Vancouver, B.C. ... Highland Resources Inc. (the "Company") announces it has closed Tranche II of its recently announced non-brokered private placement (see news release of May 4 and May 23, 2012), through the issuance of 132,394,375 Units at a price of $0.08 per Unit, for gross proceeds of $10,591,550. Each Unit is comprised of one common share of Highland and one transferable common share purchase warrant, each whole warrant exercisable for a period of two years from the date of issue to purchase one common share of Highland at a price of $0.15 per share.
Finders' fees in the aggregate amount of $54,500 and 12,558,188 shares were paid to various finders for portions of the financing attributable to their efforts. All of the securities issued pursuant to this offering are restricted from trading for a period of four months and one day after closing.
Tranche I and Tranche II closings of the private placement have resulted in the issuance of 192,373,625 Units at a price of $0.08 per Unit, for gross proceeds of $15,389,890. The private placement has also resulted in the creation of a new control block, namely Dundee Corporation, which now controls more than 20% of the issued and outstanding common shares of the Company. Prior to closing Tranche II, the Company received TSX Venture Exchange acceptance of the new control block, after providing consents in writing from over 59% of Highland's shareholders.
As part of Tranche III of the private placement, the Company has entered into a definitive agreement with an institutional investor (the "Investor") pursuant to which the Company has agreed to sell to the Investor 12,565,000 Units for an aggregate purchase price of $1,005,200. The transaction is expected to close on or before May 31, 2012.
ON BEHALF OF THE BOARD
Signed "Robert Eadie"
President, Chief Executive Officer and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Contact: Robert Eadie
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.