Gold Hawk temporarily suspends milling operations at Coricancha mine

Gold Hawk Resources Inc. announces that it is temporarily suspending crushing and milling operations at its Coricancha mine in Peru due to unexplained ground movement in and around its tailings handling area. This action is being taken as a precautionary measure while a geotechnical audit is completed.

The geotechnical audit was initiated in April at the end of the first full rainy season. The audit was voluntarily initiated to evaluate the response of the tailings handling facility to full production, an entire rainy season and regional seismic activity over the past year.

Gold Hawk management and local and international consultants are on-site analyzing monitoring data and based on the recommendations of its experts, additional geotechnical instrumentation is being installed to monitor the magnitude and rate of potential future movement.

The Company believes that the combined conditions of an unusually heavy rainfall during the recent wet season that has just ended and leakage from a water channel, owned by another party, that passes through the Company’s property are likely contributing factors.

Geotechnical instrumentation that is being installed will provide continuous, long-term monitoring of the performance of the facility. In the meantime, ore is being stockpiled for processing upon re-start of processing operations.

Gold Hawk’s management and Board have taken these necessary, precautionary steps to minimize any risks to our employees, the communities and the environment, said Mr. Kevin Drover, Gold Hawk’s President and CEO.

While we are uncertain as to the extent of the movement we are committed to ensuring that we mitigate risk and in the event that remedial action is required we will implement a plan that upholds our safety and environmental commitments and returns our operations to production, added Mr. Drover.

The current tailings area was scheduled to close within the next two months and a new tailings handling area is under construction near the existing facilities.

The Company is also preparing to permit a new, long-term tailings handling area approximately 20kms from the processing and existing tailings facilities, which is expected to come online in 2009.