Project Update

Commissioning of plant components at Belaya Gora

16 April 2013 - Highland Gold Mining Limited ("Highland Gold" or the "Company") is pleased to announce that conveyance, screening and milling construction works at its new stand-alone processing facility at Belaya Gora have been concluded successfully. The Company has initiated the commissioning of these major plant component installations and will thereafter proceed with the verification of the operational readiness of the full process flow scheme followed by wet testing and first ore feed. Initial gold bullion is expected to be delivered in May. After the Novoshirokinskoye polymetallic mine, Belaya Gora is the Company's second major stand-alone process facility construction.

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 Joint Broker)

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