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Highland Copper announces receipt of mining and other permits for its Copperwood Project and provides a corporate update

Corporate Updates

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Highland Copper announces receipt of mining and other permits for its Copperwood

Project and provides a corporate update

Longueuil, Canada, January 18, 2019. Highland Copper Company Inc. (TSXV: HI, OTCQB: HDRSF)

(the “Company”) is pleased to announce the receipt of the mining, air and dam safety permits from the

Michigan Department of Environmental Quality (“MDEQ”) for its Copperwood project located in the

Upper Peninsula, Michigan, USA.

Mining Permit

The MDEQ has approved the Company’s request to amend the Mining Permit originally granted in 2012

to Copperwood Resources Inc., the Company’s 100%-owned subsidiary, under the provisions of Part

632, Nonferrous Metallic Mineral Mining, of the Natural Resources and Environmental Protection Act.

The amendment was required to allow the Company to begin construction at Copperwood in accordance

with the changes to the mine plan and facilities described in the updated feasibility study released on

June 15, 2018.

Upon review and consideration of comments received during a public hearing held on October 24, 2018

and a subsequent written comment period regarding the proposed amendments, the MDEQ issued a final

decision to approve the amendments requested by the Company. The amendments were approved under

certain conditions that the Company will have to meet, namely:

• Provide a revised subsidence monitoring plan for the life of mine and post closure period;

• Provide a plan to conduct confirmation baseline environmental sampling and review prior to the

start of mining operations;

• Reclaim the ore stockpile area and dispose of the geomembrane liner according to regulations;

and

• Reclaim or remove water intake and power supply infrastructure according to approved plans

unless beneficial use agreements are established with another party.

Other key permits received – Air, Dam Safety and Wetlands

Based on the 2018 updated feasibility study on Copperwood, the Company had filed applications with

the MDEQ to either amend, renew or obtain all other permits required to begin mine construction at

Copperwood.

In addition to the Mining Permit, the Company has received three additional key permits from the

MDEQ: the Part 55 Air Discharge Permit, the Part 315 Dam Safety Permit-Tailing Dam and, as

previously announced, the Part 301/303/325 Wetland Permit. The application to obtain a Lake Superior

water intake permit from the US Army Corps of Engineers (COE) is outstanding and a final decision is

expected in the next few weeks.

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Denis Miville-Deschênes, President & CEO of Highland Copper commented: “We have achieved

another important milestone with all major permits required to build and operate the Copperwood mine

now in place. This is the culmination of significant work completed in the past year by our Michigan

team and I believe we have, most importantly, achieved the social license to operate in the community.”

The Michigan team continues to work internally on various aspects to improve the economics of the

project including items such mine design, process plant and mobile equipment selection and financing

options, concentrate transport options study, and power and communication infrastructure planning.

Corporate Update

The state of the capital markets for a company such as Highland and current commodity prices make it

challenging to raise additional funds. Management is looking at various options including issuance of

new equity or debt, sale of assets and other potential strategic transactions. Management’s primary

objective is to raise sufficient funds to meet its existing commitments, to fund management and

administration expenses and to settle its working capital deficiency. However, there can be no assurance

that additional funds will be available or available on terms acceptable to the Company or that a strategic

transaction can be completed.

About Highland

Highland Copper Company Inc. is a Canadian-based company focused on exploring and developing

copper projects in the Upper Peninsula of Michigan, U.S.A. The Company owns the Copperwood Project

through long-term mineral leases. The Company also owns surface rights securing access to the deposit

and providing space for infrastructure as required. The Company has 472,933,689 common shares issued

and outstanding which are listed on the TSX Venture Exchange under the symbol “HI’ and trade on the

OTCQB Venture Market under the symbol “HDRSF”.

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 include, without limitation, the

Company’s ability to raise the required funds to continue its activities and to meet all its commitments.

Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no

assurance that the Company will be able to secure a debt and/or equity financing package or to complete

a strategic transaction. Risks, uncertainties, assumptions and other factors which could cause events or

outcomes to differ materially from those expressed or implied by such forward-looking statements

include, among others, the effects of general economic conditions, commodity prices, risks associated

with exploration and project development, the calculation of mineral resources and reserves; operational

risks associated with mining and mineral processing; fluctuations in metal prices; title matters;

government regulation; obtaining and renewing necessary licenses and permits; environmental liability

and insurance; reliance on key personnel; dilution; the volatility of our common share price and volume;

future sales of shares by existing shareholders; and other risks and uncertainties, including those risks

described in our most recently filed annual financial statements and management’s discussion and

analysis relating to the Company's business and plans for development of the Copperwood project,

available at www.sedar.com. All forward looking statements in this press release are based on

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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, Investor relations

Tel: +1.450.677.2455

Email: [email protected]