New Exploration Licence Near MNV

02.08.2018

Highland Gold Mining Limited ("Highland Gold" or the "Company", AIM: HGM) is pleased to announce that it has received a new exploration licence for the Vilkinskaya zone, a greenfield site adjacent to the Company's existing licences for Mnogovershinnoye (MNV).

Vilkinskaya is located to the northeast of MNV and covers a territory of 33 square kilometres. Potential mineralisation has already been identified at the site. The licence was granted to Mnogovershinnoye LLC by Russia's Far East Federal District Subsoil Use Department for a period of seven years.

In addition to the main MNV licence, the Company already holds licences for the Western and North-Western Flanks, as well as the Lower Horizons below current underground operations. Last year, the Company received two more greenfield licences for the neighbouring Zamanchivaya and Kulibinskaya zones.

MNV has been the focus of an extensive programme of near-mine exploration and reserve recalculation over the past three years. These efforts, which are ongoing, have already resulted in an extension of the life of mine as well as an updated mineral resource and ore reserve statement published last year.

A new JORC-compliant reserve estimate for MNV, taking into account recent exploration results, is currently in progress and is due to be published in Q3 2018. The updated reserve report is expected to further extend MNV's life of mine beyond the previous estimate of 2022.

FOR FURTHER INFORMATION PLEASE CONTACT:

Highland Gold Mining Ltd.

John Mann, 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)

John Prior, James Black, Paul Gillam

+44 (0) 207 260 1000

BMO Capital Markets

(Joint Broker)

Jeffrey Couch, Tom Rider, Pascal Lussier Duquette

+44 (0) 207 236 1010

Peat & Co

(Joint Broker)

Charlie Peat

+44 (0) 207 104 2334