MDN/Results for the Third Quarter Ended September 30, 2008: Net Earnings of $5.1 Million or $0.056 Per Share: Financial News

MDN/Results for the Third Quarter Ended September 30, 2008: Net Earnings of $5.1 Million or $0.056 Per Share
Thursday November 13, 2008 9:08 am ET

MONTREAL, QUEBEC--(MARKET WIRE)--Nov 13, 2008 -- MDN Inc. ("MDN") (Toronto:MDN.TO - News) released today its financial statements for the three month period ended September 30, 2008. Management Discussions and Analysis and the interim financial statements are available on the Company Website (www.mdn-mines.com) and on SEDAR (www.sedar.com).

Highlights - Third Quarter ended September 30, 2008

- Revenue was $6,115,879 compared to $377,326 for the same period in 2007.

- Net income was $5,132,751 or $0.056 per share compared to a net loss of $1,975,929 or $0.023 per share for the same period in 2007.

- The Tulawaka Gold Mine in Tanzania produced 53,694 ounces of gold with an average grade of 17.8 g/t at a recovery rate of 96.2%. MDN's 30% participation in the Tulawaka project results in its share being equal to 16,108 ounces of gold.

- Total cash costs to produce an ounce of gold were US$231.

- The Tulawaka Gold Mine sold 60,945 ounces of gold on the "spot" market at an average price of US$865 per ounce, generating gross income of US$52.7M. The MDN share (30%) is equal to 18,284 ounces of gold sold for a gross income of US$15.8M.

- MDN exercised its rights to dilute the total interest of each of Lakota (15%) and Jope (15%) to nil, in the Isambara project, in Tanzania. Lakota and Jope's interests are converted into a 1% (NSR). The Isambara project is part of the Simba property and is now 100% owned by MDN.

- Under the terms of the July 31, 2008 Warrant Exchange Offer completed on September 18, 2008 MDN cancelled 19 million warrants representing a shareholder potential dilution of more than 20%. These warrants were tendered against the issue of 5,069,174 common shares.

- On September 11, 2008, Marc Boisvert, P.Eng, was appointed as Vice-President Exploration of MDN.

 

SUMMARY OF OPERATING RESULTS

For the three months ended September 30              2008       2007
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(In thousands of dollars, except
 per-share amounts)

Revenue                                            $6,116       $377
Administrative expenses                            $1,016       $905
Royalties on the price of gold                         $-     $1,695
Foreign exchange loss                                $(33)      $248
Net income (loss)                                  $5,133    $(1,976)
Basic and diluted net earnings (loss) per share    $0.056    $(0.023)
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Weighted-average number of shares outstanding
 (in thousands)                                    91,580    86,850
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SUMMARY OF TULAWAKA GOLD MINE'S RESULTS

For the three months ended September 30, 2008      100%    30% (MDN)
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Gold Production (ounces)                        53,694       16,108
Gold Sales  (ounces)                            60,945       18,284
Average Selling Price / ounce (in US $)            865          865
Total Revenues  (in millions US $)                52.7         15.8
Production Cost / ounce (in US $)                  231          231

Subsequent events

On October 4, 2008, a total of 8.4 million warrants issued on April 2007 in connection with a private placement, with an exercise price of $1.60 expired unexercised. There are currently 95.3 million common shares of MDN issued and outstanding or 102 million common shares on a fully diluted basis.

On October 6, 2008 MDN accepted and announced the resignation of Mr. Gilbert Playford as a MDN director and board member. The current MDN board of directors is composed of Serge Savard, Jacques Bonneau, Raymond Legault, Louis-Marie Riopel and Paul-A. Girard. The board decided to not immediately fill the vacant position, but to review the various qualifications of the nominees in due course.