Homestake Reacquires 100% Interest of Homestake Ridge

VANCOUVER, BC - Homestake Resource Corporation has received notice from Agnico Eagle Mines Ltd. of its intention to let lapse its option to earn an initial 51% interest in the Homestake Ridge property in northwestern British Columbia, with Homestake retaining 100% ownership of the property. Drilling completed during the 2014 summer program by Agnico extended the new Slide target to 800 meters of strike length, confirming a new zone of silver mineralization similar to that identified at the Homestake Silver Deposit and indicating the potential for a similarly rich gold zone down dip, which remains to be tested.

President Joe Kizis commented, "Agnico's drilling has demonstrated that a silver resource is likely to be developed with further drilling at the Slide target. The newly extended portion with shallow mineralization lying between the existing Homestake Silver and South Reef deposits is particularly intriguing. Our mineral-zoning model, based on our three discoveries made to date on the property, suggests that rich gold mineralization should occur beneath the envelope of silver-biased mineralization seen at the Slide target, and we intend to utilize the model in the development of drill targets below the silver-rich mineralization."

Homestake will apply Agnico's and Homestake's exploration work towards assessment requirements of the Homestake Ridge Property and to the Kinskuch Property, for additional one and two year periods, respectively. With more than 66,100 hectares in total, Homestake has one of the largest consolidated land packages in the Kitsault district, which is the southern extension of a prolific belt of precious metal-rich mineral deposits of Jurassic age.

The Homestake Ridge project contains an estimated Inferred Resource of 911,000oz gold and 20,366,000oz silver (1,225,785oz AuEq @ 5.6g/t AuEq grade) and an estimated Indicated Resource of 124,000oz gold and 939,000oz silver (141,000oz AuEq @ 7.3g/t AuEq grade). To date, 268 holes have been drilled for a total of 77,845 meters, including the project's highlight intercept from the 2008 drill hole HR08-87, which returned an estimated true width intercept of 52.5 meters averaging 20.99g/t Au and 11.60g/t Ag.

In order to facilitate the continued exploration and development of the Homestake Ridge Property, Homestake has requested Agnico to provide Homestake with an opportunity to continue with the drilling program this exploration season to test high-priority targets without the task of establishing a new camp or mobilizing a drill.