Belaya Gora Production Update

11.07.2013

Highland Gold Mining Limited ("Highland Gold" or the "Company") announces that the Belaya Gora plant has been test operated with subgrade feed and has successfully processed 11,200 tonnes of material over a 107 hour operating period without interruptions. Processing regulation adjustments are now underway leading to commercial production. Belaya Gora’s full year gold production guidance of 30,000 to 35,000 ounces remains unchanged.

Belaya Gora is the Company’s second major construction project of a stand-alone processing plant after the Novoshirokinskoye polymetallic mine launched in 2009. When fully ramped up Belaya Gora is expected to process approximately 1.5 million tonnes per annum of ore with resultant gold production ranging fr om 75,000 to 110,000 oz per annum over the life of mine.

For further information please contact:

Highland Gold
Dmitry Yakushkin, Head of Communications
Duncan Baxter, Non-Executive Director

+ 7 495 424 95 21
+ 44 (0) 1534 814 202
   
Numis Securities Lim ited:
(Nominated Adviser and Joint Broker)
Stuart Skinner / John Prior, Nominated Adviser
James Black, Corporate Broking
 
+44 (0) 207 260 1000
+44 (0) 207 260 1000
 
Peat & Co (Joint Broker)
Charlie Peat
+44 (0) 207 104 2334