BLR Blackhawk Resource Corp

CALGARY, ALBERTA--(Marketwired - May 27, 2014) - Blackhawk Resource Corp. ("Blackhawk" or the "Corporation") (TSX-VENTURE:BLR) is pleased to announce its financial results for the quarter ended March 31, 2014, and to provide and update on its investment strategy.

HIGHLIGHTS

• On March 3, 2014, Blackhawk received conditional approval to become an Investment Issuer
• In the three months ended March 31, 2014, Blackhawk had positive cash flow from operations of $103,000 and in the nine months ended March 31, 2014 it had positive cash flow of $228,000
• As at March 31, 2014, Blackhawk held cash and investments at fair value totalling $3,600,000
• As at March 31, 2014, net asset value per share ("NAV per share") was $0.14 (See "Use of Non-GAAP or Non-IFRS Financial Measures" below)

On February 18, 2014, Blackhawk announced it will be pursuing a change in business. After a thorough evaluation of the Corporation's existing resources and a review of strategic options for the Corporation generally, the Corporation determined that to optimize shareholder value, it would refocus its business operations from an "oil and gas issuer" to an "investment issuer". Blackhawk believes that its network of business contacts, the depth of experience of its management team and its overall entrepreneurial approach will enable it to identify and capitalize upon investment opportunities as an "investment issuer".

On March 3, 2014, Blackhawk received conditional approval of the proposed change of business; the Corporation's primary focus will be to seek returns through investments in the equity and debt instruments of other companies and other assets.

Since receiving conditional approval the Corporation has begun to both evaluate investment opportunities and has made a number of investments to date. The broad investment strategy of the Corporation relies on the expertise of the management and board, to source and evaluate investment opportunities that will provide above average returns. The goal of this strategy is to develop a portfolio of investments that will continue to provide positive cash flow, including equity, debt instruments and direct asset investments, in certain situations. The Corporation is not intending to be industry specific, but will review investment opportunities on the basis of the return and risk profile. In time Blackhawk hopes to be able to distribute a portion of these earnings back to its shareholders through a sustainable dividend.

OVERALL PERFORMACE

Blackhawk intends to invest in each of equity, debt instruments and direct asset investments as part of its focus as an investment issuer. Since receiving conditional approval the Corporation has begun to invest its capital under this mandate.

As at March 31, 2014 Blackhawk has made four investments: one equity position, two loan positions and its direct investment in the oil and gas operations. The investments are in varied industries, including construction, industrial real estate, and oil and gas.

The Corporation earned total income of $314,280 for the three month period ended March 31, 2014 compared with $165,261 for the three month period ended March 31, 2013. Net cash earned in operating activities before non-cash operating working capital items was $103,257 (0.01 per share) for the three month period ended March 31, 2014.

Since March 31, 2014, the Corporation has expanded its investments, to the extent that it now has allocated more than $2,300,000, of its approximately $3,600,000 of investable capital, to active investments. The investments have shown positive returns to date and all returns have been added to the investable capital.

CURRENT INVESTMENTS

As at April 30, 2014, the Corporation held investments at fair value totaling $1,533,000 as compared to $550,000 as at March 31, 2014. The Corporation continues to look for opportunistic investments with potential growth. The investments have been in a number of sectors as seen in the table below.

As at April 30, 2014, NAV per share was $0.15 as compared to $0.14 at March 31, 2014.

Since receipt of conditional approval to become an investment issuer Blackhawk has earned net cash from operation in excess of $150,000, based on investable capital of $3,600,000. The Corporation's strategy is focused on investing in multiple companies across a variety of sectors across North America. Blackhawk strives to continue to increase its investable capital and its growth by investing in equity and debt instruments of companies and generating positive returns for shareholders.

Additional information is available on our website at www.blackhawkcorp.ca, included there is an updated corporate presentation.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NON-GAAP OR NON IFRS FINANCIAL MEASURES

This press release includes references to "net asset value per share ("NAV per share")," a financial measure, that does not have a standardized meaning prescribed by generally accepted accounting principles (GAAP) or International IFRS. NAV per share is calculated as the value of total assets less the value of total liabilities divided by the total number of common shares outstanding as at a specific date. Investors are cautioned that this non-GAAP measure should not be construed as an alternative to the measurement calculated in accordance with IFRS as, given its non-standardized meaning; it is unlikely to be comparable to similar measures presented by other issuers.

Forward-Looking Statements

This news release contains forward-looking statements as defined under applicable securities laws. Statements other than statements of historical fact contained in this news release may be forward-looking statements under applicable securities legislation, including, without limitation, management's expectations. Many of these statements can be identified by looking for words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof. To the extent any forward-looking statements herein constitute a financial outlook, including, without limitation, the estimated effect on the Corporation's revenues, they were approved by management as of the date hereof and have been included to assist readers in understanding management's current expectations regarding the Corporation's financial performance and are subject to the same risks and assumptions disclosed herein. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur.

Statements containing forward-looking information by their nature involve numerous assumptions and significant known and unknown facts and uncertainties of both a general and a specific nature.

The forward-looking statements contained herein are subject to numerous known and unknown risks that may cause actual results to vary from those set forth in the forward-looking statements, including, but not limited to risks associated with: general economic conditions and changes in the financial markets; risks associated with investment Corporation businesses; a material change in the operations of an investment Corporation or the industries in which they operate; and key assumptions.

As forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assurances of future performance. Accordingly, readers are cautioned not to place undue reliance on any forward-looking information contained in this news release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. Statements containing forward-looking information reflect management's current beliefs and assumptions based on information in its possession on the date of this news release. Although management believes that the assumptions reflected in the forward-looking statements contained herein are reasonable, there can be no assurance that such expectations will prove to be correct.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release and the Corporation does not undertake or assume any obligation to update or revise such statements to reflect new events or circumstances except as expressly required by applicable securities legislation.

Blackhawk Resource Corp.Dave AntonyCEO(403) 531-1710dantony@blackhawkcorp.cawww.blackhawkcorp.ca

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