HGM.L Regulatory News (HGM)

Highland Gold Mining Limited ("the Company")

16 July 2012

Notification of Director's interest in shares.

The Company was notified on 13 July 2012 of the acquisition on 13 July 2012 of 2,037,794 ordinary shares of £0.001 per share in the Company at 110 pence per share connected with Eugene Shvidler, Non-Executive Chairman. Mr Shvidler with connected parties now has an interest of 28,057,794 ordinary shares of £0.001 per share in the Company, representing 8.63% of the issued share capital.

The issued share capital and total number of voting rights of the Company at 13 July 2012 is 325,222,098 ordinary shares of £0.001 per share. The figure of 325,222,098 shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the FSA's Disclosure and Transparency Rules.

For further information please contact:

Highland Gold:

Dmitry Yakushkin, Head of Communications: + 7 495 424 95 21

Duncan Baxter, Non-executive Director: + 44 (0) 1534 814202

Numis Securities Limited:

Alastair Stratton / Stuart Skinner (Nominated Adviser)

James Black (Corporate Broking) +44 20 7260 1000