big plans for 2008

HGD
29/10/2007
MINE

REL: 1701 HRS Heritage Gold NZ Limited

MINE: HGD: Heritage Announces Big Plans for 2008

Heritage Gold (NZX:HGD / ASX:HTM) one of New Zealand's leading (dual-listed)
mining companies announced today that it plans to significantly advance the
exploration of its gold permits in 2008 funded by a new capital raising
programme.

Heritage Gold intends to conduct extensive and thorough airborne and ground
geophysical surveys of its Waihi North, Waitete and Golden Valley permits,
particularly those areas adjoining the Martha and Favona operations of
Newmont Gold.

Trent Lash, Managing Director of Heritage Gold said that the Company is
taking a strong, focussed approach to its exploration programme with drilling
of key gold tenements to be carried out during 2008. The 2008 programme is
planned for completion by the end of June.

Heritage plans to use advanced ground-based geophysical technologies,
supported by standard geological survey techniques to focus on areas where
the airborne data indicates the potential for gold bearing structures. This
data obtained from this suite of techniques should closely define drill
targets for its follow-on drilling programme.

The Company also proposes to extend its geological survey of the Talisman and
Dominion Knoll permits this year as well as undertake deeper drilling on the
Rahu permit.

The 2007 drilling programme at Rahu yielded near-surface anomalous gold
values of up to 1.34 grams per ton across intersections of 2m.

Heritage is also evaluating surface drilling of the known quartz vein
structures that are an extension of the Maria and Crown lodes of the historic
Talisman Mine with the objective of delineating additional resources to those
determined from underground drilling in 2005/2006.

To fund this comprehensive and focussed exploration programme Heritage plans
to raise A$3.2 million by private placement as well as a rights issue to its
existing shareholders.

"Heritage has developed a strategic and sound business-based perspective in
how the Company will apply its exploration funds. We are focussed on using
our capital where it offers our shareholders the greatest potential for
creating value from the mining assets that Heritage has in its portfolio,"
says Lash.

Heritage Gold will also allocate a portion of the funds to carry out
preliminary exploration of the Company's base metal prospects in Northland
and conduct reconnaissance drilling of its uranium licences in the Northern
Territory.

The private placement will be raised by issuing 36 million shares at a price
of A$0.045 per share with attached options on a 1:2 basis at an exercise
price of A$0.080 per option and a term of two years.

The rights issue will be offered to shareholders on the same terms as the
private placement.

The timing and full details of the rights issue are being finalised by the
company and will be advised to shareholders as soon as possible.

Heritage Gold intends to seek shareholder approval for this placement at a
special meeting that will be called in late November.

ENDS

For further information please contact:

Trent Lash, Managing Director, Heritage Gold, Ph +64 9 303 1893, mobile +64
21 424 989.