Mayskoye Announcement

04.11.2003

Further to the announcement of 4 September, the Board of Highland Gold is pleased to announce that, following the obtaining of all appropriate regulatory approvals and consents, the finalisation of the Company's due diligence and the making of an initial payment of $11.9 million, ownership of 100% of the shares of JSC Mayskoye has been transferred to Stanmix Holdings Limited, a wholly-owned subsidiary of the Company.

Enquiries:

Highland Gold Christine Coignard
Dmitry Korobov
+49 89 3000 1477
+7 095 777 3155
W.H. Ireland David Youngman
Laurie Beevers
+44 (0) 161 832 2174
Brunswick Alison Howard +44 (0) 20 7404 5959