Highland Gold Completes RUB 750m (US$26.8m) Bond Issue


Highland Gold Mining Ltd. ("Highland Gold") and its wholly owned subsidiary Highland Gold Finance Limited announce the completion of the sale of rouble denominated bonds in the amount of Rb750,000,000 (US$26.8m). The bonds were priced at par (Rb1000) with a 12% annual coupon rate, payable quarterly, and a 3 year maturity. The pricing was conducted in a tender process with an overall demand of Rb1.1 billion.

The bonds are issued by Highland Gold Finance Limited and guaranteed by Highland Gold. The net proceeds from this offering will be used for general corporate purposes, including funding construction at Highland Gold's development projects.

Highland Gold is a leading Russian gold mining company with two operating mines and three projects under development. Highland Gold's shares are traded in London on the Alternative Investment Market under the symbol HGM.

International Moscow Bank and Promsvyazbank acted as Joint Lead Arrangers and Underwriters for the issue. Vneshtorgbank acted as a Co-Manager. International Moscow Bank is the Paying Agent.

Commenting on today's announcement Denis Alexandrov, Finance Director, said:"We are pleased to have successfully accessed a new source of long-term financing from Russia's domestic debt market. We are also encouraged by the positive perception of Highland Gold that was demonstrated by the level of demand for our first placement in the market. The proceeds received from this placement further strengthen our financial capabilities and secure capital to finance our development program."

Highland Gold Mining
+7 095 777 3155
Denis Alexandrov, Finance Director
Dmitry Yakushkin, Director of Communications