Completion of Acquisition and Issue of Equity

31.12.2018

Highland Gold Mining Limited ("Highland Gold" or the "Company", AIM: HGM) today reports that, further to its announcement on 20 December 2018, it has completed the acquisition of the Valunisty mine and related companies from Aristus Holdings Limited ("Aristus") after receiving confirmation of the legal transfer of ownership of the assets being acquired. As part of the consideration for the acquisition, the Company issued 38,621,343 ordinary shares of £0.001 each to Aristus.

Highland Gold has applied for admission of these new shares to trading on the AIM Market of the London Stock Exchange at 8.00am on 2 January 2018. The new shares issued to Aristus, which are equal to 10.61 per cent of the issued share capital of the Company, are subject to a six-month lock-up agreement.

The issued share capital of Highland Gold as of today is 363,843,441 ordinary shares of £0.001 per share. This number may be used by Highland Gold shareholders as the denominator for calculations by which they will determine if they are required to notify of their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Download TR-1 form (PDF)

FOR FURTHER INFORMATION PLEASE CONTACT:

Highland Gold Mining Ltd.

John Mann, Head of Communications

+ 7 495 424 95 21

Duncan Baxter, Non-Executive Director

+ 44 (0) 1534 814 202

Numis Securities Limited

(Nominated Adviser and Joint Broker)

John Prior, James Black, Paul Gillam

+44 (0) 207 260 1000

BMO Capital Markets Limited

(Joint Broker)

Jeffrey Couch, Tom Rider, Pascal Lussier Duquette

+44 (0) 207 236 1010

Peat & Co

(Joint Broker)

Charlie Peat

+44 (0) 207 104 2334