Redhawk Receives Major Permit From the State of Arizona for Underground Development of the Copper Creek Project

Tuesday, August 25th 2009

Redhawk Resources, Inc. announce its wholly owned subsidiary Redhawk Copper, Inc. received the Aquifer Protection Permit (APP) from the Arizona Department of Environmental Quality (ADEQ) for the proposed underground exploration and development of its wholly owned Copper Creek Project in Pinal County Arizona. The APP is the major permit required for commencement of activities to access, complete exploration, and develop for production the significant near surface copper and molybdenum breccia hosted NI 43-101 compliant resources and gain access to the deeper underlying porphyry style copper and molybdenum resources.

Copper Creek Permitting

The APP issued by ADEQ is the primary permit required to begin underground work at Copper Creek under Arizona State and Federal EPA regulations. Additional permits will be required before commencing development activities, however, most of these are state, county, and local and require much less time and expense to receive. Considerable ground work for the additional permits has already been completed. The APP was issued more than 18 months after the initial application and involved more than one year of ground water quality testing and monitoring, testing of rock chemistry, and detailed engineering prior to the application.

The APP allows for underground decline and drift access to four of the major breccia deposits with existing resources and continued decline development to reach the deeper porphyry style resources below and adjacent to the breccias. Current NI 43-101 compliant resources in the breccia deposits based on a Cu equivalent cutoff of 0.75% are a combined measured and indicated 7.341 million tons with a Cu equivalent grade of 1.66% and an inferred resource of 2.272 million tons with a Cu equivalent grade of 1.63%. Based on a Cu equivalent cutoff of 0.60% the porphyry resource estimate is an indicted 20.03 million tons with a Cu equivalent grade of 1.04% and an inferred resourced of 156.13 million tons with a Cu equivalent grade of 0.88%. The combined resources contain approximately 3.4B pounds of Cu equivalent.

Stephen Barley, Managing Director of Redhawk Resources, stated, “The receipt of the APP from the State of Arizona ADEQ is a major step forward in the development of the Copper Creek Project and is the culmination of many years of work on the property. It is another positive indication that there are no fatal flaws that will prevent Copper Creek from becoming an operating copper mine and also means the project is two years closer to production.”

The assessment above is preliminary in nature. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will be realized.