Consolidated Gold Hawk Resources Inc. - Announcement.

MONTREAL--(BUSINESS WIRE)--June 4, 1997--(Alberta Stock Exchange CGK.) Consolidated Gold Hawk Resources Inc. is pleased to announce that initial limited geological and geophysical surveys conducted at its fully owned Machacala silver-gold property located some 40 km east of the coastal city of Trujillo in Northern Peru, have returned more than encouraging results and do indicate open pit and underground possibilities. No less than 200,000 tonnes of 340 gr of silver, 6 gr of gold and 0.3 percent Cu. were mined there between 1979 and 1991 and from three out of the twelve near parallel veins known to exist on the property. The veins are 1.5 to 6.0 meters wide and can be followed over lengths of several hundred meters. One of them, the San Viviano is more than 2.0 km in length. All developments were made at shallow depths by way of adits. Copper values have a tendency to increase with depth. The property has never been drill tested before nor covered by modern exploration techniques.

Not only were the presence of the more than 12 mineralized veins confirmed by prospection and the I.P. survey but several 100 to 200 meter wide gold bearing stockworks, more than 300 meters in length have been identified so far, all of them related to major vein systems. The I.P. survey has also indicated presence of two major anomalies, one of them coinciding with a 1.2 km long by a 300 meter wide rusty and highly altered zone of volcanic agglomerate located in the north-eastern part of the property. The other anomaly, 100 to 150 meters in width is located in the central part of the property and has a minimum length of 500 meters and still open to the S.E. It also has a magnetic expression. This anomaly is not related so far to any known vein system.

The high degree of alteration and lixiviation are such that surface channel sampling results are giving only an indication of the presence of gold. Silver values have been virtually wiped out. Even with this situation all of the surface channel samples taken so far were anomalous with gold content ranging from .015 to 2.5 gr/tonne over widths of up to 80 meters.

The Machacala silver-gold property is emerging as having a very good open pit and underground mining potential. More emphasis is to be put in completing its geological and geophysical coverage as well as experimenting to determine the most suitable and representative sampling methods. A step by step evaluation is to be done on a progressive basis.

The company also announces that the net loss for the period ended March 31st, 1997 was $59,335 or 0.001$ per share. This compares with a loss of $7,885 or $0.001 per share for the same period last year. Current assets were at $706,734 against current liabilities of $158,282. The cash situation at the end of the period was $686,907.

CONTACT: Consolidated Gold Hawk Resources Inc.

Mackenzie I. Watson, 514/878-3551

514/878-4427 (FAX)