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 2014. Full financial results for this period will be released on or around 23 September 2014.

HIGHLIGHTS

Total production of gold and gold equivalents amounted to 120,121 oz - a 13.7% increase compared to H1 2013. This represents the combined contributions from the Mnogovershinnoye ("MNV"), Novoshirokinskoye ("Novo") (97.9% interest) and Belaya Gora mines

With Novo operating to budget expectations during H1 2014, annual mill throughput at the mine is expected to reach 550,000 tonnes of ore by the end of 2014

Work on the enhancement of production facilities at the Belaya Gora plant continued

Steady progress in the development of the Chukotka projects - Klen and Kekura

Production guidance for FY2014 maintained at more than 300,000 oz of gold and gold equivalents

OPERATIONS

Mnogovershinnoye (MNV) - Khabarovsk region, Russia

Process plant throughput during the six months ended 30 June 2014 totalled 629,854 tonnes of ore, yielding 61,761 oz of gold. The recovery rate amounted to 92.5%.

Open-pit and underground ore production amounted to 593,446 tonnes. Underground development recorded a 22% increase to 5,151 metres compared with the first half of 2013.

The average grade in the ore mined was 3.42 g/t, which is 5% less than the average for the same period of 2013. This reflected complicated mining conditions at the boundaries of the ore bodies and the greater depth of mining operations.

It is anticipated that there will be an increase in production during H2 2014, through the commencement of mining at the Valunistoye and Vodorazdelnoye ore bodies which contain higher gold grades. In preparation for mining, necessary waste stripping was carried out during the reporting period.