Homestake and Agnico Eagle Amend Homestake Ridge Agreement; Plan 2014 Exploration Program

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 12, 2013) - Homestake Resource Corporation (TSX VENTURE:HSR)(FRANKFURT:B6IH) ("Homestake" or "the Company") reported today that the Company and Agnico Eagle Mines Limited ("Agnico Eagle") have agreed to amend the September 2012 (see NR-04-12) option agreement for exploration and development of the Homestake Ridge property in northwestern British Columbia. The amendment reduces 2013 and 2014 expenditures by $3.0 million and adds an extra year to the initial option period, in which 2015 will have a required expenditure of $3.0 million. In effect, the option period is extended by one year, but with total required expenditures remaining the same; AEM can earn a 65% interest in the property after total expenditures of $25.3 million or completion of a feasibility document.

Agnico Eagle has notified the Company that 2013 expenditures are expected to be approximately $2.5 million. The 2013 program was successful in discovering a potential new mineral zone called the Slide target southeast of the Homestake Silver deposit, as reported in a recent Company news release (NR-10-13, November 25, 2013). Agnico Eagle has expressed its intention to drill offset holes to the southeast and down dip of hole HR13-253, which as reported in NR-10-13 contains a 18.6 metre interval averaging 101g/t silver, including a 0.5 metre interval averaging 1,675g/t silver from 364.4 to 383.0 metres down hole (the true thickness has not been determined yet). Drilling is anticipated to begin at the Slide target in late June, snow-conditions permitting, in order to allow receipt and interpretation of assays from these early holes to influence drilling plans later in the season. Also anticipated are additional surface work and drill testing of other targets that were developed or refined during the 2013 season.

About Homestake Resource Corporation

Homestake owns a 100 percent interest in the Homestake Ridge project, located in the Kitsault Mineral district in northwestern British Columbia, subject to various royalty interests held by vendors. The project is being advanced as a potential high-grade underground mining operation. At an $85 NSR cut-off value and based on drilling completed through 2012, the project contains an estimated NI 43-101 compliant Indicated Resource of 124,000oz gold and 939,000oz silver (141,000oz AuEq @ 7.3g/t AuEq grade) plus an Inferred Resource of 911,000oz gold and 20,366,000oz silver (1,225,785oz AuEq @ 5.6g/t AuEq grade) in three deposits (see Footnote 1 for assumptions, methods, and grade and tonnage distribution). Visit the Company website at www.homestakeresource.com to see how the Homestake Ridge resource estimate compares to gold deposits worldwide, as ranked by Natural Resource Holdings (June 2012).