Halo Resources Ltd.

Halo Resources Ltd.

March 16, 2005 19:25 ET

Halo Announces $5 Million Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HALO RESOURCES LTD.

TSX VENTURE SYMBOL: HLO
OTC Bulletin Board SYMBOL: HLOSF
FRANKFURT SYMBOL: HRL

MARCH 16, 2005 - 19:25 ET

Halo Announces $5 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 16, 2005) - Halo
Resources Ltd. (TSX VENTURE:HLO)(OTCBB:HLOSF)(FWB:HRL)

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S.
NEWSWIRE SERVICES.

Marc Cernovitch, President & CEO of Halo Resources Ltd. is pleased to
announce that it has entered into a financing agreement with Canaccord
Capital Corporation and Pacific International Securities Inc. (the
"Agents") for the private placement, on a commercially reasonable
efforts basis, up to $5,020,000 (before over allotment) or 2,000,000
Flow Through Shares ("FT Shares"), at a price of $1.25 per share, and
2,100,000 Non Flow Through Units ("NFT Units"), at a price of $1.20 per
unit. Each NFT will consist of one common share and one-half share
purchase warrant. Each full share purchase warrant entitles the holder
to acquire one common share of the Company for a period of two years at
a price of $1.35 per share. The share purchase warrants will be
transferable but not listed for trading.

The Agents' will be granted the option to increase the offering by
$1,000,000 (the "Over Allotment Option") by way of FT Shares or NFT
Units on the same terms. As consideration for acting as Agents, the
Company has agreed pay a commission of 7.5 percent of the total proceeds
on closing in cash, and issue Agents' Warrants exercisable for common
shares of the Company representing 10 percent of the total Offering
sold, at an exercise price of $1.35 per common share for a period of two
years. The Agents may elect to take half of their cash compensation in
the form of Units. The Company will also pay Canaccord Capital
Corporation a corporate finance fee payable in Units and an
administration fee.

The net proceeds of the placement will be used for the exploration and
development of the Duport, Bachelor Lake, and Quarter Moon properties
and for general working capital purposes.

Halo Resources Ltd. (TSX VENTURE:HLO)(OTCBB:HLOSF)(FWB:HRL) is a
Canadian-based resource company focused on the acquisition of advanced
exploration and near production base and precious base metal deposits.
The Company is operated by an experienced management team and backed by
a strong network of mining financiers. The Company's growth strategy is
to develop a diversified portfolio of advanced mining projects.

This news release does not constitute an offer to sell or a solicitation
of an offer to sell 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.

ON BEHALF OF THE BOARD

Marc Cernovitch, President & CEO

Except for the historical statements contained herein, this news release
presents forward-looking statements that involve inherent risks and
uncertainties. Although the management and officers of Halo Resources
Ltd. believe that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, they give no assurance
that their expectations will be achieved. Certain risks and
uncertainties inherent in the Company's operations include political,
economic, environmental and geological issues, including but not limited
to, the continued need for additional capital, the competition within
the mining industry, and other risks detailed from time to time in the
Company's periodic reports filed with the British Columbia Securities
Commission and the United States Securities and Exchange Commission.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Halo Resources Ltd.
    Marc Cernovitch
    President & CEO
    (604) 484-0068 or Toll Free: 1-866-841-0068
    (604) 484-0069 (FAX)
    mcernovitch@halores.com
    www.halores.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.