BELAYA GORA – Khabarovsk Region, Russia Belaya Gora (“White Mountain”) is a low-sulfidation type gold deposit hosted in pervasively clay-altered volcanic rocks. The property is located 55 kilometres north of the town of Nikolaevsk-na-Amure and 66 kilometers to the south of our present Mnogovershinnoye operation. The acquisition was made pursuant to a public auction at a price of Rb16.5 million (US$580,000). The deposit lies within 5 kilometers of an existing high voltage power line and is accessible all year around by a well maintained road that connects Mnogovershinnoye to the town of Nikolaevsk-na-Amur and its port and airport facilities. The project has a long history of exploration and was explored during the 1970s and early 1980s

Trenching

A total of 4,200 metres of diamond drilling has been completed on schedule and assaying of 3,000 core samples is in progress. Based on previous and Barrick’s exploration data, a 3D geological and exploration model of the deposit has been constructed which indicates gold-mineralization in altered host rocks down to 300 metres from surface with an estimated geological resource of circa 108 M tonnes grading more than 0.5 g/t gold. A 12,000 metres drilling program has been designed for the 2007 exploration season with the objective of defining average grades and delineating resources for the two areas - the Stockwork and Pologaya zones, on the property.

LYUBOV – Chita Region, Russia The Lyubov project is located in the Chita region, 400 kilometres to the southwest of the city of Chita and 25 kilometres north of the Mongolian border. The project includes the exploration and mining rights for the adjoining Malo-Fedorovskoye and Lyubavinskoye deposits which are part of a larger license area of 132 sq. km. Both deposits and a number of other prospects on the property feature vein-type, disseminated and stockwork-style gold mineralization hosted in a sedimentary sequence which are intruded by small stocks and dykes.

Lyubov region

Property acquisitions were made pursuant to public auctions at a total cost of Rbl 66.4 million (US $2.33 million). The properties are accessible by road and are linked to the State electrical power grid. Historic exploration and mining activities on the properties originally focused on high-grade veins, but in the late 1990s exploration was directed towards developing a near surface, bulk tonnage resource that would be amenable to heap leaching. Consequently, a Russian C2+P1 resource of 230.000 ounces of gold grading 2.1 g/t Au was outlined at Malo-Fedorovskoye.

The multi-disciplinary field programme of 2006 has been completed on schedule including 1,500 metres of diamond drilling, 850 metres of trenching, 3,500 core and trench samples, and geophysical surveys (IP, resistivity, magnetics) covering a 10 sq. km area. Drilling at the Malo-Fedorovsky prospect visually confirmed previous results and identified additional wide intersects of visible sulfide mineralization; all assaying is in progress. The geophysical surveys identified several well-defined broad anomalies over an area of 6 sq. km in continuity of known zones of significant gold mineralization. The new anomalies are to be tested in 2007 with a 3,500 metres diamond drilling programme in addition to resource delineation drilling at the Malo-Fedorovsky prospect.

SOVINOYE – Chukotka Region, Russia The Sovinoye deposit is located in the Chukotka region, 100 kilometres west of the village of Cape Schmidt (Population: 570) and 350 kilometres to the east of the seaport of Pevek. Geologically, Sovinoye is characterized by high-grade veins and disseminated stockwork-type gold mineralization hosted in folded clastic sediments. The property acquisition was made pursuant to a public auction at a price of Rbl 5.0 million (US$ 177,000). The project has a long history of exploration and was extensively explored for high grade veins from the 1970s throughout the mid 1980s including 25,000 metres of trenching, 96 drill holes and 2,700 metres of underground development. Highland Gold’s review of the historic data lower

Sovinoye region

The evaluation of the main 2,400 metres x 500 metres gold-mineralized zone with a known vertical extent of 300 metres is in progress and includes large-diameter pneumatic percussion drilling, trenching and sampling. To date 1700 metres drilling out of a 3,000 metres total programme and 1,900 metres trenching have been completed, and 1,800 samples selected. Sample preparation has been tailored to avoid losses of coarse gold, 370 samples (21% of total collected) have been processed to date. The programme is to be completed in Q2 2007.

MAYA-INIKAN – Khabarovsk Region, Russia

Maya-Inikan represents two adjoining property licences with a combined 3,733 sq. km area located in a highly prospective geological setting which is similar to that of other world-class Russian gold deposits. The 2006 grass root exploration programme completed in Q4 2006 covered the entire licence area and was aimed at identifying targets for follow-up work. 2,200 samples were collected during a detailed stream-sediment geochemical and hydrological survey, an early-stage exploration method used successfully by other major mining companies elsewhere. Analytic work is in progress and should be completed by the end of Q1 2007 for data assessment and target selection for further exploration.

UNKURTASH – KASSAN, Kyrgyzstan Unkurtash (11 sq. km) is an advanced exploration project featuring stockwork-disseminated gold mineralization hosted in a granitic intrusion. The property has good potential for hosting a low grade open-pit bulk-mineable gold deposit and is located within the Kassan license, northwestern Kyrgyzstan. Barrick's 2005 trenching and diamond drilling program on the property identified significant gold grades in the 1- 2 ppm range over a wide area. A follow-up bulk sampling program in 2006 led to improved grades and confirmed bulk-mineable potential. All preparatory works (access roads, drill pads) have been completed for a 4,000 metre large-diameter reverse-circulation

Unkurtash region

KASSAN – Kyrgyzstan

Large grass root exploration property of 760 sq. km encompassing the Unkurtash license in the Kassan region, Northwestern Kyrgyzstan. Kassan hosts the two prospects Sarytube and Karytube with Unkurtash-style gold mineralization which are included for drill testing in the 2007 Unkurtash program.

SARASA – Altay region, Russia

400 sq. km grassroot exploration property in the Altay region, Russia. Property is located in renowned mercury mining district which is underexplored for gold but features indicators for Carlin-type gold mineralization.

Barrick's 2006 stream-sampling program at Sarasa identified geochemical gold anomalies which are currently being evaluated.