Highland Gold – Confident in the Future

Highland Gold –
Confident in the Future
June 2012

Disclaimer
Certain statements within this presentation constitute forward looking statements. Such forward looking
statements involve risks and other factors which may cause the actual results, achievements or
performance of the Group to be materially different from any future results, achievements or performance
expressed or implied by such forward looking statements. Such risks and other factors include, but are
not limited to, general economic and business conditions, changes in government regulations, currency
fluctuations (including the US$/RUR rate), the gold price, the Group’s ability to recover its reserves or
develop new reserves, competition, changes in development plans and other risks.
There can be no assurance that the results and events contemplated by the forward looking statements
contained in this presentation will, in fact, occur. These forward-looking statements are correct or represent
honestly held views only as at the date of delivery of this presentation.
The Company will not undertake any obligation to release publicly any revisions to these forward looking
statements to reflect events, circumstances and unanticipated events occurring after the date of this
presentation except as required by law or by regulatory authority.
2

Key Events
• Group wide production of gold and gold equivalents remains on target to
deliver 200,000 to 215,000 oz in 2012
• Acquisition of the Klen gold deposit and surrounding Verkhne-Krichalskaya
license in Chukotka submitted for approval by anti-monopoly authorities
• Construction remains on track for Q4 commissioning of the stand-alone
processing plant at Belaya Gora
• Independent consultants are undertaking a full review of the resource
potential of MNV and its surrounding area
• Pre-feasibility study of Lyubov project submitted to Russian regulatory
authorities with a JORC compliant resource audit to follow
• Drilling results at Blagodatnoye project indicate significant resource
potential, the 2012 exploration programme is ongoing
• JORC compliant resources grew to ca. 12.8 Moz (+64%) in last 18 months
3

Mnogovershinnoye (MNV)
Assuring stable production
• 145,000 to 155,000 oz gold production
targeted in 2012
• Gold recoveries improved with introduction
of process grinding and gravity upgrades
• Underground capital equipment delivered in
2011/12 will continue to maintain productivity
and help keep maintenance costs in check
• 2011 JORC compliant audit increased
proven and probable reserves by 190%
(compared to YE 2010)
4

MNV Exploration
Extensive near-mine exploration
programme continues
• Targeting additional resources in
underexplored areas in-between and
along strike of known ore zones
• Focus on surface exploration – more
than 8,000 m of drilling completed at 3
targets in 2011
• Pebble and Quiet deposits return
positive exploration results confirming
potential for open pit reserve
• Near-mine exploration continues –
2012 exploration programme will focus
on Quiet and Watershed targets
budgeting circa US$ 4.5 Million this
year
• Independent consultants reviewing the
resource potential within MNV environs
5

Belaya Gora
Stand-alone processing plant construction
is underway
• 4,000 oz of gold production targeted
in 2012 (processed at MNV)
• Approx. US$110 million is budgeted
this year for a stand-alone
processing plant with an expected
launch date in Q4 2012 with
nameplate ore throughput of circa
1.5 Mtpa
• Nearby deposits should provide
additional resource potential
• The buildup of stockpiled ore
continues in advance of the stand-
alone operations
6

Novoshirokinskoye
96.6% of Novo now owned by the
Company
• 55,000 to 65,000 oz of gold equivalent
production targeted in 2012
• 450,000 tonnes of ore are expected to be
mined and processed in 2012, improving to
550,000 tpa in 2013 after a scheduled mill
upgrade
• Expected production over the life of mine –
circa 1.5 million oz of gold and gold
equivalents (100%)
7

Klen
New development project in Chukotka
• Located in one of the fastest growing,
investment friendly gold producing regions
in Russia with high exploratory potential
• Good development characteristics: well
explored deposit, non-refractory ore,
conventional gravity / CIL processing and
open pit mining
• Adequate infrastructure with year-round
transport accessibility by river barge or
winter roads
• JORC compliant resource (indicated &
inferred) of 0.63 Moz grading 5.04 g/t
• Upside - open pit potential to extend both on
strike and at depth
C h u k o t k a
8

Verkhne-Krichalskaya (VK)
Upside in highly prospective land package
• VK property (996 km 2 ) – large
area with high potential to
contribute substantial amount
of quality resources to the
future Klen operation
• License area features strong
indicators of significant gold
endowment - several highly
prospective exploration targets
identified in the course of the
2011 programme
• Systematic exploration
programme in progress with
drilling and trenching planned
to start in 2013
Klen 1.86 km²
9

Taseevskoye
Site project work continues
• The specialised triple barrel diamond
core drilling programme was concluded
in Q1 2012, drilling aimed at providing
multi-zone representative ore samples
and confirming ore block characteristics
• Test work and process design
finalisation is required in advance of any
decision to undertake a definitive
feasibility study
BALEY TOWN
TASEEVSKOYE
TAILINGS ZIF-1
SREDNE-
GOLGOTAYSKOYE
10

Lyubov
Emerging development project in the Zabaikalsky region
• 130 km 2 license in active placer mining
region with excellent infrastructure
• Targeting bulk-mineable gold ore for
low-cost open-pit operation at two sites
• Favorable metallurgy suitable for conventional
processing
• Evgraf target - C1+C2 category reserve of ca.
0.5 Moz at ore grade of 1.8 g/t submitted for
registration with the State Committee on
Reserves of the Russian Federation (GKZ)
• JORC compliant resource audit in progress
11

Unkurtash - Kyrgyzstan
Advanced exploration at world class gold deposit in Kyrgyzstan
Baikonur
Unkurtash
Sarytube
Karatube
12

Unkurtash
• 63 km² license covering 4 km long mineralisation zone
• Targeting a multi-million ounce deposit with bulk-mineable gold ore for a
large scale / low cost open-pit operation utilizing conventional gravity &
CIL process technology
• 53,000 m of drilling and 1,800 m of u/g development completed in 2011 at
a cost of circa US$ 15.1 Million
• JORC compliant resource audits define world class deposit of 3.0 Moz
contained in 3 prospects
• Advanced engineering studies initiated
• Exploring more upside – 13,500 m of drilling and 850 m u/g development
planned for 2012 to increase resources (including project development)
13

Unkurtash
2011 - 2012 Programme – Resource conversion and exploration of deeper levels
through drilling and u/g development
SW
Area to be explored by deep
drilling in 2012
Central Unkurtash
Long section with drill hole projections, intersects, and distribution of grades: orange: 0.5 – 1.0 g/t red: >1 g/t; green line: trace of u/g explroation development
• Initial deep-level drilling intersects and u/g sampling results corroborate continuity of mineralisation at depth
80 m
NE
14

Appendix
_____________________
Share Structure
JORC Update
Health, Safety & Environment
Mine Location
_____________________

Share structure
• Millhouse LLC (through Primerod International
Ltd) - Moscow based Russian asset
management company that oversees
investments in metallurgy, mining, real estate,
consumer goods and transport engineering)
• Major UK and European based institutional
investors
• Board and management
Description Number or % of shares
Issued shares 325,222,098
Shares not in public hands 40%
Market Cap at AIM LSE – June 25, 2012 (in millions) US$ 536
Main Shareholders’ Interests
Primerod
32.6%
8%
Board & Mgt
Other
59.4%
16

JORC Updates in 2011 & 2012
• By the end of 2011, the Company’s reserve base increased by 54% due to:
� Independent JORC audit at MNV improved Proven and Probable reserves by
190% (in comparison with year end 2010)
� NOVO purchase of additional 48.3% shareholding provided an increase of over
750,000 oz in the proven and probable category
• The Group resource base (M,I&I) improved by 41% to 11.1 M oz as a result of the
initial JORC audit at Unkurtash, the Novo purchase of additional 48.3 %
shareholding and the updated JORC audit at MNV
• In H1 2012 the Sarytube JORC audit and Klen purchase added 1.173 Moz and 0.63
Moz respectively, increasing Highland’s JORC compliant resource base to ca.12.8
Moz
17

JORC Resource Growth
18

JORC Resources
MINERAL RESOURCES AS AT 31 DECEMBER, 2011 REPORTED IN ACCORDANCE WITH JORC
Project Name Classification Ore, tonnes Gold, g/t
MNOGOVERSHINNOYE
TASEEVSKOYE
UNKURTASH
NOVOSHIROKINSKOYE
BELAYA GORA
TOTAL
Contained gold,
ounces
Highland’s interest
(%)
Gold ounces
attributable to
Highland
Measured 3,931,226 4.4 550,502 100% 550,502
Indicated 1,093,421 4.3 151,422 100% 151,422
Measured +Indicated 5,024,647 4.3 701,925 100% 701,925
Inferred 3,294,000 4.4 465,575 100% 465,575
Total 8,318,647 4.4 1,167,500 100% 1,167,500
Indicated 25,785,000 4.9 4,057,587 100% 4,057,587
Inferred 5,278,000 6.1 1,030,766 100% 1,030,766
Total 31,063,000 5.1 5,088,353 100% 5,088,353
Measured 15,945,670 1.8 944,956 100% 944,956
Indicated 14,494,540 1.7 788,066 100% 788,066
Measured +Indicated 30,440,210 1.8 1,733,022 100% 1,733,022
Inferred 2,406,530 1.3 104,231 100% 104,231
Total 32,895,330 1.7 1,837,253 100% 1,837,253
Measured 2,307,375 8.3 616,719 96.60% 595,751
Indicated 4,411,722 8.0 1,132,516 96.60% 1,094,011
Measured +Indicated 6,719,097 8.1 1,749,236 96.60% 1,689,762
Inferred 1,510,303 5.1 246,981 96.60% 238,584
Total 8,229,400 7.5 1,996,217 96.60% 1,928,345
Measured 6,091,747 2.2 436,058 100% 436,058
Indicated 4,884,373 2.3 362,583 100% 362,583
Measured +Indicated 10,976,120 2.3 798,641 100% 798,641
Inferred 4,028,000 2.3 291,707 100% 291,707
Total 15,004,120 2.3 1,090,348 100% 1,090,348
Measured 28,276,018 2.8 2,548,235 2,527,267
Indicated 50,669,056 4.0 6,492,174 6,453,669
Measured +Indicated 78,945,074 3.6 9,040,409 8,980,936
Inferred 16,516,833 4.0 2,139,260 2,130,863
Total 95,461,907 3.6 11,179,669 11,111,799
1. MNV, Taseevskoye, Belaya Gora and Unkurtash resource estimations do not include a silver assessment.
2. MNV, Novoshirokinskoye and Belaya Gora Mineral Resources are inclusive of Mineral Reserves.
3. MNV Mineral Resources are undiluted and based upon a gold price of US$1100 per ounce. Resources were evaluated with specific cutoff grade > 1.5 g/t.
4. Unkurtash Mineral Resources are undiluted and based upon a gold price of US$1600 per ounce. Resources were evaluated with specific cutoff grade > 0.8 g/t.
5. Resource estimates for the MNV, Taseevskoye, and Belaya Gora deposits were confirmed by Micromine Consulting.
Resource estimate for Novoshirokinskoye was confirmed by Wardell Armstrong International (WAI).
Resource estimate for Unkurtash was confirmed by IMC Montan.
6. The Novoshirokinskoye resource estimate is performed for gold equivalent calculated as follows: Pb*0.510496+Zn*0.430005+Ag*0.01723 (WAI coefficients).
19

JORC Reserves
RESERVES AS AT 31 DECEMBER, 2011 REPORTED IN ACCORDANCE WITH JORC
Project Name Classification Ore, tonnes Gold, g/t
MNOGOVERSHINNOYE
NOVOSHIROKINSKOYE
BELAYA GORA
TOTAL
Contained Gold,
ounces
Highland’s interest
(%)
Gold Ounces
attributable to
Highland
Proven 2,320,816 4.8 354,547 100% 354,547
Probable 567,881 5.0 91,715 100% 91,715
Proven
+ Probable
2,888,697 4.8 446,262 100% 446,262
Proven 2,281,965 8.0 587,207 96.60% 567,242
Probable 4,143,667 7.9 1,052,197 96.60% 1,016,423
Proven
+ Probable
6,425,632 7.9 1,639,404 96.60% 1,583,665
Proven 3,584,793 2.8 317,245 100% 317,245
Probable 2,771,223 2.8 253,339 100% 253,339
Proven
+ Probable
6,356,016 2.8 570,584 100% 570,584
Proven 8,187,574 4.8 1,258,999 1,239,034
Probable 7,482,771 5.8 1,397,251 1,361,477
Proven
+ Probable
1. MNV and BG reserve estimate does not include a silver assessment.
2. The MNV values shown are based upon a gold price of $ 1100/oz.
3. The Belaya Gora values shown are based upon a gold price of $ 850/oz.
15,670,345 5.2 2,656,250 2,600,511
4. Mineral reserves at MNV, Novo and Belaya Gora have been estimated in accordance with JORC 2004 guidelines and include adjustments that have been made to reconcile the reserves with annual production.
20

Health, Safety & Environment
HSE continuous improvement efforts
• Lost time injury frequency rate (LTIFR) of 0.57 in 2011 (0.37 in 2010)
• 2 months in 2011 worked with zero lost time injuries Group wide
• Safety, hazard identification and environmental training programmes
completed by more than 1,900 employees during the year
• 150 internal audits and 6 government inspections were performed in 2011.
All companies within the Group remained in good standing with regulatory
authorities.
• The Company is progressing with implementation of an accredited
environmental management system (ISO 14001 compliant) with final
compliance auditing targeted by YE 2012
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Mine Location
Moscow
Astana
Bishkek
Unkurtash
Chita
Ulan Bator
Blagodatnoуe
Novoshirokinskoye
Taseevskoye
Lyubov
Klen & Verkhne-Krichalskaya
MNV
Belaya Gora & Flanks BG
Iska
Khabarovsk
Vladivostok
Operating mine
Development projects
Exploration projects
Regional office
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