OREANDA-NEWS. Highland Gold Mining Limited (“Highland Gold,” “Highland” or the “Company”) announces its unaudited financial results and production figures for the half year ended 30 June 2013.

Financial & Operations

Production guidance in respect of FY2013 maintained at 225,000 - 240,000 oz of gold and gold equivalents

Total cash costs were a highly competitive USD 717 per ounce reflecting the cost reduction programme initiated in H2 2012

Combined production of gold and gold equivalents from Mnogovershinnoye (“MNV”) and Novoshirokinskoye (“Novo”) mines reached 105,630 oz - a 3.7% increase compared with H1 2012

Optimisation of Novo's production operations resulted in a 6% increase in processed tonnes versus H1 2012

Interim dividend of 0.025 per share (H1 2012: Interim special dividend of ?0.048 per share)

Company's assets remained unimpaired despite significant declines in metal prices

Investment strategy refined in the light of adverse market conditions

Group JORC compliant resources registered a 25% increase to 16.5 Moz (compared with 13.2 Moz stated at 31 December 2012) as a result of the Kekura licence purchase and an independent resource audit update at Unkurtash

Development and Exploration

Construction of Belaya Gora processing facility and wet testing completed with ore feed tests and process adjustments underway

Commencement of preliminary construction work at Klen project following ongoing equipment deliveries

Construction of Kekura pilot plant making good progress with commissioning expected in Q4

MNV's Western Flank exploration programme underway, targeting potential near surface resources adjacent to existing operations

POST HALF YEAR EVENTS

The official opening of Belaya Gora's process plant by the Governor of the Khabarovsk Region and other dignitaries was held on 22 July 2013 accompanied by a viewing of all the facilities and operations

Upgrade of SAG mill at Novo completed in July 2013

Appointment of Colin Belshaw as an Independent Non-Executive Director with effect from 10 September 2013

New USD 100.0 million financial agreement with Sberbank signed in September 2013