Highland Gold Announces RUB 750m Bond Issue

24.03.2005

Highland Gold Finance Limited Liability Company, the wholly owned Russian subsidiary of Highland Gold Mining Limited, the AIM quoted Russian gold producer, announces today that it has initiated the process to raise Rb. 750,000,000 (approximately US$27.2 million) in the Russian Federation by way of a placement of Bonds. The bonds will have a 3 year maturity. The placement is being led by International Moscow Bank and Promsvyazbank and is expected to begin on 6 April 2005. The subscription period will then last for three weeks.

A copy of the issue prospectus, prepared in line with the relevant securities regulations in the Russian Federation, is available at Highland Gold's management company in Russia, Russdragmet, 8/2 bld.2, Kursovoy per., Moscow, Russia and also from Highland Gold’s website at www.highlandgold.com.

The Bond issue has been pre-registered with the Federal Commission for the Securities Market of the Russian Federation.

The net proceeds from this offering will be used for general corporate purposes, including funding construction at Highland Gold’s development projects.

Download issue prospectus (available only in Russian).

Enquiries:  
   
Highland Gold Denis Alexandrov, Finance Director
  Dmitry Yakushkin, Director of Communications
  Email: enquiries@highlandgold.com
  Moscow Tel: +7 095 777-3155
  Website: www.highlandgold.com
Brunswick Mark Antelme