Highland Copper Company Inc. (TSX-V: HI) (OTCQB: HDRSF) is pleased to announce that it has signed a binding offer from its joint venture partner, Kinterra Copper USA LLC for the sale of the Company’s 34% interest in the White Pine North Project for aggregate consideration of approximately US$30 million.

This transaction represents a significant milestone in optimizing Highland Copper’s corporate strategy and strengthening its financial position. The proceeds will fund the Company’s planned corporate and Copperwood Project activities, eliminate existing debt, and streamline its overall corporate structure. With a strengthened balance sheet and a clear focus on its 100%-owned, fully permitted Copperwood Project, Highland Copper is well positioned for its next phase of development.

The total consideration consists of US$18.3 million in cash, net of the outstanding principal and accrued interest on the loan made by Kinterra to the Company’s wholly owned subsidiary, Upper Peninsula Copper Holdings Inc., which is expected to total approximately US$11.7 million at closing. In addition, the parties have agreed to suspend cash calls under the White Pine joint operating agreement. The Company will not be obligated to make cash calls through closing, and any such cash calls will be recorded and allocated between Kinterra and the Company only if the transaction does not close.

The divestiture of the Company’s non-controlling interest in White Pine North delivers several key strategic benefits:

• Funded Growth: The net cash proceeds are expected to fund the activities required to advance the Copperwood Project to a construction decision, including necessary detailed engineering and project financing activities.
• Balance Sheet Enhancement: The transaction will allow the Company to eliminate its existing debt, improving financial flexibility and reducing future interest obligations.
• Simplified Corporate Structure: The sale streamlines Highland Copper’s asset portfolio, enabling management to focus entirely on advancing Copperwood.

“This is a truly pivotal moment for Highland Copper,” said Barry O’Shea, CEO of Highland Copper. “The sale of our non-controlling stake in White Pine North delivers immediate, non-dilutive funding that achieves several key strategic objectives at once. We are now well capitalized to push our flagship Copperwood Project to a construction decision, while eliminating debt and simplifying our corporate structure. This move sharpens our focus, de-risks our near-term timeline, and significantly enhances our ability to become the next domestic U.S. copper producer.”

The parties have agreed to work towards completion of the purchase and sale transaction by year end. Completion of the transaction remains subject to the negotiation of definitive agreements, customary closing conditions, and all required regulatory approvals. Highland Copper will provide further updates as the transaction progresses and as development continues at Copperwood.

Moelis & Company LLC acted as exclusive financial advisor and McMillan LLP acted as legal advisor to the Company in connection with the transaction.

About Highland Copper Company

Highland Copper Company Inc. is a Canadian 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 and 34% of the White Pine North project through a joint venture with Kinterra Copper USA LLC. The Company also owns surface rights securing access to the Copperwood deposit and providing space for infrastructure at Copperwood as required. The Company has 737,856,062 common shares issued and outstanding.