So i figured it out and wanted to share. It's a blend of various techniques already known + my personal touch and modifications.
End result looks like this:
Yet another Top-Down, realistic mountains tutorial-oe126pm.jpg

Tutorial: https://copy.com/JIM7FLVrAoEI/All.jpg?download=1
Texture: https://copy.com/vmksGkF9Mbjg/Pattern.JPG?download=1
PDS: https://copy.com/LcxqHKoVXGzY/Realis...psd?download=1

Hope you like it and you will find it helpful/useful

Cheers