Licence for the Mayskoye Project Successfully Extended

10.10.2007

Highland Gold Mining Limited (“Highland Gold”, or the “Company”) is pleased to announce the extension of the terms of the operating licence for its Mayskoye project located in the Chukotka region.

As was previously announced, the Company, in accordance with the established procedure, had submitted all the necessary documents required for the extension of the licence to Rosnedra, the agency in charge of issuing, extending and revoking the subsoil licences. Having studied the submitted documents as well as the flawless results of two Rosprirodnadzor inspections conducted at the site in 2006 and 2007 and the letter in favour of the extension issued by the Chukotka regional authorities, Rosnedra has given its official approval for the extension. The revised clause in the licence agreement now requires that the mine should be commissioned no later than 2010.

Henry Horne, Managing Director said: “We are delighted with this decision. Since 2004 we have invested more than US$100 million in the Mayskoye project and once again confirm our commitment to develop the Mayskoye project in order to commission it in 2010. We will continue to demonstrate our strong support to the Chukotka region and its people. We are satisfied that the licence extension process has come to a positive conclusi