OREANDA-NEWS. August 5, 2011. Highland Gold Mining Limited (“Highland Gold”, or the “Company” AIM: HGM) is pleased to announce updated resources and reserves at its Mnogovershinnoye Mine (MNV) in the Khabarovsk region, Russia resulting from an independent JORC compliant audit carried out by Micromine Consulting Services (MCS, a division of Micromine Pty Ltd) between June 2010 – July 2011. This report confirms a 190% increase in proven and probable reserves at MNV compared to those stated in the Company’s Annual Report & Accounts 2010 and supports MNV’s current life of mine plan which extends through to 2016.

MINERAL RESOURCES REPORTED IN ACCORDANCE WITH JORC

Project Name

Classification

Ore, tonnes

Gold,
g/t

Contained gold,
ounces

Highland’s
interest (%)

Gold ounces
attributable
to Highland





MNOGOVERSHINNOYE

Measured

4,789,000

4.52

695,935

100%

695,935

Indicated

1,332,000

4.47

191,426

100%

191,426

Measured
+Indicated

6,121,000

4.50

887,361

100%

887,361

Inferred

3,294,000

4.40

465,575

100%

465,575

Total *

9,415,000

4.47

1,352,936

100%

1,352,936

 

RESERVES REPORTED IN ACCORDANCE WITH JORC

Project Name

Classification

Ore, tonnes

Gold,
g/t

Contained gold,
ounces

Highland’s
interest (%)

Gold ounces
attributable
to Highland



MNOGOVERSHINNOYE

Proven

3,343,000

4.60

494,414

100%

494,414

Probable

818,000

4.86

127,896

100%

127,896

Proven +
Probable

4,161,000

4.65

622,310

100%

622,310

resources are inclusive of reserves, reserves are calculated at USD 1100 /oz

totals are rounded to the nearest whole number

January – July 2011 depletion is not included

Exploration diamond drilling continues at several underground and surface locations within the MNV license (16,000 metres and 8,000 metres budgeted in 2011 respectively) where minimal historical work had previously been carried out. As a result of this ongoing exploration work it is expected that some current resources will be upgraded into the reserve category and new resources discovered.