Mr. Joseph Kizis reports

NEW HIGH-GRADE DRILL INTERCEPT POINTS TO FOURTH MINERAL DEPOSIT AT HOMESTAKE RIDGE

Homestake Resource Corp. optionee Agnico Eagle Mines Ltd. has provided the company with results of the 2013 exploration program for the Homestake Ridge project. The highlight of the program is a bonanza-grade silver intercept in drilling southeast of the Homestake Silver deposit that appears to be the edge of a new mineral deposit, possibly on the same structure or on a parallel structure to the one hosting the Main Homestake and Homestake Silver deposits. Hole HR13-253 contains an 18.6-metre interval averaging 101.8 grams per tonne silver from 364.4 m to 383.0 m downhole, including a 0.5-metre interval averaging 1,675.0 g/t silver from 364.4 m to 364.9 m (the true thickness has not been determined yet).

The bonanza-grade silver drill intercept is in an area referred to as the Slide target, which is located 400 metres to the south of the Homestake Silver deposit. Elevated silver values and strongly anomalous pathfinder minerals, such as antimony, barium and arsenic, were returned from two holes drilled updip from the bonanza-grade intercept. These holes contain similar pathfinder values to those present in holes located adjacent to the Homestake Silver deposit. A lateral offset (that is, HR13-258) to the interval was terminated as the drill deviated from its intended direction and could not reach the projected target. This hole still ended in anomalous silver mineralization of up to 14 g/t Ag over a one-metre interval (469.5 m to 470.5 m).

The mineralized interval comprises a series of colloform banded quartz-carbonate veins containing galena (lead), sphalerite (zinc), pyrite, chalcopyrite (copper) and black sulphosalts (silver) with a distinct epithermal vein character, similar in style to veins most closely associated with upper portions and lateral margins of the nearby Homestake Silver deposit (4.4 million tonnes grading 2.8 g/t gold and 130.4 g/t silver at an $85 net smelter return cut-off). The intercept occurs at 275 metres vertically below surface.

Agnico Eagle has been operating the project since January, 2013, as a continuation of the 2012 option agreement on the property. The 2013 exploration program included:

• 3,947 metres of core drilling in 10 holes distributed widely at the property;
• Surface mapping and prospecting throughout the property;
• Soil sampling over previously untested areas;
• The completion of 18.9 line kilometres of induced polarization/resistivity geophysics over several target areas, including the Homestake Main, Homestake Silver and South Reef zones.

Work by Agnico Eagle in 2013 was designed primarily to examine several new areas and deposit types throughout the property. Mapping positively identified a multikilometre strike length of what has been interpreted to be equivalent to the Eskay Creek horizon in the Upper Hazelton stratigraphy in two areas on the property, including a large lense of sedimentary rocks located to the south of the Homestake Silver deposit. Four holes tested this sedimentary package with hole HR13-252 returning 82.5 metres averaging 1,580 parts per million zinc, indicating possible proximity to a previously undetected volcanogenic massive sulphide system.

Drilling also tested a geophysical anomaly adjacent to the Main Homestake zone, the stratigraphy east of the deposits, the North Dome area and the stratigraphy to the northwest of the South Reef deposit.

Work by Agnico Eagle also highlighted stratigraphic and metallogenic similarities between the Homestake Ridge project and several other major deposits throughout the Hazelton belt of northwestern British Columbia, including the Dolly Varden deposit located eight kilometres to the southeast, Kerr-Sulphurets-Mitchell (64 million ounces Au, 370 million ounces Ag and 16 billion pounds copper), and Brucejack projects (14 million ounces Au and 63 million ounces Ag) located approximately 80 kilometres to the northwest of the property, which are currently being explored and developed by Seabridge Gold and Pretium Resources Inc.

Vice-president of exploration Rob Macdonald noted: "Of 262 holes drilled on the project by Homestake and Agnico Eagle, 31 holes, including currently reported hole HS13-253, contain intervals of bonanza-grade silver mineralization, that being over 500 g/t Ag. It is important to note that 29 of these 31 holes occur within the Main Homestake or Homestake Silver deposits, one of these holes lies between those two deposits, and the other hole is HS13-253. That spatial relationship, along with vectors from the few existing nearby drill holes, indicates to us that we are on the edge of the next high-grade gold/silver deposit at Homestake Ridge. These types of deposits typically form as discrete mineral deposits along important structures that together can form multimillion-ounce mining camps."

Corporate update

Homestake Resource is pleased to announce the appointment of Nazlin Rahemtulla as a director of the company. Ms. Rahemtulla is an independent business consultant. Previously, she was the human resources manager at Gowling Lafleur Henderson; chief operating officer of Weiler Smith Bowers Consulting Structural Engineers; vice-president and chief operating officer of The McLean Group; acted as investment adviser for RBC Financial Group (RBC Dominion Securities Inc); and served as manager, international services, for RBC Global Private Banking. Ms. Rahemtulla has a diploma in business administration from St. Godricks College in London, England, and earned a fellowship from the Institute of Canadian Bankers (FICB).

Homestake Ridge deposit

Homestake owns a 100-per-cent interest in the Homestake Ridge project, located in the Kitsault mineral district in northwestern British Columbia, subject to various royalty interests held by vendors. The project is being advanced as a potential high-grade underground mining operation. At an $85 NSR cut-off value and based on drilling completed through 2012, the project contains an estimated National Instrument 43-101-compliant indicated resource of 124,000 ounces gold and 939,000 ounces silver (141,000 ounces gold equivalent at 7.3 g/t AuEq grade) plus an inferred resource of 911,000 ounces gold and 20,366,000 ounces silver (1,225,785 ounces AuEq at 5.6 g/t AuEq grade) in three deposits. Visit the company website to see how the Homestake Ridge resource estimate compares with gold deposits worldwide, as ranked by Natural Resource Holdings (June, 2012).

To date, 262 holes were drilled for a total of 74,973 metres, and multiple exploration targets remain to be tested on the large 3,617-hectare property. Agnico Eagle Mines has assumed project management since January, 2013, under an option agreement signed in August, 2012, to finance exploration and development costs of $25.3-million over a five-year period to earn a 65-per-cent interest in the property.

Rob Macdonald, PGeo, is the vice-president of exploration for Homestake and is the qualified person responsible for reviewing the technical results in this release.

We seek Safe Harbor.