News Release

 August 16, 2010
Crowflight Announces Second Quarter 2010 Financial Results

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

Q2 2010 Financial and Operational Highlights:
  • For the quarter ended June 30, 2010, Crowflight produced 1,177,468 pounds of nickel, and sold 917,977 pounds of nickel payable as compared to 234,920 pounds of nickel produced and 254,139 pounds of nickel sold in the second quarter of last year.

  • Total metal revenue for the quarter ended June 30, 2010 was $9.7 million compared to $2.0 million for the second quarter last year.

  • Operating cash flow for the quarter ended June 30, 2010 was negative $8.8 million compared to operating cash flow of $1.5 million in the second quarter last year.

  • Loss for the quarter ended June 30, 2010 was $5.1 million or ($0.01) per share compared to net loss of $3.3 million or ($0.01) per share in the second quarter last year.

  • Commercial nickel sales settled during the quarter ended June 30, 2010 were realized at an average price of US$10.25 per pound compared with US$6.79 per pound in the second quarter of 2009.

  • Net working capital as at June 30, 2010 was negative $4.8 million (including cash and cash equivalents of $1.8 million) compared to $3.2 million as at December 31, 2009.

  • On April 6, 2010, 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 number of Crowflight common shares outstanding at the time of the announcement, this Offer equated 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 outstanding on the date of the Offer that have an exercise price of equal to or less than $0.22, the Offer equated to approximately $0.22 per share. On this basis, the Offer represented 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.

  • On May 6, 2010, the Company announced the resignation of Greg Collins, Vice President of Exploration for Crowflight, effective April 30th.

  • 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.

  • On May 10, 2010, the Company announced it continues discussions with Jinchuan regarding the offer letter (the "Offer") from Jinchuan to acquire all of the common shares of Crowflight in consideration for an aggregate cash payment of $150,000,000 (for details regarding the Offer, please see the Company's press release of April 6, 2010).

  • On June 16, 2010, Michael Barton and Gregory Radke resigned from the Board of Directors of the Company. Messrs. Barton and Radke represented Pala Investments Holdings Limited ("Pala") on the Board. Their resignation occurred in connection with Pala selling all 152,311,221 common shares and 50,588,235 warrants of Crowflight that it held to King Place Enterprises Limited ("King Place") for a total purchase price of CAD$30.75 million. King Place has disclosed that, as a result of this purchase, it holds a total of 247,029,971 Crowflight common shares (representing approximately 42.3% of the outstanding common shares) and 50,588,235 Crowflight share purchase warrants. King Place is a private company which is now affiliated with Hebei Wenfeng Industrial Group, the parent company of Hebei Wenfeng Iron and Steel Co., Ltd., a significant Chinese steel producing company.

  • During the quarter, Crowflight provided an update regarding the offer from Jinchuan to acquire all of the common shares of Crowflight in consideration for an aggregate cash payment of $150,000,000. Negotiations continue between representatives of the Company and Jinchuan. Jinchuan has confirmed the continued validity of the Offer, and Crowflight and Jinchuan have agreed that the Offer will remain valid until August 31, 2010. The Offer is premised on Jinchuan obtaining 100% of the offtake from the Bucko Lake Mine and any of the Crowflight exploration properties that are subsequently placed into production.

  • Subsequent to the quarter's end, Crowflight announced the appointment of David Hunter, MBA, CA as Chief Financial Officer for the Company, effective June 30, 2010. Mr. Hunter replaces Anna Ladd who previously held the role.

  • Subsequent to the quarter's end, a major supplier to the Bucko site filed a lien against the property for services rendered. The supplier is continuing to provide services to the site and negotiations have been underway to resolve this situation. Filing of the lien has not affected the operations of the Bucko Lake Mine.

  • Subsequent to the quarter's end, the Company announced that it had completed a $5.05 million bridge loan from King Place Enterprises Limited ("King Place") with the potential for a further financing of $5 million to be arranged by King Place on commercially reasonable efforts, private placement basis. The loan will be in the form of a $5,050,000 principal amount promissory note (the "Note") to be issued by Crowflight to King Place. The potential additional $5 million financing would result from the sale, on a private placement basis, of a further 35,714,285 common shares of the Company as arranged by King Place, at a price of $0.14, within 35 days following the date hereof, subject to the receipt of regulatory approval. King Place is a related party to the Company as the Company understands that it holds more than 40% of the outstanding common shares of the Company.
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 once a steady state of production of 1,000 tonnes per day has been achieved.

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 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 resumed production in March 2010. 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 those 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:

David Hunter
Chief Financial Officer
Crowflight Minerals
Tel: (416) 861-5885

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