Update on MNV Fixed Assets

RNS Number:5590O
Highland Gold Mining Limited
11 August 2003


IMMEDIATE RELEASE


                                                                11th August 2003


                         UPDATE ON MNV FIXED ASSETS

The Board of Highland Gold Mining Limited notes the announcement made yesterday
by the Government of the Khabarovsk region relating to the privatisation of the
freehold of certain immovable fixed assets and other plant and equipment at MNV,
the Group's operating mine.

The Board of Highland Gold has reserved its legal rights in respect of the
existing lease agreement with the regional government under which all of the
assets subject to the privatisation notice are currently leased under a 15 year
agreement which expires in 2015. Whilst the Board of Highland Gold can see
benefits from ownership of the freehold of the assets in question, in the event
that the assets are not acquired by Highland Gold, Highland Gold will continue
to lease these assets under the terms of its lease agreement for the duration of
the lease in accordance with Russian law. Furthermore, Highland Gold continues
to operate the MNV mine under the terms of its long term mining license which is
valid until 2018.

The Board intends to participate in the auction of these assets in full
compliance with the stipulated privatisation requirements. In evaluating the
terms of its participation the Board will act at all times in the best interests
of shareholders.


Enquiries:

W.H. Ireland         Laurie Beevers/David Youngman        [phone]

Brunswick            Alison Howard/Mark Antelme           [phone]



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