Closing of the Sale of the Darasun Mines

24.10.2007

Following on from the announcement made on 8 August 2007 and after further final negotiations, Highland Gold Mining Limited (“Highland Gold” or the “Company”) is pleased to announce that it has now completed the sale of its 100% share in OOO Darasunsky Rudnik, owner of the Darasun, Teremky and Talatui mines in the Chita Region, Russia, for total cash proceeds of US$15mln and retention of certain mining equipment that will be used elsewhere within Highland Gold's operations. US$3mln of the proceeds have been received and US$7mln should to be paid by the end of 2007 and US$5mln by the end of the first quarter 2008. The shareholders of the purchaser have issued a guarantee to Highland Gold to secure outstanding payment obligations.

 

For further information please contact:

Henry Horne, Managing Director
Dmitry Yakushkin, Director of Communications Moscow: + 7 (495) 777 31 55
Dominic Palmer-Tomkinson, Head of Investor Relations London: +44 (0)20 7239 0149

Fin Public Relations,
Alex Glover on +44 (0)20 7608 2280

JPMorgan Cazenove (Nominated Adviser)
Michael Wentworth-Stanley, +44 (0)20 7588 2828