Halo Resources Ltd.

Halo Resources Ltd.

May 04, 2011 08:00 ET

Halo Earns 60% Interest From Goldcorp at West Red Lake

TORONTO, ONTARIO--(Marketwire - May 4, 2011) - Halo Resources Ltd. (TSX VENTURE:HLO)(FRANKFURT:HRLN) ("Halo" or the "Company") is pleased to announce that it has exercised its option to acquire interests in various claims referred to as the West Red Lake Property from Red Lake Gold Mines Partnership (the "Partnership"), a partnership between Goldcorp Canada Ltd. and Goldcorp Inc. (TSX:G)(NYSE:GG) ("Goldcorp").

Halo has expended the $3.25 million on exploration activities at the West Red Lake property as required by the option agreements and has earned the following interests in three groups of claims as shown on the accompanying map (To view, please visit the following link: http://media3.marketwire.com/docs/hlo504i.jpg)

  1. A 60% recorded interest in the Unpatented Property; and
  2. A 45% recorded interest in leasehold patent mining claims KRL47707 and KRL47708 (the "Seventy-Five Percent Claims"); and
  3. A 30% recorded interest in certain patented mining claims (the "Patented Property") located in the Red Lake District of Ontario.

Goldcorp has advised Halo that it does not intend to exercise a back-in right. Pursuant to the agreement Halo shall issue 100,000 fully paid and non-assessable common shares of Halo.

"We are pleased to have reached this important milestone," stated Lynda Bloom, Halo's President & CEO. "Halo is encouraged by the continued exploration success in the West Red Lake area and plans to accelerate exploration with the help of our partner."


Marc Cernovitch, Chairman

About Halo Resources Ltd.

Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. The Company's focus is the 200 sq. km. Sherridon VMS Property, a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities. A 2010 NI 43-101 compliant copper-zinc resource, for four of the known deposits in the district, is available at www.sedar.com. The Company has a joint venture interest in the Duport Property, an advanced gold property near Kenora, Ontario and is the operator for Goldcorp joint venture properties in WestRedLake covering 26 sq. km. The Company is operated by an experienced management team with a growth strategy to develop a diversified portfolio of advanced mining projects.

Forward Looking Statements

This Company Press Release may contain certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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