Copper Creek Project Scoping Study Results

VANCOUVER, BC - Redhawk Resources, Inc. reported results of a Scoping Study (Preliminary Assessment) on its 100% owned Copper Creek Project located in the Bunker Hill Mining District, Pinal County, Arizona. The Scoping Study was prepared by KD Engineering of Tucson, Arizona under the direction of Joseph M. Keane, P. Eng., of KD Engineering pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects of the Canadian Securities Administrators. The Scoping Study is based upon NI 43-101 compliant resource estimates prepared by Independent Mining Consultants ("IMC") of Tucson, Arizona and released on October 29, 2008. Golder Associates, Milne & Associates, WestLand Resources, Call & Nicholas Engineers, and METCON
The Scoping Study financial analysis is pre-tax and based upon an initial mining rate of 2,500 tons per day ("TPD") in near surface breccia resources and increasing to 10,000 TPD as the deeper porphyry resources get developed. Using a copper price of $2.25 per pound, $15.00 per pound molybdenum, $600 per troy ounce gold, $10 per troy ounce silver, and $1000 per pound rhenium, the economic analysis results in a pre-tax NPV of $80.8 million and an IRR of 11% at a 7.5% discount rate. The breakeven copper price is $1.80 per pound (NPV of zero at a zero discount rate). At a 7.5% discount rate, a NPV of zero is produced at a copper price of $2.09 per pound. The NPV of the project based upon the approaches and costs utilized in the Scoping Study at various discount rates is shown below:

Discount Rate          Pre-Tax NPV

0%                 $ 545.2 million
5%                 $ 175.6 million
7.5%               $  80.8 million
10%                $  18.3 million

Joe Sandberg, President of Redhawk, commented: "The Scoping Study is a thorough and conservative baseline starting point to evaluate and improve the economics of the Copper Creek project. The Scoping Study was initiated in May 2008 when metal prices were well above levels seen today and correspondingly many of the costs used were also at higher levels. A 25% to 30% contingency has also been built into this financial analysis. Redhawk believes the Copper Creek project has considerable upside both in terms of exploration potential of the district and potential enhancement of the project economics. The Company has identified numerous factors that reasonably can be expected to dramatically improve the project economics. These include reduction of the current 5.25% net smelter royalties; potential open pit production from the Old Reliable breccia deposit (briefly discussed in the Scoping Study); realization of significant gold and silver credits from the Keel and American Eagle deposits with additional assay information; possible reduction in mining costs in certain of the breccias if development shows ground conditions to be better than the current study anticipates; and the discovery of additional high grade resources from the 80% of Copper Creek which has not been explored including more than 400 additional known breccias. Redhawk, along with many others in the mining industry, believes that metal prices will recover to better levels as the world economies improve and Copper Creek, which could be in operation in a three to five year time frame, will be a very attractive US based project when this occurs."
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 company’s address is 440 - 789 West Pender Street, Vancouver, BC V6C 1H2, 604.633.5088, fax: 604.633.5098, email: [email protected].