Mr. Barry O'Shea reports

HIGHLAND COPPER ESTIMATES THE ECONOMIC CONTRIBUTION OF THE COPPERWOOD PROJECT TO LOCAL AND STATE ECONOMIES

Highland Copper Company Inc. has released the results of the recently completed economic contribution analysis for the Copperwood project.

The company retained Public Sector Consultants out of Lansing, Mich., to perform the analysis, based on expenditure projections from the Copperwood project feasibility study issued earlier this year. PSC conducted two analyses using an input-output modelling tool, impact analysis for planning, to model the estimated direct, indirect and induced economic contributions of the project during the construction phase and, separately, the annual economic contribution of the operating mine if Highland proceeds with the development of Copperwood. A construction decision depends on multiple factors, including Highland's ability to attract project financing.

The modelling tool, Implan, traces the transactions among and between different sectors to quantify how an activity in one part of the economy affects another, allowing PSC to analyze the expected economic contribution of the Copperwood project to the local economy of the Upper Peninsula and also, more broadly, its contribution to the economy of the State of Michigan.

Key highlights

Construction:

• Projected to spend approximately $425-million over the course of the three-year construction phase if project development is initiated;
• The three-year construction is expected to directly support approximately 300 jobs on site, as well as another 159 jobs at vendor partners in Michigan; most of these jobs are projected to be in the UP;
• Indirect and induced purchases made by households and businesses driven by the construction spending are expected to support approximately 353 jobs statewide, with many being in the UP;
• The analysis estimates that the construction of Copperwood will add approximately $74-million to Michigan's gross state product each year during this three-year phase;
• The investment on the Copperwood construction is expected to generate an average of approximately $4.5-million in local, county and state tax revenue annually.

Steady-state operations:

• If the project proceeds to operations, the Copperwood mine expects to provide employment to approximately 380 individuals at or near the site in Wakefield township, Michigan.
• It is estimated that operational spending of the mine could support an additional 313 indirect and induced jobs throughout Michigan.
• The analysis indicated that operational expenses are expected to increase spending to Michigan businesses by approximately $130-million annually.
• Operation spending is expected to generate approximately $12-million in local, county and state tax revenue annually.

"It is Highland's goal to contribute positively to the economies of the local Upper Peninsula communities and State of Michigan, where we intend on operating. The potential economic contributions are significant through the creation of well-paying jobs, indirect economic activity and taxes to support local infrastructure," stated Barry O'Shea, interim chief executive officer. "At the same time, we look forward to contributing to critical U.S. domestic copper supply and supporting the ongoing energy transition."

About Highland Copper Company Inc.

Highland Copper is a Canadian company focused on exploring and developing copper projects in the Upper Peninsula of Michigan, United States. The company owns the Copperwood deposit through long-term mineral leases and 34 per cent of the White Pine North project. The company also owns surface rights securing access to the deposit and providing space for infrastructure as required. The company has 736,363,619 common shares issued and outstanding. Its common shares are listed on the TSX Venture Exchange under the symbol HI and trade on the OTCQB Venture Market under the symbol HDRSF.

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