HIGHLAND GOLD MINING LIMITED

HIGHLAND GOLD MINING LIMITED

Previous company name

Name change date

Company Overview
Highland Gold Mining Limited, with registered office in St. Helier, is a holding company for its group of companies. The company is a mid-tier gold producer with significant reserves and strong growth profile. The company was incorporated on December 2002.
Highland Gold Mining provides group planning and strategy and in particular exercises financial control over its subsidiaries, settles their general policy and appoints their top managements, and provides central services. The company holds 100% of the equity share capital of the following companies: Stanmix Holding Limited and Stanmix Investments Limited.
Highland Gold Mining is considered as the world’s fifth largest gold producer. The company’s mining assets are located in three prolific mining regions of Russia. The company manages operating and country risks with an experienced management team. Extensive local knowledge combined with Western corporate governance and a United Kingdom stock market quotation provides the Group access to acquisition opportunities and capital.
Highland Gold Mining owns and operates the Mnogovershinnoe mine (MNV) in the Khabarovsk Region which was Russia’s second largest operating gold mine and the Darasun mine in the Chita region. The company also owns three development projects namely, Novoshirokinskoye and Taseevskoye (Chita Region), and Mayskoye (Chukotka).
Highland Gold Mining has 160,604,793 common shares in issue which trade on AIM in London under the symbol HGM. Company management, Barrick Gold Corporation and interests related to the Fleming family are all significant shareholders.
Business Summary
The principal activity of the Company is building a portfolio of gold mining operations within the Russian Federation.
Description and history
The principal activity of the Company is building a portfolio of gold mining operations within the Russian Federation.

History
The Company was incorporated in Jersey on 23 May 2002 (registered number 83208) and listed on AIM on 17 December 2002.

The Company is a mid-tier gold producer with significant reserves and strong growth profile. The Company’s assets are located in Russia. It manages operating and country risks with an experienced management team. Extensive local knowledge combined with Western corporate governance and a UK stock market quotation provides the Group access to acquisition opportunities and capital.

The company’s portfolio of assets contains gold equivalent ore reserves and mineral resources of 8.0m oz and 15.7m oz respectively. The Group produced 160,200 oz of gold in 2005. The Company’s gold production remains completely unhedged.

The Company already owns and operates the Mnogovershinnoe (MNV) gold mine in Russia which is the 4th largest in the country. In addition it has two development projects; Darasun and Novoshirokinskoye. Production at MNV reached 178,000 ounces of gold in 2002 and the total resource base of the company, including the development projects whose acquisitions are currently being finalized, is estimated at 8 million ounces of gold and gold equivalents.

The aim of the company is to acquire, consolidate and develop a portfolio of gold mining projects with good growth potential in the Russian Federation. It has Russian executive management with a track record of success committed to expanding the group’s low cost production base.

In year 2010, the Group has acquired a license for exploration and mining rights for the Blagodatnoye prospect in the Kabarovsk Region.

Business Line
Holding company; Holding company for its group of companies; Mid-tier gold producer
Subsidiary

Advisor
ERNST & YOUNG LLP
IPO date
12/17/2002
US SIC Code
1041
Company Address
26, New Street

City province or state postal code
JE2 3RA, ST HELIER
Phone: +44 1534 814 202
Fax: +44 1534 814 815
Country address: UNITED KINGDOM
Website url: www.highlandgold.com