Homestake Resource Corporation Files Information Circular in Connection with Special Meeting of Shareholders to Consider Business Combination with Auryn Resources Inc.

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/28/16 -- Homestake Resource Corporation (TSX VENTURE: HSR)(FRANKFURT: B6IH), (the "Company" or "Homestake") is pleased to announce that it has filed its management information circular (the "Circular") and related proxy materials on SEDAR in advance of the Company's special meeting of shareholders to be held on August 25, 2016 (the "meeting") to seek approval of the proposed plan of arrangement (the "Arrangement") with Auryn Resources Inc. ("Auryn").

As previously announced on July 11, 2016, Homestake and Auryn have entered into a Definitive Arrangement Agreement (the "Arrangement") pursuant to which Auryn has agreed to acquire all of the issued and outstanding common shares of Homestake. The Arrangement is intended to create a leading Gold exploration and development company and consolidator. Homestake shareholders of record on July 21, 2016 will receive notice of and be entitled to vote at the special meeting, and are encouraged to read the Circular as it provides important information about Homestake, Auryn, and the Arrangement.

Benefits of the Arrangement include:

--  Immediate and significant premium to Homestake Shareholders;
--  Creation of a prominent Precious Metals /Gold exploration and
    development company;
--  Advanced portfolio of assets including the Homestake Ridge Project;
--   Auryn's Committee Bay Gold and Peru Projects;
--  Continued exploration potential and resource upside;
--   Aactively pursuing other quality mineral opportunities with the goal of
    establishing a robust project pipeline;
--  Strong balance sheet;
--   Increased liquidity;
--  Proven management team; and
--  Enhanced capital markets exposure and access to capital.

Homestake Special Meeting

The Homestake special meeting of shareholders is scheduled to be held at Suite 1100 - 1199 West Hastings Street, Vancouver, British Columbia, on August 25, 2016 at 10:00 AM (Pacific Daylight Time).

Your vote is important regardless of the number of securities you own. Homestake encourages shareholders to read the Circular and accompanying meeting materials in detail. A copy of the Circular is now available on Homestakes website at http://www.homestakeresource.com and is also available under Homestake's profile on SEDAR at www.sedar.com.

YOUR VOTE IS IMPORTANT. VOTE TODAY.

HOMESTAKE'S BOARD OF DIRECTORS RECOMMEND THAT SHAREHOLDERS VOTE IN FAVOUR OF THE ARRANGEMENT.

HOW TO VOTE

In the interest of time, shareholders are encouraged to vote via the internet, by telephone or fax.

Registered shareholders may vote as follows:

--  Internet: Vote online at www.investorvote.com, using the control number
    located on your proxy (which you will receive in the mail or via email)
--  Telephone: Call 1-866-732-VOTE (8683) toll free
--  Facsimile: 1-866-249-7775 (toll free in Canada and US)
--  By mail: Attention: Proxy Department, 8th Floor, 100 University Avenue,
    Toronto ON, M5J 2Y1
--  In person at the meeting

Beneficial shareholders (shareholders who hold Homestake shares through a bank, broker or other intermediary) will have different voting instructions provided to them and should follow the instructions found on their voting instruction form to vote online, by telephone or fax.

SECURITYHOLDER QUESTIONS

Shareholders who have questions regarding the Arrangement or require assistance with voting may contact the Proxy Solicitation Agent below:

Laurel Hill Advisory Group
Toll free at 1-877-452-7184
International [phone] outside Canada and the US
By email at: [e-mail]

Homestake Resource Corporation
By phone [phone]
By email at: [e-mail]

About Homestake Resource Corporation

Homestake owns a 100 percent interest in the Homestake Ridge project, located in the Kitsault Mineral district in northwestern British Columbia, subject to various royalty interests held by vendors. The project is being advanced as a potential high-grade underground mining operation. To date, 268 holes, totaling 77,845 metres, have been completed on the property by Homestake and multiple exploration targets remain to be tested on the 3,617-hectare property. For more information on the Homestake Ridge project please refer to the Homestakes website at www.homestakeresourecorporation.com

ON BEHALF OF THE BOARD OF DIRECTORS OF HOMESTAKE RESOURCE CORPORATION

Joseph A. Kizis, Jr., President & Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release contains forward-looking statements. All statements, other than statements of historical fact, constitute "forward-looking statements" and includes statement regarding the timing for completion of the grinding and flotation circuits, its effect on gold recovery, grade and average payable gold, as well as any other information that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including the Company's strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance.

Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. These statements, however, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed, implied by or projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include but are not limited to: risks related to the exploration and potential development of the Company's project, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, and other statements that express management's expectations or estimates of future performance.

There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.

Contacts:
Homestake Resource Corporation
[phone]
[phone] (FAX)
www.homestakeresource.com
[e-mail]