Gold Hawk Resources Inc.

Gold Hawk Resources Inc.

June 06, 2008 12:35 ET

Gold Hawk Completes a New US$2.0 Million Bridge Loan

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 6, 2008) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) is pleased to announce that it has completed a new US$2.0 million secured bridge loan (the "loan") with Auramet Trading LLC ("Auramet"), one of its existing lenders, following recent on-site technical due diligence of the Company's Coricancha mine in Peru.

The loan will be used by the Company solely for expenditures related to its Coricancha mine. As a pre-condition of closing the bridge loan, Gold Hawk negotiated a "standstill" agreement with its primary lender that postpones all scheduled payments until October 1, 2008.

"Gold Hawk appreciates Auramet's support as we take the necessary steps to complete analysis and a mitigation plan to return the Coricancha mine and processing plant operations to full production," said Kevin Drover, Gold Hawk's President and CEO.

The Company announced a voluntary, temporary shutdown of its crushing and milling operations May 9 due to natural ground displacement. Geotechnical consultants recently advised the Company that based on available information collected to date, and considering the prompt action already taken by the Company to monitor and control the displacement, it is unlikely that a major ground movement could occur under current normal conditions.

The Company will pay Auramet a cash fee upon funding of the loan and the loan bears a coupon rate of 13.0% per annum with all interest prepaid for the period of the loan. In connection with the loan, the Company has issued to Auramet warrants to purchase 2,000,000 Gold Hawk Common shares at an exercise price equal to $0.2042 per share. The warrants have a one-year expiration from the issue date and are subject to applicable Canadian securities laws and an applicable statutory "hold period". To the extent that the warrants have not been exercised prior to their expiration date, Auramet has the right to put the warrants to the Company at a pro rata price.

The loan will be repaid in full before or on October 1, 2008, and will be repaid with the proceeds of any debt or equity transactions, unless otherwise exempted at Auramet's discretion. It is the Company's intention to replace all of its existing loan facilities with longer term financing prior to the loan becoming due.

About Auramet Trading, LLC ("Auramet")

Auramet, based in Fort Lee New Jersey, is a global physical precious metals merchant run by experienced professionals providing a full range of services to all participants in the precious metals chain, from extraction and production to manufacturing and consumption.

About Gold Hawk Resources Inc.

Gold Hawk is a Canadian 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, with potential for expansion to 900 tonnes by the end of 2008. The Company, through its subsidiary, Compania Minera San Juan (Peru) S.A., has approximately 600 employees.

Gold Hawk is based in Vancouver, British Columbia, Canada and trades on the TSX-V under the symbol CGK, and is operated by an experienced management team. The Company also has exploration properties in Peru and Canada (Quebec), and is 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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