Black Bull Resources Inc.

Black Bull Resources Inc.

November 08, 2007 09:37 ET

Black Bull Resources Inc. Announces September 30, 2007-Annual Financial Statement Release

SHELBURNE, NOVA SCOTIA--(Marketwire - Nov. 8, 2007) - Black Bull Resources Inc. (TSX VENTURE:BBS) has released the Audited Financial Statements and Management Discussion & Analysis (MD&A) for the year ended September 30, 2007.

The Company reports a net loss for the year of $2,851,427 ($3,001,754 in 2006) or $0.045 per share ($0.068 in 2006). Net sales of $169,874 ($130,558 in 2006) were primarily of Scotia White™ quartz to the southern U.S.A. The Company recorded $610,506 ($670,790 in 2006) in non-cash operating items resulting in a net cash loss from operations of $2,240,921 ($2,330,964 in 2006) or $0.035 per share ($0.053 in 2006).

During the fourth quarter, the Company reports a net loss of $892,227 ($891,613 in 2006) or $0.014 per share ($0.020 in 2006). Net sales for this quarter were $61,990 ($103,085 in 2006). The Company recorded $236,866 ($193,904 in 2006) in non-cash operating items resulting in a net cash loss from operations of $655,361 ($697,709 in 2006) or $0.010 per share ($0.016 in 2006).

As reported in the Financial Statement Notes and MD&A, the Company began directly selling its Scotia White™ quartz in January 2007 leading to the resumption of operations in April. Despite the down turn in the US housing market, efforts to date have resulted in a wider variety of Scotia White™ products being sold to an increased customer base, mainly focused in the in-ground swimming pool and engineered stone industries. The Company continues to expand product and geographic market segments, and management feels the Company is poised for sales growth in 2008.

During the past year, Black Bull raised an additional $6.5 million in equity financing. The Company will be investing $1.8 million of these funds over the next 6 months to efficiently meet the expected demand and to continue reducing production costs. This will be allocated to expanding the plant footprint, completing equipment upgrades and configurations, and upgrading its packaging, storage, and loading facilities.

"Fiscal 2008 is an important year for Black Bull," said Rick Shearer, President & CEO. "We have received significant interest across many markets for the Scotia White™ quartz products produced from our world-class deposit in East Kemptville, Nova Scotia. We aim to bring the volumes to levels that will produce positive cash flow. To achieve this, we are continuing to develop new marketing materials and presentations, as well as initiating relationships with new distributors, and building new market niches."

About Black Bull Resources Inc.

Black Bull Resources Inc. is a Canadian mining company based in Nova Scotia that operates 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 which the Company plans to further develop when quartz operations become cash-flow positive.

Further detailed information may be obtained from the Company's website or corporate filings at

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. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed elsewhere in documents that are available to the public.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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