HGM.L Regulatory News (HGM)

24 Oct 2006 07:01

Highland Gold Mining Limited24 October 2006 HIGHLAND GOLD MINING LIMITED Highland Gold confirms sale of 50% of its stake in Novoshirokinsky mine to Kazzinc for the joint development of the property 24 October 2006 - Following the announcement on 5 October 2006, Highland GoldMining Limited is pleased to announce that it signed an agreement with Kazzincinvolving the sale of a 48.3% interest in its development project atNovoshirokinskoye ("Novo") for a consideration of US$36 million in cash, subjectto receipt of the normal regulatory approvals, which we anticipate will be bythe end of November. Both parties will now proceed with work on establishing a project to optimisethe revenue from production and sale of product from the Novo gold-polymetallicdeposit. Henry Horne, Managing Director of Highland Gold said, "We have undertaken athorough investigation of the potential of the Novo property and came tothe conclusion that alongside a highly specialised and experienced joint venturepartner we would be able to maximise the resources in the area. We are delightedto have reached this agreement with such an experienced partner as Kazzinc. Weare optimistic that the full potential of the deposit will now be achieved." For further information please contact:Enquiries: Henry Horne, Managing DirectorDmitry Yakushkin, Director of CommunicationsMoscow: + 7 (495) 777 31 55Dominic Palmer-Tomkinson, Head of Investor RelationsLondon: +44 (0) 207 851 64 00E-mail: info@highlandgold.comOr, WMC Communications, Alex Glover on+44 20 7930 9030 * * * This information is provided by RNS The company news service from the London Stock Exchange