOM			Life of Mine
m			Metre
M or m			Million
m3/hr			Cubic metres per hour
masl			Metres above sea level
Mg			Manganese
Mo			Molybdenum
MOU			Memorandum of understanding
Moz			Million troy ounces
MS			Multi-spectral
Mt			Million tonnes
Mtpa			Million tonnes per annum
Mtpm			Million tonnes per month
NAF			Non acid forming
Newcrest			Newcrest Mining Limited
Ni			Nickel
NI43-101			National Instrument 43-101 Report
NN			Nearest neighbour
No.			Number
NPV			Net present value
NQ			Core size diameter of 47.6mm
NRG			Non-refractory gold mineralisation
NSR			Nett smeler return
NZD			New Zealand Dollar
Ø			Diameter
OES			Optical emission spectroscopy
OH&S			Occupational health and safety
OK			Ordinary kriging
OMC			Orway Mineral Consultants
Opex			Operating expenditure
OTC			Over the counter
oz			Troy ounce
PAF			Potentially acid forming


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


Pb			Lead
PFD			Process flow diagram
PFS			Pre Feasibility Study
PGK			PNG Kina
pH			Power of hydrogen (acidity or alkalinity of a solution)
Pilbara Lae			Pilbara Laboratories in Lae
PNG			Independent State of Papua New Guinea
POX			Pressure oxidation
ppm			Parts per million
PQ			Core size diameter of 85.0mm
PSD			Particle Size Distribution
Pty			Proprietary
PVC			Polyvinyl chloride
Q			Quarter
QA/QC			Quality Assurance/Quality Control
QKNA			Quantitative kriging neighbourhood analysis
QP			Qualified Person
Rb			Rubidium
RC			Reverse circulation drilling
RG			Refractory gold
RL			Relative level (used for Wafi-Golpu)
RMR			Rock Mass Rating
ROM			Run-of-Mine
RQD			Rock quality designation
S			Sulphur
SAG			Semi-autogenous grinding
Sb			Antimony
SEC			Securities and Exchange Commission
SGCS			Sequential Gaussian conditional simulation
SMBS			Sodium metabisulphite
SMC			Sulphide association, comminution
SML			Special Mining Lease
SP			Self potential
Sr			Strontium
SRK			SRK Consulting
SRM			Standard reference material
STD			Standard Deviation
SX-EW			Solvent extraction electro-wining
t			Metric tonne
t/m3			Tonne per cubic metre
TOFR			Top of fresh
TRS			Technical Report Summary
TSF			Tailings storage facility
USc			United States cents
USD			United States Dollars
USD/oz			United States Dollar per troy ounce
USD/t			United States Dollar per tonnes
W			Watt
WGJV			Wafi-Golpu Joint Venture
WLG			Wafi local grid
wmt			Wet metric tonne


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


WRSF			Waste rock storage facility
XRD			X-ray diffraction
ZAR			South African Rand
ZAR/kg			South African Rand per kilogram
Zn			Zinc


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Glossary of Terms


Term			Definition
Block cave			An underground hard rock mining method that involves undermining an ore body, allowing it to progressively collapse under its own weight.
Co-kriging			A method that is used to predict the value of the point at unobserved locations by sample points that are known to be spatially interconnected by adding other variables that have a correlation with the main variable or can also be used to predict 2 or more variables simultaneously.
Concentrate			The product from the Watut Process Plant, having been pumped as a slurry to the Port Facilities Area and dewatered at the Concentrate Filtration Plant for export.
Cut-off grade			Cut-off grade is the grade (i.e. the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing “prospects of economic extraction,” the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Decline			A sloping underground tunnel excavated for mobile equipment access from surface or from level to level.
Decline portal			The above ground access point to the decline.
Dilution			Unmineralized rock that is by necessity, removed along with ore during the mining process that effectively lowers the overall grade of the ore.
Domain (modelling)			The area extent of a model.
Drawdown			The change in hydraulic head observed in an aquifer, typically due to removal of water from the aquifer.
DSTP outfall			The end of the DSTP outfall pipelines where the tailings discharge into the ocean in the Huon Gulf.
Economically viable			Economically viable, when used in the context of Mineral Reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the Mineral Reserve is economically viable under reasonable investment and market assumptions.
Environmental Impact Statement			A document that provides a comprehensive assessment of potential environmental and social impacts (or benefits) associated with a project, in accordance with Section 53 of the PNG Environment Act 2000.
Equator Principles			A risk management framework, voluntarily adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects and is primarily intended to provide a minimum standard for due diligence to support responsible risk decision-making.
Fault			A planar fracture or discontinuity in a volume of rock, across which there has been significant displacement as a result of rock mass movement.
Harmony Gold Mining Company Limited			The ultimate holding company of Wafi Mining Limited.
Head grade			The average grade of ore fed into the mill.
Hydrogeology			Area of study concerning the distribution and movement of groundwater in the soil and rocks of the Earth's crust (commonly in aquifers).
Indicated Mineral Resource			Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a probable Mineral Reserve.
Inferred Mineral Resource			Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a Mineral Reserve.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


Infrastructure Corridor			The area encompassing the Project infrastructure linking the Mine Area and the Coastal Area, being corridors for pipelines, roads and laydown areas. The proposed concentrate pipeline, terrestrial tailings pipeline and fuel pipeline will connect the Mine Area to the Coastal Area. A proposed Mine Access Road and Northern Access Road will connect the Mine Area to the Highlands Highway. New single-lane bridges are proposed over the Markham, Watut and Bavaga rivers. Laydown areas will be located at key staging areas.
Kriging			A method of interpolation based on Gaussian process governed by prior covariances. It uses a limited set of sampled data points to estimate the value of a variable over a continuous spatial field
LEAN			A term which means ‘Appropriately considered scope, cost, specification, standards, strategy’.
Level 2B Environment Permit			Authority under the PNG Environment Act 2000 to carry out Level 2 (Category B) activities.
Level 3 Environment Permit			Authority under the PNG Environment Act 2000 to carry out Level 3 activities.
Life of the Mine			The time in which, through the employment of the available capital, the ore reserves, or such reasonable extension of the ore reserves as conservative geological analysis may justify, will be extracted.
Measured Mineral Resource			Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
Mine Area			The area encompassing the proposed block cave mine and nearby infrastructure, including decline portal terraces, waste rock dump, Watut Process Plant, power generation facilities, laydown areas, water treatment facilities, any quarry or borrow pit, wastewater discharge and raw water make-up pipelines from the Watut River, raw water dam, sediment control structures, roads and accommodation facilities for the construction and operations workforces.
Mine Call Factor			The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.
Mineral Reserve			Mineral Reserve is an estimate of tonnage and grade or quality of Indicated and Measured Mineral Resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a Measured or Indicated Mineral Resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mineral Resource			Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.
Modifying Factors			Modifying factors are the factors that a qualified person must apply to Indicated and Measured Mineral Resources and then evaluate in order to establish the economic viability of Mineral Reserves. A qualified person must apply and evaluate modifying factors to convert Measured and Indicated Mineral Resources to Proven and Probable Mineral Reserves. These factors include, but are not restricted to: mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the modifying factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Newcrest Mining Limited			The ultimate holding company of Newcrest PNG 2 Limited.
Non-Acid Forming			Chemically-stable materials that will not generate any by-products which could affect the environment.
Port Facilities Area			The area encompassing the proposed Project facilities located at the Port Area, including the concentrate filtration plant and materials handling, storage, ship loading facilities and filtrate discharge pipeline. This area may in the future need to include fuel oil handling and storage facilities. A site adjacent to Berth 6 (also known as the Tanker Berth) has been nominated as the preferred option.
Potential Acid Forming			Material that contains sulphidic compounds with the potential to generate sulphuric acid under oxidising conditions.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


Pre-Feasibility Study			A pre-feasibility study (or preliminary feasibility study) is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a qualified person has determined (in the case of underground mining) a preferred mining method, or (in the case of surface mining) a pit configuration, and in all cases has determined an effective method of mineral processing and an effective plan to sell the product. (1) A pre-feasibility study includes a financial analysis based on reasonable assumptions, based on appropriate testing, about the modifying factors and the evaluation of any other relevant factors that are sufficient for a qualified person to determine if all or part of the Indicated and Measured Mineral Resources may be converted to Mineral Reserves at the time of reporting. The financial analysis must have the level of detail necessary to demonstrate, at the time of reporting, that extraction is economically viable. (2) A pre-feasibility study is less comprehensive and results in a lower confidence level than a feasibility study. A pre-feasibility study is more comprehensive and results in a higher confidence level than an initial assessment.
Probable Mineral Reserve			Probable Mineral Reserve is the economically mineable part of an Indicated and, in some cases, a Measured Mineral Resource.
Project			The Wafi-Golpu Project.
Project Area			The land that is the subject of the proposed Project activities and Project facilities, being: the Mine Area, the Infrastructure Corridor and the Coastal Area
Proven Mineral Reserve			Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource and can only result from conversion of a Measured Mineral Resource.
Qualified Person			A qualified person is: (1) A mineral industry professional with at least five years of relevant experience in the type of mineralization and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and (2) An eligible member or licensee in good standing of a recognized professional organization at the time the technical report is prepared. For an organization to be a recognized professional organization, it must: (i) Be either: (A) An organization recognized within the mining industry as a reputable professional association; or (B) A board authorized by U.S. federal, state or foreign statute to regulate professionals in the mining, geoscience or related field; (ii) Admit eligible members primarily on the basis of their academic qualifications and experience; (iii) Establish and require compliance with professional standards of competence and ethics; (iv) Require or encourage continuing professional development; (v) Have and apply disciplinary powers, including the power to suspend or expel a member regardless of where the member practices or resides; and (vi) Provide a public list of members in good standing.
Tailings			Finely ground rock of low residual value from which valuable minerals have been extracted is discarded and stored in a designed dam facility.
Wafi-Golpu Joint Venture			The joint venture established between the WGJV Participants on 22 May 2008.
Wafi-Golpu Project			The proposed construction, operation and (ultimately) closure of an underground copper-gold mine and associated ore processing, concentrate transport and handling, power generation, water and tailings management, and related support facilities and services.
Wafi-Golpu Services Limited			The operator for the Wafi-Golpu Joint Venture (WGJV), being jointly owned by Wafi Mining Limited and Newcrest PNG 2 Limited.
Waste Rock Dump			Refers to the waste rock dump to be established at the portal terrace.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

1Executive Summary

Section 229.601(b)(96) (1)

The Qualified Persons (“QP”) of Harmony Gold (PNG) Services Pty Ltd (“Harmony PNG”) have prepared this Technical Report Summary (“TRS”) to disclose the Mineral Resource and Mineral Reserve estimates for the Wafi-Golpu Project (“Wafi-Golpu or the Project”), a development stage property which is a 50:50 joint venture between Newcrest Mining Limited (“Newcrest”) and Harmony Gold Mining Company Limited (“Harmony”). This TRS has been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) property disclosure regulations, S-K 1300, with an effective date as at 30 June 2022. No material changes have occurred between the effective date and the date of signature of this TRS.

Property Description

The Wafi-Golpu Project is situated within the Morobe Province of Papua New Guinea (“PNG”), approximately 65km southwest of Lae, the nearest commercial centre. The project comprises the Golpu copper–gold porphyry deposit (“Golpu Project”) where Mineral Resources and Mineral Reserves were estimated. Additional Mineral Resources were estimated for the Wafi epithermal gold (“Wafi Project”) and Nambonga copper–gold porphyry deposits (“Nambonga Project”); however, these deposits are not currently included in the mine plan. No production has yet occurred at this property.

The WGJV holds two Exploration Licences (“EL”) covering a total area of 12,984 hectare (“ha”), each of which is registered in the names of Wafi Mining Limited (“Wafi Mining”) and Newcrest PNG2 Limited (“Newcrest PNG2”). The deposits are located within EL440, with a range of major surface facilities to be located on EL1105.

Both tenements were in good standing as at 30 June 2022. Each EL is subject to the condition that, if the State chooses, it may take-up a 30% interest in the project.

Ownership

The Project is a 50:50 unincorporated joint venture (“JV”), termed the Wafi-Golpu Joint Venture (“WGJV”), between Wafi Mining and Newcrest PNG2, collectively the WGJV Participants. Harmony is the ultimate parent company of Wafi Mining, whilst Newcrest is the ultimate parent company of Newcrest PNG2.

If the State exercises its right to take a 30% interest in the project, the interest of each of Wafi Mining and Newcrest PNG 2 will reduce to 35%.

Geology and Mineralisation

Wafi–Golpu is a complex, multiphase mineralised system, comprising the following:

•Golpu porphyry copper–gold deposit;

•Wafi epithermal gold deposit;

•Nambonga porphyry gold–copper deposit.

The basal geology consists of east to east–southeast-dipping metasedimentary rocks of the Owen Stanley Metamorphic Complex, unconformably overlain by sedimentary rocks and volcanic sequences of the Omaura Formation and Langimar Beds. These rocks were intruded by a sequence of diorite stocks with the following paragenesis: emplacement of Nambonga, Western and Golpu diorites; emplacement of Livana diorite in the form of a narrow intrusion with associated dykes intruded along previous intrusive contacts; and explosive emplacement of the Wafi breccia complex. Younger units of the Babwaf Conglomerate and the Wafi Conglomerate unconformably overlie the older units and generally occur in fault-bounded depressions.

The Golpu porphyry deposit extends over approximately 800m north/south and 500m west/east, and has been drilled to depth of >2,000m. The Hornblende Porphyry (Livana) is the main mineralised porphyry. The other porphyries act either as weak mineralisers (Golpu Porphyry) or as benign hosts (wall rock) from adjacent mineralising porphyries. The dominant copper–gold-bearing sulphide species vary laterally and vertically within the deposit from an inner bornite (plus chalcopyrite) core to chalcopyrite as the dominant copper sulphide and grading out to a pyrite-only shell on the mineralisation margin. The porphyry system is mineralised with gold, copper, silver and molybdenum.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

The Wafi diatreme complex is a roughly rectangular-shaped feature, 800m by 400m at surface with steep, inward-dipping sides. Alteration associated with the high sulphidation gold event overprints the Golpu porphyry-style alteration and mineralisation, with the diatreme carrying fragments of the earlier porphyry alteration. The high sulphidation event remobilised pre-existing porphyry-related copper from the phyllic-argillic altered upper porphyry and deposited this as zoned enargite–tennantite–covellite–chalcopyrite mineralisation. Most of the gold in the high sulphidation overprint was introduced in association with pyrite. A number of mineralised zones, including the A, B, NRG and Link Zones, were defined in the Wafi deposit. Much of the mineralisation is refractory and associated with arsenian pyrite.

The Nambonga diorite stock is a low-grade porphyry copper and gold mineralised system and extends over an area of approximately 200m by 200m and to a vertical extent of at least 800m. Much of the mineralisation is associated with silicification, either pervasive or as veins. Mineralisation consists of disseminated and vein-style copper–gold mineralisation and structurally-controlled base metal mineralisation in steeply-dipping lodes.

The understanding of the Golpu deposit settings, lithologies, mineralisation, and geological, structural, and alteration controls on mineralisation is sufficient to support estimation of Mineral Resources and Mineral Reserves. The understanding of the Wafi and Nambonga deposit settings, lithologies, and geological, structural, and alteration controls on mineralisation is sufficient to support estimation of Mineral Resources.

Status of Exploration, Development and Operation

The Wafi-Golpu Project is a development stage property.

A total of 791 drill holes (including wedges) were completed in the Project area since 1983, comprising approximately 267,907m of diamond core drilling and 17,180m of reverse circulation (“RC”) drilling. Drilling includes holes completed for exploration, resource delineation, geotechnical, and hydrological purposes.

A Feasibility Study Update (2018) (“FSU”) was completed in 2018 for the project. For this study, operating cost estimates for the Golpu development were estimated with an accuracy of ±10% to 15%. However, rising costs over the last year in particular, will decrease this accuracy to ±25% and the overall capital cost estimates are at an accuracy of ±25%. As a result, the QPs have deemed this study to be at Pre-Feasibility level.

The existing infrastructure located in the mine area was constructed in support of an extensive exploration drilling and orebody definition programme. The development of the Golpu Project will require the construction of infrastructure to support the mining and processing operations. The Golpu Project infrastructure will occupy three geographical areas consisting of the mine area, an infrastructure corridor, and a coastal area. The infrastructure corridor will link the mine and coastal facilities. No infrastructure has yet been constructed.

Mineral Resource Estimate

Wireframes were constructed for lithology, alteration, oxidation, sulphide distribution and structures. All lithological, porphyry-related alteration and fault wireframes were constructed in Leapfrog Geo 4.3 software using implicit modelling interpolations from primary logging codes extracted from the DataShed database and modified based on interpretative correlations of logged intervals.

All Mineral Resources are reported according to the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (“SAMREC Code, 2016”). For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). All Mineral Resources are reported on a 100% basis with an effective date of 30 June 2022. Harmony has a 50% interest in the WGJV.

Mineral Resources are reported exclusive of those Mineral Resources converted to Mineral Reserves. The QP compiling the Mineral Resource estimates is Mr Ronald Reid, Group Resource Geologist with Harmony Gold (PNG Services) Pty Ltd (“Harmony PNG”). Mineral Resource estimates are provided, by deposit, in Table 1-1, Table 1-2 and Table 1-3.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Table 1-1: Summary of the Golpu Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-6


METRIC		Grade			Metal Content
Mineral Resource Category	Tonnes (Mt)	Gold (g/t)	Copper (%)	Silver (g/t)	Gold (kg)	Copper (Mt)	Silver (kg)

Indicated	145.000	0.54	0.90	1.26	78,000	1.350	182,826
Total / Ave. Measured + Indicated	145.000	0.54	0.90	1.26	78,000	1.350	182,826
Inferred	70.000	0.62	0.86	1.10	44,000	0.600	74,455

IMPERIAL		Grade			Metal Content
Mineral Resource Category	Tonnes (Mt)	Gold (oz/t)	Copper (%)	Silver (oz/t)	Gold (Moz)	Copper (Mt)	Silver (Moz)

Indicated	159.835	0.016	0.93	0.037	2.500	1.488	5.878
Total / Ave. Measured + Indicated	159.835	0.016	0.93	0.037	2.500	1.488	5.878
Inferred	77.162	0.018	0.86	0.031	1.400	0.661	2.394
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 using the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr Ronald Reid, FAIG, whose job title is Group Resource Geologist with Harmony Gold (PNG Services) Pty Limited.
2. Mineral Resources are reported on a 50% basis as Harmony holds a 50% interest in the WGJV.
3. Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
4. Mineral Resources at Golpu are reported assuming a bulk mining underground extraction method and metallurgical recovery for copper and gold by sulphide flotation. Mineral Resources are reported above a net smelter return ("NSR") cut-off, which assumes a gold price of USD1,300/oz Au, a copper price of USD3.40/lb Cu, mining cost of USD8.37/t mined, processing cost of USD9.75/t processed, general and administrative (G&A) costs of USD4.17/t processed, copper concentrate treatment charge of USD100/dmt of concentrate, transport cost of USD33.50/wet tonne of concentrate, and copper refining charges of USD0.10/lb of recovered copper. Silver and molybdenum were not valued in the NSR cut-off; however, these elements were reported within the Mineral Resource as they were expected to be recovered with minor circuit modifications or concentrate contract negotiations. Over the life-of-mine, it is anticipated that copper recoveries will average 94% and gold recoveries will average 68%.
5. Metal contents reported do not include allowances for processing losses.
6. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Table 1-2: Summary of the Wafi Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-6


METRIC		Grade			Metal Content
Mineral Resource Category	Tonnes (Mt)	Gold (g/t)	Copper (%)	Silver (g/t)	Gold (kg)	Copper (Mt)	Silver (kg)

Indicated	54.000	1.66	-	-	89,000	-	-
Total / Ave. Measured + Indicated	54.000	1.66	0.00	0.00	89,000	0.000	0.000
Inferred	20.000	1.37	-	-	26,000	-	-

IMPERIAL		Grade			Metal Content
Mineral Resource Category	Tonnes (Mt)	Gold (oz/t)	Copper (%)	Silver (oz/t)	Gold (Moz)	Copper (Mt)	Silver (Moz)

Indicated	59.525	0.047	-	-	2.800	-	-
Total / Ave. Measured + Indicated	59.525	0.047	0.00	0.000	2.800	0.000	0.000
Inferred	22.046	0.036	-	-	0.800	-	-
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 using the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr Ronald Reid, FAIG, whose job title is Group Resource Geologist with Harmony Gold (PNG Services) Pty Limited.
2. Mineral Resources are reported on a 50% basis as Harmony holds a 50% interest in the WGJV.
3. Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
4. Mineral Resources at Wafi are reported assuming open pit mining methods with limited internal selectivity, and a process method that is anticipated to be a combination of a carbon-in-pulp ("CIP") and carbon-in-leach ("CIL") operation, with a flotation sulphide recovery mill process. The estimates are reported at cut-offs of 0.4g/t Au for non-refractory gold mineralisation ("NRG") and 0.9g/t Au for refractory gold mineralisation ("RG"). Mineral Resources are constrained within a conceptual open pit shell that uses the following input assumptions: gold price of USD1,400/oz; mining costs of USD5.40/t mined, and process and general and administrative costs of USD17.30/t processed. Metallurgical recovery is estimated at 91% gold recovery NRG and minimum of 47% recovery for RG. Pit slope approximate overall angles range from 33° in oxidised material to 65° in fresh rock.
5. Metal contents reported do not include allowances for processing losses.
6. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Table 1-3: Summary of the Nambonga Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-6

METRIC

Grade

Metal Content

Mineral Resource Category

Tonnes (Mt)

Gold (g/t)

Copper (%)

Silver (g/t)

Gold (kg)

Copper (Mt)

Silver (kg)

Inferred

24.000

0.69

0.20

16,000

0.047

IMPERIAL

Grade

Metal Content

Mineral Resource Category

Tonnes (Mt)

Gold (oz/t)

Copper (%)

Silver (oz/t)

Gold (Moz)

Copper (Mt)

Silver (Moz)

Inferred

26.455

0.019

0.20

0.500

0.052

Notes:

1. Mineral Resources are reported with an effective date of 30 June 2022 using the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr Ronald Reid, FAIG, whose job title is Group Resource Geologist with Harmony Gold (PNG Services) Pty Limited.

2. Mineral Resources are reported on a 50% basis as Harmony holds a 50% interest in the WGJV.

3. Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

4. Mineral Resources at Nambonga are reported assuming a bulk mining underground extraction method. The Mineral Resource is reported using an assumed 0.5g/t Au cut-off grade. This cut-off grade is based on the adjacent Golpu deposit as an analogue, assumes an overall mining, processing, and G&A operating cost estimate of about USD15.50/t, a gold price of UDD1,300/oz, and a metallurgical recovery of 85% for gold. This equates to a cut-off grade of approximately 0.46g/t Au, based on gold only. Conceptual costs associated with copper and silver recovery were approximated as equivalent to 0.04g/t Au. The total cutoff grade for reporting purposes was 0.5g/t Au.

5. Metal contents reported do not include allowances for processing losses.

6. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.

Mineral Reserve Estimate

All Mineral Reserves were originally prepared, classified and reported according to SAMREC, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

Mineral Reserves are reported for the Golpu deposit only. Indicated Mineral Resources were converted to Probable Mineral Reserves using the Modifying Factors.

The QP who compiled the Mineral Reserve estimate is Caveman Consulting (Pty) Limited (“Caveman Consulting”). Mineral Reserves are reported on a 100% basis. Harmony has a 50% interest in the WGJV. The Mineral Reserve estimates have an effective date of 30 June 2022. The summary of the Mineral Reserve estimate for Golpu is tabulated in Table 1-4.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Table 1-4: Summary of the Golpu Mineral Reserves as at 30 June 2022 1-5


METRIC		Grade			Metal Content
Mineral Reserve Category	Tonnes (Mt)	Gold (g/t)	Copper (%)	Silver (g/t)	Gold (kg)	Copper (Mt)	Silver (kg)

Probable	200.000	0.86	1.20	-	171,000	2.450	-
Total / Ave. Proven + Probable	200.000	0.86	1.20	0.00	171,000	2.450	0

IMPERIAL		Grade			Metal Content
Mineral Reserve Category	Tonnes (Mt)	Gold (oz/t)	Copper (%)	Silver (oz/t)	Gold (Moz)	Copper (Mt)	Silver (Moz)

Probable	220.462	0.025	1.23	-	5.500	2.701	-
Total / Ave. Proven + Probable	220.462	0.025	1.23	0.000	5.500	2.701	0.000
Notes:
1. Mineral Reserves are reported with an effective date of 30 June 2022, using the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Caveman Consulting.
2. Mineral Reserves are reported on a 50% basis as Harmony holds a 50% interest in the WGJV.
3. Mineral Reserves are reported using the following assumptions: block cave mining method, gold price of USD1,200/oz Au, copper price of USD3.00/lb Cu, above a net smelter return cut-off of USD10/t (development), USD60/t (BC44), USD40/t (BC42), USD19.15/t (BC40), variable metallurgical recoveries by metallurgical domain. The total dilution is estimated to be about 17% with toppling contributing approximately 1.5%.
4. Tonnes, grade, and content are declared as net delivered to the mills. Metal contained in tonnages do not include allowances for processing losses.
5. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.

Capital and Operating Cost Estimates

Capital and operating cost estimates were based on the 2018 Feasibility Study Update and are presented on a 100% basis. Cost estimates were reviewed in 2020 and remained current at that time. However global cost inflation post COVID has decreased the confidence in the estimate to ±25%.

The overall capital cost estimate for the Golpu Project is at a minimum at a PFS-level (±25%) of accuracy. The WGJV engaged a number of specialist consultants and estimators to identify the scope and produce corresponding capital cost estimates for their areas of particular expertise.

The life of mine (“LOM”) capital cost is estimated at USD5,381m (real December 2017 USD terms; 100% basis), and includes USD200m of capitalised net revenue, which is a Harmony accounting standard for production revenue delivered before commercial production is declared. The capital cost estimates by area are presented in Table 1-5.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Table 1-5: Summary Capital Cost Estimate for Golpu


Area	LOM Total (USDm)	Execution Capital (USDm)	Expansionary Capital (USDm)
Underground mining	2,140	819	1,321
Treatment	774	695	79
Shared Services and Infrastructure	283	210	73
Regional Infrastructure	219	219	0
Site Support Services	148	117	31
Project Delivery Management	606	462	144
Other Capitalised Costs	225	187	38
Provisions	493	315	178
Capitalised Revenue	-200	-200	0
Total LOM Capital Cost (excluding sustaining capital)	4,688	2,824	1,864
Sustaining Capital	693	0	693
Note: Expansionary capital includes all major development capital expenditure post commercial production. Sustaining capital is defined as routine stay-in-business capital expenditure estimated as 2.5% of the asset replacement value ("ARV").


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

The operating cost estimates by area are presented in Table 1-6.

Table 1-6: Summary Operating Cost Estimate for Golpu


Operating Cost Element			USD/t Milled
Underground mining
Ventilation & Refrigeration			1.27
Production			0.99
Conveying			0.69
Engineering Maintenance & Services			0.56
Dewatering			0.34
Crushing			0.15
Technical Services			0.12
Administration			0.04
Subtotal Underground Mining			4.16
Treatment
Process Plant Operations			5.04
Process Plant Maintenance			0.91
Port Filtration Plant			0.72
DSTP 0.47			0.47
Water Treatment Plant			0.25
Concentrate Pipeline			0.01
Subtotal Treatment			7.40
Infrastructure
Power Generation Plant			1.34
Infrastructure (roads and buildings)			0.28
Services (power and waste)			0.16
Subtotal Infrastructure			1.78
Site Support Services
Community Affairs and Land			0.89
Environmental			0.44
Commercial			0.92
Occupational Health and Safety (OH&S)			0.47
Training			0.08
Camp Services			0.40
Information Technology (IT)			0.33
Travel			0.18
Supply and Logistics			0.19
Human Resources (HR)			0.09
Subtotal Site Support Services			3.99
Total			17.33
Notes: Total is inclusive of cost allocations for closure.

Permitting Requirements

The tenements required for the planned Golpu Project as at 30 June 2022 include:

•one Special Mining Lease (“SML”) 10;

•six Mining Easements (“MEs”); and

•three Leases for Mining Purposes (“LMPs”).


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Environmental approval for the Golpu Development has been obtained under the Environment Act 2000 and Environment (Prescribed Activities) Regulation 2002. Approval-in-Principal for the Wafi-Golpu Environmental Impact Statement (submitted in June 2018) was granted by the PNG Minister for Environment on 19 November 2020.

In addition, EP-L3(767) authorises mechanised mining on a Mining Lease involving chemical processing activity, and all other associated approved activities within the boundaries of SML10, LMPME92, ME93, ME94, ME96 and ME97.

The permit approves the use of Deep Sea Tailings Placement as the tailings management solution for the project. EP-L3(767) contains 57 conditions pertaining to environmental management requirements for the project.

The environmental approval register is presented in Table 1-7.

Table 1-7: Status of Environmental Permits and Licences


Permit / Licence			Status
EIR			Submitted May 2017, approved June 2017.
EIS			Submitted 2018. Approved November 2020.
Level 3 Environment Permit EP-L3 (767)			Approved December 2020. Valid for 50 years.
Environmental Management Plan			Submitted. Approved in EP-L3 (767)

Conclusions

Under the assumptions in this TRS, the Golpu Project shows a positive cash flow over the life-of-mine and supports the Mineral Resource and Mineral Reserve estimate. The mine plan is achievable under the set of assumptions and parameters used.

Recommendations

As material engineering studies and exploration programmes have largely been concluded on the Golpu Project, the QPs are not able to provide meaningful recommendations.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

2Introduction

Section 229.601(b)(96) (2) (i-v)

This TRS on the Waf-Golpu Project has been prepared for the registrant, Harmony. The TRS has been prepared in accordance with the SEC Disclosure by Registrants Engaged in Mining Operations (disclosure regulations S-K 1300). It has been prepared to meet the requirements of Section 229.601(b)96 – Technical Report Summary. The purpose of this TRS is to provide open and transparent disclosure of all material, exploration activities, Mineral Resource and Mineral Reserve information to enable the investor to understand the Waf-Golpu Project which forms part of Harmony’s activities.

This TRS has been prepared from the following source of information:

•Wafi-Golpu Project Feasibility Study Update (2018) prepared by Wafi Golpu Services Limited (Company) for and on behalf of the WGJV.

The TRS was prepared by QPs employed Harmony Gold (PNG Services) Pty Ltd and its consultants. The QP qualifications, areas of responsibility and personal inspections of the property are summarised in Table 2-1.

Table 2-1: QP Qualifications, Section Responsibilities and Personal Inspections

Qualified Person

Prof. Assoc.

Qualifications

TRS Section Responsibility

Personal Insp.

Mr R Reid

FAIG, MAusIMM

BSc(Hons), Grad.Dip(Sc)

3, 4, 5, 6, 7, 8, 9, 11

Regular
Last Aug 2019

Mr G Job

MAusIMM

BSc. MSc (Min Econ)

1, 2, 3, 15, 21, 22, 23

Regular, last 2020

Caveman Consulting

N/A

12, 13

2016

Mr M Swart

FAusIMM, RPEQ, MIEPNG

BE (Met Eng), MBA

10, 14

None1

Ms S Watson

MAusIMM

MSc, BSc. (Hons)

Regular

Mr M Koehler

CAANZ

BBus Acc, Grad Dip (CA)

16, 18, 19

None1

Notes: 1. Not deemed necessary as no plant nor infrastructure has yet been constructed on site.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

3Property Description and Location

Section 229.601(b)(96) (3) (i-vii)

The Wafi-Golpu Project is situated within the Morobe Province of PNG, approximately 65km southwest of Lae, the nearest commercial centre (Figure 3-1). The Project comprises three deposits, of which one, the Golpu Project, has declared Mineral Resources, Mineral Reserves and a mining, processing and development plan. The Wafi and Nambonga Projects only have declared Measured Resources. The Golpu Project is situated at a latitude of 6°51’46.63”S and longitude of 146°27’08.20”E.

3.1Mineral Tenure

The Project is a 50:50 unincorporated JV termed the WGJV, between Wafi Mining and Newcrest PNG2, collectively the WGJV Participants. Harmony is the ultimate parent company of Wafi Mining, whilst Newcrest is the ultimate parent company of Newcrest PNG2.

The WGJV holds two ELs covering a total area of 12,894 hectares (“ha”), each of which is registered in the names of Wafi Mining and Newcrest PNG2. The deposits are all located within EL440, with a range of major surface facilities to be located on EL1105. The summary of mineral tenure is presented in Table 3-1 and graphically presented in Figure 3-2.

Table 3-1: Summary of Mineral Rights for Wafi-Golpu

Licence Holder

Licence Type

Reference No.

Effective Date

Expiry Date

Area (ha)

Wafi Mining & Newcrest PNG2

Exploration

EL440

11-Mar-2020

10/03/20221

9,501

Exploration

EL1105

16-Jan-2021

25-Feb-2023

3,393

Total

12,894

Notes: 1. Renewal submitted on 6 December 2021.

Both tenements are in good standing. The WGJV participants lodged an application to extend the terms of EL440 for a further two years on 6 December 2021, in accordance with Mining Act 1992 (PNG) requirements.

Each EL is subject to the condition that, “Subject to any agreement made under Section 17 of the Act, the State reserves the right to elect at any time, prior to the commencement of mining, to make a single purchase of up to 30% equitable interest in any mineral discovery arising from this licence, at a price pro-rata to the accumulated exploration expenditure and then to contribute to further exploration and development in relation to the lease on a prorate basis unless otherwise agreed”. If the State chooses to take-up its full 30% interest, the interest of each of Wafi Mining and Newcrest PNG 2 will become 35%.

3.2Property Permitting Requirements

For the planned Golpu Development operations, the tenements required as at 30 June 2022, include:

•one SML;

•six MEs; and

•three LMPs.

The WGJV Participants applied for an SML and ancillary tenements, including MEs and LMPs in late 2016, covering proposed Golpu development facilities and infrastructure as they were understood at the time. Details on these applications is presented in Table 3-2.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


Figure 3-1: Location of Wafi-Golpu

Figure 3-2: Mineral Tenure of Wafi-Golpu


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Table 3-2: Detail Relating to Permit Applications

Type / No.

Description

Location

Area (ha)

Submission Date

SML 10

Mine area

EL 440 and EL 1105 near Mt Golpu

3,630.30

2016

LMP 100

Power generation facility & Finchif construction accommodation camp

EL 1105 near Finchif

49.29

2016
Revised in 2018

ME 94

Portal waste water discharge pipeline to Watut River

EL 1105 and EL 1704 near Wongkins

18.22

2016
Revised in 2018

ME 93

Northern Access Road

EL 1748 and customary land

149.22

2016
Revised in 2018

ME 92

Mine Access Road (formerly known as Link Road)

EL 1105, EL 1369,

169.80

2016

EL 1704 and customary land near Bavaga

ME 91

Concentrate, tailings & fuel pipeline & power transmission lines from Mine Area to Lae

EL 1105, EL 1369,

466.38

2016
Revised in 2018

EL 1748, EL 1704 and customary/State land

LMP 104

Concentrate Filtration Plant

Lae

3.49

2018

LMP 105

Outfall System

Wagang

11.77

2018

ME 96

Tailings pipeline from Lae to Outfall System

Lae and Wagang

25.22

2018

ME 97

Outfall pipeline

Wagang

15.35

2018

An SML is generally issued to the EL holders for large scale mining operations. This lease allows the holder to:

•enter and occupy the land over which the mining lease was granted for the purpose of mining the minerals and carry on such operations and undertake such works as may be necessary or expedient for that purpose;

•construct a treatment plant on that land and treat any mineral derived from mining operations, whether on that land or elsewhere, and construct any other facilities required for treatment including waste dumps and tailings dams;

•take and remove rock, earth, soil and minerals from the land, with or without treatment;

•take and divert water situated on or flowing through such land and use it for any purpose necessary for his mining or treatment operations subject to and in accordance with the Environment Act 2000; and

•do all other things necessary or expedient for the undertaking of mining or treatment operations on that land.

The holder of an SML must pay a royalty to the State that is equivalent to 2% of the net proceeds of sale of minerals (calculated as net smelter return (“NSR”) or free-on-board (“FOB”) export value, whichever is appropriate). A production levy of 0.5% is also payable on the gross value of production (i.e., excluding the offsets of treatment and refining charges, payable terms and freight).

The SML application included a Proposal for Development, which incorporated the 2016 Feasibility Study report and supporting application documents such as a National Content Plan. Amendments to these tenement applications were made in March 2018, where the location and/or nature of facilities and infrastructure was refined through the 2018 Feasibility Study Update. The Proposal for Development was also updated. Additional applications will also be made where necessary. The grant of the SML and related ancillary tenements remains subject to the completion of Mining Act 1992 and Environment Act 2000 processes.

The surface rights pertaining to the Wafi-Golpu project are held under customary, State, and private ownership, with the bulk of the land being customary owned. The holder of a tenement under the Mining Act 1992 is liable to pay compensation to the landholders for all loss or damage suffered or foreseen to be suffered by the landholders from the exploration or mining or ancillary operations.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

The WGJV does not currently hold sufficient surface rights to permit construction and operations. Surface rights will be obtained if the current tenement applications are granted. Disturbances on customary land would commence once a compensation agreement is in place for the relevant area. Additional negotiations and permits are required for construction and operations.

A 50-year Environment Permit for the project was issued by the PNG Conservation and Environment Protection Authority on 18 December 2020 namely EP-L3(767). This permit also amalgamates previous environment permits, water extraction permits, and waste discharge permits held for exploration purposes at the project. In addition, EP-L3(767) authorises mechanised mining on a Mining Lease involving chemical processing activity, and all other associated approved activities within the boundaries of SML10, LMPME92, ME93, ME94, ME96 and ME97. The permit approves the use of Deep Sea Tailings Placement as the tailings management solution for the project. EP-L3(767) contains 57 conditions pertaining to environmental management requirements for the project.

Other environmental permitting requirements are discussed in Section 17.

Apart from the Mining Act 1992 and Environment Act 2000 requirements, the Golpu development will have to comply with aspects from other forms of legislation. The Golpu Project review process may identify other legislation that must be complied with.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

4Accessibility, Climate, Local Resources, Infrastructure and Physiography

Section 229.601(b)(96) (4) (i-iv)

4.1Accessibility

The Project is located in a mountainous area of PNG. A combination of roads and access tracks exist between Lae and the Project site (Figure 3-1). However, the track components are suitable for four-wheel drive vehicles and purpose-built trucks only. During major rainfall events this access route may become closed to vehicular traffic.

Current access to the planned mine site is via a partly-sealed road from Lae to Timini (Figure 3-1), and a gravel road from Timini (Demakwa) to Wafi, with the trip taking about three to four hours depending on the weather. This road will be replaced by a new road (including bridges), the northern access road to be constructure in the infrastructure corridor (Figure 3-1) as part of project construction. A mine access road will also be constructed from the intersection of the northern access road and the current exploration access road.

Commercial airlines operate flights between the national capital, Port Moresby, and Nadzab airport (Figure 3-1), which is approximately a one-hour drive by road from Lae. The Nadzab airstrip is sealed. Helicopter access to the mine site area is available, with a suitable area at the proposed mine site cleared for landing.

4.2Physiology and Climate

The Project exploration camp is situated at an approximate altitude of 400m. The highest peak in the Project vicinity is Mt Watut, at an elevation of 1,089m above sea level (‘asl”). Mount Golpu reaches 770masl.

The area is mountainous and rugged, and divided by large upland valleys containing fast-flowing rivers which descend to the plains. The Wafi River and Hekeng, Nambonga, and Buvu Creeks are the main drainages within the Project area, with variable flow rates depending on rainfall (Figure 3-1).

Vegetation in the Project area consists of lowland and mid-mountain tropical forests with some areas of tropical grassland in upper elevations. Some areas are partly cleared as part of subsistence agricultural practices.

PNG has a hot, tropical climate at sea level, cooling towards the highlands. The planned mine site area has a high rainfall and two distinct seasons: a dry season from June to September and a rainy season from December to March. The average annual rainfall is 2,836mm. The site is characterised by low wind speeds, high humidity and warm temperatures with an average maximum of 28°C and an average minimum of 21°C.

The coastal area, where the port and tailings outfall will be located, also experiences two distinct seasons: a southeast monsoon from mid-May to October and a northwest monsoon from mid-November to the end of March, with intervening periods of light, variable winds. Trade winds during the southeast monsoon are moderate. Annual rainfall is between 3,900–4,500mm with rainfall peaking between May and August. Maximum temperatures average 30°C and minimum temperatures average 20°C with little variability across the year.

The infrastructure corridor that will link the coast to the mine has climate aspects that reflect the elevation; with climate settings similar to the mine site and coastal area. Mining activities are planned year-round. Mining activities may be temporarily curtailed by heavy rainfall events.

4.3Local Resources and Infrastructure

The closest major community is Lae. Lae is an urban area, a major transport hub, and a commercial, administrative, industrial, residential, and educational centre for both the Morobe Province and PNG, with a population in 2011 (the most recent year for which PNG census data are available) of approximately 149,000.

The Golpu Project is a greenfield site that currently does not have any infrastructure to support the planned mining and processing operations. There is no effective local infrastructure with respect to power, water, and roads that are trafficable by vehicles other than all-wheel drive vehicles. Water supply for drilling was sourced from rivers, and power at the exploration camp(Wafi Camp) is locally generated.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

5History

Section 229.601(b)(96) (5) (i-ii)

5.1.Historical Ownership and Development

The Wafi-Golpu Project has had a 45 year history from discovery until the present day. The historical highlights and ownership changes are presented in Table 5-1.

Table 5-1: Summary of Historical Ownership Changes and Activities of Wafi-Golpu


Year			Asset History Highlights
1977 - 1987			CRA Exploration (Pty) Limited (CRAE) identified mineralised float in a regional geochemical sampling programme. Discovered outcropping mineralisation of the Wafi A Zone near Mount Golpu in 1979. The Mt Wanion Exploration License (EL440) was granted in 1980. Ridge and spur sampling completed 1980–1982. In 1983, core drilling commenced targeting the Wafi prospect, followed by geophysical surveys including a dipole-dipole induced polarisation (IP)/resistivity survey which were completed in 1985. An initial mineral resource was estimated for Wafi in 1986. In 1987, metallurgical testwork identified that the primary mineralisation was highly refractory with low cyanide leach recoveries.
1988 - 1990			CRAE/Elders Resources Limited (Elders) joint venture formed. Core and reverse circulation (RC) drilling. Discovered the Golpu copper–gold porphyry deposit in 1990. Moving loop time domain electromagnetic geophysical survey. Resource estimate for Wafi in 1990.
1991 - 1997			CRAE re-acquired EL440 from Elders. Conducted aeromagnetic, ground magnetic, self-potential (SP), IP, and controlled source audio-frequency magneto- telluric (CSAMT) geophysical surveys, shallow bedrock geochemical sampling, surface lithochemical sampling, soil geochemical sampling and geological mapping. Completed a pre-feasibility study in 1993. Completed a resource estimate for the A Zone at Wafi. Resource estimate updated, in 1996. Discovered the high-grade Link Zone at Wafi in 1997. Updated resource estimate for A Zone, B Zone, Link Zone and C Zone.
1997 - 2001			Global Mining Services completed due diligence re-estimate of Wafi resource estimate on behalf of Australian Gold Fields in 1997. Australian Gold Fields Limited (Australian Gold Fields) acquired Project from CRAE in 1998. Project placed on care and maintenance from 1999–2001, due to a commodity price downturn.
2001 - 2002			Aurora Gold Limited (Aurora) acquired Project ownership. Updated Wafi resource estimate on A Zone, B Zone and Link Zone in 2002. Completed check resource estimate at Wafi in 2002.
2003			Aurora merged with Abelle. Updated Wafi resource estimate.
2004 - 2008			Harmony acquired Abelle. Wafi–Golpu Concept Study; completed 2004. Resource estimates for selected deposits updated in 2005, 2006 and 2007. Golpu Standalone Pre-Feasibility Study, completed 2007. Wafi–Golpu Integrated Pre-Feasibility Study, completed 2007. Discovered Nambonga porphyry in 2007.
2008 - present			WGJV formed. Resource estimates updated for selected deposits in 2010, 2011, 2012, 2014 and 2018. Wafi Area Concept Study, completed 2008. Highly mineralised porphyry identified to the northwest of known Golpu mineralisation in October 2009. Golpu Development Project Desktop Study, completed 2009. Wafi Concept Study, completed 2010. Wafi–Golpu Pre-Feasibility Study, completed 2012. Wafi–Golpu Pre-Feasibility Optimisation Study, completed 2014. Regional geological mapping and geological synthesis in 2015. Re-evaluation of development approach Golpu Stage 2 Pre-Feasibility Study, completed 2015. Golpu Feasibility Study, completed 2016. On 25 August 2016 the Wafi–Golpu Joint Venture submitted an SML application to the PNG Mineral Resources Authority. The Special Mining Lease application included a Proposal for Development, which incorporated the 2016 Feasibility Study report and supporting application documents such as a National Content Plan. Further data collection and technical assessment undertaken in 2016–2017. Feasibility Study Update completed in December 2017 and submitted to the Mineral Resources Authority in March 2018. Submitted an EIS to CEPA on 25 June 2018. Environmental approval for the Golpu Development was obtained in 2020.

5.2Historical Exploration

Historical exploration dates back to 1977 and has included regional exploration sampling, geophysical surveys, geochemical sampling, reverse circulation and diamond core drilling. The historical exploration is included in Table 5-1. The results of the exploration, which are also included in the current geological modelling and Mineral Resource estimation are discussed in Section 7.


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5.3Previous Mineral Resource and Mineral Reserve Estimates

The previous Mineral Resource estimate for the Golpu Project was reported in the Harmony 2021 Annual Report and dated 30 June 2021. This estimate is the same as the current Mineral Resource estimate. The 30 June 2022 Mineral Resource estimate represents no change since they were initially reported in the 2018 Feasibility Study Update (“FSU”).

The previous Mineral Resource estimates for the Wafi and Nambonga Projects were reported in Harmony 2021 Annual Report and dated 30 June 2021. These estimates are the same as the current Mineral Resource estimates. The 30 June 2022 Mineral Resource estimates represent no change since they were initially reported in 2019.

The previous Mineral Reserve estimate for the Golpu Project was reported in the Harmony 2021 Annual Report and dated 30 June 2021. This estimate is the same as the current Mineral Reserve estimate. The 30 June 2022 Mineral Reserve estimate represents no change since they were initially reported in the 2018 Feasibility Study Update.

5.4.Past Production

There has been no past production at the Wafi-Golpu Project.


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6Geological Setting, Mineralisation and Deposit

Section 229.601(b)(96) (6) (i-iii)

Wafi–Golpu is a complex, multiphase mineralised system comprising the:

•Golpu porphyry copper–gold deposit;

•Wafi epithermal gold deposit;

•Nambonga porphyry gold–copper deposit.

6.1Regional Geology

PNG is divided into a number of litho-tectonic domains (Figure 6-1). The New Guinea orogen includes the Papuan Fold Belt, New Guinea Thrust Belt, Aure Deformation Zone, Eastern Thrust Belt, and the Owen Stanley Thrust Belt. It consists of sedimentary and volcanic rocks that have undergone fold-and-thrust belt deformation and metamorphism, intrusion by granitic and gabbroic rocks, and obducted oceanic crust. Belts are separated by major structural boundaries, typically thrust faults.

In the Project area, the basement consists of a Mesozoic basement assemblage of metasedimentary units (Owen Stanley Metamorphic Complex). All of these rock types were subsequently folded and metamorphosed during the 40Ma Sepik Arc subduction/accretion event. Sedimentary, volcanic and volcaniclastic units of the Omaura Formation and Langimar Beds infilled low-lying areas in the period 30–10 Ma. Granitic magmas of the Maramuni Arc subsequently intruded the area, with a peak of activity from about 17–10Ma. All lithologies were folded and faulted during the formation of the Aure Deformation Zone, between 12–4Ma. A second intrusive suite, informally termed the Post-Maramuni belt, was emplaced from about 8–1Ma. Late-stage lithologies include shallow-water sediments and volcaniclastic units (e.g., Babwaf Conglomerate).

6.2Local Geology

The deposit setting is controlled by the rotation and deformation of the Papuan peninsula. The local geology is presented in Figure 6-2, along with the associated alteration plan in Figure 6-3.

The geology consists of:

•east to east–southeast-dipping metasedimentary rocks of the Owen Stanley Metamorphic Complex (inter-bedded conglomerate, sandstone and siltstone horizons);

•unconformably overlain by sediments and volcanic sequences of the Omaura Formation (shale and greywacke, with some reef facies limestones);

•overlain by the Langimar Beds (volcaniclastic pebble to cobble conglomerates interbedded with sandstones and reef facies limestones);

•intruded by Nambonga diorite (initial hornblende- and plagioclase-phyric porphyritic diorite. Late-stage, barren, biotite-phyric diorite, mineralised);

•emplacement of Golpu Intrusive Complex diorites including:

•Western diorite porphyry (mottled grey, plagioclase and quartz-phyric diorite);

•Golpu porphyry (hornblende and plagioclase-phyric diorite; quartz phenocrysts are absent); and

•Livana porphyry (mottled grey or grey–green crowded hornblende and plagioclase-phyric diorite ). A narrow intrusion with associated dykes intruded along previous intrusive contacts;

•explosive emplacement of the Wafi breccia complex (large multiphase polymictic breccia);

•late intrusion by the Hekeng Andesite (unmineralized, massive, dyke consisting of plagioclase crystals in a chlorite groundmass);


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Figure 6-1: Regional Geology and Lithotectonic Domains
Source: Rinne,2015
Figure 6-2: Local Geology
Source: WGJV, 2012


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Figure 6-3: Alteration Plan
Source: WGJV, 2012
Figure 6-4: Schematic Cross Section of Wafi-Golpu Deposits
Source: Newcrest, 2018 and WGJV, 2013


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•overlain by Babwaf Conglomerate (poorly-consolidated but well-sorted conglomerate with minor siltstone and sandstone intercalations); and

•finally, unconformably overlain by the Wafi Conglomerate (poorly-consolidated conglomerate consisting of Owen Stanley metamorphic rocks and minor carbonaceous material in a poorly-sorted sandy matrix.), generally occurring in fault-bounded depressions.

6.1Property Geology

The property has been divided into the three mineral deposits which include the:

•Golpu porphyry copper–gold deposit;

•Wafi epithermal gold deposit; and

•Nambonga porphyry gold–copper deposit.

A schematic cross section showing the location of the mineralised deposits is presented in Figure 6-4. A typical stratigraphic column is presented in Figure 6-5. The geology of each deposit will be discussed in the sub sections to follow.

6.3.1Golpu

The Golpu Intrusive Complex consists of multiple, hornblende-bearing diorite porphyries intruded into the host sedimentary lithologies. The porphyries are separated based on their spatial position and, where not texturally destroyed, into coarse hornblende-rich variants, feldspathic-rich units and porphyries containing quartz-eye inclusions. Intrusions range from small dykes to small stocks/bosses and apotheoses. Single intrusions pinch and swell vertically over tens of metres and form dykes, pipes and stocks (Figure 6-6).

6.3.2Wafi

The Wafi Diatreme complex (Figure 6-6) is a roughly rectangular shaped feature, 800m by 400m at surface with steep, inward-dipping sides. The diatreme comprises intrusive and sedimentary breccias, volcaniclastic rocks and tuffs, and was intruded by several phases of unmineralised dacitic porphyries.

6.3.3Nambonga

Typically, the Nambonga diorite porphyry stock (Figure 6-6) is medium-grained, containing plagioclase and hornblende phenocrysts set in a feldspathic matrix. The diorite is cut by a late barren diorite phase at depth. The diorite has intruded lithologies of the Owen Stanley Metamorphic Complex, consisting of metasandstone and minor metaconglomerate.

6.3.4Structure

The major interpreted faults affecting the Golpu and Nambonga porphyries are shown in Figure 6-6. Interpretations from drill data indicate that the Golpu porphyry system is tilted to the east as a result of movement up the Buvu thrust complex and is modelled with a 70° dip to the west. It is assumed that all porphyries were intruded sub-vertically and thrust faulting has rotated and dismembered the porphyry columns with reverse fault displacements.


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Figure 6-5: Schematic Tectono Stratigraphic Column
Source: Twomey & Dobe, 2015
Figure 6-6: Cross section Through Golpu, Wafi and Nambonga Deposits
Source: WGJV, 2018


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6.4Mineralisation

The Project-area mineralisation paragenesis is as follows:

•metamorphic event producing quartz in bedding-parallel veins;

•porphyry event recognised as albitisation of feldspars, formation of pervasive biotite throughout the metasediments with potassic feldspar development as selvedges to porphyry-related quartz veins, and sericite/chlorite overprinting of earlier potassic alteration. The phyllic overprint is possibly related to the collapse of the porphyry system and the incursion of meteoric water;

•diatreme emplacement due to the emplacement of melts into collapsing meteoric system resulting in diatreme breccias and dacite bodies; and

•zoned high/low sulphidation epithermal events with temporal and spatial alteration zonation from earliest to latest:

•argillic alteration: alunite ± pyrophyllite overgrowing quartz;

•intermediate argillic alteration: dickite/kaolinite ± sericite/illite; and

•low-temperature argillic alteration, consisting of carbonate–smectite–chlorite–chalcedony.

6.4.1Golpu

The Golpu deposit extends over about 800m north–south by 500m west–east, and was drill tested to more than 2,000m depth. The dominant copper–gold-bearing sulphide species vary laterally and vertically within the deposit from an inner bornite plus chalcopyrite core, to chalcopyrite as the dominant copper sulphide, and grading out to a pyrite-only shell on the mineralisation margin (Figure 6-7).

The porphyry system is mineralised with gold, copper, silver and molybdenum:

•gold, copper and silver trend from highest grade in the Hornblende Porphyry (Livana) core to background levels at the mineralised edge; and

•molybdenum content is low in the gold and copper maxima but increases outwards to a maximum at the copper margin and declines to background beyond the copper mineralisation limits.

Porphyry-derived hydrothermal alteration at Golpu forms upright to steep west dipping domains that enclose the Golpu Intrusive Complex with alteration shells superimposed by the shallow east-dipping high sulphidation epithermal system. The zoned alteration includes:

•K-feldspar inner core;

•magnetite–biotite zone;

•actinolite–biotite (magnetite–K-feldspar–albite–epidote) zone;

•biotite (± minor magnetite) zone; and

•chlorite (propylitic) outer margin alteration.

Higher gold and copper grades accompany potassic alteration of moderate to strong pervasive biotite + magnetite alteration with K-feldspar. The best developed Kfeldspar + magnetite alteration is centred in and adjacent to the Hornblende (Livana) and Golpu Porphyries. Pervasive biotite–magnetite replacement of the metasedimentary rocks immediately adjacent to the porphyries gives way to actinolite and biotite then microfracture controlled biotite-only alteration on the periphery of the deposit. Actinolite is a key indicator mineral for definition of the mineralised limits. The outermost alteration is chlorite with pyrite ± albite ± anhydrite.


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Figure 6-7: Cross Section Showing Golpu Sulphide Zonation
Source: WGJV, 2018


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6.4.2.Wafi

The epithermal mineralisation is a late-stage overprint on the Golpu Intrusive Complex and is primarily hosted in metasedimentary lithologies of the Owen Stanley Metamorphic Complex. The preferred host units are coarse-grained sedimentary units.

Mineralisation is distributed around a core dacitic vent. The dacite, which is not viewed as part of the Golpu intrusive complex, is assumed to be post-mineral and barren. The dacite was the source for the diatreme breccia which contains fragments of Wafi epithermal mineralisation and is the last magmatic-related event at Wafi– Golpu. Two breccias are the centre of interest for the gold mineralisation.

The centre of the epithermal system appears to be located to the south of the vertical projection of the porphyry system. The sheet-like distribution of the epithermal system may be related to permeability, due to both porosity of the sedimentary host and structural controls present during fluid migration. Epithermal alteration is laterally extensive, with the most intense alteration and highest-grade mineralisation located at the Wafi deposit to the southeast of Golpu. Although the Wafi epithermal system is spatially focused around the diatreme breccia, the possibility remains that the dacite intrusive/diatreme breccia used the fluid pathway of the epithermal source, and any evidence was destroyed by explosive events.

The Wafi deposit has a surface area of approximately 1,100m by 800m and was drill tested to approximately 600m below surface. A number of zones, including the A, B, NRG and Link Zones, were defined. The NRG Zone is the nonrefractory portion of the A Zone, and the Link Zone is a more discrete, higher-grade zone characterised by both high sulphidation and low sulphidation mineralisation. It is unclear if the high sulphidation and intermediate sulphidation events at Wafi are independent or are a continuum of a single event.

Advanced argillic alteration contains primary copper mineralisation as chalcocite, but gold occurs within pyrite or as electrum associated with pyrite–enargite–tetrahedrite. Mineralisation appears to broadly follow the metasedimentary and volcanic host rocks stratigraphy (i.e., 40–50° to the east and northeast) and is often sub-parallel to bedding. The copper–gold-bearing lenses occur in kaolinite–chalcocite–pyrite and vuggy quartz ± covellite ± enargite bands that may reach 20m in thickness.

The high sulphidation epithermal system is telescoped over the upper portion of the porphyry system. The high sulphidation alteration is characterised by alunite– pyrophyllite–dickite–sericite and has overprinted the diatreme complex. Gold is believed to be associated with the early zoned alteration system but also as a second population related to a late pyrite event related to the later high sulphidation pyrite–clay event.

6.4.3.Nambonga

The stock is a low-grade copper and gold mineralised system and extends over an area of approximately 200m by 200m and to a vertical extent of at least 800m. Much of the mineralisation is associated with silicification, either pervasive or as veins. Quartz stockwork veins that may be as wide as 10mm and stockworks overprint the porphyry, especially in the upper levels. Mineralisation consists of disseminated and vein-style copper–gold mineralisation and structurally-controlled base metal mineralisation in steeply-dipping lodes.

Chalcopyrite is the dominant copper sulphide mineral. Chalcopyrite and pyrite form anhedral grains ranging that can reach 0.2mm in width and tend to occur as centrelines to quartz veins. Magnetite forms anhedral grains that can be 0.4mm wide and is generally present in the margins of the quartz veins or in the wall rock adjacent to quartz veins. Minor magnetite, pyrite and chalcopyrite are disseminated through the host rock.

Structurally-controlled base metal mineralisation forms steeply-dipping lodes of variable thickness. The lodes are usually at the margins of the diorite porphyry, where a competency contrast may have acted as a dilational zone between the porphyry and wall-rock metasediments. Paragenetically, the massive sulphide bodies have formed much later than the porphyry intrusion and associated mineralisation.

6.5Deposit Type

Golpu and Nambonga are porphyry copper- gold deposits, whilst Wafi is an epithermal gold deposit.


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6.6Commentary on Geological Setting, Mineralisation and Deposit

In the opinion of the QP:

•understanding of the Golpu deposit settings, lithologies, mineralisation, and geological, structural, and alteration controls on mineralisation is sufficient to support estimation of Mineral Resources and Mineral Reserves; and

•understanding of the Wafi and Nambonga deposit settings, lithologies, mineralisation, and geological, structural, and alteration controls on mineralisation is sufficient to support estimation of Mineral Resources.


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7Exploration

Section 229.601(b)(96) (7) (i-vi)

The Wafi-Golpu has had a long history of exploration (Table 5-1) dating back to the 1980s. The amount of exploration carried out over the Project area is significant and the volume of the results are too large to enable detailed reporting herein. The exploration results that have been used in the estimation of the Mineral Resources are identified and discussed in as much detail as possible, given the confines of this TRS.

7.1Topographic Survey

A light detection and ranging (“LiDAR”) survey covering the Project area was conducted in 2009 by Fugro Spatial Services. The survey was converted from PNG94 to WAFL2011 local grid. The survey has a spatial accuracy of 0.2m. This survey forms the topographic control for the Project area. The main height datum is mean sea level (“msl”). However, because much of the resource at Golpu is significantly below sea level, 5,000m was added to MSL (WAFL2011/GOLPU2016) for mining and engineering operational purposes to avoid negative values. This datum is called the WAFL height datum.

7.2Geological Mapping

A number of mapping programmes were conducted over the Project area including 1:10,000 fact mapping of available outcrop. Mapping data and subsequent interpretations were used together with drill hole data to model the deposit geology and structure. A structural model for the Wafi–Golpu area was compiled in 2011.

7.3Geophysical Surveys

Geophysical surveys were conducted as part of the early-stage exploration activities. The following surveys were conducted:

•CRAE,1985: Dipole-dipole induced polarisation (“IP”)/resistivity survey;

•CRAE/Elders, 1990: Moving loop time domain electromagnetic (“EM”) geophysical survey; and

•CRAE, 1991–1997: Aeromagnetic, ground magnetic, self-potential (“SP”), IP, and controlled source audio-frequency magneto-telluric (“CSAMT”) geophysical surveys (Tau-Loi and Andrew, 1998).

WGJV staff re-examined some of the geophysical data in 2018, as follows:

•the 1985 survey, conducted using 100m and 200m dipole spacing, was compiled and inverted in three-dimensions (“3D”). Generally high chargeability values were noted, and clearly defined the lithocap as a strong resistor above a relatively conductive zone of clay alteration; and

•the 1990 EM survey data were inverted in 3D and show a clear conductor that coincides with the top of the Golpu deposit. This conductor is probably due to sulphide veining which, unlike magnetite, has not been affected by late advanced argillic alteration.

7.4Petrology, Mineralogy, and Research Studies

A number of petrological and mineralogical studies were conducted in support of exploration vectoring, deposit understanding, and metallurgical designs. A total of 49 samples were taken in the area for age-dating. The majority of dates were returned from granodiorite, diorite, porphyry, diatreme, tuff and agglomerate samples using K–Ar methods; however, Rb–Sr dates were determined on granodiorite and porphyry samples. There are two carbon dates from coal/lignite samples in the Wafi Conglomerate.

Recent research and publications on the Project include:

•Rinne, M., 2015: Geology. Alteration, and Mineralisation of the Golpu Porphyry and Wafi Epithermal Deposit, Morobe Province, Papua New Guinea: PhD thesis, University of Tasmania, 162p; and


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•Rinne, M., Cooke, D., Harris, A., Finn, D., Allen, C., Heizler, M. and Creaser, R., 2018: Geology and Geochronology of the Golpu Porphyry and Wafi Epithermal Deposit, Morobe Province, Papua New Guinea: Economic Geology. Vol 113, pp. 271–294.

7.5Geochemical Sampling

CRAE completed ridge and spur sampling programmes from 1980–1982. CRAE also conducted an initial trenching programme comprising 102 trenches, varying in length from 1–1,840m, for a total 34,129m of trenching. Information from these programmes was superseded by drill data.

7.6Surface Drilling Campaigns

Drilling completed to date included diamond core drilling and reverse circulation (“RC”). The drilling by year and company is summarised on a Project-wide basis in Table 7-1. A total of 791 drill holes (including wedges) were completed in the Project area since 1983, comprising 285,757m of core drilling and 17,180m of RC drilling. No drilling has been conducted since the end of 2018. The location of all drill holes is presented in Figure 7-1.

Table 7-1: Summary of All Drill Holes


Year	Company	No. Holes	Core (m)	RC (m)
1983	CRA	5	628	0
1983-1985	CRAE	21	5,199	0
1985-1986	CRAE	7	2,492	0
1989	Elders	58	5,589	2,100
1990	Elders	10	3,265	0
1991	Elders/CRAE	9	4,011	0
1992	CRAE	4	2,178	0
1993	CRAE	8	3,941	0
1994	CRAE	2	1,761	0
1995	CRAE	22	10,281	0
1996	CRAE	13	5,762	0
1997	CRAE	11	4,610	0
1998	CRAE / AGF	15	5,859	0
2003	Abelle	18	8,219	0
2004	Abelle	70	0	13,155
2005	Harmony	14	6,104	0
2006	Harmony	27	11,357	0
2007	Harmony	42	5,809	1,925
2008	Harmony	19	7,716	0
2008	WGJV	32	17,868	0
2009	WGJV	38	18,868	0
2010	WGJV	59	36,121	0
2011	WGJV	47	32,354	0
2012	WGJV	66	30,228	0
2013	WGJV	66	34,133	0
2014	WGJV	65	11,651
2015	WGJV	17	911	0
2016	WGJV	8	6,014	0
2018	WGJV	18	2,828	0
Total		791	285,757	17,180


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Figure 7-1: Location of Drill Holes
Source: Newcrest, 2019


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The Mineral Resource estimates for the various projects are supported by the number drill holes indicated Table 7-2. Due to the location of the deposits in close proximity, and the location of the drill collar, a single drill hole can inform more than one estimate. Drill hole collars are shown in Figure 7-1 by drill type for the Project as a whole, and for the respective Mineral Resource estimates.

Table 7-2: List of Drill Holes by Used in Mineral Resource Estimates


Project	Company	No. Holes	Metres Drilled (m)
Golpu	Abelle	17	2,802.00
	CRAE	50	24,176.70
	Elders	18	3,501.40
	Harmony	32	11,861.35
	WGJV	189	168,384.00
Sub Total		306	210,725.45
Wafi	Abelle	86	21,143.80
	CRAE	93	35,493.60
	Elders	68	8,852.90
	Harmony	79	23,063.10
	WGJV	156	117,017.40
Sub Total		482	205,570.80
Nambonga	Abelle	-	-
	CRAE	-	-
	Elders	-	-
	Harmony	13	5,097.30
	WGJV	21	12,982.10
Sub Total		34	18,079.40
Grand Total		822	434,375.65
Note: A single drill hole can inform more than one estimate.

7.7Diamond Drilling Campaigns, Procedures, Sampling, Recoveries and Results

7.7.1.Drilling Methods

Diamond drilling was performed by wireline methods using HQ (63.5mm core diameter), NQ (47.6mm), and PQ (85.0 mm) core. There are occasional intervals of BQ (36.5mm) core.

Drill contractors included PNG Drillers and United Pacific Drilling. The most recent programmes were completed by Traverse Drilling International (TDI) of Australia using two heli-support drill rigs (SC11 and Cortech CS1000), and as many as six track-mounted DE740 drill rigs.

Some drill cores were oriented for structural analysis with an automated Ace Tool.

7.7.2.Collar Surveys

Drill hole collars were located using a hand-held global positioning system (GPS) instrument and later surveyed in the Wafi Grid by a qualified and competent surveyor using theodolite or differential GPS (DGPS) instruments. Drill collars that support Mineral Resource estimation have co-ordinates provided from these surveys; if no survey was available, the drill hole was excluded from estimation support.

Drill holes drilled by Elders and CRAE from 1990 to 1996, were surveyed by CPS Palanga Surveys Pty Limited and drill holes drilled by Harmony and WGJV from 2005 to 2014 were surveyed by Asia Pacific Surveyors. The Harmony and WGJV drill hole collar positions were marked and labelled with a 1.5m length of 100mm diameter PVC pipe cemented into a concrete collar block.

7.7.3.Downhole Surveys

The Elders and CRAE drill holes were surveyed using an Eastman single-shot camera.


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Downhole surveys were completed on CRAE core holes at Golpu typically starting at 25m depth, and then every 20–50m downhole.

Harmony/WGJV drill holes were surveyed at Golpu using a Reflex downhole survey tool, typically with the first reading at 18m and then every 30m thereafter downhole. Ten-metre intervals were used in some deep wedged holes where good survey control was required.

Gyroscope surveys were conducted at Golpu by site geologists from 2011 to 2012. This instrument defined the relative change in orientation from the top to the bottom of the hole but required the starting azimuth to be defined by surface survey. From 2012, downhole surveys were conducted by an independent contractor using a north-seeking gyroscope instrument applying quality control and calibration procedures. Surveys were completed every 500m with 100m overlap down the drill hole.

Downhole surveys were completed on all Wafi and Nambonga core holes typically commencing at 25m depth, and then every 50m downhole.

Where multiple downhole survey methods were used, all results were recorded in the DataShed database. The highest precision method, and the least susceptible to magnetic interference, was assigned the highest priority and is used for sample locations in the Mineral Resource estimate.

7.7.4.Logging Procedures

All drill core was geologically and geotechnically logged.

Geological logging was both qualitative and quantitative, and recorded lithology, mineralisation, alteration mineralogy, weathering, structural characteristics and other physical core properties. A consistent geological logging standard and descriptive terminology has been applied since drill hole WR173. Historical logging conducted by CRAE, and Elders was transformed into this terminology.

Geological logging codes evolved over time with increased geological understanding of different rock types and associations. For most drill holes, logging includes details of:

•core recovery;

•rock quality designation (“RQD”);

•lithology;

•alteration; and

•weathering; and

•structural features.

Detailed geotechnical information, such as rock strength, fracture frequency, rock mass rating (“RMR”) and discontinuities was collected for some later core drill holes.

Mineralisation was logged and photographed prior to sampling. All core photographs were downloaded and uploaded to a computerised database for reproduction purposes. Core photographs are available for drill holes completed since 1996.

Magnetic susceptibility readings were measured at 1m intervals downhole with a hand-held portable magnetic susceptibility device. All the data collected are entered into the database.

Structural measurements were recorded using LogChief software and uploaded into the Project database. All oriented drill core data collected were used for structural interpretation kinematics analysis.

Reflectance spectroscopy mineralogical identification (ASD and Corescan) data were collected to aid in clay and alteration mineral identification.


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7.7.5.Drilling Results

With over 700 drill holes being completed since 1993, the results are too voluminous to be reported in this report. The results have, however, been included into the geological modelling and Mineral Resource estimation process.

7.7.6.Core Recovery

Core recovery was recorded for all core drilling on a metre-by-metre basis as a percentage. All drilling since 2005 was conducted using triple-tube core barrels. Sample recovery was 96.4% over the entire drilling dataset, including oxide material and Wafi epithermal mineralisation.

Core recoveries average 98.4% within the Golpu Mineral Resource estimate area. No material relationship was identified between core recovery and grade.

Core recovery at the Wafi deposit was good, with >90% recovery in the mineralised units. There is no correlation between the gold grade and higher recovery zones.

Core recovery at the Nambonga deposit was good, with >95% recovery in the mineralised rock types.

7.7.7.Sample Length and True Thickness

Drilling density varies in the Golpu area from 50m x 50m above 5,100 RL to 200m x 200m below 4,100mRL. The Golpu mineralised system is approximately elliptical in plan, elongated towards 345° Wafi local grid (“WLG”) with a steep westerly to sub-vertical dip. The majority of drilling is oriented across this direction, but the dataset does include holes drilled parallel to the long axis. Most drill holes are complete high angle transects through the porphyry and enclosing mineralised host sediments. The orientation of sampling is considered unbiased toward known structures, and adequate for the disseminated nature of the porphyry gold–copper mineralisation.

The drill density at the Wafi deposit does not have a uniform spacing but is typically between 50m x 50m to 100m x 100m and increases to 200m x 200m at depth. Most drilling is clustered in the areas around the high-grade Link Zone and the high-grade portions of the A Zone. Mineralisation at Wafi dips at about 40° WLG, subparallel to bedding. The majority of drilling at Wafi is oriented west to best drill across the east-dipping mineralisation. Drilling is generally perpendicular to the mineralisation dip, and therefore drill thicknesses approximate true thicknesses.

The drill hole density at collar in the Nambonga area is approximately 100m along 80m-spaced lines. Drill hole spacing in the mineralised zones is typically >60m but may be >100m in some areas. The majority of the drilling is oriented across the elongation of the main porphyry bodies and is considered acceptable for the disseminated nature of the porphyry gold–copper mineralisation. Drilled thickness in the majority of the drill holes approximates true thickness.

7.7.8.Drill Hole Completed Post Mineral Resource Database Close-out

Eight additional holes were planned to be drilled into the Golpu mineralisation primarily for geotechnical assessments of cave conditions between June 2016 and January 2017. Seven drill holes (7,568m) were completed, and one drill hole abandoned.

Geological logging and assays returned from the 2016–2017 programme drill holes indicate no material changes to the assumptions in geological and grade continuity in the Mineral Resource model. The drill results may locally change grade estimates; however overall, the new drilling should have a minimal effect on the average grade of the model.

Eighteen geotechnical drill holes were completed in 2018. These drill holes were for infrastructure support purposes and were not assayed.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

7.8RC Drilling Campaigns, Procedures, Sampling, Recoveries and Results

RC drilling procedures, sampling, recoveries and results are reported here where different to those reported above in the core drilling section.

7.8.1.Drilling Methods

Most drilling at Wafi-Golpu has been completed using diamond rigs, however a campaign of 70 RC drill holes (13,137m) was completed in 2007 at Wafi. The RC drilling was completed using a track mounted RC rig using Ore Search Limited (Western Australia).

7.8.2.Collar Surveys

Drill hole collars were located using a hand-held GPS instrument and later surveyed in the Wafi Grid by a qualified and competent surveyor using theodolite or DGPS instruments. Drill collars that support Mineral Resource estimation have co-ordinates provided from these surveys; if no survey was available, the drill hole was excluded from estimation support.

7.8.3.Downhole Surveys

Downhole surveys were not completed for 2007 RC drill holes. The design collar azimuth and dip were used for these drill holes.

7.8.4.Logging

RC cuttings for each metre drilled were sieved and stored in chip trays for each drill hole. Drilling was logged onto paper logs that were transcribed into Microsoft Excel spreadsheets before loading into the sites SQL database. Once loaded the results were cross checked to reduce the chances for data entry errors. The cuttings were logged for:

•lithology;

•alteration;

•weathering; and

•structural features.

7.8.5Drilling Results

With over 170 drill holes being completed since 1993, the results are too voluminous to be reported in this report. The results have, however, been included into the geological modelling and Mineral Resource estimation process.

7.8.6Chip Recovery

Sample chips are captured in a calico bag using a cyclone. Chips recovered are weighed to ensure adequate chip recovery.

7.8.7Sample Length and True Thickness

Samples are taken at 1m intervals.

The Golpu mineralised system is approximately elliptical in plan, elongated towards 345° WLG with a steep westerly to sub-vertical dip. The majority of drilling is oriented across this direction, but the dataset does include holes drilled parallel to the long axis. Most drill holes are complete transects through the porphyry and enclosing mineralised host sediments. The orientation of sampling is considered unbiased toward known structures, and adequate for the disseminated nature of the porphyry gold–copper mineralisation. Drilled thickness in the majority of the drill holes approximates true thickness.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

7.9Hydrogeology

Thirteen boreholes have been drilled across the Wafi-Golpu site that are monitored on a quarterly basis. A number of holes in and around the portal site originally used for water level monitoring have been decommissioned due to a lack of resources.

7.10Geotechnical Data

From 2011 onwards, approximately 20cm intervals of whole core were submitted for unconfined compressive strength (UCS) testing. UCS samples were collected at approximately every 30m in decline holes and 20m intervals in resource definition drill holes. These 20cm intervals were not assayed.

A terrestrial geotechnical site investigation was carried out along the infrastructure corridor. The investigation comprised the excavation of 55 test pits (backhoe or hand auger), five sonic boreholes and two diamond holes as well as soil resistivity and refraction microtremor (ReMi) geophysical surveys. Standpipe piezometers were installed at four locations upon completion of the boreholes to enable collection of water samples for geochemical testing.

7.11Commentary on Exploration

•core logging meets industry norms for gold and copper exploration;

•collar surveys were performed using industry-standard instrumentation at the time the drill programme was conducted;

•downhole surveys were performed using industry-standard instrumentation at the time the drill programme was conducted;

•recovery data from core drill programmes are acceptable;

•geotechnical logging of drill core meets industry standards for planned caving operations;

•drill orientations are generally appropriate for the mineralisation style and the orientation of mineralisation for the bulk of the deposit areas;

•drilling practices, logging, collar surveys and downhole surveys were periodically reviewed by WGJV, Harmony and Newcrest personnel, and independent auditors. These reviews indicated no material issues with the data practices or collection methodologies;

•the drilling patterns provide adequate sampling of the gold and copper mineralisation for the purpose of estimating Mineral Resources (Golpu, Wafi and Nambonga) and Mineral Reserves (Golpu); and

•sampling is representative of the gold and copper grades in the deposit areas, reflecting areas of higher and lower grades.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

8Sample Preparation, Analyses and Security

Section 229.601(b)(96) (8) (i-v)

8.1Sampling Method and Approach

8.1.1Core samples

All drill core was sampled and assayed over the entire drill hole length. Drill core was split using a core saw and half submitted for assay. In the case of PQ core, quarter-core was split and submitted. To maintain core integrity during cutting, some of the core was wrapped in tape to prevent it from breaking.

Core was cut during Harmony and WGJV drilling tenure along the orientation line indicating the bottom side of the drill hole. There is no record for the earlier drill holes as to whether the core was cut along a consistent orientation line. The likelihood of a sampling bias resulting from inconsistent sample selection is not considered to have a material impact on sample quality due to the stockwork nature of mineralisation.

The half (or quarter) core sent for assay was bagged in labelled calico sample bags with the sample number scribed on an aluminium strip included in the bag. The calico bags were placed in larger poly-weave bags and transported by road or helicopter to Lae by WGJV employees.

Most sample lengths at Golpu are either 1m (~ 80%) or 2m (~ 20%). Sample lengths were mainly 2m for drill holes WR001 to WR175 at Wafi, and then 1m for drill holes from WR176 onwards. Most core drill hole samples at Nambonga average 1m in length, with lengths varying at contacts of mineralised lithological units.

Historically all core was sawn in half at the Wafi site. During later drill programmes, the whole core was directly shipped as plastic-wrapped and secured trays to the dedicated core farm within a security-patrolled compound at Nine Mile, near Lae.

8.1.2RC Samples

The sampling procedure for the RC drill holes WRC001 to WRC070 was:

•sample bag was checked, aluminium tag placed in bag with the correct number;

•bag was attached to the sampler on the rig;

•after the sample bag was filled it was weighed;

•if the sample was sufficient, the manual riffle splitter was used to split the rejects and obtain the required sample weight;

•samples were arranged in sequence and blanks and duplicates inserted into the locations specified by the geologist. Duplicates were taken at a frequency of about one in 40 samples; and

•sample dispatch forms were completed, samples were placed into poly-weave bags in manageable weights and despatched to Wau.

The sampling procedure for the RC drill holes by Harmony in 2007 was:

•calico sample bags were labelled;

•standard, blank or duplicate were assigned to every tenth sample;

•assay pills to monitor sample preparation and analytical accuracy were inserted at random samples throughout sequence;

•1m interval of sample was collected from cyclone;

•sample was put through a riffle splitter;

•approximately 3kg of sample was collected in a calico bag;

•reject was collected in a white poly-weave bag;


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

•the drill hole interval, sample recovery and condition (wet/dry) were recorded in a sample book; and

•samples were transported to site, and then dispatched to the Intertek Laboratory in Lae.

8.2Density Determination

The physical determination of density was undertaken on solid pieces of core, 10cm in length. The measurements were performed on site (as part of the logging process) by geological assistants. Measurements were typically taken at 10m intervals downhole.

The methods used to derive bulk density values include air/water (approximately 95%) and wax/water (approximately 5%). All bulk density measurements were carried out in accordance with site standard procedures for specific gravity determination ensuring that a consistent methodology was applied for all Harmony and WGJV determinations.

There is a total of 19,942 bulk density measurements for Golpu, with a mean of 2.69t/m3. Values range from an average 2.43t/m3 in oxidised rock to an average 2.77t/m3 in hornblende porphyry.

Golpu bulk density domains were derived from a combination of oxidation, alteration and lithology. Statistical analysis, including histograms, was performed on each domain and anomalous values were excluded from the dataset. Density values used for Wafi were derived from the Golpu measurements.

There was no apparent relationship between bulk density and grade, but there was a weak to moderate correlation between bulk density and RL at the higher oxidised levels (WGJV, 2013).

Evaluation of the available Nambonga data indicated a significant change in the specific gravity (SG) of the host rocks that appeared to correspond to a change in core quality from highly broken near surface to solid core at depth. The 291 measurements above the SG anomaly had an average bulk density of 1.85, whereas below the SG anomaly, the mean bulk density value was 2.85. This SG anomaly was coded into the model; however, the rocks were assigned the heavier unbroken SG, given the bias is believed to be related to the inability of the geologists on site to obtain realistic SG samples due to the highly broken nature of the core. Bulk density domains were derived from a combination of oxidation, alteration and lithology, with mean values ranging from 2.68–2.88 assigned to domains. Statistical analysis, including histograms, was performed on each domain and anomalous values based on two standard deviations were excluded from the dataset. Density was directly assigned to the block model by density domain.

8.3Sample Security

Sample security has not historically been monitored. During early exploration campaigns, sample collection from drill point to laboratory relied upon the fact that samples were either always attended to, or stored in the locked on-site preparation facility, or stored in a secure area prior to laboratory shipment. Chain-of-custody procedures consisted of sample submittal forms to be sent to the laboratory with sample shipments to ensure that all samples were received by the laboratory.

During the WGJV drill programmes, drill core was delivered directly from the drill rig at the end of each shift by the drill crew to the logging shed within the Wafi Camp security compound. This compound is fenced and under 24-hour patrol.

Whether transported as trayed whole core or sawn core samples, all transport for WGJV programmes was always under the direct supervision of WGJV employees within tamper-evident packaging from site until delivery to the Intertek Laboratory in Lae.

Core samples were prepared in Intertek Lae within their secured premises and pulps were air-freighted by international couriers to Intertek Jakarta for assaying. A detailed labelling, documentation and tamper-evident packing protocol was in place for this transfer. Pulps were stored on a long-term basis in Jakarta. Assay results from Intertek Jakarta were returned to the WGJV network and loaded to the Wafi database by dedicated administrators after correlation against despatch records, and after passing the QA/QC protocol.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

8.4Sample Storage

Drill core is stored in a dedicated and fenced facility at Nine Mile, near Lae (Figure 3-1). Due to the nature of mineralisation, the sulphidic intercepts are especially prone to oxidation and degradation. Some core, particularly for metallurgical purposes, was stored in a cold-storage facility in Brisbane.

Pulps and crusher residues were returned from the Lae laboratory to the Nine Mile core farm for long-term storage under direct supervision of WGJV staff. Since 2011, pulps are retained for all samples in a dedicated storage facility at Intertek Jakarta.

8.5Laboratories Used

Pilbara Laboratories in Lae (Pilbara Lae) was the primary laboratory during the CRAE/Elders drill campaigns (1990–1996). The laboratory was independent. No accreditations were recorded in the Project database. Pilbara Lae underwent a name change to Analabs Lae during the work programme. Analabs was subsequently acquired by Genalysis.

Some primary sample preparation was conducted by SGS Lae, with analysis completed in SGS Townsville during the early evaluation drilling. The laboratories were independent. SGS Townsville obtained ISO9001 accreditations in 2001; there is no accreditation information for SGS Lae in the database.

Samples collected from 2005 onwards were prepared at the Genalysis Laboratory in Lae (Genalysis Lae) and forwarded to the Genalysis Jakarta laboratory (Genalysis Jakarta) for analysis. The Intertek Group subsequently acquired Genalysis and the laboratories were renamed. The laboratories were independent. Intertek Lae is not accredited. Intertek Jakarta obtained ISO17025 accreditation in 2014; accreditations prior to that date are not recorded in the Project database.

A number of laboratories were used as check laboratories over the Project history, including locations and laboratories in Madang (PNG Analytical), Lae (SGS, Analabs, Intertek), Wau (SGS), Townsville (Analabs, SGS, ALS Chemex), and Perth (Genalysis, UltraTrace [now part of the Bureau Veritas group]). Laboratories were all independent; however, accreditations at the time of use are not recorded in the Project database.

The ALS laboratories have a multi-site certification from Sustainable Certification (Pty) Limited for the provision of metallurgical, mineralogical testing and analytical services from June 2019, expiring in May 2022. This also includes ISO 45001:2018, ISO 14001:2015 and ISO9001:2015 certification.

8.6Laboratory Sample Preparation

Sample preparation used at the Pilbara Lae laboratory comprised:

•drying;

•crushing to nominal 5 mm;

•coarse disc pulverising to nominal 180μm;

•splitting 500g;

•fine pulverising in ring mill to nominal 75μm; and

•100g sub-sample sent for analysis.

Sample preparation at the SGS Wau laboratory, with pulps sent to SGS Townsville for assay, consisted of:

•drying;

•jaw crushing to nominal 10mm;

•crushing in terminator crusher to nominal 2m;

•splitting 1kg in rotary splitter;

•pulverising 1kg in LM2 to nominal 75μm; and

•splitting 100g pulp.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Sample preparation completed at the Intertek Lae sample preparation facility in the period 2005–2011, with pulps sent to Intertek Jakarta for assay, consisted of:

•weighing entire sample;

•drying in oven (105°C standard, 65°C if mercury to be analysed);

•weighing dry sample;

•jaw crushing to nominal 2mm;

•riffle splitting of 1.5kg;

•pulverising 1.5kg to -200 mesh (75μm) using LM5 mill; and

•250g pulp sent for analysis.

Sample preparation at the Intertek Lae sample preparation facility in the period 2012 – 2014, with pulps sent to Intertek Jakarta for assay, consisted of:

•drying at 60°C;

•crushing using a Boyd crusher to minimum 90% passing 2mm;

•subsample of 3.5 kg (±0.5kg); pulverised using LM5 mill to minimum 95% passing 106μm; and

•250g pulp sent for analysis.

8.7Assaying Methods and Analytical Procedures

A number of different analytical methods were used over the Project history. Intertek Lae and Intertek Jakarta used varying digest and analytical procedures over the Project history.

During the 2005–2008 Harmony drilling, gold was determined by 50g fire assay with atomic absorption spectroscopy (“AAS”) finish, multi-element analyses including copper, silver, molybdenum, arsenic and iron were determined by two-acid digest, followed by inductively-coupled plasma (“ICP”) multi-spectral (“MS”) or optical emission spectroscopy (“OES”) finishes. Copper was re-assayed by four-acid digest when original samples assayed >10,000ppm Cu. Sulphur was determined by LECO.

From 2009–2018, gold was determined by 30g fire assay with AAS finish, multi-element analyses including copper, silver, molybdenum, arsenic and iron were determined by two-acid digest, followed by an ICP MS/OES finish. Copper was re-assayed by four-acid digest when original samples assayed >10,000ppm Cu.

From October 2013 onward, multi-element analyses were determined by four-acid digest with an ICP MS/OES finish.

8.8Sampling and Assay Quality Control (“QC”) Procedures and Quality Assurance (“QA”)

Routine QC measures were undertaken to check the precision and accuracy of analytical methods used by the laboratories. The checks involved regular insertion of blanks, duplicates, and gold and base metal standard reference materials (“SRMs”) into all batches of samples dispatched to the laboratory for analyses.

All assays were checked and verified in accordance with Harmony Quality Assurance Quality Control and database management procedures.

The blank samples were sourced from a road base gravel pit near Lae, where no known gold mineralisation exists. SRMs were purchased from Geostats (Pty) Limited (Australia). Insertion rates were typically 1:40 for SRMs, and 1:100 for blanks.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

8.8.1Golpu

QA/QC protocols for Golpu drilling varied over time and are summarised in Table 8-1. Repeat samples were obtained from pulverised material at the rate of 1:20. Coarse duplicates, inserted at a rate of one in 20, were also repeat-analysed.

All data from all campaigns support Mineral Resource estimation with no restriction on confidence categories.

No specific drill holes were twinned at Golpu. However, due to the drilling configuration (typically towards grid west or to grid west on the common sections and multiple holes from a single drill pad with small variation in dip), multiple holes cross in close proximity. No major inconsistencies in sampling and assaying were identified between these drill holes.

8.8.2Wafi

QA/QC protocols for Wafi drilling varied over time and are summarised in Table 8-2. A review of the QA/QC data was completed, with the following findings:

•results of check assays for the period 1990–1996 indicate no systematic bias in gold results from Analabs Lae;

•gold results from quarter core duplicate compare fairly well although there are a number of samples outside the ±10% range;

•a selection of pulps was sent to SGS Townsville in 2007. Gold results illustrate a number of samples outside the acceptable limits, however, there does not appear to be a consistent bias present. The erroneous results are possibly due to sample mix-ups in the sample preparation and/or assay process, or nugget effect; this bias has not been followed up.

A review of historical documentation on the Wafi database and assay data found that CRAE identified a significant bias in the Elders analytical results. Log probability plots of the gold sample populations grouped by company illustrate that the Elders sample population was biased higher than the CRAE and Harmony/WGJV sample populations for the gold range of 0.1– 5ppm; the bias was significant. The Elders drill holes were relatively shallow and predominantly clustered in the southern area of A Zone and several in the shallower areas of B Zone. As the Elders drill holes have an average depth of <150m, a further check on the bias was done by comparing the sample populations for all samples with a “depth to” value <150m. This check compared similar samples from the other drilling data and further confirmed the presence of the bias in the samples. As a result, samples from the affected Elders drill holes (WR032–WR085) were not used in grade estimation.

8.8.3Nambonga

Sample preparation, security and analytical procedures used at Nambonga were the same as those used for the Wafi and Golpu deposits.

Laboratory pulp checks showed good precision between the splits, repeats and original samples. The low-grade gold SRM being used performed consistently well. Blanks are generally consistent but with some erratic results and bias in some drill holes.

8.9Comment on Sample Preparation, Analyses and Security

•drill sampling was adequately spaced to first define, then infill, gold and copper anomalies to produce prospect-scale and deposit-scale drill data;

•sample preparation for core samples has followed a similar procedure since Harmony acquired the Project in 2005. The preparation procedure was in line with industry-standard methods;

•analytical methods for core samples used similar procedures. The analytical procedures were in line with industry-standard methods;


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Table 8-1: QA/QC Protocols for Golpu


Year	Company	Comment
1990-1996	CRAE, Elders	No standards or duplicates were inserted. Regular submission of pulp splits to a second umpire laboratory was conducted. There does not appear to be a systematic bias in the results between the primary and umpire laboratories for this dataset. An evaluation of including/excluding the CRAE/Elders data indicated that the use of these legacy data in the final estimate has no material impact on grade in the classified volumes of the Golpu model. Some domains showed an improved local precision due to the increased data population available with the inclusion of the legacy data.
2005 - 2008	Harmony	Insertion of SRMs, blanks, specific hole quarter core duplicates and re-assay of selected pulp splits at a second laboratory. Used 19 gold SRMs; no significant bias was observed in any of the gold standards. Used 9 base metal SRMs; Cu analysed using a 2-acid method (Cu <10,000 ppm) showed a consistent negative bias of 5–7%. For Cu >10,000 ppm, analysed using a four-acid method; the results showed no significant bias. Silver and arsenic showed a consistent negative bias of 5–10% across all grade ranges. Blank sample results showed acceptable levels. However, there were a number of outliers, some of which are likely to be SRM swaps. A selection of pulps was sent to a second laboratory for re-assay. Gold results showed a good correlation; however, the copper results showed a 7.5% bias in the Intertek results compared to the umpire laboratory, SGS Townsville. No SRMs were included in the batch, so it is not possible to determine which set of results (or both) are biased. However, the internal copper standards suggest that Intertek did not have any significant copper-positive bias. The program assay results were considered acceptable for use in Mineral Resource estimation.
2009 - 2014	WGJV	Included submission of SRMs, blanks, campaign quarter core duplicates and re-assay of selected pulp splits at a second laboratory. Insertion rates consisted of SRMs at 1:20; coarse duplicates at 1:20, pulp duplicates at 1:20. 5% of all sample pulps were checked at a nominated second check laboratory with new standards included at a rate of 1:20. Matrix-matched SRMs were created from homogenised coarse reject Golpu mineralised material and implemented into the QA sample stream from April 2013, in addition to the commercially-purchased SRMs already in use. Used 15 gold SRMs; results typically fell within ±2 standard deviations (SDs), with a small number of outliers. No significant bias was observed in any of the gold SRMs. Used 15 base metal SRMs, with four-acid (full digest) certifications for copper, silver, arsenic, molybdenum, sulphur and iron. Copper results, when analysed by two-acid digest for samples containing <10,000 ppm Cu, were negatively biased by 5–10% against the SRM certification. Copper results, when analysed by four-acid (full digest) run on samples containing >10,000 ppm Cu, showed no significant bias compared to the standard certification. Since October 2013, all copper analyses were run with four-acid digest, and no significant bias has been observed. Silver, arsenic, molybdenum and iron showed a consistent negative bias of 5–10% when analysed by two-acid (partial digest) methods. From October 2013, when analysed by the four-acid (full digest) method, no significant bias was observed. Sulphur results analysed by LECO performed within acceptable limits throughout. Blank samples for Au and Cu show that blanks results performed well with only a small number of outliers. Gold and copper results from laboratory repeats also compared well. SGS Townsville and UltraTrace Laboratories Perth used as check laboratories. Gold, copper, silver, sulphur and iron results showed a good correlation between laboratories. The original Intertek laboratory results for silver and arsenic samples are 5–6% lower than the results from the umpire laboratory. Resubmitted a selection of coarse reject samples to Intertek. The coarse duplicate results performed very well and were consistent with the style of mineralisation and the splitting mechanism used. The relative paired difference average for 80% of the samples is well below the generic 25% for gold and 20% for base metals that was used as an internal guide to assess repeatability of coarse duplicates. The analysis methods employed are considered appropriate for the mineralisation style and tenor of grades. No material issues were identified that would invalidate the use of the primary assays held in the Wafi–Golpu DataShed database for Mineral Resource estimations for Golpu.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

Table 8-2: QA/QC Protocols for Wafi


Company			Comment
Elders			Regular submission of standards and duplicates was not carried out.
CRAE			CRAE identified a significant bias in the Elders Resources sample data for drill holes WR032 to WR085 and a program of re-assay and check assay sampling was carried out during 1996 and 1997. The re-assays are reported as being at least partly incorporated into the drill hole database. As the bias had not been resolved, samples from the affected Elders drill holes were not used in grade estimation in the Wafi resource estimate CRAE is reported to have included standards and blanks in sample batches for some drilling but these are not documented. Umpire assays at a second laboratory were completed.
Abelle / Harmony			Included regular SRMs, blanks and duplicates. 19 different standards were used between 2003–2007 with almost all results falling within a two standard deviation range with a small number of outliers Pulp repeat assays, and coarse split duplicates were submitted for assay. The pulp repeats illustrate suitable precision and the coarse split duplicates illustrate acceptable repeatability through the sample preparation process Selected pulps from mineralised intervals were sent to SGS Townsville laboratory for check. The umpire assays show that there is no bias present between the Intertek Jakarta and SGS Townsville laboratories.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

•the WGJV has used a QA/QC programme comprising blank, SRM and duplicate samples. QA/QC submission rates were typical for the programme at the time the data were collected. Evaluations of the QA/QC data did not indicate any significant problems with the analytical programmes, therefore the gold and copper analyses from the core drilling were suitable for inclusion in Mineral Resource estimation;

•data collected prior to the introduction of digital logging were subject to validation;

•verification was performed on all digitally-collected data on upload to the main database, and included checks on surveys, collar co-ordinates, lithology, and assay data. The checks were appropriate, and consistent with industry standards;

•current sample storage procedures and storage areas were consistent with industry norms.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea

9Data verification

Section 229.601(b)(96) (9) (i-iii)

9.1Databases

Data management into the various databases include the following:

•drill hole data are currently stored within an SQL database located at the Lae office. The SQL database uses DataShed software as the user interface;

•drill core was logged directly in the core shed into laptops using LogChief logging software with periodic integration to the WGJV database;

•initial collar surveys were uploaded into LogChief. The final collar pickups were provided by a qualified surveyor in comma-separated value (csv) format, and directly uploaded into DataShed;

•downhole survey data were imported via *.csv files from the survey instruments into LogChief logging software and then uploaded into the DataShed database;

•density data were directly recorded into the LogChief logging software, and then uploaded into DataShed; and

•assay data were received from the laboratory in digital format and were uploaded to the WGJV database using import templates. Significant intersections were reported by the geology team and verified by the WGJV Geology Manager.

All data uploaded to the database had to pass data integrity checks and reviews. User access to the database was controlled by a hierarchy of permissions and was controlled by WGJV database administrators, with oversight of data integrity by an external DataShed software specialist.

Historical assay data collated by CRAE were imported into the WGJV database from an existing MS Access database. The process used by CRAE to transfer assay data into their database was not recorded; however, checks of the assay data in the database with the original hardcopy results conducted in 2010 (Smith, 2010) indicated that the data were acceptable for use in a Mineral Resource estimate.

The WGJV provides copies of the database to each of the individual WGJV Participants. Database checks were done by Harmony PNG employees seconded to the WGJV; these Harmony PNG personnel included staff who had oversight of database management and Mineral Resource estimation.

The database is regularly backed up, and copies are stored in offsite and in Harmony PNG facilities.

9.2Data Verification Procedures

9.2.1Internal Data Verification

Drill hole data for the Project were collected over many years by a number of operators. Mineral Resource documentation indicates that at various times the legacy data were reviewed and compiled into a drill hole database. Limited numbers of the original laboratory certificates were available for the legacy data. More recent drilling activity by Harmony and then by WGJV was conducted under standard operating procedures that include data verification before data were accepted into the drill hole database.

Legacy assay data collated by CRAE was imported into the Project DataShed database from an existing Access database. The process used by CRAE to transfer assay data into their database was not recorded; however, checks of the assay data in the database with the original hardcopy results indicate they were acceptable for use in a Mineral Resource estimate (Smith, 2010).

Approximately 20% of composites used in the Golpu Mineral Resource model are derived from CRAE/Elders drilling. These drill holes are located in the upper Golpu Porphyry where there is also significant drill data acquired during Harmony and WGJV drill programmes. The later drilling supports the use of the CRAE/Elders data in estimation.


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Data review was completed before the estimation of Mineral Resources and Mineral Reserves. No material errors were identified after final data extraction for input to the Mineral Resource model estimation.

A specific data review exercise was completed before the estimation of the Golpu Mineral Resources:

•drill hole location and downhole path checks included validation of collar surveys plotted against planned locations and topographic surveys and consistency of the hole trace;

•assays were reviewed for outliers and errors and compared with observed mineralisation;

•checks were conducted to ensure QA/QC protocols were followed before data were loaded to the database; and

•logging records were reviewed against core photographs as part of the interpretative geology compilation and wire-framing.

Any errors that were identified were corrected before final data extraction for Mineral Resource estimation purposes.

A specific data review exercise was completed before the estimation of the Nambonga and Wafi Mineral Resources:

•drill hole location and downhole path checks included validation of collar surveys plotted against planned locations and topographic surveys and consistency of the hole trace;

•assays were reviewed for outliers and errors and compared with observed mineralisation;

•checks were conducted to ensure QA/QC protocols were followed before data were loaded to the database; and

•logging records were reviewed against core photographs as part of the interpretative geology compilation and wire-framing.

Any errors that were identified were corrected before final data extraction as input to the Mineral Resource estimation.

A series of external data verification exercises have been complete on Golpu as follows:

•in 2012 AMC Consultants (Pty) Limited (“AMC”) were commissioned to conduct a review of the drilling, sampling and analytical processes and associated QA/QC procedures that were relied upon to support the Golpu estimates. The Golpu Mineral Resource and Mineral Reserve estimates were the subject of independent external review by AMC in 2012. No material issues were identified in these reviews and AMC concluded that the 2012 estimates were prepared using accepted industry practice and had been classified and reported in accordance with the 2012 JORC Code;

•in 2018, SRK performed an independent review of the Mineral Resource estimate, checking input data and the estimation methodology and process. SRK concluded that the estimate was suitable for use in feasibility-level studies assuming a block caving mining method; and

•in 2012, 2016 and 2018, an external review of all drill hole locations was completed by third-party surveyors Quickclose (Pty) Limited;

External data verification exercises were also completed on Wafi as follows:

•in 2015 AMC reviewed the Mineral Resource estimate and concluded that the 2015 estimates were prepared using accepted industry practice and had been classified and reported in accordance with the 2012 JORC Code; and

•in 2019 SRK performed an independent review of the Mineral Resource estimate, checking input data and the estimation methodology and process. The estimate was considered to be reported in accordance with the 2012 JORC Code.


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External data verification exercises completed on Nambonga include:

•in 2008, Maxwell Geoservices reviewed the Nambonga drill database in 2008, and examined gold and copper assays, data entry, sample dispatch and return, sampling, repeats/checks, SRMs, blanks, duplicates, and assay prills. Overall, Maxwell Geoservices concluded that the data collected on the Nambonga deposit were suitable to support Mineral Resource estimates; and

•in 2018 SRK performed an independent review of the Mineral Resource estimate, checking input data and the estimation methodology and process. The estimate was considered to be reported in accordance with the 2016 SAMREC Code.

9.3Limitations to the Data Verification

The extensive and varied data verification exercises carried out on the Wafi-Golpu Project, both internally and externally have reduced the limitations to the data verification process. An issues raised were corrected and therefore the entire process of data obtaining reliable and verifiable data has improved with time. The QP has not identified any critical limitations to the data verification process.

9.4Comment on Data Verification

The process of data verification for the Project was performed by Newcrest and WGJV personnel and external consultancies contracted by the WGJV.

The QP, who relies upon this work, reviewed the reports and is of the opinion that the data verification programmes indicate that the data stored in the Project database accurately reflect original sources and are adequate to support geological interpretations and Mineral Resource and Mineral Reserve estimation, and in mine planning.

The QP performed a site visit on multiple occasions between 2011 and 2017 during which much of the Project Mineral Resource delineation drill programmes were completed. Observations made during these visits, in conjunction with discussions with site-based technical staff, support the geological interpretations, and analytical and database quality.


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10Mineral Processing and Metallurgical Testing

Section 229.601(b)(96) (10) (i-v)

10.1Extent of Processing, Testing, and Analytical Procedures

Metallurgical testwork completed on the Wafi-Golpu Project included:

•Golpu: modal mineralogy, copper mineralogy, sulphide grain size information, (SMC test, drop weight index (“DWi”), Bond ball mill work index (“BBWi”), ore hardness, ore competency (“Axb”), batch flotation, locked-cycle flotation, cleaner/scavenger tests, effect of primary grind size on gold recovery, tailings and concentrate thickening/pumping, concentrate filtration and characterisation; flocculant screening and dynamic settling testwork; rheological characterisation; and

•Wafi: Mineralogy, flotation, roasting, pressure oxidation (“POX”), bacterial leaching, and comminution work.

No metallurgical testwork was completed on the Nambonga deposit.

10.2Degree of Representation of the Mineral Deposit

The selection of domain composite samples was based on data from a variety of sources including geochemical analysis, Corescan and geological logs, and provided acceptable considerations of mineralogical associations.

Thirteen geometallurgical domains were defined for variability testwork, bulk flotation testwork and ore characterisation. Nine of the domains were of interest in the mining study. Most of the mineralised material is hosted in the Hornblende (Livana) Porphyry (Domain 30/33) and the adjacent metasedimentary rocks (Domain 29). The Hornblende (Livana) Porphyry domains are metallurgically similar, are classified as separate domains based on their position above and below the Reid Fault, and the major alteration types present.

Domain 33 represents a significant proportion of the feed for the first five years of the proposed mine plan. While Domain 30 was the basis of much of the flowsheet development programme testwork, substantial legacy work has also been completed on Domain 33.

Samples required for concentrate and tailings support and vendor testwork were produced via bulk batch flotation, using optimised flotation conditions (2013–2014 testwork campaign).

Samples selected for metallurgical testing during feasibility and development studies were representative of the various styles of mineralisation within the different deposits. Samples were selected from a range of locations within the deposit zones. Sufficient samples were taken, and tests were performed using sufficient sample mass for the respective tests undertaken.

10.3Analytical Laboratory Details

Laboratories and testwork facilities used during metallurgical evaluation of the Golpu deposit included the following independent consultants: Tunra Bulk Material Handling Research Association; JKTech; ALS laboratories in Brisbane and Adelaide; Metso; Outotec; Paterson & Cooke; SGS Environmental Services; Orway Mineral Consultants (OMC); and Glossop Consultancy.

Laboratories and testwork facilities used during metallurgical evaluation of the Wafi deposit include the following independent facilities: Ammtec Limited (“Ammtec”) (Perth), SGS Lakefield Oretest (Perth), Amdel, IML (Adelaide), Fox Anamet, JKTech (Brisbane), and Optimet (Adelaide). Internal laboratories at Newmont, CRAE, and Rio Tinto were also used.

Ammtec is ALS Metallurgy’s in-house assay facility which provides a wide range of testwork services, often tailored specifically to the client’s requirements. Therefore, this facility is not covered by ALS’s ISO certification referred to in Section 8.5. It does, however, operate under industry accepted standard and strict testwork protocols.


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10.4Golpu Test Results and Recovery Estimates

10.4.1Flowsheet Development

The following testwork and optimisation studies were conducted as part of the flowsheet development programme:

•ore characterisation studies, incorporating multi-element head analysis and quantitative X-ray diffraction (“XRD”) on geometallurgical variability samples;

•comminution studies on selected variability samples. The suite of tests conducted included BWi and semi-autogenous grinding (“SAG”) mill comminution (or SMC test) testwork;

•flowsheet development testwork and flotation optimisation, incorporating:

•rougher and cleaner rates to establish flotation kinetics;

•primary grind size establishment;

•sequential copper and pyrite flotation vs. bulk flotation;

•reagent screening and optimisation, including pH modifier, collector and pyrite depressants;

•optimisation of the copper and pyrite circuit cleaner regrind sizes;

•ore blending testwork;

•locked cycle testwork on individual domain samples, as well as on porphyry/metasediment blends; and

•gold leach characterisation, including leaching of the locked cycle test tailings.

The outcome of the flowsheet development programme was the development and optimisation of two process flowsheets namely the LEAN flowsheet and the Golpu flowsheet. This facilitated the stage-wise upgrading and modification of the process plant to accommodate the changing composition of the plant feed over the LOM. The first, LEAN flowsheet, was designed to provide an optimal processing solution for treating high-grade ores with a porphyry content of 75% or more. The second, Golpu flowsheet, was designed to treat mineralisation with a porphyry content of less than 75% and incorporated a pyrite circuit for improved gold recovery from the metasediment-rich material.

The results from the DWi, BWi and Axb tests are presented in Table 10-1. The Axb values ranged from very soft to very hard. BWi values ranged from medium to very hard. Overall, ore competency (Axb) did not correlate strongly with increases in BWi. This indicated that competence and therefore SAG milling performance was not related to grinding energy to achieve product size.

Table 10-1: Comminution Parameters


	Average			75th Percentile
Parameter	2015 Data Only	Full Set (excl 2015)	Full Set (incl 2015)	FS Data Only	Full Set (excl 2015)	Full Set (incl 2015)
BWi (kWh/t)	11.69	13.38	12.94	14.00	14.84	14.50
Axb	46.31	81.55	72.58	82.58	91.30	89.18
DWi (kWh/m3)	2.25	3.83	3.43	3.94	4.47	4.42

Due to a high co-efficient of variation in the Axb samples, the 75th percentile summaries were used to define the design criteria for the BC44 and BC42 mining zones. Material within BC40 was generally harder than the other two zones and could potentially necessitate a plant upgrade or installation of a secondary crusher when the material became part of the mill feed stream.

Two sets of benchmarking were undertaken, including benchmarking of the measured comminution data against OMC’s database as well as benchmarking of SAG-specific energy estimates for the Golpu Project against similar operations.


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10.4.2Variability Tests

Variability tests were conducted in open circuit, with selected locked-cycle tests conducted to simulate plant conditions and ensure repeatability. The selected variability samples targeted the Golpu Project payback period and were selected based on the following priority sequence: copper grade, then gold grade, then sulphur grade. The objective of the variability testwork was to generate metallurgical results over a range of head grades and spatial locations (mRLs) within the target domains of the planned block cave. In this manner, trends relating to ore variability could be identified for metallurgical modelling purposes.

The average variability result showed an excellent correlation to the bulk flotation testwork conducted for engineering and support testwork (Table 10-2 and Table 10-3). Recovery plots for copper and gold versus respective head grades showed poor correlation. In addition, no relationship between spatial location and recovery was observed. A potential correlation between Cu:S ratio and copper–gold recovery was noted. This correlation was enhanced by splitting the results above and below 4,700mRL. This, however, is still not a strong correlation, and further work would be required to refine this equation. Attempts were made to look at other parameters (including Fe:S, Au:S, Au:Fe and sulphur) but none of these provided adequate trends. The most promising correlations were between mass pull and recovery, for both concentrate and for rougher concentrate unit operations.

For cyclic variability tests, good copper grades and recoveries were obtained for most samples. The cyclic testwork results correlated well to the batch variability testwork results. It was noted that lower gold recoveries were achieved for some of the batch variability tests, when compared to the cyclic test on the equivalent sample.

Table 10-2: Statistical Summary of Variability Results – Total Copper Concentrate


		Concentrate Grade			Recovery
Description	Mass Pull (%)	Cu (%)	Au (g/t)	S (%)	Cu (%)	Au (g/t)	S (%)
Average	7.30	28.20	13.70	35.50	93.40	70.70	79.60
Maximum	10.80	33.90	24.70	45.80	97.20	84.70	95.30
Minimum	3.20	3.70	1.00	31.70	69.10	38.40	51.40
Standard Deviation	1.90	5.40	4.90	2.70	4.50	9.50	10.40
Notes: The minimum grade and recovery data were obtained from a very low-grade sample (sample 14), which has a head grade of 0.23% Cu and 0.11 g/t Au. The low grades and recoveries were therefore anticipated.

Table 10-3: Average Variability Results versus Bulk Flotation Concentrate


		Concentrate Grade			Recovery
Description	Mass Pull (%)	Cu (%)	Au (g/t)	S (%)	Cu (%)	Au (g/t)	S (%)
Average	7.30	28.20	13.70	35.50	93.40	70.70	79.60
Bulk Concentrate	7.90	28.10	12.98	38.10	95.50	68.60	72.80
Delta	-0.60	-0.10	0.72	-2.60	-2.10	2.10	6.80

10.4.3Flotation Modelling

An Excel-based metallurgical model was developed to predict year-on-year flotation performance based on the proposed life-of-mine plan. Separate recovery models were developed for the LEAN and Golpu flowsheets for porphyry and metasediment. The recovery and mass yields derived from these models were proportionately blended as per the proportions indicated in the LOM to generate a combined recovery model and to appropriately capture the different metallurgical characteristics of the two major lithologies of the ore were captured within the metallurgical model. The models were validated against locked-cycle testwork.

The foundation of the metallurgical models for all flowsheet variations was a mass pull versus recovery model for copper rougher flotation for the major elements (copper, gold and sulphur), derived from a simple decay model. The maximum recovery for each of the elements of interest was assigned from the maximum recoveries attained from the testwork programme.


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The remaining unit operations were modelled using standard metal balance techniques. Typically inputs into these unit operations included stage recoveries and concentrate upgrade ratios, expressed in relation to the rougher flotation model, as opposed to fixed recovery and concentrate grade values. This provided the facility for all recovery and grade values within the circuit to vary with head grade.

The metallurgical model was used to track trends relating to the process flowsheet over the anticipated mine life. These trends included mass pull to the various unit operations, copper and gold recoveries, as well as the grades associated with the various streams. The average and maximum values for each phase could be defined, and therefore used as a basis for the process design criteria.

The models derived for both LEAN and Golpu base case circuits were validated against appropriate locked-cycle testwork to ensure that the outputs were consistent with the testwork programme. This was conducted by applying the locked cycle test feed grades and ore composition to the developed model and comparing the outputs to the actual testwork results. The models prepared to simulate metallurgical performance compared well with the actual metallurgical performance measured during testwork (Figure 10-1 and Figure 10-2).

10.4.4Grind Optimisation

Tests on the optimum grind size for flotation were completed at three sizes, 300μm, 212μm, and 150μm. Results are provided in Figure 10-3 and Figure 10-4.

Recovery decreased significantly when the primary grind size was increased from the proposed grind of 106μm. On average, a copper recovery drop of approximately 6% was observed when the primary grind was increased from 80% passing 106μm to 80% passing 300μm. Similarly, an average gold recovery drop of 9% was observed

with the grind size was increased to 300μm.

The original recovery model used grinds up to 212μm, and therefore extrapolates to 300μm. Based on the testwork data, the model overstates recoveries at the coarser grinds (i.e., that recoveries used at these grinds were higher than will be expected).

It was concluded that the optimal grind size is 80% passing 106μm.

10.4.5Effect of Ore Composition on Flotation Performance

The LOM plan has increasing proportions of metasediment-hosted mineralisation in the mill feed. Testwork was conducted using the LEAN flowsheet, consisting of batch open circuit and locked-cycle tests on varying composites, ranging from 100% Livana Porphyry to 100% metasediment and selected porphyry to metasediment blend ratios in between these end members.

The results of the locked-cycle testwork indicated that flotation performance is adversely affected by the incorporation of metasediment into the flotation feed. Locked-cycle testwork results correlated well to the batch open circuit testwork conducted on the same samples (Figure 10-5). The locked-cycle test generally produced higher final concentrate recoveries than the batch tests.

10.4.6Effect of Ageing on Metallurgical Performance

Testwork was completed over a two-year period on sub-samples of mineralisation derived from acid rock drainage column test residues to assess the impact of wet ageing and oxidation of ores within the block cave area. The column cells were configured to simulate conditions in a mine surface coarse ore stockpile, where acidic water formation would emanate from a coarse ore stockpile exposed to weathering.

The tests were designed as an evaluation of worst-case scenarios. Standard batch cleaner flotation tests were conducted using the LEAN circuit configuration. Both copper and gold recovery were found to be severely impacted as a result of weathering and ageing. This was particularly the case in the cleaner circuit, where significant losses were observed.


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Figure 10-1: Graph of Golpu LEAN Flowsheet and Flowsheet Model
Source: WGJV, 2018
Figure 10-2: Graph of Golpu Flowsheet Model
Source: WGJV, 2018


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Figure 10-3: Graph of Copper Recovery versus Primary Grind
Source: WGJV, 2018
Figure 10-4: Graph of Gold Recovery versus Grind Size
Source: WGJV, 2018


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Figure 10-5: Graph of Ore Blend Testwork Results


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Additional tests indicated that losses to rougher tailings could be suitably mitigated through controlled potential sulphurisation, as well as increased collector dosage. It was also observed that controlled potential sulphurisation mitigated the effects of oxidation on copper recovery, and enhanced gold recovery relative to the baseline non-aged sample. The comparative recoveries were, however, at the expense of additional concentrate mass (higher mass pull). Benchmarking to data from Newcrest’s Cadia Mine suggests that column ageing may be excessively aggressive, overstating the recovery loss associated with ore oxidation.

10.4.7Alternative Flowsheet

A comparative cyclic flotation test was carried out comparing the LEAN flowsheet to a circuit simulating the use of a Jameson cell. The main intention of the study was to validate the use of the Jameson cell in a copper rougher cleaner cell application, as well as to demonstrate a potential variation in the copper cleaner circuit.

The difference between the LEAN circuit and the alternative proposed circuit was negligible in terms of recovery, which indicates that the installation of the Jameson cells could offer an alternative solution to the conventional cells proposed. The benefit is that a single Jameson cell could replace an entire bank of cleaner cells in the copper rougher cleaner application and is also able to attain higher concentrate grades than conventional cells in practice.

10.4.8Concentrate Solution Quality

Tests were completed to establish the degree to which the copper concentrate could leach in transit via the pipeline, and to establish water treatment requirements at the port filtration facility to be able to discharge the filtrate into a natural watercourse. Results indicated that the resulting water meets the discharge specification for most elements, with the potential exception of cobalt.

10.4.9Slurry Pumping and Hydraulic Testwork

Work programmes included material properties, settling characteristics, generation of rheograms, and examination of corrosion characteristics. These established the rheological characteristics of a typical concentrate and tailings stream derived from the process plant.

10.4.10Thickener Testwork

Thickener testwork indicated that the tailings sample was readily thickened and was able to achieve the required underflow density target (50% w/w) at peak flux rates of 1.75t/m2/h and a flocculant dosage of 20g/t. The concentrate sample was readily thickened and was able to achieve the required underflow density target (50%) at peak flux rates of 0.25m2/h and a flocculant dosage of 5–25g/t. Overflow clarity was good.

10.4.11Filtration Rates and Equipment

A sample of the final concentrate was supplied to Outotec in order to establish filtration rates for selection and sizing of filtration equipment. The results indicate that the concentrate produced is readily dewatered, and that final product moisture content <10% is achievable. Standard filtration equipment can be used.

10.4.12Recoveries and Concentrate Produced

Recovery forecasting used the metallurgical model derived for year-on-year estimation of metallurgical design parameters.

The variability testwork (LEAN flowsheet) indicated metal recoveries for the porphyry hosted mineralisation (Domain 30 and 33) of 94% for copper and 70% for gold to a 90% confidence level. The metal recoveries are forecast for metasedimentary hosted mineralisation at 90% for copper and 35% for gold, to a 90% confidence level.

Over the LOM, copper recoveries are predicted to average 94% and gold recoveries are forecast to average 68%. Concentrate grade average over the life-of-mine is projected to be 29% Cu and 15g/t Au.


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Recoveries predicted for the Golpu deposit were benchmarked against a number of operating mines. Forecast copper recoveries are comparable with other operations that have higher than average copper head grades. Gold recoveries predicted for the Golpu deposit are within the range of recoveries achieved in the operations

reviewed, and gold recovery shows no clear relationship to gold head grade.

The copper concentrate produced had a copper grade of 28%, and gold concentration of approximately 14g/t Au. As expected, the sulphur grades were high (>35%). The analysis also indicated that the concentrate did not exceed any of the typical concentration restrictions for sale.

The concentrate is predominantly composed of copper sulphides (85%), with chalcopyrite as the major mineral species. Minor and trace copper sulphide minerals present include bornite, covellite and enargite. Pyrite is the main sulphide gangue species, comprising 14.2%, and is therefore also the major gangue species present. The main non-sulphide gangue in the concentrate was silicates, which accounted for approximately 1% of the concentrate composition. The total non-sulphide gangue component accounted for 1.38% of the concentrate, which included traces of iron hydroxides, titanium minerals and apatite.

There are no known deleterious elements that would affect concentrate marketability.

10.5Wafi Test Results and Recovery Estimates

10.5.1Mineralogy

Oxide mineralisation in the A Zone and B Zone includes alunite, haematite, goethite, quartz, kaolinite, and micaceous minerals. Some remnant sulphide minerals appear to be present and are more prevalent in the transitional zone. Gold is associated with silicates, iron oxide and the remnant sulphides.

Within the fresh material, the primary gangue constituents are quartz, illite, kaolinitic minerals, chlorite, clinochore, and minor carbonates. The major sulphide mineral in all zones is pyrite with minor phases of arsenopyrite, marcasite intergrowths and lesser pyrrhotite. Gold was associated with arsenian pyrite, which takes two forms. One is arsenic-enriched rimming around larger, lower-grade pyrites, and the second is very fine particles of enriched arsenian pyrites.

No significant organic carbon or other potential gold preg-robbing material was identified.

10.5.2Cyanidation Testwork

The early test programmes concentrated on the A Zone. A variability programme looking at approximately 250 samples was completed, together with more detailed investigations focused on composites classified as oxide (OC1), transitional (TC1) and primary (FC1) zones. Direct cyanidation of oxide samples demonstrated they were non-refractory, yielding high gold recoveries in the mid 90% range with low cyanide and lime consumptions. Slight improvements were found if the oxide samples were ground finer. The transitional zone samples consisted of a combination of highly-oxidised mineralised material with partially weathered sulphide minerals. Direct cyanidation yielded gold recoveries in the 80% range, with reagent consumption similar to or slightly higher than those observed for oxide samples. For both oxide and transitional samples, based on a particle size P80 of 212μm, a leaching time of 18 hours at a pulp density of 50% was considered sufficient to provide optimum leaching conditions. Cyanidation of the primary sample indicated the mineralisation to be more refractory, yielding poor gold recoveries of 50–60%.

Subsequent testwork largely focused on samples from the Link Zone and adjacent zones, mainly the B Zone. These zones appeared to be significantly more refractory, providing direct gold extractions of <50% from B Zone and 20–30% from Link Zone. Diagnostic leaching suggested that the bulk of the gold in residue was associated with arsenic.

10.5.3Flotation Testwork

Flotation tests showed a strong similarity between the different zones from a flotation perspective and highlighted the importance of maximising arsenic recovery in order to improve gold recovery. Tests using controlled potential sulphidisation (“CPS”) were encouraging, potentially due to the tendency for arsenical minerals to be more readily oxidised than pure pyrite.


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One significant advantage of flotation was that in obtaining a concentrate for biooxidation testwork, manganese was depleted and reported to the tails. This allows for treatment of the concentrate without the added problem of removing manganese from process effluents. Significant potential problems with settling of the flotation tails were encountered, with settling being improved using lower pulp density pulps and a high flocculent dosage.

Detailed liberation characteristics and mineral associations for flotation concentrate and tails showed that the majority of pyrite was liberated in the flotation concentrate, whereas much of the pyrite still present in the tails was locked in binary and ternary particles containing quartz, mica, and feldspar. Gold-bearing arsenian pyrite grains were distributed in binary and ternary minerals in both flotation concentrates and tails. Liberating arsenian pyrite for flotation would require an ultra-fine grind. Arsenopyrite, although a minor phase, also contained “invisible” gold, and followed a similar trend to arsenian pyrite.

Flotation performance was a reflection of grinding conditions, as the mineral surfaces rapidly oxidised. Investigation of methods to mitigate this included CPS and the proprietary Newmont N2TEC technology that uses nitrogen flotation. These programmes suggested moderate success from flotation tailings cyanidation and additional work in these areas was recommended.

10.5.4Fine Grinding of Concentrate

Improvement in gold recoveries was slight when fine grinding was investigated and confirmed the refractory nature of the primary samples. Whilst conditions were not fully optimised, it was concluded that solid solution gold in sulphides would not be expected to be readily leached from concentrates following ultra-fine milling without some alteration of the gold-bearing sulphide minerals.

10.5.5Pre-Oxidation Processing

Pressure oxidation, bio-oxidation, and roasting were investigated as potential process options.

Overall programme results showed that oxidation of sulphide minerals was very effective in releasing gold for cyanidation. Only partial oxidation of around 50% of the sulphide was necessary to achieve maximum gold recovery, irrespective of the process used, and whether the feed was whole-ore or a flotation concentrate. This relationship applies over the suite of primary samples investigated. Diagnostic leaching confirmed this approach. In addition, nitric acid digests results indicated that to achieve maximum gold recovery, dissolution of around only half the arsenic in the samples was required. Hence, while there was a strong association between gold and arsenic, not all the arsenic had to be oxidised to obtain high gold recoveries.

Pressure oxidation tests were completed as batch tests. Generally high gold recoveries were obtained (low 90% range). Cyanide and lime consumptions were high, largely due to limited washing of POX residues. Flotation of the high-sulphur sulphur but relatively low gold recoveries. Whole-ore and concentrate roasting studies indicated that lower-temperature roasting was more favourable for gold extraction. Sulphur oxidation of 42.7–59.6% was required to achieve 88.9% gold recovery. Additional oxidation to 94.4% had no significant effect on gold extraction; however, on complete oxidation gold recovery was reduced by around 20%. Lime addition to the roast was found to fix some of the sulphur at the cost of 5–15% gold recovery. There appeared to be no benefit in washing calcine residues when considering both gold recovery and reagent consumptions. Cyanidation following oxidation was very effective with high extractions in short leach times.

Extensive testwork was conducted investigating bio-oxidation on both stirred tank and heap leaching approaches for whole-ore and flotation concentrates. The oxidation versus extraction profiles for stirred-tank tests showed that moderately high (80–90%) levels of extraction were achieved at 50–70% oxidation, with over 90% at ~70–75%. Initial oxidation kinetics were quite rapid but tended to tail off to become fairly slow to achieve >90% oxidation. Lime and cyanide consumptions were high, though not optimised.

Whole-ore column testwork to simulate heap bio-oxidation was conducted on - 9.5mm and -20mm crushed Link Zone material that had been agglomerated using sulphuric acid and bacteria inoculum. Sulphide oxidation ranging from 23–29% gave a maximum gold recovery of 74% for the 9.5mm column after 159 days. The best gold recovery was obtained from a small column using 9.5mm mineralised material, which achieved 52.8% sulphide oxidation and 85.5% gold recovery.


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The higher oxidation was attributed to the column being better aerated from a higher surface area to volume ratio compared with the other column leach tests. Better sulphide oxidation and gold recoveries were obtained for the finer crushed size - 9.5mm material than the -20mm material. Agglomerated ore-column test slump was higher than a target 10%, with most of the slumping taking place within the first 24 hours. This suggested that percolation problems and heap stability could be a problem in full-scale operations. Difficulties with dealing with oxidised product from various technologies also indicated that the effect of acidic oxidation kinetics on clays in the mineralisation could have a deleterious effect.

Tests using the proprietary GEOCOAT process, which involves the use of biooxidation in a heap configuration, gave a gold recovery of 91% from the concentrate at 63% sulphur oxidation during column tests. Partial bacteria oxidation of the sulphide concentrate yielded high gold recoveries. Further bacteria oxidation beyond a certain point had no further improvement in gold recovery. Cyanide and lime consumption per tonne of concentrate was very high at 9.2kg and 11.6kg respectively but were not optimised. There was less manganese in the bio-oxidising of the concentrate pregnant leach solution for neutralisation than observed in whole-ore treatment by a factor of ten. This was largely due to the majority of the manganese reporting to the flotation tails, together with the carbonate.

10.5.6Alkaline Leaching

The concept of oxidative caustic treatment as a method for dissolution of arsenic-rich minerals and enhancement of gold recovery was tested. Gold recovery increased with increased pH and temperature, and with a decrease in particle size. The best results for whole-ore samples were obtained at P80 of 38μm, pH of 13, 50°C and 64kg/t of caustic which yielded 79.4% gold recovery. For flotation concentrate at P80 of 14μm, pH of 12, and 60°C gave a gold recovery of 91% with an overall recovery of 77.6%.

10.5.7Comminution Tests

Comminution testing showed samples to have low abrasion characteristics and that grinding media requirements should be low. The abrasion index values ranged from 0.18 in transition material to 0.10 in fresh rock. However, the tests were not conducted on the standard size fractions for this type of testwork, and therefore should be considered as indicative tests only.

Mineralisation was found to become very plastic at high moistures (12%). The primary composite was found to be very compressive and cohesive with steep flow functions.

Bond ball mill work indices were conducted on samples of each material type based on a target grind size of P80 75μm. Values averaged 12.3kWh/t for oxide material, 13.3kWh/t for transition material, and 15kWh/t for fresh material. All results are considered to be indicative of moderate hardness. Mineralisation hardness decreases with increased weathering.

10.5.8Recoveries and Doré Produced

The primary mineralisation types within the A and B, and Link Zones have similar characteristics in that the predominant host of gold (71–74% w/w Au) is arsenian pyrite, and to a minor extent arsenopyrite. Cyanide-recoverable gold is poor, ranging from 12–60%. There is variability between the mineralised zones with the A Zone generally more amenable to direct cyanidation than either the B Zone or Link Zone. A positive correlation exists between arsenic and gold concentration, with the Link Zone having a higher arsenic content than mineralisation in the A and B Zones.

Metallurgical recoveries for use in Mineral Resource estimation are assumed at 91% gold recovery for non-refractory gold mineralisation and minimum of 47% recovery for refractory gold mineralisation.

There are no known deleterious elements that would affect doré marketability.


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10.6Commentary on Mineral Processing and Metallurgical Testing

The QP notes:

•the testwork completed is adequate to ensure an appropriate representation of metallurgical characterisation and the derivation of corresponding metallurgical recovery factors;

•a total of 13 geometallurgical domains were assigned to represent an improved geological interpretation of the Golpu deposit and increase the understanding of the copper and gold recoveries in the deposit;

•gold and copper recoveries, on average over the Golpu LOM, are anticipated to be 68% and 95% respectively;

•concentrate average grade over the Golpu LOM is forecast at 29% Cu and 15 g/t Au;

•final concentrate derived from the Golpu testwork indicated that the levels of deleterious elements in concentrate did not exceed any of the typical concentration restrictions for sale;

•testwork on the Wafi deposit indicates that much of the gold mineralisation is refractory, and that there is variability in metallurgical response between the mineralised zones;

•metallurgical recoveries for use in Mineral Resource estimation for the Wafi deposit are assumed at 91% gold recovery for non-refractory gold mineralisation and minimum of 47% recovery for refractory gold mineralisation; and

•no metallurgical testwork was conducted at Nambonga, and Golpu is used as an analogue deposit. Metallurgical recoveries for use in Mineral Resource estimation are assumed at 85% for gold.


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11Mineral Resource Estimate

Section 229.601(b)(96) (11) (i-vii)

Closeout dates for the databases supporting the estimates are:

•Golpu: database close-out date of 26 March 2014;

•Wafi: database close-out date of 23 October 2018; and

•Nambonga: database close-out date of 23 October 2018.

11.1Global Statistics

The multi element global statistics for the Wafi Golpu Project is presented in Table 11-1.

Table 11-1: Global Multi Element Grade Statistics


Parameter	Au (g/t)	Cu (%)	As (g/t)	S (%)	Ag (g/t)	Mo (ppm)	Fe (%)
Count	202,432	188,879	184,726	160,634	187,307	184,958	171,631
Average	0.488	0.243	136.700	5.119	1.572	34.884	6.539
Standard Deviation	1.609	0.616	443.200	3.712	7.981	99.584	2.804
Minimum	0.0020	0.0005	0.5000	0.0050	0.0500	0.0500	0.0002
Maximum	281.00	15.30	21,603.00	49.00	866.00	8,910.00	74.61
Total Length Assayed (m)	277,279
Average Length Assayed (m)	1.37

11.2Golpu Mineral Resource Estimation Methods

11.2.1Geological Database

All data were extracted from the DataShed database DS_WGJV_EXP_DC on 25 March 2014 as *.csv extractions. The majority of the raw assay file contains 1m or 2m assay intervals. Before constraining by flagging with the Golpu model limits, there were 202,432 assay records in the raw database with an average length of 1.507m. Within the Golpu block model volume, there are 110,071 assay intervals. Not all intervals are assayed and not all assayed intervals are assayed for all elements. Wireframe coding was applied to the validated collar, survey and assay files after they were imported into Vulcan software. The multi element statistics for the Golpu model limits are presented in Table 11-2.

Table 11-2: Multi Element Statistics for the Golpu Model Limits


Parameter	Au (g/t)	Cu (%)	As (g/t)	S (%)	Ag (g/t)	Mo (ppm)	Fe (%)
Count	110,071	106,640	106,432	93,718	106,471	106,204	101,556
Average	0.396	0.410	112.800	5.662	1.318	54.025	7.131
Standard Deviation	0.915	0.778	345.300	3.983	4.458	124.370	2.936
Minimum	0.0020	0.0005	0.5000	0.0050	0.0500	0.0500	0.0002
Maximum	97.10	15.30	11,500.00	49.00	610.00	8,910.00	61.10
Total Length Assayed (m)	162,603
Average Length Assayed (m)	1.48

11.2.2Geological Interpretation and Modelling Approach

Alteration associated with the porphyry complex was constrained within an actinolite alteration shell which defined the limit of porphyry mineralisation. Alteration associated with the high sulphidation overprint includes advanced argillic and argillic alteration assemblages.


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Oxidation surfaces were modelled at the base of complete oxidation (BOCO) and top of fresh rock (TOFR).

All interpreted faults were wireframed but were not necessarily used in the estimation model.

Sulphide distribution shells compiled from logging records include trace chalcopyrite, chalcopyrite greater than 1%, chalcopyrite greater than 3%, bornite and the covellite bearing volume formed within the high-sulphidation epithermal influence volume.

Wireframes based on geological interpretations were used to code raw assay files, composite files and the block model.

All combinations of lithology, alteration, sulphide distribution and faulting were assessed for use as estimation domains.

11.2.3Exploratory Data Analysis

Geostatistical analysis was conducted to review individual elements and correlations between elements.

Contact analyses were completed on all major lithologies, alterations and fault boundaries. It was concluded that the only porphyry with sharp grade contacts is the high-grade Hornblende (Livana) Porphyry.

Since statistics of fault displaced areas can be similar, lithology and alteration domains were separately modelled above and below major faults where clear displacement can be demonstrated, regardless of the contact analysis results.

Draft domains were compiled for each element to be estimated, based on observed grade distributions, boundary analyses and known geological relationships. After testing, these domains were accepted as the final estimation domains. Drill hole files were flagged in Vulcan software with assigned lithology, alteration, fault interval, sulphide species or molybdenum area, before compositing.

11.2.4Composites

A composite database was compiled for each element from the assay table database on 10m composite lengths. The resulting composites are split at domain contacts and at absent assay intervals.

11.2.5Grade Capping / Outlier Restrictions

Top-cuts were determined by reviewing the histograms and the percentage of metal contributed from the highest-grade samples (both raw and de-clustered) in each estimation domain. The applied top-cut block model domain estimates were then compared to each of a discrete Gaussian model and nearest neighbour (NN) model global average grades for validation.

All samples from the Golpu–Wafi region were flagged by estimation domain, including samples outside the Golpu estimation volume (these samples may still assist in the estimation of grade within the model). For those domains that extend beyond the Golpu Model volume, top-cuts were also reviewed relative to the Golpu model volume rather than the entire flagged sample population. For example, the advanced argillic alteration domain includes very high gold grades from the Wafi deposit; in this area, top-cuts representative of the Golpu volume local informing samples were applied.

Metal per composite assessments were completed on all gold and copper domains. Applied top-cut ranges included:

•copper: 0.5–4.2% Cu;

•gold: 0.5–16g/t Au;

•sulphur: 6.8–15% S;

•silver: 2.5–30g/t Ag;

•molybdenum: 50–800ppm Mo;

•iron: 9–25% Fe; and

•arsenic: none.


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A restricted high yield search was applied to copper and gold domains to manage maximum metal and ensure compatibility with evaluation models. This applies especially where a domain includes identified bi-modal populations and the high grade sub-population cannot be domained separately or top-cut out. Rather than imposing a top-cut on the continuous sub-population, high-grade samples were restricted for use at distances typically defined by the short range of the variogram only.

11.2.6Density (Specific Gravity) Assignment

Density was directly assigned to the block model by density domains (Section 8.2).

11.2.7Variography

The majority of the experimental variograms were generated from the domain flagged, 10m composites in Supervisor software. Argillic zones were compiled by QG Consultants in Isatis software.

Variograms were modelled for all domains, for all estimated elements. Some domains contain limited samples, and in this case variograms were generated that were similar in structure and range to the closest matching domain. Most well informed domains generated well structured, low nugget variograms in both pairwise and raw models.

All porphyry-related domains were modelled with an orientation defined by the elongation of the porphyry system (strike/elongation to 345° local grid, 70° west dip and 10° northern plunge). While this orientation is typically clearly defined for well-informed domains, in poorly-informed domains variogram maps can show a strong bias to the predominant east–west drilling direction. However, in all cases, the porphyry direction was imposed on the variogram map and resulting experimental variograms modelled in this orientation only. All argillic alteration, oxidation and cover sequence domains have shallow dips to grid east, and these were used in the variogram maps and models.

11.2.8Estimation / Interpolation Methods

Quantitative kriging neighbourhood analysis (“QKNA”) assessments were focused on the maximum number of samples and search distances to be used in the block estimate that optimised the sum of negative weights generated, followed by the quality parameters e.g., average distance of informing samples (either Cartesian or anisotropic), slope of regression and kriging efficiency. As pairwise variograms were used in the grade estimate and hence the domain mean and variance were not used directly, the kriging-derived parameters were relative not absolute.

Based on the review of these QKNA parameters and the visual examination of the resulting grade estimation, the final search parameters used in the model were compiled. All second passes have the same search volume as the primary estimation but due to the generation of negative grades from localised high negative kriging weights, the maximum number of samples is reduced from that used in the first pass. Total number of blocks estimated by the second pass estimates is always very low.

The grade model was estimated with ordinary kriging (“OK”) using pairwise variograms on 10m composites for seven elements: gold, copper, silver, molybdenum, sulphur, arsenic, and iron. The estimation uses the domain composites as informing samples, pairwise variogram models for composite weighting and ellipsoidal search neighbourhoods for composite selection. The elements are estimated into a block model with 40m x 40m x 40m parent cells with 10m resolution on domain margins; all sub-cells are assigned the parent grade. The parent block size reflects the estimation precision available from the drill hole spacing and the planned bulk underground mining methodology (block caving).

Estimation of each element is based on an underlying diffusion model where, in general, grade trends from lower to higher values and return in a relatively continuous relationship. Domainal drift is clearly present for the porphyry system, so pairwise variograms were used for modelling grade estimates.


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11.2.9Model Validation

The model was validated by comparison with informing composite de-clustered statistics, alternative modelling methods (“NN”), inverse distance weighting to the second power (“ID2”), raw variogram OK, discrete Gaussian models and conditional simulation models and graphical comparisons (swath plots and grade–tonnage curves).

Where the estimated model domain grade is high compared to de-clustered grades and alternative method models, the percentage of metal dependent on the top 1% and 5% of the sample distribution per domain was again reviewed in detail for applied top-cuts and high yield management and if required, re-set.

Swath plots show that the Mineral Resource estimate fairly represents the composite grades. Review of all domains using discrete Gaussian models showed that the Mineral Resource model was within acceptable limits given the composite sample size and drill hole spacing for each of the estimation domains.

Conditional simulations were compiled using two separate methods: sequential Gaussian conditional simulation (“SGCS”) implemented in Vulcan into points/nodes and direct block simulation (“DBSim”) using Turning Bands into 10m blocks in Isatis. Both methods estimate similar mean grades for the gold and copper domains; however, there are substantial variations in the estimated range of simulation cases. The DBSim results are considered more reliable because of both the inherent methodology and the change of support into blocks rather than node estimation. Both methods are similar to the mean grade by domain estimated in the Mineral Resource model.

11.2.10Mineral Resource Evaluation

The Mineral Resource estimate assumes a bulk mining underground extraction method such as block caving and metallurgical recovery for copper and gold by sulphide flotation.

The Mineral Resource estimate is reported based on mass mining by block cave with no internal selectivity. The 40m x 40m x 40m parent block size was an appropriate cell size for the planned bulk mining method. The shell did not represent a conceptual block cave footprint and associated draw column height of draw. However, it did represent the economic material potentially recoverable from a major block cave. The primary model was passed through a net smelter return (NSR) calculation sheet and a breakeven value shell was generated at margin 0 to remove isolated projections and incorporate a small volume of internal waste.

The metallurgical recovery model was based on copper flotation with copper and gold recovered to concentrate. Extensive testwork was completed to establish algorithms developed from variability modelling. Metallurgical domains were based on both the host rock type and alteration style. Each metallurgical domain was assigned a recovery algorithm, typically subdivided based on Cu:S and Au:S ratios.

The NSR estimation was required only to establish the Mineral Resource reporting breakeven value shell. Mining and milling costs were based on a block caving mining method and milling through a copper concentrator. The breakeven value shell spatially constraining the grade model includes internal waste, and excluded isolated above-cut-off blocks, which reflected the potential bulk mining scenario. There was no revenue assumed from silver or molybdenum in the NSR estimate; however, these elements were estimated as part of the Mineral Resource estimation process as there may be potential for these metals to be recovered with minor circuit modifications or concentrate contract negotiations, and therefore included in future Mineral Resource estimates.

Key value inputs included:

•gold price: USD1,300/oz;

•copper price: USD3.40/lb;

•molybdenum and silver: Not valued;

•mining cost: USD8.37/t mined;

•processing cost: USD9.75/t processed;

•general and administrative (G&A) costs: USD4.17/t/processed;

•copper concentrate treatment charge: USD100/dmt of concentrate;

transport cost: USD33.50/wet tonne of concentrate; and

copper refining charges: USD0.10/lb of recovered copper.


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11.3Wafi Mineral Resource Estimation Methods

11.3.1Geological Database

All data were extracted from the DataShed database on 23 October, 2018 as *.csv extractions.

Where a below detection level assay value was reported, the following values were applied, based on half of the lowest valid reported assay result:

•gold: 0.005ppm Au;

•copper: 0.005% Cu;

•silver: 0.05ppm Ag;

•molybdenum: 0.1ppm Mo;

•arsenic: 0.1ppm As;

•sulphur: 0.1% S; and

•iron: 0.1% Fe.

11.3.2Geological Interpretation and Modelling Approach

The May 2019 geology model for the Wafi deposit included wireframes for lithology, alteration, oxidation, and structures.

All lithological, porphyry-related alteration and fault wireframes were constructed in Leapfrog Geo 4.3 software using implicit modelling from primary logging codes extracted from the DataShed database and modified based on interpretative correlations of logged intervals.

Lithologies including dacite, diatreme, the Wafi Conglomerate, Babwaf Conglomerate, Owen Stanley Metamorphics sedimentary host rock, and recent cover were constructed and flagged into the volume model where intersected to create a lithology model. The wireframes used the following criteria:

•Link Zone domains: implicitly modelled shells based on sectional interpretations of an implicitly modelled 300 ppm As shell, modified to capture >1g/t Au intercepts that sit outside the arsenic shell;

•Western Zone: a sectional interpretation of an implicitly-modelled 300ppm As shell modified to encompass high-grade gold values within the area;

•Bridge zone: implicitly modelled and based on the 1.0g/t Au grade shell;

•the Gold cap: implicitly modelled and based on the 1.0g/t Au grade shell in the oxide and transitional zones only; and

•Northern zone: a simple 1.0g/t Au grade shell around the drilling in the northern, area based on four drill holes.

A 300ppm As shell was selected as it closely correlates to the argillic alteration domain and contains a significant proportion of the >1g/t Au intercepts across the deposit. The 300ppm As shell was considered to be less deterministic than selecting an arbitrary gold grade cut-off. The domains were expanded where required to ensure the capture of high-grade gold material outside of the 300ppm As shell.

Fault wireframes include the major thrust faults which were interpreted to displace mineralisation. The most significant thrust fault in the area is the Buvu Fault which created the floor to the Wafi–Golpu system. All interpreted faults were wireframed but may not necessarily be used in the estimation model.


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Weathering characteristics were defined by two surfaces: TOFR and BOCO. Material between these two surfaces included partly oxidised material and was classed as transitional.

The mineralised halo domain comprises generally lower-grade high sulphidation vein mineralisation hosted in metasediments and diatreme defined by a low grade 0.2g/t Au wireframe. For modelling purposes, the deposit was originally defined using 13 mineralised domains based on mineralisation, alteration and lithological characteristics within nominal 0.5g/t Au and 0.2g/t Au wireframes.

11.3.3Exploratory Data Analysis

Geostatistical analysis was conducted to review individual elements and correlations between elements. This analysis was conducted using Isatis 2018.2. Contact analysis was completed using Micromine software, with the following results:

•the contact between most of the internal higher-grade lodes and the low-grade halo is gradational. A soft boundary was used;

•the contact between the low-grade halo and the host is generally hard. A hard boundary was imposed;

•the contact between the advanced argillic and the argillic domains has little to no impact on grade. The contact was not used in the estimation domains; and

•the contact between the oxide–transition and the fresh–transition materials has no impact on grade. The contacts were not used in the estimation domains.

Draft domains were compiled based on observed geology, boundary analyses, and known geological relationships. After testing, these domains were accepted as the final estimation domains for gold, silver and copper. Domains for arsenic, molybdenum, iron and sulphur were based on the alteration domains of argillic (hard boundary on faults) and advanced argillic (soft boundaries).

11.3.4Composites

The majority of the raw assay file contains 1m or 2m assay intervals. Within the Wafi block model volume, there are 213,684 assay records in the raw database with an average length of 1.5m. Not all intervals are assayed, and not all assayed intervals are assayed for all elements.

A composite database was compiled based on gold as the primary element from the raw assay database on 4 m composite lengths. The composites were split at the domain contacts and at absent assay intervals for each element.

Drill hole files were flagged with assigned lithology, alteration, fault interval, sulphide species or domain in Vulcan software as part of the compositing process.

11.3.5Grade Capping / Outlier Restrictions

Top-cuts were determined by review of statistical parameters for gold, followed by silver and copper. Decomposition analysis and percentage of metal contributed from the highest-grade samples (both raw and declustered) in all estimation domains were assessed. The top-cut for the high sulphidation metals (arsenic, sulphur, molybdenum and iron) were then restricted to the 99th percentile after the first runs indicated the estimate was returning too much metal.

Applied top-cut ranges included:

•copper: 0.11–7% Cu;

•gold: 3.2–20g/t Au;

•sulphur: 11–20% S;

•silver: 5–120g/t Ag;

•molybdenum: 150–450ppm Mo

•iron: 10–20% Fe; and

arsenic: 900–3,600ppm.


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11.3.6Density (Specific Gravity) Assignment

Density is directly assigned to the block model by rock type and oxidation domains based on averages based on the Golpu deposit. Although significant high-quality density data exist for Golpu, Wafi does not have the same coverage, and thus no estimation of density into the model was conducted.

11.3.7Variography

The clustering of the gold domains was assessed in Isatis 2018.2 software, and the analysis indicated the data were moderately clustered, specifically in and around the Link zones and Gold Cap. Declustering was done based on individual domains and a cell size of 100m x 100m x 40m for the entire dataset. Gaussian Transform was completed on the data on a domain by domain basis to enable the development of Gaussian Variograms for estimation purposes. The Gaussian Transform was completed in Isatis using point anamorphosis based on 100 polynomials and on the declustering.

Declustering was conducted based on arsenic in fault domains within the high sulphidation alteration. Arsenic was selected as the main element as it has the strongest correlation with the high sulphidation overprint.

All experimental variograms are generated from the domains flagged into the 4m composite file in Isatis 2018 software. In all cases Gaussian Variograms were generated and then back transformed based on the Isatis Gaussian anamorphosis and Hermitian polynomial transformations.

All domains are assessed with a geological orientation defined as determined using maximum intensity projection of the grade data in Leapfrog Geo and the average dip and plunge of the stratigraphy (dipping ~51° towards 133° and 97° southeasterly plunge). While this orientation is defined for well-informed domains, this is not so well defined in poorly informed domains. However, in all cases, the overall trend was impacted by the folded stratigraphy which complicated the interpretation process. A fixed overall trend was selected for all variography.

Given the similar orientations of the data in all the domains (with 15° of azimuth and 10° of dip), the search criteria were maintained across the domains. Variograms were modelled for all domains for all estimated elements. The minor domains contain limited samples and could not form coherent variograms. In these cases, the estimate used the variograms generated for the major surrounding domains.

11.3.8Estimation / Interpolation Methods

Estimation parameters were based on sample support and not on variogram ranges. The first pass required a search designed to inform the model with the maximum number of samples. The second pass expanded the search (doubled the distance) and reduced the minimum number of samples required to form an estimate. The final third pass maintained the second pass search distance but reduced the number of samples required. Unestimated blocks were left empty, assuming the distance was too great for a valid estimation.

The oxide horizon for arsenic was estimated separately as the oxidation process removes arsenic from the system and the high arsenic grades seen in the fresher units were not replicated in drilling within the oxidised horizon.

The grade model was estimated using OK on 4m composites for seven elements, gold, copper, silver, molybdenum, sulphur, arsenic, and iron. The estimation used the domain composites as informing samples, back-transformed Gaussian variogram models for composite weighting and ellipsoidal search neighbourhoods for composite selection. The elements were estimated into a block model with 20m x 20m x 10m parent cells with 10m resolution on domain margins.

All sub-cells were assigned the parent grade. The parent block size reflects the estimation precision available from the drill hole spacing and the assumed bulk open pit mining methodology.


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11.3.9Model Validation

The model was validated using visual inspection, comparison with informing composite declustered statistics, alternative modelling methods (e.g., ID2), and graphical comparisons (swath plots and grade–tonnage curves).

Visual inspection indicated that there were some areas filled during the third pass where the grade shows a level of smearing. This material does not form part of the current resource estimate and remains unclassified.

An ID2 model was estimated using the top-cut composites and the same search parameters used in the final OK model estimate. Two estimates were run, one with the exact same parameters as the OK estimate and a second where changes were implemented, such that the minimum and maximum sample numbers were reduced from the 16–24 samples in the OK estimate to 8–16 samples. This comparison was run on all domains. The results show the ID estimate contains more localised grade in the middle grade bins (0.6–1.2g/t Au) compared to the kriged estimate; however, the overall metal balance was similar.

Scatter plots of the OK estimate were compared against the ID2 estimate, (same sample count) to check the distribution of estimated grades. The ID2 estimate generally returns a slightly higher grade than the OK estimate which is expected given the assumption of linear grade relationships inherent in ID2 estimation. This generally results in fewer tonnes at a higher grade than returned from an OK estimate.

However, the ID2 estimates generally return an estimate very similar to the OK estimate. The scatter plot for domain 803 shows a significant data anomaly that consists of a spread of high blocks up against the Reid Fault. These blocks are all informed by an end-of-drill-hole high-grade intersection that happens to be the closest drill hole to these blocks; however, the blocks are not currently classified and therefore are not included in the resource estimate.

Swath plots were compiled by domain in Access to compare the declustered composite assays with the final model estimate sliced by easting, northing and elevation. In the more poorly informed domains the estimated grades tend to be strongly smoothed; increased sample density generates a much better estimate.

11.3.10Mineral Resource Evaluation

An internal mining concept study was undertaken by the WGJV in 2013. Information from this study was used to support the assumptions used in assessing reasonable prospects of eventual economic extraction, factored and updated where applicable. The Mineral Resource estimate is reported assuming an open pit mining method with little internal selectivity. The 20m x 20m x 10m parent block size is an applicable cell size for the planned mining method. The process method is assumed to be a combination of a carbon-in-pulp (CIP) and carbon-in-leach (CIL) operation, with a flotation sulphide recovery mill process.

Mineral Resources were constrained within a conceptual pit shell that used the following input parameters:

•commodity price: USD1,400/oz Au;

•mining cost: USD5.40/t mined;

•process cost: USD17.30/t processed (includes G&A costs);

•metallurgical recovery: 91% gold recovery for non-refractory gold mineralisation (“NRG”) and minimum of 47% recovery for refractory gold mineralisation (“RG”). The QP notes that RG recoveries could potentially be improved via some form of oxidation process; and

•pit slope angles: overall approximate slope angles ranging from 33° in oxidised material to 65° in fresh rock.

Two cut-off grades were used to report the Wafi Mineral Resource, which are dependent on the metallurgical recovery estimated from testwork and anticipated processing cost differences between non-refractory gold recovered by typical CIP/CIL processing and refractory gold that will have lower overall recoveries or will require pre-oxidation treatment. Cyanide solubility of gold, oxidation state and geochemistry were modelled to estimate the non-refractory–refractory gold distribution within the Wafi model.


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Non-refractory gold is reported at a cut-off grade of 0.4g/t Au and refractory gold is reported at a cut-off grade of 0.9g/t Au. These cut-off grades are based on USD1,400/oz Au price with modelled recovery and processing, plus realisation costs factored from the 2011–2013 concept studies.

The Wafi Mineral Resource also includes oxide material from the Golpu deposit accessible within the Wafi pit shell and which is excluded from the Golpu Mineral Resource estimate.

11.4Nambonga Mineral Resource Estimation Methods

11.4.1Geological Database

All data were extracted from the DataShed database on 23 October 2018 as *.csv extractions.

Where below detection level assay values were reported, the following values were applied based on half of the lowest valid reported assay result:

•gold: 0.005ppm Au;

•copper: 0.005% Cu;

•silver: 0.05ppm Ag;

•molybdenum: 0.1ppm Mo;

•arsenic: 0.1ppm As;

•sulphur: 0.1% S; and

•iron: 0.1% Fe.

11.4.2Geological Interpretation and Modelling Approach

The geology model for the Nambonga deposit includes lithology, alteration, oxidation, and structures wireframes.

All lithological, porphyry-related alteration and fault wireframes were constructed in Leapfrog using implicit modelling from primary logging codes extracted from the DataShed database and modified based on interpretative correlations of logged intervals.

Two porphyries were modelled, the Nambonga Porphyry (the main mineralised diorite porphyry) and the Late Porphyry (the late-stage, barren inter-mineral porphyry that cuts across the main mineralised porphyry stock). Other lithologies including dacite, diatreme, Wafi Conglomerate, Babwaf Conglomerate, Owen Stanley Metamorphics sedimentary host and recent cover were constructed and flagged into the volume model where intersected.

Alteration associated with the Nambonga porphyry comprises minor high sulphidation overprint and includes argillic alteration assemblages.

A BOCO surface was modelled at the first occurrence of fresh or partially weathered material from drill core. A TOFR surface was modelled at the point where there was no further partial, or fracture oxidation recorded from drill hole logs.

Fault wireframes include the major thrust faults which are interpreted to displace mineralisation. The most significant thrust fault is the Buvu Fault which creates the floor to the Nambonga system (Figure 6-6).

The Upper Buvu Fault is interpreted to cut through the Nambonga porphyry system where minor reactivation of the paleo-Ductile Upper Buvu has caused a top to the northwest offset in the Nambonga Porphyry.

A third significant structure is the Nambonga Fault, a subvertical north-striking breccia zone that contains significant mineralisation within it. All interpreted faults were wireframed but were not necessarily used in the estimation model.

Wireframes based on geological interpretations were used to code raw assay files, composite files and the block model. All combinations of lithology, alteration, sulphide distribution and faulting were assessed for use as estimation domains. Six estimation domains were established.


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11.4.3Exploratory Data Analysis

Geostatistical analysis was conducted to review individual elements and correlations between elements. Contact analyses were completed on all major lithologies; however, fault boundaries were considered hard. Review indicated:

•the contact between the stockwork and the host is soft; however, the grades in the stockwork progressively decrease to background values prior to the edge of the domain. The boundary was treated as hard;

•the contact between the mineralised porphyry and the outer stockwork is gradational. A soft boundary was applied; and

•the contact between the mineralised porphyry and the barren post-mineral porphyry is abrupt. The boundary was treated as hard.

11.4.4Composites

The majority of the raw assay file contains 1m or 2m assay intervals. Within the Nambonga block model volume, there are 17,313 assay records in the raw database with average length of 1.08m length. Not all intervals are assayed and not all assayed intervals are assayed for all elements.

Assays were composited to 4 m intervals, based on gold as the primary element. The composites were split at the domain contacts and at absent assay intervals for each element.

11.4.5Grade Capping / Outlier Restrictions

Top-cuts were determined by review of statistical parameters, graphed data, decomposition analysis and percentage of metal contributed from the highest-grade samples (both raw and declustered) in a combined estimation domain comprising domains 2123 and 2125. The applied domained top-cut statistics were then compared to the average un-cut grades for validation.

Top-cuts were not individually determined for the minor domains as these are outside the classified area, and in most cases, either the CV variables indicated the domain did not require top-cuts or the lack of data meant any top-cut was not going to be significant. Some spot checks of the minor domains were assessed independently, especially for copper and gold, but no material issues were identified from the checks. Applied top-cuts included:

•copper: 0.7% Cu;

•gold: 2g/t Au;

•sulphur: 10% S;

•silver: 18g/t Ag;

•molybdenum: 50ppm Mo;

•iron: 12% Fe; and

•arsenic: 500ppm As.

11.4.6Density (Specific Gravity) Assignment

Average bulk densities were assigned to the Nambonga model based on 277 determinations from Nambonga drill core, of which 132 were in porphyry and massive sulphide domains (Section 8.2). The hanging wall porphyry was assigned the same density as the footwall porphyry.


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11.4.7Variography

All experimental variograms are generated from the domains flagged into the 4m composite file in Isatis 2018 software. In all cases Gaussian Variograms were generated and then back-transformed based on the Isatis Gaussian anamorphosis and Hermite polynomial transformations.

Variograms were modelled for the combined 2123/2125 domain for all estimated elements. The minor domains contain limited samples and could not form a variogram, in this case the estimate used the variograms generated on the major domains data.

All domains were modelled with a geological orientation defined by the elongation of the porphyry system as determined using maximum intensity projection of the grade data and the average dip and plunge of the system (strike/elongation to 210° local grid, 55° degrees west dip and 93° northern plunge). While this orientation is typically clearly defined for well-informed domains, in poorly-informed domains variogram maps can show a strong bias to the predominant east–west drilling direction. However, in all cases, the porphyry direction was imposed on the variogram map and resulting experimental variograms modelled in this orientation only.

11.4.8Estimation / Interpolation Methods

Grades were estimated using OK. After the first runs were done at a 4m composite, the initial results indicated a lack of variability in the estimate. The estimate was rerun using 2m composites.

All of the second passes were a simple doubling of search volume as the primary estimation, but all other parameters were maintained. The total number of blocks estimated by the second pass estimates was very low.

The grade model is estimated using back-transformed gaussian variograms on 4m composites for seven elements, gold, copper, silver, molybdenum, sulphur, arsenic, and iron. The estimation uses the domain composites as informing samples, back transformed Gaussian variogram models for composite weighting, and ellipsoidal search neighbourhoods for composite selection.

The elements are estimated into a block model with 40m x 40m x 40m parent cells and 10 m resolution on domain margins. All sub cells were assigned the parent grade. The parent block size reflects the estimation precision available from the drill hole spacing and an assumed bulk underground sub-level caving/block caving mining methodology.

The estimation of each element is based on an underlying diffusion model, where, in general, grade trends from lower to higher values and return in a relatively continuous relationship. Domainal drift is clearly present for the porphyry system.

11.4.9Model Validation

The model was validated using visual inspection, comparison with informing composite declustered, use of an alternative ID2 interpolation method, and graphical comparisons (swath plots and grade–tonnage curves).

An ID2 model was estimated using the top-cut composites and the same search parameters used in the final OK model estimate. Two changes were implemented, the minimum and maximum numbers of samples were reduced from the 16–28 used in the OK estimate to 8–16, and the declustered weight used in the statistical analysis was used to weight the sample grades prior to estimation.

Swath plots were compiled by domain using Micromine software to compare the declustered composite assays with the final model and the block model estimate by slice by easting, northing and elevation.

No material concerns were noted with the block model and estimate as a result of the validation steps.

11.4.10Mineral Resource Evaluation

The estimate assumes that a mass mining method (block cave or sub-level cave) with no internal selectivity would be used. The 40m x 40m x 40m parent block size is considered to be an applicable cell size for the presumed bulk mining method.


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The Mineral Resource for the Nambonga deposit is reported using an assumed 0.50g/t Au cut-off grade. This cut-off grade is based on a Golpu deposit analogue, assumes an overall mining, processing, and G&A operating cost estimate of about USD15.50/t, a gold price of USD1,300/oz, and a metallurgical recovery of 85% for gold. This equates to a cut-off grade of approximately 0.46g/t Au, based on gold only. Conceptual costs associated with copper and silver recovery were approximated as equivalent to 0.04g/t Au. The total cut-off grade for reporting purposes was therefore 0.5g/t Au.

11.5Mineral Resource Classification and Uncertainties

The Mineral Resource classification is discussed with respect to each deposit in the section to follow, along with their specific uncertainties.

Areas of uncertainty that may materially impact the Mineral Resource estimates for all deposits include changes to the following:

•long-term gold and copper price assumptions;

•local interpretations of mineralisation geometry and continuity of mineralised zones;

•geological shape and continuity assumptions;

•metallurgical recovery assumptions;

•operating cut-off assumptions for assumed block caving operations (Golpu and Nambonga);

•input assumptions used to derive the conceptual underground outlines used to constrain the Golpu and Nambonga estimates;

•input assumptions used to derive the conceptual pit shell used to constrain the Wafi estimate;

•NSR values used to constrain the Golpu estimate;

•cut-off grades used to constrain the Wafi and Nambonga estimates;

•variations in geotechnical, hydrogeological, and mining assumptions; and

•environmental, permitting and social license assumptions.

11.5.1Golpu

The Mineral Resource is classified based on an evaluation of factors including data spacing and distribution, geological confidence as a function of continuity and complexity of geological features and estimation quality parameters (for example, average distance to informing samples for block estimation). The location and classification of the Mineral Resources is shown in Figure 11-1.

No Measured Mineral Resources were estimated.

An Indicated Mineral Resource, where the geological framework can be modelled with confidence and mineralisation continuity can be demonstrated, is classified from below the copper-enrichment zone to either the 4,100mRL WGL or above an interpreted fault (DLT) approximately 1,400m below surface.

Below this fault and above 3,780mRL WGL, drill hole spacing decreased and geological and grade continuity is less reliable. This area is classified as an Inferred Mineral Resource.


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			Technical Report Summary for Walfi-Golpu, Morobe Province, Papua New Guinea


Figure 11-1: Location and Classification of Mineral Resources
Source: WGJV, 2018


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The uncertainties specifically associated with the Golpu estimate include the following:

•a direct consequence of using the Livana Porphyry as an estimation domain with hard boundaries is that any change in the Livana Porphyry interpreted contact results in a direct change in the tonnage of the estimated highest-grade material. Above the Reid Fault, the Livana Porphyry is currently modelled as multiple dykes with elongation to the northwest, but which coalesce in some locations into vertical finger porphyries. Recognition of the multiple thrust slices above the Reid Fault further restricted the vertical extrapolation of the porphyry. However, the realisation that the porphyry shape immediately above a thrust surface should be similar to the shape below, albeit offset, enabled the creation of a single configuration even when there is limited drilling within the thrust-bounded block itself. There are also some remnant areas where the Livana Porphyry contact position remains poorly constrained, for example the eastern contact of Livana Porphyry above Reid Fault;

•above the Reid Fault, the apparent complexity of the Livana Porphyry shapes requires closer-spaced drilling to resolve than is required for the large, apparently coherent, Livana Porphyry below the Reid Fault. While drill spacing increases with depth, the apparent simplicity of the Livana Porphyry below the Reid Fault may permit wider drill coverage to define the high-grade domain contact compared to the complex configuration above the Reid Fault. However, below the DLT Fault, the Livana Porphyry appears narrower and more elongated than below the Reid Fault. Drill spacing is variable and includes up to 200m x 200m gaps with limited contacts defined. The limited information below the DLT Fault is reflected in the Inferred Mineral Resource classification and additional drilling is required to refine the geological interpretation; and

•while there is confidence in the position of the primary structures, particularly the major thrust faults with abrupt changes in grade, additional structures were recorded in the logging that have not been modelled. Some apparently significant geotechnical structures (e.g., Camp Fault) were modelled; however, these faults have not been applied as grade boundaries. To date, all faults were identified based on empirical data; the faults were recorded in logging and were modelled to offset grade. No fault sequencing, absolute timing or mechanical validity was applied during fault modelling, and additional fault modelling may be required for an integrated and viable structural framework.

11.5.2Wafi

The Mineral Resource was classified based on factors including data spacing and distribution, geological confidence as a function of continuity and complexity of geological features, and estimation quality parameters—for example average distance to informing samples for block estimation. Other estimation quality parameters were also reviewed including slope of regression and kriging efficiency. However, due to the often noisy variograms and high nuggets, these parameters were often far from optimal.

No Measured Mineral Resources were classified. The Indicated and Inferred classification basis is provided in Table 11-3. The location and classification of the Mineral Resources is shown in Figure 11-1.

Table 11-3: Wafi Confidence Category Classification Input Considerations


Confidence Category	Min No. of Samples	Max Ave Distance	Pass	Variogram Max Range	Slope of Regression
Indicated	24	60	1	60	0.50
Inferred	24	80	1	100	0.15

The uncertainties specifically associated with the Wafi estimate include the following:

•there are a number of mineralised intersections encountered across the Wafi–Golpu system that have not been drilled out or in many cases followed up due to a concentration on the porphyry systems. Areas around the Wafi mineralisation itself have not been completely closed out at depth, nor along strike where high grade intersections commonly sit orphaned at the end of drill holes;


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•the main mineralisation domains at Wafi were built using a 300ppm As contour. This contour was chosen due to it correlating with the higher-grade zones at Wafi; however, the contour corresponds to the high sulphidation overprint, and not to the earlier underlying gold-mineralising event. There are a number of high-grade areas that have not been captured by these domains, even though the outlines were modified to capture some of the nearer high-grade material. Additional work needs to be completed to ensure the correct domain boundaries were selected; and

•the interplay between the subvertical faults, the Compass Fault-related structures and the thrust faults and their impact on the deposit is not fully understood. Additional drilling may result in a change to the underlying geological interpretation.

11.5.3Nambonga

The Mineral Resource for the Nambonga deposit is classified based on evaluation factors including data spacing and distribution, geological confidence as a function of continuity and complexity of geological features, and estimation quality parameters (e.g., average distance to informing samples for block estimation). Other estimation quality parameters were reviewed including slope of regression and Kriging efficiency.

All of the estimated blocks were classified as Inferred. The location and classification of the Mineral Resources is shown in Figure 11-1.

The uncertainties specifically associated with the Golpu estimate include the following:

•incomplete drill hole coverage where the complete grade trend is not fully sampled remains in two areas: the northern and the southern strike extents of the porphyry remain open. In both cases the risk may be expansion or reduction of the mineralised volume. The grade trend may also change with additional drilling as the diffusive model implies the mineralised margin is not an abrupt grade transition;

•the nature of the Upper Buvu Fault where it intersects the porphyries is not well defined. The interaction of the Upper Buvu and the porphyry itself needs further investigation and may result in a change to the underlying geological interpretation; and

•the interplay between the subvertical base-metal-filled Nambonga Fault, the Compass structures and the Upper Buvu Thrust and their impact on the deposit is not fully understood. Additional drilling may result in a change to the underlying geological interpretation.

11.6Mineral Resource Estimate

All Mineral Resources were originally prepared, classified and reported according to SAMREC, 2016 definitions. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

Mineral Resources are reported on a 100% basis with an effective date of 30 June 2022. Harmony has a 50% interest in the WGJV. Mineral Resources are reported exclusive of those Mineral Resources converted to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The QP compiling the Mineral Resource estimates is Mr Ronald Reid, Group Resource Geologist with Harmony Gold (PNG Services) Pty Ltd.

Mineral Resource estimates are provided by deposit in Table 11-4, Table 11-5, and Table 11-6.


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Table 11-4: Summary of the Golpu Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-6


METRIC		Grade			Metal Content
Mineral Resource Category	Tonnes (Mt)	Gold (g/t)	Copper (%)	Silver (g/t)	Gold (kg)	Copper (Mt)	Silver (kg)

Indicated	145.000	0.54	0.90	1.26	78,000	1.350	182,826
Total / Ave. Measured + Indicated	145.000	0.54	0.90	1.26	78,000	1.350	182,826
Inferred	70.000	0.62	0.86	1.10	44,000	0.600	74,455

IMPERIAL		Grade			Metal Content
Mineral Resource Category	Tonnes (Mt)	Gold (oz/t)	Copper (%)	Silver (oz/t)	Gold (Moz)	Copper (Mt)	Silver (Moz)

Indicated	159.835	0.016	0.93	0.037	2.500	1.488	5.878
Total / Ave. Measured + Indicated	159.835	0.016	0.93	0.037	2.500	1.488	5.878
Inferred	77.162	0.018	0.86	0.031	1.400	0.661	2.394
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 using the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr Ronald Reid, FAIG, whose job title is Group Resource Geologist with Harmony Gold (PNG Services) Pty Limited.
2. Mineral Resources are reported on a 50% basis as Harmony holds a 50% interest in the WGJV.
3. Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
4. Mineral Resources at Golpu are reported assuming a bulk mining underground extraction method and metallurgical recovery for copper and gold by sulphide flotation. Mineral Resources are reported above a net smelter return ("NSR") cut-off, which assumes a gold price of USD1,300/oz Au, a copper price of USD3.40/lb Cu, mining cost of USD8.37/t mined, processing cost of USD9.75/t processed, general and administrative (G&A) costs of USD4.17/t processed, copper concentrate treatment charge of USD100/dmt of concentrate, transport cost of USD33.50/wet tonne of concentrate, and copper refining charges of USD0.10/lb of recovered copper. Silver and molybdenum were not valued in the NSR cut-off; however, these elements were reported within the Mineral Resource as they were expected to be recovered with minor circuit modifications or concentrate contract negotiations. Over the life-of-mine, it is anticipated that copper recoveries will average 94% and gold recoveries will average 68%.
5. Metal contents reported do not include allowances for processing losses.
6. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.


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Table 11-5: Summary of the Wafi Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-6


METRIC		Grade			Metal Content
Mineral Resource Category	Tonnes (Mt)	Gold (g/t)	Copper (%)	Silver (g/t)	Gold (kg)	Copper (Mt)	Silver (kg)


Total / Ave. Measured + Indicated	54.000	1.66	0.00	0.00	89,000	0.000	0.000
Inferred	20.000	1.37	-	-	26,000	-	-

IMPERIAL		Grade			Metal Content
Mineral Resource Category	Tonnes (Mt)	Gold (oz/t)	Copper (%)	Silver (oz/t)	Gold (Moz)	Copper (Mt)	Silver (Moz)

Indicated	59.525	0.047	-	-	2.800	-	-
Total / Ave. Measured + Indicated	59.525	0.047	0.00	0.000	2.800	0.000	0.000
Inferred	22.046	0.036	-	-	0.800	-	-
Notes:
1. Mineral Resources are reported with an effective date of 30 June 2022 using the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Resources have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Mr Ronald Reid, FAIG, whose job title is Group Resource Geologist with Harmony Gold (PNG Services) Pty Limited.
2. Mineral Resources are reported on a 50% basis as Harmony holds a 50% interest in the WGJV.
3. Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
4. Mineral Resources at Wafi are reported assuming open pit mining methods with limited internal selectivity, and a process method that is anticipated to be a combination of a carbon-in-pulp ("CIP") and carbon-in-leach ("CIL") operation, with a flotation sulphide recovery mill process. The estimates are reported at cut-offs of 0.4g/t Au for non-refractory gold mineralisation ("NRG") and 0.9g/t Au for refractory gold mineralisation ("RG"). Mineral Resources are constrained within a conceptual open pit shell that uses the following input assumptions: gold price of USD1,400/oz; mining costs of USD5.40/t mined, and process and general and administrative costs of USD17.30/t processed. Metallurgical recovery is estimated at 91% gold recovery NRG and minimum of 47% recovery for RG. Pit slope approximate overall angles range from 33° in oxidised material to 65° in fresh rock.
5. Metal contents reported do not include allowances for processing losses.
6. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.


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Table 11-6: Summary of the Nambonga Mineral Resources as at 30 June 2022 (Exclusive of Mineral Reserves) 1-5

METRIC

Grade

Metal Content

Mineral Resource Category

Tonnes (Mt)

Gold (g/t)

Copper (%)

Silver (g/t)

Gold (kg)

Copper (Mt)

Silver (kg)

Inferred

24.000

0.69

0.20

16,000

0.047

IMPERIAL

Grade

Metal Content

Mineral Resource Category

Tonnes (Mt)

Gold (oz/t)

Copper (%)

Silver (oz/t)

Gold (Moz)

Copper (Mt)

Silver (Moz)

Inferred

26.455

0.019

0.20

0.500

0.052

Notes:

2. Mineral Resources are reported on a 50% basis as Harmony holds a 50% interest in the WGJV.

3. Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

5. Metal contents reported do not include allowances for processing losses.

6. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.

11.7Mineral Resource Reconciliation

The previous Mineral Resources are the same as those reported currently therefore no reconciliation is required.

11.8Comment on Mineral Resource Estimates


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12Mineral Reserve Estimate

Section 229.601(b)(96) (12) (i-iv)

Mineral Reserves are reported for the Golpu deposit only. Indicated Mineral Resources were converted into Probable Mineral Reserves.

12.1Key Assumptions, Parameters, and Methods used to Estimate the Mineral Reserve

The proposed mine life will be 28 years from first production through the processing plant (excluding construction and closure phases). Cost estimates used in the preparation of the Mineral Reserves are based on the most recent mining studies completed in 2018. The Mineral Reserves consist of material that, when delivered to the mine portal, has a recovered value greater than the cost of all downstream processes, including fixed costs and associated dilution.

The mine to port area, surface services and infrastructure, BC44 and BC42, underground services, and infrastructure areas are designed to a feasibility level of confidence. The BC40 cave footprint and thus extraction level layout, are designed at a pre-feasibility confidence level. The infrastructure for BC40 is identical to that of BC44 and BC42 and is at a feasibility level of confidence. There will be no additional surface infrastructure for BC40.

12.1.1Proposed Mining Case

The proposed mining method is block caving at three distinct elevations:

•the BC44 extraction level is planned at 4,400mRL, to extract a total of approximately 67Mt of material over a seven-year period at a peak annualised 16.84Mt/a production rate. During caving operations, ore from the block cave drawpoints will be delivered by diesel load–haul–dump vehicles (“LHDs”) to either of two underground gyratory crushers then conveyed to the Watut process plant on surface by an inclined conveyor system;

•the BC42 extraction level is planned at 4,200mRL, to extract a total of approximately 93Mt of material over a nine-year period at a peak annualised 16.84Mt/a production rate. Materials handling from drawpoint to the Watut process plant is identical to that proposed for BC44; and

•the BC40 extraction level is planned at 4,000mRL, to extract a total of approximately 240Mt of material over a 16-year period at a peak annualised 16.84Mt/a production rate. Materials handling from drawpoint to the Watut process plant will be identical to that proposed for BC44.

The base case was developed by assessing the revenue profile using commercially available PCBC software, to develop block cave schedules at a high level such that the starting point (or base case) provides approximately the correct strategy that was subsequently used for optimisation. When assessing the transition between three block caves there are many permutations that exist, as the tonnes and grade mined from the upper cave affects the available tonnes and grade of the successive caves.

Material generated from BC44 cave establishment activities will be categorised as ore when it has an NSR >USD10/t. This classification will apply until the first crusher is commissioned at BC44. Such ore will be stockpiled on surface and then used in plant commissioning. Gold produced will be a credit to the capital cost of the Golpu Project up until commercial production is declared. Commercial production will occur when the first block cave has reached its hydraulic radius and is self-sustaining for forward production.

Following the commissioning of the first crusher at BC44, the assumption for ore and waste cut-offs, is that all mineralised material, regardless of NSR cut-off, will be processed to reduce the potentially acid-forming (“PAF”) storage requirements due to limited space and difficulty of construction of large PAF storage facilities. Development ore recovery is assumed to be 100% of the in-situ resource block model.

The software package PCBC was used to select the economic block heights and to schedule the optimum extraction sequence for the draw columns.


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Cave ore recovery is assumed to be 100% of the mixed/diluted block model. All columns are taken to the maximum economic height on the BC40 level at the shutoff shown in Table 12-1. The shut-off for each drawpoint and the shut-off strategy for the footprint defines the economic height of draw (“HOD”) of a column.

Table 12-1: Parameters for Column Heights


Block Cave	Ave HOD (m)	90th Percentile HOD (m)	Nominal Shut-Off Value (USD/t)	Draw Points Closed Due To Shut-Off
BC44	320	530	60	4
BC42	490	805	40	5
BC40	590	1,120	25	99
Notes: HOD = Height of draw.

Three different dilution types were attributed as part of the block model:

•mixing dilution which is material above the unmixed economic surface;

•outside (or toppling) dilution which is material coming from outside the projection of the footprint; and

•planned dilution, sub-economic material that is within an un-mixed economic surface.

However, two forms of dilution will be reported:

•material with a value less than USD20/t regardless of location; and

•material from outside the vertical walls of the cave that migrates (toppling) into the cave via crater generation.

All development has mining factors for dilution and recovery applied to accurately represent the expected mined tonnes. All mining volumes (shapes) outside the block model have tonnes contributing but not metal, the tonnes are allocated to unclassified material.

12.1.2Geometallurgical Domains and Recovery

A total of 13 geometallurgical domains were assigned. There is a distinct change in the profile of the metallurgical domains over the LOM. Initially a high proportion of the mineralisation will consist of metallurgical Domain 33 (porphyry) which is characterised by high recoveries of both copper and gold. After approximately Year 9, the proportion of other rock types will increase, with significant amounts of metallurgical Domain 29, 31 and 32. The high grade section of the mining corresponds to the highest proportion of metallurgical Domain 33 material, which represents the highest recoveries of all the metallurgical domains.

The recovery rates per geometallurgical domain is presented in Table 12-2.

12.1.3Net Smelter Return

The NSR is the return from sales of concentrate or metal product, expressed in USD/t, excluding site costs (mining, processing and general and administration) and sustaining and non-sustaining capital costs. The NSR is determined taking into account the treatment, transport and royalty costs “outside the mine gate”. Input parameters for the NSR are summarised in Table 12-3. The copper and gold payable scales are sliding scales dependent on the grade of the material. The copper payable scale varies from 96.65% at >32% Cu to 95.00% at >20% Cu. The gold payable scale varies from 98.50% at >75g/t Au to 90.00% at >1g/t Au.


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Table 12-2: Metallurgical Recovery Assumptions

Copper Circuit

Pyrite Circuit

Leach Circuit

Domain

Cu Conc Grade (%)

Cu Recovery (%)

Au Recovery (%)

BOCO

Supergene

Alunite Metasediment

80.73 x (1- exp(-1.99 x Cu head %))

37.481 x exp (-0.667 x Au feed (g/t))

77 - Au Rec to Cu Conc

Alunite Porphyry

91.21 x (1- exp(-1.99 x Cu head %))

66.61 x exp (-0.667 x Au feed (g/t))

87 - Au Rec to Cu Conc

Dickite Metasediment

73.1 x (1- exp(-3.6 x Cu head %1))

37.481 x exp (-0.667 x Au feed (g/t))

52 - Au Rec to Cu Conc

Dickite Porphyry

If Cu >0.05% : 100 - 25 567/Cu head % - 55.0 516/S head %

If Cu Rec > 0% : 44.577 x exp(1.8967 Au:S in feed)

If Au to Cu Conc > 0% : 172.81 x exp (-0.036 x Au Rec to Cu Cone)

If Cu <0.05% : 0%

If Cu Rec = 0% : 0%

If Au to Cu Conc = 0% : 0%

Dickite + Actinolite Metasediment

84.8 x (1-exp(3.6 Cu head %))

41.37 x exp (-0.65 x Au feed (g.t))

70 - Au Rec to Cu Conc

Dickite + Actinolite Porphyry

94.55 x 11 - exp(-1 .99 x Cu head %)

49.8 x exp(1.8967 x Au:S in feed)

90 - Au Rec: to Cu Conc

Sericite + Actinolite Metasediment

If Cu:S >0.15, If Cu >0.05% : 100 - 3.2963/Cu head % - 25.467/S head %

If Au:S <0.38 : 44.577 x exp (1.8967 x Au:S in feed)

58.824 x exp (-0 .015 x Au Rec to Cu Conc)

If Cu:S <0.15, If Cu >0.05% : 100 - 2-.5567/Cu head % -65.0516/S head %

If Au:S >0:38 : 82%

172.81 x exp (-0 .036 x Au Rec to Cu Conc)

Sericite + Actinolite Portphyry

100 - 3.2963/Cu head % - 25.467/S head %

If Au:S <0.7, If Au:Cu >0.65 : 85 x (1 - exp( -1 .SO x Au (g/t)))

58. 824 x exp (-0 .015 x Au Rec to Cu Conc)

Else : 6.2944 x exp (3.8436 x Au:Cu in feed)

Actinolite Metasediment

If Cu:S > 0.10 : 100 - 5.93374 / Cu head %

If Au:Cu <1.0 : 72.743, exp (-0.527 x Au:Cu in feed)

132 x exp (-0.037 x Au Rec to Cu Conc)

If Cu:S < 0.10 : 50%

If Au:Cu >1.0 : 62%

25%

Actinolite 3% Chacopyrite

If Cu:S > 0.20 : 100 - 7.3515 / Cu head %

If Au:Cu <0.4 : 72.743, exp (-0.527 x Au:Cu in feed)

55.531 x exp (-0.022 x Au Rec to
Cu Conc)

If Cu:S < 0.20 : Domain 31

If Au:Cu >0.4 : 144 x exp (-1.627 x Au:Cu in feed)

Actinolite Porphyry

If > 0.60 Cu:S : 100 - 0.4517/Cu head %- 7.0588/S head %

85 x (1-exp(-1.80 x Au (g/ t )))

55.531 x exp (-0 .022 x Au Rec to
Cu Conc)

If < 0.60 Cu:S : 100 - 0.1296/Cu head % - 0.8974/S in feed %

Chlorite / Epidote


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Table 12-3: NSR Input Parameters


Variable	Unit	Value
Royalties	% of gross revenue from all mining sales.	2.00
Ongoing Regional Support		1.00
Production Levy		0.25
Concentrate treatment charge	USD/dmt	100.00
Copper refining charge	USD/lb	0.10
Copper payable scale	%	Variable
Copper minimum deduction	%	1.00
Gold refining charge	USD/oz	6.00
Gold payable scale	%	Variable
Ocean freight charge	USD/wMt	40.00
Franchise deduction (Bill of Loading)	%	0.25
Contracts subject to weight deductions	%	50.00
Concentrate moisture	%	9.00
Arsenic trigger level	ppm	1.00
Arsenic penalty in excess of 1,000ppm	USD/1,000ppm	2.50

12.2Modifying Factors

The modifying factors are presented in Table 12-4.

Table 12-4: Modifying Factors


Modifying Factor	Unit	Value
Gold Price	USD/oz	1,200
Copper Price	USD/lb	3.00
Exchange Rate
Aus Dollar : USD		0.75
PGK : USD		3.10
NSR Cutoff
Development	USD/t	10.00
BC44	USD/t	60.00
BC42	USD/t	40.00
BC40	USD/t	19.15
Metallurgical Recoveries (by Domain)	%	Various
Total Dilution	%	17.0
Including Toppling	%	1.5

Information on the extent to which the mineral reserve estimates could be materially affected by mining, metallurgical, infrastructure, permitting, and other relevant factors (not limited to a list). Insert a summary table of the Modifying Factors used to convert the Mineral Resource to Mineral Reserve.

12.3Mineral Reserve Estimate

Mineral Reserves are reported in Table 12-5 with an effective date of 30 June 2022, on a 100% basis. Harmony has a 50% interest in the WGJV. All Mineral Reserves are classified as Probable Reserves.

The QP responsible for the estimate is Caveman Consulting.


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Table 12-5: Summary of the Golpu Mineral Reserves as at 30 June 2022 1-5


METRIC		Grade			Metal Content
Mineral Reserve Category	Tonnes (Mt)	Gold (g/t)	Copper (%)	Silver (g/t)	Gold (kg)	Copper (Mt)	Silver (kg)

Probable	200.000	0.86	1.20	-	171,000	2.450	-
Total / Ave. Proven + Probable	200.000	0.86	1.20	0.00	171,000	2.450	0

IMPERIAL		Grade			Metal Content
Mineral Reserve Category	Tonnes (Mt)	Gold (oz/t)	Copper (%)	Silver (oz/t)	Gold (Moz)	Copper (Mt)	Silver (Moz)

Probable	220.462	0.025	1.23	-	5.500	2.701	-
Total / Ave. Proven + Probable	220.462	0.025	1.23	0.000	5.500	2.701	0.000
Notes:
1. Mineral Reserves are reported with an effective date of 30 June 2022, using the SAMREC Code, 2016. For the purposes of this TRS, the Mineral Reserves have been classified in accordance with § 229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K). The Qualified Person responsible for the estimate is Caveman Consulting.
2. Mineral Reserves are reported on a 50% basis as Harmony holds a 50% interest in the WGJV.
3. Mineral Reserves are reported using the following assumptions: block cave mining method, gold price of USD1,200/oz Au, copper price of USD3.00/lb Cu, above a net smelter return cut-off of USD10/t (development), USD60/t (BC44), USD40/t (BC42), USD19.15/t (BC40), variable metallurgical recoveries by metallurgical domain. The total dilution is estimated to be about 17% with toppling contributing approximately 1.5%.
4. Tonnes, grade, and content are declared as net delivered to the mills. Metal contained in tonnages do not include allowances for processing losses.
5. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content. Rounding is to three significant figures.

The approximate location of the Mineral Reserves is indicated in Figure 12-1.

Areas of uncertainty that may materially impact the Mineral Reserve estimates include changes to:

•long-term gold and copper price assumptions;

•exchange rate assumptions;

•metallurgical recovery assumptions;

•input assumptions used to derive the cave outlines and the mine plan that is based on those cave designs;

•operating, and capital assumptions used, including changes to input cost assumptions such as consumables, labour costs, royalty and taxation rates;

•geotechnical, mining, dilution and processing recovery assumptions; including changes to designs as a result of changes to geotechnical, hydrogeological, and engineering data used;

•shut-off criteria used to constrain the estimates;

•assumed permitting and regulatory environment under which the mine plan was developed;

•obtaining mining permits, including timing for finalisation of the Special Mining Lease;

•obtaining agreements to land under customary ownership;

•permits for deep sea tailings placement;

•obtaining operations certificates in support of mine plans;

•obtaining and maintaining social and environmental license to operate.


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Figure 12-1: Approximate Location and Classification of Golpu Mineral Reserves
Source: WGJV, 2018


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Factors that are risk-specific to block cave operations, and which may affect the Mineral Reserves include:

•inrush of water or mud into the underground workings including declines, cave levels and infrastructure areas;

•poorer rock mass quality and quantity than interpreted;

•inability to achieve planned decline development rates having impact on schedule and cost;

•incorrect estimation of cave propagation potentially leading to air blast, caused by the sudden collapse of the cave when a significant air gap is present due to the cave stalling;

•damage to mine workings due to a seismic event.

The major control for the block cave-related risks is additional data collection to provide the data necessary to better understand the rock mass and the fragmentation in the cave and also to the provide the opportunity to dewater and understand the potential for further risk mitigation.

Note that the total mined tonnes do not match the total Life of Mine production schedule as the Ore Reserve estimate was completed at the conclusion of the Feasibility Study Update following the delivery of the Operating Cost and Sustaining Capital estimates.

12.4Mineral Reserve Reconciliation

The previous Mineral Reserve estimate (June 2021) is identical to the current Mineral Reserve estimate and therefore no reconciliation is required.

12.5Commentary on Mineral Reserve Estimate

The QP is of the opinion that Mineral Reserves were estimated using industry accepted practices and conform to SAMREC, 2016. Mineral Reserves have also taken the S-K 1300 guidelines into account. Mineral Reserves are based on underground mass mining assumptions.


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13Mining Method

Section 229.601(b)(96) (13) (i-v)

The proposed mining method is block caving on three levels, namely BC40, BC42 and BC44. The BC44 and BC42, underground services, and infrastructure areas are designed to a feasibility level of confidence. The BC40 cave footprint and thus extraction level layout are designed at a pre-feasibility confidence level. The infrastructure for BC40 is identical to that of BC44 and BC42 and is at a feasibility level of confidence. There will be no additional surface infrastructure for BC40.

13.1Mine design

Block caving was selected for the following reasons:

•orebody geometry and geotechnical conditions;

•high productivity, low operating cost mining method; and

•higher-value material located at depth can be accessed earlier in the mine plan.

The proposed mine plan uses technology conventional to block cave operations, including mine design and equipment. The mine is planned to operate 24 hours per day, every day of the year, apart from scheduled and unscheduled shutdowns. A schematic layout of the proposed mining operations is provided in Figure 13-1, whilst plan view of each level are presented in Figure 13-2.

Access to the mine workings will be via the Watut and Nambonga declines, with each generating waste rock that will either be used in construction activities, processed or deposited within the waste rock storage facilities (WRSFs). Block cave mining will not result in the production of waste rock because all material extracted from the block cave will be fed to the Watut process plant. Block cave mining will cause a subsidence zone of fractured rock to develop that will propagate to surface.

During caving operations, ore from the block cave drawpoints will be delivered by LHD vehicles to an underground crusher. The crushed ore will then be conveyed to the surface. The ore conveyor emerging at the Watut declines portal terrace will continue overland for approximately 600m to deliver crushed ore to a coarse ore stockpile adjacent to the Watut process plant for processing.

13.1.1Access

The minimum required cross-sectional area for the declines is a finished profile height of 6.35m and width of 5.4m. The decline access system will consist of five parts:

•Watut decline system (twin parallel declines);

•Nambonga decline system;

•BC44 decline system;

•BC42 decline system; and

•BC40 decline system.

The Watut decline system will be the primary production, people, equipment, and maintenance access point. The decline will consist of two parallel declines with lateral connections between them extending from the Watut portals to conveyor transfer station 1 (TF1). The twin declines are required for ventilation and egress

during both construction and production phases. During production the declines will be used as access and as a material handling system.

The primary role of the Nambonga decline is a high-velocity ventilation system. It will provide early access to the mineralisation prior to completion of the Watut declines and will provide the operation with a second front for decline access to the orebody that does not intersect the higher-risk Buvu Thrust zone which transects the Watut declines. Once the mine is operational, the decline will be used only for inspections and emergency egress.


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Figure 13-1: Schematic of Mine Layout
Source: WGJV, 2018


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Figure 13-2: Plan View of Mine Layout by Block Cave Levels
Source: WGJV, 2018


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Below TF1, the decline system will be extended as required in three sections, Watut to BC44, BC44 to BC42, and BC42 to BC40 (Figure 13-2). Each system will consist of:

•conveyor decline;

•access decline;

•return air system; and

•intake air system.

The conveyor decline will be located outside the cave zone for BC40 as it is part of the LOM infrastructure.

The cave engineering level will be located at 4,870mRL, approximately 780m from the Nambonga decline. This level will be used for data gathering, further refinement of the rock mass understanding, monitoring of the cave and potentially for dewatering.

13.1.2Cave Design

The extraction level designs for the three levels are based on the El Teniente drawpoint layout style with drives with an excavation size of 5m high by 5m wide, suitable to accommodate an automated 21t loader after ground support is installed. The orientation of the drawpoint drives is parallel to the undercut front, and perpendicular (for BC44 and BC42) to the Compass Fault system. It is considered to be standard practice to orientate the drawpoint drives perpendicular to the undercut front for abutment stress management during undercut progression.

All levels have a layout spacing of 30m x 18m for draw interactivity and to provide a stable footprint. Each level will have two gyratory crushers located on the western side of the footprint, and each crusher will have a three-way tipple. The crusher tipple will be the highest location on the extraction levels to ensure that the materials handling system is never flooded. To enable this, extraction levels will grade from the west to the east with sumps located in the eastern perimeter drive. The cave assumptions are tabulated in Table 13-1.

Table 13-1: Block Cave Layout Assumptions


				Approximate Undercut Size
Block Cave	No. Extraction Drives	No. Drawpoints	Production Area (m2)	Length (m)	Width (m)
BC44	12	268	72,360	400	300
BC42	13	265	71,550	420	300
BC40	17	508	137,160	540	430

An advanced undercut strategy was adopted for all caves. Geotechnical modelling has also shown a requirement to extend and lower the undercut 40m over the extraction level eastern perimeter drive to provide stress shielding. To ensure undercut connectivity the W-cut design consists of two levels; the undercut level (at the top of the drawbells); and the apex level (top of the apex pillar).

The undercut drill-and-blast design incorporates conditioning with blasting every third ring. The W-cut will be established with a slot to create initial void then rings will be fired progressively with the swell removed after each firing. A typical firing will consist of two rings. The burden varies based on the rock type; however, the average burden is approximately 3m. About 30% of the undercut tonnes will be removed during undercutting, and the remainder will be mined as part of the cave.

The planned double-ended drawbells will be mined to a shape similar to that used at Newcrest’s Cadia East operations in Australia. The drawbells will be 12m long at the base and aproximately 16m high to create a functional drawbell. The drawbell drill and blast design will be a central slot with dumped rings radiating outwards from this slot. The dumped rings will act like a wedge firing and assist the blasting. Drawbells will be fired in a single shot with approximately 30% of the tonnes planned to be removed at firing. The remaining tonnes would be excavated as part of the cave.


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A de-stress slot will be located on the western side of each of the footprints and is designed to create a barrier to protect the footprint infrastructure (drawpoints and drawbells) from the abutment stresses. The slot will be integrated with the undercut to provide an unbroken shield. The slot will be established using standard long hole rise blasting and extended using three-hole patterns on a 2.9m burden.

All firing will be up-holes progressing in front, and in the direction of the undercut. The slot will be progressed in 14.5m (along strike, five rings) shots with the upper level leading by a minimum of one shot for safety and interaction purposes. The slot will remain full throughout the process with sufficient material removed to demonstrate material is flowing and the targeted porosity within the slot is obtained.

13.1.3Ventilation

Due to high surface ambient temperatures and humidity, and the depth of the mine, considerable ventilation and cooling capacity will be required to be installed to ensure the health and safety of mine workers.

The ventilation system was designed for a 16.84Mt/a production capacity. During the capital development period, ventilation needs will be dominated by diesel exhaust dilution requirements, whereas for the steady-state mine the design constraint will be heat rather than diesel dilution.

Each of the block caves has the same ventilation strategy, which consists of intake air being delivered to the north and south of the eastern perimeter drive via the accesses. Airflow will move from east to west and be exhausted via a 3m diameter rise located above each of the crushers. The airflows within the extraction drives will be governed by a ventilation-on-demand (“VOD”) system successfully implemented at Newcrest’s Cadia East mine. Using the VOD system and having two exhaust points on the footprint that are located at the tipple keeps the system simple, easily managed, and ensures velocities required to manage dust are achieved where required.

13.2Mine Plan Development and Life of Mine Schedule

It is proposed that the first block cave, BC44, will be situated at 4,400mRL. The second block cave, BC42, will be situated at 4,200mRL. The third block cave, BC40, is proposed to be situated at 4,000mRL. The mine has a total forecast life of 28 years from first production of the processing plant (excluding construction and closure

phases). The production profile is presented in Figure 13-3 and Figure 13-4.

Given the vertical separation between the caves is 200m, a reduction in production during the cave transition periods can be expected. However, this was minimised to maximise project value by increasing the concurrent production from the two caves and allowing the second (lower) cave to develop to a point where it can be productive when the first (upper) cave is closed.

13.3Geotechnical and Geohydrological Considerations

13.3.1Geotechnical

Geotechnical interpretations are supported by point load testing, uniaxial compressive strength testing, modified punch testing (block punch index), triaxial (multi-stage) tests, acoustic televiewer (“ATV”) and manual logging of drill core, and RQD, RMR, intact rock strength (“IRS”) and tunnelling quality index (Q’) measurements and calculations. In-situ stress testing was undertaken with ANZI cells in addition to acoustic emission testing and borehole breakout (from ATV surveys).

A domained geotechnical model was constructed incorporating interpolated data, with the interpolation controlled by the proximity to interpreted structures and boundaries within the domain. The final geotechnical block model consists of a total of 18 domains (inclusive of a host domain) and 69 sub-domains. A number of those sub-domains are then subsequently filtered by depth sub-categories.

The final compiled interpolated block model of RMR, RQD, and IRS, together with the summary statistics of rock quality and strength for each domain and sub-domain, was supplied to Itasca Australia (Pty) Limited (Itasca) as design input for the numerical assessment of stability and cave propagation.


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Figure 13-3: Graph of Wafi-Golpu LOM Plan – Tonnes and Grade

Figure 13-4: Graph of Wafi-Golpu LOM Plan - Metal Produced


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Itasca completed 3D numerical analyses, including FLAC3D and CAVESIM in order to assess caveability and subsidence over the LOM. The models encompassed the BC44, BC42 and BC40 block cave designs, 10 regional faults and the pre-mining surface topography. All the model permutations resulted in successful propagation of the BC44, BC42 and BC40 caves (Table 13-2).

Table 13-2: Geotechnical Results


Block Cave			Results
BC44			The models indicate that almost all reserves located vertically above the footprint are successfully caved. The caving mechanism involves first chimney caving in the weaker rock units to surface. At breakthrough the cave is near vertical below Reid Fault, but much of the reserves above the Reid Fault are not mobilised. Following breakthrough, the cave gradually broadens towards the north and along Camp Faults near surface. The predicted cave shape at the end of BC44 production is bound by Compass 5 Fault in the north and Compass 6 Fault in the south near surface, and the yielded zone extends between 50– 100 m around the cave.
BC42			Cave propagation during the early stages is driven by shear failure of the material in a high stress environment, with major principal stresses exceeding 90 MPa. The proposed schedule results in physical breakthrough into BC44 production level after 10 months of production (two months before production ends in the upper lift), and seismogenic connection with BC44 up to three months earlier. At the end of BC42 production, the cave is predicted to be vertical up to 5100 mRL. Above this level, the span of the cave reduces slightly, mostly due to interaction with the faults in a lower-stress environment.
BC40			Cave propagation during the early stages is driven by shear failure of the material in a high stress environment, with major principal stresses exceeding 100 MPa. The proposed schedule results in physical breakthrough into BC42 after seven months, and seismogenic connection up to four months earlier. At the end of BC40 production, the cave is predicted to be near vertical, and significant yielding (>50% cohesion loss) can be observed up to 200 m from the cave in the weak sediments. The models indicate that almost all reserves located vertically above the BC40 footprint are successfully caved.

The caves grew freely in response to draw in all rock types in the column and no stalling or hang-ups were observed on the cave sidewalls at the end of production. No significant variations in the size or growth rate of the caves were observed using upper design material properties in the Livana Porphyry. However, the potential exists for differential or chimney caving in the weak rock especially near contacts or in fault zones. Itasca recommended that future studies explore the potential for cave engineering (e.g., hydraulic fracturing, horizontal slots, etc.) to increase the caveability of the Livana Porphyry.

The location of the footprint with respect to the surface topography (west area of the footprint under a mountain) leads to increased subsidence towards the west. A stability angle of 45° was selected for all the near surface materials, which means that the crater develops with a 45° angle unless failure occurs within the crater slopes due to rock mass yielding or slipping along the faults. Given the relatively conservative stability angle adopted for the analysis, the crater slopes remain stable at the end of production, with very limited surface cracking around the edges of the crater.

Extraction level footprints were placed in the Livana porphyry at both the BC44 and BC42 elevations to ensure robustness and stability as the actinolite host rock mass has a lower strength at these elevations. Below 4,200mRL, the actinolite rock mass gains strength and geotechnical advice is that the extraction level footprint could extend beyond the Livana Porphyry and into the actinolite to recover the remnant mineralised material above BC40.

Crushers were placed in the barren western (diorite) porphyry and located >150m from the cave footprint to reduce the risk of damage from caving induced abutment stress. Preliminary modelling results indicate that the extraction levels and crusher infrastructure will be stable. Measures such as de-stress slots, extension of the undercut to the east of the footprint and development of the east perimeter drive post completion of the eastern undercut extension will be required to ensure the stability of this development.


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13.3.2Geohydrological

Groundwater inflows to the mine will commence at the start of the Nambonga decline development. By the time development reaches BC44 the combined total inflows are predicted to increase to about 240L/s.

After BC44 and BC42 commences production, the inflows will decrease to about 150L/s in Year 16 of the operation. After that time, the inflows are expected to rapidly increase to about 240L/s as BC40 commences operation before decreasing to a steady-state rate of 155L/s. This is due to propagation of the BC40 cave as it reaches major water-bearing oxide aquifers. Once groundwater is removed from oxide aquifer storage, the inflows are projected to be primarily associated with recharge.

Dewatering of the mine will be conducted from underground as well as using surface dewatering bores and horizontal drains around the cave perimeter. A series of sumps and pump stations will be progressively established during decline development. This system will be maintained for the LOM.

Since the water extracted by these dewatering bores is currently discharging to the streams (as streams base flow) around the future cave zone, no treatment of this water is envisaged, and the water will be discharged directly to these streams. This will not only reduce mine water treatment requirements but will also contribute to maintaining environmental flows in the streams affected by mine dewatering.

During the period from decline development period and Watut process plant start-up, prior to disposal of the mine water from this dewatering system, mine water will be treated at the surface in order to adjust its chemistry to conform with PNG environmental guidelines. After adjustment, the mine water will be discharged to Boganchong Creek.

Following start up all water will be consumed by the processing requirements or disposed of via deep sea tailings placement (DSTP); only in an emergency will the treated water be discharged to the creek. Inflows to the mine and discharge to the environment will be monitored for quality and quantity throughout the LOM.

Experience from similar mining operations indicates that once the block cave breaks through to the surface, during heavy rainfall events there will be a high risk of water flows rapidly reporting to the mine workings underground. The reporting time varies at different mines, from 24 hours to two to three weeks.

There is no practical method to seal the subsidence zone and the mine will be prepared for dealing with such rapid increase in mine water inflows by a combination of providing emergency water pumping capacity, underground emergency water storage, and allowing for temporary flooding of the lowest mine openings. All pump stations and electrical equipment associated with dewatering will be installed above the expected flood line, to ensure mine dewatering can still be achieved during and after a flood event.

13.4Mining Operations

There are no current mining operations underway.

13.5Mining Rates

Mining is planned at an average rate for 16.84tpa (Figure 13-3).

13.6Mining Equipment and Machinery

The proposed equipment list is presented in Table 13-3.

Table 13-3: List of Mining Equipment


Function	Equipment	No.
Mine Development and Cave Establishment Equipment
Free Dig Development	Tunnel Excavator	1
Drilling	Face drilling jumbo	3
Drilling	Long-hole production drill	4
Ground Support	Rock bolting jumbo	6
Ground Support	Spray/agitator unit	12


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Function	Equipment	No.
Ground Support	High volume agitator	3
Ground Support	Cable bolting jumbo	4
Loading	LHD – development	4
Hauling	Truck 60t	7
Charging	Charge up unit – development	2
Charging	Charge up unit – production	2
Services	Integrated tool carrier	5
Primary Production Equipment
Loading	LHD - production	25
Secondary Breakage	Rock breaker	2
Secondary Breakage	Secondary breaking jumbo	2
Hang-up Removal	Vehicle mounted water cannon	1
Hang-up Removal	High hang-up removal unit	1
Supporting and Secondary Equipment Fleet
	Integrated tool carrier	6
	Telehandler	2
	Water truck	1
	Grader	3
	Vibratory compactor	1
	Skid steer loader	2
	Light vehicle	21
	Underground bus	2
	Services truck	2
	Flatbed delivery truck	1

13.7Grade and Dilution Control

Due to the bulk mining nature of the mining method, no grade and dilution control systems will be implemented.

13.8Ore transport

Ore will be extracted from the block cave drawpoints by LHDs and trammed to the tipple. The ore will be tipped into a ROM bin of approximately 200t live capacity, and discharge into the gyratory crusher where an estimated 5% (based on a draw height of 150m) of the ore will be broken by a rock breaker before being crushed to a P80 size of approximately 115mm. The percentage of ore to be broken by the rock breaker decreases as the cave propagates as the fragmentation becomes finer through increased comminution in the cave.

The crushed ore will discharge into a 500t crushed ore bin and transfer onto a collection conveyor. The collection conveyor will discharge onto the decline conveyor system, transferring onto the main decline conveyor to surface and onto the stockpile feed conveyor, and discharging onto the coarse ore stockpile adjacent the Watut process plant.

Two identical crusher stations will be located on each of the block caves, crusher station A and crusher station B. Each crusher will be able to process 50% of the ROM feed. The crusher stations will be located on 4,400mRL (BC44), 4,200mRL (BC42) and 4,000mRL (BC40). The materials handling strategy for the three block

caves is identical, with the same mechanical equipment being installed in the crusher chambers. The only difference is the length of the conveyor belts.

Six collection conveyors will be installed underground, two per block cave, and one for each of the crushers. The conveyors are designed for 1,500t/hr (including 6% moisture) to cater for block cave production. The incline and overland conveying systems include nine conveyors, conveyor legs 1–8 underground, and the overland conveyor from the portal to the coarse ore stockpile.


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13.9Mining Personnel

The steady state full time employees by department is presented in Table 13-4. The production staff compliment, which includes mining, is 110.

Table 13-4: Steady State Full Time Employees by Department


Department			No.
Asset Protection			67
Camp Services			142
Commercial			24
Community Affairs			27
Environment			23
External Affairs			22
Human Resources			25
Information Technology			12
Maintenance			197
Management and Administration			5
Occupational Health and Safety			53
Power Station			55
Production (Mining)			110
Supply and Logistics			25
Treatment (Processing)			68
Other			13
Total			868

13.10Commentary on Mining Method

The QP notes:

•the proposed mine plan uses block cave methods; three cave panels are planned;

•the projected mine life is approximately 28 years; and

•the planned equipment fleet is conventional to block cave operations.


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14Processing and Recovery Methods

Section 229.601(b)(96) (14) (i-iv)

The proposed Watut process plant will be a compact copper concentrator that is progressively built (in line with the profile of the mine ramp-up) to be capable of processing approximately 17Mt/a of crushed ore at peak capacity to produce a high grade copper concentrate. The plant is designed to cater for the ore composition changes over the LOM, and blending is not expected to be required.

A two-stage ramp-up philosophy will be used. The plant will run intermittently (campaign treatment) and in 50% turndown mode for the first three years. During the mine ramp-up period, the total volume of the coarse ore stockpile and start-up stockpile will be used to maintain plant utilisation as high as practicable, minimising the number of plant stops.

14.1Mineral Processing Description

Models for the two process flowsheet variations were derived from the validated base case flowsheets, using standard metal balance techniques per unit operation. A simplified flow diagram for the LEAN flowsheet is provided in Figure 14-1 and for the Golpu flowsheet in Figure 14-2. The process plant will include the following:

•crushed ore stockpile and reclaim;

•single SAB milling circuit, with the ball mill operated in closed circuit with cyclones for operation at the lower design throughput of 8.42Mt/a. This will be expanded to include a second ball mill, operating in parallel with the original ball mill circuit when the plant is expanded to a design capacity of 16.84Mt/a. The target grind size is a P80 of 106μm;

•a pebble crusher circuit is included. Pebbles are recirculated to the SAG mill during the 8.42Mt/a LEAN and early years of the 16.84Mt/a Golpu flowsheet with the pebble crusher included when necessitated by increased ore hardness in the later years of mine life;

•copper flotation comprising rougher flotation, copper rougher cleaner (single Jameson cell) which processes the first rougher concentrate, copper concentrate regrind, followed by a three-stage copper cleaner, and cleaner–scavenger stage;

•additional copper flotation cells forming part of the LEAN circuit are commissioned nine years post Special Mining Lease grant to accommodate the ramping of the process plant to design capacity of 16.84Mt/a. A pyrite rougher flotation circuit, which further processes the copper rougher tailings, is introduced 10 years post Special Mining Lease grant to meet the requirements of the increased metasediment content of the ore, corresponding to the porphyry content of less than 75%;

•a pyrite concentrate regrind circuit followed by cleaner and cleaner–scavenger stages;

•concentrate dewatering and handling;

•tailings thickening, pumping and water recovery;

•reagent mixing and distribution (including lime slaking, flotation reagents, and flocculants);

•grinding media storage and addition;

•water services (including raw water, fire water, potable water, and process water); and

•air services (including high-pressure air and low-pressure process air).

Concentrate will be pumped 103km via an overland pipeline to the port facility at Lae. The processes at the port includes:

•concentrate slurry tank storage;

•concentrate filtration plant to dewater concentrate; and

•concentrate filter cake discharged onto the ground for loading onto the ship.


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			Technical Report Summary for Kalahari Goldridge Mining Company, North West Province, South Africa


Figure 14-1: Golpu LEAN Flowsheet
Source: WGJV, 2018


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			Technical Report Summary for Kalahari Goldridge Mining Company, North West Province, South Africa


Figure 14-2: Golpu General Flowsheet
Source: WGJV, 2018


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Thickened tailings will be pumped 103km via an overland pipeline to the coast, 6km east of Lae, where they will undergo the following:

•storage in mixing tank; and

•pumping via marine outfall pipeline into the deep water Huon Gulf.

No water will be returned to the process plant downstream of the tailings thickener.

14.2Plant Throughput, Design, Equipment Characteristics and Specifications

14.2.1Comminution Circuit

The comminution circuit will consist of a single SAG mill in open circuit, followed by two ball mills, configured in parallel, operating in closed circuit with dedicated classification cyclones (Figure 14-2). However, the comminution circuit is configured as a single SAB combination for the LEAN flowsheet for the first three years (Figure 14-1). The Golpu flowsheet will be commissioned in two stages with the additional ball mill circuit brought on later to match the increased tonnage profile, resulting in a SAG/ball mill configuration with the two ball mills operated in parallel. The Golpu pyrite circuit will be commissioned the following year.

The SAG mill will be operated in open circuit while each ball mill will be configured in closed circuit with a dedicated classification cyclone cluster. Each ball mill will have a circulating load of 240%. The SAG and ball mill are designed for operating at 75% of critical speed. The specific energy values used were obtained from testwork and are 6.0kWh/t for the SAG mill and 9.2kWh/t for the ball mills. The total charge volume ranges between 20–25% by volume in the SAG mill and 25–34% by volume in the ball mill. The ball charge volume is adjusted according to the demand and operation of the mill. The in-mill density designed for is 67% by mass for the SAG mill and 70% by mass in the ball mills. The discharge of both SAG and ball mills will be via a trommel screen.

Each ball mill will be operated in closed circuit with a classification cyclone cluster, the underflow will return to the mill while the cyclone overflow product will be routed across a 3mm square aperture vibrating trash screen to protect downstream processes from ingress of oversize material in the event of the cyclones roping. Two standby cyclones are included in each classification cyclone cluster. The cyclone overflow product specification is a P80 of 106μm and a density of 36% solids by mass to allow for a nominal dilution from the downstream trash screen spray water while maintaining a flotation feed density of 35% solids by mass.

Equipment specifications are included in Table 14-1. With the exception of the copper rougher cleaner, all flotation cells selected for the design were forced air flotation cells.

Table 14-1: Mill Equipment Specifications


Criteria	Units	SAG Mill	Ball Mill
Units installed		1	2
Diameter (inside shell)	mØ	11.0	7.0
Effective grinding length	m	5.5	11.7
Diameter and length (Imperial)	ft x ft	36.0 x 18.0	23.0 x 38.5
Length : diameter ratio		0.50	1.66
Discharge arrangement		Grate	Overflow
Speed (design)	% Nc	75	75
Liner type		Steel	Steel
Liner thickness (new)	mm	100	100
Media type		Steel balls	Steel balls
Media (top size)	mm	125	50
Ball charge (design)	% Vol	14	34
Total load (design)	% Vol	25	34
Pinion power (design)	kW	11,970	9,525
Installed	kW	2 x 8,000	2 x 6,250


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14.2.2Flotation Circuit

The copper rougher cleaner circuit will consist of a Jameson flotation cell equipped with froth-washing facilities and an external recycle mechanism. Jameson Cells are best used for recovery of fast-floating liberated material, as is the case with the Golpu ore. It has been demonstrated at several similar operations that, in this application, Jameson Cells are capable of producing final product grades in a single stage of flotation. A single Jameson cell was selected that was capable of treating a feed stream of 105t/hr solids with a concentrate of 67.4t/hr solids. These cells can operate successfully in turndown mode through manipulation of the recycle stream.

The pyrite flotation circuit is only applicable during the Golpu flowsheet and will consist of a rougher, a cleaner and a scavenger bank.

Required residence times were determined at laboratory scale and are provided in Table 14-2. The scale up factor applied to the laboratory determined residence time is 2.1 for all the flotation cells.

Table 14-2: Residence Times


Area			Residence Time (min)
Copper Roughers			12
Copper Cleaners			12
Copper Scavengers			6
Second Cleaners			12
Third Cleaners			11
Pyrite Roughers			13
Pyrite Cleaners			6
Pyrite Scavengers			6

The flotation cells will be arranged in a cascading bank with two cells on one level which allows for one level control per level. Froth wash water is allowed for on every cell but only stipulated in the copper rougher cleaner cell as a ratio of 1:1 relative to the water content of the concentrate. The concentrate density was designed throughout the flotation circuit to always be at 25% by mass.

The flotation circuit will consist of two circuits: copper flotation and pyrite flotation, each with dedicated regrind circuits. Mass pull assumptions are provided in Table 14-3. Flotation cell sizing and the number of cells required are provided in Table 14-4.

Table 14-3: Mass Pull Assumptions


Area	Design Mass Pulls LEAN (%)	Design Mass Pulls Golpu (%)
Copper Roughers First Concentrate	6.22	5.08
Copper Roughers Second Concentrate	4.54	5.78
Copper Roughers Third Concentrate	9.97	9.75
Copper Roughers	4.57	3.26
Copper Cleaners	5.19	4.08
Copper Scavengers	0.50	0.50
Second Cleaners	4.39	3.45
Third Cleaners	3.41	3.14
Pyrite Roughers	2.73	-
Pyrite Cleaners	1.10	-
Pyrite Scavengers	1.60	-
Final Concentrate	7.98	6.04


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Table 14-4: Flotation Cell Numbers and Sizing


	LEAN		Golpu
Area	No.	Sizing (m3)	No.	Sizing (m3)
Copper rougher flotation	40	300	8	300
Copper rougher cleaner	Single Jameson cell, B6500/24
Copper cleaner flotation	3	100	6	100
Copper scavenger flotation	3	40	5	40
Second cleaner flotation	5	40	7	40
Third cleaner flotation	3	40	5	40
Pyrite rougher flotation	-	-	7	300
Pyrite cleaner flotation	-	-	5	30
Pyrite scavenger flotation	-	-	4	30

14.2.3Copper Regrind Milling Circuit

Concentrate from the second to the eighth rougher flotation cells will be combined with the tailings stream from the copper rougher cleaner flotation cell and then directed to the regrind circuit. The overflow from the copper regrind densification cyclone cluster will bypass the regrind mill while the underflow will feed the regrind mill; this is approximately 80% of the circuit feed.

One standby cyclone is allowed for in the regrind mill. The regrind mill will be in open circuit with the cyclone cluster and will allow material to pass through once only; no provision is made for recycle. The target grind size for copper concentrate regrind is 80% passing 20μm.

14.2.4Pyrite Regrind Milling Circuit

Concentrate from the pyrite rougher flotation cells will be directed to the pyrite regrind circuit. The overflow from the pyrite regrind densification cyclone cluster will bypass the regrind mill while the underflow will feed the regrind mill; this is approximately 80% of the circuit feed. One standby cyclone is allowed for in the regrind mill.

The pyrite regrind mill will operate in the same manner as the copper regrind mill in that it will be in open circuit with the cyclone cluster and will allow material to pass through once only. No provision was made for recycle. The target grind size for pyrite concentrate regrind is 80% passing 30μm.

14.3Energy, Water, Process Material and Personnel Requirements

14.3.1Energy

The SAG mill will require two 8,000MW drives, and each ball mill will require two 6,250MW drives. The SAG and ball mill hjgh voltage motors will account for approximately 70% of the process plant load, which amounts to nearly 60% of the overall maximum site power demand.

Electrical power will be sourced from an independent power provider such as PNG Power Limited or some other third-party provider. A container-mounted electrical substation will be installed at the port facilities area. Diesel generators will be onsite for back up.

14.3.2Water

Water is required for process water make-up and reagent mixing. The two thickener overflow streams will be recycled to the process water tank and the balance of the make-up water requirements will be supplied from the water treatment facility or alternatively from a raw water dam.

The process water tank will be fitted with two sets of pumps. The process water pumps will supply dilution water to the milling circuit as well as providing process water to every tank in the plant.


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The raw water tank will be fed with clean raw water from the water treatment facility or alternatively from the raw water dam. The raw water tank will also be fitted with two sets of pumps: it will supply the reagent pumps for reagent dilution and the spray water pumps for all of the spray systems in the process plant (e.g., at the concentrate thickener feed screen).

The potable water supply will supply the plant safety showers and provides sampler spray/dilution water.

Water will be supplied from the water treatment plant located at the mine infrastructure area or alternatively directly from a raw water dam. Process plant run-off will be collected in the site-wide stormwater management system and directed to the raw water dam via silt traps.

Watut process plant tailings will be discharged down the DSTP and as a result no water will be recovered to the Watut process plant from the tailings downstream of the tailings thickener.

Thickened flotation concentrate will be pumped from the Watut process plant to the concentrate filtration facilities located at the port facilities area. Concentrate filtrate will be treated and discharged to the relevant regulations/guidelines for seawater quality. Discharge will be directly into the tidal basin, adjacent to the plant site.

14.3.3Process Materials

Materials required for the process plant include:

•steel grinding media;

•frother IF6500;

•collector AP3894;

•collector A3418A;

•Collector PAX;

•flocculant Magnafloc M155;

•sodium metabisulphite (“SMBS”);

•lime; and

•compressed air.

14.3.4Personnel

The steady state full time employees by department is presented in Table 13-4. The treatment staff complement is 68 full time employees.

14.4Commentary on the Processing and Recovery Methods

The QP notes:

•the proposed plant uses conventional designs and equipment;

•the technology associated with the ore processing is an industry standard for this style of deposit;

•the plant will be scaled, and progressively built in line with the profile of the mine ramp up; and

•two flowsheets are proposed.


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15Infrastructure

Section 229.601(b)(96) (15)

The existing infrastructure located in the mine area was constructed in support of the exploration drilling and orebody definition programme and the early works construction. The existing infrastructure is summarised as follows:

•geological core storage yard at 9 Mile;

•site access entry gate and offices at Demakwa;

•Bavaga laydown yard and workshop;

•drillers yard on Mount Golpu North Ridge;

•Wafi exploration camp;

•Finchif 1 construction camp;

•Finchif 2 construction camp and laydown yard; and

•various access and community roads, laydown areas and helipads.

The development of the Golpu Project will require the construction of infrastructure to support the mining and processing operations. The Golpu Project infrastructure will occupy three geographical areas consisting of the mine area, an infrastructure corridor, and a coastal area. The infrastructure corridor will link the mine and coastal facilities. No infrastructure has yet been constructed.

15.1Surface Infrastructure

Surface infrastructure required has been divided into the three geographic areas:

•mine area: underground access portal terraces and waste rock storage facilities supporting each of the Watut and Nambonga declines, the Watut process plant, power generation facilities, laydown areas, water treatment facilities, quarries, wastewater discharge and raw water make-up pipelines, raw water dam, sediment control structures, roads and accommodation facilities for the construction and operations workforces;

•infrastructure corridor: concentrate pipeline, terrestrial tailings pipeline and fuel pipeline; mine and northern access roads to connect with the Highlands Highway, laydown areas. New single-lane bridges are proposed over the Markham, Watut and Bavaga Rivers. Laydown areas will be located at key staging areas; and

•coastal area: port facilities, including the concentrate filtration plant and materials handling, storage, ship loading facilities and filtrate discharge pipeline; tailings outfall, including a mix/de-aeration tank and associated facilities, seawater intake pipelines and DSTP outfall pipelines, pipeline laydown area, choke station, access track and parking turnaround area.

The surface infrastructure plan for the mine area is presented in Figure 15-1, along with the start of the infrastructure corridor. The entire infrastructure corridor route is indicated on Figure 3-1. The port infrastructure layout is presented in Figure 15-2.

The mountainous nature of the mine site will require the establishment of a series of terraces on which the various infrastructural components will be laid down. A 3d schematic of the site layout is presented in Figure 15-3.

15.1.1Ore and Waste Rock Storage Facilities

A temporary start-up ore stockpile is planned to store ore extracted during the development of the BC44 undercut and extraction levels. It will be built on a purpose built, low- permeability base, adjacent to the Watut declines WRSF, to stockpile material for processing until the Watut process plant commences operation. This ore will then be used in the commissioning process.


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Figure 15-1: Plan of Site Surface Infrastructure and Beginning of the Infrastructure Corridor


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			Technical Report Summary for Kalahari Goldridge Mining Company, North West Province, South Africa


Figure 15-2: Plan of the Surface Infrastructure at the Port


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			Technical Report Summary for Kalahari Goldridge Mining Company, North West Province, South Africa


Figure 15-3: Schematic 3D view of the Surface Infrastructure at the Mine Site
Source: WGJV, 2018


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A coarse ore stockpile will be required to maintain a steady supply of ore for the Watut process plant and to minimise fluctuations in the availability of feed material. Crushed ore from underground will be conveyed to a single, conical, open stockpile with a live capacity of approximately 40,000t. The stockpile will be located between the Watut declines portal terrace and the process plant terrace. Ore in the coarse ore stockpile will be stored for an average of 18 hours.

The Watut declines WRSF design is constrained by the Boganchong Creek valley sides. The facility will cover approximately 12ha of the Boganchong Creek valley and will be about 780m long and 140m wide, with a varying vertical height. The downstream end of the facility will not have a conventional WRSF toe but will abut the process plant terrace, forming one continuous footprint. The WRSF has a design capacity of 1.2Mt of PAF material.

Waste rock from the Nambonga decline will be stored within a WRSF that will be located near the decline. The WRSF will store approximately 0.86Mt of waste rock from the Nambonga and Watut declines, consisting mostly of PAF waste rock (0.83Mt) and a small amount of NAF waste rock (0.03Mt). The WRSF will cover an approximate 5ha area and will be about 10m high.

Once the underground crusher is installed, all rock will be transferred to the underground crusher and delivered to the surface as part of the ore stream for processing. Unlike typical open-cut mines, this means there is effectively no waste rock generated during operations.

15.1.2Tailings Storage Facilities

The WGJV adopted DSTP as the preferred tailing management option. The decision was based upon long-term safety, engineering, environmental, social, cultural heritage and economic factors. DSTP is presently used at six mines in four countries. Mines in PNG that use DSTP to manage tailings include Misima (mined out/closed), Lihir (operated by Newcrest), Ramu, and Simberi.

In 2010 CEPA, in collaboration with the Mineral Resources Authority, commissioned the Scottish Association for Marine Sciences to prepare a set of Draft General Guidelines for DSTP in PNG (SAMS, 2010). The engineering design for the DSTP system at Golpu were undertaken in accordance with these Draft General Guidelines for DSTP in PNG, to the maximum practicable extent.

DSTP involves the discharge of a tailings slurry from a pipeline into the sea at a location where deep oceanic water occurs close to shore and a steep and continuous slope occurs between the outfall terminus and the deep ocean floor. The preferred option of DSTP was considered by WGJV for the Golpu Project due to the availability of deep water in the Huon Gulf, located approximately 100km to the east of the mine area that could potentially accommodate the placement on the ocean floor of the current anticipated LOM tailings of approximately 360Mt. The location of the DSTP is indicated in Figure 15-2.

DSTP will involve the discharge of tailings slurry from an outfall pipeline terminus that will be located approximately 200m below the ocean surface. On exiting the outfall pipe, the tailings will flow down the sloping seafloor as a density current, with the ultimate deposition of the tailings at a depth >1km.

15.1.3Power and Electrical

Power generation using intermediate fuel oil (“IFO”) was assessed to be the most economic and reliable way to meet mine power demand over the life of the operation. During the construction phase, power will be provided by on-site diesel generators. Approximately 20 generators (depending on the units selected) are expected to be used for surface and underground works.

For the operations phase, the WGJV proposes to construct and operate a power generation facility using reciprocating engines to supply power for the mine, process plant and accommodation facilities. The power generation facilities for the mine area are proposed to be located approximately 6.5km north of the Watut process plant on an existing cleared pad and will be constructed in two stages. The first stage will consist of nine 10 MW generator sets to meet the initial power demand of 56MW. The second stage will accommodate the peak power demand of approximately 100MW through the addition of five 10MW units taking the total to 14 generator sets.


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15.1.4Water Usage

The total demand for water will be typically around 1,600m³/hr during operations. Reductions in demand occur from Year 6–Year 7 of operations and Year 13–Year 15 as mining transitions from BC44 to 42 and BC42 to 40, respectively. Treated water and runoff water from the process plant and stockpile areas will be used to supply the water demands, where possible. For the majority of operations, 100% of the treated water is likely to contribute to water supply.

During operations, treated mine wastewater (from declines, block caves, runoff and seepage and sewage effluent) will be used as the primary water source for ore processing and as the transport media for concentrate and tailings.

Given that the process water demand exceeds the volume of waste water for the majority of the time during operations, it is predicted that there will be limited periods during operations in which mine waste water will require discharge to the Watut River.

Sludge generated from water treatment will report directly to the process plant during operations. Runoff and seepage from the coarse ore stockpile will be used directly in the process plant without treatment.

Additional site water demands, i.e., those not fulfilled through treated water, will be supplemented using lower Watut River water. Water from the lower Watut River will conservatively provide around 50% of the total demand during operations. This volume of water would represent less than 1% of the flow rate of the lower Watut River, even during the dry season.

The water treatment plant is based on a system developed by Clean TeQ (2017) and will be installed on the process plant terrace prior to development of the Watut declines.

15.1.5Pipelines

The concentrate and terrestrial tailings pipelines will transport the concentrate and tailings slurries from the process plant terrace located within the mine area to the coastal area.

The concentrate pipeline will terminate at the concentrate filtration plant in the port facilities area at the Port of Lae, while the terrestrial tailings pipeline will continue through Lae to the outfall area, located between the Wagang village and the mouth of the Busu River (Figure 15-2).

The fuel pipeline will transport fuel from the Lae bulk fuel storage facility at or near the Port of Lae to a storage facility at the power generation facility in the mine area.

15.1.6Logistics and Supplies

Bulk fuel will be delivered to the mine area via truck (diesel) and an 86.5km IFO pipeline. Vehicular delivery will provide fuels to meet the needs of vehicles, diesel generators during construction and mobile equipment.

All other supplies and equipment will be brought in via the new road and associated bridges to be constructed along the infrastructure corridor (Figure 3-1).


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15.2Underground Infrastructure and Shafts

Underground infrastructure will include the following (Figure 13-1 and Figure 13-2):

•Watut decline portal and associated infrastructure including decline entrance, water treatment facility, ventilation fans, refrigeration plant including cooling towers, conveyors and transfer points, electrical substations and switch rooms, drainage and stormwater infrastructure, diesel generators and associated infrastructure, workshops, buildings, fuel facilities, washdown bay, first aid and emergency response. The Watut decline system will be the primary production, people, equipment, and maintenance access point;

•Nambonga decline portal and associated infrastructure including decline entrance, ventilation fans, air cooling system including refrigeration machines, transfer points for waste rock, drainage and stormwater infrastructure, diesel generators and associated infrastructure. The primary role of the Nambonga decline is a high-velocity ventilation system;

•three inter block cave level declines which consist of conveyor decline, access decline, return air system and intake air system;

•engineering level located at 4,870mRL, approximately 780m from the Nambonga decline. This level will be used for data gathering, further refinement of the rock mass understanding, monitoring of the cave and potentially for dewatering; and

•underground gyratory crushers. Two identical crusher stations will be located on each of the block caves, each processing 50% of the ROM feed.

15.3Commentary on Infrastructure

The QP notes:

•the Golpu Project is a greenfield site and currently does not have infrastructure to support mining operations;

•the Golpu Project as envisaged will occupy three geographical areas consisting of the mine area, an infrastructure corridor, and a coastal area. The infrastructure corridor will link the mine and coastal facilities;

•two major access roads are required to be constructed to support planned operations; prior to the completion of these roads, access will continue to use the existing Demakwa access, Link and Watut Valley roads;

•power supply will be via a power generation facility using reciprocating engines; and

•three accommodations villages will be used. The existing Wafi and Finchif construction accommodation facilities will be operational during the construction phase. Finchif will continue to be used during operations. A third facility, Fere, will be constructed, and used for both the construction and operations phases.


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16Market Studies

Section 229.601(b)(96) (16) (i-ii)

Internet based market studies were undertaken by Harmony in 2022 for gold and copper.

16.1Gold

Gold is traded in a variety of markets/exchanges both in physical form through over the counter (“OTC”) markets, bullion banks and metal exchanges etc., and through passive investments such as exchange traded funds (“ETF’s”), which are based on gold prices and units representing physical gold which may be in paper or dematerialised form. Demand is driven by the jewellery market, bar and coin, use in technology, ETF’s and other financial products, and by central banks. An overview of the gold market is given in the following sections based mainly on data from the World Gold Council and GoldHub websites.

16.1.1Market Overview

16.1.2Global Production and Supply

Gold production and supply is sourced from existing mining operations, new mines and recycling.

16.1.2.1New Mine Production

16.1.2.2Recycling

16.1.3 Global Consumption and Demand


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16.1.3.1Jewellery

16.1.3.2Investment

16.1.3.3Currency

16.1.4Gold Price

In early August 2020, the London Bullion Market Association (“LBMA”) gold price reached historical highs and remained relatively high for the rest of the year (Figure 16-1).

Forecasts as advised from various financial institutions show that gold is expected to trade in a range of USD1,652/oz - USD1,728/oz, for the period 2022 to 2025 with a long-term outlook of USD1,521/oz. Harmony uses a gold price forecast of USD1,546/oz for it planning purposes.

The forecast gold price used for the FSU (2018), and the Harmony 2021 Annual Report was USD1,200/oz. This was based on the WGJV management price assumptions which take into account analyst and broker price predictions as well as peer price projections. This is significantly lower than the gold price being used by Harmony for their other operations, namely USD1,500/oz.

16.2Copper

Copper is traded in a variety of forms on spot and contract markets, including as copper concentrate, cathode and refined product. Treatment and refining charges, documented by Platts and others tracking physical commodity markets, are paid to smelters to convert copper concentrate, representing a middle market. Copper is traded through numerous exchanges, notably the London Metal Exchange, and can also be traded through passive investments such as ETFs. An overview of the copper market is given in the following sections based mainly on data from S&P Global Market Intelligence, and other collated analyst reports.


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Figure 16-1: Graph of Annual Gold Price History – USD/oz

Figure 16-2: Graph of Annual Copper Price History – USD/lb


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16.2.1 Market Overview

The copper market is typically aligned to global economic development, with prices being closely related to global financial economic cycles. The majority of the world’s copper concentrate (concentrate) production is processed through pyro-metallurgical processes in copper smelters and refineries throughout the world. According to Wood MacKenzie, approximately 80% of all mined copper is converted into copper concentrates with the balance recovered as market ready solvent extraction / electrowinning (“SXEW”) cathodes.

The company’s Global Copper Concentrate Market to 2024 goes on to state that the main constituents of copper concentrates, typically accounting for 80-90% by weight are copper, iron and sulphur. Incomplete liberation of minerals containing these elements in the grinding stages of ore processing means that certain ‘gangue’ minerals are usually present in concentrates in the form of oxides of silicon, calcium, aluminium and magnesium. Precious metals, primarily gold and silver, are often associated with copper minerals and are thus also recovered in concentrate form. Occasionally, gold and silver can be recovered through gravity separation if they exist in their native state. Certain minerals contain undesirable elements, such as arsenic, antimony, bismuth, mercury, fluorine and chlorine that have to be removed and disposed of during the smelting and refining stages. These elements can lead to additional processing costs (penalty charges) if they exceed certain predefined levels.

16.2.2Global Production and Supply

Global copper mine production is estimated to be 21.0Mt in 2021, increasing from 20.6Mt in 2020, and from 20.4Mt in 2019 (USGS Mineral Commodity Summaries, 2021, 2022). The estimated growth in supply in 2021 reflects the restart, and ramp-up of projects, together with improved recoveries and throughput. Despite this growth in mine production, the current market balance is in deficit. Growth in the supply of mined copper from brownfield and greenfield projects in the near term (2022-2025) will address the shortage of concentrate in the market. A surplus of copper concentrate is expected from 2023, increasing to 2025. Downstream, refined copper was in a state of surplus in 2020 and has moved into deficit in 2021 (S&P Global Market Intelligence, October 2021).

In the long term, a lack of new development projects means supply will lag demand (Copper project pipeline – Project shortage to see supply lag demand post-2025, S&P Global Market Intelligence, October 2021). While recent price optimism and a global recovery from the COVID-19 pandemic, together with strong demand from renewable energy and electric vehicle markets has resulted in incentive to advance projects (S&P Global Market Intelligence, October 2021), exploration expenditure has not been focussed on new discoveries.

Key risks to realisation of the long-term supply in the market include:

•a longer period to start up from early-stage exploration activities;

•non-delivery of new supply (brownfield and greenfield) where projects remain uncommitted and do not advance successfully through construction, or budget and permitting approvals;

•declining ore grades and mine closures; and

•environmental, social or governance-related disruptions (S&P Global Market Intelligence, October, 2021).

Macroeconomic factors (exchange rates, co-product credit prices, globally traded input costs) are also uncertainties to the supply forecast.

16.2.3Global Consumption and Demand

The demand for copper concentrate is driven by China, which has emerged as the largest buyer of copper concentrate on a global basis. While Japanese and European smelters once led the market in establishing commercial terms which were often followed by others in the market, the Chinese smelters now share that role.

Smelter output, and consequently demand for copper concentrate, can be adjusted by varying utilisation rate, as well as planned and unplanned stoppages. Most smelters plan shutdowns for major maintenance every 5-10 years (depending on the smelting technology employed), with minor shutdowns taking place annually. Demand for primary concentrate will also be impacted by the availability of copper scrap, which in itself is more price elastic.


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Demand for refined copper is expected to come from growth in the market for renewable energy technologies and electric vehicles. Chinese refined copper consumption was expected to increase to 14.9mt in 2022, driven by production of electric vehicles and overall manufacturing demand as a result of infrastructure stimulus and lower copper prices (Copper CBS, S&P Global Market Intelligence Metals & Mining, 2022). Chinese demand is expected by analysts to be sustained but may decline with additional COVID-19 outbreaks. Growth in European markets is expected but muted by recession fears and weaker economic growth, a consequence of geopolitical conflict.

16.2.4Copper Price

The copper price has moderated from a peak of USD11,299.50/t in October 2021. Prices increased in early 2022 as a result of low stocks with the Russia-Ukraine conflict (S&P Global Market Intelligence, 2022). However, price declines in the mid-year were prompted by the US Fed increasing interest rates, and China’s lock-down measures. Monetary policy, a strong USD and a poor economic outlook, are expected to negatively impact copper prices in the near-term (2022, 2023, 2024). Price history is presented in Figure 16-2.

The forecast copper price used for the FSU, and in the Harmony 2021 Annual Report, was USD3.00/lb. This was based on the WGJV price assumptions which take into account analyst and broker price predictions as well as peer price projections.

16.3WGJV Concentrate Specification

The Golpu concentrate is expected to be relatively high in copper and low in impurities (Table 16-1.)

Table 16-1: Typical Concentrate Chemical Analysis


Element	Unit	Value	Comment
Major Elements
Cu	%	29.2
Au	ppm	17.0
S	%	30.4
Fe	%	39.4
Ag	ppm	30.0
Mo	ppm	32.0
Si	ppm	150.0
Other Elements
Pb	ppm	130	Typically 120–140ppm.
Zn	ppm	685
As	ppm	<10	Typically 100–700ppm, well below the smelter penalty threshold of 2,000ppm.
Sb	ppm	1.9
Bi	%	<0.002
Ni	ppm	37
Al	ppm	440	Typically 1,200–1,600ppm.
Fe	ppm	20	Well below the smelter penalty threshold of 300ppm.
Cl	%	<0.01
Mg	ppm	200	Typically 350–400ppm.
Hg	ppm	<10


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16.4Typical Concentrate Payment Terms

The current typical copper payable by a smelter is 96.5% subject to a 1.0% unit deduction for a copper content of 20–30%. At levels exceeding 30%, smelters may agree to a higher copper payable rate. However, some smelters have also sought a higher unit deduction for concentrate where the copper grade is below 24%.

For standard grade for copper concentrates (25–35% Cu), direct mine–smelter treatment charges over the past 10 years have varied from USD42–USD110 per dry metric tonne of concentrate, and refining charges from USc4.2–USc11.0/lb of payable copper. These terms are for long-term frame contracts between major producers and Asian smelters agreed on an annual calendar year basis.

Gold in concentrates would be payable by a smelter using a specified gold payable scale. Such a scale would be ratcheted and typically range from 98.25% for >60g/t Au to 90.00% for >1g/t.

Penalties are levied against deleterious elements by the smelters. These may be related to smelting difficulties or emission and waste disposal issues.

16.5WGJV Marketing Strategy

It is expected that Asian smelters will contract the Golpu concentrate as long-term feed source. The concentrate will be attractive to these smelters due to the proximity of the mine and consequently shorter transit times to give certainty of supply. The concentrate is not expected to contain deleterious elements at levels prohibitive to sale to Asian smelters.

In determining product allocation, the WGJV will need to consider market reliability, diversity and economic returns. Marketing activities would be commenced at an early stage to ensure that target smelters will incorporate the concentrate into long-term feed plans. Marketing assumptions used in the financial analysis are summarised in Table 16-2.

Table 16-2: Marketing Assumptions Used in 2018 FSU


Parameter	Units	Value
Arsenic penalty trigger	ppm	2,000.00
Arsenic penalty trigger	USD/t real	2.50
Concentrate moisture	% shipped	9.70
Ocean export freight	USD/t/wmt real	24.05
Shore-side loading cost	USD/t/wmt real	6.51
Bill of loading weight franchise deduction	%	0.25
Contracts subject to weight franchise deduction	%	50.00
Gold payable scale (10–15g/t concentrate, Au grade)	%	96.00
Gold payable scale (15–20g/t concentrate, Au grade)	%	97.00
Gold refinement charge	USD/oz real	6.00
Copper payable scale (20–32% concentrate Cu grade)	%	96.50
Copper minimum deduction	%	1.00
Copper treatment cost (TC)	USD/t real	90.00
Copper refinement cost (RC)	USD/lb real	0.09
Contracts subject to price participation	%	-


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16.6Commentary on Market Studies

The QP notes:

•market studies were conducted. The Golpu concentrate is expected to be relatively high in copper and low in impurities, and be saleable;

•Asian smelters are most likely to contract the Golpu concentrate as long-term feed source;

•forecast payability and deduction assumptions appear reasonable;

•the terms contained within any future refining agreement and sales contracts would be expected to be typical of and consistent with Australian standard industry practice, and be similar to contracts for the supply of copper concentrate elsewhere in Australia;

•no contracts are currently in place in support of the Golpu Project; and

•commodity price and exchange rate projections were agreed to by the WGJV Participants. The WGJV participants consider analyst and broker price predictions, and price projections used by peers as inputs when preparing the management pricing forecasts.

The QP is of the opinion that the marketing and commodity price information is suitable to be used in the cash flow evaluations supporting Mineral Reserve estimates.

16.7Material Contracts

No contracts are currently in place in support of the Golpu Project. Contracts will be negotiated and renewed as needed. Contract terms are expected to be within industry norms, and typical of similar contracts in PNG that the WGJV is familiar with.

Major contracts in support of development are likely to include shaft sinking, decline development, pipelines, conveyors, camp construction, port and roads. Major contracts in support of operations are likely to include; accommodations camp management; building maintenance; underground mine infrastructure development; cave establishment; road maintenance; explosives supply; ground support and consumables supply; material transport and logistics to the Port of Lae; infrastructure engineering procurement and construction management; labour training; and infrastructure construction.


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17.Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Section 229.601(b)(96) (17) (i-vii)

Various environmental (and social and cultural heritage) study programmes have been under way in and around the Project area for over 20 years. A substantial amount of baseline information and data is available for use in assessing potential environmental risks to, and impacts from, the Project.

Existing baseline information has been supplemented by a large number of additional, studies during 2016 and 2017, particularly into the nearshore and offshore marine environment in the Huon Gulf, as part of investigations into the feasibility of DSTP for tailings management for the Project. As well as marine studies on DSTP, additional studies in 2016 and 2017 have also focussed on the infrastructure corridor, commensurate with the anticipated level of environmental risk and potential impact in this area. These studies culminated in the completion of an EIS in 2018.

Additional studies are ongoing, with further studies planned to be completed prior to the commencement of construction and/or commissioning.

17.1Results of Environmental Studies

An EIS was prepared as the statutory basis for the environmental, social and cultural heritage assessment of the Golpu Development under the Environment Act 2000. The EIS was developed to address the Department of Environment and Conservation publication GL-Env/02/2004, Guideline for Conduct of Environmental Impact Assessment & Preparation of Environmental Impact Statement. The objective of the EIS was to identify potential environmental, social and cultural heritage impacts associated with the Golpu Development and set out the management measures WGJV proposes to address potential adverse impacts. The EIS was lodged with CEPA in June 2018.

The EIS provided a thorough appraisal of the Golpu Project which was used by CEPA to grant the Level 3 environment permit for the Golpu development in 2020.

The results of all the studies are too voluminous to include in this TRS and therefore the reader is directed to the EIS Report which is publicly available on the Wafi Golpu Project website.

17.2Waste and Tailings Disposal, Monitoring & Water Management

The WGJV intends to implement strategies to avoid or minimise the production of waste. Where generation of waste cannot be avoided, options to reuse or recycle wastes will be implemented where possible and disposal will be used as the last resort. Hazardous and non-hazardous materials will be managed according to a Project Environmental Management Plan. A dedicated waste management facility for the mine area, including a landfill, will be located near the Watut process plant.

Waste and tailings disposal and management is discussed in Section 15.1.1 and Section 15.1.2, respectively.

The mine water management system was designed to capture potentially contaminated water within the mine area during construction and operations, and manage, including treatment where necessary, this captured water for re-use or disposal. As a general principle, clean water will be diverted around surface works and, where practicable, water will be intercepted (by dewatering) before it can enter the block cave zone or, prevented from entry into the declines, by shotcreting or grouting. This is intended to minimise the volume of water requiring management during construction and operations. Water usage is discussed in Section 15.1.4.

An environmental monitoring programme is proposed to be implemented to monitor and measure, on a regular basis, the environmental performance of Golpu Development activities. Monitoring is proposed to cover each environmental aspect detailed in the Project Environmental Management Plan, including:

•air quality and greenhouse gas;

•noise and vibration;

•native vegetation clearance and rehabilitation;

•prevalence and control of weeds, pests and pathogens (terrestrial and aquatic);


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•aquatic and terrestrial flora and fauna;

•seepage from WRSFs (for early identification of AMD);

•groundwater;

•discharges into watercourses;

•surface water and sediment quality in impacted and control catchments;

•discharges into the marine environment, particularly associated with DSTP;

•solid waste management; and

•any further monitoring required by environment permit conditions.

17.3Permitting and Licences

The existing environmental and mining permits and licenses, as well as those in application, are summarised in the approvals register in Table 17-1.

Table 17-1: Approvals Register


Permit / Licence			Status
Exploration Licence			EL 440 - current; EL 1105 - current.
Special Mining Lease 10			Application submitted in August 2016.
Lease for Mining Purpose (LMP100, LMP104, LMP105)			Application submitted August 2016. Revisions and new applications submitted Q1 2018.
Mining Easement (ME91, ME92, ME93, ME94, ME96, ME97)			Application submitted August 2016. Revisions and new applications submitted Q1 2018.
EIR			Submitted May 2017, approved June 2017.
EIS			Submitted 2018. Approved November 2020.
Level 3 Environment Permit EP-L3 (767)			Approved December 2020. Valid for 50 years.
Environmental Management Plan			Submitted. Approved in EPL3 (767)

17.3.1Permits Required for Development

The leases or permits required to develop and operate the Golpu Project are presented in Table 3-2 and summarised below:

•SML 10. For Block cave mines, Watut declines portal terrace, process plant terrace, Watut process plant, Nambonga decline portal terrace, WRSFs, Miapilli clay borrow pit, water treatment facilities, sedimentation dams, raw water dam, explosives magazine facilities, waste management facility, concrete batch plants, electrical substations, workshops and administration buildings, Fere accommodation facility;

•LMP 100. For Finchif construction accommodation facility and power generation facilities;

•LMP 104. For Port facilities area (including concentrate filtration plant);

•LMP 105. For outfall area;


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•ME 91. For Infrastructure corridor pipelines from the northern boundary of the SML application to Lae for pipelines and power transmission lines from the power generation facilities to the northern boundary of the SML;

•ME 92. For Mine access road;

•ME 93. For northern access road;

•ME 94. For wastewater discharge pipeline (for mine dewatering) to the Watut River and co-located raw water make-up pipeline;

•ME 96. For terrestrial tailings pipeline – Lae to Wagang; and

•ME 97. For component of outfall system, specifically the seawater intake and deep sea tailings placement outfall pipelines.

17.3.2Memorandum of Understanding with Government of PNG

On December 11, 2018, the WGJV Participants signed a memorandum of understanding (MOU) with the State of PNG, affirming a mutual intention to proceed with the development of the Wafi–Golpu mining project. The MOU provided a framework of key terms to be included in the Mining Development Contract, including a provision for stability to underpin the significant long-term investment required to develop and operate the project.

The validity of the MOU was subsequently challenged by the Governor of Morobe Province in the National Court in Lae, Papua New Guinea, and a stay order was granted. The stay order prevented the WGJV Participants from engaging in discussions with the State of PNG. Most activities in furtherance of project permitting ceased as a result, although discussions continued with the independent review consultants engaged by the State of PNG to review the Golpu Development EIS.

On February 11, 2020, the National Court dismissed the proceeding and the stay order. This followed the PNG Minister for Mining advising the WGJV Participants that the State of PNG had withdrawn its support for the MOU. The dismissal allows the WGJV Participants to re-engage with the State over Golpu Development permitting and progressing discussions on the grant of the Special Mining Lease. The Governor of the Morobe Province has appealed to the Supreme Court of PNG against the dismissal of the proceeding. The Supreme Court is yet to hand down a decision on the appeal by the Governor on the discontinuance of the MOU (as at June 2022).

On 4 March 2021, the Morobe Governor and Provincial Government lodged a Judicial Review with respect to the grant of the Environment Permit that went before the PNG National Court in June 2021. The legal proceedings name the Minister for Environment and Climate Change, Managing Director of the Conservation and Environment Protection Authority, Minister for Mining and the Independent State of PNG in the suit. The participants in the Wafi-Golpu Joint Venture (Wafi Mining Limited and Newcrest PNG 2 Limited) are not defendants to the proceeding.

A further hearing of the Judicial Review proceedings in September 2021 resulted in a stay order being issued on the Environment Permit until further information could be supplied to the court. An injunction from the Supreme Court blocking this ruling was then obtained.

17.4Local Stakeholder Plans and Agreements

The stakeholder engagement programme commenced in 2008 and the WGJV has worked closely with its many stakeholders to build relationships. In implementing the programme and building these relationships, the WGJV has placed an emphasis on local communities within the Project area, while also considering the interests of the broader Project stakeholder set. Stakeholder engagement is integral to advancing the Golpu Development. The WGJV believes that understanding and responding to local community concerns and grievances and respecting local customs is particularly important to Project success. Stakeholder engagement is planned to continue for the life of the Project.


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The WGJV’s approach to consultation was informed by International Finance Corporation (“IFC”) Performance Standards (IFC, 2012) and the International Council of Mining and Minerals (“ICMM”) Sustainable Development Framework (ICMM, 2015).

Across the Project area, the majority of stakeholder engagement activities with the local communities are overseen, coordinated and performed by the WGJV Community Affairs and Lands team. Facilitating local community liaison and engagement is the primary function of this team, the majority of members of which are Papua New Guinean, and fluent in the languages spoken by the communities within the Project area. This enables the team to connect culturally with the communities, resulting in more effective engagement.

At a corporate level, senior managers and executives maintain focused and formal engagement with representatives of the State of PNG, local and provincial-level governments and third-parties in relation to matters such as port access, power supply, transport, and permitting and compliance.

Specialist studies conducted by the WGJV (e.g., socioeconomic studies involving household surveys, key informant interviews and focus groups) have also provided opportunities for engagement.

In March 2018, the WGJV conducted a series of information sessions across the Golpu Development area (commonly referred to in PNG as a roadshow). Information sessions were held at Lae, Wagang, the Wampar LLG office (in Nadzab), Zifasing, and at the respective community halls of the Yanta, Babuaf and Hengambu. Roadshow sessions were attended by WGJV staff, EIS specialists and PNG government representatives and overseen by an independent Free, Prior and Informed Consent advisor. The latest project design, proposed project schedule, approvals process and the consultation programme were presented. Attendees were given opportunities to ask questions and make comments. Questions and comments sought to understand the project description, project benefits, DSTP impacts and socioeconomic impacts.

17.5Mine Closure Plans

At the completion of mining and processing, the mine and associated infrastructure will be closed. The closure phase includes progressive rehabilitation, decommissioning, rehabilitation post-closure monitoring and maintenance, and relinquishment.

A Conceptual Closure and Rehabilitation Plan was developed with the following key post-closure environmental objectives:

•mitigate generation and release of acidic and suspended solids discharges to the downstream receiving environment;

•rehabilitate the project area to self-sustaining, stable landforms; and

•develop and meet post-closure land use objectives to be agreed with the regulator in consultation with stakeholders.

Key social objectives of the Conceptual Closure and Rehabilitation Plan include minimising the reliance on the mine by the local communities to enable the transition to sustainable alternative industries and economic activities and to promote alternate employment opportunities.

A detailed closure schedule for implementation will be developed during the operational stage of the mine as the closure planning progresses.

An overall, post-production closure cost estimate, at the Golpu Development level, of approximately USD75m was prepared for the cash flow analysis in support of Mineral Reserves for this Report. The cost estimate is based on the construction and operations plan assumptions made in the 2018 Feasibility Study update, current PNG guidelines for closure planning, and the closure and rehabilitation steps outlined in this sub-section.


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17.6Status of Issues Related to Environmental Compliance, Permitting, and Local Individuals Or Groups

As a result of Golpu being a development project, the mine is not yet required to meet compliance standards, except for that of the Environment Permit.

The status of the permitting is included in the relevant sections above.

17.7Local Procurement and Hiring

A key focus for the WGJV will be the employment of appropriately qualified PNG citizens, with priority given, where possible, to local landowners in the area. Similarly, local procurement will be prioritised where possible.

17.8Commentary on Environmental Studies, Permitting and Plans, Negotiations, or Agreements with Local Individuals or Groups

Based on assessments and studies undertaken for this Feasibility Study Update and EIS, it is considered that the understanding of the baseline environment is comprehensive and appropriate for this stage of Project development. The assessment of environment risks and impacts would benefit from additional studies being undertaken prior to construction.

The QP notes:

•baseline and supporting studies were completed for the three planned infrastructure areas. Additional studies are ongoing, and/or planned to be completed prior to the commencement of construction and/or commissioning;

•temporary and coarse ore stockpiles will be required;

•waste from decline construction will be stored in purpose built WRSFs. Once the underground crusher is installed, all rock will be transferred to the underground crusher and delivered to the surface as part of the ore stream for processing. There will effectively be no waste rock generated during operations;

•the WGJV adopted DSTP as the preferred tailing management option for the Golpu Development;

•during operations, treated mine wastewater will be used as the primary water source for ore processing and as the transport media for concentrate and tailings;

•permits that need to be obtained include the following lease types: SML, Mining Lease, Mining Easements and Leases for Mining Purposes;

•apart from the Mining Act 1992 and Environment Act 2000, the Golpu Development must comply with aspects of other forms of legislation. Additional legislation may also be requested to be complied with during the Golpu Development review process; and

•stakeholder engagement will continue throughout the project life, although the frequency and nature of engagement will vary according to the specific stakeholder and the actions contemplated.


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18Capital and Operating Costs

Section 229.601(b)(96) (18) (i-ii)

Capital and operating cost estimates are based on the FSU and are presented on a 100% basis. Cost estimates were reviewed as at 30 June 2020 and remain current.

Pre-feasibility studies must have a project scope definition accuracy level of ±25%. The overall capital cost estimate meets prefeasibility accuracy levels. The mine to port area, surface services and infrastructure, BC44 and BC42, underground services, and infrastructure areas are designed to a feasibility level of confidence. The BC40 cave footprint and thus extraction level layout, are designed at a pre-feasibility confidence level. The infrastructure for BC40 is identical to that of BC44 and BC42 and is at a feasibility level of confidence.

18.1Capital Costs

The capital cost of the Golpu Project is defined as the expenditure required for engineering, designing, procuring, fabricating, delivering, constructing and commissioning the scope as defined by the 2018 Feasibility Study Update. This includes all direct (equipment and materials purchases, installation costs, contractors fixed and time related disbursements, transportation costs, capital spares and commissioning assistance), and indirect costs (WGJV team, site support, construction management fees and contingency) to deliver a fully operational mine.

The WGJV engaged a number of specialist consultants and estimators to identify the scope and produce corresponding capital cost estimates for their areas of particular expertise.

The LOM capital cost is USD5,382m (real December 2017 terms; 100% basis), and includes USD200m of capitalised net revenue, which is a Newcrest accounting standard for production revenue delivered before commercial production is declared (Table 18-1). Commercial production will be when the cave has reached its hydraulic radius and is “self-sustaining” for forward production.

Table 18-1: Summary capital Cost Estimate for Golpu


Area	LOM Total (USDm)	Execution Capital (USDm)	Expansionary Capital (USDm)
Underground mining	2,140	819	1,321
Treatment	774	695	79
Shared Services and Infrastructure	283	210	73
Regional Infrastructure	219	219	0
Site Support Services	148	117	31
Project Delivery Management	606	462	144
Other Capitalised Costs	225	187	38
Provisions	493	315	178
Capitalised Revenue	-200	-200	0
Total LOM Capital Cost (excluding sustaining capital)	4,688	2,824	1,864
Sustaining Capital	693	0	693
Note: Expansionary capital includes all major development capital expenditure post commercial production. Sustaining capital is defined as routine stay-in-business capital expenditure estimated as 2.5% of the asset replacement value ("ARV").

18.2Operating Costs

The operating cost estimate is derived on a 100% share basis and is expressed in real December 2017 USD terms. Where applicable, prices/rates obtained in other currencies were converted to USD using the rates of exchange applicable to the base date of the estimate. The exchange rates used in the development of the operating cost estimate are consistent with the exchange rates applied in development of the capital cost estimate. The estimate accuracy is ±10% to 15%. Other than escalating costs to the specified base date, no allowance was made for real escalation (i.e., above inflation) within the operating cost estimate to forecast future increases or decreases in rates or prices.

The operating cost estimate was developed in monthly increments and was based on first principles, being unit consumption rates and unit prices. Prices were quantified as far as possible and where practicable by quotations, with some values escalated from prior estimates in the Feasibility Study (2016).


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Table 18-2: Summary Operating Cost Estimate for Golpu


Operating Cost Element			USD/t Milled
Underground mining
Ventilation & Refrigeration			1.27
Production			0.99
Conveying			0.69
Engineering Maintenance & Services			0.56
Dewatering			0.34
Crushing			0.15
Technical Services			0.12
Administration			0.04
Subtotal Underground Mining			4.16
Treatment
Process Plant Operations			5.04
Process Plant Maintenance			0.91
Port Filtration Plant			0.72
DSTP 0.47			0.47
Water Treatment Plant			0.25
Concentrate Pipeline			0.01
Subtotal Treatment			7.40
Infrastructure
Power Generation Plant			1.34
Infrastructure (roads and buildings)			0.28
Services (power and waste)			0.16
Subtotal Infrastructure			1.78
Site Support Services
Community Affairs and Land			0.89
Environmental			0.44
Commercial			0.92
Occupational Health and Safety (OH&S)			0.47
Training			0.08
Camp Services			0.40
Information Technology (IT)			0.33
Travel			0.18
Supply and Logistics			0.19
Human Resources (HR)			0.09
Subtotal Site Support Services			3.99
Total			17.33
Notes: Total is inclusive of cost allocations for closure.

18.3Comment on Capital and Operating Costs

The QP notes:

•the life of mine capital cost is US5,382m (real Dec 2017 terms), and includes USD200m of capitalised net revenue; and

•operating costs include mining costs of USD4.16/t milled, treatment costs of USD7.40/t milled, infrastructure costs of USD1.78/t milled, and site support services costs of USD3.99/t milled, for an overall average operating cost over the LOM of USD17.33/t milled.


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19.Economic Analysis

Section 229.601(b)(96) (19) (i-iv)

This economic analysis includes forward-looking statements. Forward-looking statements are based on WGJV’s good faith assumptions as to the geological, technical, engineering, market, financial and regulatory factors that will exist and affect the Project’s development and operations in the future. The WGJV does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of the WGJV. Readers are cautioned not to place undue reliance on forward looking statements.

19.1Key Economic Assumptions and Parameters

The Golpu Project was valued using a discounted cash flow (“DCF”) approach. Estimates were prepared for all the individual elements of cash revenue and cash expenditures.

Capital cost estimates were prepared for initial development and construction of the project, in addition to ongoing operations (sustaining capital). The year of the SML grant was defined as the first year of initial capital expenditure, and cash flows are assumed to occur in the middle of each period.

The resulting net annual cash flows are discounted back to the date of valuation of start-of-year 1 July 2019, because the actual starting calendar year has not been determined. A discount rate of 8.50% was used. Golpu Project economics are presented on a 100% basis. Harmony holds a 50% interest in the project.

Input assumptions were reviewed as at 30 June 2020 and are considered acceptable for public disclosure and remain current.

19.1.1Metallurgical Recoveries

Over the LOM, copper recoveries will average 95% and gold recoveries will average 68%. Concentrate grade average over the life-of-mine is projected to be 29% Cu and 15g/t Au.

19.1.2Metal Prices

The Feasibility Study Update (2018) assumes the following metal prices as:

•copper: USD3.00/lb; and

•gold: USD1,200/oz.

19.1.3Exchange Rate

The exchange rate assumptions are presented in Table 19-1.

Table 19-1: Exchange Rate Assumptions


Currency	Base Currency	FY19	FY20	FY21	FY22	FY23	FY24	FY25
United States Dollar (USD)	USD	1.000	1.000	1.000	1.000	1.000	1.000	1.000
Australian Dollar (AD)	USD	0.750	0.750	0.750	0.750	0.750	0.750	0.750
Euro (€)	USD	1.110	1.110	1.110	1.110	1.110	1.110	1.110
PNG Kina (PGK)	USD	0.320	0.320	0.320	0.320	0.320	0.320	0.320
New Zealand Dollar (NZD)	USD	0.700	0.700	0.700	0.700	0.700	0.700	0.700
South African Rans (ZAR)	USD	0.077	0.077	0.077	0.077	0.077	0.077	0.077

19.1.4Royalties

Royalty provisions in the financial model include:

•royalty: 2% of the net proceeds of sale of minerals (calculated as NSR or FOB export value, whichever is appropriate); and

•production levy: 0.50% of gross revenue from all mining sales.


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19.1.5Working Capital

The cash flow model includes an allowance of 21 days for accounts receivable and 30 days for accounts payable.

19.1.6Taxes

The economic analysis reflects the following significant changes to the Mining Taxation Regime announced by the PNG Government in November 2016:

•introduction of a resources rent tax termed the Additional Profits Tax (APT). The APT is levied at the 30% corporate income rate on profits above an allowed capital return threshold of 15% per annum (nominal terms) and is thus triggered once a 15% rate of return per annum (nominal) was achieved on prior invested capital. Changes in parameters that result in higher profits have the effect of consuming accumulated capital balance (and 15% per annum uplift rate) much faster, triggering the APT;

•an increase to the Foreign Contractor Withholding Tax (“FCWT”) rate from 12% to 15%; and

•suspension of the double deduction for exploration expenditure provided under section 155N of the Income Tax Act, with no additions to this balance post 1 January 2017.

and assumes (for valuation purposes only) that all cash flows are held in-country by the WGJV (i.e., not repatriated to shareholders).

For the purpose of calculating the tax payable, all of the extractive activities and associated infrastructure were assumed to be undertaken under a single SML. This method is considered adequate for the 2018 Feasibility Study Update estimates.

In PNG, tax is paid on a company basis. All expenditure, including execution capital expenditure up until first production, was capitalised as allowable capital expenditure (ACE) and depreciated at a rate of 25% using the diminishing value method, as per PNG tax law.

Total historical expenditure (actual and forecast) through to the anticipated SML grant is estimated to be USD867m on a 100% basis.

19.1.7Closure Costs and Salvage Value

No salvage value was allocated.

Conceptual mine closure costs are based on an estimated total closure cost for the operation consisting of an annual spend during operations and a final closure cost incurred over a period of 10 years, starting in the final year of production. This cost is included in operating costs. The conceptual post-production closure costs are estimated at USD75m.

18.1.8Financing

The base case economic analysis assumes 100% equity financing and is reported on a 100% project ownership basis. Newcrest holds an 50% interest in the WGJV, and Harmony holds the remaining 50% interest.

19.1.9Inflation

The base case economic analysis assumes constant prices. A 2% USD inflation rate was used for calculation of tax in nominal terms. Capital and operating costs are based on Q4 2017 USD.


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19.1.10 Summary

In summary, the key financial metrics is presented in Table 19-2.

Table 19-2: Key Financial Metrics


Area	Units	Value
First ore (first BC44 drawbell fired)	Years post SML grant	5.50
Treatment plant start	Years post SML grant	4.75
BC44 steady state production	Years post SML grant	9.50
BC42 steady state production	Years post SML grant	14.80
BC40 steady state production	Years post SML grant	21.70
Commercial production period	Years post commercial production	26
Ore mined	Mt	376
Cu grade	%	1.27
Au grade	g/y	0.90
Cu metal produced	kt	4,520
Au metal produced	koz	7,445
Cu metal produced	kT/a average	161
Au metal produced	koz/a average	266
Project execution capital (to commercial production)	USDm real	2,825
Project expansionary capital (LOM, excl. sustaining)	USDm real	1,864
Sustaining capital (post commercial production)1	USDm real	693
Total project capital (LOM)	USDm real	5,382
Total operating cost (real)	USD/t ore milled LOM	17.33
Cash cost (including gold credit)2	USD/lb average	0.26
Total production cost 3	USD/lb average	0.81
Notes:
1. Sustaining capital defined as routine stay in business capital expenditure estimated as 2.5% of the asset value.
2. Operating costs + treatment charges/refining charges (TC/RC) + realisation expenses less gross gold revenue/copper pounds.
3. Operating costs + TC/RC + realisation expenses + total LOM capital (including capitalised revenue) less gross gold revenue/copper pounds. Figures were rounded and may not sum due to rounding.

19.2Economic Analysis

The project development strategy involves a staged construction of the mine starting with ramping-up production as fast as possible to extract the high-grade material from BC44 to maximise free cash flows and help fund ongoing development of BC42 and BC40. Block caves 44 and 42 are also staged to focus initially on the high-grade orebody zones then expand into the lower (relatively) grade areas with BC40 and mining the available Mineral Reserves to economic cut-off, thereby sustaining a high production rate of 16.84Mt/a, staging mine development capital, optimising Mineral Reserve recovery, managing capital at risk, and improving value.

The cash flow is presented in Table 19-3.


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Table 19-3: Cash Flow for Golpu Project


Item	Units	Total LOM	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10	Yr 11	Yr 12	Yr 13	Yr 14
Economic Parameters
Gold Price	USD/oz	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200
Copper Price	USD/lb	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00
USD/PGK	USD/PGK	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32
USD/AD	USD/AD	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75
USD/ZAR	USD/ZAR	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08
Operating Summary
Total Material Moved	kt	375,640	-	-	-	41	641	1,317	3,492	9,303	14,435	16,059	17,767	10,664	8,386	14,277
Ore Processed	kt	375,640	-	-	-	-	384	1,615	3,492	9,303	14,435	16,059	16,840	11,591	8,386	14,277
Gold Grade - Milled	g/t	0.90	-	-	-	-	0.74	1.26	1.62	1.64	1.20	0.79	0.96	1.06	1.68	1.64
Copper Grade	%	1.27	-	-	-	-	1.14	1.88	2.37	2.38	1.86	1.29	1.59	1.64	1.99	2.03
Metal Production
Gold Production	koz	7,445	-	-	-	-	6	49	141	378	415	299	386	298	360	577
Copper Production	kt	4,520	-	-	-	-	4	29	79	212	257	195	254	180	158	274
Gold Equivalent Production	koz	32,359	-	-	-	-	29	209	577	1,548	1,830	1,373	1,783	1,290	1,231	2,089
Cash Costs	USD/lb Cu	0.26	-	-	-	-	0.70	0.21	0.51	0.01	0.07	0.29	0.16	0.20	-0.10	-0.20
Cash Flow Summary
Gross Revenue	USDm	38,545	-	-	-	-	-	-	693	1,858	2,197	1,648	2,140	1,548	1,477	2,507
- Realisation Costs	USDm	4,956	-	-	-	-	-	-	85	228	278	216	279	197	176	306
- Site Operating Costs	USDm	6,433	-	-	-	-	-	-	172	231	261	269	275	242	223	262
- Cash Payments for Tax	USDm	8,542	-	-	-	-	-	-	-	133	273	164	329	218	235	511
- Net Working Capital	USDm	-	-12	-21	-6	-48	25	59	6	54	16	-35	34	-23	2	47
- Rehabilitation Payments	USDm	75	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Operating Cash Flow	USDm	18,540	12	21	6	48	-25	-59	430	1,213	1,369	1,035	1,223	914	841	1,382
- Project Capital	USDm	2,825	145	395	471	1,050	741	23	-	-	-	-	-	-	-	-
- Sustaining Capital	USDm	2,557	-	-	-	-	-	-	206	209	185	264	140	92	56	79
Free Cash Flow	USDm	13,157	-133	-374	-465	-1,003	-766	-82	224	1,004	1,184	770	1,082	821	786	1,302


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Item	Units	Total LOM	Yr 15	Yr 16	Yr 17	Yr 18	Yr 19	Yr 20	Yr 21	Yr 22	Yr 23	Yr 24	Yr 25	Yr 26	Yr 27	Yr 28
Economic Parameters
Gold Price	USD/oz	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200
Copper Price	USD/lb	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00
USD/PGK	USD/PGK	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32
USD/AD	USD/AD	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75
USD/ZAR	USD/ZAR	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08
Operating Summary
Total Material Moved	kt	375,640	16,071	17,558	17,802	16,536	4,555	11,457	14,945	16,312	16,835	16,799	16,840	16,886	16,835	16,799
Ore Processed	kt	375,640	16,071	16,840	16,840	16,840	5,931	11,457	14,945	16,312	16,835	16,799	16,840	16,840	16,840	16,840
Gold Grade - Milled	g/t	0.90	1.14	0.79	0.67	0.64	1.05	1.29	1.18	0.90	0.82	0.87	0.88	0.82	0.76	0.70
Copper Grade	%	1.27	1.62	1.24	1.11	1.08	1.30	1.47	1.39	1.17	1.09	1.15	1.19	1.12	1.05	0.99
Metal Production
Gold Production	koz	7,445	400	267	221	211	128	322	382	318	300	319	319	284	256	234
Copper Production	kt	4,520	246	197	176	171	73	159	197	181	173	182	190	179	168	158
Gold Equivalent Production	koz	32,359	1,755	1,352	1,190	1,155	529	1,197	1,466	1,315	1,253	1,322	1,365	1,268	1,180	1,104
Cash Costs	USD/lb Cu	0.26	0.13	0.39	0.51	0.54	0.74	0.07	0.04	0.20	0.23	0.19	0.20	0.29	0.36	0.42
Cash Flow Summary
Gross Revenue	USDm	38,545	2,106	1,623	1,428	1,386	635	1,436	1,759	1,578	1,504	1,587	1,638	1,521	1,416	1,325
- Realisation Costs	USDm	4,956	274	216	192	186	81	179	221	201	192	203	210	200	187	175
- Site Operating Costs	USDm	6,433	273	273	271	271	192	231	253	258	256	255	257	254	254	251
- Cash Payments for Tax	USDm	8,542	404	278	230	223	61	279	612	536	509	551	574	523	477	439
- Net Working Capital	USDm	-	-28	-29	-7	-1	-24	36	17	-8	-3	5	2	-6	-5	-4
- Rehabilitation Payments	USDm	75	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Operating Cash Flow	USDm	18,540	1,183	885	742	707	324	710	656	591	550	574	595	550	504	464
- Project Capital	USDm	2,825	-	-	-	-	-	-	-	-	-	-	-	-	-	-
- Sustaining Capital	USDm	2,557	153	209	180	164	80	92	62	47	41	35	36	34	35	34
Free Cash Flow	USDm	13,157	1,029	676	562	544	244	619	594	544	509	539	559	516	469	430


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Item	Units	Total LOM	Yr 29	Yr 30	Yr 31	Yr 32	Yr 33	Yr 34	Yr 35	Yr 36	Yr 37	Yr 38	Yr 39	Yr 40	Yr 41	Yr 42
Economic Parameters
Gold Price	USD/oz	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200	1,200
Copper Price	USD/lb	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00	3.00
USD/PGK	USD/PGK	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32	0.32
USD/AD	USD/AD	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75	0.75
USD/ZAR	USD/ZAR	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08
Operating Summary
Total Material Moved	kt	375,640	16,840	16,886	16,556	12,747	-	-	-	-	-	-	-	-	-	-
Ore Processed	kt	375,640	16,840	16,840	16,602	12,747	-	-	-	-	-	-	-	-	-	-
Gold Grade - Milled	g/t	0.90	0.62	0.52	0.42	0.34	-	-	-	-	-	-	-	-	-	-
Copper Grade	%	1.27	0.91	0.79	0.64	0.50	-	-	-	-	-	-	-	-	-	-
Metal Production
Gold Production	koz	7,445	203	166	129	77	-	-	-	-	-	-	-	-	-	-
Copper Production	kt	4,520	145	126	100	60	-	-	-	-	-	-	-	-	-	-
Gold Equivalent Production	koz	32,359	1,000	861	678	409	-	-	-	-	-	-	-	-	-	-
Cash Costs	USD/lb Cu	0.26	0.52	0.68	0.91	1.43	-	-	-	-	-	-	-	-	-	-
Cash Flow Summary
Gross Revenue	USDm	38,545	1,200	1,033	814	491	-	-	-	-	-	-	-	-	-	-
- Realisation Costs	USDm	4,956	159	138	110	67	-	-	-	-	-	-	-	-	-	-
- Site Operating Costs	USDm	6,433	250	249	244	208	-	-	-	-	-	-	-	-	-	-
- Cash Payments for Tax	USDm	8,542	384	310	212	79	-	-	-	-	-	-	-	-	-	-
- Net Working Capital	USDm	-	-6	-8	-11	-13	-5	-	-	-	-	-	-	-	-	-
- Rehabilitation Payments	USDm	75	-	-	-	8	8	8	8	8	8	8	8	8	8	-
Operating Cash Flow	USDm	18,540	413	343	259	142	-2	-8	-8	-8	-8	-8	-8	-8	-8	-1
- Project Capital	USDm	2,825	-	-	-	-	-	-	-	-	-	-	-	-	-	-
- Sustaining Capital	USDm	2,557	35	30	30	27	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	USDm	13,157	377	314	228	116	-2	-8	-8	-8	-8	-8	-8	-8	-8	-1


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19.3Sensitivity Analysis

A deterministic point-estimate sensitivity analysis was conducted on each of the key project variables and value drivers. The sensitivity analysis reflects the changes in IRR (%) and NPV (USDm) for the corresponding individual movement in each factor. The sensitivity analyses results using IRR and NPV metrics are shown in Figure 19-1 and Figure 19-2 ,respectively.

The Golpu Project NPV is most sensitive to changes in the copper price, less sensitive to changes in the copper grade, capital costs, gold price, and gold grade, and least sensitive to changes in operating costs.

19.4QP Comments

The QP notes:

•the economic analysis is presented on a 100% basis. Harmony holds a 50% interest in the WGJV;

•the IRR is forecast to be 18.2%, and the projected NPV is USD2,604m. The payback period is estimated at nine and a half years; and

•the Golpu Project is most sensitive to changes in the copper price, less sensitive to changes in the copper grade, capital costs, gold price, and gold grade, and least sensitive to changes in operating costs.


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Figure 19-1: Graph of Sensitivity of IRR
Source: Newcrest, 2019
Figure 19-2: Graph of Sensitivity of NPV
Source: Newcrest, 2019


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20.Adjacent properties

Section 229.601(b)(96) (20) (i-iv)

This section is not relevant to this TRS.

21.Other Relevant Data and Information

Section 229.601(b)(96) (21)

This section is not relevant to this TRS.

22.Interpretation and Conclusions

Section 229.601(b)(96) (22)

The QPs note the following interpretations and conclusions in their respective areas of expertise, based on the review of data available for this TRS.

22.1Mineral Tenure

Information from legal experts and Harmony’s in-house experts support that the tenure held is valid and sufficient to support a declaration of Mineral Resources and Mineral Reserves.

If the State of PNG chooses to take-up its full 30% interest, the interest of each of Wafi Mining and Newcrest PNG2 will become 35%.

The WGJV Participants applied for an SML and ancillary tenements (including Leases for Mining Purposes and Mining Easements) in late 2016, covering the proposed Golpu Project facilities and infrastructure as they were understood at the time. Amendments to these tenement applications were made in March 2018, where the location and/or nature of facilities and infrastructure was refined through the 2018 FSU. The grant of the SML and related ancillary tenements remains subject to the completion of Mining Act 1992 and Environment Act 2000 processes.

To the extent known to the QP, there are no other significant factors and risks known to the WGJV and Harmony that may affect access, title, or the right or ability to perform work on the Project that are not discussed in this TRS.

22.2Geology and Mineralisation

The deposits discovered to date in the Project area are considered by the MGJV to be representative of a number of mineralisation models, including porphyry copper– gold (Golpu and Nambonga) and high-sulphidation, and low-sulphidation epithermal systems (Wafi).

The understanding of the Golpu deposit settings, lithologies, and geological, structural, and alteration controls on mineralisation is sufficient to support estimation of Mineral Resources and Mineral Reserves. The understanding of the Wafi and Nambonga deposit settings, lithologies, and geological, structural, and alteration controls on mineralisation is sufficient to support estimation of Mineral Resources. The mineralisation style and setting are well understood and can support declaration of Mineral Resources (Golpu, Wafi and Nambonga) and Mineral Reserves (Golpu).

22.3Exploration, Drilling and Analytical Data Collection in Support of Mineral Resource Estimation

The exploration programmes completed to date are appropriate for the style of the deposits in the Project area.

Sampling methods are acceptable for Mineral Resource estimation. Sample preparation, analysis and security are generally performed in accordance with exploration best practices and industry standards. The quantity and quality of the lithological, geotechnical, collar and down-hole survey data collected during the CRAE, Harmony, and WGJV exploration and delineation drilling programmes are sufficient to support Mineral Resource estimation. No material factors were identified with the data collection from the drill programmes that could significantly affect Mineral Resource estimation.


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22.4Metallurgical Testwork

Metallurgical testwork and associated analytical procedures were appropriate to the mineralisation type, appropriate to establish the optimal processing routes, and were performed using samples that are typical of the mineralisation styles found within the Golpu and Wafi deposits. No metallurgical testwork was conducted on Nambonga material.

Samples selected for testing were representative of the various types and styles of mineralisation. Samples were selected from a range of depths within the deposits. Sufficient samples were taken so that tests were performed on sufficient sample mass.

Recovery factors estimated are based on appropriate metallurgical testwork and are appropriate to the mineralisation types and the selected process routes for the Golpu and Wafi deposits. Recoveries are estimated for the Nambonga deposit using Golpu as an analogue.

There are no known deleterious elements that would affect Golpu concentrate marketability. There are no known deleterious elements that would affect marketability of doré produced from the Wafi deposit. There is no information as to whether any deleterious elements are present at Nambonga, since no deposit specific tests were conducted.

22.5Mineral Resource Estimates

Areas of uncertainty that may materially impact the Mineral Resource estimates include: changes to long-term gold and copper price assumptions; assumptions that silver and molybdenum can be recovered with minor circuit modifications or concentrate contract negotiations (Golpu); changes in local interpretations of mineralisation geometry and continuity of mineralised zones; changes to geological shape and continuity assumptions; changes to metallurgical recovery assumptions; changes to the operating cut-off assumptions for assumed block caving operations (Golpu and Nambonga); changes to the input assumptions used to derive the conceptual underground outlines used to constrain the Golpu and Nambonga estimates; changes to the input assumptions used to derive the conceptual pit shell used to constrain the Wafi estimate; changes to the NSR values used to constrain the Golpu estimate; changes to the cut-off grades used to constrain the Wafi and Nambonga estimates; variations in geotechnical, hydrogeological and mining assumptions; and changes to environmental, permitting and social license assumptions.

There is upside potential for the estimates if mineralisation that is currently classified as Inferred can be upgraded to higher-confidence Mineral Resource categories.

22.6Mineral Reserve Estimates

Mineral Reserves were estimated assuming conventional block caving methods. Mineral Resources were converted to Mineral Reserves using a detailed mine plan, an engineering analysis, and consideration of appropriate modifying factors.

Modifying factors include the consideration of dilution and ore losses, underground mining methods, geotechnical and hydrological considerations, metallurgical recoveries, permitting and infrastructure requirements.

Areas of uncertainty that may materially impact the Mineral Reserve estimates include: changes to long-term gold and copper price assumptions; changes to exchange rate assumptions; changes to metallurgical recovery assumptions; changes to the input assumptions used to derive the cave outlines and the mine plan that is based on those cave designs; changes to operating, and capital assumptions used, including changes to input cost assumptions such as consumables, labour costs, royalty and taxation rates; variations in geotechnical, mining, dilution and processing recovery assumptions; including changes to designs as a result of changes to


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geotechnical, hydrogeological, and engineering data used; changes to the shut-off criteria used to constrain the estimates; changes to the assumed permitting and regulatory environment under which the mine plan was developed; ability to obtain mining permits, including timing for finalisation of the SML; ability to obtain agreements to land under customary ownership; ability to permit deep sea tailings placement; ability to obtain operations certificates in support of mine plans; and ability to obtain and maintain social and environmental license to operate.

Factors that are risk-specific to block cave operations, and which may affect the Mineral Reserves include: inrush of water into the underground workings including decline, cave levels and infrastructure areas; poorer rock mass quality and quantity than interpreted; inability to achieve planned decline development rates having impact on schedule and cost; incorrect estimation of cave propagation potentially leading to air blast; and damage to mine workings due to a seismic event.

22.7Mine Plan

Mining operations are assumed to be conducted year-round. The mine plans are based on the current knowledge of geotechnical, hydrological, mining and processing information. Due to high surface ambient temperatures and humidity, and the depth of the mine, considerable ventilation and cooling capacity will be required to be installed to ensure the health and safety of mine workers. Underground operations will use conventional block cave underground mining methods and equipment fleets.

The peak annual cave production is 16.84Mt/a with development entering the ore stream being additive to the cave production resulting in a peak production of 17.8Mt in Year 17. It is proposed that the first block cave, BC44, will be situated at 4,400mRL. The second block cave, BC42, will be situated at 4,200mRL. The third block cave, BC40, is proposed to be situated at 4,000mRL. The first two block caves are expected to be mined for seven and nine years respectively during the first 14 years of the mine life. The third block cave, BC40, proposed to be situated at 4,000mRL, is expected to be mined for 16 years.

The mine has a forecast total life of 28 years from first production of the processing plant (excluding construction and closure phases).

22.8Recovery Plan

The proposed processing methods are conventional to the industry. The comminution and recovery processes are widely used with no significant elements of technological innovation. The process plant flowsheet designs were based on testwork results, previous study designs and industry-standard practices.

The plant is designed to cater for the ore composition changes over the LOM, and blending is not expected to be required. Two process flowsheets will be used. The LEAN flowsheet was designed to provide an optimal processing solution for treating high-grade ores with a porphyry content of 75% or more. The Golpu flowsheet was designed to treat mineralisation with a porphyry content of less than 75% and incorporated a pyrite circuit for improved gold recovery from the metasediment-rich material.

The proposed Watut process plant will be a compact copper concentrator that is progressively built using a two-stage ramp-up. The plant will incorporate the following: crushed ore stockpile and reclaim; SABC circuit; rougher flotation, copper rougher cleaner (single Jameson cell), copper concentrate regrind, three-stage copper cleaner, and cleaner–scavenger stage; pyrite rougher flotation circuit; pyrite concentrate regrind circuit; concentrate dewatering and handling; tailings thickening, pumping and water recovery; reagent mixing and distribution; grinding media storage and addition; and water and air services.

The process plant will produce variations in recovery due to the day-to-day changes in ore type or combinations of ore type being processed. These variations are expected to trend to the forecast recovery value for monthly or longer reporting periods.

Copper concentrate is assumed to be shipped out of the port of Lae. Concentrate slurry will be transported via pipeline from the process plant site to the port, where it will be filtered prior to ship upload for export.


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22.9Infrastructure

Golpu is a greenfield site and does not have infrastructure to support mining operations.

The Golpu Project as envisaged will occupy three geographical areas consisting of the mine area, an infrastructure corridor, and a coastal area. The infrastructure corridor will link the mine and coastal facilities.

The mine area will include proposed block cave mine, underground access declines, portal terrace and waste rock storage facilities supporting each of the Watut and Nambonga declines, the Watut process plant, power generation facilities, laydown areas, water treatment facilities, quarries, wastewater discharge and raw water makeup pipelines, raw water dam, sediment control structures, roads and accommodation facilities for the construction and operations workforces. Infrastructure will require construction of a number of terraces due to the topography.

Within the infrastructure corridor will be the concentrate pipeline, terrestrial tailings pipeline and fuel pipeline; mine and northern access roads to connect with the Highlands Highway, and laydown areas.

The port, including the concentrate filtration plant and materials handling, storage, ship loading facilities and filtrate discharge pipeline; tailings outfall, including a mix/de-aeration tank and associated facilities, seawater intake pipelines and DSTP outfall pipelines, pipeline laydown area, choke station, access track and parking turnaround area, are included in the coastal area.

Upgraded existing access roads will provide the initial Golpu Development access but will be replaced by planned northern access and mine access roads to be used during the main construction and operations phases. These two roads will be located within the infrastructure corridor.

Power generation will be staged. The first stage will consist of nine 10MW generator sets to meet the initial power demand of 56MW. The second stage will accommodate the peak power demand of approximately 100MW through the addition of five 10MW units, taking the total to 14 generator sets. The ultimate configuration will comprise 12 operating generators and two standby generators.

The existing Wafi and Finchif construction accommodation facilities will be operational during the construction phase, with Finchif used during operations as well. A third accommodation facility, Fere, will be used for both the construction and operations phases.

22.10Environmental, Permitting and Social Considerations

Baseline and supporting studies were completed in support of current and proposed mine design and permitting.

Two stockpiles in support of operations will be required, a temporary ore stockpile to store ore extracted during the development of the block cave extraction levels, and a coarse ore stockpile to maintain a steady supply of ore for the Watut process plant and to minimise fluctuations in the availability of feed material.

Two WRSFs will be used, the Watut declines WRSF and the Gardens WRSF. Seepage and runoff will be captured, and if necessary, treated to comply with permit conditions.

Based on a desire to minimise impacts on the biophysical and social environment and cultural heritage and adopt the option with the lowest construction, operational and post closure risks, the WGJV adopted DSTP as the preferred tailing management option for the Golpu development.

Deep sea tailings placement will involve the discharge of tailings slurry from an outfall pipeline terminus located approximately 200m below the ocean surface. On exiting the outfall pipe, the tailings will flow down the sloping seafloor as a density current, with the ultimate deposition of the tailings solids on the deep-ocean floor.


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A Conceptual Closure and Rehabilitation Plan was prepared for the Golpu Project. A detailed closure schedule for implementation will be developed during the operational stage of the mine as the closure planning progresses. The WGJV proposes undertaking progressive rehabilitation where possible.

Additional mineral tenures will be required in support of construction and operations, including SMLs, MEs and LMPs. The Golpu Project EIS was submitted to CEPA. Environmental approval for the Level 3 Environment permit was obtained in 2020. Apart from the Mining Act 1992 and Environment Act 2000, the Golpu Project will have to comply with aspects of other forms of legislation. Additional legislation may also be requested to be complied with during the Golpu Project review process.

WGJV has worked closely with its many stakeholders to build relationships. Feedback and issues raised by stakeholders are recorded during engagements for further action as required by the WGJV. This includes an established grievance mechanism. Stakeholder engagement will continue throughout the life of the Project, although the frequency and nature of engagement will vary according to the specific stakeholder.

Those issues which have the greatest potential for adverse impacts, and which are likely to be of greatest interest to Golpu Development stakeholders include: the need for some households to physically relocate; terrestrial biodiversity impacts; physical or chemical impacts of DSTP in the Huon Gulf; acid mine drainage risks; impacts arising from damage to or failure of the proposed pipelines; and impacts on current social structures, local subsistence agriculture economies and subsistence resource use.

Positive social outcomes may result from direct financial benefits to the State and Morobe Province, workforce employment and training, and procurement of equipment and materials from within Morobe Province and elsewhere in PNG.

22.11Markets

It is expected that Asian smelters will contract the Golpu concentrate as long-term feed source. The Golpu concentrate is expected to be relatively high in copper and low in impurities. Levels of gold-in-concentrate are not expected to be elevated to such levels which may limit marketability in markets such as China and India where high concentrate values may be restricted by working capital constraints. The concentrate is not expected to contain deleterious elements at levels prohibitive to sale to Asian smelters.

The marketing approach is consistent with what is publicly available on industry norms, and the information can be used in mine planning and financial analyses for the Golpu concentrate in the context of this Report.

Metal price assumptions were provided by Newcrest management. Newcrest considers analyst and broker price predictions, and price projections used by peers as inputs when preparing the management pricing forecasts. The commodity price and exchange rate projections were agreed to by the WGJV Participants.

22.12Capital Cost Estimates

Capital cost estimates were based on the 2018 Feasibility Study Update and were presented on a 100% basis. Cost estimates were reviewed in 2020 and remained current at that time. However global cost inflation post COVID has decreased the confidence in the estimate to ±25%.

The mine to port area, surface services and infrastructure, BC44 and BC42, underground services, and infrastructure areas were designed to a feasibility level of confidence. The access to BC40, and its associated mining layout were designed at a pre-feasibility confidence level. BC40 underground infrastructure, however, is to a feasibility level of confidence, using the same data as BC44 and BC 42.

Contingency allowances were applied, as appropriate, and were based on evaluations of all major cost categories.

The life of mine capital cost is USD5,382m (real December 2017 terms), and includes USD200m of capitalised net revenue, which is a Harmony accounting standard for production revenue delivered before commercial production is declared.


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22.13Operating Cost Estimates

Operating cost estimates were based on the 2018 Feasibility Study Update and were presented on a 100% basis. Cost estimates were reviewed in 2020 and remained current at that time. However global cost inflation post COVID has decreased the confidence in the estimate to ±25%.

The operating cost estimate was developed in monthly increments and is based on first principles, being unit consumption rates and unit prices. Prices were quantified as far as possible and where practicable by quotations, with some values escalated from prior estimates in the 2016 Feasibility Study.

Forecast operating costs include, over the LOM, USD4.16/t milled for mining costs, USD7.50/t milled for treatment costs, USD1.78/t milled infrastructure costs, and USD3.99/t milled site services costs. This resulted in an anticipated overall LOM operating cost of USD17.33/t milled.

22.14Economic Analysis

The financial evaluation is based on a DCF model. The resulting net annual cash flows are discounted back to the date of valuation of start-of-year 1 July 2019 because the actual starting calendar year has not been determined. A discount rate of 8.50% was used. Input assumptions were reviewed as at 30 June 2020 are considered acceptable for public disclosure and remain current.

The economic analysis was performed on a 100% in-country basis without consideration of funding or structuring at the WGJV Participant entity level and does not take into account differences in the corporate tax treatment by each WGJV Participant. For the purpose of calculating the tax payable, all of the extractive activities and associated infrastructure were assumed to be undertaken under a single Mining Lease. All expenditure, including execution capital expenditure up until first production, was capitalised as ACE and depreciated at a rate of 25% using the diminishing value method, as per PNG’s tax law.

The internal IRR is forecast to be 18.2%, and the projected NPV is USD2,604m. The payback period is estimated at nine and a half years.

The Golpu Development is most sensitive to changes in the copper price, less sensitive to changes in the copper grade, capital costs, gold price, and gold grade, and least sensitive to changes in operating costs.


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23.Recommendations

Section 229.601(b)(96) (23)

As major engineering studies and exploration programmes have largely concluded on the Golpu Development, the QPs are not able to provide meaningful recommendations.


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24.References

Section 229.601(b)(96) (24)

AMC Consultants (Pty) Limited, 2012a: Golpu Drilling Sample and Assay Verification, Wafi–Golpu Joint Venture: report prepared by AMC for WGJV, July 2012.

AMC Consultants (Pty) Limited, 2012b: Golpu Mineral Resource Review: report prepared by AMC for WGJV, August 2012.

AMC Consultants (Pty) Limited, 2012c: Golpu Ore Reserve Review: report prepared by AMC for WGJV, August 2012.

Blood, A.M., 2015: Approvals and Regulation in Papua New Guinea: article posted to AusIMM website, December 2015.

Canadian Institute of Mining, Metallurgy and Petroleum (CIM), 2014: CIM Standards for Mineral Resources and Mineral Reserves, Definitions and Guidelines:

Canadian Institute of Mining, Metallurgy and Petroleum, May, 2014.

Canadian Securities Administrators (“CSA”), 2011: National Instrument 43-101, Standards of Disclosure for Mineral Projects, Canadian Securities

Administrators; Instrument and Companion Policy as updated in 2016.

Clean TeQ, 2017: 532-4600-PR-REP-30001 Wafi Golpu Mine Water Treatment HDS and DeSALx Piloting Report: report prepared for the WGJV, 2018.

Coffey Environments Australia Limited, 2018: Wafi–Golpu Project Feasibility Study Update: report prepared for WGJV Participants, 16 March, 2018.

CSIRO, 2017: Geochemical and Ecotoxicological Characterisation of Tailings.

Department of Environment and Conservation (“DEC”), 1997: Environmental Code of Practice for Vehicle/Machinery Workshops and Petroleum (Hydrocarbons) Storage/Resale/Usage Sites.

Department of Environment and Conservation (“DEC”), 2004: Guideline for Conduct of Environmental Impact Assessment and Preparation of an Environmental

Impact Statement: PNG Department of Environment and Conservation.

Equator Principles, 2006: The Equator Principles: A Financial Industry Benchmark for Determining, Assessing and Managing Social and Environmental Risk in Project Financing: www.equator-principles.com.

Fraser Institute, 2019: Survey of Mining Companies, 2019: Fraserinstitute.org, 80 p.

Funnell F.R., 1990: Wafi River Gold Deposits. in Hughes F.E. 1990. Geology of the Mineral Deposits of Australia & Papua New Guinea, AusIMM Monograph 14.

Garwin, S., Hall, R., and Watanbe, Y., 2005: Tectonic Setting, Geology and Gold and Copper Mineralisation in Cenozoic Magmatic Arcs of Southeast Asia and the West Pacific: Economic Geology 100th Anniversary Volume, pp 891–930.

Gillman A., 2005: Golpu Cu-Au Deposit: Harmony Gold Mining Company Limited internal memorandum.

Gleeson, K., Manca, P., Curry, D. and Jones, C., 2020: Wafi-Golpu Project, Morobe Province, Papua New Guinea NI43-101 Technical Report prepared for Newcrest Mining Limited.

Hayward, S., Muller, C., Bandy, L., Finn, D., Golias, P., Menzies, D., Shakesby, S., Tekeve, B., and Wima, M., 2011: Unveiling a Hidden Giant: Discovery of the Golpu Au-Cu Porphyry Deposit, Papua New Guinea: NewGenGold 2011.

Hill, K.C., Kendrick, R.D., Crowhurst, P.V., and Gow, P.A., 2002: Copper–Gold Mineralisation in New Guinea: Tectonics, Lineaments, Thermochronology and Structure: Australian Journal of Earth Sciences, v. 49, pp. 737−752.

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LME-Copper Grade A Cash, distributed by Refinitive, retrieved from S&P Global Market Intelligence (Specified by the publisher).

Morobe Mining Joint Ventures, 2012b: Wafi–Golpu Project: Wafi Mineral Resource Report June 2012: Report Number WGP WAF MR 12-06, issued 24 July 2012.

Morobe Mining Joint Ventures, 2012c: Wafi–Golpu Project: Golpu Underground Ore Reserve: Report Number Golpu OR 12-08, issued 22 August 2012.

Morobe Mining Joint Ventures, 2012d: Wafi–Golpu JV: Wafi–Golpu Project Golpu Pre-Feasibility Study Report: August 2012.

Morobe Mining Joint Ventures, 2014: Golpu Mineral Resource Report, June 2014.

Panteleyev, A., 1995: Porphyry Cu±Mo±Au: in Selected British Columbia Mineral Deposit Profiles, Volume 1, D.V. Lefebure and G.E. Ray, eds, British Columbia Ministry of Energy, Mines, and Petroleum Resources, pp. 87–91.

Panteleyev, A. 1996: Epithermal Au-Ag-Cu: High Sulphidation: in Selected British Columbia Mineral Deposit Profiles, Volume 2 - Metallic Deposits, Lefebure,

D.V. and Hõy, T, Editors, British Columbia Ministry of Employment and Investment, Open File 1996-13, pp. 37–39.

Reid R., 2011: Golpu Deposit: January 2011 Mineral Resource Report: WGJV internal report.

Reid, R., 2012: Report on the Structure Modelling Completed on the Wafi–Golpu Project and Decline Route: WGJV internal report.

Reid, R., 2014: Report on the Geological Modelling Completed on the Wafi–Golpu Project and Decline Route: WGJV internal report.

Reid, R., 2016: Memorandum – Mapping Report Wafi December 2016: WGJV internal report.

Reid, R., 2017a: Report on the Geological and Structural Modelling Completed on the Wafi–Golpu Project and Decline Route and Proposed Tailings Storage

Facility Locations: WGJV internal report

Reid, R., 2017b: Memorandum – 20170530_Note on Structural Models for Golpu:WGJV internal report

Richards, J.P., 2003: Tectono-Magmatic Precursors for Porphyry Cu-(Mo-Au) Deposit Formation: Economic Geology Vol. 98, 2003, pp. 1515–1533.

Rinne, M., 2013: Presentation at Geoscience for Discovery, SEG conference, Whistler 2013.

Rinne, M., 2015: Geology. Alteration, and Mineralisation of the Golpu Porphyry and Wafi Epithermal Deposit, Morobe Province, Papua New Guinea: PhD thesis, University of Tasmania, 162 p.

Rinne, M., Cooke, D., Harris, A., Finn, D., Allen, C., Heizler, M. and Creaser, R., 2018: Geology and Geochronology of the Golpu Porphyry and Wafi Epithermal Deposit, Morobe Province, Papua New Guinea: Economic Geology. Vol 113, pp. 271–294.

SAMS, 2010: Final Report: Independent Evaluation of Deep-Sea Mine Tailings Placement (DSTP) in PNG: Project Number: SAMS Research Services Limited, 8.ACP.PNG.18-B/15 -Final Report, 295 p.

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Smith, R. I., 1990: Tertiary Plate Tectonic Setting and Evolution of Papua New Guinea, in Carman, G.J., and Carman, Z. eds: Petroleum Exploration in Papua New Guinea: Proceedings of the First PNG Petroleum Convention. Port Moresby, pp. 229–244.

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S&P Global Market Intelligence. Accessed 02 August 2022 (access to the research platform).

Stanaway, R., 2012: Geodetic Datums, Survey Grids and Height Datums at Wafi,version 1.1: report prepared for WGJV by Quickclose (Pty) Limited. 2 February 2012, report 532-0084-PF-REP-0001.

Stanaway, R., 2018: Geodetic Datums, Survey Grids and Height Datums at Wafi, fourth version: report prepared for WGJV by Quickclose (Pty) Limited., 13 June 2018, report 532-0084-PF-REP-0001 rev 4.

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Tau-Loi, D., and Andrew, R.L., 1998: Wafi Copper-Gold Deposit: in Berkman, D.A., and Mackenzie, D.H., eds., Geology of Australian and Papua New Guinean Mineral Deposits, AusIMM Monograph 22, pp. 827–831.

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ToxConsult. 2017: Dangerous Goods and Transport Classification for Wafi–Golpu Copper Concentrate: report prepared by ToxConsult (Pty) Limited for Wafi–Golpu Joint Venture.

Twomey. G., and Dobe, J., 2014: Compilation and Targeting in the Wafi–Golpu Camp: report prepared by Footprint Resources (Pty) Limited., 21 November, 2014, 30 p.

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WGJV, 2013: Wafi Concept Study – Update: internal report prepared for WGJV Participants, 9 July, 2013, 532-0000-CS-REP-0004-2.0.

WGJV, 2016: Wafi-Golpu Project Feasibility Study; internal WGJV report, August 2016, 532-8700-FS-REP-0001.

WGJV, 2018a: Wafi-Golpu Project Feasibility Study Update: internal WGJV report, March 2018, 532-8213-FS-REP-30001.

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25.Reliance on Information Provided by the Registrant

Further to Section 24, there are no additional internal specialists of the Registrant which the principal QPs and authors have relied upon.


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Exhibit Number			Description

96.1			Technical Report Summary of the Mineral Resources and Mineral Reserves for Target Gold Mine, Free State Province, South Africa
96.2			Technical Report Summary of the Mineral Resources and Mineral Reserves for Tshepong Operations, Free State Province, South Africa
96.3			Technical Report Summary of the Mineral Resources and Mineral Reserves for Joel Mine, Free State Province, South Africa
96.4			Technical Report Summary of the Mineral Resources and Mineral Reserves for Free State Surface Operations, Free State Province, South Africa
96.5			Technical Report Summary of the Mineral Resources and Mineral Reserves for Moab Khotsong Operations, Free State Province, South Africa
96.6			Technical Report Summary of the Mineral Resources and Mineral Reserves for Mponeng Mine, Carletonville, South Africa
96.7			Technical Report Summary of the Mineral Resources and Mineral Reserves for Kalgold Mine , North West Province, South Africa
96.8			Technical Report Summary of the Mineral Resources and Mineral Reserves for Mine Waste Solutions (MWS) and West Wits Operations North West and Gauteng Provinces, South Africa
96.9			Technical Report Summary of the Mineral Resources and Mineral Reserves for Kusasalethu Mine, Gauteng Province, South Africa
96.10			Technical Report Summary of the Mineral Resources and Mineral Reserves for Doornkop Mine Gauteng Province, South Africa
96.11			Technical Report Summary of the Mineral Resources and Mineral Reserves for Hidden Valley Mine, Morobe Province, Papua New Guinea
96.12			Technical Report Summary of the Mineral Resources and Mineral Reserves for Wafi-Golpu Project, Morobe Province, Papua New Guinea


			Harmony Gold Mining Company Limited

Date: October 31, 2022			By: /s/ Peter Steenkamp
			Name: Peter Steenkamp
			Title: Chief Executive Officer