OREANDA-NEWS. Highland Gold Mining Limited (“Highland Gold” or the “Company”) announces its trading update for the half year ended 31 December 2013.

HIGHLIGHTS

Production of gold and gold equivalents rose 8% to a record 233,696 oz in 2013, in line with guidance. This encompassed the respective outputs of the Mnogovershinnoye (MNV), Novoshirokinskoye (Novo) and Belaya Gora mines

First gold poured at Belaya Gora

35,000 metres resource conversion drilling completed at Kekura on schedule

Lost Time Incident (LTI) rate fell to 0.28 in H2 2013

Production for the year to 31 December 2014 (MNV, Novo and Belaya Gora) is expected to increase to between 300,000 - 320,000 oz of gold and gold equivalents

OPERATIONAL REVIEW

Production

Mnogovershinnoye (MNV) - Khabarovsk region, Russia

In H2 2013, a total of 76,263 ounces of gold was produced in line with the Company's targets. Process plant throughput amounted to 657,527 tonnes of ore, while the recovery rate remained strong at 92%. The plant's cyanidation process was improved through the installation and commissioning of a mechanical agitator.

Mined volumes, from both open-pit and underground operations, increased to 811,811 tonnes in H2 2013, thereby exceeding volumes achieved during H1 2013 by 33%.

The open-pit operational focus in 2013 was on optimising the stripping process at the south and south-west pit walls of the Flank's ore body in preparation for mining in 2014.