Blackhawk Announces Financial Results, Change in Auditor and Closing of Private Placement - Seite 2

Currently the Corporation holds short term loans of approximately $1,740,900 that average a return of 18%, and with the recently completed financing the Corporation intends to increase its debt portfolio to greater than $2,000,000 and expects to maintain an average return of 20%.

The Corporation will continue to review opportunities in both debt and equity investments to ensure that it can maintain the returns realized in the current period.

PRIVATE PLACEMENT

Blackhawk is pleased to announce that it has closed the previously announced private placement. The placement was oversubscribed and the Corporation is pleased to report that it raised gross proceeds of $1,141,000 through the issuance of 19,016,668 common shares. The Corporation now has 41,196,374 common shares outstanding. The common shares issued pursuant to the private placement are subject to a four month hold period that expires on September 27, 2015. Finders acting in connection with the private placement received fees totaling $34,230.

With the completion of the placement, Blackhawk is committing to pay a dividend at an initial annual rate of 7 per cent, subject to all applicable regulatory approvals, including the acceptance of the TSX Venture Exchange. It is expected that the first dividend payment will be made in July, 2015, and the corporation will issue a press release setting forth the record date and the amount payable per common share at such time.

Directors and officers of the Corporation acquired an aggregate of 466,667 common shares issued under the private placement. The Corporation has determined that exemptions from the various requirements of the TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 are available for the issuance of the Common Shares (Formal Valuation - Issuer Not Listed on Specified Markets; Minority Approval - Fair Market Value Not More than 25% of market Capitalization).

CHANGE OF AUDITOR

In addition, the Corporation announces that Grant Thornton LLP has resigned, at the request of the company, as auditor of the Corporation, effective May 25, 2015.

The audit committee and the board of directors have appointed MNP LLP of Calgary, Alberta, as auditor for the company, effective May 25, 2015, until the close of the next annual general meeting of the company.