Mr. Joseph Kizis reports

HOMESTAKE REACQUIRES 100% INTEREST OF HOMESTAKE RIDGE; DRILLING EXTENDS STRIKE OF SLIDE ZONE SILVER MINERALIZATION TO 800 METRES

Homestake Resource Corp. has received notice from Agnico Eagle Mines Ltd. of its intention to let lapse its option to earn an initial 51-per-cent interest in the Homestake Ridge property in northwestern British Columbia, with Homestake retaining 100-per-cent ownership of the property. Drilling completed during the 2014 summer program by Agnico extended the new Slide target to 800 metres of strike length, confirming a new zone of silver mineralization similar to that identified at the Homestake silver deposit and indicating the potential for a similarly rich gold zone downdip, which remains to be tested.

President Joe Kizis commented: "Agnico's drilling has demonstrated that a silver resource is likely to be developed with further drilling at the Slide target. The newly extended portion, with shallow mineralization lying between the existing Homestake silver and South Reef deposits, is particularly intriguing. Our mineral-zoning model, based on our three discoveries made to date on the property, suggests that rich gold mineralization should occur beneath the envelope of silver-biased mineralization seen at the Slide target and we intend to utilize the model in the development of drill targets below the silver-rich mineralization."

Homestake will apply Agnico's and Homestake's exploration work toward assessment requirements of the Homestake Ridge property and to the Kinskuch property (62,500 hectares) for additional one- and two-year periods, respectively. With more than 66,100 hectares in total, Homestake has one of the largest consolidated land packages in the Kitsault district, which is the southern extension of a prolific belt of precious-metal-rich mineral deposits of Jurassic age.

The Homestake Ridge project contains an estimated inferred resource of 911,000 ounces of gold and 20,366,000 ounces of silver (1,225,785 ounces of gold equivalent at an AuEq grade of 5.6 grams per tonne), and an estimated indicated resource of 124,000 ounces of gold and 939,000 ounces of silver (141,000 ounces of AuEq at an AuEq grade of 7.3 g/t). To date, 268 holes have been drilled for a total of 77,845 metres, including the project's highlight intercept from the 2008 drill hole HR08-87, which returned an estimated true width intercept of 52.5 metres averaging 20.99 g/t gold and 11.6 g/t silver (see Oct. 2, 2008, press release).

In order to facilitate the continued exploration and development of the Homestake Ridge property, Homestake has requested Agnico to provide Homestake with an opportunity to continue with the drilling program this exploration season to test high-priority targets without the task of establishing a new camp or mobilizing a drill.

Agnico has provided all assay results from its six-hole program (2,972 metres in total). All holes were drilled at or near the Slide target. Four drill holes were short step-outs from 2013 hole HR13-253, which, as reported in news release NR-10-13, intersected 18.6 metres averaging 101 g/t silver. Two holes were much larger step-outs along strike to the northwest and southeast.

Highlights include the following:

• Hole HR14-264 intersected 4.5 metres of 144 g/t Ag and 0.2 g/t Au beginning at 324.5 metres downhole, and included a 1.5-metre interval of 311.7 g/t Ag and 0.5 g/t Au. Nearby holes contain thick zones of silver-enriched mineralization of similar grade and thickness as intersected in the upper portions of the Homestake silver deposit, which the company views are a direct analogue for the Slide target.
• Hole HR14-266 intersected 4.74 metres of 97.2 g/t silver beginning at 344.56 metres downhole and included a 2.22-metre interval of 140.5 g/t Ag. This hole is located approximately 400 metres to the southeast of hole HR13-253, significantly extending the strike length of this target to the southeast.
• Holes HR14-267 and HR14-265 contain strongly anomalous near-surface silver mineralization that extends the strike length of the Slide target to a total of over 800 metres.

           Depth   From     To  Interval     Au     Ag
Hole No.     (m)    (m)    (m)       (m)  (g/t)  (g/t)

HR13-262   534.9  388.5  389.0       0.5   0.01     30
HR12-263   578.2  375.5  380.0       4.5      -     15
and               461.0  463.0       2.0   0.02     89
HR13-264   613.3  324.5  329.0       4.5   0.20    144
including         325.0  326.5       1.5   0.50    312
HR13-265   266.1   57.5   62.0       4.5   0.03     48
and               136.0  139.5       3.5      -     35
HR13-266   579.6  502.3  507.0       4.7   0.01     97
including         503.0  505.3       2.2   0.02    140
HR13-267   400.6  344.6  347.2       2.6   0.00     88

For further information please visit the company's website.

Robert Macdonald, MSc, PGeo, is Homestake's vice-president of exploration, and is the qualified person responsible for the supervision and preparation of the technical information in this disclosure.

We seek Safe Harbor.