Mr. Joseph Kizis reports

HOMESTAKE ANNOUNCES AG&SM RESULTS AND APPROVAL OF ARRANGEMENT

Homestake Resource Corp. has provided the following update. At the annual general and special meeting of shareholders held on Aug. 25, 2016, the company's shareholders passed a special resolution approving the company's previously announced statutory arrangement pursuant to which Auryn Resources Inc. will acquire all of the issued and outstanding common shares of the company in exchange for shares of Auryn. The special resolution was passed with 98.24 per cent of the votes cast at the meeting voting in favour.

Subject to final receipt of regulatory approvals and a final order from the Supreme Court of British Columbia, shareholders and warrantholders of Homestake will exchange their shares for shares and warrants of Auryn on the ratio of 17 to one. Incumbent directors and officers of Homestake will resign from their respective positions, and Homestake will become a wholly owned subsidiary of Auryn and will delist its shares from the TSX Venture Exchange. It is expected that this process will be completed in September, 2016.

A total of 27,149,419 common shares were represented at the meeting, representing 39.05 per cent of the votes attached to all outstanding common shares of the company as at the record date. All of the matters submitted to the shareholders for approval as set out in the company's notice of meeting and management information circular dated July 21, 2016, were approved by the requisite majority of votes cast at the meeting.

Smythe LLP, chartered professional accountants, was reappointed as auditor of the company for the ensuing year, and shareholders approved the company's 2016 10-per-cent rolling stock option plan.

Shareholders voted in favour of setting the number of directors at five. The following five incumbent directors were re-elected: Joseph Kizis Jr., Lawrence Page, Stephen Beardslee, Declan Costelloe and Jeffery Tindale. Following the meeting, the board of directors reappointed Mr. Kizis as president, Mr. Page as chairman and corporate secretary, Graham Thatcher as chief financial officer, and Robert MacDonald as vice-president of exploration.

We seek Safe Harbor.