Highland Gold Reports Exploration Results from Mnogovershinnoye Mine

OREANDA-NEWS. December 10, 2012. Highland Gold Mining Limited ("Highland Gold" or the "Company") announces positive exploration results at its Mnogovershinnoye (MNV) mine in the Khabarovsk region following the conclusion of a programme of diamond core drilling and surface trenching that targeted additional resources in order to enhance existing open-pit mine life at MNV. These latest results are reported from three exploration targets (Quiet, Pebble and Watershed) and highlight the exploration potential that still remains within the MNV license area and which the Company continues to focus on.

The　Quiet　-　Pebble　mineralised zone which extends for two kilometres saw a total of more than 9,500 metres of diamond core drilling completed during a two year exploration period　 at each prospect. Drilling confirmed historic exploration results at each prospect and also intersected new areas of prospective mineralisation which are expected to increase the zone's resource potential. Gold mineralization is predominantly localised within lenticular breccia bodies hosted by a zone of quartz - sericite altered rocks.

Resource modelling for the Quiet prospect is underway and initial mining has commenced at Pebble. Exploitation of both prospects is expected to enhance the existing open pit operations at MNV.

The　Watershed　prospect is located adjacent to MNV's Upper open pit and hosts high-grade gold mineralisation associated with moderately dipping sub-parallel quartz veins and zones of quartz veinlets and quartz-sericite alteration ranging in width from 0.5 to 5.0 metres. Over 2,900 metres of diamond core drilling and 1,600 metres of surface trenching were completed in 2012. The results corroborate existing historic exploration data and indicate the potential to substantially increase the resource base attributed to this prospect.

The Company remains committed to its near-mine exploration efforts at MNV with a goal of verifying and further increasing the known mineralised prospects to add value to the operation. As such, all exploration prospects within the MNV license area are currently subject to an independent JORC compliant audit with results expected to be received during Q1 2013.

Mr. Werner Klemens, Head of Exploration at Highland Gold has reviewed and verified the information contained in this release with respect to drilling and resource / reserves matters. Mr. Klemens holds a Ph.D. in Geology from the University of Toronto. He has over 15 years of experience in mineral exploration and is a fellow of the Geological Association of Canada. A rigorous quality assurance programme complying with international standards is in effect at all exploration projects and includes duplicate sampling, insertion of standards and check assaying at external laboratories.