News Release

 November 16, 2009
Crowflight Announces Third Quarter 2009 Financial Results

 CROWFLIGHT MINERALS INC. ("Crowflight" or the "Company") (TSX: CML) today announces its financial results for the third quarter of 2009.

Complete interim financial statements and related Management's Discussion and Analysis will be filed under the Company's profile on www.sedar.com. All amounts are in Canadian dollars unless otherwise indicated.

Q3 2009 Financial and Operational Highlights:
  • For the quarter ended September 30, 2009, there was 384,327 pounds of nickel produced, and 276,918 pounds of commercial production nickel sold as compared to nil in the third quarter of last year as the mine was not yet in production.

  • Total metal revenue for the quarter ended September 30, 2009 was $2.3 million compared to nil for the third quarter last year.

  • Operating cash flow for the quarter ended September 30, 2009 was $389,211 compared to operating cash flow of negative $634,800 in the third quarter last year.

  • Loss for the quarter ended September 30, 2009 was $2.9 million or ($0.01) per share compared to net income of $9.9 million or $0.04 per share in the third quarter last year (due to a gain on derivative instruments in 2008).

  • Commercial nickel sales settled during the quarter ended September 30, 2009 were realized at an average price of US$7.41 per pound.

  • Net working capital4 as at September 30, 2009 was $15.2 million (including cash and cash equivalents of $13.7 million) compared to $7.7 million as at December 31, 2008.

         
  Q1-2009 Q2-2009 Q3-2009
Pre-production Pre-production Production Production
Operating Statistics:        
Tonnes ore mined            31,091           42,224          18,377          27,634
Average Nickel head grade (%Ni)  0.95% 1.25% 0.93% 1.05%
Tonnes ore milled            29,303           35,490          18,390          23,493
 Average Recovery 31.97% 61.40% 62.62% 69.70%
Nickel pounds:        
Produced          138,956         441,200        234,920        384,327
Payable sold1            65,498         268,636        254,139        276,918
         
Pre-production Metal Sales Revenue:        
Average Ni price (US$/lb)   $            4.46  $           5.73    
CAD/US exchange rate                1.26               1.15    
Nickel revenue1  $      368,318  $  1,939,400    
Other metals revenue 2  $          5,935           86,700    
Total metal revenue  $      374,253  $  2,026,100    
         
Commercial Production Metal Sales Revenue:        
Average Ni price (US$/lb)       $          6.79  $          7.41
CAD/US exchange rate                  1.16              1.09
Nickel revenue         2,007,450     2,231,683
Pricing adjustments3                      -            52,810
Total metal revenue         2,007,450     2,284,493
Cost of sales         2,445,213     2,546,116
Accretion                      -                    -  
Temporary shutdown costs                      -       2,381,083
Depreciation, depletion, and amortization            336,093        605,141
Gross profit (loss)                                             (773,856)   (3,247,847)
Net earnings (loss)          (3,193,607)   (5,214,837)
Basic and diluted earnings (loss per share)      $        (0.01)  $        (0.01)
Cash flow from operating activities         1,509,159        109,511
USD Cash Cost of sales per pound sold1,4      $          8.28  $          8.45
1. Includes settlement of prior quarter sales
2. Other metal revenue is recorded as an offset to Cost of Goods Sold in the Company's financial statements
3. Pricing adjustments reflect final pricing/volume adjustments on lots sold in prior quarters
4. Non-GAAP Measure This press release refers to cash cost per pound and working capital which is not a recognized measure under Canadian GAAP. This non-GAAP financial measure does not have any standardized meaning prescribed by Canadian GAAP and is therefore unlikely to be comparable to a similar measure presented by other issuers. Management uses this measure internally. The use of this measure enables management to better assess performance trends. Management understands that a number of investors and others who follow the Company's performance assess performance in this way. Management believes that this is a better indication of its expected performance in future periods. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP.
  • In July 2009, the Company announced a private placement financing with Pala Investments Holdings Ltd ("Pala"), whereby the Company raised $15,000,000 through the issuance of 60,000,000 units of the Company at a price of $0.25 per unit. Each Unit consisted of one common share of the Company and one-half of one common share purchase warrant (each full warrant, a "Warrant"), each whole Warrant being exercisable to acquire one common share of the Company at a price of $0.30 until July 23, 2011. Net proceeds from the Offering were used to pay outstanding indebtedness, including $5.0 million to its mining contractor (an affiliate of Pala), and for capital development and general working capital purposes. The Offering also enabled the Bucko operation to complete an upgrade to its effluent treatment capabilities so that Crowflight continues to maintain strict compliance with all environmental guidelines.

  • Mill operations were temporarily suspended during July due to a lack of available ore from the main production stope. Poor ground conditions in the stope entrance required the development of a new stope access drift so that mining operations could resume safely. The new access was successfully completed by the end of the month. During the month of July, a new water treatment facility was also installed and commissioned at the Bucko Mine due to water issues that were encountered at the end of June. Thirty mill employees were temporarily laid off for four weeks until the mill resumed operation on August 4, 2009.

  • In September 2009, Crowflight announced a private placement financing with Kingplace Enterprises Limited ("Kingplace") for a $20 million private placement financing, pursuant to which Kingplace agreed to purchase an aggregate of 80,000,000 common shares of the Company at a price of $0.25 per share. The primary purpose of the proceeds from the financing will be for the continued development of the Bucko Lake Project and the balance for general corporate purposes. The first tranche closed on September 29, 2009 for gross proceeds of $11,183,305 and the second tranche closed subsequent to the quarter's end on October 14, 2009 for gross proceeds of $8,816,695.
Outlook

As announced earlier today, the Company will be temporarily suspending all production mining and milling operations at the Bucko Lake Nickel Mine (Bucko) located in the Thompson Nickel Belt near Wabowden, Manitoba for three months, effective immediately to complete ramp development, accelerate mine development and upgrade the backfill plant.

As a result, Crowflight has revised its production guidance for 2009 and now expects to produce 1.3 million pounds of nickel, generating approximately 1.2 million pounds of payable nickel. Average cash cost of sales per pound of nickel4 for the full year 2009 is expected to be approximately US$7.50 - $8.50 per pound at an exchange rate of CDN$1.10 to US$1.00, primarily from costs incurred for the year-to-date and lower than expected production for the remainder of the year. Management expects that costs will decrease significantly as full capacity production is sustained at Bucko in 2010.

Capital expenditures for the remainder of 2009 are expected to be $6-7 million (consistent with the disclosure in the second quarter MD&A).

The Company also plans to spend $1.0 million dollars in exploration activity around the M11A deposit located 5 km from the Bucko mine site during the fourth quarter of 2009. This work will allow Crowflight to vest a 30% interest in the combined land package in the Thompson Nickel Belt held under option from Xstrata. Exploration drilling is expected to commence shortly with updates expected to be released over the coming weeks.

The Company plans to issue comprehensive guidance regarding 2010 production and costs in January 2010. It is anticipated that by the end of the first quarter 2010, the Bucko mine will be sufficiently developed and have adequate working places (stopes) available to sustain the full production rate of at least 1,000 tonnes per day.

The Company also announces the resignation of Mike Kelly from the Company's Board of Directors. Mr. Kelly's resignation follows his departure from the Company as President and CEO (refer to press release dated August 21, 2009).

Qualified Person/Quality Control Procedures

This press release has been prepared and reviewed by Mr. Greg Collins, P.Geo. (APGO/APEGM) VP Exploration of Crowflight, who is a Qualified Person under the National Instrument 43-101 guidelines.

Crowflight Minerals - Canada's Newest Nickel Producer

Crowflight Minerals Inc. (TSX: CML) is a Canadian junior mining company that owns the Bucko Lake Nickel Mine near Wabowden, Manitoba. The Company is also focused on nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin.

Cautionary Note on Forward-Looking Information

This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the Company's development potential and timetable of the Company's properties, including the Bucko Lake Project; the future price of nickel and other minerals; foreign exchange rates; the estimation of mineral reserves and mineral resources; conclusions of economic evaluations; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", 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 are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Bucko Lake Project are based on assumptions underlying mineral reserve and mineral resource estimates and the probability of realizing such estimates that are set out herein. Capital and operating cost estimates are based on extensive research of the Company, purchase orders placed by the Company to date, recent estimates of construction and mining costs and other factors that are set out herein. Production estimates are based on mine plans and production schedules, which have been developed by the Company's personnel and independent consultants. Forward looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: unexpected events and delays during construction, expansion and start-up; variations in mineral grade and recovery rates; receipt and revocation of government approvals; timing and availability of external financing on acceptable terms; actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of minerals, particularly nickel; failure of plant, equipment or processes to operate as anticipated; reliance on joint venture partners; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

Further information is available on the Company's website at www.crowflight.com or contact:

Anna M. Ladd
VP Finance and CFO
Crowflight Minerals
Tel: (416) 861-5891

Heather Colpitts
Manager, Investor and Public Relations
Crowflight Minerals
Tel: (416) 861-5803
info@crowflight.com


CONSOLIDATED BALANCE SHEETS
As at
 
   September 30,      December 31,
  2009     2008
ASSETS   (unaudited)     (unaudited)
Current   
Cash and cash equivalents $          13,675,834    $       10,607,543
Restricted cash                             -               2,999,998
Amounts receivable            11,306,065                607,125
Inventory              2,152,818                268,285
Prepaid expenses and deposits                  126,970                138,463
Derivative asset                             -               8,668,392
 
             27,261,687          23,289,806
 
Deposits and advances                  534,709                536,709
Property, plant and equipment          164,080,944                109,241
Derivative assets                             -                              -  
Exploration and development property and deferred expenditures            16,728,808        153,939,715
   
  $        208,606,148    $     177,875,471
 
   
LIABILITIES
Current           
Accounts payable and accrued liabilities $          11,512,348    $       14,950,385
In-process working capital facility                  334,286                            -  
Current portion of long term debt                             -                              -  
Equipment leases                    44,342                  48,129
Derivative liability                  217,348                624,223
             12,108,324          15,622,737
   
Equipment leases                    73,176                107,286
Long term debt                             -               7,600,000
Asset retirement obligations                  918,387                359,000
Future income tax liability            24,449,000          24,139,000
             37,548,887          47,828,023
   
SHAREHOLDERS' EQUITY  
Common shares          129,909,726          99,289,864
Shares to be issued              8,816,695                            -  
Warrants            10,195,919             4,944,374
Contributed surplus            14,455,652          13,485,751
Retained Earnings              7,679,269          12,327,459
   
           171,057,261        130,047,448
   
  $        208,606,148    $     177,875,471
 
These financials should be read in conjunction with the Notes and Management's Discussion and Analysis available online at www.sedar.com and on the Company's webside at www.crowflight.com.



Consolidated Statements of Shareholders' Equity
(unaudited)
  Common Shares Shares to be issued  Warrants   Contributed Surplus   Accumulated Deficit   Shareholders' Equity 
 No.     $     $   $   $   $ 
Balance, December 31, 2007   249,978,487       86,671,512                   -       2,025,712    10,193,512   (22,151,940)      76,738,796
                 -  
Private placement     39,680,000       15,251,000                   -                    -                     -                     -        15,251,000
Value of warrants granted related to debt facility                    -                       -                     -       3,719,479                   -                     -          3,719,479
Value of warrants to be granted                    -                       -                     -          849,709                   -                     -             849,709
Exercise of warrants and broker warrants       1,115,836            446,334                   -                    -                     -                     -             446,334
Valuation allocation on exercise of warrants                    -              118,742                   -         (118,742)                   -                     -                      -  
Exercise of stock options       2,530,000            569,531                   -                    -                     -                     -             569,531
Valuation allocation on exercise of stock options                    -              979,566                   -                    -          (979,566)                   -                      -  
Stock based compensation                    -                       -                     -                    -        2,364,835                   -          2,364,835
Flow through share tax effect                    -         (3,563,000)                   -                    -                     -                     -        (3,563,000)
Value of broker warrants                    -            (375,186)                   -          375,186                   -                     -                      -  
Valuation allocation on expiry of warrants and broker warrants                    -                       -                     -      (1,906,970)      1,906,970                   -                      -  
Share issue costs                    -         (1,198,635)                   -                    -                     -                     -        (1,198,635)
Tax effect of cost of issue                    -              390,000                   -                    -                     -                     -             390,000
Income for the period                    -                         -                     -                    -                     -      34,479,399      34,479,399
Balance, December 31, 2008   293,304,323       99,289,864                   -       4,944,374    13,485,751    12,327,459    130,047,448
Private placement   180,144,986       39,003,305                   -                    -                     -                     -        39,003,305
Shares to be issued on private placement                    -                       -        8,816,695                  -                     -                     -          8,816,695
Value of warrants granted                    -         (4,842,336)                   -       4,842,336                   -                     -                      -  
Value of warrants granted related to debt facility                    -                       -                     -          107,597                   -                     -             107,597
Stock based compensation - shares          464,555              96,975                   -                    -                     -                     -               96,975
Stock based compensation - options                    -                       -                     -                    -           969,901                   -             969,901
Flow through shares tax effect                    -         (2,982,000)                   -                    -                     -        (2,982,000)
Value of broker warrants                    -            (301,612)                   -          301,612                   -                     -                      -  
Share issue costs                    -            (523,400)                   -           (523,400)
Tax effect of cost of issue                    -              168,930                   -                    -                     -                     -             168,930
Income for the period                    -                         -                     -                    -                     -       (4,648,190)      (4,648,190)
Balance, September 30, 2009   473,913,864     129,909,726      8,816,695   10,195,919    14,455,652      7,679,269    171,057,261
                 
These financials should be read in conjunction with the Notes and Management's Discussion and Analysis available online at www.sedar.com and on the Company's webside at www.crowflight.com.



CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(unaudited)
For the three and nine months ended September 30,
         
 Three months ended September 30,   Nine months ended September 30, 
  2009 2008 2009 2008
Revenue
Nickel sales  $    2,231,683  $                   -    $    4,239,133  $                   -  
Pricing adjustments              52,810    $          52,810  
Revenue - after pricing adjustments  $    2,284,493  $                   -    $    4,291,943  $                   -  
Cost of sales (excludes accretion, depreciation, depletion and amortization)        2,546,116                       -          4,991,329                       -  
Depreciation, depletion and amortization            605,141                       -              941,234                       -  
Gross margin - mining operations          (866,764)                       -         (1,640,620)                       -  
Temporary shutdown costs        2,381,083          2,381,083  
Loss from mine operations       (3,247,847)                       -         (4,021,703)                       -  
Other expenses
Professional, consulting and management fees        1,036,527            704,210        2,327,994        2,642,092
General and office             372,310            128,439        1,199,837            328,083
Shareholder communications and investor relations            127,433              39,182            331,859            287,429
Travel              42,214              32,173            160,900            142,405
Interest expenses and bank charges              51,773                4,123            128,621                9,332
Amortization                    201                1,437                1,355                5,560
         1,630,458            909,564        4,150,566        3,414,901
(Loss) before the undernoted       (4,878,305)          (909,564)       (8,172,269)       (3,414,901)
Interest income                3,161              66,605              26,672            199,126
Interest on long term debt                       -            (482,309)            (48,673)          (901,140)
General exploration                       -            (106,921)            (50,000)          (106,921)
Debt facility transaction costs                  (322)          (499,594)          (383,464)       (2,544,796)
Write down of exploration property and deferred expenditures                       -                         -              (50,000)                       -  
Accretion                       -            (299,695)              57,416          (789,180)
Recovery of expenditures                       -                         -                66,958                       -  
Net gain (loss) on derivative instruments          (339,371)      18,267,980        1,402,100      18,267,980
Income/(loss) before income taxes       (5,214,837)      16,036,502       (7,151,260)      10,710,168
Future income taxes        2,308,970       (6,145,000)        2,503,070       (5,189,000)
Income/(loss) for the period       (2,905,867)        9,891,502       (4,648,190)        5,521,168
RETAINED EARNINGS/(DEFICIT), beginning of period      10,585,136    (26,522,274)      12,327,459    (22,151,940)
RETAINED EARNINGS/(DEFICIT), end of period $     7,679,269 $ (16,630,772) $     7,679,269 $ (16,630,772)
         
Loss per share - basic & diluted $              (0.01) $               0.04 $              (0.01) $               0.02
Weighted average number of shares - basic & diluted    415,524,927    269,683,888    351,897,975    261,202,344
         
These financials should be read in conjunction with the Notes and Management's Discussion and Analysis available online at www.sedar.com and on the Company's webside at www.crowflight.com.



CONSOLIDATED STATEMENTS OF CASH FLOWS
unaudited
For the three and nine months months ended September 30,
 
Three months ended September 30, Nine months ended September 30,
  2009 2008 2009 2008
OPERATING ACTIVITIES:
Net income/(loss) for the period  $       (2,905,867)  $     9,891,502  $      (4,648,190)  $      5,521,168
Charges not affecting cash:
Amortization             603,321              1,437               940,568                   5,560
Stock-based compensation expense              334,705          508,473            1,052,626           2,047,060
   Warrants issued on In-process working capital facility                         -                       -                 107,597                          -  
Accretion                         -            299,695                (57,416)              789,180
Debt facility transaction costs                         -            499,594                           -             2,544,796
Capitalized interest                         -            203,525                           -                622,356
Change in value of derivative instruments           (131,737)  (18,267,980)            8,261,517       (18,267,980)
Future income tax recovery        (2,308,970)      6,145,000          (2,503,070)           5,189,000
Net change in non-cash working capital          4,797,759            83,954            7,236,213         (1,036,472)
                 389,211           (634,800)         10,389,845         (2,585,332)
FINANCING ACTIVITIES:
Debt facility, net of transaction costs                         -      39,500,406          (7,600,000)        62,673,758
Retirement of debt facility                         -    (15,000,000)                           -         (15,000,000)
Common shares issued through private placements       21,132,546                     -           28,425,966        10,184,706
Shares issued from exercise of warrants and options                         -              11,250                           -             1,015,866
Payments on equipment leases              (10,624)          (20,312)                (37,897)               (67,656)
           21,121,922       24,491,344         20,788,069        58,806,674
INVESTING ACTIVITIES:
Exploration and development property, plant and equipment, and deferred expenditures        (6,761,989)  (25,076,313)        (27,070,312)       (60,997,071)
(Increase) decrease in deposits and prepaid exploraton expenditure                         -                       -                             -                318,554
(Decrease)/Increase in accounts payable attributable to property development and exploration        (2,732,055)      6,888,246          (4,039,309)           8,492,386
Release of restricted cash                         -                       -              2,999,998                          -  
            (9,494,044)     (18,188,067)        (28,109,623)       (52,186,131)
CHANGE IN CASH AND CASH EQUIVALENTS          12,017,089         5,668,477            3,068,291           4,035,211
CASH AND CASH EQUIVALENTS, beginning of period  $        1,658,745  $     7,371,522         10,607,543           9,004,788
CASH AND CASH EQUIVALENTS, end of period  $      13,675,834  $   13,039,999  $     13,675,834  $    13,039,999
         
Cash and cash equivalents consist of:
Cash             5,509,476         5,488,999            5,509,476           5,488,999
Cash equivalents             8,166,358         7,551,000            8,166,358           7,551,000
 $      13,675,834  $   13,039,999  $     13,675,834  $    13,039,999
         
SUPPLEMENTAL INFORMATION:
Warrants granted related to debt facility                            -                          -                 107,597           3,719,479
Warrants granted as cost of issue                            -                          -                 301,612              244,831
Stock based compensation charged to exploration properties                            -                          -                   14,250                          -  
Amortization of assets deferred to exploration properties                        604                 7,193                    9,437                21,582
Interest received                     3,161               68,120                 28,672              206,923
Interest paid                     8,885                        -                   69,405              158,221
Income taxes paid                            -                          -                             -                            -  
Common shares issued for settlement of accounts payable             5,053,939                        -           10,053,939                          -  
Shares to be issued on private placement             8,816,695                        -              8,816,695                          -  
These financials should be read in conjunction with the Notes and Management's Discussion and Analysis, available online at www.sedar.com and on the Company's website at www.crowflight.com
 
 

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CANICKEL MINING LIMITED. P.O. Box 35 1655-999 West Hastings Street, Vancouver, British Columbia, Canada V6C 2W2 P: 778-372-1806 F: 604-254-8863 E: