Gold Hawk Resources Inc.

Gold Hawk Resources Inc.

May 20, 2009 18:35 ET

Gold Hawk Announces Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 20, 2009) -


Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) announces today that it will undertake a non-brokered private placement of up to 30,000,000 units in the capital of the Corporation (the "Units") at $0.05 per Unit raising gross proceeds of up to $1,500,000 (the "Offering").

Each unit in the Offering is comprised of one common share and one whole common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one additional common share of the Company at $0.07 per share for a period of 12 months following the closing date. Insiders have committed to subscribing for 25% of the Offering, which is the maximum allowable under TSX Venture Exchange regulations. The funds raised through the Offering will be used to support ongoing activities at the Coricancha Mine, planning for the new permanent tailings area at Chinchan and for general corporate purposes. The Company plans to restart production at Coricancha later this year once re-start financing is in place.

All securities distributed pursuant to the private placement will be subject to a hold period of four months plus one day following closing in May 2009. A finder's fee may be payable on a portion of the private placement in accordance with the policies of the TSX Venture Exchange and the private placement will be subject to certain conditions, including receipt of final approval of the TSX Venture Exchange.

This media release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

"Coricancha Mine has a turnkey 600 tonnes per day rated capacity concentrator and a BIOX® circuit for the recovery of gold and silver from the refractory ore as well as a developed mine with proven mineral resources and decades of production history," said Mr. Kevin Drover, Gold Hawk's President and CEO. "Gold Hawk's current financial model for the Coricancha Mine clearly shows that the Mine will be profitable at current metal prices with 80 per cent of revenue derived from precious metals. For a proven mine that has been mining the same veins for more than 50 years, Coricancha offers excellent value to investors and we are confident that core funding can be sourced to re-start production."

About Gold Hawk Resources Inc.

Gold Hawk (TSX VENTURE:CGK) is a Canada-based precious metals company with reserves and resources containing gold, silver, lead, zinc and copper and a near-term production project at the Coricancha Mine and 600 tonnes of ore per day processing facility, located 90kms east of Lima, Peru.

On January 7, 2009 the Company received its final permit to construct a new permanent tailings facility at Chinchan and has all of the other permits required for the re-start of the mine.

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).

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. These forward-looking statements are made as of the date of this document and Gold Hawk Resources Inc. (hereinafter referred to as the "Company") do not intend, and do not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, commodity prices, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.
In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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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