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Drilling at 543S is complete for now and both diamond drills are being moved to the G-2 prospect where 31 historic holes drilled in the 1970s indicate potential for chalcocite mineralization geologically similar to that found in the 543S deposit.

Geology

Lens-like zones of mineralization, largely in brecciated tops of amygdaloidal Precambrian basalt lava flows, consist mostly of primary chalcocite accompanied by small amounts of native copper and native silver. Silver in the copper-bearing zones varies mostly from 1-15 g/tonne Ag. Traces of other sulfide minerals are also present. Mineralization comes to the bedrock surface and is covered by 3 to 30 meters of glacial deposits. The 543S deposit is in the western portion of a 20-mile long belt of chalcocite prospects that extends east from a belt of large native copper mines, centered near the town of Calumet, Michigan, that were mined for about 130 years before closing in 1968 due to low copper prices.

The 2012 drill holes are within an area of 101 historic diamond drill holes called the 543S sulphide deposit, a zone of chalcocite mineralization that was explored from 1973-1977 and briefly in the mid-nineties. The 543S deposit contains a historic resource estimate of 4.5 million short tons averaging 2.27% Cu at a 0.75% Cu cut-off grade as described in a Technical Report by Behre Dolbear & Company, Ltd. titled "Centennial and Kingston Native Copper, 543S, and Other Copper Sulfide Properties, Houghton and Keweenaw Counties, Michigan, USA'' dated September 29, 2011. The Company has not completed the work necessary to classify the historical estimate mentioned above as current mineral resources. The Company is not treating the historical estimate as current mineral resources as defined in NI 43-101 and the historical estimate should not be relied upon. The historical resource estimate is contained in six separate lenses averaging 5.0 meters (16.5 ft.) true thickness that dip about 40 degrees to the north.

Drilling, sampling, assaying, and QAQC

All holes reported on Table 1 are inclined to the south along section lines shown on Figure 1. Drill hole inclinations are selected to approximate a true width intersection of the mineralized lenses based on regional information on the dips of the lava flows. Holes reported as unmineralized contain less than 3 continuous meters averaging at least 0.20% Cu and are mostly confined to edges of the 543S deposit. Down-hole surveys are made for all holes.

All technical information for the 543S exploration program is collected under a formal quality assurance and quality control (QAQC) program that has been reviewed by two independent qualified persons as defined in NI 43-101. Samples are taken under the direction of qualified geologists and stored in sealed bags. Samples are then placed in sealed containers and delivered via courier or common carrier to Accurassay Labs and ActLabs, both certified analytical facilities in Thunder Bay, Ontario, Canada for analysis. Copper and silver contents are determined at both labs using a four acid digestion procedure.

The technical information contained in this news release has been reviewed and approved by Ross R. Grunwald, PhD., Vice president - Exploration for the Company. Dr. Grunwald is a qualified person as defined in NI 43-101.

Keweenaw Copper Project

The Keweenaw Copper Project covers about 13,000 acres of mineral rights and is being explored under a Mining Venture Agreement between Highland and BRP LLC. The agreement allows Highland to earn a 65 percent interest by spending US$11.5 million in expenditures on the project and providing a feasibility study by October 26, 2015. More information about the Keweenaw Copper Project is available in Behre Dolbear's NI 43-101 Technical Report, available on the Company's website at www.highlandcopper.com and on SEDAR at www.sedar.com.