Acquisition of Certain Fixed Assets at Mnogovershinnoye

28.07.2003

As announced on 4 July 2003, the Board of Highland Gold Mining Limited ("Highland Gold" or the "Company") has been in discussions with representatives of the Khabarovsk regional administration regarding the acquisition of certain fixed assets at Mnogovershinnoye, the Company's principal operating mine. The Board remains confident it will be able to acquire these assets which, to date, have been leased from the Khabarovsk administration. The sale process will be governed by the legal framework for the privatisation of assets in the Russian Federation. The Board of Highland Gold expects that details of the sale process will be announced by the Khabarovsk administration in due course and that these details will include the proposed acquisition price of the assets concerned. The Board will inform shareholders of these further details at the earliest opportunity.

Enquiries:

Brunswick Group Ltd Patrick Handley Mark Antelme +44 20 7404 5959