Mr. Barry O'Shea reports

HIGHLAND COPPER IDENTIFIES KEY OPTIMIZATION OPPORTUNITIES THROUGH DETAILED ENGINEERING AT THE COPPERWOOD PROJECT

Highland Copper Company Inc. has provided an update on continuing engineering and project optimization efforts at its Copperwood project located in Michigan, United States. The results of the optimization work, including the previously announced process plant redesign, are expected to be incorporated into an updated feasibility study. This updated FS will support project development planning and project financing initiatives.

Highlights:

• Evaluating lower cut-off grades to expand mineable resources: Continuing studies are assessing lower cut-off grades based on a long-term copper price of approximately $4.80 (U.S.) per pound, with the potential to convert additional measured and indicated mineral resources into mineable reserves.
• Ore sorting technology to unlock additional resource potential: Bulk ore sorting technologies are being evaluated to potentially incorporate the upper copper-bearing sequence (UCBS) resource, which hosts 10.2 million tonnes in the measured and indicated category grading 1.1 per cent copper into future mine plans, increasing operational flexibility and expanding the project's economic resource base.
• Geotechnical studies support potential mine design enhancements: Updated geotechnical interpretations, combined with conventional room-and-pillar mining methods, may enable optimization of mining heights and pillar dimensions while allowing dilution to be sourced from the mineralized hangingwall rather than the floor.
• Simplified process plant design expected to enhance project economics: Building on previously announced metallurgical optimization work, the updated FS is expected to incorporate a simplified process flowsheet designed to reduce secondary milling requirements, lower energy and reagent costs, decrease plant footprint, and, most importantly, increase copper recoveries to 87.6 per cent, relative to 86.0 per cent in the 2023 feasibility study.
• Updated FS targeted for Q1 2027: Given the improvement in long-term consensus copper prices since the 2023 feasibility study, the updated FS is expected to incorporate revised mineral resources and reserves, mine and process optimization initiatives, and updated capital and operating costs, reflecting the significant advancement of the Copperwood project.
• Advancing toward project financing: Front-end engineering and design (FEED) advancing toward 40-per-cent completion in 2026, positioning Copperwood for project financing and technical due diligence activities.

Barry O'Shea, chief executive officer of Highland Copper, stated: "As we continue our integrated mine plan review against a backdrop of significantly improved long-term consensus copper prices, we are encouraged by the opportunities to further optimize Copperwood through mine design, processing and engineering enhancements. These initiatives have the potential to strengthen project economics and will be incorporated into the updated feasibility study. With Copperwood advancing toward a construction decision, the project is entering an increasingly important stage of development at a time when few new copper projects are positioned to come on line in the United States in the near term. As demand for domestically sourced critical minerals continues to grow, we believe Copperwood is strategically positioned to play an important role in the future U.S. copper supply chain."

Integrated mine plan review

Following the successful redesign of the process plant flow sheet, the current focus on engineering is an integrated mine plan review to evaluate potential optimizations to the mine plan, including revisions to cut-off grade assumptions and geotechnical parameters. The integrated mine plan review will also conclude on final design criteria and assumptions.

Evaluation of reduced cut-off grade: At a long-term consensus copper price of approximately $4.80 per pound, Highland is evaluating Copperwood mineral resources and reserves at reduced cut-off grades compared with cut-off grades applied in the company's 2023 feasibility study. Early indications include the potential addition of measured and indicated resources into the mine plan, although the impact of this change on mineral reserves has not yet been determined. The potential impact on mineral resources is consistent with the sensitivity analyses presented in the 2023 feasibility study.

Evaluation of the upper copper-bearing sequence (UCBS): The company is also evaluating the potential application of bulk ore sorting technologies to selectively reject lower-grade or barren material between the lower copper-bearing sequence (LCBS) and upper copper-bearing sequence (UCBS). The current mineral resource estimate includes 54.2 million tonnes in the measured and indicated category at a 1.51-per-cent copper grade. Of this, the UCBS represents 10.2 million tonnes in the measured and indicated category at a 1.1-per-cent copper grade, none of which is included in the reserve mine plan. At a reduced cut-off, and with the benefit of bulk ore sorting, the UCBS may come into consideration from a mine plan perspective. This work remains preliminary in nature, and there is no certainty that such technologies will be implemented or that the UCBS may come into the mine plan.

Evaluation of geotechnical assumptions: As part of the integrated mine plan review, Highland is also reconsidering Copperwood's geotechnical assumptions. Geotechnical investigations completed to date, including laboratory and field testwork, which indicate that the previously assumed requirement to maintain a 30-centimetre beam of GLAM material may not be necessary. This interpretation, combined with the adoption of conventional room-and-pillar mining methods, may enable optimization of mining heights and pillar dimensions. It may also allow dilution from the mineralized hangingwall, rather than the floor. These design changes remain subject to continuing engineering validation.

At the same time, Highland is reassessing productivity, ground support and labour assumptions. The consolidated set of updated assumptions and final design criteria will be incorporated in the updated FS.

Mineral processing and metallurgical testwork

A metallurgical testwork program completed in September, 2025, evaluated alternative processing configurations and reagent schemes. Key highlights included:

• Evaluation of a mill-float-mill-float (MF2) flowsheet incorporating a desliming stage;
• Reduction of mass reporting to secondary milling through rejection of up to approximately 25 per cent of primary rougher tailings;
• Estimated comminution energy reductions of approximately 10 per cent to 13.7 per cent;
• Development of an optimized reagent scheme with the potential to reduce operating costs by up to $1.00 per tonne milled;
• Projected average life-of-mine metallurgical performance, incorporating ultrafine flotation and the optimized flowsheet, is estimated at approximately 87.6-per-cent copper recovery (relative to 86.0-per-cent copper recovery in the 2023 FS) at a 25-per-cent concentrate grade.

The simplified plant is anticipated to decrease overall footprint, reducing structural, civil, platework, piping and installation capital. A reduced footprint also naturally reduces environmental impact. The revised process flowsheet will be incorporated into the update FS.

These projections are based on testwork and engineering assumptions and have not yet been demonstrated under operating conditions. The company notes that metallurgical recoveries are subject to variability and may differ from test work results.

Tailings management

Following the metallurgical program, a tailings dewatering testwork campaign was conducted at Responsible Mining Solutions Corp. (RMS) in Sudbury, Ont. The results indicate that thickened tailings with a target density of approximately 55-per-cent solids by mass can be produced under test conditions.

The use of thickened tailings is being evaluated as part of the design of the tailings deposition facility (TDF) and may reduce the overall TDF footprint, potentially reducing related earthwork cost during initial construction. Tailings thickeners also allow for increased process recovery water, reducing pumping costs from reclaim water pumps and water recirculation between the process plant and TDF. Over all, this potential change can reduce environmental impact and certain operational risks.

Updated feasibility study and project development

Given the scope of potential design changes and updated economic assumptions, the company intends to prepare updated FS results in Q1 2027. Through the remainder of 2026, Highland will conclude on remaining design criteria and advance FEED to 40 per cent for key work packages. The updated FS is expected to include:

• Updated mineral resources and reserves estimates;
• Revised mine design and production schedule;
• Optimized process flowsheet incorporating Jameson cells;
• Potential reduction of TDF;
• Updated capital and operating cost estimates;
• Results of continuing engineering optimization work.

An updated FS reflective of long-term consensus copper price, with FEED complete and design optimizations incorporated, will position Highland for the technical due diligence related to project financing.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Trace Arlaud, a qualified person as defined under National Instrument 43-101. Ms. Arlaud is a consultant to Highland Copper and serves as the company's project director.

Approval of the process and tailings statement is based on previously QP press release by Dr. Wynand van Dyk dated Sept. 4, 2025.

About Highland Copper Company Inc.

Highland Copper is focused on developing the Copperwood project in the Upper Peninsula of Michigan, United States. 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.

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