Halo Resources Ltd.
OTC Bulletin Board : HLOSF

Halo Resources Ltd.

October 13, 2006 09:00 ET

Halo Announces Closing of the Flow-Through Unit Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 13, 2006) - Halo Resources Ltd. (TSX VENTURE:HLO)(OTCBB:HLOSF)(FWB:HRL) is pleased to announce that it has closed the private placement of flow-through units announced on August 29, 2006.

The Company has issued a total of 3,416,333 flow-through units at a price of $0.45 per flow-through unit. Each flow-though unit consists of one flow-through common share and one-half share purchase warrant. Each full share purchase warrant entitles the holder to acquire one non flow-through common share of the Company until April 12, 2008 at a price of $0.60 per share. The share purchase warrants will be transferable but not listed for trading.

Cannacord Capital Corporation (the "Agent") acted as agent in connection with the private placement. As partial consideration, the Agent was paid a cash commission of 7.5 percent of the total proceeds on closing, and was issued agent's warrants entitling them to acquire 341,633 common shares of the Company at any time prior to April 12, 2008 at a price of $0.45 per common share. In addition, the Agent was paid a corporate finance fee of 62,500 units (the "Corporate Finance Units"). The Corporate Finance Units consist of one previously unissued non-flow through common share of the Corporation and one common share purchase warrant of the Corporation. Each whole warrant will entitle the Agent on exercise, to purchase one additional non-flow-through common share of the Corporation at any time until the close of business on April 12, 2008 at a price of $0.45 per warrant share.

All securities issued in connection with the closing of the private placement and the securities underlying those securities are subject to a hold period that expires February 13, 2007.

The net proceeds of the placement will be used for the exploration and development of the Duport, Sherridon and RedLake properties.

Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. Currently the Company owns or has an interest in 4 projects: Duport, which is an advanced stage gold project; Red Lake Project, which is a gold exploration project, Quarter Moon which is a grass roots gold project, and the Sherridon project, which is a grass roots VMS project. 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.


Marc Cernovitch, President and CEO

Except for the historical statements contained herein, this news release presents "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation that involve inherent risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and other minerals and metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward looking statements can be identified by the use of forward-looking terminology 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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Halo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to joint venture operations; actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the management and officers of Halo Resources Ltd. believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such 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. Halo does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. Trading in the securities of Halo Resources Ltd. should be considered highly speculative.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Halo Resources Inc.
    Marc Cernovitch
    President & CEO
    (604) 484-0068 or Toll Free: 1-866-841-0068
    (604) 484-0069 (FAX)
    Email: mcernovitch@halores.com