Huakan International Mining Inc. Announces an Agreement Relating to the Net Smelter Returns Royalty on the Greenwood Gold Pro...

Huakan International Mining Inc. (TSX VENTURE:HK) (the "Company") has entered
into an agreement (the "Agreement") with Gold Crown LLC and its wholly owned
subsidiary, AMT Industries Canada Inc. (collectively, the "Purchasers"). The
Purchasers acquired the Company's Greenwood Gold Project on December 2, 2011 for
consideration of C$7,425,000 and a net smelter returns royalty (the "NSR
Agreement"). The NSR Agreement consists of a 2% net smelter returns royalty
(subject to reduction to 1% if the price of gold drops below US$1,050) on any
ore milled at the Greenwood mill and guarantees payments of C$9,000,000 over a
ten year period. Pursuant to the NSR Agreement, the Purchasers are required to
make annual minimum net smelter royalty payments of C$500,000 and to make a lump
sum payment at the end of the ten year period, if necessary, to bring the total
net smelter royalty payments to C$9,000,000. The Company retains a security over
certain assets of the Greenwood Gold Project until the payments under the NSR
Agreement have been fulfilled. 


The Purchasers have requested that the Company amend the NSR Agreement. After
consideration by the Company's Board of Directors and Management, the Company
believes it is in its best interests to amend the NSR Agreement as follows:




1.  Within 60 days from the date of the Agreement, the Purchasers will take
    steps to have the mine permits in respect of the Greenwood Gold Project,
    which are currently in the Company's name, assigned from the Company to
    the Purchasers. In connection thereto, the Purchasers will provide a
    safekeeping agreement and will post a replacement reclamation bond in an
    amount and form acceptable to the Government of British Columbia (the
    "Government") and the Purchasers and the Company will request that the
    Government release the Company's reclamation bond of C$450,000 to the
    Company;
     
2.  Within 90 days from the date of the Agreement, the Purchasers will make
    a cash payment of C$4,500,000 to the Company; and
     
3.  Upon completion of the foregoing, the Company will cancel the NSR
    Agreement, release the Purchasers' obligations to make any net smelter
    royalty payments to the Company and remove the Company's security over
    the assets of the Greenwood Gold Project.



Pengzhi Guo, the Chairman and Chief Executive Officer of the Company said, "We
are pleased to enter into the Agreement with the Purchasers. The cash proceeds
and the change in titles on the mill and mining permits allow the Company to
focus its resources on its J&L precious and polymetallic metals property and
potential new mineral property acquisitions." 


CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION

Certain of the statements made and information contained herein may contain
forward-looking statements or forward-looking information within the meaning of
applicable securities laws. Such forward-looking statements or forward-looking
information include, but are not limited to, statements concerning performance
of the various terms of the Agreement by the parties thereto. Forward-looking
statements or information include statements regarding the expectations and
beliefs of management. Often, but not always, forward-looking statements and
forward-looking information can be identified by the use of words such as
"plans", "expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or the negatives thereof or
variations of such words and phrases or statements that certain actions, events
or results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements or information include, but are not limited
to, statements or information with respect to known or unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements or information. 


Forward-looking statements or information are subject to a variety of risks and
uncertainties which could cause actual events or results to differ from those
reflected in the forward-looking statements or information, including, without
limitation, risks and uncertainties relating to the completion of the announced
transaction with Gold Crown LLC and AMT Industries Canada Inc.; dilution; loss
of its material properties; interest rates increase; global economy; limited
history of production; speculative nature of exploration activities; periodic
interruptions to exploration, development and mining activities; environmental
hazards and liability; industrial accidents; failure of processing and mining
equipment; labour disputes; supply problems; commodity price fluctuations;
uncertainty of production and cost estimates; the interpretation of drill
results and the estimation of mineral resources and reserves; legal and
regulatory proceedings and community actions; title matters; regulatory
restrictions; permitting and licensing; volatility of the market price of common
shares; insurance; competition; hedging activities; currency fluctuations; and
loss of key employees. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those described in forward-looking statements or
information. Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information. The Company disclaims any intent or
obligation to update forward-looking statements or information except as
required by law, and you are referred to the full discussion of the Company's
business contained in the Company's reports filed with the securities regulatory
authorities in Canada.