Highland Copper Company Inc. (TSX-V:HI) is pleased to announce an updated Mineral Resource estimate for its 100%-owned Copperwood Project located in Gogebic County, in the western Upper Peninsula of Michigan, U.S.A. (see Table 1 below).

Highlights:

• 46% increase in Measured and Indicated Resources at 1.5 billion pounds of copper at 1% Cu cut-off grade
• Copper and silver resource grades largely unchanged
• Resource newly identified in the Upper Copper Bearing Sequence (UCBS) zone
• Mineralization remains open along strike and down dip;
• Conversion from Inferred to Indicated Resource categories was robust across the deposit

The updated Mineral Resource estimate prepared by G Mining Services Inc. an independent Canadian mining consulting firm, represents a 46% increase in Measured and Indicated Resources compared to the previous resource estimate dated April 15^th, 2015. The new resource is estimated at 42.5 million tonnes grading an average of 1.59% copper and 3.9 g/t silver containing 1.5 billion pounds of copper and 5.4 million ounces of silver in the Measured and Indicated Resource category, using a cut-off grade of 1.0% Cu. There were gains in all resource categories except in the satellite zones. This will provide a solid base for the current update to the feasibility study that is expected to be completed in the second quarter of 2018.

In May, Highland retained the services of G Mining as lead consultant for the preparation of an update to the feasibility study on the Copperwood project. G Mining used the results of the 2017 drilling program to update the resource estimate that had been reported in the NI 43-101 technical report generated in 2015.

The 2017 drilling program consisted of 32 HQ-diameter and three PQ-diameter drill holes for a total of 6,784 meters of core or approximately 74% of the planned 9,198 meters budgeted for the drilling program. The program was designed to upgrade the current Inferred Mineral Resources at the eastern section of the deposit, obtain metallurgical samples and carry out geotechnical studies to refine the mining plan – all of these objectives were realized. Every drill hole intersected copper-silver mineralization, as expected. The drilling provided 527 samples for copper and silver assaying and 607 kg taken for metallurgical testing.

The current Mineral Resource estimate is based on 2,738 assay results from 359 diamond drill holes totaling 66,577 meters, drilled by four companies between 1956 and 2017. The conversion of Indicated Resources into Measured Resources was robust in the zones drilled during 2017. Complete results of the drilling program will be posted on the Company’s website. The Company anticipates that, once the drilling program in the eastern section of the deposit is completed, most of the Inferred Resources in the Copperwood LCBS (Lower Copper Bearing Sequence) will move into the Indicated Resource category.

Notes on Mineral Resource Estimate

1. Mineral Resources are reported using a copper price of US$ 3.00/lb and a silver price of US$ 18/oz.
2. A payable rate of 96.5% for copper and 90% for silver was assumed
3. The 2012 Copperwood feasibility study by Orvana Minerals Corp. reported metallurgical testing with recovery of 86% for copper and 50% for silver
4. Cut-off grade of 1.0% copper was used, based on an underground “room and pillar” mining scenario
5. Operating costs are based on a processing plant located at the Copperwood site
6. An NSR sliding scale royalty is applicable and equivalent to 3.0% at US$ 3.00/lb
7. Measured, Indicated and Inferred Mineral Resources have a drill hole spacing of 175 m, 250 m, and 350 m, respectively
8. No mining dilution and mining loss were considered for the Mineral Resources
9. Rock bulk densities are based on rock types
10. Classification of Mineral Resources conforms to CIM definitions
11. The qualified person for the estimate is Mr. Réjean Sirois, P. Eng, Vice President Geology and Resources for G Mining Services Inc. The estimate has an effective date of October 18, 2017
12. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues
13. LCBS : Lower Copper Bearing Sequence
14. UCBS : Upper Copper Bearing Sequence
15. The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as Indicated or Measured Mineral Resources.

The sensitivity of Inferred, Measured and Indicated Resources to variations in cut-off grade is represented below in Table 2.

Mineral Resource Estimate Methodology

The Mineral Resource estimate was based on a block model characterised by two separate copper-bearing sequences, the Lower Copper Bearing Sequence (“LCBS”: including the Gray Laminated, Red Massive, and Domino units), and the Upper Copper Bearing Sequence. Individual units within the LCBS were modelled and estimated separately according to the logged geological units. Uncapped raw assays were composited into separate geological units (Domino, Red Massive and Grey Laminated), with one composite per drill hole produced for each unit. For the UCBS, a grade-based modelling approach was adopted where a single layer was modelled based on assays greater than 1% Cu. This approach was applied due to a lack of historical logging and some ambiguity regarding the UCBS position in the stratigraphy. Variography studies undertaken on each geological unit highlighted strong continuity of copper and silver grades, with a low nugget effect observed. A bulk density of 2.7 g/cm³ was applied to Domino and Red Massive units, and 2.72 g/cm³ was applied to the Grey Laminated and UCBS units. Copper and silver grades were estimated using the ordinary kriging interpolation method in three successive passes, using ellipse ranges of 175 m, 250 m, and 350 m. To address the currently accepted minimum mining height of 2 m, copper and silver grades were diluted in areas where the LCBS is less than 2 m in height. Dilution grades were derived from a grade estimation of the hanging wall sediments (Red Laminated unit), which was modelled as a 50 cm buffer zone situated directly above the LCBS.

To define resource categories, G Mining outlined groups of globally similar interpolation passes. Measured Mineral Resources thus constitute the bulk of the mineral resources in the Copperwood Deposit area and include blocks interpolated generally in the first pass. Indicated Mineral Resources are located at the periphery of the measured category where blocks are generally interpolated in the second pass. All other interpolated blocks are categorized in the Inferred Mineral Resource category, including all blocks in the satellite deposits.

The comparison between the 2017 update and the previous 2015 estimate is presented in the Table 3 below. A gain is observed in all resources categories except for the surrounding satellite LCBS, which was not drilled in 2017. That decrease is due to the transfer from Inferred to Indicated and Measured Resource categories.

Data Verification

The qualified person responsible for the Mineral Resource estimates has supervised and reviewed the available data used, including drill logs, assay certificates, down-hole surveys, and additional supporting information sources. The QP is of the opinion that the drill hole database is in good condition and could be used with confidence in the Mineral Resource estimate.

Qualified Person

Réjean Sirois, P. Eng, Vice President of Geology and Resources for G Mining is the qualified person, as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects responsible for the mineral resource estimates for the Copperwood Project as reported herein. He has read and approved the technical portions of this news release.

Carlos H. Bertoni, P. Geo., Vice President, Exploration for Highland, is the qualified person for 2017 drilling program, which generated the data used for the Mineral Resource estimate.

G Mining is completing a NI 43-101 technical report for the mineral resource estimate, to be filed on SEDAR within 45 days of this press release.

ABOUT HIGHLAND

Highland Copper Company Inc. is a Canadian exploration company focused on exploring and developing copper projects in the Upper Peninsula of Michigan, U.S.A. The Company owns the Copperwood deposit through long-term mineral leases. The Company also owns surface rights securing access to the deposit and providing space for infrastructure as required. Highland is fully financed to complete the Copperwood FS Update. It has 459,148,153 common shares issued and outstanding.