Mr. Dennis McKnight reports

HI HO SILVER RESOURCES ANNOUNCES PRIVATE PLACEMENT OF UP TO $2 MILLION

Hi Ho Silver Resources Inc. has arranged a non-brokered private placement financing up to an aggregate proceeds of $2-million comprising such number of flow-through shares at a price of eight cents per flow-through unit and Class A units at a price of five cents per unit. The non-flow-through shares will have a share purchase warrant, exercisable at eight cents for a two-year period.

The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals. All securities to be issued under the offering will be subject to a four-month statutory hold period in Canada.

The units shall consist of, and separate immediately upon closing, into one common share of the issuer and one whole warrant. Each warrant shall entitle the holder to purchase one common share for a purchase price of 10 cents per common share for a period of 24 months following the date of issuance.

The flow-through units shall consist of, and separate immediately upon closing, into one common share of the issuer, each to be issued as a flow-through share within the meaning of the Income Tax Act (Canada).