Halo Resources Ltd.

Halo Resources Ltd.

March 04, 2005 09:58 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 4, 2005 - 09:58 ET

Halo Announces Positive Drill Results At Duport

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 4, 2005) - Marc
Cernovitch, President & CEO of Halo Resources Ltd. (TSX VENTURE:HLO)
(OTCBB: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 March 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. Previous work
by various owners has identified a gold deposit on the property.
Although there is no current resource that is compliant with NI 43-101,
historical studies, carried out by Consolidated Professor Mines Ltd.
("CPM") in 1989, estimated approximately 850,000 tonnes grading 13.2 g/t
gold in the "proven" and "probable" resource categories (confidence
levels roughly equivalent to definitions of measured and indicated as
per NI 43-101), approximately 300,000 tonnes grading 12.3 g/t, and
approximately 600,000 tonnes grading 11.4 g/t, in the "possible" and
"inferred" categories respectively. The confidence level of the CPM
"possible" category is more or less equivalent to inferred as per NI
43-101, whereas the CPM "inferred" classification is much less defined
and has no equivalent in NI 43-101. An audit on a portion of the CPM
estimate by Strathcona Mineral Services ("SMS"), in 1989, cautioned that
the CPM resource grade estimate might be overstated by as much as 25% to
30% due to cutting practices. Until complete updated resource and
reserve estimates are made, Roscoe Postle Associates Inc. ("RPA"), the
authors of an Independent Technical Report on the Duport property
compliant with NI 43-101 dated November 8, 2004 and on file with the
Company's SEDAR filings, recommends that the SMS conclusion be
considered as a downside in any sensitivity review. In RPA's opinion,
the CPM resource estimate should be considered as an Historical Estimate
under NI 43-101. RPA considers the CPM estimate to be relevant as it is
the most recent estimate and review of documentation shows that it was
prepared using methods and procedures approximately equivalent to
current practices. RPA considers the estimate to be reliable for tonnage
(excluding the CPM inferred category) and reliable for grade, subject to
the downside sensitivity as discussed above.

The Company has not done the work necessary to verify the classification
of the resource, the Company is not treating the historical estimate as
a NI 43-101 defined resource verified by a "Qualified Person" and the
reader is cautioned that the historical estimate should not be relied
upon.

The initial results indicate that suitable structure and gold
mineralization may continue 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 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.

Qualified Person

The above information has been prepared under the supervision of Kevin
Leonard, who is a consulting geologist on the Duport project and is
designated as a "Qualified Person" with the ability and authority to
verify the authenticity and validity of the data. The field work is
supervised by Kevin Leonard, the project "Qualified Person" under the
definition of NI 43-101.

Halo Resources Ltd.

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


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