July 10, 2009
Hawthorne Settles Statement of Claim

 Hawthorne Gold Corp. ("Hawthorne" or the "Company") (TSX-V: HGC, US: HWTHF) announces that the Company was served with a Writ of Summons and a Statement of Claim in an action commenced in the Supreme Court of British Columbia by 669856 B.C. Ltd., doing business as SCS Diamond Drilling (the "Plaintiff").

The Company has entered into an agreement with the Plaintiff to settle this matter for a lump sum payment of $587,500. The payment is due on or before 4:00 p.m. (Vancouver time) on July 15, 2009.

The Statement of Claim alleged breach of contract in connection with a drilling agreement (the "Drilling Agreement") entered into between the Company and the Plaintiff. Pursuant to the terms of the Drilling Agreement, the Plaintiff acted as a contractor and performed certain drilling services for the Company in British Columbia. The Plaintiff sought a judgment against the Company in the amount of $4,848,277.53 representing an outstanding account balance, alleged delay charges and/or a termination fee. The Plaintiff also sought damages, interest and costs.

The Plaintiff is not under contract to perform any additional drilling or other services for Hawthorne and the Company's current drill program is moving ahead as scheduled. The drilling services for the Company's current drill program are being performed by a new drilling contractor. For further details on Hawthorne's current drill program, see Hawthorne's news release of June 24, 2009.

About Hawthorne Gold Corp.

Hawthorne Gold Corp. is a Canadian-based gold exploration and development company with key properties in British Columbia, Canada. Hawthorne is led by well respected mining leaders Richard Barclay and Michael Beley. Hawthorne's goal is to become a junior gold producer by working towards production at Cassiar Gold Mine in Q4 2009 / Q1 2010 and to continue resource development of the nearby Taurus deposit, as well as the Frasergold deposit in the south central British Columbia Cariboo region. Hawthorne continues to review potential acquisitions, focusing on high quality, advanced gold development opportunities.

For more information on Hawthorne, contact Todd Hanas toll free at 1-866-869-8072 or the Company at (604) 629-1505, or you can visit Hawthorne's website at www.hawthornegold.com.


(signed) "Richard J. Barclay"

Richard J. Barclay
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.

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 of accuracy of this release.

You can view the Next News Releases item: Thu Jul 23, 2009, Hawthorne to Commence Underground Development to Access the East Bain Gold Zone

You can view the Previous News Releases item: Wed Jun 24, 2009, Hawthorne Completes First Phase of Cassiar Drill Program

You can return to the main News Releases page, or press the Back button on your browser.