VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2010) - Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX VENTURE:HGC) announces that it has given notice to Eureka Resources Inc. ("Eureka") to terminate Hawthorne's option to acquire up to a 51% interest in 18 mineral claims (the "Eureka Claims") located in central British Columbia pursuant to a property option agreement with Eureka dated October 31, 2006 (the "Eureka Option").

The Eureka Option is subject to a two kilometer area of interest (the "Area of Interest") and certain additional mineral claims that Hawthorne acquired or has the option to acquire, as the case may be, fall within the Area of Interest. Specifically, Hawthorne acquired four mineral claims covering approximately 197 hectares pursuant to an agreement with Lloyd Addie in September 2007 (the "Addie Claims"). Hawthorne entered into an option agreement (the "Dajin Option Agreement") with Dajin Resources Corp. ("Dajin") in May of 2007, as subsequently amended, and a further option agreement (the "Bourdon Option Agreement") with Robert Bourdon ("Bourdon") also in May of 2007. Pursuant to the terms of the Dajin Option Agreement, Hawthorne has the option to acquire a 70% interest in eighteen mineral claims covering 7,930 hectares (the "Dajin Claims") and pursuant to the terms of the Bourdon option agreement, Hawthorne has the option to acquire a 100% interest in one mineral claim covering approximately 296 hectares (the "Bourdon Claim"). Each of the Addie Claims, the Dajin Claims and the Bourdon Claim fall within the Area of Interest and Eureka has elected to have the Addie Claims transferred to Eureka subject to a 2% Net Smelter Returns Royalty. Eureka has further elected to have the option to acquire the Dajin Claims and the Bourdon Claim to be transferred from Hawthorne to Eureka pursuant to the terms of the Dajin Option Agreement and the Bourdon Option Agreement respectively. In order to exercise the Bourdon Option Agreement and to acquire the Bourdon Claim, Eureka must pay Bourdon a payment of $50,000 and issue Bourdon 25,000 common shares on or before May 31, 2010. The Bourdon Claim is subject to a 2% Net Smelter Returns Royalty and the transfer of the Bourdon Option Agreement from Hawthorne to Eureka is subject to Eureka entering into a transfer agreement with Bourdon. In order to exercise the Dajin Option Agreement and to acquire the Dajin Claims, Eureka must incur a further $200,000 in property expenditures on the Dajin Claims on or before November 30, 2011. The Dajin Claims are subject to a 2% Net Smelter Returns Royalty and the transfer of the Dajin Claims from Hawthorne to Eureka is subject to Eureka entering into a transfer agreement with Dajin.

Pursuant to the terms of the Eureka Option, the Company is required to keep the Eureka Claims in good standing for three years from the date of termination and Hawthorne has satisfied such obligation. In connection with the termination of the Eureka Option, Eureka has agreed to allow Hawthorne to leave the site with drill holes and roads in place in exchange for (i) Hawthorne transferring its Ministry of Energy, Mines and Petroleum Resources Exploration Permit for the Eureka Claims along with a $50,000 environmental bond for such claims to Eureka (ii) Hawthorne transferring to Eureka certain buildings, equipment and improvements on the Eureka Claims and (iii) Hawthorne delivering to Eureka copies of all reports, maps, assay results and other technical data compiled by or in the possession of the Company with respect to the Eureka Claims that have not already been provided by the Company to Eureka. Hawthorne has fulfilled its obligations under the Eureka Option and now no longer has any rights or interests in the Eureka Claims. As noted above, the Addie Claims will be transferred from Hawthorne to Eureka and when such transfer is complete, Hawthorne will have no right or interest in the Addie Claims. Similarly, the Dajin Option Agreement and the Bourdon Option Agreement will be transferred from Hawthorne to Eureka and when such transfer is complete, Hawthorne will no longer have any right in the Dajin Claims and the Bourdon Claim.

The decision to discontinue the Eureka Option and the Company's Frasergold Project in general was based on management's decision to focus the Company's resources on its wholly-owned subsidiary, Cassiar Gold Corporation, which owns the Table Mountain Gold Mine and the Taurus Gold Deposit. The Company will continue to work towards production at Table Mountain and the development at the nearby Taurus deposit.