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Highlander Silver Reports Results from Drilling at ALTA Victoria & Provides Exploration Update

Drill Results Exploration Programs

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HIGHLANDER SILVER REPORTS RESULTS FROM DRILLING AT ALTA

VICTORIA & PROVIDES EXPLORATION UPDATE

December 28, 2022 - Vancouver, British Columbia – Highlander Silver Corp. (CSE:HSLV) (the

“Company” or “Highlander Silver”) is pleased to provide drilling results from its Alta Victoria project in

Central Peru and provide updates regarding on- going work at the Company´s Politunche project and

generative program.

Highlights

• Significant intercepts at the Santa Teresita target include:

AV 22-12: 4.0m of 153.2 g/t AgEq1 (0.08 g/t Au, 42.54 g/t Ag,0.96% Pb, 1.81% Zn)

AV 22-14: 7.9m of 231.63 g/t AgEq (0.79 g/t Au, 64.53 g/t Ag, 0.82% Pb, 1.82% Zn) including 3.8m

of 316.22 g/t AgEq (1.02 g/t Au, 65.73 g/t Ag, 1.27% Pb, 2.75% Zn)

AV 22-17: 4.7m of 178.15 g/t AgEq (1.13 g/t Au, 13.18 g/t Ag, 0.25% Pb, 1.50% Zn)

• The drilling results at Santa Teresita are interpreted to indicate that the top of a potential ly

significant mineral system has been recognised, analogous to the high grade Uchuccachua silver

mine, located in the same min eral belt, some 90kms from Alta Victoria. Further drilling is required

to test this model.

CEO statement

David Fincham (President & CEO) commented “We are encouraged by the polymetallic mineralisation and

associated alteration drilled at the Santa Teresita target, which has significantly improved our understanding

of its geology and potential. The results con firm the presence of a fertile mineral system returning metre-

length intercepts of silver – gold – lead – zinc mineralisation and associated manganese sulphide. Using

Uchucchacua as an analogue, we believe that we could have drilled the top of a similar st yle system, so

we are now integrating the new drill information into our geological model to focus the next stage of drilling

on targeting the potential ore body at depth.

Unfortunately, our drilling in the Pachas area did not return results that warrant follow up at this stage.

In addition, we are currently completing geochemical sampling and detailed mapping at our Poiltunche

project, 15 kms to the southwest of A lta Victoria, with the objective of identifying new prospective targets

and expanding extents of known targets. We will be reporting on those results in the coming weeks.

Finally, our generative program is now well underway comprising a systematic review of high potential

mineral districts in the Central Andes which we are optimistic will yield attractive opportunities for acquisition

over the coming months.

1 AgEq in this press release is calculated using the following parameters: Au=$1700/oz, Ag=$20/oz, Pb=$0.90/lb,

Zn=$1.20/lb, Cu=$3.0/lb. Metallurgical recovery is assumed to be 100% on all metals, and true width of mineralisation is

unknown.

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Alta Victoria 2022 drill program

The program comprised 1,800.5m of diamond core drilling in 10 holes, and was designed to achieve the

following objectives:

• Complete follow up drilling from the 2020 programme at the Santa Teresita target, and test depth

extents of previously undrilled outcropping mineralisation ( View here: 2020 Scout Drill program

Results);

• Complete first pass reconnaissance drilling in the Pachas area, testing the Adriana North and

Buena Estrella targets (View here: 2022 drill targets defined).

Fig 1. Alta Victoria Geology and Pb – Zn soil anomalies (>60th percentile) highlighting the Santa

Teresita target and Pachas area (Buena Estrella & Adriana Norte targets). 2020 and 2021 drill

traces shown.

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Santa Teresita Drilling: Total drilling of 1,092.5m in six holes.

Drilling successfully tested depth extents of outcropping breccias and replacement style mineralisation,

returning significant intercepts in holes drilled in sections approximately 100 metres apart.

Fig 2. Santa Teresita geology and drilling to date.

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Drill hole AV22-12 returned 4.0m of 0.08 g/t Au, 42.54 g/t Ag, 0.96% Pb and 1.81% Zn for 153.2 g/t AgEq

from 71.90m.

AV22-14, drilled in the same section, returned 7.9m of 0.79 g/t Au, 64.53 g/t Ag, 0.82 % Pb and 1.82% Zn

for 231.63 g/t AgEq from 68.60m.

AV22-17 drilled approximately 100m to the South targeting the same mineralised trend returned 4.70m of

1.13 g/t Au, 13.18 g/t Ag, 0.25% Pb and 1.50% Zn for 178.15 g/t AgEq from 100.50m. AV22- 17 also

intersected a number of other mineralised int ervals (see table 1) supporting the concept of potentially

continuous mineralisation from that reported 100m to the North.

Table 1. Drill Intercepts – Santa Teresita Target.

Discussion

The silver, gold, lead, zinc and manganese sulphide (alabandite) mineralisation drilled at Santa Teresita is

analogous to the upper levels of several significant deposits in the Miocene Polymetallic Mineral Belt of

central Perú. Many of these deposits sit on or near the regionally significant Alpamarca fault (see fig. 3).

Particularly of note is the Uchucchacua Mine where historic high grade silver production totals over 310

Moz since production began in 1975 (Buenaventura, 2022 Investor Presentation). T he presence of

alabandite is diagnostic of the upper levels of Uchucchacua which carries moderate grades of silver and

base metals. In addition, manganiferous calcite veins associated with zones of hydrothermal alteration and

mineralisation present at Alta Victoria are also noted at Uchucchacua, further suggesting that similar ore-

forming processes were in play at the time of deposit formation.

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Fig. 3 Location map of the Central Peru Polymetallic Mineral Belt, highlighting the relative positions

of Alta Victoria and Uchucchacua, approx. 90kms along strike from one another.

A comparison of the relative depths of emplacement of alabandite and base metal emplacement at these

two mineral systems , and review of the mining levels at Uchucchacua indicates that significant potential

remains at Alta Victoria some 100m to 300m below the current depth of drilling (see fig. 4).

Fig. 4 Comparative models of the Uchucchacua mine (section adapted from Petersen et al, 2004)

and the Santa Teresita target (Alta Victoria project), highlighting the untested target zone at Santa

Teresita.

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Pachas Area – Adriana North and Buena Estrella targets

Four drill holes totaling 708m tested silver, lead, zinc and gold manto-style mineralisation mapped and

sampled at the Adriana North artisanal mine, and a northeast trending mineralised structural corridor

(see News Release of May 13, 2022).

Figure 4: Pachas area drilling with geology, geochemistry and area of geophysics coverage.

Two holes, AV22-08 and AV22-11 returned short (<2m) mineralised intercepts of note (see table 2),

however the Company does believe that these results warrant follow up at this time, allowing for full focus

on the Santa Teresita target.

Table 2. Drill Intercepts – Pachas area.

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Other areas of focus:

Politunche high grade silver – gold project

Following the purchase of Solitario Zinc´s Politunche data set (see Press Release of August 9th, 2022), the

Company has integrated all available data resulting in the definition of new target areas around subvolcanic

dome margins. These areas require detailed mapping and sampling as the next step to develop ing drill

targets. This work, plus refining existing gold targets at the North of the property, will be completed before

year end.

Central Andes generative program

The Company recognises that current challenging market conditions are an opportunity to identify and

acquire compelling projects that have the potential to yield economic discoveries in the near to medium

term. As such, a systematic review of opportunities in the Central Andes region has begun and further news

on this program is expected over the coming months.

Sampling Quality Control

All Highlander Silver sample assay results have been independently monitored through a quality control /

quality assurance (“QA/QC”) protocol which includes the insertion of blind Certified Reference Material

(CRM or standards), coarse blanks as well as drill core duplicate samples. Logging and sampling are

completed at Highlander Silver’s core handling facility located at the Obrajillo site. Drill core is diamond

sawn on site and half drill-core samples are securely transported to CERTIMIN laboratories (“C ERTIMIN”)

sample preparation facility in Lima, Peru.

Silver and other elements are also determined by ICP methods. Samples of more than 10 g/t gold and 100

g/t silver exceeding the limits are re-analysed by fire assay with gravimetric finish by CERTIMIN. Samples

with more than 10000 ppm of Cu, Pb, Zn and Mn are re-analysed by CERTIMIN by Atomic Absorption (AA).

Highlander Silver is not aware of any drilling, sampling, recovery or other factors that could materially affect

the accuracy or reliability of the data referred to herein. CERTIMIN Laboratories is independent of

Highlander Silver.

Qualified Person

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

La Torre, (Qualified Person), MAusIMM (CP). Mr. La Torre has verified the scientific and technical

information disclosed in this news release by reviewing the sampling, analytical and drilling data from the

Property.

About Highlander Silver

Highlander Silver Corp. is a mineral exploration company focused on the exploration of silver -polymetallic

projects 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. Additional information about

Highlander Silver and its mineral projects can be viewed on the Company’s SEDAR ( www.sedar.com)

profile at www.sedar.com and its website at www.highlandersilver.com

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.

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For further information, please contact:

David Fincham

Chief Executive Officer

Highlander Silver Corp.

(604) 283 7630

[email protected]

Forward-Looking Information

Certain information 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, permitting and timing of future exploration. Such forward

looking information or statements can be identified by the use of words such as “anticipates”, “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, , changes in project parameters as plans

continue to be refined, , accident, labour disputes and other risks of the mining industry, and delays in

obtaining governmental approvals or financing. 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.