Update on Production at Darasun

10.11.2004

The Company has now completed a further feasibility study for Talatui, part of the Darasun complex. This indicates two material changes from the original assumptions for the project.

Firstly, the initial volume of stripping work at the Talatui open pit is likely to be higher than was previously expected resulting in a likely lower 2005 production forecast from that deposit which would lead to a material reduction in the previous estimate of 120,000 ounces of gold from Darasun in that year.

Secondly, the study includes a recalculated reserve estimate which is likely to enable the Board to confirm a significant increase in reserves at Talatui. The Company is undertaking further work to understand more fully the impact on production, costs and the increase in reserves and will make a further announcement in due course.

Enquiries:  
   
Highland Gold Dimitry Yakushkin, Director of Communications
  +7 095 777 3155 
Brunswick Andrew Garfield
  020 7404 5959