Gold Hawk Resources Inc.

Gold Hawk Resources Inc.

October 16, 2008 16:03 ET

Gold Hawk Announces Extension of Debt Repayment Schedule

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2008) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) announced today that its lenders have agreed to an amendment of the terms on the Company's debt and have extended the repayment date to December 31, 2008. The US$9.7 million total debt was scheduled for repayment on October 1, 2008.

It is expected this extension will give the Company the necessary time to obtain the permit required for the new Chinchan permanent tailings handling area and other approvals necessary to resume production at the Coricancha mine.

In consideration for amending the repayment date, the Company has agreed to pay the lenders an extension fee of US$100,000 on the Maturity Date and 3,000,000 Gold Hawk Common shares payable one month after the date of execution of the amendment to the loan agreement. In addition, the Company has agreed to issue to the lenders 15,000,000 purchase warrants exercisable for common shares of Gold Hawk at an exercise price equal to $0.06 per share. The warrants have an expiration date of March 31, 2011 and are subject to applicable Canadian securities laws.

The amended agreement and associated fees and purchase warrants are subject to certain conditions, including receipt of final approval of the TSX Venture Exchange.

About Gold Hawk Resources Inc.

Gold Hawk (TSX VENTURE:CGK) is a Canada-based precious and base metals producer with reserves and resources containing gold, silver, lead, zinc and copper. Since the acquisition of the wholly owned Coricancha mine in Peru in March 2006, the mine and concentrator were refurbished and commercial production status was achieved on October 1, 2007. The rated capacity of the processing facility is approximately 600 tonnes of ore per day.

In early May 2008, during a regular inspection of its facilities, the Company detected evidence of ground movement uphill and near the tailings handling area and processing plant. As a precautionary measure, company management immediately suspended plant operations and tailings placement pending further investigation of the extent of the movement. Geotechnical consultants subsequently determined the cause of the movement was due to excessive irrigation by third parties of the hillside above the tailings and processing plant. In consultation with authorities, a number of mitigation measures were immediately implemented, including termination of the use of the irrigation system, installation of instrumentation to detect ground movement and de-watering of the affected area. Mining operations, as well as the crushing and grinding circuit, are not affected.

To further assist in minimizing the risk to people, the environment and property, on July 18, 2008, the Peruvian government issued an Emergency Decree declaring a State of Emergency in the District of San Mateo. The Company continued to take steps to mitigate the landslide risk and as of the end of July 2008 the ground movement effectively ceased. Gold Hawk expects to return to production in the second quarter 2009 following the issuance of a permit for the permanent Chinchan tailings handling area.

Gold Hawk is based in Vancouver, Canada and is operated by an experienced management team. Gold Hawk and its wholly owned subsidiary, Compania Minera San Juan (Peru) S.A. also have exploration properties in Peru and Canada (Quebec), and are actively pursuing other growth opportunities.

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the mining industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainties involved in the discovery and delineation of mineral deposits, resources; the uncertainty of resource estimates and the ability to economically exploit resources; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Gold Hawk to obtain all permits, consents or authorizations required for its operations and activities; and health and safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Gold Hawk to fund the capital and operating expenses necessary to achieve the business objectives of Gold Hawk, the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Gold Hawk. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Gold Hawk should not place undue reliance on these forward-looking statements.

Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this press release are made as of the date hereof and Gold Hawk undertakes no obligation to update publicly or revise any forward-looking statements contained in this press release or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

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

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