Redhawk Resources, Inc.
TSX VENTURE : RDK

Redhawk Resources, Inc.

September 30, 2005 14:48 ET

Redhawk Closing Arizona Copper Acquisition and Closes $2.575 Million Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 30, 2005) - Redhawk Resources, Inc. (Redhawk) (TSX VENTURE:RDK) is pleased to announce that the process of closing the acquisition of the copper project in Arizona known as the Copper Creek Property is underway, finalization of which is subject to receipt by the parties of final closing documentation and formal release of the closing escrow. Further, Redhawk announces it has closed its related private placement financing raising total proceeds of $2,575,050. Both the acquisition and the financing were first announced on August 4, 2005.

The first $300,000 of the total purchase price of $1,600,000 was paid on signing of the acquisition agreement. The final $1,300,000 Copper Creek Property purchase payment has been paid and is held in trust by counsel to the vendor, as is the initial annual Advance Royalty Payments (ARP) of $125,000. Redhawk has agreed it will also pay a 2.25% Royalty Payment (RP) from any Commercial Production from the Copper Creek Property until Redhawk has paid the vendor a total of $25,000,000 in combined ARP's and RP's.

The seven-square-mile Copper Creek Property includes patented mineral and surface titles, unpatented mineral claims and State Leases. The property is located in the southwest porphyry copper belt in Arizona, 75 road miles northeast of Tucson and 15 miles northeast of San Manuel, in an area well situated in regards to existing general and copper mining infrastructure.

The two principal deposit types at Copper Creek are copper and molybdenum bearing breccia deposits, and copper and molybdenum bearing porphyry deposits.

Redhawk anticipates being in receipt of its geological consultant's NI 43-101 Summary Report on the Copper Creek Property later today or early next week, at which point the report will be posted on SEDAR and on Redhawk's website at www.redhawkresources.com. This more detailed information on the Copper Creek Property will also be the subject of a further news release.

Under the private placement, Redhawk sold a total of 17,167,000 units at a price of $0.15 per unit, to raise proceeds of $2,575,050. Each unit is composed of one common share and one share purchase warrant, each warrant entitling the holder to purchase an additional common share of Redhawk at a price of $0.30 per share up to September 26, 2007.

In consideration of arranging the private placement, WestPoint Merchant Ventures Inc. of Vancouver, B.C. received a finder's fee by the issuance of 900,000 units of Redhawk. Each finder's unit has the same terms and conditions as the units issued to the placees.

The shares, finder's shares, warrants, finder's warrants and any shares issued upon exercise of the warrants and finder's warrants are subject to a hold period and may not be traded in British Columbia until January 27, 2006 except as permitted by the applicable securities legislation and the TSX Venture Exchange.

A portion of the proceeds of the private placement have been applied towards the acquisition by Redhawk of the Copper Creek Property. The balance is being directed towards funding exploration and other project related activities.


The TSX Venture Exchange has neither approved nor disapproved this release.

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