Highland Copper Announces Final Approval of US$50 Million Grant From the State of Michigan for Copperwood Project

Rhea-AI Summary

Highland Copper (OTCQB: HDRSF) received final approval from the Michigan Strategic Fund for a US$50 million performance-based grant under the Strategic Site Readiness Program to support development of its fully permitted Copperwood Project and related infrastructure in Gogebic County, Michigan. No further state approvals are required.

The grant allocates US$44,971,691 to Copperwood Resources for project-related infrastructure and US$5,028,309 to the Gogebic County Road Commission. The Road Commission has also secured a US$7,542,463 Transportation Economic Development Fund grant, with both grants expected to provide about US$12,570,722 for County Road 519 upgrades.

The funding will be delivered as reimbursements for eligible site readiness and infrastructure expenditures and is conditional on Highland Copper securing US$150 million in additional project financing by March 31, 2028, and meeting completion milestones including establishing at least 380 qualified jobs at Copperwood. Reimbursable expenditures may be incurred through March 31, 2033, subject to a definitive agreement with the Michigan Economic Development Corporation.

Positive

• US$50 million performance-based state grant approved for Copperwood infrastructure
• Copperwood subsidiary allocated US$44,971,691 for eligible project infrastructure spending
• Gogebic County Road Commission granted US$5,028,309 plus US$7,542,463 TEDF funding
• County Road 519 improvements backed by about US$12,570,722 in combined grants
• Grant strengthens Copperwood project financing alongside U.S. Export-Import Bank Letter of Interest
• Grant allows reimbursement of eligible expenditures incurred through March 31, 2033
• Project supported by more than 22 governmental resolutions and 10 stakeholder support letters

Negative

• Access to grant requires securing US$150,000,000 in additional project financing by March 31, 2028
• Grant effectiveness depends on completion of a definitive grant agreement with the MEDC
• Funding is performance-based and limited to eligible site readiness and infrastructure expenditures
• Grant milestones include establishing at least 380 qualified jobs at the Copperwood Project

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VANCOUVER, British Columbia, Aug. 25, 2026 (GLOBE NEWSWIRE) -- 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: info@highlandcopper.com

Phone: +1-450-677-2455
Website: www.highlandcopper.com

FAQ

What did Highland Copper (OTCQB: HDRSF) announce on August 25, 2026 about the Copperwood grant?

Highland Copper announced final approval of a US$50 million performance-based grant from the Michigan Strategic Fund for the Copperwood Project. According to Highland Copper, the funding supports project-related infrastructure and local improvements in Gogebic County, with no further State of Michigan approvals required.

How will the US$50 million Michigan grant for Highland Copper’s Copperwood Project (HDRSF) be allocated?

According to Highland Copper, US$44,971,691 goes to Copperwood Resources for eligible project infrastructure, and US$5,028,309 goes to the Gogebic County Road Commission. The funds will reimburse qualifying site readiness and infrastructure expenditures tied to the Copperwood mine and related regional improvements.

What conditions must Highland Copper (HDRSF) meet to access the Copperwood US$50 million grant?

The grant requires Highland Copper to secure US$150,000,000 in additional project financing by March 31, 2028. According to Highland Copper, a definitive grant agreement with the MEDC and completion milestones, including at least 380 qualified jobs, must also be met for reimbursements.

Over what period can Highland Copper claim reimbursements under the Copperwood Michigan grant?

According to Highland Copper, once the financing milestone is met, the company can receive reimbursement for eligible expenditures made on or before March 31, 2033. These expenditures must relate to site preparation and infrastructure improvements necessary to support development of the Copperwood Project.

How do the TEDF and SSRP grants support County Road 519 near Highland Copper’s Copperwood Project (HDRSF)?

The Gogebic County Road Commission secured a US$7,542,463 TEDF grant in addition to its SSRP allocation. According to Highland Copper, together these grants provide about US$12,570,722 for County Road 519 improvements, enhancing safety, reliability, access, and broader regional transportation benefits.

How does the Michigan grant affect financing for Highland Copper’s Copperwood Project (HDRSF)?

According to Highland Copper, the US$50 million performance-based grant is an important milestone in overall project financing. Combined with a Letter of Interest from the U.S. Export-Import Bank, the company states that its capacity to finance Copperwood is considerably strengthened.

What economic and employment commitments are tied to Highland Copper’s Copperwood grant approval?

The grant is tied to creating at least 380 qualified jobs at Copperwood and demonstrating substantial project investment. According to Highland Copper, the project is expected to bring significant local employment, procurement, services, and infrastructure development to Michigan’s Western Upper Peninsula.