Bond Issue

03.09.2004

Highland Gold Mining Limited today announces that it has made the decision to file registration with the Federal Commission for the Securities Market of the Russian Federation for the option to issue up to 750m roubles (US$26m) worth of bonds. The bonds could be issued within 12 months of registration with proceeds being used for financing working capital and for further Group development. The company has no obligation to issue the bonds. The decision on whether to issue will be taken at the appropriate time with regards to market conditions and the cost of alternative sources of finance.

Enquiries:

Highland Gold Denis Alexandrov, Finance Director
+7 095 777 3155  
Brunswick Mark Antelme
020 7404 5959 Pavla Kazbundova