VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2008) - Gold Hawk Resources Inc. ("Gold Hawk" or the "Company") (TSX VENTURE:CGK) provides below a summary of the Company's financial results for the second quarter ended June 30, 2008. Note that due to production suspension as of May 9, 2008, production results relate only to the period April 1, 2008 to May 8, 2008.

Second Quarter Highlights

- Generating second quarter revenue from metal sales of $3,289,476

- Average daily ore processed of 410 tonnes per day processing 15,587 tonnes of ore in the April 1-May 8 period, with production of 653 ounces of gold, 35,946 ounces of silver, 390,127 pounds of lead and 468,012 pounds of zinc;

- Improving recoveries in floatation and gold circuits with gold concentrate achieving budgeted recovery levels for the first time and lead and zinc metallurgical recoveries exceeding test grades;

- Completing US$2.0 million bridge financing in June and subsequent to quarter-end, raising $3.3 million in a private placement and received US$2.0 million advance on property insurance claim;

- Achieved slope stability in and around Coricancha tailings and processing plant following May 9 suspension of production due to ground displacement caused by a third party saturation irrigation system; and

- Rene Galipeau joins the Board of Directors and is appointed to the Audit Committee.

"Gold Hawk achieved its best-ever metal recoveries in the second quarter prior to our production halt, particularly in gold recoveries where for the first time we exceeded targeted 68% recovery in early May," said Mr. Kevin Drover, President and CEO of Gold Hawk. "With mitigation work resulting in stability being achieved in early August and the preparation for the new tailings handling area at Chinchan well advanced under the permissions of the Emergency Decree, Gold Hawk looks forward to receiving Permits imminently."

"Gold Hawk overcame significant challenges in the second quarter after suspending operations due to ground displacement caused by a third-party flood irrigation system," said Mr. Drover. "While overcoming this challenge, the Gold Hawk team has had to make difficult decisions to ensure environmental compliance, stabilize the Tamboraque hillside and source additional financing. We remain on track to return to production in the second quarter 2009."

The results for the three months ended June 30, 2008 were materially affected by the May 9 temporary suspension of production at its Coricancha mine in Peru. The second quarter financial results reflect the partial production for the quarter.

For this three-month period ended June 30, 2008, the mine production is summarized as follows:

For the Quarter Ended            June 30, 2008  Mar 31, 2008  Dec 31, 2007
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Ore processed/tonnes milled             15,587        36,908        35,207
Average tonnes milled per day (i)          410           405           382
Average gold grade (grams/tonne)          3.06          3.13          2.66
Gold recovery (%)                           43            41            21
Gold ounces produced                       653         1,511           647
Average silver grade (grams/tonne)          91            95            81
Silver recovery (%)                         79            79            77
Silver ounces produced                  35,946        81,622        70,676
Pounds of lead produced                390,127       804,616       561,076
Pounds of zinc produced                468,012       885,009       814,828
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(i) For the 3 months ended June 30, production ceased on May 8.

Prior to the temporary suspension of crushing and milling operations, there were further improvements in the operating rate, metal recoveries, concentrate grades and production compared to first quarter results.

For the quarter ended June 30, 2008, revenues from the sale of gold and silver dore, and from lead and zinc concentrates, totaled $3,289,476 (Q2, 2007 $Nil) for the period, and direct operating costs totaled $5,295,076 (Q2, 2007 $Nil). Direct operating costs include non-cash expenses of depreciation and depletion of $634,728 (Q2, 2007 $Nil) and accretion of asset retirement obligation of $259,926 (Q1, 2007 $Nil).

Transportation costs to move wet tailings as well as dike maintenance costs for the tailings handling area added US$351,131 of direct costs for the three-month period ended June 30, 2008.

Summary of Quarterly Results

               June 30, 2008   Mar 31, 2008   Dec 31, 2007   Sept 30, 2007
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Sales
 revenue      $    3,289,476  $   2,703,855  $   1,665,525  $            -
Interest
 income       $        4,327  $      10,967  $      57,695  $       64,946
Net loss
 before
 extraordinary
 loss         $   (4,798,472) $  (3,731,226) $  (3,199,124) $   (3,567,558)
Basic and
 diluted loss
 per share    $        (0.03) $       (0.02) $       (0.02) $        (0.02)
Extraordinary
 loss         $  (16,542,015) $           -  $           -  $            -
Basic and
 diluted loss
 per share    $        (0.10) $           -  $           -  $            -
Net loss for
 the period   $  (21,340,487) $  (3,731,226) $  (3,199,124) $   (3,567,558)
Basic and
 diluted loss
 per share    $        (0.12) $       (0.02) $       (0.02) $        (0.02)
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               June 30, 2007   Mar 31, 2007   Dec 31, 2006   Sept 30, 2006
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Sales
 revenue      $            -  $           -  $           -  $            -
Interest
 income       $       50,235  $      99,073  $      16,609  $       23,704
Net loss for
 the period   $   (4,795,153) $    (699,969) $  (2,296,531) $     (449,475)
Basic and
 diluted loss
 per share    $        (0.03) $           -  $       (0.02) $            -
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During the quarter, the Company recorded a net loss before extraordinary loss of $4,798,472 ($0.03 basic and diluted loss per share) as compared with a net loss of $4,795,153 ($0.03 basic and diluted loss per share) in 2007. The loss for the current year includes a loss from mining operations for the quarter ended June 30, 2008 of $2,900,254 (Q2, 2007 $Nil), incurred in the Company's April 1 - May 8 partial quarter of commercial production at its Coricancha Mine in Peru.

Additional items contributing to the quarterly loss included stock-based compensation expense of $50,000 (Q2, 2007 $529,000), general and administration expenses of $1,353,502 (Q2, 2007 $615,437) and a foreign exchange loss of $109,185 (Q2, 2007 $1,658,095), which resulted primarily from the weakening of the $Canadian/$US exchange rate on the Company's US dollar loan advances to its foreign subsidiary.

During the period, a gain on the Company's lead and zinc derivative instruments of $324,297 (Q2, 2007 ($1,725,541)) was also incurred, consisting of both losses incurred on derivative settlements as they came due and a mark-to-market adjustment on the Company's existing derivative instruments prior to May 27, when the Company settled all instruments for proceeds of $348,175.

Financial position

The Company had a working capital deficiency of $22,628,174 as at June 30, 2008. The decrease in working capital is due to mitigation costs of $10,706,850 related to the ground displacement, the fact that the Company's loan facility of $9,650,526 is now all current, and a $3,073,466 allowance on Value Added Tax receivable due to the uncertainty of future revenues.

The Company has received a US$2.0 million advance from its current property insurance claim related to the ground displacement in the tailings area, and it is currently processing a business interruption claim. The Company intends to claim all admissible expenses incurred due to the ground displacement near its Coricancha facilities. While the Company has been successful in raising funds in the past, there is no assurance that it will continue to do so in the future. Although the Company achieved commercial production at the Coricancha Mine in Peru on October 1, 2007, it has not yet generated a profit from mining operations. The Company has incurred losses from inception including a net loss before extraordinary items of $4,798,472 for the three months ended June 30, 2008.

The Company's cash flow has been adversely affected by the temporary suspension of mine operations; consequently, management has initiated a strict cost control program to effectively control expenditures. In spite of these cost control measures, it is expected that cash on hand at August 29, 2008, will not be sufficient to fund the Company's needs for the near future. Management is currently reviewing several funding options including equity and debt financing and is in active discussions with its primary lenders. Specifically, the Company has negotiated a "standstill" agreement with its primary lender that postpones all scheduled payments until October 1, 2008. The Company is in discussions with its lending partners and intends to replace or renegotiate all of its existing loan facilities prior to them becoming due.

Outlook

The Emergency Decree issued on July 18 by the Presidential Council of Ministers of Peru declared a state of emergency in the District of San Mateo, specifically the Tamboraque hillside near the Company's Coricancha tailings area and processing plant, and calls for the relocation of these facilities. The re-start of mining activities at Coricancha and processing production relies upon a number of pre-conditions, including adequate financing, geotechnical counsel regarding the ground displacement and approval and completion of the long-term Chinchan tailings impoundment area.

Subsequent to May 9, the Company has completed a US$2.0 million bridge loan, a $3.3 million private placement and received a US$2.0 million advance on its insurance claims. The claims are associated with business interruption and property insurance on assets affected by the ground displacement near its Coricancha facilities 90 kms east of Lima, Peru. The US$2.0 million advance on the Company's claim is part of total coverage of US$14.5 million included in the insurance policy. The company intends to claim all expenses incurred due to the ground displacement caused by a third-party saturation irrigation system, which led to Gold Hawk's decision to temporarily cease production in May 2008.

Gold Hawk expects to receive additional advances on its insurance claims following the completion of the insurance company's evaluation and as the Company submits relocation and mitigation cost estimates.

Engineering and business planning are underway and the Company has submitted the necessary documentation to the Ministry of Energy and Mines for the construction permits to begin work at Chinchan. Gold Hawk anticipates permits to move the tailings will be issued imminently, and that production will restart in the second quarter 2009.

Gold Hawk's management team was enhanced during the second quarter with the addition of Omar Salas as Vice President Finance and Chief Financial Officer effective May 1. Mr. Salas has extensive international experience in the mining industry with a focus on Latin America working for companies such as Placer Dome, Glencairn Gold and Rusoro Mining. He has held several senior finance positions in his more than 20 years in the industry and is fluent in Spanish, English and French. Mr. Salas was most recently the CFO of Rusoro Mining where he successfully completed all post-acquisition filings with regulatory bodies, organized the Treasury function and reinforced internal accounting controls.

In addition to organic growth, it is management's objective to grow the Company and build value for shareholders by pursuing external opportunities.

Board changes

The Board of Gold Hawk is pleased to welcome Mr. Rene Galipeau, CGA, as a new Director of the Company. Mr. Galipeau is Vice Chairman and CEO of Nuinsco Resources Limited and Victory Nickel Inc. Nuinsco owns 13.2% of Gold Hawk's shares outstanding, which it purchased through participation in the Company's July private placement. Mr. Galipeau has been a director of 14 public mining companies and two private companies and currently sits on the Boards of Nuinsco, Wallbridge Mining Company Ltd., Campbell Resources Inc. and Victory Nickel. During his career, Mr. Galipeau has worked for both large and small companies including gold and base metal mining companies and exploration companies in Canada and the United States. He has held the position of Chief Financial Officer of several mining companies, including nine years in that role at Breakwater Resources, and also has considerable experience in marketing, trading and corporate development. The Gold Hawk Board also appointed Mr. Galipeau to the Audit Committee.

Pursuant to the Company's 2007 stock option plan, and subject to regulatory approval, the Board of Directors has granted stock options to Mr. Galipeau. Options were granted to purchase 100,000 common shares in the capital stock of the Company exercisable for a period of five years at a price of $0.08 per share.

The Board also accepted the resignation of Director Mr. John D. Bracale at its meeting August 29. Mr. Bracale is a former officer of the Company's Peru subsidiary, Compania Minera San Juan (Peru) S.A., and was a key community liaison during the early stages of Gold Hawk's development. Gold Hawk wishes Mr. Bracale well in his future endeavors.

Employee incentive options

Gold Hawk advises that pursuant to the Company's 2007 stock option plan, and subject to regulatory approval, the Board of Directors has granted incentive stock options to two employees of its wholly owned Peru subsidiary, Compania Minera San Juan (Peru) S.A. Options were granted to purchase 60,000 common shares in the capital stock of the Company exercisable for a period of five years at a price of $0.08 per share. The share options vest one-third immediately upon the date of grant, one-third will vest 12 months from the date of grant and the final one-third of the options will vest 24 months from the date of grant.

Following regulatory approval of the Director and employee options, the Company will have 205,000 remaining options available for grant under the 2007 Stock Option Plan.

For complete details of the second quarter ended June 30, 2008, as well as the audited annual Financial Statements and Management's Discussion and Analysis please see the Company's filings on SEDAR (www.sedar.com).

About Gold Hawk Resources Inc.

Gold Hawk is a Canada-based precious and base metals producer with reserves and resources containing gold, silver, lead, zinc and copper. Since the acquisition of the wholly owned Coricancha mine in Peru in March 2006, the mine and concentrator were refurbished and commercial production status was achieved on October 1, 2007. The rated capacity of the processing facility is approximately 600 tonnes of ore per day.

Gold Hawk is based in Vancouver, Canada and trades on the TSX-V under the symbol CGK, and is operated by an experienced management team. Gold Hawk and its wholly owned subsidiary, Compania Minera San Juan (Peru) S.A. also have exploration properties in Peru and Canada (Quebec), and are actively pursuing other growth opportunities.

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the mining industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainties involved in the discovery and delineation of mineral deposits, resources; the uncertainty of resource estimates and the ability to economically exploit resources; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Gold Hawk to obtain all permits, consents or authorizations required for its operations and activities; and health and safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Gold Hawk to fund the capital and operating expenses necessary to achieve the business objectives of Gold Hawk, the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Gold Hawk. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Gold Hawk should not place undue reliance on these forward-looking statements.

Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this press release are made as of the date hereof and Gold Hawk undertakes no obligation to update publicly or revise any forward-looking statements contained in this press release or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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