Halo Resources Ltd.
OTC Bulletin Board : HLOSF

Halo Resources Ltd.

July 09, 2007 19:00 ET

Halo Announces Increase of Financing to Cdn$2.7 Million and Closing of the First Tranche of Private Placement

TORONTO, ONTARIO--(Marketwire - July 9, 2007) - Lynda Bloom, President and CEO of Halo Resources Ltd. (the "Company") (TSX VENTURE:HLO)(OTCBB:HLOSF)(FRANKFURT:HRL), is pleased to announce that due to increased demand, it has agreed to increase the size of the private placement, previously announced on June 22, 2007, from Cdn.$2.2M to Cdn.$2.7M. The terms of the additional units will be the same as the original units.

The Company is also pleased to announce that it has completed the first tranche closing of the private placement by issuing a total of 2,182,632 FT Units at a price of $0.475 per FT Unit, and 2,270,000 non-flow through units ("Non FT Unit") at a price of $0.45 per Non-FT Unit, for total gross proceeds of $2,058,250.20. Each FT Unit consists of one flow through common share and one-half share purchase warrant ("$0.65 Warrant"). Each full $0.65 Warrant entitles the holder to acquire one common share of the Company ("Common Share") until January 4, 2009 ("Expiry Time"), at a price of $0.65. Each Non FT Unit consists of one common share and one-half share purchase warrant ("$0.60 Warrant"). Each full $0.60 Warrant entitles the holder to acquire one common share prior to the Expiry Time at a price of $0.60 per share.

Finders fees of 7.5% cash and 10% share purchase warrants ("Finder's Warrants") were paid to various finders on a portion of the private placement. The Finder's Warrants entitle the holders to acquire one common share of the Company until January 4, 2009 at a price of $0.60 per share.

All securities issued in connection with the first tranche closing of the private placement and the securities underlying those securities are subject to a hold period that expires November 4, 2007.

The Company expects to complete a second and final tranche on or before July 13, 2007.

The completion of the second tranche of the financing is subject to receipt of all applicable regulatory approvals and consents, including the approval of the TSXV.

The proceeds of the financing will be used for the exploration of the Company's mineral properties in Canada and for general corporate purposes.

About Halo Resources Ltd.

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 3 projects: Duport, which is an advanced stage gold project; Red Lake, which is a gold exploration project, and the Sherridon project that is a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities. 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.


Lynda Bloom, President and CEO

This news release presents "forward looking information" within the meaning of the applicable Canadian securities laws that involve inherent risks and uncertainties. Forward-looking information includes, but is not limited to, information with respect to the proposed private placement. Generally, forward-looking information 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 information is 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 information, including but not limited to: risks related to financings; 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 information 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 information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information Halo does not undertake to update any forward-looking information referenced 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 does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Halo Resources Ltd.
    Lynda Bloom
    President & CEO
    (416) 368-7045 or Toll Free: 1-866-841-0068
    Email: lbloom@halores.com
    Halo Resources Ltd.
    Marc Cernovitch
    (416) 368-7045 or Toll Free: 1-866-841-0068
    (416) 368-9805 (FAX)
    Website: www.halores.com