Mr. Joseph Kizis reports

HOMESTAKE CLOSES THE FINAL TRANCHE OF $1.6 MILLION EQUITY FINANCING

Homestake Resource Corp. has closed the final tranche of its previously reported non-brokered private placement by issuing 500,000 units at a price of 15 cents per unit for gross proceeds of $75,000. Each unit consists of one common share and one share purchase warrant exercisable to purchase one additional common share for a period of two years at a price of 20 cents. The company closed the first tranche of the private placement on Dec. 28, 2012, by issuing 4,852,500 flow-through units at a price of 20 cents per unit and 4,012,334 non-flow-through units at the price of 15 cents per unit to raise an aggregate of $1,572,350.

Securities issued pursuant to this tranche of the private placement, including common shares, share purchase warrants and finder warrants issued as finders' fees, carry a legend restricting trading of the securities until June 1, 2013. The private placement and payment of finders' fees are subject to regulatory approval.

Net proceeds from the offering will be utilized to finance continued exploration at the company's Kinskuch property, as well as general corporate activities. The 623-square-kilometre Kinskuch property is located immediately to the east and south of the company's Homestake Ridge project, where Agnico Eagle Mining Ltd. has assumed project management. The company holds an option to acquire a 100-per-cent interest in Kinskuch, and the company's diamond drilling program at the Illiance River target on the Kinskuch property during 2011 was successful in intersecting high-grade silver-lead-zinc VMS mineralization in three of four holes. For example, hole KN11-02 intersected several mineralized zones, with the strongest being 2.8 metres of 318 grams per tonne silver and 8.7 per cent combined lead and zinc. The true thickness of the intersection is uncertain at this time. Surface-soil and rock-chip sampling, combined with geophysical data from the company's 2011 airborne program, has extended mineralization to a 4.5-kilometre strike length. The company's recently completed financing will allow the company to begin aggressively exploring this trend in 2013, beginning with drill holes that will offset the 2011 mineralized holes.

The company also announces the resignation of Scott Hean as a director and member of the audit committee, effective Dec. 31, 2012. Fred Sveinson, a director of the company, has been appointed as a member of the audit committee. Homestake's board of directors wishes to thank Mr. Hean for his efforts on behalf of the company and wishes him well in his future endeavours.

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