Mr. Dave Antony reports

BLACKHAWK FILES THIRD QUARTER FINANCIAL RESULTS

Blackhawk Resource Corp. has filed on SEDAR the unaudited financial statements and management discussion and analysis for the period ended March 31, 2016.

Highlights for the period ended March 31, 2016, include:

• Interest income of $87,091 on its debt portfolio for the three-month period;
• As at March 31, 2016, Blackhawk had $3,726,597 in working capital;
• As at March 31, 2016, Blackhawk held $2,753,921 in current investments, or 74 per cent of its working capital;
• As at March 31, 2016, net asset value per share was 10 cents.

During the three-month period ended March 31, 2016, the corporation continued to refocus its investment portfolio in debt-type instruments. This increased focus in debt instruments has allowed the corporation to earn over $87,000 in interest income during this three-month period and over $331,000 in the first nine months of its fiscal year. Blackhawk continues to hold numerous equity investments and has begun to strategically focus its equity investments in the area of e-sports and fantasy sports. With the current state of the junior resource equity markets, it feels this focus in its equity investments is a manner to obtain a significant return on its investable capital. The corporation continues to review both equity and debt investment opportunities and has continued with this industry focus in the current quarter. The goal of this strategy is to develop a portfolio of investments (which is expected to include equity, debt instruments and direct asset investments in certain situations) that will continue to provide positive cash flow returns. To date, the corporation has paid four dividends.

Portfolio investments

As at March 31, 2016, the corporation held total investments of $3,228,735 comprising equity-type investments of $1,262,127, debt-type investments of $1,781,061, and oil and gas assets of $185,516. In addition, the corporation held a cash balance of $921,567.

        
      INVESTMENTS AT FAIR VALUE BY SECTOR AS AT MARCH 31, 2016
                                                         
Sector                             Cost     Total fair     % of total 
                                                 value     fair value

Oil and gas producers          $297,817        $59,400             5%
Mining                          570,140        818,315            65%
Technology and media            563,000        384,412            30%
                             ----------     ----------           ----  
Total                        $1,430,957     $1,262,127           100%
                             ==========     ==========           ====

      CURRENT DEBT INSTRUMENT INVESTMENTS AS AT MARCH 31, 2016

Short-term loans                                           $1,491,794
                                                           ----------    
Total current investments held to maturity                 $1,491,794
                                                           ==========   

   
     LONG-TERM DEBT INSTRUMENT INVESTMENTS AS AT MARCH 31, 2016
                                                     
Mortgage receivable                                          $150,000
Debenture                                                     139,267
                                                             --------
Total long-term investments held to maturity                 $289,267
                                                             ======== 

             OIL AND GAS INVESTMENTS AS AT MARCH 31, 2016

Non-operated properties                                      $117,885
GORR                                                           67,662
                                                             --------
Total property, plant and equipment                          $185,547
                                                             ========

We seek Safe Harbor.