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NEWS RELEASE TRANSMITTED BY CCNMatthews FOR: GOLD HAWK RESOURCES INC. TSX VENTURE SYMBOL: CGK DECEMBER 15, 2004 - 16:30 ET Gold Hawk Resources Signs a Letter of Intent to Acquire a High Grade Silver-Gold-Copper Project in Peru TORONTO, ONTARIO--(CCNMatthews - Dec. 15, 2004) - Gold Hawk Resources Inc. (CGK on the TSX Venture Exchange) is pleased to announce that it has signed a letter of intent to acquire a 100% interest in the Cascabamba silver-gold-copper project in Peru. The project encompasses approximately 1100 hectares and is located 50 km. south west of the town of Cajamarca in northern Peru. Under the terms of the letter of intent, Gold Hawk has the option to earn a 100% interest in the property by paying to the owner, a private Peruvian company, a series of cash payments totaling US $ 550,000. The cash payments are as per the following schedule: $30,000 on signing of a formal agreement, $50,000 six months from the date of signing the agreement, $170,000 twelve months from signing of the agreement and $300,000 once the property commences production. The owner will retain a 1.5% NSR royalty of which 1% can be bought back by Gold Hawk at any time for $750,000. In the event that production does not begin, at a minimum rate of 50 tpd, within three years from the signing of a formal agreement, Gold Hawk will have no interest in the property and the agreement will be cancelled. Silver-gold-copper mineralization occurs along three epithermal low sulfidation quartz sulphide veins named Mascota, Protectora and Pozo Rico. The veins are 1.5 km. long and 0.1 to 1.5 meters wide with a known depth extension up to 80 meters below surface. They are constituted of banded quartz-sulphides with bladed barite-carbonate and are exhibiting brecciated and vuggy textures. Sulphides present include tetrahedrite, argentite and enargite. Gold was not systematically analyzed by previous owners and operators of the property. However, the assay data compiled by Cerro de Pasco and Banco Minero de Peru indicated that where high silver values are encountered the ratio of silver to gold is approximately 100- 150 to 1. Gold Hawk's geologists visited the property in September 2004 and values obtained from samples collected from an old stockpile assayed a maximum of up to 10 grams per tonne gold and 1815 grams per tonne silver. In the 1930's, Cerro de Pasco Corporation did some lateral underground development and sank a 40 meter deep shaft on the Protectora vein. Sampling on a level, 35 meters below surface, returned the following assays. These results were from a mineralized shoot measuring 250 meters in length that is open both laterally and at depth (all assay results are from the 1930's): /T/ - 58 meters in length at 46.2 oz/t silver, 0.43 oz/t gold and 4% copper over 0.95 meters; - 33 meters in length at 32.9 oz/t silver, no assays for gold, 2.1% copper over 1.07 meters; - 20 meters in length at 180 oz/t silver, no assays for gold, 8.5% copper over 0.40 meters; - 15 in length meters with no assays; - 18 meters in length at 103 oz/t silver, 0.74 oz/t gold, 4% copper over 0.52 meters; - 80 meters in length with only three assays of 40.0, 18.7 and 16.2 oz/t silver over 0.7 meters; - 26 meters in length at 142 oz/t silver, no assays for gold, 5.7% copper over 0.5 meters; /T/ Assuming a 150 to 1 silver-gold ratio where no gold assays are reported and giving zero grades for the 15 and 80 meter sections which were not assayed or had few assays, the average grade of the 250 meter length of the drift would be 67 oz/t silver, 0.44 oz/t gold and 3.47% copper over an average width measuring 0.65 meters. This mineralization has an in situ gross value of approximately US$ 800 per tonne at current metal prices. Additional ore shoots may occur along the full strike length of the Protectora Vein as previous exploration was limited to only one third of the known length of the vein. For example, a sample collected from an old ore dump located 600 meters to the west of the western most limit of the ore shoot returned 53 oz/t silver and 0.30 oz/t gold, indicating that more ore grade mineralization may be discovered along this vein. Following a 30 day due diligence period to examine the geological, social and legal aspects of the property, Gold Hawk intends to carry out an exploration program, including geological surveys, mapping, geophysics and drilling along the lateral and vertical extensions of the Protectora vein. Assuming that this phase of the exploration program is successful, Gold Hawk plans to rehabilitate and resample the old underground workings, which are currently inaccessible. The objective is to build up sufficient resources and reserves to justify a 100 to 150 tpd operation. At Gold Hawk's Machacala property, an additional 40 meters of drifting has been completed on the Casa de Fuerza vein since our last press release (Sept. 21, 2004). Samples taken at 1.1 meter intervals over a 59 meter section of the vein averaged 3.07 g/t gold and 13.55 g/t silver over a true width of 1.05 meters. Due to the much higher grade nature of the Cascabamba property, Gold Hawk's exploration efforts will be focused on this property in the near term. Gold Hawk is also conducting due diligence on several other advanced stage mining projects in South America. The Company is in excellent financial condition with cash and short-term investments of $900,000 at December 15, 2004. Certain information contained in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include without limitation, statements regarding estimates of reserves and resources, future plans and objectives, results of exploration, uncertainty with respect to changes in general economic or political conditions, title to properties, litigation, legislative, environmental and other judicial, regulatory and competitive developments in areas in which the Company operates. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Gold Hawk's expectations are further disclose under the heading "Risk Factors" in its Annual Report as well as in its Annual Information Form (AIF) both of which are filed with Canadian regulators on SEDAR. Mr. Alain Vachon, P. Eng. Geologist, is the qualified person as per the 43-101 guidelines responsible for the field supervision of the work completed so far. All samples collected by Gold Hawk have been assayed at the ALS CHEMEX laboratory in Lima, Peru. Gold and silver assays have been performed via fire assay-atomic absorption finish on a 30 gram sample. Gold values over 10 g/t were automatically reanalyzed via fire assay gravimetric finish for gold and multi digestion for silver. -30-FOR FURTHER INFORMATION PLEASE CONTACT:
Gold Hawk Resources Inc.
Gordon F. Bub
President and C.E.O.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release