Monday, January 07, 2008
Hawthorne Completes 2007 Frasergold Exploration Season

Hawthorne Gold Corp. ("Hawthorne") (TSX-V: HGC) and Eureka Resources Inc. ("Eureka") (TSX-V: EUK) are pleased to announce the completion of the 2007 exploration program on the Frasergold Property in central British Columbia, Canada.

"2007 was a successful year for Hawthorne Gold and Eureka in developing the Frasergold property. Since Hawthorne completed its listing on the TSX Venture Exchange on April 25, 2007, we have assembled an experienced team of mining professionals that have worked diligently to advance the company and develop our gold projects in British Columbia," stated Richard Barclay, President and CEO of Hawthorne, "We look forward to another productive year in 2008 as we take the necessary steps towards future gold production."

Hawthorne has completed 16 HQ diamond drill holes for a total of 3,617 meters, which included 10 due diligence holes and 6 in-fill holes. In-fill drilling and exploration programs are planned to continue in 2008. All logged core samples, in one-meter segments, were split using a diamond saw and sent to International Plasma Labs (IPL) for analysis. The volume of samples and screened metallic assay procedures have slowed down expected turnaround time at the laboratory. Due to a significant backlog of assays within the assay lab, it is estimated it will take approximately another six to eight weeks for all samples to be processed and available for review. Partial results are being received as analysis is completed.

A total of 350 meters of bedrock surface trenching was sampled using a diamond saw to cut the channels. The existing 298 meters of underground workings were rehabilitated with roof bolting and a ventilation system in preparation for further sampling, geological mapping and bulk sampling. Underground confirmation sampling consisted of 211 one-meter vertical channel samples cut with a diamond saw. In addition, a series of eleven 200 kilogram bulk samples were taken throughout the underground workings. The bulk samples were shipped separately to Process Research Associates (PRA) laboratory to begin metallurgical testing and mill flowsheet design.

The Frasergold mineralization appears to fit the orogenic lode-gold deposit type; gold tends to occur in quartz veins with coarse particulate gold occurring in segregations of stringers, veins, boudins and mullions. Pervasive low grade gold mineralization is also found within the knotted phyllite strata where quartz is absent. Historic exploration work has outlined a 10 kilometer long mineralized zone that remains open along strike and down dip.

During the 2007 exploration season, an aerial survey covering approximately 12,000 hectares was conducted by Eagle Mapping. A full set of orthophotos and updated topographic contour maps were produced. At the Frasergold Property, a new 32-person exploration camp and geological core logging facility was constructed.

In addition, an airborne geophysical survey was completed by Aeroquest International Limited. The survey covered the entire area between the Frasergold Property and Crooked Lake; encompassing the Eureka Frasergold claims, the optioned Dajin Resources Corp. claims and claims acquired or optioned in 2007. The geophysical data sets are currently being evaluated to develop a property-wide interpretation to assist in planning of the 2008 exploration program. The geophysical survey displayed a linear conductor coincident with the Frasergold mineralized zone that extends laterally beyond the extent of the known mineralized zone.

Historical assessment data had previously outlined a potential copper porphyry system on the Frasergold Property and adjacent optioned claims. The location of this porphyry system also appears to be confirmed with the airborne geophysical magnetic (Mag) and electromagnetic (EM) surveys. Furthermore, the EM data revealed several strong conductive anomalies in and around the kilometer scale magnetic anomaly. The magnetic body is thought to be related to the historically reported porphyritic intrusion, with the EM conductors appearing to be associated with surface mineralization previously reported in area assessment reports. The airborne geophysical survey will be further evaluated in 2008 together with the compilation of all historic geological reports.

In the fall of 2007, positive discussions were initiated with the Williams Lake Indian Band regarding the Frasergold Project. A comprehensive environmental program was initiated, including baseline studies required for submission of the Environmental Assessment Certificate application.

Jim Sparling, P.Geo., a Qualified Person as defined by National Instrument 43-101, has approved the technical content of this news release.

About the Frasergold Option Agreement

Pursuant to an option agreement dated October 31, 2006 between Hawthorne and Eureka, Hawthorne can earn a 51% interest in the Frasergold property by completing exploration expenditures totalling $3.5 million, completing a feasibility study by April 30, 2010 and making cash payments totalling $175,000 before October 31, 2009. Hawthorne can earn a further 9% (for a total of 60%) by arranging financing for 70% of the estimated capital costs for production.

About Eureka Resources Inc.

Since its incorporation in 1981, Vancouver-based Eureka Resources, Inc. has focused on the exploration and development of natural resource properties in order to create wealth for investors. Moreover, with renowned British Columbia entrepreneur John J. O'Neill at the helm, Eureka has long been a steady and trustworthy presence on the British Columbia mineral-exploration scene. In addition to Eureka's fostering of the Frasergold claim, the company holds the rights to the promising Lottie Lake copper claim, which is also in central British Columbia. Shares in Eureka Resources trade on the Venture Exchange of the respected Toronto Stock Exchange.

About Hawthorne Gold Corp.

Hawthorne Gold Corp. is a Canadian-based gold exploration and development company with key properties located in British Columbia, Canada. Hawthorne Gold is managed by well-respected mining leaders Richard Barclay and Michael Beley. Together with mining veteran Michael Redfearn and a strong board of directors from across the mining industry, the goal is to become another successful gold mining company through continued development and exploration of the Frasergold deposit, the Taurus deposit and the Table Mountain deposit through the announced merger with Cusac Gold Mines Ltd. (TSX-V: CQC; OTC-BB: CUSIF).

For more information on Hawthorne, contact Robert Ferguson at (604) 629-1505 or toll free at 1-888-629-1505 or Todd Hanas toll free at 1-866-869-8072, or you can visit Hawthorne's website at www.hawthornegold.com. For more information on Eureka, contact John J. O'Neill at (604) 608-6154.

ON BEHALF OF
HAWTHORNE GOLD CORP.

"Richard J. Barclay"
President & CEO


ON BEHALF OF
EUREKA RESOURCES INC.

"John J. O'Neill"
President & CEO

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.