Ms. Lynda Bloom reports

HALO EARNS $1.2 MILLION FOR NSR INTEREST

Halo Resources Ltd. has sold its net smelter return (NSR) interest in the Bachelor Lake mine properties held by Metanor Resources Inc.

Halo acquired a 1-per-cent NSR in the Bachelor Lake mine properties in 2007 and Metanor retains the right to purchase a 0.5-per-cent NSR for $500,000 within 18 months of the commencement of commercial production. Metanor has increased the capacity of the Bachelor Lake mill to an estimated 1,200 tonnes per day but production has not yet commenced from the underground areas of the Bachelor Lake mine where Halo's NSR would apply. In Stockwatch on Jan. 4, 2011, Metanor announced proven and probable underground reserves of 200,177 ounces of gold (using a cut-off grade of 3.43 grams per tonne (g/t) and assuming 843,772 tonnes at 7.38 g/t gold).

Gold Royalties Corp., a Calgary-based income-oriented royalty company, has acquired the 1-per-cent NSR for a purchase price of $1.2-million. Gold Royalties has also agreed to pay Halo 40 per cent of the value of any NSR payments paid for more than 200,000 ounces of gold (or gold equivalent ounces) less normal commercial charges (such as smelter penalties, transportation and insurance).

We seek Safe Harbor.