Barrick's Shareholding

13.02.2012

Highland Gold Mining Limited ("Highland" or the "Company"), the AIM quoted Russian gold producer, has been advised by Barrick Gold Corporation ("Barrick") that Barrick has determined upon review, that its approximate 20.4% shareholding in Highland is now non-core to Barrick's business operations and strategy. Despite this determination, Barrick remains very supportive of Highland's Board of Directors and Management as they continue to execute on Highland's impressive growth objectives.  

Barrick intends to divest its shareholding in Highland in an orderly process which delivers proper value to Barrick and, accordingly, supports the interests and aims of Highland and its shareholders. Barrick, Highland, and Highland's largest shareholder, Primerod International Ltd., have agreed that each party will work together to achieve an orderly divestiture for Barrick. Barrick has appointed HSBC Bank plc as its lead financial advisor to assist in Barrick's divestiture of its shareholding in Highland. Further details on the structure of this divestiture will be announced in due course.

Due to the intended divestiture, Barrick will not exercise its right pursuant to the Co-operation Agreement between Barrick and Highland to nominate any directors to the Highland board of directors.

Contact:

Highland Gold
Dmitry Yakushkin, Head of Communications - + 7 495 424 95 21
Duncan Baxter, Chairman - + 44 (0) 1534 814202

Barrick Gold
Rick McCreary, Senior Vice President, Corporate Development - +1 416307 5143

Numis Securities Limited (as Nominated Adviser and Broker to Highland)
Alastair Stratton / Stuart Skinner, Corporate Finance - +44 (0) 207 260 1000
James Black, Corporate Broking - +44 (0) 207 260 1000

HSBC Bank plc
Sergei Chinkis, Managing Director - +44 (20) 7991 8888