Placement and Appointment

RNS Number:8568Q
Highland Gold Mining Limited
13 October 2003


                                                                 13 October 2003


      31.7% of Highland Gold's shares placed with international investors
      Proposed share issue to Barrick raising #70 million for the Company
                        Appointment of Finance Director

Highland Gold, the London quoted Russian gold producer, today welcomed the
successful placing of 31.7% of its equity (the "Placing"), a stake formerly held
by Harmony Gold Mining Company Limited ("Harmony") of South Africa, with Barrick
Gold Corporation ("Barrick") of Canada and with an international group of
institutional investors.

Barrick, one of the world's largest gold producers, has acquired 10% of Highland
Gold's equity in the Placing and Highland Gold has also conditionally agreed to
issue a further 29,577,332 shares at the placing price of 235p per share which,
together with the placing shares, would give Barrick a 29% stake in the
Company's enlarged share capital. This share issue has been approved by the
Board of Highland Gold and is subject to due diligence. It is expected that this
will be completed within two months. After the transaction, the two groups have
agreed to cooperate in the gold sector in the Russian Federation. Barrick will
have the right to nominate two directors to the Board of Highland Gold and to
second certain personnel to the Company.

Highland Gold intends to use part of the proceeds from the share issue of
approximately #70 million (US$116 million) to refinance existing bank debt and
to finance the capital requirements of the Company's development projects.
Surplus funds will strengthen Highland Gold's balance sheet and the Company will
continue to search for acquisitions and investments that will enhance
shareholder value.

Highland Gold also reports the appointment to the Board of Denis Alexandrov as
Finance Director.  Mr. Alexandrov, who qualified as a chartered accountant and
spent five years with PricewaterhouseCoopers' Natural Resources Group before
joining a UK subsidiary of Alfa Group, joined Highland Gold earlier this year.

Peter Daresbury, Executive Chairman, Highland Gold, said:

"We would like to thank the Board of Harmony for their energy and expertise
during the creation and development of Highland Gold and we are grateful in
particular to Ted Grobicki, Peter McKenna and Mike Pleming for their service to
the Company as non-executive directors on our Board throughout Highland Gold's
development to date; Mike Pleming will remain on the Board."

"The successful placing of a substantial stake in Highland Gold with Barrick and
other international investors reflects the progress the company has made since
flotation ten months ago. It is also a clear indication of global investors'
growing confidence in the investment environment in Russia. We welcome all of
our new shareholders and look forward to their participation in the considerable
development potential of the Group.

The agreement with Barrick marks a new phase in the progress of Highland Gold
and we are excited about the prospects of developing a relationship with them in
Russia. We believe that Barrick's knowledge and experience will be of
considerable benefit to the Group in fulfilling its potential in Russia and we
welcome them as a shareholder.

Finally we welcome Denis Alexandrov to the Board as Finance Director and look
forward to his contribution towards the Group's success."

Gregory C. Wilkins, President and CEO of Barrick, commented:

"Highland Gold is an attractive and growing mid-tier producer and this
transaction represents a strategic investment opportunity for Barrick Gold
Corporation. It provides us with a window into one of the world's most
prospective gold mining areas. We are making this investment due to the markedly
improved investment climate in Russia, and an abundance of quality gold targets
in this region."

Enquiries:

Highland Gold
Peter Daresbury                                             0207 409 5600

Brunswick                                                   0207 404 5959
John Sunnucks                                               07974 982356
Alison Howard                                               07974 982515

Barrick
Vince Borg                                                  [phone]
Kathy Sipos                                                 [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

STRKXLFFXBBXFBQ