Mr. Marc Cernovitch reports

HALO UPDATE FOR SHERRIDON VMS PROPERTY, MANITOBA

Halo Resources Ltd. intends to re-evaluate the aggregate mineral resource for the Sherridon VMS property, Manitoba, to incorporate recent drill results provided to Halo by HudBay Minerals Inc. (see Halo's press release in Stockwatch news dated March 30, 2011). The 20,000-hectare Sherridon VMS property includes the Cold, Lost, Jungle and Bob copper-zinc deposits.

In summary, the recent drilling at the Lost deposit included:

• The results of four holes (HLL001, 002, 003 and 006), reported in Stockwatch news Feb. 21, 2011, extended the previously identified Lost mineralization northward approximately 100 metres from the previously identified high-grade envelope. These results included an 11.9-metre intersection of 1.54 per cent copper and 5.42 per cent zinc in HLL003.
• Six infill holes (HLL016, 017, 004, 013, 014 and 005) confirmed the continuity of the copper-zinc mineralization within this 100-metre strike extension zone. HLL016 reported 1.43 per cent copper and 1.51 per cent zinc over 12.07 metres at a depth of approximately 75 metres below surface.
• High-grade gold and silver intersections were reported approximately 25 metres north of the copper-zinc mineralized zone including 8.75 grams per tonne (g/t) gold and 46.39 g/t silver over 5.50 metres in hole HLL013 that included 24.68 g/t gold and 130.67 g/t silver over 1.35 metres and 3.60 g/t gold and 98.62 g/t silver over 1.30 metres in hole HLL014.

HudBay had described the Lost deposit as a high-grade plunging feature over a strike length of approximately 390 metres, and mineralization has now been extended an additional 100 metres in strike length based on the recent drill program. HudBay has indicated that a resource estimate was generated for the Lost deposit based on 2010 drilling and an underground mining model that assumes direct shipping to the Flin Flon mill. HudBay stated that it intends to prepare a prefeasibility study during 2011 to determine how the project fits with HudBay's long-term production plans.

The resource estimate, shown in the associated table, was presented by HudBay in its March 31, 2011, news release in Stockwatch. It does not include the 2011 results from an additional 1,794 metres of diamond drilling, equivalent to an increase of 30 per cent in project meterage since the end of 2010.

                            RESOURCE ESTIMATE

Category              Tonnes   Au (g/t)    Ag (g/t)      Cu (%)      Zn (%)

Indicated            411,000        1.0        20.0         1.8         6.1
Inferred              69,000        0.8        16.5         1.5         6.2

Notes
1.  CIM definitions were followed for the estimation of mineral resources.
    Includes drilling up to the end of 2010.
2.  Mineral resources are estimated at a ZNEQ cut-off of 4 per cent 
    (ZNEQ per cent equals Zn per cent plus Cu per cent by 2.771 plus 
    Au g/t by 1.028 plus Ag g/t by 0.015) and a minimum two-metre core 
    length.
3.  Long-term U.S. metal prices of $900 (U.S.) per ounce gold, $15 per
    ounce silver, $2.50 per pound copper and $1 per pound zinc were 
    used for the estimation of ZNEQ.
4.  Metal recovery assumptions of 65 per cent gold, 57 per cent silver, 
    92 per cent copper and 83 per cent zinc were used for the estimation 
    of ZNEQ.
5.  Specific gravity measurements were taken on a portion of the samples,
    where actual measurements were not available average SG values were
    used.

David Garofalo, president and chief executive officer of HudBay, is quoted in HudBay's March 31 news release in Stockwatch as saying, "The high-grade and near-surface deposit confirms our belief that the Lost property has the potential to be a future source of feed for our concentrator in Flin Flon."

Halo included the Cold and Lost mineralization plus its 100-per-cent-owned Jungle and Bob deposits in the Sherridon VMS property NI 43-101-compliant resource estimate dated Nov. 24, 2010. All the deposits are within a five-kilometre radius, and the Halo mineral resources are estimated using net smelter return (NSR) assumptions and both surface and underground mining methods.

Halo also completed a drill program in March on ground held 100 per cent by Halo, and assays are pending. Halo is planning additional exploration work on selected targets within the 20,000-hectare Sherridon VMS property for the summer field season.

Background

An option agreement announced Dec. 21, 2009, allows HudBay to earn up to a 67.5-per-cent joint venture interest in a 1.1-square-kilometre area of the 200-square-kilometre Sherridon VMS property in Manitoba. HudBay made the required first anniversary cash payment of $150,000 and completed over $820,000 of expenditures as of January, 2011. A total work commitment of $1.35-million and additional $400,000 cash payment are required by Dec. 21, 2011, for the option to remain in good standing. HudBay also has exercised its back-in rights for the Jungle deposit and must spend $2,025,000 to earn a 51-per-cent interest.

The above information has been prepared under the supervision of Lynda Bloom, PGeo, who is designated as a qualified person with the ability and authority to verify the authenticity and validity of the data.

We seek Safe Harbor.