Highland Gold Mining Limited has announced that it has entered into a definitive agreement with Kinross Gold, a major Canadian gold miner, to acquire 100% of its Russian assets.

The transaction includes the acquisition of the Kupol and Dvoinnoye operating mines, exploration assets including the Chulbatkan project, as well as associated infrastructure.

The acquisition is payable of less than 15% on closing and with deferred payments through to the end of 2027. The deferred payments are secured by an extensive security package. No bank financing will be required for the initial payment. The transaction is subject to the approval of the Russian government.

The deal was supported by Russian Ministry of Industry and Trade. 'Now it's important to ensure the operation of key industry enterprises, saving its teams and not allowing downtime, as well as to guarantee the implementation of priority regional projects. Kinross Gold followed the second of the three options proposed by the Government for foreign investors with choosing a civilized way out of Russian projects. Therefore, we support the execution of such a deal: the result will be a stable flow of tax revenues, save of working places and support for social projects in the regions of presence,' explained Denis Manturov, Minister of Industry and Trade of the Russian Federation

Vladislav Sviblov, CEO of Highland Gold commenting on the deal said, 'Our team has extensive expertise in underground mining as well as developing greenfield projects. This will allow us to secure the uninterrupted operations of these new assets and ensure the development of their socio-economic potential. Our largest mining hubs are located in the Khabarovsk and Chukotka regions, precisely where these mines are located, and we therefore anticipate operational, logistical and management synergies. We also intend to maintain the high operating standards of the previous owner, and to invest in employee development.'

Highland Gold is one of the leading gold miners in Russia. Its operations are concentrated around four regional hubs - Khabarovsk, Transbaikalia, Kamchatka, and Chukotka. Highland is also commissioning the Ozernoe mine in Buryatia.

Contact:

Victoria Kupriyanova

Tel: +7 915 112 21 29

Email: press@russdragmet.ru

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