Comaplex Minerals Corp.
TSX : CMF

Comaplex Minerals Corp.

August 14, 2007 23:59 ET

Comaplex Minerals Corp. Announces Six Month 2007 Results and that it has Commenced with its Underground Exploration Decline

CALGARY, ALBERTA--(Marketwire - Aug. 14, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Comaplex Minerals Corp. (www.comaplex.com) (TSX:CMF) is pleased to announce its financial and operational results for the six months ended June 30, 2007.

Financial and Operational Highlights



Three Months Ended Six Months Ended
June 30 June 30
2007 2006 2007 2006
-------------------------------------------------------------------------
Financial ($000,
except $ per share)
Revenue
Mineral Division 407 528 496 608
Oil and Gas Division 759 949 1,540 1,917
Funds Flow from
Operations(1) 687 625 1,114 1,232
Per Share Basic 0.02 0.02 0.02 0.03
Per Share Diluted 0.02 0.02 0.02 0.03
Net Earnings 270 623 (441) 820
Per Share Basic 0.01 0.02 (0.01) 0.02
Per Share Diluted 0.01 0.02 (0.01) 0.02
Capital Expenditures
Mineral Division 4,468 2,468 7,169 4,762
Oil and Gas Division 81 71 123 129
Total Assets
Mineral Division 79,204 50,357
Oil and Gas Division 8,518 4,866
-------------------------------------------------------------------------
Oil and Gas Operations
Barrel of Oil Equivalent
per Day (2) 196 342 212 325
-------------------------------------------------------------------------
(1) Funds flow from operations is not a recognized measure under GAAP.



Management believes that in addition to net earnings, funds flow from
operations is a useful supplemental measure as it demonstrates the
Company's ability to generate the cash necessary to fund future growth
through capital investment. Investors are cautioned, however, that this
measure should not be construed as an indication of the Company's
performance. The Company's method of calculating this measure may differ
from other issuers and accordingly, it may not be comparable to that used
by other issuers. For these purposes, the Company defines funds flow from
operations as funds provided by operations before changes in non-cash
operating working capital items.

(2) BOE's are calculated using a conversion ratio of 6 MCF to 1 barrel of
oil. The conversion is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead and as such may be misleading if used in
isolation.

Forward-looking Information

Certain statements contained in this press release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this press release includes, but is not limited to: expected cash provided by continuing operations; future capital expenditures, including the amount and nature thereof; gold, oil and natural gas prices and demand; expansion and other development trends of the precious metal industry; business strategy and outlook; expansion and growth of our business and operations; and maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; credit risks; and other such matters.

All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and may include, without limitation: the risks of foreign operations; foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of mineral companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of precious metals and oil and natural gas prices; precious metal and oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control.

Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived therefrom. Except as required by law, Comaplex disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

The forward-looking information contained herein is expressly qualified by this cautionary statement.

General Discussion
------------------

The Company is pleased to report it's financial and operations results for the first half of 2007 and the progress it has made with regard to its exploration plans for 2007. Comaplex is especially pleased that it has succeeded in obtaining the necessary approvals and has been able to proceed with the commencement of its underground exploration decline during the first week of August. At June 30, 2007 the Company had working capital of $32,017,000 and along with the Company's funds flow is adequately financed to complete capital projects that are budgeted at approximately $18,500,000.

During the first half of 2007 Comaplex was successful in completing its financing and is continuing to proceed with its 2007 program for the Meliadine West Property.

Meliadine West Property

Exploration at the Meliadine West property was progressing well during the second quarter of 2007. The following activities have been completed or are ongoing:



- Final approvals for the underground exploration program were received
in early August and the portal excavation was initiated shortly
thereafter. Decline and underground work is anticipated to begin in
mid to late September. The underground program is scheduled to run
for approximately 9 months and is designed, among other things, to
verify the grade and continuity of the Tiriganiaq deposit and to
complete a bulk sample program;

- As of the end of the second quarter, approximately 13,000 meters of
diamond drilling had been completed on the Tiriganiaq gold deposit.
This was considerably more than expected and as a result Comaplex
will be increasing the 2007 drill program from 18,000 meters to
approximately 21,000 meters. The drill program is designed to
increase drill density to increase total resources and to upgrade
resource status in the Tiriganiaq deposit from an inferred category
to indicated status. Drill assay results from the ongoing program
have been reported in press releases as received and this will
continue for the balance of the 2007 program;

- Surface exploration targeted to attempt to find the source(s) for the
G10d garnet diamond indicator minerals on the east end of the
Meliadine West property is ongoing and will continue into the third
quarter. A gold prospecting and reconnaissance drilling program are
also being completed.

- A scoping study on the Tiriganiaq deposit is being compiled. A
completely re-engineered mine plan and costing analysis, from first
principles, is being done for the deposit.



Information with regard to the 2007 exploration program will continue to be released on a timely basis throughout the year. The Company has been pleased with the 2007 drilling results to date. Kindly refer to the 2007 press releases for detailed results. Comaplex has a 78 percent interest in the property with an option to increase to 80 percent. Mr. Doug Dumka, P.Geo., is the Chief Geologist for Comaplex and is the Senior Project Geologist and designated Qualified Person (Q.P.) for the Meliadine West Project.

During the first half of 2007 revenues from mineral operations decreased by $112,000 from the 2006 six month results. This reduction resulted mainly from a decrease in gain on sale of property and investments to $101,000 in 2007 compared to $440,000 for the 2006 six month period, offset by an increase in interest income to $352,000 from $135,000 in 2006 due to a larger cash position in 2007.

Net revenue for the oil and gas division decreased to $1,540,000 in the first half of 2007 from $1,917,000 in the first half of 2006. The decrease was primarily due to a large reduction in production volumes (offset slightly by higher commodity prices) as well as the elimination by the Alberta Government of the Alberta royalty tax credit (ARTC) effective January 1, 2007. Net revenue for the second quarter of 2007 was slightly less than the net revenue of the first quarter of 2007 due to a slight drop in commodity prices.

Natural gas liquids and natural gas production during the six months ended June 30, 2007, averaged 212 barrels of oil equivalent (BOE) per day. Total production consisted of 40 barrels per day of liquids and 1,028 MCF per day of natural gas. Average production during the corresponding 2006 six month period was 50 barrels per day of liquids and 1,652 MCF per day of natural gas. The decrease is predominantly due to normal production declines of approximately 12 percent, seasonal maintenance performed in March and April at the Company's main gas plant and a production problem relating to one of the Company's best gas producing wells. Production for the rest of 2007 is anticipated to recover with completion of the plant maintenance and the repairing of the gas well.

Natural gas prices increased on average in the first half of 2007 to $6.85 per MCF compared to an average price in the first half of 2006 of $5.25 per MCF ($7.33 per MCF in the second quarter of 2007 compared to $6.46 per MCF in the first quarter of 2007).

Natural gas and natural gas liquids production costs for the first six months of 2007 were $116,000 ($3.03 per BOE) compared to $243,000 ($3.93 per BOE) for the first six months of 2006. The decrease in 2007 over the first six months of 2006 was due mainly to increased third party plant processing fee recoveries in 2007. Production costs for the second quarter of 2007 over the first quarter of 2007 saw a large decline due to freehold mineral taxes being paid in Q1 2007 and further third party plant processing fee recoveries in Q2 2007.

General and administrative costs for mineral operations decreased to $483,000 in the first six months of 2007 compared to $534,000 in the corresponding 2006 period. The decrease was primarily due to a smaller bonus accrual and increased capitalized administrative costs. General and administrative expenses were lower in the second quarter of 2007 than the first quarter of 2007 due to more administrative costs being capitalized due to increased activity with the Meliadine project.

The Company paid a management fee to Bonterra Energy Corp. ("Bonterra Corp.") (Formally Comstate Resources Ltd.), a wholly owned subsidiary of Bonterra Energy Income Trust ("Bonterra"), of $150,000 (2006 - $150,000). The Company also shares office rental costs and reimburses Bonterra Corp. for costs related to employee benefits and office materials. These costs have been included in general and administrative costs. In addition Bonterra Corp. owns 689,682 (December 31, 2006 - 689,682) shares in the Company. Bonterra Corp. is the administrator for Bonterra. Services provided by Bonterra Corp. include executive services (president and vice president, finance duties), accounting services, oil and gas administration and office administration. All services performed are charged at estimated fair value.

Foreign exchange loss has increased significantly for June 30, 2007 to $140,000 compared to $16,000 for June 30, 2006 due to funds held in US dollars from the sale of the Mexico property in Q1 2007. These funds are held for future international or domestic expenditures in US dollars. The exchange rate decreased from 1.1546 US to CDN dollars as of March 31, 2007 to 1.0654 US to CDN dollars on June 30, 2007 (a 7% decrease from the first quarter 2007).

Stock based compensation increased to $672,000 in the first six months of 2007 from $61,000 for the first six months of 2006. The increase was due primarily to the granting of 1,818,000 stock options in October, 2006.

Depletion, depreciation and accretion expense decreased to $321,000 for the first six months of 2007 compared to $391,000 for the first six months of 2006. The decrease was due primarily to lower oil and gas production volumes in 2007. Second quarter 2007 DD&A costs were approximately the same as for the first quarter of 2007.

The Company reviews the carrying value of its mineral properties on an ongoing basis and reduces the cost of properties if it is determined that the property values are lower than the property cost. No amounts were written off in 2007 or 2006.

Comaplex has no current income tax expense. Comaplex has sufficient tax pools to ensure that no current income taxes are payable. The tax pool balances at June 30, 2007 totalled $81,046,000 and consist of the following pool balances.




Rate of
Utilization
% Amount
-------------------------------------------------------------------------
Undepreciated capital costs 10-100 $ 507,000
Foreign exploration expenses 10 921,000
Share issue costs 20 1,614,000
Earned depletion expenses (successored) 25 2,299,000
Canadian development expenditures 30 16,935,000
Non-capital loss carryforward 100 6,750,000
Canadian exploration expenditures (successored) 100 33,368,000
Canadian exploration expenditures 100 18,652,000
-------------------------------------------------------------------------



The ability to claim the above successored amounts is restricted to income from 56 percent of the Meliadine property. In addition to the above federal and provincial income tax pools, the Company has approximately $1,021,000 of attributable crown royalty deduction available to apply against Alberta taxable income.

The Company had a net loss of $441,000 for the first six months of 2007 compared to $820,000 of net income in the corresponding 2006 period. The decrease over the 2006 first half is predominantly due to a reduction in the gain on sale of investments and decreased natural gas production volumes. Also, a significant increase in stock base compensation and foreign exchange loss occurred as the Canadian dollar strengthened against the US dollar. Second quarter 2007 net earnings increased by $981,000 over the first quarter 2007 amount due primarily to increased interest income on the funds received from an equity issue late in the first quarter of 2007 and a significantly lower future income tax provision in the second quarter.

On January 1, 2007 the Company adopted the new accounting standards regarding the accounting for financial instruments. On adoption, the Company increased its investments by $3,105,000 representing the difference between recorded cost and the fair value of the investments. This adjustment resulted in a further increase in the future income tax liability and accumulated other comprehensive income of $510,000 and $2,595,000 respectively. Other comprehensive income for the first half of 2007 included an increase in the unrealized gain on investment of $718,000 net of $122,000 in income tax and a transfer of a realized gain on investment to net income of $80,000 net of $14,000 in income tax.

Funds flow from operations decreased in the first six months of 2007 to $1,114,000 from $1,232,000 for the 2006 comparable period. The decrease was due primarily to decreased oil and gas revenue offset by increased interest revenue. Quarter over quarter saw an increase of $260,000 due to higher interest income.

The following reconciliation compares funds flow to the Company's cash flow from operating activities as calculated according to Canadian generally accepted accounting principles:



Six Months Ended June 30 2007 2006
-------------------------------------------------------------------------
Cash flow from operating activities $ 1,396,000 $ 1,766,000
Items not affecting funds flow
Accounts receivable 421,000 (203,000)
Prepaid expenses 21,000 (198,000)
Accounts payable and accrued liabilities (735,000) (133,000)
Asset retirement obligations settled 11,000 -
-------------------------------------------------------------------------
Funds flow for the period $ 1,114,000 $ 1,232,000
-------------------------------------------------------------------------


At June 30, 2007, the Company had a working capital position of $32,017,000 (December 31, 2006 - $10,308,000). The Company completed a private placement on March 23, 2007 resulting in the issuance of 6,000,000 common shares at a price of $4.45 per common share for gross proceeds of $26,700,000. The Company paid a commission of 5.75 percent of the gross proceeds ($1,535,000) plus legal, accounting and commission costs of approximately $208,000.

The Company currently has a projected capital expenditure budget of $17,500,000 for the Meliadine West and East projects. A further $200,000 is planned to be spent on miscellaneous other mineral exploration plays in 2007. In addition, Comaplex has been informed by the operator of the Garrington Elkton property that the Company's share of a proposed capital program will be approximately $800,000. This program was delayed in 2006 and has been budgeted for 2007. All planned expenditures will be funded from existing working capital, anticipated cash flow from oil and gas operations and investment income.

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

Additional information relating to the Company may be found on WWW.SEDAR.COM and by visiting our website at www.comaplex.com.

COMAPLEX MINERALS CORP.


CONSOLIDATED BALANCE SHEETS



-------------------------------------------------------------------------
As at June 30, 2007 (unaudited) and December 31, 2006
2007 2006
-------------------------------------------------------------------------
ASSETS
Current
Cash $26,064,000 $ 4,759,000
Accounts receivable 783,000 362,000
Prepaid expenses 172,000 151,000
Investments (for December 31, 2006 recorded
at cost;
Market value - $5,637,000) (Note 2) 6,334,000 2,532,000
-------------------------------------------------------------------------
33,353,000 7,804,000
-------------------------------------------------------------------------
Future Income Tax Asset 3,484,000 4,261,000
-------------------------------------------------------------------------
Property and Equipment
Mineral properties 49,384,000 43,668,000
Petroleum and natural gas properties and
related equipment 8,599,000 8,485,000
Other 229,000 221,000
Accumulated depletion, depreciation and
amortization (7,327,000) (7,021,000)
-------------------------------------------------------------------------
50,885,000 45,353,000
-------------------------------------------------------------------------
$87,722,000 $57,418,000
-------------------------------------------------------------------------

LIABILITIES

Current

Accounts payable and accrued liabilities $ 1,336,000 $ 601,000
Asset Retirement Obligations 591,000 588,000
-------------------------------------------------------------------------
1,927,000 1,189,000
-------------------------------------------------------------------------

SHAREHOLDERS' EQUITY

Share capital (Note 3) 71,368,000 44,922,000
Contributed surplus 2,012,000 1,684,000
-------------------------------------------------------------------------
73,380,000 46,606,000
-------------------------------------------------------------------------
Retained earnings 9,182,000 9,623,000
Accumulated other comprehensive income
(Note 4) 3,233,000 -
-------------------------------------------------------------------------
12,415,000 9,623,000
-------------------------------------------------------------------------
85,795,000 56,229,000
-------------------------------------------------------------------------
$87,722,000 $57,418,000
-------------------------------------------------------------------------

COMAPLEX MINERALS CORP.

CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS

-------------------------------------------------------------------------
For the periods ended June 30 (unaudited)
Three Months Six Months
2007 2006 2007 2006
-------------------------------------------------------------------------
REVENUE

Minerals Division

Interest $ 285,000 $ 72,000 $ 352,000 $ 135,000
Gain on sale of
property and
investments 94,000 440,000 101,000 440,000
Mineral production
royalty 28,000 16,000 43,000 33,000
-------------------------------------------------------------------------
407,000 528,000 496,000 608,000
-------------------------------------------------------------------------

Oil and Gas Division
Oil and gas sales 835,000 1,003,000 1,697,000 2,096,000
Royalties (211,000) (240,000) (382,000) (512,000)
Alberta royalty tax
credits - 45,000 - 98,000
Trust distributions
(Note 2) 135,000 141,000 225,000 235,000
-------------------------------------------------------------------------
759,000 949,000 1,540,000 1,917,000
-------------------------------------------------------------------------
1,166,000 1,477,000 2,036,000 2,525,000
-------------------------------------------------------------------------

EXPENSES

Oil and gas production
costs 8,000 93,000 116,000 243,000
General and
administrative
Minerals division 214,000 274,000 483,000 534,000
Oil and gas division 44,000 30,000 82,000 60,000
Foreign exchange
loss 119,000 15,000 140,000 16,000
Stock based
compensation 347,000 22,000 672,000 61,000
Depletion,
depreciation and
accretion 165,000 213,000 321,000 391,000
-------------------------------------------------------------------------
897,000 647,000 1,814,000 1,305,000
-------------------------------------------------------------------------
Earnings Before Taxes 269,000 830,000 222,000 1,220,000
-------------------------------------------------------------------------
Income Taxes (Recovery)
Current - - - -
Future (1,000) 207,000 663,000 400,000
-------------------------------------------------------------------------
(1,000) 207,000 663,000 400,000
-------------------------------------------------------------------------
Net Earnings (Loss)
for the Period 270,000 623,000 (441,000) 820,000
Retained earnings,
beginning of period 8,912,000 7,736,000 9,623,000 7,539,000
-------------------------------------------------------------------------
Retained Earnings,
End of Period $ 9,182,000 $ 8,359,000 $ 9,182,000 $ 8,359,000
-------------------------------------------------------------------------
Net Earnings Per
Share - Basic $ 0.01 $ 0.02 ($0.01) $ 0.02
-------------------------------------------------------------------------
Net Earnings Per
Share - Diluted $ 0.01 $ 0.02 ($0.01) $ 0.02
-------------------------------------------------------------------------

COMAPLEX MINERALS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

-------------------------------------------------------------------------
For the periods ended June 30 (unaudited)
Three Months Six Months
2007 2007
-------------------------------------------------------------------------
Net earnings (loss) for the period $ 270,000 ($441,000)
-------------------------------------------------------------------------
Unrealized gains on investments (net of tax;
Three Months ended - $92,000, Six Months
ended - $122,000) 543,000 718,000
Realized gains on investments transferred to
net earnings (net of tax; Three Months
ended - $14,000, Six Months ended - $14,000) (80,000) (80,000)
-------------------------------------------------------------------------
Changes in unrealized gains and losses on
available-for-sale financial assets 463,000 638,000
-------------------------------------------------------------------------
Other comprehensive income 463,000 638,000
-------------------------------------------------------------------------
Comprehensive income $ 733,000 $ 197,000
-------------------------------------------------------------------------

COMAPLEX MINERALS CORP.

CONSOLIDATED STATEMENTS OF CASH FLOW

-------------------------------------------------------------------------
For the periods ended June 30 (unaudited)
Three Months Six Months
2007 2006 2007 2006
-------------------------------------------------------------------------
OPERATING ACTIVITIES
Net earnings (loss)
for the period $ 270,000 $ 623,000 ($441,000) $ 820,000
Items not affecting
cash
Gain on sale of
property and
investments (94,000) (440,000) (101,000) (440,000)
Stock based
compensation 347,000 22,000 672,000 61,000
Depletion,
depreciation and
accretion 165,000 213,000 321,000 391,000
Future income
taxes (recovery) (1,000) 207,000 663,000 400,000
-------------------------------------------------------------------------
687,000 625,000 1,114,000 1,232,000
-------------------------------------------------------------------------
Change in non-cash
operating working
capital

Accounts receivable (282,000) 37,000 (421,000) 203,000

2 Prepaid expenses 31,000 248,000 (21,000) 198,000

Accounts payable and
accrued liabilities 299,000 242,000 735,000 133,000

Asset retirement
obligations settled (3,000) (17,000) (11,000) -
-------------------------------------------------------------------------
45,000 510,000 282,000 534,000
-------------------------------------------------------------------------
Cash Provided By
Operating Activities 732,000 1,135,000 1,396,000 1,766,000
-------------------------------------------------------------------------
FINANCING ACTIVITIES
Issue of shares
pursuant to private
placement - - 26,700,000 -
Issue of shares under
employee stock option
plan - 40,000 638,000 40,000
Share issue costs - - (1,743,000) -
-------------------------------------------------------------------------
Cash Provided By
Financing Activities - 40,000 25,595,000 40,000
-------------------------------------------------------------------------
INVESTING ACTIVITIES
Mineral exploration,
property and
equipment
expenditures (4,468,000) (2,468,000) (7,169,000) (4,762,000)
Mineral exploration
property and
equipment disposals - - 1,463,000 -
Oil and gas property
and equipment
expenditures (81,000) (71,000) (123,000) (129,000)
Investments purchased - - - -
Investments sold 143,000 456,000 143,000 456,000
-------------------------------------------------------------------------
Cash Used In Investing
Activities (4,406,000) (2,083,000) (5,686,000) (4,435,000)
-------------------------------------------------------------------------
Net Cash Inflow
(Outflow) (3,674,000) (908,000) 21,305,000 (2,629,000)
Cash, Beginning Of
Period 29,738,000 7,709,000 4,759,000 9,430,000
-------------------------------------------------------------------------
Cash, End Of Period $26,064,000 $ 6,801,000 $26,064,000 $ 6,801,000
-------------------------------------------------------------------------
Cash Interest Paid $ - $ - $ - $ -
Cash Taxes Paid $ - $ - $ - $ -

COMAPLEX MINERALS CORP.

NOTES TO THE CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

-----------------------------------------------------

Periods ended June 30, 2007 and 2006 (unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and methods of application followed in the
preparation of the interim financial statements other than described
below are the same as those followed in the preparation of the
Company's 2006 annual financial statements. These interim financial
statements do not include all disclosures required for annual
financial statements. The interim financial statements as presented
should be read in conjunction with the 2006 annual financial
statements.

Financial instruments - recognition and measurement

On January 1, 2007, the Company adopted Section 3855 of the Canadian

Institute of Chartered Accounts' ("CICA") Handbook, "Financial
Instruments - Recognition and Measurement" and Section 3861 Financial
Instruments - Presentation and Disclosure. It sets out the standards
for recognizing and measuring financial instruments in the balance
sheet and the standards for reporting gains and losses in the
financial statements. Financial assets available for sale, assets and
liabilities held for trading and derivative financial instruments,
part of a hedging relationship or not, have to be measured as fair
value.

The Company has made the following classifications:

- Investments are classified as available-for-sale and will thus be
marked-to-market through comprehensive income at each period end.
- Accounts receivable are classified as loans and receivables and
are recorded at amortized cost using the effective interest
method. Gains and losses are recognized in net earnings when the
asset is no longer recognized.

- Accounts payable and accrued liabilities are classified as other
financial liabilities and are recorded at amortized cost using the
effective interest method. Gains and losses are recognized in net
earnings when the liability is no longer recognized.
The adoption of this Section is done retroactively without
restatement of the consolidated financial statements of prior
periods. As of January 1, 2007, the impact on the consolidated
balance sheet of measuring the investments at marked-to-market was an
increase of $3,105,000 to investments, a decrease in future tax asset
of $510,000 and an increase in accumulated other comprehensive income
of $2,595,000.

The Company selected January 1, 2003 as its transition date for
embedded derivatives. An embedded derivative is a component of a
financial instrument or another contract of which the characteristics
are similar to a derivative. This had no impact on the consolidated
financial statements.

Comprehensive income

On January 1, 2007, the Company adopted Section 1530 of the CICA
Handbook, "Comprehensive Income". It describes reporting and
disclosure recommendations with respect to comprehensive income and
its components. Comprehensive income is the change in shareholders'
equity, which results from transactions and events from sources other
than the Company's shareholders. These transactions and events
include unrealized gains and losses from changes in fair value of

certain financial instruments.

The adoption of this Section implied that the Company now presents a
consolidated statement of comprehensive income as a part of the
consolidated financial statements.

Equity

On January 1, 2007, the Company adopted Section 3251 of the CICA
Handbook "Equity" replacing Section 3250 "Surplus". It describes
standards for the presentation of equity and changes in equity for
reporting period as a result of the application of Section 1530
"Comprehensive Income".

Accounting changes

The Company also adopted Section 1506, "Accounting Changes," the only
impact of which is to provide disclosure of when an entity has not
applied a new source of GAAP that has been issued but is not yet
effective. This is the case with Section 3862, "Financial Instruments
Disclosures" and Section 3863, "Financial Instruments Presentations"
which are required to be adopted for fiscal years beginning on or
after October 1, 2007. The Company will adopt these standards on
January 1, 2008 and it is expected the only effect on the Company
will be incremental disclosures regarding the significance of
financial instruments for the entity's financial position and
performance; and the nature, extent and management of risks arising
from financial instruments to which the entity is exposed.

2. RELATED PARTIES

The Company paid a management fee to Bonterra Energy Corp. (Bonterra
Corp) (a wholly owned subsidiary of Bonterra Energy Income Trust
(Bonterra Trust) a publicly traded oil and gas income trust on the
Toronto Stock Exchange) a company with common directors and
management, of $150,000 (2006 - $150,000). Services provided by
Bonterra Corp include executive services (CEO and CFO duties),
accounting services, oil and gas administration and office
administration. Bonterra Corp owns 689,682 (December 31, 2006 -
689,682) common shares in the Company. Bonterra Corp is the
administrator of Bonterra Trust.

As of June 30, 2007, the Company owns 204,633 (December 31, 2006 -
204,633) units in Bonterra Trust representing approximately one
percent of the outstanding units of Bonterra Trust. The units have an
accounting cost of $5,828,000 (December 31, 2006 - $2,321,000) and a
quoted market value of $5,828,000 (December 31, 2006 - $5,233,000).
The Company received distributable income in the first six months of
2007 of $225,000 (June 30, 2006 - $235,000).

The Company also owns shares in Pine Cliff Energy Ltd. (Pine Cliff).
Pine Cliff has common directors and management with the Company. The
Company owns 277,000 (December 31, 2006 - 277,000) common shares
representing less than one percent of the total issued and
outstanding common shares of Pine Cliff. The shares have an
accounting cost of $341,000 (December 31, 2006 - $42,000) and a
quoted market value of $341,000 (December 31, 2006 - $180,000). There
have been no transactions between Pine Cliff and the Company.

3. SHARE CAPITAL

Authorized

Unlimited number of common shares without nominal or par value
Unlimited number of first preferred shares

Issued

2007
---------------------------------------------------------------------
Number Amount
---------------------------------------------------------------------
Common Shares
Balance, January 1, 2007 39,451,771 $44,922,000
Issued pursuant to private placement 6,000,000 26,700,000
Issue costs on private placement - (1,743,000)
Issued exercise of stock options 510,200 638,000
Transfer of contributed surplus to share
capital - 345,000
Future tax adjustment on share issue costs - 506,000
---------------------------------------------------------------------
Balance, June 30, 2007 45,961,971 $71,368,000
---------------------------------------------------------------------
The Basic weighted average common shares for June 30, 2007 were
44,580,230 (December 31, 2006 - 38,589,574) and the Diluted weighted
average common shares were 45,174,415 (December 31, 2006 -
41,875,187).

The Company provides a stock option plan for its directors, officers,
employees and consultants. Under the plan, the Company may grant
options for up to 10 percent of the outstanding common shares which
as of June 30, 2007 was 4,596,197. The exercise price of each option
granted equals the market price of the Company's stock on the date of
grant and the option's maximum term is five years. Options vest one-
third each year for the first three years of the option term.

A summary of the status of the Company's stock option plan as of
June 30, 2007 and December 31, 2006 and changes during the six months
ended June 30, 2007 and year ending December 31, 2006 is presented
below:

June 30, 2007 December 31, 2006
-------------------------------------------------------------------------
Weighted- Weighted-
Average Average
Exercise Exercise
Options Price Options Price
-------------------------------------------------------------------------
Outstanding at
beginning of period 2,397,200 $ 2.77 1,468,000 $ 1.34
Options issued 183,000 4.67 1,827,000 3.20
Options exercised (510,200) 1.25 (882,800) 1.25
Options cancelled (24,000) 3.20 (15,000) 4.00
-------------------------------------------------------------------------
Outstanding at end
of period 2,046,000 $ 3.31 2,397,200 $ 2.77
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Options exercisable at
end of period 44,500 $ 2.79 530,200 $ 1.30
-------------------------------------------------------------------------
-------------------------------------------------------------------------
The following table summarizes information about options outstanding
at June 30, 2007:
Options Outstanding Options Exercisable
-------------------------------------------------------------------------
Weighted-
Average Weighted- Weighted-
Range of Number Remaining Average Number Average
Exercise Outstanding Contractual Exercise Exercisable Exercise
Prices At 06/30/07 Life Price At 06/30/07 Price
-------------------------------------------------------------------------
$2.70 60,000 2.7 years $2.70 40,000 $2.70
3.20 to 3.60 1,833,000 2.6 years 3.20 4,500 3.60
4.70 to 5.00 153,000 3.5 years 4.96 - -
-------------------------------------------------------------------------
$2.70 to 5.00 2,046,000 2.7 years $3.31 44,500 $2.79
-------------------------------------------------------------------------
-------------------------------------------------------------------------
The Company records a compensation expense over the vesting period
based on the fair value of options granted to employees, directors
and consultants.

4. ACCUMULATED OTHER COMPREHENSIVE INCOME

Six months ended June 30, 2007
Other
Comprehensive
Opening Income Ending
Unrealized gains and losses on
available-for-sale financial
assets $ 2,595,000 $ 638,000 $ 3,233,000
---------------------------------------------------------------------

5. BUSINESS SEGMENT INFORMATION

The Company's activities are represented by two industry segments
comprised of mineral exploration and oil and gas production:
Three months ended Six months ended
June 30 June 30
2007 2006 2007 2006
Gross revenue
Mineral
exploration $ 407,000 $ 528,000 $ 496,000 $ 608,000
Oil and Gas 970,000 1,144,000 1,922,000 2,331,000
------------ ------------ ------------ ------------
$ 1,377,000 $ 1,672,000 $ 2,418,000 $ 2,939,000
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

Depletion,
depreciation,
accretion, and
abandonment
Mineral
exploration $ 33,000 $ 32,000 $ 66,000 $ 61,000
Oil and Gas 132,000 181,000 255,000 330,000
------------ ------------ ------------ ------------
$ 165,000 $ 213,000 $ 321,000 $ 391,000
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Net earnings (loss)
Mineral
exploration $ (156,000) $ 139,000 $(1,213,000) $ 13,000
Oil and Gas 426,000 484,000 772,000 807,000
------------ ------------ ------------ ------------
$ 270,000 $ 623,000 $ (441,000) $ 820,000
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Property and
equipment
expenditures
Mineral
exploration $ 4,468,000 $ 2,468,000 $ 7,169,000 $ 4,762,000
Oil and Gas 81,000 71,000 123,000 129,000
------------ ------------ ------------ ------------
$ 4,549,000 $ 2,539,000 $ 7,292,000 $ 4,891,000
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Total assets (2006 amounts as of
December 31, 2006)
Mineral exploration $79,204,000 $52,475,000
Oil and Gas 8,518,000 4,943,000
------------ ------------
$87,722,000 $57,418,000
------------ ------------
------------ ------------



%SEDAR: 00001166E

Contact Information

  • Comaplex Minerals Corp.
    George F. Fink
    President, and CEO
    (403) 265-2846
    Fax: (403) 265-7488

    Comaplex Minerals Corp.
    Garth E. Schultz
    Vice President - Finance, and CFO
    (403) 265-2846
    Fax: (403) 265-7488

    Comaplex Minerals Corp.
    Mark J. Balog
    Vice President - Exploration
    (403) 265-2846
    Fax: (403) 265-7488