Homestake Resource Corporation Files Information Circular in Connection with Special Meeting of Shareholders to Consider Business Combination with Auryn Resources Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 28, 2016) - Homestake Resource Corporation (TSX VENTURE:HSR)(FRANKFURT:B6IH), (the "Company" or "Homestake") is pleased to announce that it has filed its management information circular (the "Circular") and related proxy materials on SEDAR in advance of the Company's special meeting of shareholders to be held on August 25, 2016 (the "meeting") to seek approval of the proposed plan of arrangement (the "Arrangement") with Auryn Resources Inc. ("Auryn").

As previously announced on July 11, 2016, Homestake and Auryn have entered into a Definitive Arrangement Agreement (the "Arrangement") pursuant to which Auryn has agreed to acquire all of the issued and outstanding common shares of Homestake. The Arrangement is intended to create a leading Gold exploration and development company and consolidator. Homestake shareholders of record on July 21, 2016 will receive notice of and be entitled to vote at the special meeting, and are encouraged to read the Circular as it provides important information about Homestake, Auryn, and the Arrangement.

Benefits of the Arrangement include:

• Immediate and significant premium to Homestake Shareholders;
• Creation of a prominent Precious Metals /Gold exploration and development company;
• Advanced portfolio of assets including the Homestake Ridge Project;
• Auryn's Committee Bay Gold and Peru Projects;
• Continued exploration potential and resource upside;
• Aactively pursuing other quality mineral opportunities with the goal of establishing a robust project pipeline;
• Strong balance sheet;
• Increased liquidity;
• Proven management team; and
• Enhanced capital markets exposure and access to capital.

Homestake Special Meeting

The Homestake special meeting of shareholders is scheduled to be held at Suite 1100 - 1199 West Hastings Street, Vancouver, British Columbia, on August 25, 2016 at 10:00 AM (Pacific Daylight Time).

Your vote is important regardless of the number of securities you own. Homestake encourages shareholders to read the Circular and accompanying meeting materials in detail. A copy of the Circular is now available on Homestakes website at http://www.homestakeresource.com and is also available under Homestake's profile on SEDAR at www.sedar.com.

YOUR VOTE IS IMPORTANT. VOTE TODAY.

HOMESTAKE'S BOARD OF DIRECTORS RECOMMEND THAT SHAREHOLDERS VOTE IN FAVOUR OF THE ARRANGEMENT.

HOW TO VOTE