Highland Copper Company Inc. (TSX-V: HI) (OTCQB: HDRSF) is pleased to announce final approval by the Michigan Strategic Fund of US$50 million in performance-based grant funding under the Strategic Site Readiness Program to support the development of the Company’s fully permitted Copperwood Project and related infrastructure improvements in Gogebic County, Michigan. No further State of Michigan approvals are required.

The US$50 million award consists of:

• US$44,971,691 to Copperwood Resources Inc., a wholly owned subsidiary of Highland Copper, to support eligible infrastructure expenditures associated with the development of Copperwood; and
• US$5,028,309 to the Gogebic County Road Commission to support critical local infrastructure improvements associated with the Project and benefiting the broader region.

In addition to the SSRP funding, the Gogebic County Road Commission has secured a US$7,542,463 Transportation Economic Development Fund  Category A grant from the Michigan Department of Transportation. Together, the TEDF and SSRP grants will provide approximately $12,570,722 million for improvements to County Road 519, improving road safety, reliability and access while supporting the broader region.

The final grant approval followed a thorough review of the Copperwood Project and was recommended by the Michigan Economic Development Corporation, reflecting the importance of the Project’s development to the Upper Peninsula and the Company’s approach to responsible mining. The funding will be provided through performance-based reimbursements for eligible site readiness and infrastructure expenditures, including roads, power and communications infrastructure required to advance Copperwood. These investments are also expected to deliver broader regional benefits through improved transportation, utility infrastructure and cellular and broadband connectivity.

Barry O’Shea, Chief Executive Officer of Highland Copper, commented, “Final approval of this US$50 million investment represents an important milestone for Copperwood and a strong endorsement of the Project’s potential to deliver meaningful economic benefits to Michigan’s Upper Peninsula while meeting the state’s rigorous environmental standards. We are grateful for the support of the State of Michigan, Gogebic County and the many local stakeholders who have supported the Project throughout this process.

This funding also represents an important milestone in the overall project financing. With this grant secured, in addition to the Letter of Interest from the U.S. Export Import Bank, Highland’s capacity to finance Copperwood is considerably strengthened.”

Michigan State Senator Ed McBroom, commented, “The grants today from the state of Michigan are a wonderful investment in communities and infrastructure that is long deserved and overdue. Highland Copper’s willingness and patience to leverage this assistance for publicly accessible infrastructure along with its own investment in it and the mine itself, along with all the benefits the mine provides to the region and nation, is a major victory for the UP, Michigan, and the nation.”

For additional details, see the State of Michigan’s press release regarding the Copperwood Project and related infrastructure investments: https://www.michiganbusiness.org/press-releases/2026/08/state-of-michigan-celebrates-380-new-jobs-infrastructure-improvements-coming-to-western-upper-peninsula/.

The grant is subject to the completion of a definitive grant agreement with the MEDC, and is conditional upon the Company providing evidence, on or before March 31, 2028, that it has obtained commitments satisfactory to the MEDC for US$150,000,000 in additional project financing. Once the Company demonstrates that it has met the Project Milestone, it will be eligible for reimbursement of expenditures made on or before March 31, 2033, on site preparation and improvement necessary to support the development of the Project. The grant is subject to certain completion milestones, including that the Company has established a minimum of 380 qualified jobs at the Project.

For more than a decade, the Copperwood team has worked closely with local and regional communities, government representatives and regulatory bodies throughout Michigan’s Upper Peninsula. That engagement has informed the Project’s development alongside an extensive permitting and environmental review process, with environmental controls, mitigation measures and wetland creation incorporated into Copperwood’s design and development plans. The Copperwood project is supported by more than 22 formal resolutions from governmental agencies and 10 letters of support from local and regional stakeholders, reflecting broad recognition of the long-term economic opportunity associated with the responsible development of Copperwood.

With Copperwood fully permitted and this important state funding now approved, the Project is positioned to bring significant investment and economic activity to the Western Upper Peninsula through local employment, procurement, services and infrastructure development. Copperwood also has the potential to establish a new domestic source of copper and strengthen the U.S. supply chain for a critical mineral essential to energy infrastructure, manufacturing and economic security.

About Highland Copper Company

Highland Copper Company Inc. is focused on developing the Copperwood Project in the Upper Peninsula of Michigan, U.S.A. The Company also owns surface rights securing access to the Copperwood deposit and providing space for infrastructure at Copperwood as required. The Company has 738,188,122 common shares issued and outstanding.