Mr. Joseph Kizis reports

HOMESTAKE ENTERS INTO A LOAN AGREEMENT

Homestake Resource Corp. entered into a loan agreement with Auryn Resources Ltd. dated May 10, 2016, which provided for the loan of $150,000 to finance the purchase of an NSR from Teck Resources Ltd., on its Homestake Ridge property (see news release dated May 13, 2016) as to $100,000 and as to $50,000 to finance expenses toward negotiating and executing an arrangement agreement with Auryn (see news release dated June 14, 2016).

The loan agreement contained a conversion feature allowing conversion of the indebtedness into Homestake common shares at a conversion price of 10 cents per Homestake common share. Auryn has delivered a conversion notice and, accordingly and subject to the consent of the TSX Venture Exchange, Homestake shall deliver to Auryn 1.5 million Homestake common shares in satisfaction of the indebtedness.

We seek Safe Harbor.