2018-02-21 20:48 ET - News Release

Mr. Gary Musil reports

HIGHBANK ARRANGES DEMAND LOANS FOR 750 TONNE BULK AGGREGATE SAMPLE AND SITE SECURITY & MAINTENANCE FOR ITS SWAMP POINT NORTH PROJECT

Further to the news release of Dec. 15, 2017, Highbank Resources Ltd. has arranged $370,000 in loans from five non-related parties to cover costs of the previously announced 750-tonne bulk aggregate production sample; Swamp Point North (SPN) site security and maintenance expenses for November, 2017, to April, 2018; and administrative costs.

Approximately $200,000 was budgeted for the bulk sampling expenditures, such as: barging of additional equipment required for site loading and unloading; barging of aggregate from the site to the Port of Prince Rupert; leasing of industrial waterfront in the Port of Prince Rupert; equipment rental; transportation and expenses relating to additional personnel; fuel and supplies; sample processing, and lab testing. Prior to the bulk sample barge and equipment arriving, the company had also arranged for a small barge load of fuel, propane and gasoline to cover approximately six months site maintenance time.

As per previously arranged loans, the terms are as follows. The loans bear interest at 1.5 per cent per month. In consideration for the loans, the company has also agreed to issue 1.48 million bonus common shares, at a deemed price of five cents per share. The loan and issuance of bonus shares are subject to regulatory approval and, pursuant to the agreements, will be subject to a four-month-and-one-day hold period from the date of issuance.

We seek Safe Harbor.