Black Bull Resources Inc.
TSX VENTURE : BBS

Black Bull Resources Inc.

August 24, 2010 08:14 ET

Black Bull Resources Inc. Announces June 30, 2010 Interim Financial Statement Results

SHELBURNE, NOVA SCOTIA--(Marketwire - Aug. 24, 2010) - Black Bull Resources Inc. (TSX VENTURE:BBS) has released its Interim Report including the Financial Statements and Management's Discussion & Analysis for the third fiscal quarter ended June 30, 2010.

The Company recorded a net and comprehensive loss for the three-month period of ($206,748) vs. ($318,621) for June 30, 2009, or ($0.002) per share vs. ($0.004) for June 30, 2009. Allowing for non-cash operating expense of $117,642 compared to $164,044 for June 30, 2009, the Company's operational cash flow was ($88,966) vs. ($153,918) for June 30, 2009. The net decrease in cash in Q3 2010 was $78,045 compared to a positive cash flow for the period ending June 30, 2009 of $323,287 when the Company sold redundant assets which generated $433,976.

On a year to date basis, the Company recorded a net and comprehensive loss of ($728,452) vs. ($2,458,843) for the nine-month period ended June 30, 2009, or ($0.008) per share vs. ($0.027). Allowing for non-cash operating expense of $370,953 compared to $1,807,166 for June 30, 2009, the Company's negative operational cash flow was ($357,364) vs. ($651,461) for June 30, 2009. The change from the previous year includes a write down of redundant capital assets of $1,250,000 to reflect the anticipated selling price of these assets, which was posted in March 2009.

"Our focus continues to be on improving our monthly sales, increase profit margins, collecting receivables on time, reducing our cash burn, and selling redundant assets." says Joseph MacDonald President and CEO, "However the Company is also focusing on sales which for the quarter totaled 1,733 tons of quartz of which 1,533 tons were damp or unprocessed material. This represents an increase of 300 tons when compared to the same period in 2009. However, uncertainly remains regarding the continuing viability of Black Bull Resources Inc."

A complete set of Black Bull's Interim Financial Statements, Notes to the Consolidated Financial Statements and Management's Discussion and Analysis for the period ended June 30, 2010 have been filed on SEDAR at www.sedar.com.

About Black Bull Resources Inc.

Black Bull Resources Inc. is a Canadian mining company based in Nova Scotia that owns the White Rock Mine near Shelburne. The mine produces a unique, bright, white, high-purity quartz, marketed under the Scotia White trademark which is used in a range of value-added, specialty products.

The White Rock Property also contains an identified resource of kaolin and mica.

Further detailed information may be obtained from the Company's website www.blackbullresources.com or corporate filings at www.SEDAR.com.

FORWARD LOOKING STATEMENTS: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation statements regarding the Company's mining properties, development results or future plans, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in mineral prices, fluctuations in currency exchange rates, uncertainties relating to the availability and costs of financing needed in the future, the capital and operating costs varying significantly from estimates, delays in the development of projects, as well as those risk factors discussed or referred to in Management's Discussion and Analysis under the heading "(Risks and Uncertainties)" and other documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Unless required by law, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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