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Highland Copper announces filing of Interim Financial Statements and provides an Update of Activities

Financials

Highland Copper announces filing of Interim Financial Statements

and provides an Update of Activities

Longueuil, Canada, May 16, 2017. Highland Copper Company Inc. (TSX -V: HI) (the “Company”)

announces that it has filed on SEDAR its interim financial statements and MD&A for the third quarter

ended March 31st, 2017. At March 31, 2017, the Company’s working capital totaled $21.0 million, which

includes cash of $26.3 million. The Company’s cash position includes the proceeds from the private

placement completed in four tranches (between November 30, 2016 and March 24, 2017) for aggregate

gross proceeds of $30.0 million. A total of 300 million units, with each unit comprised of one common

share and one half of one common share purchase warrant, were sold at $0.10 per unit. Each warrant is

exercisable for a period of 12 months from its respe ctive issue date at an exercise price of $0.15 per

share. An amount of $1.1 million was invested during the interim period on exploration and evaluation

activities, which consisted mostly of drilling expenses at the Copperwood Project.

Drilling program at the Copperwood Project

In February 2017, the Company commenced a 44 -hole, 9, 200 meters core drilling program at its

Copperwood Project, designed to upgrade the current inferred resources at the eastern section of the

deposit, obtain metallurgical samples for analysis and carry out geotechnical studies to refine the mining

plan.

On April 6, 2017, drilling at the Copperwood Project was suspended due to an early onset of thawing

and deteriorating ground conditions alongside County Road 519 in Gogebic County. At this site, drilling

caused ground erosion, which is being restored by the Company supported by reputable environmental

consultants. At the time that drilling was suspended, 22 drill holes and 4,600 meters had been completed,

with one hole temporarily abandoned. All of the drilling at the western section of the Copperwood

deposit was completed. Assay samples have been sent to Ac tivation Laboratories in Thunder Bay,

Ontario, for analysis and results will be released in due course. All samples for geotechnical testing have

been shipped to specialized laboratories. The Company expects to complete the suspended drilling

program once ground conditions improve and it receives all required permits from the Michigan

Department of Environmental Quality.

Copperwood Feasibility Study

The Company engaged G Mining Services Inc. as lead consultant for the preparation of an update to the

Feasibility Study (“FS Update”) on the Copperwood Project that had been completed in 2012. Other

professional services firms will be engaged over time for their expertise in specified areas.

The objectives of the FS Update are to incorporate additional resources and reserves not included in the

2012 Copperwood feasibility study prepared by the previous owner, to explore alternative mining

methods to determine the method that will generate the most value for the project (including the

Caterpillar continuous mining Rock Straight System), to update the infrastructure engineering and to

produce an optimized flowsheet to maximize ore recoveries.

The FS Update, which is the Company’s main priority, is expected to be completed by the end of June

2018.

Other Projects

The Company also aims to finalize the acquisition of the White Pine Project as soon as is practicable

and is evaluating other opportunities in Michigan.

Qualified Person

The technical information in this MD&A has been reviewed and approved by Carlos Bertoni, P. Geo,

Executive Vice President, Project Development of Highland, and a qualified person under Canadian

National Instrument 43-101.

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 has 459,148,153

common shares issued and outstanding. More information about the Company is available on the

Company’s website at www.highlandcopper.com and on SEDAR at www.sedar.com.

CAUTIONARY STATEMENT

This press release contains certain forward -looking statements within the meaning of applicable

Canadian securities legislation. These forward -looking statements involve certain risks and

uncertainties that could cause actual results to differ, including uncertainties regarding the timing and

results of the drilling program, the timing and results of the update to the Copperwood feasibility study,

and the completion of the acquisition of the White Pine Project. There can be no assurance that such

forward looking information will occur for various reasons including those risks described under Risks

and Uncertainties in the Company’s interim financial statements and management ’s discussion and

analysis for the 3rd quarter ended March 31, 2017. All forward looking statements in this press release

are based on information available to the Company as of the date hereof, and the Company undertakes

no obligation to update forward-looking statements except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in

the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

For further information, please contact:

Denis Miville-Deschênes, President & CEO

David Charles, Manager, Investor Relations

Tel: 1.450.677.2455

Email: [email protected]

Website: www.highlandcopper.com