Halo Resources Ltd.
FRANKFURT : HRL
OTC Bulletin Board : HLOSF
TSX VENTURE : HLO

Halo Resources Ltd.

August 22, 2005 16:58 ET

Halo Resources Ltd. Announces $3.18 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 22, 2005) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Mr. Marc Cernovitch, President and CEO of Halo Resources Ltd. (TSX VENTURE:HLO)(OTCBB:HLOSF)(FWB:HRL) is pleased to announce a non-brokered private placement of up to 2,500,000 units at a price of $0.60 per unit and up to 2,400,000 flow-through shares at a price of $0.70 per flow-through share, for aggregate gross proceeds of up to $3.18 million. Each unit will consist of one common share and one common share purchase warrant. Each whole common share purchase warrant entitles the holder thereof to acquire one common share of the Company at a price of $0.70 for a period of 24 months. A cash commission of 7.5% and 10% warrants is payable on this placement.

The completion of the financing is subject to receipt of all applicable regulatory approvals and consents, including the approval of the TSX Venture Exchange.

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

Halo Resources Ltd. 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; Bachelor Lake, which is a gold exploration project with, and a letter of intent regarding Quarter Moon, which is a grass roots gold 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.

ON BEHALF OF THE BOARD

Marc Cernovitch, President and 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.

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

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