Gold Hawk Resources Inc.

Gold Hawk Resources Inc.

July 07, 2010 06:00 ET

Gold Hawk Sells Peru Interests for US$4.4 Million: Gold Hawk Has $1.48 Per Share of Working Capital

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2010) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:GHK) is pleased to announce that the Company has signed a Share Purchase Agreement to sell its remaining 15% interest in the operating subsidiary of the Coricancha Mine in Peru for US$4,425,000 cash (C$0.36 per Gold Hawk share) to Nyrstar Holdings CV ("Nyrstar"; NYSE Euronext Brussels: NYR).

In November 2009, Nyrstar purchased an 85 per cent majority interest in Compañía Minera San Juan (Peru) S.A. (CMSJ), Gold Hawk's Peruvian operating subsidiary, for US$15 million. Gold Hawk has $19.3 million ($1.48 per share) in cash and investments as of the transaction closing today.

"The completion of the sale of the remaining 15 per cent interest significantly strengthens Gold Hawk's cash position and ability to conduct a further transaction that will deliver improved shareholder value," said Kevin Drover, Gold Hawk's President and CEO.

The sale of the Company's 15% interest in CMSJ follows a review by Gold Hawk management of the long-term capital expenditure plan for the Coricancha Mine versus the Company's strategy to conduct an accretive transaction in the near-term. Gold Hawk concluded that shareholders would be better served by divesting the investment in CMSJ as it was not expected to generate cash flow to the Company for at least three years due to the loan repayment schedule and anticipated capital expenditures that are likely to occur.

About Gold Hawk Resources Inc.

Gold Hawk (TSX VENTURE:GHK) is a Vancouver, Canada-based company actively exploring business opportunities in the precious metals mining sector. The Company has no debt, $19.3 million in working capital and holds mining concessions at the Barry-Souart property northeast of Val-d'Or, Quebec – a gold mining area with existing mining operations nearby. Gold Hawk is operated by an experienced management team with significant operating experience.

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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