Blackhawk Announces Financial Results, Change in Auditor and Closing of Private Placement

CALGARY, ALBERTA--(Marketwired - May 27, 2015) - Blackhawk Resource Corp. ("Blackhawk" or the "Corporation") (TSX VENTURE:BLR) is pleased to announce its financial results for the three months ended March 31, 2015, and to provide an update on its investment strategy.

HIGHLIGHTS

• Net investment income for the three months ended March 31, 2015 of $320,810.
  
  
• Realized gains, gross investment revenue and revenue from oil and gas assets for the three months ended March 31, 2015, was $185,485, this does not include unrealized gains of $135,325.
  
  
• As at March 31, 2015, Blackhawk has $3,288,303 in working capital.
  
  
• As at March 31, 2015, net asset value per share ("NAV per share") was $0.15 (See "Use of Non- GAAP Financial Measures").
  
  

PORTFOLIO INVESTMENTS

As at March 31, 2015, the Corporation held total investments at fair value of $2,927,632 comprised of equity type investments of $1,394,300, debt type investments of $1,327,129 and oil and gas assets of $206,203. In addition the Corporation held a cash balance of $393,669.

As at March 31, 2015, NAV per share was $0.15 as compared to $0.14 at December 31, 2014 (see "Use of Non-GAAP Financial Measures").

Investments at fair value by sector consist of the following as at March 31, 2015:

Sector		Cost			Total fair value			% of total fair value
Construction and real estate		$	211,000		$	194,285		14%
Oil and gas producers			545,408			286,976		21%
Mining			467,415			389,191		28%
Technology and other			445,500			523,848		37%
Total		$	1,669,323		$	1,394,300		100%

Debt instrument investments consist of the following as at March 31, 2015:
	Short term loans		$	1,018,326
	Mortgage receivable			150,000
	Debenture			158,803
	Total investments held to maturity		$	1,327,129
Oil and gas investments consist of the following as at March 31, 2015:
	Non-Operated properties		$	121,216
	GORR			84,987
	Total property, plant and equipment		$	206,203

As at April 30, 2015, NAV per share has increased to $0.16. The increases in NAV for the past 5 months are due to a shift in the investment focus of the Corporation on its equity investments to be more heavily into the technology and media sectors, as well as an increase in the debt instruments being held.

Currently the Corporation holds short term loans of approximately $1,740,900 that average a return of 18%, and with the recently completed financing the Corporation intends to increase its debt portfolio to greater than $2,000,000 and expects to maintain an average return of 20%.

The Corporation will continue to review opportunities in both debt and equity investments to ensure that it can maintain the returns realized in the current period.

PRIVATE PLACEMENT

Blackhawk is pleased to announce that it has closed the previously announced private placement. The placement was oversubscribed and the Corporation is pleased to report that it raised gross proceeds of $1,141,000 through the issuance of 19,016,668 common shares. The Corporation now has 41,196,374 common shares outstanding. The common shares issued pursuant to the private placement are subject to a four month hold period that expires on September 27, 2015. Finders acting in connection with the private placement received fees totaling $34,230.

With the completion of the placement, Blackhawk is committing to pay a dividend at an initial annual rate of 7 per cent, subject to all applicable regulatory approvals, including the acceptance of the TSX Venture Exchange. It is expected that the first dividend payment will be made in July, 2015, and the corporation will issue a press release setting forth the record date and the amount payable per common share at such time.

Directors and officers of the Corporation acquired an aggregate of 466,667 common shares issued under the private placement. The Corporation has determined that exemptions from the various requirements of the TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 are available for the issuance of the Common Shares (Formal Valuation - Issuer Not Listed on Specified Markets; Minority Approval - Fair Market Value Not More than 25% of market Capitalization).

CHANGE OF AUDITOR

In addition, the Corporation announces that Grant Thornton LLP has resigned, at the request of the company, as auditor of the Corporation, effective May 25, 2015.

The audit committee and the board of directors have appointed MNP LLP of Calgary, Alberta, as auditor for the company, effective May 25, 2015, until the close of the next annual general meeting of the company.

There were no reservations in the former auditor's reports in connection with the financial statements of the company for the most recently completed fiscal year and any period subsequent to the most recently completed period for which an audit report was issued and preceding the effective date of expiry of the former auditor's term of office.

The company confirms that there have been no reportable events as defined in the National Instrument 51- 102 and, in its opinion, there are no reportable events pending.

Additional information is available on our website at www.blackhawkcorp.ca.

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.

NON-GAAP OR NON IFRS FINANCIAL MEASURES

This press release includes references to "net asset value per share ("NAV per share")," a financial measure that does not have a standardized meaning prescribed by generally accepted accounting principles (GAAP) or International IFRS. NAV per share is calculated as the value of total assets less the value of total liabilities divided by the total number of common shares outstanding as at a specific date. Investors are cautioned that this non-GAAP measure should not be construed as an alternative to the measurement calculated in accordance with IFRS as, given its non-standardized meaning; it is unlikely to be comparable to similar measures presented by other issuers.

Forward-Looking Statements

This news release contains forward-looking statements as defined under applicable securities laws. Statements other than statements of historical fact contained in this news release may be forward-looking statements under applicable securities legislation, including, without limitation, management's expectations. Many of these statements can be identified by looking for words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof. To the extent any forward-looking statements herein constitute a financial outlook, including, without limitation, the estimated effect on the Corporation's revenues, they were approved by management as of the date hereof and have been included to assist readers in understanding management's current expectations regarding the Corporation's financial performance and are subject to the same risks and assumptions disclosed herein. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur.

Statements containing forward-looking information by their nature involve numerous assumptions and significant known and unknown facts and uncertainties of both a general and a specific nature.

The forward-looking statements contained herein are subject to numerous known and unknown risks that may cause actual results to vary from those set forth in the forward-looking statements, including, but not limited to risks associated with: general economic conditions and changes in the financial markets; risks associated with investment Corporation businesses; a material change in the operations of an investment Corporation or the industries in which they operate; and key assumptions.

As forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assurances of future performance. Accordingly, readers are cautioned not to place undue reliance on any forward-looking information contained in this news release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. Statements containing forward-looking information reflect management's current beliefs and assumptions based on information in its possession on the date of this news release. Although management believes that the assumptions reflected in the forward-looking statements contained herein are reasonable, there can be no assurance that such expectations will prove to be correct.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release and the Corporation does not undertake or assume any obligation to update or revise such statements to reflect new events or circumstances except as expressly required by applicable securities legislation.