Highland Copper Announces Final Approval of US$50 Million Grant From the State of Michigan for Copperwood Project
Highland Copper Announces Final Approval of US$50 Million Grant From the
State of Michigan for Copperwood Project
VANCOUVER, British Columbia, Aug. 25, 2026 -- Highland Copper Company Inc. (TSXV: HI; OTCQB: HDRSF) (" Highland
Copper" or “Highland” or the "Company") is pleased to announce final approval by the Michigan Strategic Fund of US$50
million in performance-based grant funding under the Strategic Site Readiness Program (" SSRP") to support the development
of the Company’s fully permitted Copperwood Project (" Copperwood" or the " Project") and related infrastructure
improvements in Gogebic County, Michigan. No further State of Michigan approvals are required.
The US$50 million award consists of:
• US$44,971,691 to Copperwood Resources Inc., a wholly owned subsidiary of Highland Copper, to support eligible
infrastructure expenditures associated with the development of Copperwood; and
• US$5,028,309 to the Gogebic County Road Commission to support critical local infrastructure improvements
associated with the Project and benefiting the broader region.
In addition to the SSRP funding, the Gogebic County Road Commission has secured a US$7,542,463 Transportation
Economic Development Fund ("TEDF") Category A grant from the Michigan Department of Transportation ("MDOT"). Together,
the TEDF and SSRP grants will provide approximately $12,570,722 million for improvements to County Road 519, improving
road safety, reliability and access while supporting the broader region.
The final grant approval followed a thorough review of the Copperwood Project and was recommended by the Michigan
Economic Development Corporation (“MEDC”), reflecting the importance of the Project’s development to the Upper Peninsula
and the Company’s approach to responsible mining. The funding will be provided through performance-based reimbursements
for eligible site readiness and infrastructure expenditures, including roads, power and communications infrastructure required
to advance Copperwood. These investments are also expected to deliver broader regional benefits through improved
transportation, utility infrastructure and cellular and broadband connectivity.
Barry O’Shea, Chief Executive Officer of Highland Copper, commented, “Final approval of this US$50 million investment
represents an important milestone for Copperwood and a strong endorsement of the Project’s potential to deliver meaningful
economic benefits to Michigan’s Upper Peninsula while meeting the state’s rigorous environmental standards. We are grateful
for the support of the State of Michigan, Gogebic County and the many local stakeholders who have supported the Project
throughout this process.
This funding also represents an important milestone in the overall project financing. With this grant secured, in addition to the
Letter of Interest from the U.S. Export Import Bank, Highland’s capacity to finance Copperwood is considerably strengthened.”
Michigan State Senator Ed McBroom, commented, “The grants today from the state of Michigan are a wonderful investment in
communities and infrastructure that is long deserved and overdue. Highland Copper’s willingness and patience to leverage this
assistance for publicly accessible infrastructure along with its own investment in it and the mine itself, along with all the
benefits the mine provides to the region and nation, is a major victory for the UP, Michigan, and the nation.”
For additional details, see the State of Michigan’s press release regarding the Copperwood Project and related infrastructure
investments: https://www.michiganbusiness.org/press-releases/2026/08/state-of-michigan-celebrates-380-new-jobs-
infrastructure-improvements-coming-to-western-upper-peninsula/.
The grant is subject to the completion of a definitive grant agreement with the MEDC, and is conditional upon the Company
providing evidence, on or before March 31, 2028, that it has obtained commitments satisfactory to the MEDC for
US$150,000,000 in additional project financing (the “ Project Milestone ”). Once the Company demonstrates that it has met
the Project Milestone, it will be eligible for reimbursement of expenditures made on or before March 31, 2033, on site
preparation and improvement necessary to support the development of the Project. The grant is subject to certain completion
milestones, including that the Company has established a minimum of 380 qualified jobs at the Project.
For more than a decade, the Copperwood team has worked closely with local and regional communities, government
representatives and regulatory bodies throughout Michigan’s Upper Peninsula. That engagement has informed the Project’s
development alongside an extensive permitting and environmental review process, with environmental controls, mitigation
measures and wetland creation incorporated into Copperwood’s design and development plans. The Copperwood project is
supported by more than 22 formal resolutions from governmental agencies and 10 letters of support from local and regional
stakeholders, reflecting broad recognition of the long-term economic opportunity associated with the responsible development
of Copperwood.
With Copperwood fully permitted and this important state funding now approved, the Project is positioned to bring significant
investment and economic activity to the Western Upper Peninsula through local employment, procurement, services and
infrastructure development. Copperwood also has the potential to establish a new domestic source of copper and strengthen
the U.S. supply chain for a critical mineral essential to energy infrastructure, manufacturing and economic security.
About Highland Copper Company
Highland Copper Company Inc. is focused on developing the Copperwood Project in the Upper Peninsula of Michigan, U.S.A.
The Company also owns surface rights securing access to the Copperwood deposit and providing space for infrastructure at
Copperwood as required. The Company has 738,188,122 common shares issued and outstanding. Its common shares are
listed on the TSX Venture Exchange under the symbol "HI" and trade on the OTCQB Venture Market under symbol "HDRSF".
More information about the Company is available on the Company's website at www.highlandcopper.com and on SEDAR+ at
www.sedarplus.com.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking statements” and “forward-looking information” (collectively “forward-looking
statements”) within the meaning of applicable Canadian securities legislation. These statements include, without limitation,
statements related to (i) the terms anticipated terms of the grant agreement, which have not yet been finalized, (ii) projections
regarding the jobs anticipated to be created at the Copperwood Project, (iii) the potential long term economic benefits of the
Copperwood Project for the Western Upper Peninsula and to the US economy generally. Forward looking statements are
subject to a number of assumptions, which management believes to be reasonable but may prove to be incorrect. Important
factors that could materially impact the Company’s expectations include: the Company and MEDC may not conclude a grant
agreement, and the terms of the grant agreement may prove to be different than the parties’ current expectations; whether the
Company will be able to identify US$150,000,000 in funding for the Copperwood project; that the Company will be able to meet
the new jobs condition within the time specified by the grant; changes to the US public policy supporting domestic production
of copper; opposition by third parties to the Copperwood project; changes in Copperwood project parameters as plans continue
to be refined; availability of services, materials and skilled labour to complete work programs, testing and drilling; effects of
regulation by governmental agencies; the fact that permit extensions, renewals and amendments are subject to regulatory
approvals, which may be conditioned, delayed or denied; there is no assurance that the grant funding we have applied for will
be available, and any such approval may be subject to conditions; advancement to a construction decision at Copperwood is
subject to additional studies, for which the Company will require additional funds, which may not be available on a timely basis
and accordingly could delay a construction decision; unexpected cost increases, which could include significant increases in
estimated capital and operating costs and the effects of inflation; fluctuations in metal prices and currency exchange rates;
general market and industry conditions, the results of baseline studies and test work may result in unforeseen issues, any of
which could delay or hamper advancement of the project and thereby materially impact the Company’s ability to draw down on
the grant, as well as the other risks set out in the Company’s public disclosure documents, including the AIF, filed on
SEDAR+. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements
in this news release are reasonable, undue reliance should not be placed on forward looking statements. 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 or media requests, please contact:
Barry O'Shea, CEO
Email: [email protected]
Phone: +1-450-677-2455
Website: www.highlandcopper.com