Interim Scrip Dividend Pricing Announcement

02 May 2019

Highland Gold Mining Limited ("Highland Gold" or the "Company", AIM: HGM) announced on 12 April 2019 that its Board of Directors had approved an interim dividend of £0.024 per share to be paid to shareholders on 7 June 2019. The ex-dividend date was 25 April 2019 and the record date was 26 April 2019. Shareholders were offered the option to elect to receive their dividends in pounds sterling, US dollars, or via a sterling value Scrip Dividend alternative in accordance with the Company’s Scrip Dividend Scheme.

The Scrip Dividend alternative requires a Scrip Dividend Mandate to be completed and received by Link Asset Services by the Return Date of 13 May 2019. The value for the issue of new shares under the Scrip Dividend alternative is: £1.626 for each new share. The value of the new shares offered by way of a scrip alternative is calculated by reference to the average of the middle-market quotations for a fully paid Ordinary Share for the day on which such Ordinary Shares are first quoted "ex" the relevant dividend and the 4 subsequent dealing days. The Scrip Dividend Mandate can be completed via www.signalshares.com for shareholders holding their shares in certificated form and via the CREST system if their shares are uncertificated.

For the US dollar cash dividend option, payments are fixed at an exchange rate of 0.765 GBP/US$, or US$ 0.031 per share. To receive payment in US dollars, shareholders should complete and file the Currency Election Form no later than the 13 May 2019. The Currency Election Form and instructions for filing them are available on the Company's website at address: https://www.highlandgold.com/home/investors/dividends.

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 Limited

(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