SOURCE: Hunt Gold Corporation

February 12, 2009 14:12 ET

Hunt Gold Corporation -- JV Stock Purchases

Company Updates Its Stockholders on Stock Purchases by Its Joint Venture Company

NEW YORK, NY--(Marketwire - February 12, 2009) - Hunt Gold Corporation (PINKSHEETS: HGLC) announced on November 14, 2008 that your Company had formed a Joint Venture Company, being a 50/50 partnership between your Company and a Mining Fund, to acquire shares of your Company's Common Stock as a short to medium term investment.

--  Total purchases to date by the Joint Venture Company now amount to
    1,103,863,000 shares of your Company's "free trading" Common Stock.
    
--  Company confirms that its planned stock buyback and cancellation of
    your Company's shares of Common Stock to commence as announced.
    

The Joint Venture Company is not purchasing these shares of your Company's shares of Common Stock to increase your Company's stock price; this is a short to medium term investment in terms of the agreement between the Joint Venture Company partners.

Your Company's Management wishes to stress that the Joint Venture Company will not be cancelling these shares of its Common Stock purchased and intends to purchase shares of your Company's Common Stock as an investment based upon the prevailing low stock price. At no time does this Joint Venture Company intend to state as to what price it is prepared to pay for its shares on or off the market, nor at what price it will take profits on these purchases of your Company's shares of Common Stock.

This is a short term opportunity upon which the Company intends to capitalize. Your Company has agreed with its Partner that it will not disclose the amount of shares of your Company's Common Stock which the Joint Venture Company intends to purchase, as this will be wholly dependent upon the price of the Company's shares offered in the market from to time and at the discretion of the Management of your Company in conjunction with its Partner in the Joint Venture Company. Your Company's Management will, however, announce details of all purchases and sales of your Company's shares of Common Stock after the sales and purchases have been transacted.

The Joint Venture Company purchased an amount of 156,983,000 "free trading" shares of your Company's Common Stock on November 17, 2008 and at a price of US$0.00035 per share. The Joint Venture Company purchased on November 26, 2008 an additional amount of 196,880,000 "free trading" shares of the Company's Common Stock from another Seller and at a price of US$0.0003 per share of your Company's Common Stock.

The Joint Venture Company purchased on February 11, 2009 an additional amount of 750,000,000 "free trading" shares of the Company's Common Stock from another Seller and at a price of US$0.00007 per share of your Company's Common Stock. That Seller has now cancelled their offer to sell these shares in the market.

The Joint Venture Company is now holding an amount of 1,103,863,000 shares of your Company's Common Stock. All of these purchases were settled in cash.

These purchases by the Joint Venture Company were transacted "off market" to eliminate brokerage costs and to avoid the distortion of the Company's trading volumes.

Your Company's Management wishes to stress that the Sellers of your Company's shares of Common Stock were being forced to dispose of these shares due to financial pressures beyond their control and the Sellers were made fully aware that if they were in a financial position to enable them to hold these shares of your Company's Common Stock for a longer period of time, they would have achieved a far greater price per share.

As announced, the Joint Venture Company cannot and will not purchase any shares of your Company's Common Stock in the market, for ethical reasons, until the Corporate web site goes "live" and stockholders are in possession of all the facts required to enable to them accurately assess the value of your Company. At that time, the Joint Venture Company will commence with the purchase of shares of your Company's Common Stock in the market; particularly at the prevailing stock price.

These acquisitions of these additional shares of your Company's Common Stock by the Joint Venture Company should now assist to serve in the reduction and, hopefully, the elimination of the persistent daily selling pressure of your Company's shares of Common Stock, in the market by financially impaired Sellers.

PLANNED STOCK BUYBACK AND CANCELLATION:

Your Company announced on February 3, 2009 that it is to implement a stock repurchase and cancellation program. This is to be funded through a Loan secured against part of the proceeds of the sale of its "Lookout Silver" interests.

This Loan is being negotiated at this time and stockholders will be kept appraised of the details of this Stock Buyback Program. This will be operated completely independently of the Joint Venture Company stock purchases. Once this Loan has been secured, your Company's Management will commence immediately with stock repurchases in the market.

Shares of your Company's Common Stock repurchased by the Company for cancellation will only be purchased in the market and not in any "off market" transactions. Your Company will be providing its stockholders with full disclosure of all shares repurchased and cancelled by the Company.

The Company remains massively undervalued at this time and your Company's Management is determined to achieve a significant reduction in the amount of outstanding shares of the Company's Common Stock and are of the firm opinion that this process will go a long way towards rectifying this huge discount at which your Company's shares of Common Stock are trading.

ABOUT HUNT GOLD CORPORATION

Hunt Gold Corporation is a Gold Mining & Exploration Company focused on the development and exploration of its Gold properties, namely "Mockingbird," "Ambassador," "Golden Eagle," "Gladstone Lookout," "Lady Alde," "Williamson," "Blue Copper Mine," "Starlight," "American Flag," "Venezia," "Stormcloud," "Cherry," "Buffalo Limecap," "Red Cloud" and "Federal." The Company has completed the sale of its "American Molygold" interests and will be distributing the entire sale proceeds through a Stock Dividend to its stockholders. The Company has disposed of its "Lookout" Silver Projects and will be retaining an amount of US$65 million in quoted stock from that disposal.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.

Contact Information

  • For further information contact:

    MDM Worldwide Solutions, Inc. (Investor Relations Enquiries)
    E Mail: Email Contact
    Telephone: (646) 961-4458
    Contact: Richard Hausig

    Hunt Gold Corporation (Corporate Enquiries)
    E Mail: Email Contact
    Telephone: (954) 840-6956
    Contact: Mr. Michael G Saner