Louvem Mines Reports its 2008 Third Quarter Results

MONTREAL, QUEBEC--(Marketwire - Oct. 30, 2008) - Louvem Mines Inc. (TSX VENTURE: LOV.V), announces its financial results for the third quarter, which ended September 30, 2008. Financial results are based on Canadian GAAP and dollars are reported in Canadian currency, unless otherwise noted.

Revenues were $3,791,438 for the third quarter of 2008, compared with $1,407,223 during the same period in 2007. In all 4,001 ounces of gold were sold at an average price of US$922 (CAN$939) in the third quarter of 2008, compared with 1,880 ounces of gold sold at an average price of US$677 (CAN$728) for the same period in 2007. The increase in revenues is mainly attributable to the increase in quantity of ounces sold as well as the increase in the average price per ounce of gold sold.

The Company posted net earnings of $878,640, or $0.03 per share for the third quarter of 2008, compared with a net loss of $227,729, or $0.01 per share for the same period in the previous year. Cash flow from operations was $1,529,203 for the third quarter of 2008, as for the same period in the prior year $247,226 had been used.

Total expenses for the third quarter of 2008 were $2,463,743, compared with $1,580,103 incurred in the same period in 2007. Operating costs for the third quarter of 2008 were $1,838,833, an increase of $761,654 compared with $1,077,179 in the same period in 2007 because of higher production during this quarter when compared to the third quarter of 2007, where the lower costs reflect the five-week shut-down of the Beaufor Mine for headframe replacement. Third quarter 2008 expenses for exploration were $284,543 compared with $121,329 in the same period the prior year due in part to the costs associated to the on going exploration program being done at the Beaufor Mine which reflects the Company's efforts to grow its reserves. Depreciation and depletion decreased from $212,488 in 2007 to $164,032 in 2008, reflecting a lower depreciation and depletion rate per ounce which is calculated based on the proven and probable reserves which were higher at the Beaufor Mine as at December 31, 2007 when compared with December 31, 2006.

Beaufor Mine

During the quarter ending September 30, 2008, 25,572 tonnes of ore from the Beaufor Mine were processed at an average recovered grade of 9.73 g/t, and 8,002 ounces of gold were sold at an average price of US$922 (CAN$939) per ounce, Louvem's share was 4,001 ounces. In the same quarter the prior year, 13,934 tonnes of ore were processed at an average recovered grade of 8.40 g/t, and 3,761 ounces of gold were sold at an average price of US$677 (CAN$728) per ounce, Louvem's share was 1,880 ounces.

The cash cost per ounce was US$452 (CAN$460) during the current quarter compared with US$533 (CAN$573) in the same quarter last year, when the mine was shut down for a portion of the quarter, and is in line with the Company's forecasted production cash cost of US$450 to US$500 per ounce.

Exploration Efforts: As reported by the Company on October 1st, 2008, the Beaufor Mine is conducting exploration drilling to identify opportunities to extend the mine below current mining operations, at a maximum depth of 630 metres. In the third quarter, 6,912 metres were added to the 9,871 metres of the first semester for a total of 16,783 metres drilled in 2008 in this area. The objective is to complete 22,000 metres this year, evaluate the potential of the zones discovered last year and identify new resources. At the beginning of year 2009, an updated resource calculation for this area will be prepared with all the information available as of December 31, 2008.

Nine-Month Review

For the nine-month period ended September 30, 2008, revenue was $11,633,026, or 38% above revenue of $8,433,442 during the same period of 2007, reflecting increased gold sale prices per ounce as well as the increase of gold ounces sold. In the 2008 nine-month period, 12,353 ounces of gold were sold at an average price of US$919 (CAN$936) per ounce, compared with 11,284 ounces of gold sold in the first nine months of 2007 at an average price of US$689 (CAN$741) per ounce.

Operating costs, for the nine-month period ended September 30, 2008 were $5,975,724, up $454,651 over operating costs of $5,521,073 during the same period last year primarily due to the increase of 9.5% in production at the Beaufor Mine.

Exploration and project evaluation costs were $1,031,771 during the nine-month period ended September 30, 2008, compared with $424,127 during the same period in 2007. The increase is mainly due to the costs associated to the ongoing exploration program being done at the Beaufor Mine and to the reclassification, for fiscal planning purposes of exploration tax credits of $214,565 pertaining to prior years when in the nine-month period ended September 30, 2007 exploration credits of $253,056 were recorded against the exploration expense.

Net earnings for the nine-month period ended September 30, 2008 were $2,760,293 or $0.11 per share, compared with net earnings of $529,223, or $0.02 per share during the nine-month period ended September 30, 2007.

Beaufor Mine

During the nine-month period ended September 30, 2008, 85,331 tonnes of ore were processed from the Beaufor Mine at an average recovered grade of 9.01 g/t, and 24,707 ounces of gold were sold at an average price of US$919 (CAN$936) per ounce, Louvem's share was 12,353 ounces. For the nine-month period ended September 30, 2007, 83,508 tonnes of ore were processed at an average recovered grade of 8.41 g/t, and 22,569 ounces of gold were sold at an average price of US$689 (CAN$741) per ounce, Louvem's share was 11,284 ounces. For the first nine months of 2008 the average cash cost per ounce of gold was US$475 (CAN$484) which reflects an increase in US dollars when compared to the average cash cost per ounce of gold of US$455 (CAN$489) for the same period in 2007, due to variation in the Canadian dollar and an increase in mining and milling costs but was offset by the increase in the recovered grade.

Outlook

In spite of the challenges touching the mining industry concerning mainly the increase in cost of manpower and raw material, Louvem is pleased with the operating improvements at the Beaufor Mine and remains confident about the exploration potential on this property. The Company has no hedging contract on gold and currency.

Jean-Guy Rivard

President and Chief Executive Officer

About Louvem Mine Inc.

The Company has a 50% interest in the Beaufor Mine and owns other exploration properties located near Val-d'Or, in North-western Quebec, Canada.

More information on Louvem Mines can be found on its website at: www.louvem.com.

KEY FINANCIAL DATA
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                                  Three-month period      Nine-month period
                                  ended September 30     ended September 30
                                     2008       2007        2008       2007
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Results ($)
Revenues                        3,791,438  1,407,223  11,633,026  8,433,442
Net earnings (loss)               878,640   (227,729)  2,760,293    529,223
Cash flow (used in) from
 operations                     1,529,203   (247,226)  4,275,202  2,610,488

Results per share ($)
Net earnings (loss) basic            0.03      (0.01)       0.11       0.02

Weighted average number of
 common shares outstanding     25,929,689 25,929,689  25,929,689 25,929,689
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                                  September 30, 2008      December 31, 2007
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Financial position ($)
Total assets                               8,332,017              4,777,562
Working capital                            4,993,363              1,817,690
Long term debt                                     -                      -
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SALES AND PRODUCTION DATA
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Beaufor Mine -  50 %                 Three-month period ended September 30,
                               --------------------------------------------
                                                2008                   2007
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Gold sales (ounces)                            4,001                  1,880
Production of gold (ounces)                    3,163                  1,935
Cash cost (per ounce sold)(US$)                  452                    533
Cash cost (per ounce sold)(CAN$)                 460                    573
Average selling price (per ounce of gold)(US$)   922                    677
Average selling price (per ounce of gold)(CAN$)  939                    728
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Beaufor Mine -  50 %                  Nine-month period ended September 30,
                               --------------------------------------------
                                                2008                   2007
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Gold sales (ounces)                           12,353                 11,284
Production of gold (ounces)                   13,362                 11,200
Cash cost (per ounce sold)(US$)                  475                    455
Cash cost (per ounce sold)(CAN$)                 484                    489
Average selling price (per ounce of gold)(US$)   919                    689
Average selling price (per ounce of gold)(CAN$)  936                    741
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                Average exchange rate used for 2007: US$1 equals CAN$1.0748
                       2008 estimated exchange rate: US$1 equals CAN$1.0184

The TSX Venture Exchange accepts no responsibility for the veracity or accuracy of this news release.

Contacts

Jean-Guy Rivard
Louvem Mines Inc.
President and Chief Executive Officer
514-397-1448
514-397-8620 (FAX)
www.louvem.com