Hercules Resources to issue up to 3.13M shares for debt

Mr. Michael Smith reports HERCULES ANNOUNCES DEBT SETTLEMENT Hercules Resources Corp. intends to complete a debt settlement with certain creditors pursuant to which it shall seek to issue an aggregate of up to 3,139,679 common shares of the company at a deemed price of six cents per share, to settle an aggregate of approximately $188,381.00 in outstanding debt. The debt settlement is subject to approval of the Canadian Securities Exchange. All securities issued in connection with the debt settlement will be subject to a statutory hold period expiring four months and one day after closing of the debt settlement. Insiders may participate in the debt settlement. Any participation by insiders in the debt settlement will constitute a related party transaction under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, but is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. We seek Safe Harbor.