Update on COVID-19 Response

HIGHLAND GOLD MINING LIMITED

29 June 2020

Update on COVID-19 Response

Highland Gold Mining Limited ("Highland Gold" or the "Company", AIM: HGM) today provides an update on the Company's response to the international COVID-19 pandemic, following up on information published on March 20 and in the quarterly operating report on April 22.

Highland Gold's mining and processing plant operations, supply chain, and sales continue without disruption despite the pandemic. Work on capital construction projects also continues as planned, including the Belaya Gora processing plant upgrade, the Novoshirokinskoye ("Novo") capacity expansion, and the Kekura development project.

The Company's COVID-19 task force has adopted a complex programme of measures designed to protect the health and well-being of the Company's employees and the communities in which we operate. As previously reported, an extensive medical screening programme and work travel restrictions were implemented earlier in the year, and work shifts were extended until June 1 in order to reduce the risk of spreading the coronavirus to our remote production sites. Office employees in Moscow, Khabarovsk and, in some cases, at the mines began working remotely in late March. Team members throughout the Company have been supplied with information on protecting themselves against infection including available medical services. The Company's medical services contractor, International SOS, is assisting in coordinating the COVID-19 response.

Preparations for the reopening of the Company's offices are at an advanced stage and include a number of precautions such as improved ventilation, strict sanitary norms, free personal protection equipment, and a reduced number of workplaces to ensure social distancing. Senior management and selected staff members have begun returning to the Moscow headquarters while others continue to work from home or on rotation.

Observation Centres have been established for each operating location, either near the mine or in the nearest town or regional capital. The centres feature comfortable accommodations for team members traveling to site and for others requiring isolation, and are staffed by medical professionals. Shift changes via 14-day quarantine with coronavirus testing began in May and are ongoing. While at the facilities, employees receive additional training on health and safety, corporate values and standards, and vocational subjects.

The Observation Centres have already resulted in the identification of three employees carrying the coronavirus before they reached a production site. The employees have been isolated and are being given proper medical care. Aside from them, the only other confirmed case of COVID-19 infection at Highland Gold was a Moscow employee who was working remotely from home and has since recovered.

Together with the Observation Centres, Highland Gold has purchased equipment and is in the process of setting up laboratories at each location to carry out express coronavirus testing. While the labs are being completed, the Company has taken advantage of available government testing facilities and also acquired private COVID-19 testing from third parties.

The Company will continue to closely monitor the situation with its employees, mining operations, supply chain, and the communities where we work, and will provide updates should there be any material changes.

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