Halo Resources Ltd.

Halo Resources Ltd.

March 02, 2005 16:16 ET

Halo Resources Ltd.: Duport Gold Property Acquisition Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HALO RESOURCES LTD.

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

MARCH 2, 2005 - 16:16 ET

Halo Resources Ltd.: Duport Gold Property Acquisition
Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 2, 2005) - Halo
Resources Ltd. (TSX VENTURE:HLO)(OTCBB:HLOSF)(FWB:HRL)

Marc Cernovitch, President and CEO of Halo Resources Ltd. is pleased to
announce that it has finalized all necessary documentation, and closing
of the DuPort acquisition is in process. Under the terms of the final
agreement the Company will acquire a 100% interest in the DuPort Gold
Property located near Kenora, Ontario from The Sheridan Platinum Group
Ltd. The Company will pay $250,000 cash, issue 1,000,000 common shares,
and issue five-year preferred shares with a face value of $8,000,000 to
the Vendor. The preferred shares have a dividend of $50,000 payable in
years one and two and equal to 4% of the issue price thereafter, are
non-voting, non-convertible, and may be redeemed or retracted by the
Company. The preferred share can be redeemed in consideration of
$8,000,000 plus a penalty of $400,000 or retracted in consideration of
$8,000,000 plus any accrued and unpaid dividends, both of which can be
settled in cash or common shares (at the 15 day weighted average trading
price). If the Company wishes to withdraw the Agreement, the preferred
shares are to be cancelled.

At this time TSX Venture Exchange approvals have been received and the
Company anticipates that the acquisition will close in the next several
weeks. Closing is subject to receipt of all requisite approvals and
consents including the approval of the Ministry of Northern Development
and Mines.

The drilling program at DuPort is proceeding with initial drill results
expected in the next few days.

Halo Resources Ltd. (TSX VENTURE:HLO)(OTCBB:HLOSF)(FWB:HRL)is a
Canadian-based resource company focused on the acquisition of near
production base and precious based 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 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 and the United States Securities and Exchange Commission. The
transaction cannot close until the required Exchange approval is
obtained. There can be no assurance that the transaction will be
completed as proposed or at all. Investors are cautioned that, except as
disclosed in the materials to be prepared in connection with the
transaction, any information released or received with respect to the
transaction may not be accurate or complete and should not be relied
upon. Trading in the securities of Halo Resources Ltd. should be
considered highly speculative. The TSX Venture Exchange has in no way
passed upon the merits of the proposed transaction and has neither
approved nor disapproved the contents of this press release.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Halo Resources Ltd.
    Marc Cernovitch
    President and 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.