HGM.L Regulatory News (HGM)

HIGHLAND GOLD MINING LIMITED

13 December 2017

Board of Directors Adopts Dividend Policy

Highland Gold Mining Limited ("Highland Gold" or the "Company", AIM: HGM) today announces that the Company's Board of Directors has adopted a Dividend Policy as follows:

· Highland Gold Mining aims to pay a dividend that takes into account the Company's cash generation, profitability, balance sheet strength, and capital investment requirements.

· The Company anticipates total dividend payout for each financial year will be 20% of Net Cash Flow from Operating Activities.

· The Board may recommend the distribution of additional cash on the balance sheet through increased or special dividends should those funds not be required for capital expenditure or debt repayment.

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