News Release

 May 17, 2010
Crowflight Announces First Quarter 2010 Financial Results

 CROWFLIGHT MINERALS INC. ("Crowflight" or the "Company") (TSX: CML) today announces its financial results for the first quarter of 2010.

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.

Q1 2010 Financial and Operational Highlights
  • The Bucko Lake Nickel Mine ("Bucko") located in the Thompson Nickel Belt near Wabowden, Manitoba resumed milling operations and shipments of nickel concentrate during the first quarter of 2010. This marks the first shipments of nickel concentrate since milling operations resumed at the Bucko Mine earlier this year.
  • For the quarter ended March 31, 2010, there were 141,970 pounds of nickel produced, and 117,600 pounds of commercial production nickel sold as compared to 138,956 pounds of nickel produced and 65,498 of pre-production nickel sold in the first quarter of last year when the mine was not yet in production.
  • Total metal revenue for the quarter ended March 31, 2010 was $1.2 million compared to nil for the first quarter last year.
  • Operating cash flow for the quarter ended March 31, 2010 was negative $8,944,040 compared to operating cash flow of $8,491,474 in the first quarter last year.
  • Loss for the quarter ended March 31, 2010 was $6.2 million or ($0.01) per share compared to net income of $1.5 million or $0.01 per share in the first quarter last year (due to a gain on derivative instruments in the first quarter of 2009).
  • Commercial nickel sales settled during the quarter ended March 31, 2010 were realized at an average price of US$9.77 per pound compared with pre-production nickel sales in the first quarter of 2009 which were realized at an average price of US$4.46 per pound.
  • Net working capital as at March 31, 2010 was $4.0 million (including cash and cash equivalents of $9.2 million) compared to $3.2 million as at December 31, 2009.
2010 Quarterly Bucko Mine Operations Production and Financial Data
  Q1-2010
Operating Statistics:  
Tonnes ore mined 11,177
Average Nickel head grade (%Ni) 1.02%
Tonnes ore milled 9,431
Average Recovery 66.94%
Nickel pounds:  
Produced 141,970
Payable sold1 117,600
   
Commercial Production Metal Sales Revenue:  
Average Ni price (US$/lb) $ 9.77
CAD/US exchange rate $ 1.04
Nickel revenue 893,266
Pricing adjustments3 304,756
Total metal revenue 1,198,022
Cost of sales2 3,867,822
Temporary shutdown costs 4,480,891
Depreciation, depletion, and amortization 36,432
Gross profit (7,187,123)
Net earnings (loss) before tax (8,935,360)
Basic and diluted earnings (loss per share) $ (0.01)
Cash flow from operating activities (8,944,040)
USD Cash Cost of sales per pound sold1,4 $ 31.53
1. Includes settlement of prior quarter sales
2. Other metal revenue is recorded as an offset to cost of sales in the Company's financial statements
3. Pricing adjustments reflect final pricing/volume adjustments on lots sold in prior quarters
4. Non-GAAP Measure - see "Non-GAAP Measures" section
  • On January 27, 2010, the Company received a non-binding expression of interest from Pala regarding the direct or indirect acquisition of the Bucko Deposit and certain surrounding exploration areas held by the Company in the Thompson Nickel Belt, including the M11A and Apex deposits, collectively the "Bucko Assets". Subsequent to the quarter's end, discussions with Pala were terminated. Please see press releases dated January 27 and 28, 2010 and May 10, 2010.
  • On February 19, 2010, the Company announced it had closed a private placement financing by issuing an aggregate of 72,200,000 common shares of the Company at a price of $0.16 per share for gross proceeds of $11,552,000. Pala purchased 21,356,250 of the 72,200,000 common shares resulting in it holding approximately 25.3% of the issued and outstanding shares of the Company (based on Pala's public disclosure of its security holdings).
  • On February 4, 2010 and March 4, 2010, Crowflight reported assay results from a program of drilling at the Company's M11A North deposit, located 5 kilometres from the Bucko mine site. Drilling results from this program are to be used to update resource calculations later this year. Exploration expenditures made in 2009 entitle Crowflight to vest its initial 35% interest in the combined land package in the Thompson Nickel Belt as per the terms of its option agreement with Xstrata.
  • On March 23, 2010, the Company announced the appointment of Steve Davies, P.Eng. as Chief Operating Officer of Company.
  • Subsequent to the quarter's end, the Company received an offer from Jinchuan Group Ltd. ("Jinchuan") to acquire all of the common shares of Crowflight in consideration for an aggregate cash payment of $150,000,000. Based on the current number of Crowflight common shares outstanding, this Offer equates to approximately $0.26 per common share. The Offer represents a premium of 47.3% to the closing price on the Toronto Stock Exchange for the Company's common shares on April 2, 2010 and a premium of 56.8% to the 20 day volume weighted average trading price. On a partially diluted basis, taking into account the outstanding convertible securities of the Company that have an exercise price of equal to or less than $0.22, the Offer equates to approximately $0.22 per share. On this basis, the Offer represents a premium of 27.0% to the closing price on the Toronto Stock Exchange for the Company's common shares on April 2, 2010 and a premium of 35.1% to the 20 day volume weighted average price. Please see press release dated April 6, 2010.
  • Subsequent to the quarter's end, the Company announced the resignation of Greg Collins, Vice President of Exploration for Crowflight, effective April 30th
  • Subsequent to the quarter's end, the Company entered into a series of financial instruments to price protect nickel sales from July 2010 -- June 2011. The Company has hedged approximately 850,000 pounds of nickel at prices ranging from US$9.00 - $11.00 per pound of nickel.
  • Subsequent to the quarter's end, the TSX announced that it had completed its review of the listing of the common shares of the Company and determined that Crowflight meets TSX's continued listing requirements.
Outlook
Crowflight does not expect to meet its 2010 guidance as previously disclosed in February 2010 (please see press release dated February 24, 2010). The Company is currently reviewing its 2010 production plan and costs for the remainder of this year, and expects to give updated guidance later this year.

Non-GAAP Measures
This press release refers to net working capital and cash cost per pound, which are not recognized measures under Canadian GAAP. These non-GAAP performance measures do not have any standardized meaning prescribed by Canadian GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Management uses these measures internally. The use of these measures 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. 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.

Qualified Person/Quality Control Procedures
This press release has been prepared and reviewed by Steve Davies, P.Eng, Chief Operating Officer of Crowflight, who is a Qualified Person under the National Instrument 43-101 guidelines.

About Crowflight Minerals
Crowflight Minerals Inc. (TSX: CML) is a Canadian junior mining company that owns the Bucko Lake Nickel Mine near Wabowden, Manitoba that recently resumed production. The Company also holds 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 and those other risks of the Company described in its annual information form that is available under its profile on SEDAR at www.sedar.com. 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                                                 
(unaudited)                                                                 
As at                                                                       
----------------------------------------------------------------------------
                                                     March 31,  December 31,
                                                          2010          2009
ASSETS                                                                      
Current                                                                     
  Cash and cash equivalents                     $    9,176,773 $  10,040,475
  Amounts receivable                                   828,895     1,291,687
  Inventory                                          1,976,731     1,031,734
  Prepaid expenses and deposits                        345,515       135,290
----------------------------------------------------------------------------
                                                                            
                                                    12,327,914    12,499,186
                                                                            
Deposits and advances                                  534,709       534,709
Property, plant and equipment                      140,600,300   138,568,967
Exploration and development property and                                    
deferred expenditures                               14,978,545    14,704,437
----------------------------------------------------------------------------
                                                                            
                                                $  168,441,468 $ 166,307,299
                                                                            
----------------------------------------------------------------------------
                                                                            
LIABILITIES                                                                 
Current                                                                     
  Accounts payable and accrued liabilities      $    8,244,136 $   9,282,060
  Equipment leases                                      46,422        45,371
----------------------------------------------------------------------------
                                                     8,290,558     9,327,431
                                                                            
Equipment leases                                        49,115        61,281
Asset retirement obligations                           938,213       918,387
Future income tax liability                          3,246,000     6,000,200
----------------------------------------------------------------------------
                                                    12,523,886    16,307,299
----------------------------------------------------------------------------
                                                                            
SHAREHOLDERS' EQUITY                                                        
Common shares                                      150,240,172   138,758,903
Warrants                                            10,195,919    10,195,919
Contributed surplus                                 16,353,704    15,698,606
Retained Earnings                                 (20,872,213)  (14,653,428)
----------------------------------------------------------------------------
                                                                            
                                                   155,917,582   150,000,000
----------------------------------------------------------------------------
                                                                            
                                                $  168,441,468 $ 166,307,299
                                                                            
----------------------------------------------------------------------------
      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.              

/T/

/T/

Consolidated Statements of Shareholders' Equity                             
(unaudited)                                                                 
                                       Common Shares                Warrants
----------------------------------------------------------------------------
                                          No.              $               $
                              ----------------------------------------------
                                                                            
Balance, December 31, 2008        293,304,323     99,289,864       4,944,374
                                                                            
  Private placement               215,411,765     47,820,000               -
  Value of warrants granted                 -    (4,842,336)       4,842,336
  Value of warrants granted                 -              -         107,597
   related to debt facility                                                 
  Exercise of stock options           245,000         49,000               -
  Valuation allocation on                   -         18,586               -
   exercise of stock options                                                
  Stock based compensation -          562,464        113,130               -
   shares                                                                   
  Stock based compensation -                -              -               -
   options                                                                  
  Flow through share tax                    -    (2,982,000)               -
   effect                                                                   
  Value of broker warrants                  -      (301,612)         301,612
  Share issue costs                         -      (523,400)                
  Tax effect of cost of issue               -        117,671               -
  Loss for the period                       -                              -
----------------------------------------------------------------------------
                                                                            
Balance, December 31, 2009        509,523,552    138,758,903      10,195,919
                                                                            
  Private placement                72,200,000     11,552,000               -
  Stock based compensation -           97,909         16,644               -
   shares                                                                   
  Stock based compensation -                -              -               -
   options                                                                  
  Share issue costs                         -      (125,000)               -
  Tax effect of cost of issue               -         37,625               -
  Loss for the period                       -              -               -
----------------------------------------------------------------------------
                                                                            
Balance, March 31,                                                          
2010                              581,821,461    150,240,172      10,195,919
                                                                            
----------------------------------------------------------------------------
      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.              

Consolidated Statements of Shareholders' Equity                             
(unaudited)                                                                 
                                  Contributed    Accumulated   Shareholders'
                                      Surplus        Deficit          Equity
----------------------------------------------------------------------------
                                            $              $               $
                              ----------------------------------------------
                                                                            
Balance, December 31, 2008         13,485,751     12,327,459     130,047,448
                                                                            
  Private placement                         -              -      47,820,000
  Value of warrants granted                 -              -               -
  Value of warrants granted                 -              -         107,597
   related to debt facility                                                 
  Exercise of stock options                 -              -          49,000
  Valuation allocation on            (18,586)              -               -
   exercise of stock options                                                
  Stock based compensation -                -              -         113,130
   shares                                                                   
  Stock based compensation -        2,231,441              -       2,231,441
   options                                                                  
  Flow through share tax                    -                    (2,982,000)
   effect                                                                   
  Value of broker warrants                  -              -               -
  Share issue costs                                                (523,400)
  Tax effect of cost of issue               -              -         117,671
  Loss for the period                       -   (26,980,887)    (26,980,887)
----------------------------------------------------------------------------
                                                                            
Balance, December 31, 2009         15,698,606   (14,653,428)     150,000,000
                                                                            
  Private placement                         -              -      11,552,000
  Stock based compensation -                -              -          16,644
   shares                                                                   
  Stock based compensation -          655,098              -         655,098
   options                                                                  
  Share issue costs                         -              -       (125,000)
  Tax effect of cost of issue               -              -          37,625
  Loss for the period                       -    (6,218,785)     (6,218,785)
----------------------------------------------------------------------------
                                                                            
Balance, March 31,                                                          
2010                               16,353,704   (20,872,213)    155,917,582 
                                                                            
----------------------------------------------------------------------------
      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.              

/T/

/T/

CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT                           
(unaudited)                                                                 
For the three months ended March 31,                                        
                                                                            
----------------------------------------------------------------------------
                                                         2010           2009
----------------------------------------------------------------------------
                                                                            
Revenue                                                                     
Nickel sales                                   $      893,266  $           -
Pricing adjustments                                   304,756  $           -
----------------------------------------------------------------------------
Revenue - after pricing adjustments                 1,198,022  $           -
                                                                            
Cost of sales (excludes accretion,                  3,867,822              -
 depreciation, depletion and amortization)                                  
Depreciation, depletion and amortization               36,432              -
----------------------------------------------------------------------------
Gross margin - mining operations                  (2,706,232)              -
                                                                            
Temporary shutdown costs                            4,480,891              -
----------------------------------------------------------------------------
Loss from mining operations                       (7,187,123)              -
                                                                            
Other expenses                                                              
Professional, consulting and management fees        1,179,818        584,294
General and office                                    192,804        123,280
Shareholder communications and investor               134,919         86,106
 relations                                                                  
Travel                                                 32,234         50,404
Interest expenses and bank charges                     35,847         34,842
Amortization                                              201            953
----------------------------------------------------------------------------
                                                                            
                                                    1,575,823        879,879
----------------------------------------------------------------------------
                                                                            
(Loss) before the undernoted                      (8,762,946)      (879,879)
                                                                            
Interest income                                         9,256         21,511
Interest on long term debt                                  -       (48,192)
General exploration                                         -       (50,000)
Write down of exploration property and deferred      (51,771)              -
 expenditures                                                               
Accretion                                            (19,826)         57,416
Recovery of expenditures                                    -         66,958
Net gain on derivative instruments                          -      2,090,556
Foreign exchange gain/(loss)                        (110,073)        (1,186)
----------------------------------------------------------------------------
                                                                            
Income/(loss) before income taxes                 (8,935,360)      1,257,184
                                                                            
Future income taxes                                 2,716,575        266,000
----------------------------------------------------------------------------
                                                                            
Income/(loss) for the period                      (6,218,785)      1,523,184
                                                                            
RETAINED EARNINGS/(DEFICIT), beginning of        (14,653,428)     12,327,459
 period                                                                     
                                               -----------------------------
                                                                            
RETAINED EARNINGS/(DEFICIT), end of period     $ (20,872,213)  $  13,850,643
                                               -----------------------------
                                               -----------------------------
                                                                            
----------------------------------------------------------------------------
                                                                            
Loss per share - basic & diluted               $       (0.01)  $        0.01
                                                                            
Weighted average number of shares - basic         544,020,195    293,306,263
Weighted average number of shares - diluted       544,020,195    293,311,875
                                                                            
----------------------------------------------------------------------------
      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.              

/T/

/T/

CONSOLIDATED STATEMENTS OF CASH FLOWS                                       
unaudited                                                                   
For the three months ended March 31,                                        
----------------------------------------------------------------------------
                                                          2010          2009
----------------------------------------------------------------------------
OPERATING ACTIVITIES:                                                       
Net income/(loss) for the period                $  (6,218,785) $   1,523,184
Charges not affecting cash:                                                 
  Depreciation, depletion and amortization              36,633           953
  Stock-based compensation expense                     671,742       365,547
  Accretion                                             19,826      (57,416)
  Change in value of derivative instruments                  -     8,044,169
  Future income tax (recovery)/expense             (2,716,575)     (266,000)
Net change in non-cash working capital               (736,881)   (1,118,963)
----------------------------------------------------------------------------
                                                   (8,944,040)     8,491,474
----------------------------------------------------------------------------
                                                                            
FINANCING ACTIVITIES:                                                       
Debt facility, net of transaction costs                      -   (7,600,000)
Private placements (net of issue costs)             11,427,000             -
Payments on equipment leases                          (11,115)      (16,765)
----------------------------------------------------------------------------
                                                                            
                                                    11,415,885   (7,616,765)
----------------------------------------------------------------------------
                                                                            
INVESTING ACTIVITIES:                                                       
Exploration and development property, plant and    (2,342,074)  (11,144,143)
 equipment, and deferred expenditures                                       
(Decrease) in accounts payable attributable to       (993,473)   (1,727,298)
 property development and exploration                                       
Change in restricted cash.                                   -     2,999,998
----------------------------------------------------------------------------
                                                                            
                                                   (3,335,547)   (9,871,443)
----------------------------------------------------------------------------
                                                                            
CHANGE IN CASH AND CASH EQUIVALENTS                  (863,702)   (8,996,734)
                                                                            
CASH AND CASH EQUIVALENTS, beginning of period      10,040,475    10,607,543
----------------------------------------------------------------------------
                                                                            
CASH AND CASH EQUIVALENTS, end of period        $    9,176,773 $   1,610,809
                                                                            
----------------------------------------------------------------------------
                                                                            
Cash and cash equivalents consist of:                                       
  Cash                                               2,441,273       801,384
  Cash equivalents                                   6,735,500       809,425
----------------------------------------------------------------------------
                                                $    9,176,773 $   1,610,809
                                                                            
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION:                                                   
Stock based compensation charged to exploration              -        14,250
 properties                                                                 
Amortization of assets deferred to exploration             604         8,229
 properties                                                                 
Interest received                                        9,256        22,191
Interest paid                                           30,372        50,551


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: