Halo Resources Ltd.

Halo Resources Ltd.

March 03, 2005 10:03 ET

Halo Announces Positive Drill Results at Duport


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HALO RESOURCES LTD.

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

MARCH 3, 2005 - 10:03 ET

Halo Announces Positive Drill Results at Duport

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 3, 2005) - Marc
Cernovitch, President & CEO of Halo Resources Ltd. (TSX
VENTURE:HLO)(OTC.BB:HLOSF)(FSE:HRL) is pleased to report that the
initial results from the first five holes of a 50 hole exploration
program have resulted in a significant expansion of the areas of known
mineralization at the Company's Duport gold project near Kenora,
Ontario. The Company anticipates that the acquisition of this project
will close in the next several weeks (as detailed in a press release
dated Marc 2nd, 2005).

Notable highlights of the Phase 1 drill program to date include:

- High-grade gold intersections in three of first five holes.
Intersections were 0.535 opt over 13.0 feet, 0.337 opt gold over 4.0
feet, and 0.788 opt gold over 3 feet. (Note: Assay grades greater than
1.0 opt Au have been cut to 1.0 opt.)

- Continuation of mineralization at depth. Two holes have extended the
zone of mineralization some 600 feet below the central core of the
resource. One hole testing an area several hundred feet below the main
known resource returned 0.337 opt gold over 4.0 feet and another has
extended the mineralization to a vertical depth of 900 ft., returning
0.141 opt gold over 5.0 ft. (Note: Assay grades greater than 1.0 opt Au
have been cut to 1.0 opt.)

Significant intercepts reported to date are presented in Table 1 below.
These are the first results from a core drilling program designed to
test and expand the prospective Main and East Zones which collectively
comprise the previously identified Duport gold resource. Although not
compliant with NI43-101, historical studies estimate the resource to
contain approximately 1.9 million short tons grading 0.36 opt in all
resource categories. The initial results indicate that suitable
structure and gold mineralizations continues well below previously
identified areas and remain open both at depth and along strike. The
potential, therefore, for continued expansion of the known resource base
at Duport remains extremely high.

Gold mineralization at Duport is hosted by well-developed quartz and
sulphide-rich zones that occupy a pronounced flexure along the western
margin of the Stevens Island sub-volcanic complex. This flexure is
spatially related to a zone of intense deformation, defined as the
Duport Deformation Zone (DDZ). The DDZ is a reverse fault system,
several hundred feet wide, trending northeasterly over a strike length
of 9 miles. At Duport, historical surface and underground drilling has
defined mineralization over a strike length of 4,000 ft to a vertical
depth of 1,600 ft., where it remains open.

The immediate exploration plans are as follows:

- Continue additional in-fill and resource expansion drilling to
investigate the Main and East Zones at depth and along strike to the
southwest.

- Complete a 70 line km of grid work and detailed geophysical surveying
in order to map and define structural complexities immediately north and
south of Duport. Geophysical anomalies will receive priority ranking and
will be aggressively targeted for follow-up drill testing.

- Using existing and new drill hole data, complete a geological model to
form the basis for a new, NI 43-101 compliant resource estimate

- Complete an internal scoping study to establish the economic viability
of a short term production start-up. It is anticipated that a positive
study result would result in the immediate continuation of the proposed
exploration program from the already extensive underground workings.



Table 1. Summary of Recent Results from Main and East Zones

Note: Assay grades greater than 1.0 opt Au have been cut to 1.0 opt
ASSAY
HOLE SECTION TARGET FROM TO LENGTH (Opt GRADE
(ft) (ft) (ft) Au) (Opt Au - ft)
---------------------------------------------------------------------
05-01 10,200N North Main 655.8 656.8 1.0 0.366
656.8 657.8 1.0 1.550 0.788 - 3.0
657.8 658.8 1.0 1.090 (cut)
---------------------------------------------------------------------
05-02 8,400N South Main 240.0 242.0 2,0 0.739
242.0 244.0 2.0 1.314
244.0 246.0 2.0 0.723
246.0 247.0 1.0 0.186 0.535 - 13.0
247.0 249.0 2.0 0.370 (cut)
249.0 251.0 2.0 0.313
251.0 253.0 2.0 0.243
---------------------------------------------------------------------
05-03 8,400N HW Main 411.0 413.0 2.0 0.130
413.0 414.0 1.0 0.138 0.134 - 3.0

South Main 570.5 573.0 2.5 0.049
573.0 575.0 2.0 0.009 0.041 - 5.5
575.0 576.0 1.0 0.086

East Zone 636.0 638.0 2.0 0.190
---------------------------------------------------------------------
05-04 8,400N South Main 1028.0 1030.0 2.0 0.109
1030.0 1032.0 2.0 0.179 0.146 - 5.0
1032.0 1033.0 1.0 0.156

East Zone 1071.0 1072.2 1.2 0.454
---------------------------------------------------------------------
05-05 9,100N HW Main 784.0 785.0 1.0 0.470

Central Main 972.0 974.0 2.0 0.320
974.0 975.0 1.0 0.013 0.337 - 4.0
975.0 976.0 1.0 0.693
---------------------------------------------------------------------
Note: Assay grades greater than 1.0 opt Au have been cut to 1.0 opt


Assaying is conducted on sawn NQ-sized half core sections by Accurassay
Laboratories using conventional fire assay procedure. Standards and
blanks are included in each sample batch submitted for analysis. The
field work is supervised by Kevin Leonard, the project Qualified Person
under the definition of NI 43-101.

Halo Resources Ltd. (TSX.V:HLO; OTC.BB:HLOSF; FSE:HRL) is a
Canadian-based resource company focused on the acquisition of 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. Currently the Company has a treasury of $5
million, to carry forward its operations. The Company's growth strategy
is to develop a diversified portfolio of advanced mining projects.
Website: www.halores.com

ON BEHALF OF THE BOARD

"Marc Cernovitch"

President & CEO

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

-30-

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