C ERBA Mining Conference Toronto, 8 March 2010

1. RUSSIA AS A MINING DESTINATION Werner Klemens, Head of Exploration ……………………….. CERBA Mining Conference Toronto, 8 March 2010

2. 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. DISCLAIMER

3. GOLD SECTOR BASICS Some key facts about the Russian gold mining industry… • Russia is the 5th largest global gold producer (over 6 million oz of production in 2009) • It has the second largest gold reserves in the world (est. 300-500 million oz) • Huge underexplored areas with significant potential • Historical mining country, experienced and well-trained workforce • Tremendous opportunities for well-capitalized and experienced producers like Highland Gold

4. RUSSIA ON A WORLD SCALE > 20Moz Au > 5Moz Au Source: Barrick Gold

5. How does Highland Gold fit into this picture… COMPANY PROFILE • Incorporated in May 2002 and quoted on AIM (London Stock Exchange) since December 2002 • Currently operating 2 producing mines, 2 development projects, 4 exploration properties • Gold production 2010 guidance: 200,000 - 210,000 oz of gold and gold equivalents ( 2009 - 163,208 oz of gold) • Resources estimated at 6.3 million oz of gold (as at 31 December 2008 in accordance with JORC) • Strong Russian and international team

6. MNV Belaya Gora R u s s i a n F e d e r a t i o n Iska Kazakhstan Novoshirokinskoye Khabarovsk Taseevskoye Lyubov Mongolia Unkurtash Operating Mine Kyrgyzstan Development Project Exploration Project MINE LOCATION Moscow Blagodatnoye Chita Astana Vladivostok Bishkek Regional office

7. Millhouse LLC MoscowbasedRussian assetmanagement company that oversees investments inmetallurgy, mining, real estate, consumer goods and transport engineering Barrick Gold World’s largest gold mining company based in Toronto, Canada, with mines in North and South America, Australia and Africa SHARE STRUCTURE Main Shareholders’ Interests *

8. Millhouse LLC and Barrick Gold as two strategic investors provide strong technological, financial and corporate input • Major changes in operational management in 2008-2009 • New approach for operating, development and exploration projects • A near term goal - acquisition of producing or close to production assets (resource base >3 million oz of gold) with focus on Russia and Central Asia CORPORATE STRATEGY

9. 5-YEAR PRODUCTION TARGET • Potential upside • New acquisitions • Goal - double production in 5 years

10. Mine will continue to provide the Company with gold at a stable rate in the years to come MNOGOVERSHINNOYE(MNV) • Forecast 155,000 to 165,000 oz of gold production for 2010 • Technological improvements ongoing – retrofit agitators to increase cyanidation time, upgrade deactivation circuit, install intense resin regeneration circuit and flocculent batching units • Transporting ore (start in 2H 2010) from nearby Belaya Gora project to MNV will maximise synergies

11. Extending mine life of MNV – replace and grow reserves through extensive near-mine exploration programme MNV EXPLORATION Pebble • Targeting additional reserves in under-explored areas in-between and along strike of known ore zones • Ongoing drilling programme at Pebble deposit returns positive results confirming strong potential for additional resource • Exploration programme to continue at two more targets – 6,000 m drilling planned in 2010

12. Production launch planned for 2012, estimated capexca. US$113 million • Initial high grade ore to be trucked to MNV in 2H 2010 • Estimated average annual production (post 2012) ca.+/- 82,000 oz • Recent acquisition of nearby Blagodatnoye property provides additional resource potential within regional hub BELAYA GORA • GKZ C1+C2 reserves – 820,000 oz of gold contained in 7.3M tonnes @ 3.5 g/t

13. First concentrate produced and shipped in February 2010 • Joint venture with established base metals producer Kazzinc • Annual output: 20-28,000 tonnes of lead concentrate, 8-9,000 tonnes of zinc concentrate, 35-40,000 oz of gold, 700-800,000 oz of silver • Gradual throughput increase: 280,000 t of ore to be processed in 2010, 450,000 t in 2011 with 550,000 t as projected capacity • 45% of concentrate value comes from gold sales • Expected production over the life of mine – 1.5 million oz of gold and gold equivalents NOVOSHIROKINSKOYE

14. BALEY TOWN TASEEVSKOYE TAILINGS ZIF-1 SREDNE-GOLGOTAYSKOYE • Approval by Russian GKZ (2009) doubles the resource to 3.39 million oz of gold TASEEVSKOYE • Project at feasibility level • Bulk ore sample pilot testing currently underway, results due during H1 2010 • After project approval anticipate a large scale open pit mine • Feasibility study contemplates start up date June 1, 2013 • Estimated average annual production ca. +/- 200,000 oz

15. Emerging development project in the Chita region LYUBOV • 130 km sq 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 low-cost gravitational processing • Scoping study for Evgraf target defines resource potential of 1.6 M oz @ 1.7 g/t including C1+C2 reserves* of 0.6 M oz to depth of 200 – 250 m • Total resource potential estimated at +2 M oz • Adding reserves – 6,000 m resource conversion drilling planned for 2010 EVGRAF C1 + C2 P1 EVGRAF-West * cut-off grade 0.5; g/t; unregistered reserves

16. Advanced exploration project in Kyrgyzstan with high potential for world class deposit UNKURTASH • 67 km sq licenses covering 4 km long gold mineralization zone – currently exploring at 3 exploration sites • Targeting bulk-mineable gold ore for large low-cost open-pit operation • C1+C2* reserve delineated to depth of 200 m (Unkurtash) to be registered in 2010 • Ongoing drilling programme returns positive intersects confirming resource model Karytube Sarytube Unkurtash Baikonur * planned to be registered in Q4 2010 • Large upside potential in underexplored areas - +10,000 m drilling plannedand 3,000 metres of u/g development for 2010

17. MINING ENVIRONMENT What does it take to mine in Russia today… • Partnership with major companies (Barrick Gold) is needed to bring new technology and expertise, strengthen safety awareness • Two essential elements – strong logistics team and competent HR policy • Though mining conditions are stable, strict compliance with regulations is necessary • Company must assure strong local presence in the regions where it operates

18. RUSSIA AS A MINING DESTINATION Werner Klemens, Head of Exploration ……………………….. CERBA Mining Conference Toronto, 8 March 2010