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Werner P. Klemens,Head of Exploration
CERBA Russia & CIS Mining ConferenceToronto, March 9, 2011
Russian Regional and CIS Mining Opportunities – The Highland Gold Perspective
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$/RUR rate), the gold price, the Group’s ability
to recover its reserves or develop new reserves, competition, changes in development plans and other risks.
There can be no assurance that the results and events contemplated by the forward looking statements contained in this
presentation will, in fact, occur. These forward-looking statements are correct or represent honestly held views only as at
the date of delivery of this presentation.
The Company will not undertake any obligation to release publicly any revisions to these forward looking statements to
reflect events, circumstances and unanticipated events occurring after the date of this presentation except as required by
law or by regulatory authority.
Disclaimer
3
• Company incorporated in May 2002 and quoted on AIM (London Stock Exchange)
since December 2002
• Currently operating 3 producing mines, 1 development project and 4 exploration
properties
• Major changes in operational management in 2008-2009
• Resources estimated at 6.8 million oz of gold
(as at 31 December 2009 in accordance with JORC)
• Powerful combination of two strategic investors (Millhouse LLC and Barrick Gold)
provides technological, financial and corporate input
• Focus on growth opportunities in Russia and Central Asia
Company Profile
4
Millhouse LLC (through Primerod International Ltd)
Moscow based Russian asset management
company that oversees investments in metallurgy,
mining, real estate, consumer goods and transport
engineering
Barrick Gold
World’s largest gold mining company based in
Toronto, Canada, with mines in North and South
America, Australia and Africa
Description Number or % of shares
Issued shares 325,197,098
Shares not in public hands 61%
Market Cap at AIM LSE – March 8 2011 (in millions) US$ 890
Main Shareholders’ Interests
Share Structure
Other 39%
Primerod 32.6%
8%Board & Mgt
20.4%Barrick Gold
5
Mine Location
Bishkek
Moscow
Ulan Bator
Chita
Khabarovsk
Vladivostok
BlagodatnoуeIska
Novoshirokinskoye
MNV
Taseevskoye
Lyubov
Belaya Gora & Flanks BG
Astana
Regional office
Exploration projects
Development projects
Operating mineUnkurtash
6
Highland Gold Three Years Ago
Belaya Gora
Lyubov – Sovinoye- Unkurtash
Iska - Maya Inikan
Novoshirokinskoy
e
Mayskoye
Taseevskoye
MNV
Operations
Projects
Exploration
1
3
7
7
Highland Gold Today
Unkurtash
Lyubov
Blagodatnoe
Belaya Gora Flanks
Taseevskoe
MNV
Novoshirokinskoye
Belaya Gora
Operations
Projects
Exploration
3
1
4
8
2010 Highlights
• The Company met its 2010 production guidance by producing 200,028 oz of gold and gold
equivalents from Mnogovershinnoye (“MNV”), Novoshirokinskoye (“Novo”) (48.3%) and its newly
commissioned third mine, Belaya Gora, a 23% increase year-on-year
• Unkurtash initial C1+C2 reserves estimate (1.70 Moz ) submitted to Kyrgyzstan GKZ for approval,
JORC compliant audit underway with results expected during H1 2011
• JORC compliant audit confirms original Belaya Gora GKZ reserve (0.82 Moz)
• Novo continues to ramp up mining and processing levels
• 12,000 metres of resource conversion drilling completed at Lyubov
• Group currently debt free after fast tracking loan repayments
9
Mnogovershinnoye (MNV) – Khabarovsk Region
• 170,356 oz of gold produced at MNV, a
4.4% increase over the previous year
• Process milling and gravity upgrades
are underway and expected to improve
recoveries
• New capital equipment deliveries in
2010 improving productivity levels and
helping to keep costs in check
• Diamond drilling programme adds near
surface resources for future exploitation
A solid performance in 2010
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Extensive near-mine exploration programme ongoing to replace and grow reserves
• Targeting additional reserves in
underexplored areas in-between and along
strike of known ore zones
• Focus on surface exploration – 6,200 m of
drilling completed at 4 targets in 2010
• Pebble deposit returns positive results
confirming strong potential for open pit
reserve
• Positive drilling results obtained from other
targets warrant follow-up work
• Near-mine exploration continues – 2011
budget allocates 8,000 metres of surface
drilling and 16,000 metres of underground
drilling
MNV Exploration
11
• First ore hauled to and processed at
MNV in November 2010
• 1,000 oz produced from 10,971
tonnes of ore
• The stand-alone process plant
design and construction works now
initiated with anticipated launch
expected by mid-2012
• Recent acquisitions of nearby
deposits provide additional resource
potential
• Expected contribution: approx. 1,000
oz per month during 2011
Belaya Gora initial production launch increases the Highland stable to three operating mines
Belaya Gora – Khabarovsk Region
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• 28,672 oz (48.3%) of gold and gold
equivalents from 397,075 tonnes of ore in
2010
• Approx. 450,000 t of ore are expected to be
processed in 2011 with 550,000 t as the
projected plant capacity
• Approx. 70% of 2010’s concentrate value was
attributed to precious metals
• Expected production over the life of mine –
1.5 million oz of gold and gold equivalents
(100%)
Novoshirokinskoye - Chita Region
The ramp up of mined and processed tonnes remains on track
13
• Semi-industrial pilot test work (POX)
• Development of a full feasibility study
expected by year end 2011
• Reviews will also include ZIF-1 and
Sredne-Golgotayskoe deposits to
demonstrate the benefits of
introducing them into the current
economic model
TASEEVSKOYE
TAILINGS ZIF-1
SREDNE-GOLGOTAYSKOYE
BALEY TOWN
Taseevskoye – Chita Region
Process test work continues
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• 130 km2 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
• Adding reserves – 12,000 m resource conversion
drilling completed in 2010
• Company plans to submit for approval to the State
Committee on Reserves of the Russian Federation
(GKZ) in H2 2011. A JORC compliant resource audit
is expected prior to the year end 2011.
* cut-off grade 0.5 g/t; unregistered reserves
EVGRAF
EVGRAF-West
Emerging development project in the Chita region
Lyubov – Chita Region
15
• 63 km² license covering 4 km long gold mineralisation
zone – exploration continues at 3 distinct sites
• Targeting bulk-mineable gold ore for large low-cost
open-pit operation
• 2010 and ongoing drilling programme returns positive
intersects confirming resource model
• Initial 1.7 M oz (C1+C2) reserves* delineated (Unkurtash,
Karatube) – submitted in 2010 for registration to GKZ
• Large upside potential in underexplored areas – a four
fold increase in drilling is planned in 2011 (+50,000m) at 3
targets plus 3,000 metres of u/g development
Advanced exploration project with high potential for world class deposit
UnkurtashUnkurtash
UnkurtashUnkurtash
SarytubeSarytube
SarytubeSarytube
KarytubeKarytube
KarytubeKarytube
BaikonurBaikonur
BaikonurBaikonur
Unkurtash – Kyrgyzstan
* planned to be registered in Q1 2011
W 80
E 720
16
Long section with drill hole projections, intersects, and distribution of grades >1 g/t (red)
NESW
Unkurtash - Kyrgyzstan
2010 – 2011 Programme – Conversion of P1 into C1+C2 through drilling and u/g exploration
Area to be explored by deep drilling in 2011
1700 m
1800 m
1900 m
2000 m
2100 m
3,000 m of new underground exploration development planned
80 mW 8
0
E
720
E 720
Central Unkurtash
17
• Production in 2011 (MNV, Novo and Belaya Gora) is forecasted in the
range of 210,000 – 220,000 oz of gold and gold equivalents
• MNV – improve productivity, recovery rates and maintain production
• Novo – continue to ramp up mining and processing levels
• Belaya Gora – progress construction of a stand-alone processing
facility with an anticipated commissioning date of mid-2012
• Unkurtash – conclude JORC compliant audit on initial submitted
Kyrgyzstan GKZ reserve estimate and build on this success
• Lyubov – prepare reserve estimate for submittal to Russian GKZ
• Group will continue to evaluate possibilities for new acquisitions
Goals for 2011
Russian Regional and CIS Mining Opportunities – The Highland Gold Perspective
Werner P. Klemens,Head of Exploration
CERBA Russia & CIS Mining ConferenceToronto, March 9, 2011