Black Hat Capital Inc.
TSX VENTURE : BHC.P

January 10, 2007 13:26 ET

Black Hat Capital Inc. Announces Execution of Asset Purchase Agreement

CALGARY, ALBERTA--(CCNMatthews - Jan. 10, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Black Hat Capital Inc. ("Black Hat" or the "Corporation") (TSX VENTURE:BHC.P) today is pleased to announce that pursuant to its previously announced qualifying transaction it has entered into a formal asset purchase agreement between Black Hat, Great Horn Inc. ("Great Horn" or the "Vendor") and Castle Resources Mexico S.A. de C.V (the "Purchase Agreement"), pursuant to which Black Hat and Castle Resources Mexico S.A. de C.V will purchase from Great Horn the Se los Dijes Claim Group composed of eight concessions totalling 312.2 hectares located approximately five kilometres north-east of the city of Zacatecas in the Zacatecas mining district.

Upon the closing of the Qualifying Transaction, Black Hat proposes to conduct surface drilling and sampling of existing underground working on the Se los Dije Claim in order to outline a minable resource for the future development of a mining operation. In parallel, an exploration program of surface mapping and diamond drilling has been planned to test the potential along the 2 kilometre strike length of the San Fernando, La Platosa, Veta del Alto and the possible extension of the San Salvador veins. Based on present knowledge of the Se los Dije Claim Group, the objective is to outline a resource of 10 to 20 million ounces of silver.

Black Hat would also like to address the fact that the TSX Venture Exchange Inc. (the "Exchange") has suspended from trading Black Hat shares on the Exchange for failure to complete a qualifying transaction with the proscribed 24 month period. Black Hat now has until April 9, 2007 to complete its qualifying transaction or its shares will be delisted from the exchange. It is the intention of Black Hat to proceed with the qualifying transaction and to complete the qualifying transaction before April 9, 2007.

"Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable pursuant to Exchange Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative."

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Black Hat will update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Black Hat.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Black Hat Capital Inc.
    Anthony M. Croll
    (514) 399-9952