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April 28, 2010

Highland Reports on Final 5 Holes of Winter Drill Program on the Rickaby Property and Reports on Results of the Airborne Survey on the Humboldt Bay Property

Vancouver, British Columbia, April 28th, 2010 ... Highland Resources Inc. (the "Company") has recently received final results from its winter drill program on the Rickaby Property and has preliminary results of its airborne magnetic and electro-magnetic survey on its Humboldt Bay Property. Both properties are in the Beardmore-Geraldton area of Northern Ontario.

RICKABY PROPERTY DRILLING -- ZEUS TARGET
The Zeus target was developed from reconnaissance exploration done in June 2009 and trenching and channel sampling in October 2009. A zone of gold mineralization associated with disseminated pyrite within sheared gabbro and quartz veins was exposed in the trenching (best value 27.20 g/t Au over 0.50 meters). Disseminated pyrite responds well to Induced Polarization (IP) surveys and therefore the area was subsequently surveyed with ground geophysics that included IP and magnetics in November 2009.

Drilling on the Zeus target followed the drilling on the Foisey-Larson Zone (see Highland press release of April 6th, 2010 indicating a 1.3 km Au/Mo/Ag zone). A program of 5 holes was completed in March 2010 in the Zeus area, and totaled 779.94 meters on 3 targets.

Target 1
This drilling was targeted on the vein exposed by trenching in October 2009 with a best value of 27.20 g/t Au over 0.50m. Three holes totaling 448.54m were drilled on this target based on sections 100 meters apart and normal to the strike of an IP anomaly defined from the November 2009 surveying. This IP anomaly was coincident with the shear zone and vein exposed by trenching. ZS-01 was drilled on grid line 3E, ZS-02 on grid line 2E and ZS-03 on grid line 1E.

All holes went through the shear zone associated with the Au bearing vein exposed on surface, but none of them hit significant quartz veining. Gold values in the shear ranged from non detectable to highs of 0.2 g/t gold over 1 meter sample widths in holes ZS-02 and ZS-03. The mineralized shear zone width intersected in the drilling was 4m in hole ZS-01 (at 59-63 meters), 1.0m in hole ZS-02 (96-97 meters), and 4.88m in hole ZS-03 (53.12-58.00m).

A review of the October 2009 trench exposure showed that the vein was exposed for 15 meters of strike length in the trench, and it is now assumed based on drill results that the hole spacing of the drill program was too wide to intersect the small size of this mineralized zone. Although this indicates that the Au lode exposed on surface has a small strike length, the zone of shearing is extensive and it remains as a possible Au target along strike and to depth.

Target 2
A weak IP anomaly extending for 700m was defined 300 meters north and sub-parallel to the shear hosting the mineralized vein. One hole (ZS-05) was targeted on this IP anomaly. No significant Au mineralization was intersected.

Target 3
A second IP grid (Zeus North) was targeted on a significant linear magnetic anomaly with a locally coincident weak IP anomaly. It was interpreted to be due to a possible ultra-mafic dyke. Hole ZN-01 was targeted on a structurally deformed area of the dyke target. The hole intersected a mafic to ultra-mafic dyke with altered and brecciated contacts. The dyke contained significant disseminated, stringer and blebby pyrrhotite. Assay sampling indicated no significant Au or base metal (Copper, Nickel) in this hole.

Further drilling on Rickaby was suspended as an early spring thaw prevented movement of the drill onto targets in the KRK (Cu, Zn, Ag, Au zone, including drill hole R98-22 with 0.71% Cu over 74 meters), the Km 23 grid, and the Koch-Daneff (2009 trenching with 17.10 g/t Au over 1.20m and an historical drill hole with 15.77 g/t Au over 3.5m). These targets are awaiting improved ground conditions to allow continuation of the drill program.


HUMBOLDT AIRBORNE PRELIMINARY GEOPHYSICAL SURVEY RESULTS
Preliminary results have been received from the AeroQuest airborne electro-magnetic and magnetic survey commissioned in February 2010, and completed in March (see Highland press release February 25, 2010). The survey used AeroQuest's helicopter borne AeroTEM II system. The survey was carried out on 50 meter line spacing using a GPS navigation system with 5 meter or better accuracy, and a radar altimeter with +/- 1.5 meter accuracy. This resulted in very accurate survey positioning and detailed survey coverage.

Preliminary survey results were processed by GeoVector Management Inc. of Ottawa, and four excellent targets have been defined. These include discrete EM anomalies that could indicate massive sulphide bodies as well as structural targets for gold defined from the magnetics.

The airborne electro-magnetic and magnetic targets include:
  1. A 7 km long, intermittently conductive trend broadly coincident with base metal anomalies defined from a 1990 Asarco overburden drilling program. Asarco drilled 116 reverse circulation drill holes over a total strike length of 14 km along this trend. Heavy mineral concentrates defined in two areas of the Asarco program, approximately 2 km apart, were highly anomalous in gold (up to 6000 ppb). In addition in the same area a soil survey carried out by Kerr Addison Mines in 1984 reported scattered gold (up to 150 ppb) and copper anomalies (up to 690 ppm) over a 10 km strike length.

  2. An 8 km trend of strongly linear magnetic signature that may indicate a shear zone. This inferred shear zone (the Brennan structure), occurs over the Brennan Au showing discovered in 1936. The most recent work on the Brennan showing in 1991 exposed the zone over a strike length of 575 meters. The gold-bearing quartz vein reportedly produced a 50 lb composite bulk sample assaying 0.49 oz./ton Au. Examination of the magnetic signature suggests that the best part of this target area is along a 4 kilometre strike length west of historical work in an area of overburden cover which has not been previously prospected or trenched.

  3. A series of very intriguing discrete EM anomalies to the north of the Brennan structure. In particular one set of anomalies occur on an inferred structure that intersects the Brennan structure in the favourable area noted above.

  4. At the inferred intersection of the two structures noted above, the Brennan structure magnetic signature is disrupted and diminished in intensity amplitude. The structure begins to display EM conductors where it previously was electro-magnetically quiet. This may indicate sulphidation related to Au mineralization of the structure at this point. EM conductors appear intermittently along approximately 2 km of this area of intersecting structures.
It is anticipated that the detailed airborne survey coverage will allow targeting of future drill holes directly off the airborne survey data, thereby saving the time and expense of completing follow-up ground geophysical surveying. Current work proposals include an immediate program of reconnaissance mapping and prospecting on the promising targets defined above prior to recommendations for drill targeting. In addition a program of IP surveying on non conductive and potentially prospective segments of the Brennan structure may be required. This work will be facilitated by the excellent access to the property along Highway 801 from Highway 11. From the 801 a major logging road, The Auden Road, passes through the entire length of the property. Highland is eagerly anticipating the initial ground exploration on this promising property.

The work programs at the Rickaby and Humboldt Bay properties are designed and managed by GeoVector Management Inc. The technical information contained in this news release has been verified by Joseph Campbell, P. Geo., President of GeoVector, who is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Properties."

The Company also announces that pursuant to exchange policies and the Company's Stock Option Plan, an aggregate of 615,000 shares have been granted as incentive stock options to directors, key employees and consultants at an exercise price of $0.10 per share. The options are exercisable for a period of five years, ending on April 28, 2015, and are subject to the requirements of the TSX Venture Exchange.

ON BEHALF OF THE BOARD

Signed "Roger Blair"
Roger Blair, President and Director

FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-602-4935
Facsimile: 1-604-602-4936
Contact: Roger Blair

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.