OREANDA-NEWS. Highland Gold Mining Limited (“Highland Gold”, the “Company” or the “Group” AIM: HGM) announces its final audited results for the year ended 31 December 2013.

Eugene Shvidler, Chairman of Highland Gold Mining, commented: “During 2013 management extended the Company's resource base, oversaw further organic expansion and continued to implement appropriate financial disciplines and production efficiencies. The latter measures, applied throughout the Group's operations, served to mitigate the effects of an adverse trading climate. One of the highlights was the first gold pour at our Belaya Gora processing plant which, with ramp-up to nameplate capacity under way, will make an important contribution to the sizeable increase in overall production budgeted for 2014. We completed the purchase of the Kekura property and this, together with the Klen project, also situated in the Chukotka region, will remain at the forefront of our exploration and development agenda. Your Board believes that the accomplishments of 2013 and our strategy in respect of 2014 will significantly further the medium and long-term realisation of the Company's growth potential.”

2013 KEY EVENTS

Group wide production rose 8% to a record 233,696 oz of gold and gold equivalents (2012: 216,885 oz). This is in line with our guidance estimate and represents the combined contribution from the Group's three mines: Mnogovershinnoye (MNV), Novoshirokinskoye (Novo) and Belaya Gora

Total cash costs recorded a sharp decline to USD 611 per ounce (2012: USD 671 per ounce) and remained highly competitive versus peer group. All-in sustaining cash costs decreased to USD 842 (2012: USD 894)

Total cash costs of USD 749 per ounce remained competitive versus peer group (2011: USD 594 per ounce)

Group JORC compliant resources registered a 32% increase to 17.3 Moz (compared with 13.2 Moz stated at 31 December 2012) as a result of the Kekura licence purchase and independent resource audit updates at MNV and Unkurtash

The Group's assets remained unimpaired despite significant declines in metal prices

First gold poured at Belaya Gora

Interim dividend of 2.5 pence per share paid in October 2013 (2012: Interim special dividend of 4.8 pence per share)

Lost Time Incident (LTI) rate was reduced to 0.28 in 2013 compared with 0.31 in 2012

ISO 14001 (2004) certification awarded in respect of the environmental management systems at MNV and Russdragmet (RDM) LLC, the Moscow-based management company

POST YEAR EVENTS

Final dividend of 2.5 pence per share recommended, making a total distribution of 5.0 pence for the year to 31 December 2013 (2012: 7.8 pence)

2014 TARGETS

Total production in 2014 is expected to increase to more than 300,000 oz of gold and gold equivalents (derived from MNV, Novo and Belaya Gora)

Ramp-up of the Belaya Gora plant to nameplate capacity

MNV - maintain stable production and rigorous cost controls

Novo - improve efficiencies and drive further increases in plant throughput

Chukotka - ongoing development of the Klen and Kekura projects

Exploration - focus on near mine exploration programme and delineating upside of the Chukotka projects