HAWKEYE Enters Into Agreement to Purchase the Bonanza Property

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 18, 2017) - HAWKEYE Gold & Diamond Inc. (the "Company" or "HAWKEYE") (TSX VENTURE:HGO)(FRANKFURT:HGT)(ISIN:CA42016R3027)(WKN:A12A61) is pleased to announce that it has signed a Purchase Agreement (the "PA") to buy the Bonanza Property, located on the northern end of Vancouver Island, British Columbia, Canada. The 123.8-hectare Bonanza Property is located approximately 110 kilometres northwest of Campbell River and 69 kilometres southeast of Port Hardy. The Property encompasses the historical Bonanza Pit copper, gold, silver, zinc and magnetite skarn prospect, which has been subject to intermittent exploration over the years since its discovery in 1959.

The Property contains occurrences of high-grade copper mineralization within garnet and magnetite skarn lenses. One of these occurrences was open-pit mined in 1967 and is known as the Bonanza Pit (designated as Zone A), having produced 2,163 tonnes of ore, averaging 5.48% copper and 14.0 g/t silver. Mineralization associated with the Bonanza Pit has been observed to occur intermittently over 2.5 kilometres along a northwest-striking hornblende quartz diorite contact, in five general zones, designated as Zone A through Zone D, and the TH Zone. ⁽¹⁾

The Company has acquired the Property not only for its potential for copper, gold, silver and zinc skarn and porphyry mineralization, but also the potential for production of magnetite on the Property as a means of generating cash flow. Historically-estimated tonnages of up to "29,900 tonnes of 4.0% Cu and 10,000 tonnes of magnetite concentrate" ⁽²⁾ reported on the Property in a 1961 report by Falconbridge will be further investigated as the primary target for the material. *

* Cautionary statement:

A qualified person has not done sufficient work to classify any of the mineralized zones on the Bonanza Property in the historical estimate as current mineral resources or mineral reserves. The issuer is not treating any of the historical estimates on the Property as current mineral resources or mineral reserve.

Magnetite is used to increase the density of regular concrete in the production of "heavy concrete". This material commonly sees use as a weight coating for petroleum pipelines and for mitigation of radiation in nuclear and x-ray facilities. It is also an essential part of the "heavy media" process in coal refining, in which heavy impurities are removed with the aid of pulverized magnetite in a slurry. It is also used in water filtration and the production of various chemicals and metal paints. The Company primarily intends to target these concrete and coal markets.