Highlander Silver closes $86.25-million bought deal

Mr. Daniel Earle reports HIGHLANDER SILVER CLOSES $86 MILLION BOUGHT DEAL PUBLIC OFFERING Highlander Silver Corp. has closed its previously announced bought deal public offering, pursuant to which the company sold 23 million common shares of the company at a price of $3.75 per common share for aggregate gross proceeds of $86.25-million. The company has also granted the underwriters an option to purchase up to an additional 2.33 million common shares, on the same terms and conditions, exercisable in whole or in part, at any time and from time to time, on or prior the 30th day following the closing of the offering. The offering was conducted by a syndicate of underwriters led by National Bank Financial Inc. as lead underwriter and sole bookrunner, and including Canaccord Genuity Corp., Velocity Trade Capital Ltd., CIBC World Markets Inc., Ventum Financial Corp., BMO Nesbitt Burns Inc. and Cormark Securities Inc. Daniel Earle, president and chief executive officer, commented: "We greatly appreciate the steadfast support of our largest shareholders, Augusta Capital, the Lundin family and Eric Sprott. We are also delighted to welcome new global institutional investors to our shareholder base. The oversubscribed offering puts us in the enviable position of substantially funding our San Luis plans, with major investments in community development and infrastructure, while accelerating our capacity for growth." The net proceeds from the offering will be used to finance the advancement of exploration and development activities, project studies and permitting at the company's San Luis gold-silver project in Peru, as well as for property investigation and acquisition activities and for working capital and general corporate purposes. Certain insiders of the company subscribed for common shares under the offering. Each of the insiders' participation constitutes a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The company is relying on the exemptions from the formal valuation requirements contained in Section 5.5(a) of MI 61-101 and the minority shareholder approval requirement contained in Section 5.7(1)(a) of MI 61-101, as the fair market value of the securities to be distributed to the insiders is not more than 25 per cent of the company's market capitalization, as calculated in accordance with MI 61-101. The company did not file a material change report in respect of the related party transactions at least 21 days before the closing of the offering, as the details of the participation by the related parties were not settled until shortly prior to closing of the offering. About Highlander Silver Corp. Highlander Silver is primarily focused on advancing the bonanza grade San Luis gold-silver project that is located adjacent to the past-producing Pierina mine in Central Peru. San Luis hosts indicated mineral resources of 356,000 ounces Au at 24.4 g/t Au and 8.4 million ounces Ag at 579 g/t Ag and ranks among the 10 highest-grade projects globally in both gold and silver categories. The company's significant shareholders include the Augusta Group, which boasts an exceptional record of value creation totalling over $4.5-billion in exit transactions, and strategic shareholders, the Lundin family and Eric Sprott. We seek Safe Harbor.