Statement Regarding Placement of Highland Gold Shares

13.10.2003

Highland Gold Mining Limited ("Highland") announces that discussions are taking place in relation to the disposal by Harmony Gold Mining ("Harmony") of its 31.7% stake in Highland via a market placing.

In this context, discussions have been taking place with a potential new strategic investor with a view to it acquiring approximately 10% of Highland Gold in the placing.

There are also discussions taking place between the two parties which would enable this investor to acquire further shares in Highland Gold at the placing price through the issue of new shares to achieve an aggregate holding of 29% of the company’s enlarged issued share capital.

It is emphasised that at the present time these arrangements are subject to discussions and due diligence, and a further announcement will be made as and when the placing is completed.

Enquiries:

Brunswick: Alison Howard +44 20 7404 5959
  Mark Antelme