Barrick Gold - Exercise of Participation Rights

15.02.2006

Moscow. – Highland Gold Mining Limited is pleased to announce that Barrick Gold has exercised its rights to acquire a 50% interest in three recently acquired mineral licences. These rights were granted to Barrick Gold pursuant to the January 2004 Participation Agreement between the two companies and cover the Belaya Gora and Sovinoye exploration projects as well as the Baley ZIF-1 tailings.

Planning is now underway for the 2006 exploration of the Belaya Gora and Sovinoye projects. Further details of the planned activities will be announced once the programs have been finalised and approved by Highland and Barrick Gold.

The Baley ZIF-1 tailings deposit will now be incorporated into the existing Taseevskoye Joint Venture.

Commenting on today’s announcement Ivan Koulakov, Deputy Chairman, said:“These new partnerships with Barrick in earlier stage exploration projects build on our existing relationship in the Tassevskoye Joint Venture. We are very pleased and fortunate to have the benefit of such an experienced partner and look forward to an active season of exploration.”

About Highland Gold

Highland Gold is a Russian focused, intermediate gold producer with two operating mines and 3 advanced projects progressing to the feasibility study stage. Highland Gold shares are quoted under the symbol HGM.L on the Alternative Investment Market (AIM) of the London Stock Exchange. Barrick Gold is the Company’s largest shareholder, holding a 20% equity stake.

For further information please contact:

London: +44 (0) 207 851 6400
Moscow: +7 (495) 777 5529
E-mail: info@highlandgold.com
Henry Horne, Managing Director
Dmitry Yakushkin, Director of Communications
Grant Sinitsin, Director of Investor Relations