Highland Resources Inc. is pleased to report that further to the Mineral Property Purchase and Joint Venture Agreement entered into by the Company and Canadian Prospector Inc. ("CPI") in 2009, as amended, the Company has incurred the required minimum of $1,000,000 of Exploration Expenditures on the properties located in the Beardmore-Geraldton area of the Thunder Bay Mining District, Ontario (the "Property"). The Property is comprised of 88 mineral claims consisting of approximately 18,624 acres in an area known to host numerous gold deposits along with hosting numerous base metal occurrences. In accordance with the provisions of the Purchase Agreement, Highland has given notice to CPI that it has completed all of its obligations to complete the purchase of a 51% interest in the Property.

Highland Resources is a Tier II company whose major properties are the Rickaby and the Humbolt Bay projects located in Northern Ontario, in the Beardmore-Geraldton Belt.

The Rickaby joint venture is a high grade gold target in Northern Ontario. The claims are adjacent to Kodiak's Hercules project and is 30km west of the Premier Gold Mines.

The Rickaby property is comprised of 88 mineral claims over 18,624 acres in the Beardmore-Geraldton Belt in the Thunder Bay Mining District. Gold was mined around the project area in the 1930's on the Orphan Mine. A total of 2460 oz of gold was mined with an average grade of 0.70 oz/ton including 1558 oz of silver with an average grade of 0.44oz/ton (Ontario Geological Report OFR5630, and references therein).

Rickaby was previously explored by Phelps Dodge, Noranda and Shoshoni Gold, with a combined total of 62 drill holes targeting quartz veins. Previous drill results include 0.46oz/ton Au over 15ft.

Humbolt Bay consists of 57 claims totalling almost 13,700 acres (856 claim units).

The property is underlain by rocks of the Onaman-Tahota Greenstone Belt which has had significant historical production in the 1930's and 1940's from the Sturgeon River Gold mine (77,000 oz Au) and the Tashota Goldfields mine (12,300 oz Au). The Tashota Goldfields mine is along strike from the Humbolt Bay property.

The Brennan Gold showing was discovered in 1936. This gold-bearing quartz vein reportedly produced a 50lb composite bulk sample assaying 0.49 oz/t Au (Millenbach-Hopkins, 19

The Geraldton-Beardmore greenstone belt is a gold belt with gold production of 4,371,300 ounces from 24 operations.

The Geraldton-Beardmore belt has only been explored to a fraction of the depth as the other major gold districts in Ontario.