Homestake Announces AG&SM Results and Approval of Arrangement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 26, 2016) - Homestake Resource Corporation (TSX VENTURE:HSR)(FRANKFURT:B6IH), (the "Company" or "Homestake") today announced that at the annual general and special meeting of shareholders held on August 25, 2016 (the "AG&SM"), 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% 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 warrant holders of Homestake will exchange their shares for shares and warrants of Auryn Resources Inc. on the ratio of 17:1, incumbent directors and officers of Homestake will resign their respective positions and Homestake will become a wholly owned subsidiary of Auryn Resources Inc. and will delist its shares from the TSX-V Exchange. It is expected that this process will complete in September 2016.

A total of 27,149,419 common shares were represented at the AG&SM, representing 39.05% 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 AG&SM.

Smythe LLP, Chartered Professional Accountants were re-appointed as auditors of the Company for the ensuing year and shareholders approved the Company's 2016 10% 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 A. Kizis, Jr., Lawrence Page, Q. C., Stephen Beardslee, Declan J. Costelloe and Jeffery Tindale. Following the AG&SM, the board of directors re-appointed Joseph A. Kizis, Jr. as President, Lawrence Page, Q.C. as Chairman and Corporate Secretary, Graham Thatcher as Chief Financial Officer and Robert MacDonald as VP Exploration.