OREANDA-NEWS. July 31, 2012. Highland Gold Mining Limited (“Highland Gold”, or the “Company”) announces that it has been awarded mining permits at the Unkurtash and Karatube prospects located in the Company’s Unkurtash-Andagul and Kassan license areas, respectively. This is an important milestone for the Company as the permits provide the rights for exploitation of subsoil gold reserves and the timelines for project research, engineering design and construction commencement. The Company is also continuing its exploration programme on site and aims to further increase the current resource base as it proceeds with project engineering studies to examine the potential of developing a large scale open-pit mining operation.

The Unkurtash project hosts four distinct prospects, three of which, Unkurtash, Sarytube and Karatube have been the focus of extensive exploration activities in previous years and are allocated within the Company's two licenses Unkurtash-Andagul (12 km?) and Kassan (51 km?).

The combined mineralised zone measures approximately 4,000 metres on strike, ranges from 250-500 metres in width and has a known vertical extent of at least 350 metres. Intrusion-hosted stockwork type gold mineralisation characterises the Unkurtash and Sarytube prospects, while the Karatube prospect is associated with skarn-type gold mineralisation. Previous test work has indicated favourable metallurgy and gold recovery levels utilising conventional gravity and cyanidation processing technologies.

Based on the results from the substantial exploration programme in 2011, the Company has delineated a combined JORC compliant resource of more than 3.0 Moz (94% Measured +Indicated) from surface extending down 250 metres.  The current 2012 exploration programme is focused on the deep horizon drilling from 250 to 450 metres from surface at the Unkurtash prospect. Results from this drilling programme have the potential to substantially improve the current resource base.

Year to date, the Company has completed an additional 850 metres of underground exploration development and has commenced an 11,500 metre deep drilling programme. An independent JORC compliant resource update is planned during the second half of 2012 in addition to preparatory work towards the registration of additional reserves with the Kyrgyz GKZ planned for H1 2013.

The Company remains committed to unlocking the full potential of the Unkurtash project with the vision of developing a large scale open-pit mineable gold deposit at Unkurtash.