Highland Resources Intersects 20.5 Meters of 2.24% Cu at the Keweenaw Copper Project, Michigan, USA

Additional high grade chalcocite zones intersected

VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Oct. 3, 2012) - Highland Resources Inc. (TSX VENTURE:HI) ("Highland" or the "Company") is pleased to announce results from the first 17 diamond drill holes for which all assays have been received from the Keweenaw Copper Project in northern Michigan. Some of the longer intersections include:

- Hole CEN 302: 20.5 meters of 2.24% Cu
- Hole CEN 308: 9.0 meters of 2.10% Cu
- Hole CEN 309: 12.0 meters of 3.24% Cu
- Hole CEN 312: 13.1 meters of 3.02% Cu
- Hole CEN 313: 10.4 meters of 1.77% Cu
- Hole CEN 331: 17.0 meters of 2.07% Cu

Assay results are summarized in Table 1 below and drill hole locations are on Figure 1. The objective of the exploration program initiated in July is to confirm in compliance with NI 43-101 the historical resource of the 543S deposit originally discovered in the early 1970s. Lens-like zones of mineralization consist mostly of primary chalcocite in altered basalt flow top breccias accompanied by small amounts of native copper and native silver (see cross section 200E in Figure 2). Traces of other sulfide minerals are also present. Mineralization comes to the bedrock surface and is covered by 3 to 30 meters of glacial deposits.

"The alteration and mineralization intersected by Highland are identical to the available historic core and we are encouraged that the historic resource estimates from the 543S deposit may be duplicated by the current drill program" noted Dr. Ross R. Grunwald, Vice president - Exploration for Highland. "Four drills are operating at the project and the initial plan is to complete roughly 20,000 meters in 100 holes by mid-late October. Upon completion of the planned program we will evaluate the need for interspaced holes at 543S and will consider moving drills to several of the numerous additional chalcocite prospects in this area."

The 2012 drill holes are within an area of 101 historic diamond drill holes called the 543S sulphide deposit, a zone of chalcocite mineralization that was explored from 1973-1977 and briefly in the mid-nineties. The 543S deposit contains a historic resource estimate of 4.5 million short tons averaging 2.27% Cu at a 0.75% Cu cutoff grade as described in a Technical Report by Behre Dolbear & Company, Ltd. titled "Centennial and Kingston Native Copper, 543S, and Other Copper Sulfide Properties, Houghton and Keweenaw Counties, Michigan, USA'' dated September 29, 2011. The Company has not completed the work necessary to classify the historical estimate mentioned above as current mineral resources. The Company is not treating the historical estimate as current mineral resources as defined in NI 43-101 and the historical estimate should not be relied upon. Highland's objective is to complete approximately 100 diamond drill holes to confirm the size and grade of the non-compliant 543S historic resource estimate. Resource modeling will begin in early 2013 if justified. The historical resource estimate is contained in six separate lenses averaging 5.0 meters (16.5 ft.) true thickness that dip about 40° to the north.


TABLE 1. Composite intersections from the 543S deposit

        Interval  Length     % Cu           Ag
Hole      (m)      (m)   (0.20% Cu cutoff)  (g/t)
CEN300 	105.50 - 108.50 	3.0 	0.66 	0.5
	130.05 - 133.50 	3.45 	1.96 	1.2
	157.50 - 159.40 	1.90 	6.18 	11.9
CEN301 	54.31 - 72.40 	18.09 	0.81 	1.1
	79.65 - 81.85 	2.20 	4.34 	0.5
CEN302 	29.50 - 32.00 	2.50 	1.84 	2.2
	64.50 - 85.00 	20.50 	2.24 	2.6
including 	67.00 - 68.00 	1.00 	9.64 	5.1
including 	69.50 - 71.64 	2.14 	6.76 	3.5
	97.50 - 99.20 	1.70 	7.75 	3.6
CEN304 	1.10 - 18.50 	17.40 	0.24 	1.2
	102.00 - 113.10 	11.10 	1.70 	14.8
including 	102.00 - 104.00 	2.00 	6.32 	73.5
CEN306 	No significant assays 		
CEN307 	106.70 - 110.20 	3.50 	2.46 	1.8
	141.70 - 145.20 	3.50 	3.87 	2.7
	181.70 - 186.50 	4.80 	2.61 	3.6
including 	182.50 - 183.50 	1.00 	7.16 	4.2
CEN308 	131.50 - 140.50 	9.00 	2.10 	4.4
CEN309 	68.30 - 74.30 	6.00 	0.42 	1.0
	121.30 - 133.30 	12.00 	3.24 	2.6
including 	125.30 - 128.30 	3.00 	7.73 	5.0
	157.80 - 160.80 	3.00 	0.37 	7.9
CEN310 	No significant assays 		
CEN311 	87.00 - 91.50 	4.50 	1.76 	1.3
	97.50 - 99.10 	1.6 	2.6 	1.7
CEN312 	42.45 - 55.55 	13.10 	3.02 	13.1
including 	44.80 - 48.70 	3.90 	7.75 	5.5
	64.10 - 65.60 	1.50 	5.4 	2.3
CEN313 	165.4 - 175.8 	10.4 	1.77 	2.6
CEN328 	25.00 - 27.40 	2.40 	3.73 	0.6
CEN329 	No significant assays 		
CEN331 	101.50 - 118.50 	17.0 	2.07 	5.1
including 	111.50 - 117.50 	6.0 	4.50 	8.0
CEN357 	No significant assays 		
CEN359 	3.40 - 7.90 	4.5 	0.97 	1.0
	11.20 - 21.00 	9.8 	0.44 	3.5

Drilling, Sampling, Assaying, and QAQC

The 2012 drill holes are on cross sections spaced at 30 meter intervals between the historic 60 meter grid lines at the 543S deposit. All holes reported on Table 1 except CEN 306 and CEN 307 are inclined to the south along section lines shown on Figure 1. Inclinations are selected to approximate a true width of the mineralized lenses based on regional information on the dips of the lava flows. Holes CEN306 and CEN 307 are inclined to the west and the intersections reported in Table 1 for CEN307 may be 5-10 percent greater than true widths.

All technical information for the 543S exploration program is collected under a formal quality assurance and quality control (QAQC) program. Samples are taken under the direction of qualified geologists and stored in sealed bags. Samples are then placed in sealed containers and delivered via courier or common carrier to Accurassay Labs, a certified analytical facility in Thunder Bay, Ontario, Canada for analysis. Copper and silver contents are determined using a four acid digestion procedure.

The technical information contained in this release has been reviewed and approved by Ross R. Grunwald, PhD., Vice president - Exploration for the Company. Dr. Grunwald is a qualified person as defined in NI 43-101.


Keweenaw Copper Project

The Keweenaw Copper Project covers about 13,000 acres of mineral rights and is being explored under a Mining Venture Agreement between Highland and BRP LLC. The agreement allows Highland to earn a 65 percent interest by spending US$11.5 million and providing a feasibility study by October 26, 2015. More information about the Keweenaw Copper Project is available in Behre Dolbear's NI 43-101 Technical Report, available on the Company's website at www.highlandresources.ca and on SEDAR at www.sedar.com.


Cautionary Statement

Certain statements contained in this press release constitute forward looking information under the provisions of Canadian provincial securities laws. Words such as "anticipate", "expect", "believe", "estimate," forecast, "planned", "will", "should", "could", "likely", objectives and similar expressions are intended to identify forward-looking information. Such statements include without limitation: the Company's exploration plans and objectives to confirm the historic resource estimate and complete a resource modeling; and other statements and information regarding anticipated results regarding the Company's operations and exploration. Such statements reflect the Company's views as at the date of this press release and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements. Actual results may be materially different from those currently anticipated. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward looking statements. Such risks include, but are not limited to: the volatility of copper price; the uncertainty of exploration results, capital expenditure requirements and other costs; the uncertainties related to the Company's ability to acquire an interest in the project through a participation in the Mining Venture Agreement; currency fluctuations; the availability of financing for additional capital requirements, cost of exploration and development programs; mining risks; risks associated with governmental and environmental regulation and obtaining all the necessary permits for the development of the project; and risks associated with global economic growth. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information, except as required by law. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

United States investors are cautioned not to assume that all or any part of a mineral resource, if confirmed, will ever be converted into mineral reserves. Mineral resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility.


About Highland

Highland Resources is a Canadian exploration company focused on exploring and developing copper projects on the Keweenaw Peninsula within the Upper Peninsula of Michigan, U.S.A. through its 100%-held subsidiary, Keweenaw Copper Co. The Company is well funded having completed a $16.5 million private placement in May 2012. The common shares of Highland trade on the TSX Venture Exchange under the symbol 'HI'. Additional information about the Company is available on the Company's website and on SEDAR.

Figures 1 and 2 are available at the following address: http://media3.marketwire.com/docs/figs1_21003.pdf



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.



Contact

Ross R. Grunwald, Vice president - Exploration
1-906-337-5988
info@highlandresources.ca
www.highlandresources.ca