Signing Ceremony in Chita for Highland - KazZinc Agreement

01.12.2006

The agreement between Highland Gold and KazZinc, involving the sale of a 48.3% interest in the development project at Novoshirokinskoye (“Novo”) was signed on Monday, 27 November in Chita at the Governor’s residence. The ceremony was widely attended by representatives of the local administration, legislature and press.

Highland’s executive deputy chairman Ivan Koulakov and KazZinc president Nikola Popovich exchanged hard copies of the signed document and received congratulations from Ravil Gueniatulin, Governor of the Chita region who said he had great faith in the success of the project and highlighted its importance for the further economic development of the Chita region.

Final regulatory approvals for the transaction are anticipated within the coming days. The completion of the deal and further details of the project are expected to be announced next week.