RAB Special Situations L.P.

Halo Resources Ltd.

Halo Resources Ltd.

January 07, 2005 13:56 ET

RAB SPECIAL SITUATIONS L.P./Halo Resources Ltd.: Announcement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RAB SPECIAL SITUATIONS L.P.

AND HALO RESOURCES LTD.

TSX VENTURE SYMBOL: HLO

JANUARY 7, 2005 - 13:56 ET

RAB SPECIAL SITUATIONS L.P./Halo Resources Ltd.:
Announcement

LONDON, UNITED KINGDOM--(CCNMatthews - Jan. 7, 2005) - RAB Special
Situations L.P. ("Special Situations") announces that it has subscribed
for a total of 1,000,000 units (the "Units") of Halo Resources Ltd. (the
"Company") (TSX VENTURE:HLO) at a price of Cdn.$0.85 per Unit. Each Unit
consists of one common share in the capital of the Company (a "Share")
and one share purchase warrant (a "Warrant") of the Company. Each whole
Warrant entitles Special Situations to acquire one additional Share of
the Company (a "Warrant Share") at any time until the close of business
from the date which is two (2) years from the date of the issue of the
Warrant, at a price of Cdn.$1.10 per Warrant Share during the first year
and at Cdn.$1.35 during the second year. The transaction took place off
the market by way of private placement and closed on December 23, 2004.

Special Situations has ownership of and control over the securities
purchased in the Private Placement. The purchased securities represent
approximately 11.46% of the issued and outstanding Shares on a partially
diluted basis (assuming exercise of its Warrants) ("Partially Diluted
Basis").

Immediately after the Private Placement, Special Situations owned
1,000,000 Shares and 1,000,000 Warrants representing approximately
11.46% of the issued and outstanding Shares on a Partially Diluted Basis.

Special Situations purchased Units for investment purposes only and not
with the purpose of influencing the control or direction of the Company.
Special Situations together with joint actors, if any, may, subject to
market conditions, make additional investments in or dispositions of
securities of the Company in the future, including additional purchases
of Shares. Special Situations and its joint actors, if any, do not,
however, intend to acquire 20% of any class of the outstanding voting or
equity securities of the Company.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    RAB Special Situations L.P.
    Mr. Neil Warrender
    (44) 20-7389-7000
    nw@rabcap.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.