News releases

At the time of Highland Gold's full year results which were released to the market on 19 April 2005, Highland Gold advised the market of the severe weather conditions that had been experienced at its main operating mine, MNV, in the early part of 2005 and mechanical problems at Darasun encountered at commissioning. At the time, despite the short-term negative impact on production, the board expected that the shortfall experienced in the first part of the year would be made up later in the year.

Highland Gold Mining Limited ("Highland Gold") announces that it has today signed a subscription agreement with Barrick Gold Corporation ("Barrick") of Canada whereby Barrick will subscribe in cash for 11,377,937 new ordinary shares in Highland Gold at a price of 230 pence per new ordinary share. The subscription is conditional only on admission of the shares to trading on AIM. Following completion of the share subscription Barrick's shareholding, which is currently 13.7%, will increase to 20%.

Highland Gold Mining Ltd. (“Highland Gold”) and its wholly owned subsidiary Highland Gold Finance Limited announce the completion of the sale of rouble denominated bonds in the amount of Rb750,000,000 (US$26.8m).