Redhawk Resources, Inc.

Redhawk Resources, Inc.

September 20, 2010 09:00 ET

Redhawk Announces Royalty Buyout Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2010) - Redhawk Resources, Inc. ("Redhawk" or the "Company") (TSX VENTURE:RDK)(FRANKFURT:QF7) is pleased to announce the Company through its wholly owned US subsidiary Redhawk Copper, Inc. has entered into an agreement with AMT (USA) Inc. ("AMT") (the" Agreement") to buyout the 2.25% Net Smelter Royalty ("NSR") retained by AMT as part of the original Copper Creek property acquisition agreement. The Agreement requires a payment of $350,000 on court approval and a further $950,000 in quarterly payments over an eighteen month period. The Agreement also calls for a further $500,000 payment should the Company enter into a major transaction during the two year period after closing. AMT is in Chapter 7 bankruptcy and therefore the Agreement remains subject to court approval which is expected within 60 days. Currently the agreement between Redhawk and AMT requires an annual $125,000 advance royalty payment and has a cap of $25 million.

Stephen Barley, Managing Director of Redhawk commented: "This is a beneficial arrangement for both parties. Redhawk reduces the royalty burden on Copper Creek improving the financial return on our project and the arrangement accelerates payments to AMT's creditors."

About Redhawk

Redhawk is a Canadian-based resource exploration and development company with primary focus on the accelerated development of its advanced stage Copper Creek copper-molybdenum project in San Manuel, Arizona. The 100% owned Copper Creek property consists of approximately seven square miles of almost totally contiguous patented and unpatented mining claims and state prospecting permits, located about 70 miles northeast of Tucson, Arizona and about 15 miles east of San Manuel. The property is in the prolific southwest US porphyry copper belt at the projected intersection of a major northwest belt of porphyry copper deposits or mines (Ray, Miami/Globe, Superior/Resolution, Johnson Camp) and a major east-northeast belt of porphyry deposits (San Manuel/Kalamazoo, Silver Bell, Lakeshore, Safford, Morenci). The property is within sight of the former BHP Kalamazoo/San Manuel copper smelter and mine and within 30 miles of an existing operating copper smelter. The area is a mining friendly and politically secure location with excellent and readily accessible infrastructure.


J. Stephen Barley, Managing Director

The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, Redhawk does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. By its very nature, such forward-looking information requires Redhawk to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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