Restructuring of Leasehold Agreement in Khabarovsk

04.07.2003

The Board of Highland Gold Mining Limited is aware of recent press reports and associated press speculation. Highland Gold has been in discussions with the Khabarovsk Administration for some time to acquire certain mining assets at the MNV mine, currently leased under a 15 year agreement, signed in 1998, with the Khabarovsk Administration. These discussions are now at an advanced stage and the Board expects to conclude them shortly. The Board will notify shareholders of developments in due course.

Enquiries:

Brunswick Group Ltd Patrick Handley John Sunnucks +44 20 7404 5959