New Exploration Licence Near MNV

HIGHLAND GOLD MINING LIMITED

New Exploration Licence Near MNV

02 August 2018

Highland Gold Mining Limited ("Highland Gold" or the "Company", AIM: HGM) is pleased to announce that it has received a new exploration licence for the Vilkinskaya zone, a greenfield site adjacent to the Company's existing licences for Mnogovershinnoye (MNV).

Vilkinskaya is located to the northeast of MNV and covers a territory of 33 square kilometres. Potential mineralisation has already been identified at the site. The licence was granted to Mnogovershinnoe LLC by Russia's Far East Federal District Subsoil Use Department for a period of seven years.

In addition to the main MNV licence, the Company already holds licences for the Western and North-Western Flanks, as well as the Lower Horizons below current underground operations. Last year, the Company received two more greenfield licences for the neighbouring Zamanchivaya and Kulibinskaya zones.

MNV has been the focus of an extensive programme of near-mine exploration and reserve recalculation over the past three years. These efforts, which are ongoing, have already resulted in an extension of the life of mine as well as an updated mineral resource and ore reserve statement published last year.

A new JORC-compliant reserve estimate for MNV, taking into account recent exploration results, is currently in progress and is due to be published in Q3 2018. The updated reserve report is expected to further extend MNV's life of mine beyond the previous estimate of 2022.

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