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October 30, 2014 --- Vol. 08, No. 44October 2014

Northwest Territories

DIAMONDS – Kennady Diamonds Inc. Oct. 30 provided an update on the 2014 fall drill program at the company’s Kennady North diamond project in Northwest Territories. “The Kelvin drill program continues to delivered excellent results. Exploration and delineation drilling has increased the strike of the Kelvin kimberlite pipe to over 600 meters and the volume continues to increase on strike to the north,” said Kennady Diamonds CEO Patrick Evans. “Despite good progress, unfavorable weather conditions, principally dense fog, limited our ability to safely service the drill rigs by helicopter. Accordingly, the fall drill program was stopped temporarily this week while construction of the nearby Kelvin camp is completed. The Kelvin camp is expected to be commissioned by mid-November, following which drilling will recommence.” The second of three northerly “fan” delineation drill holes (KDI-14-033b), which was drilled from the same collar and at the same azimuth as KDI-14-033a, but at an inclination of -80 degrees, appears to have drilled over the top of the Kelvin pipe intersecting a narrow seam of kimberlite at depth. Preliminary analysis of available exploration data indicates that the Kelvin pipe may be turning from north to northeast in the direction of the Faraday kimberlite, which is about 1,000 meters to the northeast. Exploration data will continue to be analyzed to ensure optimal positioning of the next “fan” delineation hole when drilling recommences in November. “We are very pleased with the wide intercepts at the Kelvin dyke/sheet holes drilled to the south of the Kelvin pipe,” said Evans. “The Kelvin dyke/sheet structure strikes southwest from the Kelvin pipe over a distance of about one kilometer and dips gently to the northwest. Drilling to date indicates good continuity and the potential for substantial kimberlite tonnage.” To date, about 16,600 meters has been drilled at the Kelvin kimberlite as part of the 2014 summer-fall drill program. Based on the continuing success, the company’s target has now been increased to 18,000 meters. In addition, roughly 28.7 metric tons of kimberlite has been recovered from Kelvin and the company has now increased its target to 30 metric tons. Kennady North also announced that approximately 5 metric tons of kimberlite from Kelvin has been sent to the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council for processing by caustic fusion. In addition, preparations are underway for a further 24 metric tons of Kelvin kimberlite to be sent to the SRC by the end of November for processing at the dense media separation plant. The diamond recovery results from these samples are expected by the end of the year.

GOLD – Nighthawk Gold Corp. Oct. 27 reported drill results from 15 holes recently completed on its Indin Lake gold property in Northwest Territories. This program was designed to grow the previously reported inferred resource estimate at the Goldcrest and Colomac Main gold deposits and to initiate drilling at the Cass gold deposit for the first time. The Cass deposit lies 20 kilometers (12.4 miles) to the southwest of the Colomac gold deposit. The 2014 program concluded successfully with the drilling of 13,647 total meters and the identification of several new expansion opportunities. At Cass, multiple intersections document significant near-surface mineralization and continuity of the mineralized zone to the west; hole CM14-02 intersected 51.00 meters of 2.25 grams per metric ton gold, including 9.00 meters of 4.72 g/t gold, hole CM14-04 intersected 4.40 meters of 38.90 g/t gold, and hole CM14-06B intersected 22.00 meters of 4.24 g/t gold. Other highlights of the program include: Mineralization extended more than 100 meters to the west at Cass; hole CM14-02 intersected 51.00 meters of 2.25 g/t gold, including 9.00 meters of 4.72 g/t gold; hole CM14-04, intersected 4.40 meters of 38.90 g/t gold; hole CM14-06, intersected 26.00 meters of 2.86 g/t gold, including 13.00 meters of 4.17 g/t gold and including 4.50 meters of 9.64 g/t gold, and 5.00 meters of 8.19 g/t gold; and hole CM14-06B, intersected 36.20 meters of 2.89 g/t gold, including 22.00 meters of 4.24 g/t gold and including 5.00 meters of 7.90 g/t gold. Nighthawk’s latest drilling at Goldcrest produced its first documented higher grade shoots as defined by previously reported holes G14-04, 04B, 05 and 05B (Sept 25 news release). Those holes intersected the projected southern extension of the mineralized zone and returned high-grade values over long core lengths, confirming that the mineralization remains open and represents a primary candidate for resource expansion. Holes G14-06, 06B, 07, 07B, and 08 were 50-meter step outs from G14-05, collectively covering a 150-meter section of the 2.5-kilometer-long intrusion. With the exception of G14-07B, all holes intersected mineralization and tested the northern flank of the plunging high-grade zone defined by previously drilled holes G14-04 and 05. Hole G14-08, the northern most hole reported herein, shows significant increases in intersection lengths and gold grades, possibly indicating the existence of another high-grade shoot. Results are pending for subsequent holes that were drilled to test this prospect. Preliminary geochemical analyses suggests that Goldcrest is a differentiated igneous intrusion, presumably co-magmatic with and identical to the Colomac sill. Both sills intruded a host mafic volcanic sequence and were subsequently folded with tops facing east. Better gold mineralization is preferentially localized within the more sodic and silica-rich upper portions of the sills. Because of the limited historical drilling at Goldcrest in comparison with Colomac Main, substantial opportunities for resource expansion exist. Given the success of this first drill program, Nighthawk remains focused on pursuing additional opportunities at Goldcrest as higher grade mineralization remains open to depth and along strike. Nighthawk President and CEO David Wiley commented, “The drilling at Cass has demonstrated substantial mineralized intersections with a favorable proximity to surface; adding to the significance is that these results were produced from a step-out of over 100 meters to the west of previous drilling. We also report additional results from Goldcrest and Colomac that continue to demonstrate broad zones of mineralization. We have now reported 8,068 meters of drilling from our 2014 program, and we expect to release additional results from the remaining 5,579 meters in the coming weeks.”


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