Mr. Gordon Lam reports

HERCULES CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT AND APPOINTS ADVISORY BOARD MEMBER

Hercules Resources Corp. has closed the first tranche of its previously announced non-brokered private placement of six million units at a price of seven cents per unit for gross proceeds of up to $420,000. The first tranche consists of 4.15 million units at seven cents per unit for gross proceeds of $290,500.

Each unit consists of one common share of the company and one common share purchase warrant exercisable into one common share of the company at a price of 12 cents per warrant for a period of 24 months from the closing date of the offering.

All securities to be issued pursuant to the offering will be subject to a statutory hold period of four months and one day from issuance under applicable Canadian securities law. The proceeds of the offering are planned to be used for exploration and general working capital purposes.

The company has appointed Brian G. Thurston, HBSc, PGeo, to the advisory board. Mr. Thurston holds an honours bachelor of science in geology from the University of Western Ontario. Mr. Thurston has over 31 years of experience working as a geologist around the globe including North America, South America, Africa and India. He has experience working on projects from grassroots to feasibility level. Mr. Thurston was instrumental in the initial exploration, land acquisition and development of Aurelian Resources' Ecuador grassroots exploration and held the position of country manager. Kinross in 2008 acquired Aurelian Resources in a $1.2-billion friendly deal. Mr. Thurston transitioned from geologist to corporate positions in 2004 and has founded several public companies and held positions of director and officer as well as served on multiple committees, including audit, disclosure and corporate governance. Mr. Thurston was president and chief executive officer of Lion Energy Corp. from 2007 to 2011, raising over $30-million before a friendly takeover was successfully completed by Lundin's Africa Oil Corp.

The company has granted 700,000 stock options to directors, officers, an adviser and a consultant. Each option is exercisable at a price of 10 cents per share for a period of five years.

We seek Safe Harbor.