announcement looming, page-4

Highlands Pacific sells its stake in Kainantu goldmine
09:23, Thursday, 25 October 2007

Sydney - Thursday - October 25: (RWE Australian Business News) -
Highlands Pacific Ltd (ASX:HGL) has signed a binding sales and purchase
agreement with Barrick Gold Corporation for the sale of its interest in
the Kainantu goldmine and surrounding exploration tenements in the
Kainantu region of Papua New Guinea.
The sale price is $US141.5m with the agreement subject to PNG
regulatory and shareholder approvals.
Shareholder approval will be sought before the end of the
calendar year.
Highlands managing director Mr John Gooding said the group's
future would be secured by paying out the monetised gold hedge program
of about $US93m and the loan facility, which totals a further $US19.8m.
On completion of the sale, Highlands would have cash reserves of
$US29m to pursue other growth strategies and allow it to retain full
exposure to its Ramu nickel and Frieda copper/gold assets.
"Barrick is the world's largest goldminer, and is presently
operating the Porgera goldmine in PNG, in which it has a 95pc interest.
"Barrick has all the required attributes and capacity to
successfully manage the Kainantu operation," Mr Gooding said.
"The Barrick offer of $141.5m effectively recapitalises
Highlands whilst removing the significant financial risk faced by the
company and shareholders from a deteriorating hedge book.
"The sale of Kainantu was the very best outcome for all
stakeholders in Highlands, and will enable the company to unlock the
value of its interest in two other world-class assets at Ramu and
Frieda," he said.