Hedman Announces Further Critical Update.

TORONTO -- Hedman Resources Limited (TSX VENTURE:HDM) announced today that it is on target by calendar year end 2004 for the successful completion of the restructuring undertaken by the new management team in early 2004. The Board of Directors (BOD) has every confidence that the management team's revitalization objectives can be fulfilled by year's end, setting the stage for active business pursuits in 2005.

On September 30, 2004, the Alberta Securities Commission revoked its cease trade order. All cease trade orders have now been revoked. The BOD is working closely with Hedman's solicitors to conclude ongoing negotiations with the TSX Venture Exchange to therefore allow for reinstatement and resumption of free trading in the company's securities. It is hoped that this will be completed by month's end.

The BOD is pleased to announce the appointment of Simon Dann to the BOD. Mr. Dann brings a wealth of business, marketing, consulting and quasi-judicial experience. Mr. Dann was an integral member of the transition team in 2004. His valuable roles in exposing the failed initiatives in Firefelt and Northfil and in overseeing the research and testing that ultimately lead to the Co-Operative Research and Development Agreement with the United States Department of Energy's Albany Research Center re: fiberization, are greatly acknowledged by Mr. Danziger and Mr. Edell of the BOD.

Hedman has also retained Strathcona Mineral Services Limited (Strathcona) to undertake a preliminary overview of its inactive mining claims/leases in and around Matheson, Ontario. During the investigations undertaken by the new management team in early 2004, archived records were located suggesting the indicatory presence of gold and other precious and base metal deposits.

In the early 1980s, there were noteworthy discoveries at the nearby Placer Gold property at Fade Lake and the Townships of Garrison, Michaud and McCool and ongoing mining activities in the adjacent Hemlo region, all proximate to Hedman's claims/leases.

In July of 1985, the Ontario Securities Commission enquired about Hedman's interest in possible gold finds and joint venture discussions for exploration on its properties.

In 1986, the company retained a prominent senior geologist, Dr. Joe Fox, and the resulting early staking and line cutting for these land-based geophysicals proved promising. Of note, the geophysics defined the positions of thirteen conducive targets on the North Branch of the Destor-Porcupine Fault tectonic zone extending through the Hedman claim block.

In 1987, Airborne Electromagnetic Maps released by the Ontario Ministry of Natural Resources revealed these anomalies and confirmed that there could be value in carrying out pointed investigations of gold, platinum, silver and base metals. Geologist Gordon N. Henriksen of H. Ferderber Geophysics Ltd. noted the implication for "a potentially good environment for gold/base metal mineralization."

The Hedman claims/leases were identified as being "located in an area that mining analysts are describing as the hottest gold exploration area near Matheson, Ontario."

In addition, the potential for platinum, silver, nickel and cobalt were referenced and the physical presence of garnet has been identified in Hedman's other mining operations.

By 1988, initial geophysical land and airborne surveys successfully outlined at least three cross structures favourable for gold deposition. The magnetic surveys suggested to Exsics Exploration geophysicist, J. Grant, a greatly added potential from at least two proven gold occurrences "requiring high priority in the program."

As Dr. Fox reported, "these lithologies and structures are inferred to be equivalent to those hosting much of the gold mineralization in the vicinity of Timmins and Kirkland Lake. Many of the gold felsic volcanic-sediment sequences such as the Hemlo and Bousquet-Doyon major gold deposits, like the Hunter Mine Group on the Hedman property, are associated with major faults."

Ontario Geological Surveys of sonic overburden drill results suggested significant gold mineralization under the glacial till cover on Hedman ground. Thirteen sonic holes were drilled and an unusually large number yielded anomalous gold contents of identifiable and measurable grains.

However, the increasing financial pressures related to the loss of Hedmanite sales, the escalation of asbestos lawsuits and changes to the Mining Act and the consequent effect on junior exploration companies and their financing opportunities curtailed Hedman's ongoing efforts to secure the necessary financing and joint venture participation to continue with the exploration program.

Ten years of varying attempts at defining and pursuing a precious and base metals diversification program then appear to have been abandoned by about 1993, when J. Magnan was replaced by Claude Taillefer as President and CEO.

The status of many of the claims/leases controlled by Hedman pre-1993 must first be determined and then projected against the historical activities of known mining operations in the surrounding areas. The company has therefore determined the necessity of retaining Strathcona to update the BOD on what could be realized in this exciting potential.

It is expected that Strathcona will report to Hedman's BOD in early 2005 on its preliminary findings and expert recommendations. If warranted, Hedman will then look to expand Strathcona's scope of work and commission an in depth and on site investigation that may include comprehensive drilling and assay programs in the spring/summer of 2005.

The BOD also announced that the United States Department of Energy's Albany Research Center has now advised that its final report on Tier 1 fiberization research and testing will be sent out this month. This report is anxiously anticipated and details on the results, together with projected future recommendations and developments, will be announced shortly after the receipt and consideration of this important report.

The BOD recently negotiated a further loan of $200,000 from its secured creditor to further operations and ongoing research and development. Significant news regarding further interim financing and, ultimately, global refinancing objectives should be released shortly and will be tied to defined budgets now being established to advance all major business initiatives through 2005.

The BOD is confident that the extensive restructuring and revitalization program of 2004 is concluding in a timely and highly productive manner and there is every expectation that free trading will resume shortly and plans are being set for an AGM to be held in January of 2005.

This document may contain certain forward-looking information and statements concerning the company's operations, performance, and financial condition, including, in particular, the likelihood of the company's success in developing and expanding its business and obtaining significant contracts. These statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Errors and omissions excepted.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Hedman Resources Ltd. (TSX VENTURE:HDM)