Highland Copper Company Inc. announced the results of the Preliminary Economic Assessment ("PEA") and mineral resource estimate for the White Pine North project ("White Pine North") in Michigan, USA. The PEA demonstrates the robust economic strength of this long-lived project. Simultaneously, Highland is pleased to introduce Kinterra Copper USA LLC ("Kinterra") as a joint venture ("JV") partner on the project.

Kinterra will bring additional financial and technical strength required to progress the project through to development. Kinterra has made a cash payment of $30 million to Highland for a 66% stake in the White Pine North project. Additionally, the joint venture has agreed to spend a further $30 million to advance the project through permitting, infill drilling and feasibility study.

Highland continues to make great progress in 2023. Combined, these announcements markedly improve Highland's prospects of advancing its larger White Pine North project while focusing on moving its Copperwood project to construction and operation. Highland believes this is positive for all stakeholders, particularly the State of Michigan where Highland's project development is aligned with the State vision of electrification and regional support for local communities.

Key highlights of the PEA and joint venture transaction include: Robust PEA Results Set Path for White Pine North Advancement: With a significant increase in resource base, an after-tax net present value ("NPV") 8% of $821 million and an after-tax internal rate of return ("IRR") of 20.8%, the project provides strong cash flow and leverage to copper price. Kinterra Invests $30 Million for 66% of White Pine North, Funds Available for Copperwood: The initial $30 million proceeds from the joint venture arrangement allow Highland to initiate early site works at the fully-permitted Copperwood project, where Highland is focused on advancing to development and production. Additional $30 Million Commitment to Advance White Pine North Permitting and Feasibility Study: Kinterra and Highland, as JV partners, have agreed on a further $30 million investment in the project to be funded by Kinterra.

This consists of $20 million representing Kinterra's 66% pro rata expenditure, as well as a $10 million unsecured loan to fund Highland's pro rata expenditure. Highland Set to Advance Key Michigan Assets: With key assets 100% owned Copperwood, 34% owned White Pine North, a consolidated multi-billion pound resource base, and an additional $30 million in liquidity, Highland looks forward to contributing to critically needed US domestic copper supply through production growth with these advanced-stage projects. Key Preliminary Economic Assessment Highlights: The PEA provides a base case assessment of mining the mineral resources of the White Pine North Project.

The PEA considers White Pine North as a stand-alone project, where potential synergies with Copperwood are not considered. The Project is the extension of the historical White Pine mine which operated from 1953 to 1995. The results of the White Pine North PEA demonstrate the long-lived nature of the project with strong economics and cash flows.

Key highlights include the following, with all figures being shown for 100% of the asset: Strong Economic Returns with Leverage to Copperwood project.