Blackhawk Resource Corp.

Blackhawk Resource Corp.

December 11, 2009 09:00 ET

Blackhawk Resource Corp. Announces Closing of Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 11, 2009) - Blackhawk Resource Corp. ("Blackhawk" or the "Corporation") (TSX VENTURE:BLR) is pleased to announce that it has completed a non-brokered private placement of 10,000,000 common shares in the capital of the Corporation issued on a tax flow-through basis (each a "Flow-Through Share") at a price of $0.17 per Flow-Through Share for gross proceeds of $1,700,000. The Flow-Through Shares issued pursuant to the private placement are subject to a four-month hold period. A finder's fee of 6% of the gross proceeds raised was paid to certain finders in connection with the private placement. The Corporation now has 47,727,671 common shares issued and outstanding.

Proceeds of the private placement will be used for eligible exploratory and development activities on the Corporation's Bodo properties. Bodo is currently one of the Corporation's principal producing areas. The Corporation has four potential oil well drilling locations in inventory and intends to use the proceeds of this placement to drill at least two of these targets in the first quarter of 2010. In addition, the Corporation continues to evaluate other domestic opportunities to quickly grow the company through acquisitions and drilling.

Trading in the securities of the Corporation should be considered highly speculative.

Statements in this press release may contain forward-looking information including expectations of future operations, commerciality of any gas discovered, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income and oil taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, or reservoir performance, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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