Project update

Belaya Gora Construction Update

29 November 2012 - Highland Gold Mining Limited ("Highland Gold" or the "Company") announces that the work at its new stand-alone processing facility at Belaya Gora ("BG") is progressing well given the difficult winter conditions. Commissioning is expected in Q1 of 2013 with first gold production in April.

Highland Gold reiterates its 2012 production guidance of 200,000 to 215,000 ounces of gold and gold equivalents. BG is expected to contribute towards higher group production next year and 2013 production guidance will be provided as usual at the start of the year. 

For further information please contact:

Highland Gold Dmitry Yakushkin, Head of Communications

+ 7 495 424 95 21

Duncan Baxter, Non-Executive Director

+ 44 (0) 1534 814 202

Numis Securities Limited

(Nominated Adviser and broker)

Alastair Stratton / Stuart Skinner, Nominated Adviser

+44 (0) 207 260 1000

James Black, Corporate Broking

+44 (0) 207 260 1000

Peat & Co Charlie Peat, Joint Broker

 +44 (0) 207 104 2334