Highlands Pacific Limited is pleased to report assays from the first hole at the Kum Kom prospect in the Star Mountains in Papua New Guinea that highlight the potential for another copper-gold porphyry-skarn system just 5 km north of the Olgal porphyry identified in 2012 that contained a 596 metre intersection of 0.61% copper and 0.85g/t gold. The Kum Kom prospect approximately 25kms northeast from Ok Tedi copper mine is the fifth prospect drilled by Highlands in the Star Mountains, the fourth that has encountered copper porphyry mineralisation and the first with skarn-style alteration - often associated with higher grade copper-gold zones. Assays have been received for the 354 metre diamond core hole at Kum Kom (001KUM12) and assays are pending for a further 480 metre second drill hole (002KUM12) from the same pad position but in the opposite direction.

Assays for this first Kum Kom drill hole show an initial lower grade zone to 140 metres before a high grade alteration zone of 22 metres of 1.42% copper and 0.57 g/t gold. Deeper drilling in the same hole below 280 metres encountered a second zone of 68 metres at 0.97% copper and 0.37 g/t gold before drilling ended still in mineralisation. The hole ended due to the drill hole collapsing while the drilling contractors attempted to recover a length of drill rod lost down the hole. Drilling in the Star Mountains was suspended in late December due to an unseasonal dry spell which prevented fuel and food supplies being shipped to the Ok Tedi supply town of Tabubil. Some recent rains have improved the river depths and it is expected a logistical backlog will be overcome soon with drilling in the Star Mountains to recommence in February. In the meantime drilling pad construction and exploration preparations have continued.

Managing Director of Highlands Pacific Mr John Gooding said today: “This is another highly encouraging discovery, highlighting the potential copper-gold systems that exist in this important new district. It is still early days and we need to drill more holes at Kum Kom while continuing to explore at more of our untested targets in the Star Mountain district. The reason why we are excited about the identification of skarns is twofold - first their high-grades make them more economically attractive in their own right and second they can be an indicator of the potential source or host part of the porphyry system.”