Tamerlane Ventures loses $2.4-million in fiscal 2007

2008-04-30 04:37 ET - News Release

Mr. Ross Burns reports

TAMERLANE REPORTS FINANCIAL RESULTS FOR THE FULL YEAR 2007; COMPANY ALSO PROVIDES PINE POINT PROJECT UPDATE

Tamerlane Ventures Inc. had a net loss of $2.4-million or six cents per share, for the full year ended Dec. 31, 2007. As at Dec. 31, 2007, the company had working capital of $3.9-million. Tamerlane's consolidated financial statements, and management's discussion and analysis for the year ended Dec. 31, 2007, are available for viewing on SEDAR.

Pine Point project update

Tamerlane is also providing details regarding the current status and future plans for the Pine Point project.

Project highlights to date:

* Environmental board recommended in favour of Pine Point land and water permits;
* 2007 drill program successfully completed; 2008 drill program currently under way;
* Signed comprehensive exploration agreements with local aboriginal groups;
* Completed feasibility study and National Instrument 43-101 reserve report for R-190 deposit;
* Contracted all major components of construction and development phase;
* Secured mining leases for 16 deposits on Pine Point property.

Background

Tamerlane's Pine Point project is located in Canada's Northwest Territories, approximately 42 kilometres east of Hay River. The company controls a total area of 175 square kilometres, including both the historic Pine Point mine property as well as a contiguous property to the west originally explored by Westmin Resources. Tamerlane's Pine Point project includes more than 60 known lead-zinc deposits. The Pine Point project property is 100 per cent owned by Tamerlane Ventures, subject to a 3-per-cent net smelter return.

Updated feasibility study and National Instrument 43-101 technical report

In February, 2008, Tamerlane entered into a contract with Pincock, Allen and Holt to review Tamerlane's updated feasibility study and prepare an updated National Instrument 43-101-compliant reserve and resource technical report (see the company's news release in Stockwatch dated Feb. 11, 2008). The updated feasibility study and National Instrument 43-101 technical report will overwrite the reserves and economics of the six deposits located in close proximity to the R-190 deposit. The updated reports are based on a confirmation drilling program that began in November, 2007, for the purpose of upgrading resources on the P-499, O-556, X-25, G-03, W-85 and Z-155 deposits to the measured and indicated resource category. The resulting updated feasibility study will convert these resources to proven and probable reserve categories. The work is expected to be completed in May. At the completion of the work, new updated National Instrument 43-101 results will be announced.

Significant intersections announced from the drilling program included drill hole P499-TV2, which returned a 156.5-foot true vertical thickness of 15.19 per cent combined lead and zinc, with an interval of 92 feet of 22.66 per cent lead and zinc. Drill hole P499-TV1 also returned a significant 158-foot true vertical thickness of 25.53 per cent combined lead and zinc, including an interval of 63 feet of 33.74 per cent lead and zinc.

Pine Point development schedule

The following schedule outlines construction and development work that will take place upon commencement of the construction phase. The timeline is segmented by quarter (three-month periods) from start-up, which will begin when the company receives the necessary permits.

Environment and mitigation

As reported in Stockwatch news on Feb. 25, 2008, Tamerlane completed a two-year process of environmental assessment by the Mackenzie Valley Environmental Impact Review Board (MVEIRB), which culminated in MVEIRB's recommendation in favour of Tamerlane's application. Among other things, MVEIRB stated in its report, "It is the Review Board's opinion that the proposed development is not likely to have any significant adverse impacts on the environment or be a cause of significant public concern."

Upon approval by the Minister of Indian and Northern Affairs, Tamerlane's application for land and water use permits will proceed to the regulatory phase, where the applications will be reviewed by the Mackenzie Valley Land and Water Board (MVLWB). Tamerlane will begin construction and development immediately following regulatory approval and receipt of the necessary permits.

Project financing

Tamerlane is currently in the process of reviewing various financing proposals from financial institutions, metals traders, smelters and other end-users of lead and zinc. Financing discussions and negotiations are preliminary in nature, and no agreements have been entered into as of the date of this press release. Regarding financing for the Pine Point project, Tamerlane's fundamental policy is to secure adequate funds to meet all capital expenditures and working capital requirements through the first three months of production, after which time Tamerlane expects operating cash flows will be sufficient to maintain operations.

Human resources

In anticipation of the commencement of the construction phase of operations in 2008, Tamerlane is currently in the process of recruiting and interviewing a chief financial officer, general manager, human resources director, and engineering and geological candidates. These positions will be filled by full-time employees, adding to Tamerlane's current staff of senior geologists, engineers and project managers.

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