Highlands Pacific Limited : Corporate Update

In accordance with the Placement Agreement with PNG Sustainable Development Program Limited ("PNG SDP") completed on 9 July 2012 the 102,930,373 fully paid ordinary shares issued to PNG SDP to raise US$15 million (A$14.9 million equivalent) are now removed from a voluntarily imposed escrow.
PNG SDP is Highlands' largest shareholder with 13.04% of the issued shares in Highlands.

PNGSDP was established in 2002, when BHP Billiton divested its 52 per cent shareholding in OTML. PNGSDP has the task to support and promote sustainable development through projects and initiatives to benefit the people of PNG, especially the people of Western Province. PNGSDP is also a substantial financial institution with the function of investment of its Long Term Fund and Development Fund so that it can support a high level of development expenditure in Western Province and PNG in general. PNGSDP is a company registered in Singapore and "limited by guarantee", which means that it has no share capital, debentures, share options or unissued shares.

OTML operates the Ok Tedi mine which is located in the Star Mountains region of the Western Province. The mine started operations in 1984, and has become the single largest business contributor to the economies of the Western Province and PNG. The Ok Tedi mine is a major producer of copper concentrate for the world smelting market in Germany, India, Japan, Korea and the Philippines. The mine produces and exports copper concentrate which includes gold and silver.

John Gooding or Craig Lennon
Highlands Pacific