Gold Hawk Resources Inc.
TSX VENTURE : CGK

Gold Hawk Resources Inc.

March 30, 2006 08:30 ET

Gold Hawk Completes Acquisition of Tamboraque Mine in Peru and Announces Exchange of Subscription Receipts

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2006) - Gold Hawk Resources Inc. ("Gold Hawk") (TSX VENTURE:CGK) is pleased to announce that it has completed the acquisition of the Tamboraque Mine from Gestiones Y Recuperaciones de Activos S.A. (formerly known as Weise Sudameris Leasing S.A.) as well as the acquisition of all of the shares of Larizbeascoa & Zapata (collectively the "Tamboraque Acquisitions"). The Tamboraque Acquisitions gives Gold Hawk 100% ownership of the Tamboraque Mine. The total purchase price for the Tamboraque Acquisitions was US$12.0 million, of which US$9.0 million has been paid. Two additional payments of US$1.5 million are due on September 30, 2006 and December 31, 2006. The latter payment will be deferred to March 24, 2007 if the mine commences production after August 2006.

The purchase price paid by Gold Hawk in connection with the Tamboraque Acquisitions was derived from the proceeds raised by Gold Hawk in the previously announced private placement of 65,000,000 subscription receipts (the "Subscription Receipts") at a price of $0.25 per Subscription Receipt for gross proceeds of $16,250,000. A syndicate comprised of Jennings Capital Inc., as lead agent, and Octagon Capital Corporation acted as agents on behalf of Gold Hawk.

The gross proceeds of the Private Placement were being held in trust by the subscription receipt agent and were released from trust in connection with the completion of the Tamboraque Acquisitions. As a result of the completion of the Tamboraque Acquisitions, each Subscription Receipt entitles the holder thereof to receive, without payment of any additional consideration, one common share of Gold Hawk and one-half of one common share purchase warrant (each whole warrant a "Warrant") of Gold Hawk. Each Warrant entitles the holder thereof to purchase one common share of Gold Hawk at price of $0.35 until March 6, 2008. However, if at any time after July 8, 2006, the closing price of the common shares of Gold Hawk on the TSX Venture Exchange (or such other stock exchange on which the common shares of Gold Hawk are listed) is greater than $0.40 for 20 or more consecutive trading days, Gold Hawk may give notice to the holders of Warrants that the expiry date for the exercise of the Warrants has been accelerated and the Warrants will expire on the 20th calendar day following the date such notice is mailed. Any Subscription Receipt that is not exchanged by the holder thereof prior to three business days after March 28, 2006 will be exchanged by the subscription receipt agent on behalf of the holder thereof and the holder thereof will, without any action on the part of such holder, be deemed to have subscribed for the common shares and Warrants issuable upon the exchange of the Subscription Receipt.

The Tamboraque Mine is located 90 kilometers east from Lima, Peru near the town of San Mateo. The mining concessions cover an area of approximately 3,162 hectares and the mineral resources outlined in the 43-101 technical report (See Press Release dated January 23, 2006), for the Tamboraque Mine are as follows:



Au Ag Pb Zn Cu
Tonnes (oz/t) (oz/t) (%) (%) (%)
---------------------------------------------------------------------
Measured Resources 466,198 0.215 6.69 3.31 3.70 0.44
Indicated Resources 186,620 0.20 5.86 2.82 4.20 0.45
---------------------------------------------------------------------

Total and Measured and
Indicated 652,818 0.209 6.46 3.18 3.85 0.44
Inferred Resources 3,911,218 0.17 8.40 2.56 3.12 0.35
---------------------------------------------------------------------

Total 4,564,036
---------------------------------------------------------------------


The Tamboraque Mine has 37 developed stopes and is equipped with a modern 600 tonne per day ("tpd") concentrator, complete with a BIOX circuit for the recovery of gold and silver. The local infrastructure includes a paved highway and a rail line to the plant gate, water supply, a hydroelectric generating plant within 150 metres of the plant and a major power line tied to the national grid runs through the property. In addition, the mine is located within 70 kilometres of two smelters.

It is Gold Hawk's plan to resume operation of the mine at 600 tpd before the end of 2006, once the reopening feasibility study is completed and the operating permits are obtained. Gold Hawk expects that, when in production, the major products from the Tamboraque Mine, in order of importance, will be gold, silver, zinc, lead and copper. The prices of zinc and copper recently traded at all time highs while the price of gold and silver are trading at or near 25 year highs.

Mr. Rodney Lamond, P. Eng., an independent Qualified Person under National Instrument 43-101 completed the mineral resource estimate and the 43-101 report.

Gold Hawk Resources Inc. is a Canadian natural resource company based in Vancouver, BC engaged in the exploration, development and operating of precious and base metals. The company has exploration properties in Peru and Quebec, Canada.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the 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.

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.

Statements in relation to "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described can be profitably produced in the future. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability.

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.

Contact Information