Mr. Kevin Weston reports

BEAUFIELD PROVIDES ADDITIONAL DETAILS REGARDING PROPOSED ACQUISITION OF BALMAT HOLDING CORPORATION

Beaufield Resources Inc. has provided additional details regarding its proposed acquisition of the Balmat zinc mine in New York via the acquisition of all the issued and outstanding shares of the capital of Balmat Holding Corp., a wholly owned subsidiary of HudBay Minerals Inc.

As disclosed in its news release of Feb. 19, 2013, Beaufield signed an exclusivity agreement and a non-binding letter of intent with HudBay, an arm's-length party, to acquire Balmat Holding for payments totalling $12-million and up to $2-million in initial equity of Beaufield. As part of the acquisition, Beaufield will assume the decommissioning and restoration liabilities of Balmat Holding estimated at $20.9-million as at Dec. 31, 2012. The LOI and exclusivity agreement give Beaufield 90 days to complete its confirmatory due diligence review, negotiate a definitive agreement and close the acquisition based on the terms provided for in the LOI.

Closing of the acquisition is subject to a number of conditions, including completion and execution of a definitive agreement, filing of a National Instrument 43-101-compliant geological report, filing audited consolidated financial statements of Balmat Holding for the year ended Dec. 31, 2012, and receipt of all required regulatory approvals.

It is anticipated that a financing by way of debt or equity and/or offtake will be completed concurrently with the closing of the acquisition to finance the cost of restarting the operation of Balmat; however, closing of the acquisition is not conditional upon raising these funds.

By the closing date of the acquisition, Beaufield will consider adding senior executives and directors to ensure its management team and board have the appropriate mix of skills in operations and exploration activities.

Balmat Holding financial information

The attached table sets out certain unaudited consolidated financial information in respect of Balmat Holding for the fiscal years ended Dec. 31, 2012, and 2011. Such information has been prepared in accordance with international financial reporting standards (IFRS) and is stated in thousands of dollars.

                                                 For the year  For the year 
                                                        ended         ended 
                                                      Dec. 31,      Dec. 31, 
                                                         2012          2011 

Revenue                                                     -             - 
Cost of sales                                               -             - 
Gross profit                                                -             - 
Other operating                                                             
Exploration and evaluation                                406           768 
Other operating income                                     (8)            - 
Other operating expense                                 3,357         5,893 
Results from operating activities                      (3,755)       (6,661)
Finance income                                           (485)          (29)
Finance expense                                           298           454 
Other finance losses (gains)                               33           103 
Net finance expense (income)                             (154)          528 
(Loss) before tax                                      (3,601)       (7,189)
Tax expense                                                 -             - 
(Loss) for the year                                    (3,601)       (7,189)

In August of 2008, HudBay suspended the Balmat operations due to prevailing market conditions, including declining zinc prices, and since then, it has been on care and maintenance. As at Dec. 31, 2012, HudBay recorded the carrying value of the Balmat property, plant and equipment at an estimated fair value less costs for sale, and the material and supplies inventory at its net realizable value.

The decommissioning and restoration liability relates to the rehabilitation and closure of the Balmat mine. The amount of the provision has been recorded based on estimates and assumptions that HudBay believes are reasonable; however, actual decommissioning and restoration costs may differ from expectations.

The intercompany loan with HudBay will be eliminated concurrently with closing of the acquisition.

We seek Safe Harbor.