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Highlander Silver discovers high grade silver-lead-zinc mineralization at Alta Victoria project and welcomes key team members in Peru

Drill Results

Highlander Silver discovers high grade silver-lead-zinc mineralization at Alta

Victoria project and welcomes key team members in Peru

September 29, 2021 - Vancouver, British Columbia – Highlander Silver Corp. (CSE:HSLV) (the “Company”

or “Highlander”) is pleased to report high-grade rock chip sample results from ongoing reconnaissance

exploration at its 71km2, Alta Victoria silver -polymetallic project (the “Project”) in central Peru. In

addition, the company has added two key members to the local Peruvian team.

Highlights

• New discoveries of high-grade silver-lead-zinc-gold mineralization in previously unworked area s

adjacent to, and northwest of the Buena Estrella prospect and along strike to the Victoria mine

• Rock chip samples from these areas returned up to 270 g/t Ag, 11.25% Pb, 23.70% Zn

• Mineralization is controlled by northeast trending feeder structures and favorable stratigraphic

horizons which hosts highly anomalous multi-element geochemistry in soil and rock samples.

Prospective area grows SW & NW of Buena Estrella

Three northeast trending, mineralised structural corridors , have been identified alo ng strike to the

northwest for 1.2 km (see Figure 1). Mineralisation is hosted in the lower member of the Jumasha

Formation (“Fm”) limestone. Multi-element anomalism has been defined based on a high-density survey

of soil and rock samples using a portable X-Ray Fluorescence (pXRF) analyzer. The survey was conducted

over a 1500 x 500 metre area between the Buena Estrella prospect and the Victoria mine where previously

unknown mineralization was found to occur in outcrop and /or small historic prospect pits . Rock chip

sampling of this mineralization returned high -grade silver, lead and zinc results along with anomalous

gold, copper, arsenic, a ntimony and tellurium (see Table 1). Follow up rock chip sampling collected for

multi-element ICP analysis and detailed mapping in the upper Buena Estrella area has been completed

with sample results pending.

Table 1: Upper Buena Estrella Reconnaissance Rock Sample Geochemistry (ICP multi-element)

Sample

ID

Au

(g/t)

Ag

(g/t)

Cu

(%)

Pb

(%)

Zn

(%)

210205 0.66 189 0.05 0.56 0.03

210206 0.46 98 0.07 3.29 0.49

210207 0.49 244 0.08 3.41 0.19

210208 0.40 133 0.08 1.57 0.11

210209 0.02 50 0.04 1.27 12.40

210421 0.12 270 0.34 11.25 23.70

“We continue to be highly encouraged by the results from our exploration efforts and the discovery

potential at Alta Victoria,” said Ron Stewart, President and CEO of Highlander. “Based on the extent of the

alteration and anomalous geochemistry we’ve identified at surface, together with the size and intensity of

the IP chargeability anomaly , we believe the Alta Victoria has the potential to host a significant deposit

comparable to other major polymetallic deposits in the district. We expect to continue to find compelling

new drill targets to be tested in the coming months.”

Mineralization is spatially associated with feldspar porphyritic dikes and sills and also occurs as poorly

exposed heterolithic, hydrothermal breccia bodies hosted in lower Jumasha Fm limestones. The old

Buena Estrella mine workings occur s within a 300-metre wide , northeast trending, white, bleached and

variably leached hornfelsed alteration zone. The trend of th is structural corridor is on strike with the

Adriana North prospect over 500 metres to the NE. Adriana North hosts multiple anomalous rock samples

collected by Highlander including the highest-grade sample taken thus far on the property that assayed

4820 g/t silver. Mineralization at Adriana North also occurs as a manto-style layer at the contact between

the siliciclastic Farrat Fm and the overlying Pariahunca Fm limestones. The Company believes this to be a

highly prospective stratigraphic horizon dipping moderately to the west-southwest.

Buena Estrella Prospect

The Buena Estrella prospect comprises 2 underground workings separated by approximately 25 metres

vertically. Quartz-barite-sulfide-oxide “feeder” veins featuring pyrite, Zn, Pb and Cu oxides trend NE-SW

and dip steeply to the NW. One select sample from a 0.3 metre thick sub-horizontal manto in the upper

level assayed 228 g/ Ag, 0.45% Cu, 11.3% Pb, 30.1% Zn and 0.14% Mo. (see: NI 43-101 Technical Report

titled “ Alta Victoria Polymetallic Property, Huaros and Marcapomacocha Districts, Canta and Yauli

Provinces, Departments of Lima and Junín, Peru”, dated effective April 30, 2021). In the broader sense the

Buena Estrella Prospect is part of the Pachas target area which also incorporates the Victoria Mine,

Adriana North, Adriana East, and the Sanguinetti mine.

Victoria Mine

The Victoria Mine was active on a small scale up until 2018. The property owner and operator focused on

select high grade lead-silver mineralisation host ed in Jumasha Fm limestone. P roduction over a 15 year

time span is estimated to be 1500 metric tonnes of ore with an average grade of 10% lead and 10 ounce

per tonne (311 g/t) silver.

Ongoing Exploration

Most of this year´s field work has been focused on better defining known targets, specifically in the Santa

Teresita and Pachas areas. A 61 line-km of UAV (drone) magnetic survey along with a 270-station gravity

geophysical survey w ere recently completed over roughly 2.5 square kilometer s in the Pachas area.

Compilation and data analysis will be completed once the final sample results from ALS labs are received.

Going forward, field work will concentrate on areas that have received little or no attention in the past.

It is important to note that of the 7,132 hectares of exploration ground cont rolled by Highlander, over

half of the project area has yet to be explored and only 7 drill holes have been drilled to date.

The Alta Victoria Project is located 160 kilometers northeast of Lima and consists of 18 mining concessions

within the Central Cordillera Polymetallic Mineral Belt, which hosts major scale silver and polymetallic

mineral deposits . The district has produced over 1.5 billion ounces silver historically from carbonate

replacement deposits , skarn, vein, manto, and diatreme related deposits. Five major mines

(Uchucchacua, Santander, Chungar, Iscaycruz and Casapalca) lie along and/or adjacent to the Alpamarca

Fault to the NW and SE of the Project. Concessions controlled by Highlander straddle nearly 14 km of the

Alpamarca/Chonta Fault at the heart of this district. Note that information regarding mines in the district

is not necessarily indicative of the mineralization of the Alta Victoria property.

Key Positions Filled

The company is very pleased to announce the addition of Joanna Liu, as company administrator and Alex

Tadeo, Exploration Manager - Peru. Both Ms. Liu and Mr. Tadeo have extensive experience in the mineral

exploration and mining profession.

Ms. Liu has worked in the administrator capacity and held positions as General Manager and Director for

Peru based junior exploratio n companies starting in 2004 with Gallant Minerals and continued in such

roles for Canadian Shield Resources, Estrella Gold, Alianza Minerals and CAPPEX Mineral Ventures leading

up to the combination with Lido Minerals resulting in the formation of Highlander Silver Corp. In addition

to being a highly competent administrative professional, Ms. Liu holds an associates degree in Peruvian

Mining Law.

Mr. Tadeo will take on much of the day to day management of Highlander´s exploration activities in Peru.

As Senior Exploration Geologist, Alex brings over 14 years of Peruvian and international exploration and

mining experience and is credited with increasing the reserve base at the ar tisanal Santa Rosa mine to

7Moz Ag resulting in a mine production rate of 350 tpd. In his most recent role working with the Stellar

Mining Group, Alex led his exploration team in discovering the Maria -Cecilia Cu-Mo porphyry system

subsequently sold to Camino Minerals.

Phil Anderson, Exploration Director for Highlander commented “I could not be more pleased than to have

the opportunity to continue working with Joanna and have Alex join the local team. Both individuals bring

the talent, knowledge, competence and professionalism needed for these two critical positions to support

and lead Highlander to exploration success in Peru.”

Additional information about Highlander and its mineral projects can be viewed on the Company’s SEDAR

profile at www.sedar.com and its website at www.highlandersilver.com, including the technical

information referenced in this news release which can be found in the NI 43-101 Technical Report on the

Project filed on SEDAR under Highlander Silver Corp.'s p rofile and is available for download at the link

above.

Quality Control

All new rock and soil samples reported in this press release were delivered to ALS Peru S.A., a certified

laboratory located in Lima, Peru for preparation and analysis. Rock samples were weighed, dried, crushed

to 70% <2mm and riffle split while soils were weighed, dried and screened to -180 µm. A 250g subsample

was pulverized to 85% <75 µm for both rock and soil sample types. All samples were assayed using a 30g

nominal weight fire assay with atomic absorption finish (Au -AA25) for gold, and 48 elements by 4 -acid

ICP-MS (method ME-MSC61). When MS61 results were >100ppm for Ag and 10,000 for Pb, Zn and Cu

assays were reported using four -acid digest method (Ag -OS62 and base metal ME -OG62). No standards

or blanks were inserted by Highlander. ALS routinely ins erts certified gold, silver and base metal

standards, blanks and pulp duplicates, and results of all ALS QA/QC samples are reported. The standard,

blank and duplicate samples used by ALS were considered sufficient QA/QC for Highlander’s sample

analysis.

Hand-held Xray Refraction Fluorescence (pXRF) analysis has been conducted in the field on rock and soil

using a model XRF540622 SA GEOCHEM ANALYSER KIT. The instrument is rented from AMC Reflex located

in Lima, Peru. The instrument is rented complete with a calibrating disc and a series of 6

standards. Highlander field technicians are careful to periodically re-calibrate the instrument throughout

each day in the field to maintain the maximum level of data integrity that is collected.

Qualified Person Statement

All scientific and technical information contained in this news release was prepared and approved by

Ronald Stewart, P.Geo., President and CEO of Highlander Silver Corp. who is a Qualified Person as defined

in NI 43 -101. Mr. Stewart has verified the scientific and technical information disclosed in this news

release by reviewing all of the sampling, analytical and drilling data from the Company’s drill program, the

technical report on the Project, as well as reviewing and referencing published scientific papers, historical

NI 43 -101 reports, news releases, and government assessment reports related to the Company’s

properties that outline their geology and structure, mineralization potential, and deposit style.

For further information, please contact:

Ronald Stewart

Chief Executive Officer

Highlander Silver Corp.

810 - 789 West Pender Street

Vancouver, BC V6C 1H2

(604) 687-2038

[email protected]

About Highlander Silver Corp.

Highlander Silver Corp. is a mineral exploration company focused on the exploration of the Alta Victoria

silver-polymetallic project in central Peru, as well as targeting the acquisition of additional mineral

projects by leveraging the team’s significant experience in Peru and South America more widely.

Neither the Canadian Securities Exchange ( CSE) nor the Investment Industry Regulatory Organization of

Canada (IIROC) accepts responsibility for the adequacy or accuracy of this news release.

Forward-Looking Information

Certain i nformation contained in this news release constitutes “forward -looking information” under

Canadian securities legislation. This includes, but is not limited to, information or statements with respect

to the future exploration plans of the Company, costs and timing of future exploration, anticipated results

of exploration, potential mineralization of the Project, potential for future acquisitions and anticipated

timing of such acquisitions . Such forward looking information or statements can be identified by the use

of words such as “believes”, “plans”, “suggests”, “targets” or “prospects” or variations (including negative

variations) of such words and phrases, or state that certain actions, events or results “will” be taken, occur,

or be achieved. Forward-looking information involves known and unknown risks, uncertainties, and other

factors which may cause the actual results, performance, or achievements of the Company and/or its

subsidiaries to be materially different from any future results, performance, or achievements expressed or

implied by the forward-looking information. Such factors include, among others, general business,

economic, competitive, political and social uncertainties, the actual results of current exploration activities,

conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future

prices of precious and base metals, possible variations of ore grade or recovery rates, failure of plant,

equipment, or processes to operate as anticipated, accident, labour disputes and other risks of the mining

industry, and delays in obtaining governmental approvals or financing, or in the completion of

development or construction activities. Although the Company has attempted to identify important factors

that could cause actual actions, events or results to differ materially from those described in forward-

looking information, there may be other factors that could cause actions, events or results to differ from

those anticipated, estimated or intended. Forward-looking information contained herein are made as of

the date of this news release. There can be no assurance that forward-looking information will prove to be

accurate, as actual results and future events could differ materially from those anticipated in such

statements. The Company undertakes no obligation to update forward -looking information if

circumstances or management’s estimates or opinions should change , except as required by applicable

securities laws. Accordingly, the reader is cautioned not to place undue reliance on forward-looking

information.