Highground Capital Corp. Announces Quarterly Financial Results and Strategic Review

    OAKVILLE, ON, Feb. 27 /CNW/ - Highground Capital Corp. (TSXV - HCC) today
announced financial results for the first quarter ended December 31, 2007.
Highground Capital Corp. will hold an earnings conference call at 10:00 a.m.
eastern time on Tuesday, March 4, 2008, hosted by President and Chief
Financial Officer, Jeff Norman and Executive Vice-President, Greg Owttrim.
    Conference call details are as follows:

      Date: Tuesday, March 4, 2008
      Start Time: 10:00 a.m. eastern
      Phone Number: Toll free within North America: 1-800-595-8550 or local

    Financial Results

    For the period ended December 31, 2007, HCC reports cash and marketable
securities of $18.2 million. Revenues for the three month period amounted to
$428,901 and expenses were $467,989 resulting in a net operating loss of
$39,088 prior to realized appreciation on investments of $13,141 and
unrealized depreciation on investments of $127,479.

    AS AT DECEMBER 31, 2007

    Loans receivable                                            $ 12,603,526
    Marketable securities                                          7,077,597
    Receivables and other                                            543,318
    Other investments                                                     98
    Cash                                                          11,149,549
                                                                $ 31,374,088

    Accounts payable and accrued liabilities                    $    189,186

    Outstanding 3,144,106 Common shares                           31,338,328
    Deficit                                                         (153,426)
                                                                $ 31,374,088


    Investment income                                           $    428,901
    Directors' fees                                                   16,845
    Management fees                                                  285,000
    Professional fees                                                 48,859
    Shareholder communications and operating                         117,285

    Net operating loss                                               (39,088)
    Realized appreciation (depreciation) of investments               13,141
    Unrealized appreciation (depreciation) of investments           (127,479)
    Total results from operations and deficit at end of period  $   (153,426)

    Weighted average number of shares                              3,144,106
    Loss per share                                              $      (0.05)

    Subsequent Event

    Highground Capital Corp. has exercised its call right in respect of a
$3 million loan to Biofuel Energy Solutions Inc. Pursuant to the call right,
the borrower has agreed to repay the outstanding principal and interest.
Repayment of this loan is expected to occur within the three month period
ended March 31, 2008.

    Strategy Update

    The board of directors of Highground Capital Corp. has initiated a
strategic review in part due to the significant level of cash and marketable
securities held by Highground Capital Corp. The strategic review will assess
options for maximizing shareholder value. As a result, the $5 million (Cdn)
secured subordinate debt investment announced on January 30, 2008 has been
deferred pending further consideration by the board of directors.

    About Highground Capital Corp.

    Highground Capital Corp. invests in strategic growth opportunities that
meet critical long term community needs in the infrastructure and renewable
power sectors. The common shares of Highground Capital Corp. trade on the TSX
Venture Exchange under the trading symbol HCC.

    This press release contains forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements.
Actual results may differ materially from those indicated by these
forward-looking statements as a result of risks and uncertainties impacting
the company's business including the ability of the company to find suitable
investments, to attract and retain qualified professionals, general economic
conditions; and other risks detailed from time to time in the HCC's filings.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

For further information:

For further information: Jeff Norman, TEL: (905) 465-4547; or Greg
Owttrim, TEL: (905) 465-4535

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