OREANDA-NEWS. Highland Gold Mining Limited (“Highland Gold,” “Highland” or the “Company”) announces its trading update in respect of the half year ended 30 June 2013. Full financial results for this period will be released on or around 18 September 2013.

HIGHLIGHTS

Combined production of gold and gold equivalents from Mnogovershinnoye (“MNV”) and Novoshirokinskoye (“Novo”) (97.9% interest) came in at 105,630 oz - a 3.7% increase compared with H1 2012

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

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

Novo production optimisation results in a 6% increase in processed tonnes compared with H1 2012.

Klen project equipment deliveries continued and preliminary construction works started

Kekura pilot plant construction making good progress with commissioning expected in Q4

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

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

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 with a full review of facilities and operations

SAG mill upgrade accomplished at Novo in July

OPERATIONS

Mnogovershinnoye (MNV) - Khabarovsk region, Russia

Overall production at MNV was in line with Company targets. Process plant throughput during the six months to 30 June 2013 achieved 670,654 tonnes of ore processed yielding 68,996 oz of gold. Plant recovery rates benefited from last year's major process upgrades and resulted in 91.9% which was in line with the second half of 2012. Open pit waste stripping rates were maintained during the first half of the year to ensure continued mining at the Flank pit as well as the commencement of mining operations at the Pebble satellite pit. Ore tonnes mined, in respect of both open pit and underground operations, were on target at 609,810 tonnes. Underground development at 3,833 metres recorded a 10% increase over the H1 2012 performance. New underground capital mining equipment, introduced during 2012, helped to maintain production targets and to keep maintenance costs in check. The 'near mine' surface exploration programme involving diamond core drilling adjacent to existing mining operations continued throughout the half year with a focus on the Western Flank license which was purchased at an open auction during December 2012. Underground exploration continued with the goal of converting existing resources into reserves and to discover new resources to help offset depletion. An independent audit of resources and reserve calculations is currently underway with the expected completion during Q3 2013.