Harmony Gold Corp.
TSX VENTURE : H

Harmony Gold Corp.

August 16, 2010 15:11 ET

Harmony Gold Corp. Announces Option to Acquire Additional 20% Interest in Lucky Shot Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 16, 2010) - Harmony Gold Corp. (the "Company") (TSX VENTURE:H) announces that it has, subject to regulatory approval, entered into a second amendment agreement (the "2nd Amendment Agreement") with Full Metals Minerals Inc. ("Full Metal") and Full Metal's wholly owned subsidiary, Full Metal Minerals (USA), Inc. (collectively, "Full Metals") to acquire an additional 20% interest in and to Full Metals' rights, obligations and benefits to the Lucky Shot Property, Alaska (the "Option") acquired by Full Metals pursuant to a mining lease between, Full Metal, Full Metal Minerals (USA), Inc. and Alaska Hardrock Inc. ("AHI").

Terms of the Option

In consideration for the Company's acquisition of the Option and in order to exercise the Option, the Company must: (A) make a US$250,000 cash payment to Full Metal on the closing of its next financing (the "Financing"); (B) make a US$250,000 cash payment to Full Metal on the first anniversary of the closing date of the Financing; (C) issue 1,000,000 common shares of the Company to Full Metal on the Lucky Shot gold mine producing 200,000 ounces of gold; (D) issue 2,000,000 common shares of the Company to Full Metal on the Lucky Shot gold mine producing 500,000 ounces of gold; and (E) issue 3,000,000 common shares of the Company on the Lucky Shot gold mine producing 750,000 ounces of gold.

Mr. Craig Engelsman, President and CEO of Harmony stated: "We are very pleased to have completed negotiations with Full Metals to increase Harmony's potential percentage ownership in the Lucky Shot Project from 60% to 80%. Both parties recognized that the path to putting the Lucky Shot Project into production would be best served by Harmony having the opportunity to acquire a more significant interest in the Project, and believe that our shareholders will be best served by increasing our interest. We are progressing well with our development plans and look forward to working with AHI to aggressively move the Lucky Shot project forward."

A National Instrument 43-101 compliant technical report on the Lucky Shot Property has been prepared by Donald L. Stevens, Ph.D., P.Geo., and is filed on SEDAR at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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