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TORONTO, ONTARIO--(Marketwire - May 12, 2010) - Lynda Bloom, President and CEO of Halo Resources Ltd. ("Halo", the "Company") (TSX VENTURE:HLO)(FRANKFURT:HRL) is pleased to announce that Hudson Bay Mining and Smelting Co., Limited ("HudBay"), a subsidiary of HudBay Minerals Inc. (TSX:HBM) has exercised its back-in option for the mineral lease that hosts the Jungle deposit.

The back-in option requires HudBay to expend CDN $2.025 million prior to May 7, 2012 to earn a 51% interest. Upon earning the interest, Halo and HudBay will form a 49:51 joint venture and share all future exploration and other expenditures proportionate to their interests. If HudBay does not incur the full expenditures, Halo will hold a 100% interest subject to a 2% NSR held by HudBay.

The Jungle deposit is one of four deposits in the Sherridon VMS district where Halo has completed sufficient drilling to be included in its 2008 NI43-101 resource estimate. Halo and HudBay signed a separate option agreement on December 22, 2009 that allows HudBay to earn up to a 67.5% joint venture interest in a 1.1 sq. km. area that hosts the Cold and Lost mineralization.

HudBay did not elect to exercise its back-in option for a group of claims scattered across the Sherridon VMS district, known as the FUD claims. Halo now holds a 100% interest in the FUD claims subject to a 2% NSR held by HudBay.

"We are thrilled to have HudBay exercise its back-in option and advance the Jungle project," says Lynda Bloom, President and CEO. "It is also advantageous for Halo to have consolidated the Sherridon VMS district so that the exploration potential can be evaluated systematically. It is an exciting time for the Company and its shareholders with many projects advancing concurrently."

Background

The 2008 NI43-101 compliant technical report included 1,325,000 tonnes in the Indicated resource category with an overall grade of 1.17% copper, 0.85% zinc and precious metal credits and 2,177,000 tonnes in the Inferred resource category with an overall grade of 1.10% copper, 0.67% zinc and precious metal credits for the Jungle deposit. Metal prices of US $2.00/lb copper, US $0.75/lb zinc, US $600/ounce gold and US $8.50/ounce silver were used to determine cut-off NSR values.

The Jungle massive sulphide lens has been followed from surface to 400 m from surface at a dip of approximately 40 degrees. The Jungle deposit is located 5 km northeast of the Cold and Lost mineralized trend.

The above information has been prepared under the supervision of Lynda Bloom, P.Geo., who is designated as a "Qualified Person" with the ability and authority to verify the authenticity and validity of the data.

ON BEHALF OF THE BOARD OF DIRECTORS

Marc Cernovitch, Chairman

About Halo Resources Ltd.

Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. The Company's focus is the 200 sq. km. Sherridon VMS Property, a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities. A 2008 NI43-101 compliant copper-zinc resource, for four of the known deposits in the district, was completed in less than 18 months. The Company has a joint venture interest in the Duport Property, an advanced gold property near Kenora, Ontario and is the operator for several contiguous joint venture properties in West Red Lake covering 45 sq. km. The Company is operated by an experienced management team with a growth strategy to develop a diversified portfolio of advanced mining projects.

Forward Looking Statements

This Company Press Release may contain certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

Neither 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.