Hawthorne Gold announces amended financing terms

Hawthorne Gold Corp. has amended the terms of its previously announced financing. The brokered private placement (the “Offering”) has been amended to raise gross proceeds of up to $17 million led by Blackmont Capital Inc. and including J.F. Mackie & Company Ltd. (collectively the “Agents”).

The Offering consists of up to 4,000,000 units (the “Units”) priced at $1.75 per Unit to raise gross proceeds of up to $7 million. Each Unit consists of one common share and one-half warrant, with each whole warrant exercisable for a period of 24 months from the closing date of the Offering, to acquire one common share at $2.25 per common share.

The Offering also consists of up to 5,128,205 flow-through common shares (the “Flow-Through Common Shares”) priced at $1.95 per share to raise gross proceeds of up to $10 million. The Agents will receive a cash commission of 6% of the gross proceeds raised, and compensation options equal to 6% of the aggregate number of Units and Flow-Through Common Shares sold pursuant to the Offering. Each compensation option will entitle the holder thereof to purchase one common share at an exercise price of $1.75 per common share for a period of 12 months from the closing of the Offering.

Proceeds from the Offering will be used to fund the Company’s 2008 field work on the Frasergold deposit, including a planned 26,000 metre definition drill program, development work at the Table Mountain gold project to advance to planned production in 2009, definition drilling at the Taurus deposit and for general working capital. The acquisition of the Table Mountain gold project is subject to the completion of the statutory plan of arrangement (the “Arrangement”) between Hawthorne and Cusac Gold Mines Ltd. (“Cusac”) expected to close in early April 2008. The closing of the Arrangement is subject to final regulatory approval.

The common shares and warrants to be issued in connection with this Offering will be subject to a four month hold period from the closing date of the Offering in accordance with the policies of the TSX Venture Exchange (the “Exchange”) and applicable securities laws.