Vancouver, B.C. ... Further to its press release of September 18, 1009, Highland Resources Inc. (the "Company") announces it has completed its private placement for gross proceeds of $1,408,224.45. The private placement consisted of:
5,691,498 flow-through common shares (the "Shares") at a price of $0.15 per Share; and
3,696,666 non-flow-through Units (the "Units") at a price of $0.15 per Unit. Each Unit consists of one common share of the Company and one-half non-transferable share purchase warrant (the "Warrant"). Each whole Warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.20 if exercised in the first year, or $0.30 if exercised in the second year.
The Company paid a cash commission in the aggregate amount of $77,248 equal to 8% of the gross proceeds to certain finders. In addition, the Company issued finder's warrants entitling the holders to purchase up to 743,731shares at a price of $0.20 exercisable over a period of 12 months.
All securities issued by the Company pursuant to this private placement are subject to a four month hold period expiring on March 1, 2010.
The net proceeds of the private placement will be added to working capital and will be used to finance the 2009 - 2010 exploration program for the Rickaby Property designed by GeoVector Management Services Inc. ("GeoVector") of Ottawa, Ontario. GeoVector was engaged by the Company to manage the exploration program on the Rickaby Property this summer and completed the initial field work (see press release of June 23, 2009).
The Rickaby property is a high-grade gold prospect comprised of 88 mineral claims over 18,624 acres in the Beardmore-Geraldton Belt in the Thunder Bay Mining District, adjacent to Kodiak Exploration's Hercules project and 30km west of the Premier Gold Mines. The Beardmore-Geraldton Greenstone belt has produced 4,371,300 ounces of gold from 24 operations. Exploration by Kodiak on their Hercules gold project has produced drill results including 15.59 g/t Au over 16.60 m (Kodiak, September 19, 2006), with recent exploration defining long strike length zones of gold-bearing quartz veins including channel sampling with 32.96 g/t over 11.6m (Kodiak, October 1, 2007). This exploration has illustrated the high potential tenor and size of the targets that are currently on Highland's property.
MineralFields Group (a division of Pathway Asset Management), participated in Highland's private placement as to 2,666,666 flow-through common shares. MineralFields, based in Toronto, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world.
ON BEHALF OF THE BOARD
Signed "Roger Blair"
Roger Blair, President
FOR FURTHER INFORMATION PLEASE CONTACT:
Contact: Roger Blair
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