Comaplex Minerals Corp.
TSX : CMF

Comaplex Minerals Corp.

February 25, 2008 23:59 ET

Comaplex Minerals Corp. Announces Three Month 2008 Results

CALGARY, ALBERTA--(Marketwire - Feb. 25, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Comaplex Minerals Corp. ("the Company" or "Comaplex") (www.comaplex.com) (TSX:CMF) is pleased to announce its financial and operational results for the three months ended March 31, 2008.



FINANCIAL AND OPERATIONAL HIGHLIGHTS



2008 2007 2007
1st Quarter 4th Quarter 1st Quarter
-------------------------------------------------------------------------
Financial ($000, except $ per share)
Revenue
Mineral Division 192 282 89
Oil and Gas Division 789 818 781
Funds Flow from Operations(1) 488 567 427
Per Share Basic 0.01 0.01 0.01
Per Share Diluted 0.01 0.01 0.01
Net Earnings (Loss) 98 2,854 (711)
Per Share Basic 0.00 0.06 (0.02)
Per Share Diluted 0.00 0.06 (0.02)

Capital Expenditures

Mineral Division 8,449 3,686 2,701
Oil and Gas Division 18 38 42

Total Assets

Mineral Division 89,777 89,930 78,310
Oil and Gas Division 7,777 7,269 8,006
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Oil and Gas Operations
Barrel of Oil Equivalent per day(2) 186 207 227
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(1) Funds flow from operations is not a recognized measure under GAAP.

Management believes that in addition to cash flow from operations, funds
flow from operations is a useful supplemental measure as it demonstrates
the Company's ability to generate the funds 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 foreign exchange,
changes in non-cash operating working capital items and asset retirement
expenditures.

(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, statements 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 exchange fluctuations; 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 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.

In particular, the Company's largest project, the 'Meliadine West Gold Project', faces risks which are common to all projects in the current economic climate, particularly in the Arctic. These include sliding schedules due to weather delays, labour and equipment shortages, available technical expertise, and contractor production rates not meeting expectations. Additional risks include those inherent in reconciliation between bulk sample and diamond drill programs and resource estimations based on those programs. Non-technical issues, such as variation in commodity prices may impact the Company's ability to raise capital and influence project economics.

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 so, what benefits will be derived there from. 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 its financial and operational results for the first quarter of 2008 and the progress it has made with regard to its exploration plans for 2008. At March 31, 2008 the Company had working capital of $16,261,000 and along with the Company's funds flow is adequately financed to complete 2008 capital projects that are budgeted at approximately $17,750,000.

During the first quarter of 2008, Comaplex's projects were mainly focused on the Meliadine West and Meliadine East properties. The Company is pleased with the progress that is being made in these properties and is optimistic with regard to how, in the future, it will contribute to shareholder value.

Meliadine West Property

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




- The underground exploration and bulk sampling program on the
Tiriganiaq gold deposit continued through the quarter. Access to the
1100 mineralized lode at approximately 70 meters below surface has
been achieved and round by round sampling of the mineralization is
ongoing. The ramp construction is continuing and access to the 1000
mineralized lode is expected in late June with sampling to commence
shortly thereafter. The underground exploration program is expected
to be completed some time in the early fall.

- A new NI43-101 compatible technical report resource estimate for the
Tiriganiaq gold deposit was announced in January, 2008. The new
resource estimate indicates a resource of 1,788,000 ounces gold in
the indicated category and 1,385,000 ounces in the inferred category
for the Tiriganiaq deposit.

- Planning has been completed for a proposed 25,000 meter diamond drill
program in 2008. The drilling will mainly target the deeper portions
of the Western Deeps area of the Tiriganiaq deposit. A total of
3 drills will be used and the first drilling commenced in mid April.

- The movement of fuel and supplies to the site is ongoing and will
continue until breakup some time in May.

- Work on an external scoping study for the Tiriganiaq deposit was

ongoing through the quarter and plans are to finish the study in the
early summer. This study will provide information that will greatly
assist in determining the overall economics, the potential rate of
production and the type of mine and mining methods that may
potentially be used.



Comaplex has a 78 percent interest in the Meliadine West 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.

Meliadine East Property

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



- A new NI43-101 compatible resource estimate for the Discovery gold
deposit was initiated by 50% partners Meliadine Resource Ltd. late in
2007 and provided to Comaplex for public release on January 9, 2008.
The study was completed by Pincock, Allen, and Holt of Denver,
Colorado. The study estimated 259,000 ounces gold in the indicated
category and 148,000 ounces of inferred resources.

- A $2.5 million exploration program is planned on the Meliadine East
property for 2008 and will consist predominantly of drilling on and
near the Discovery gold deposit. This project will be completed in
the summer.



Information with regard to these programs will continue to be released on a timely basis throughout the year.

The Company is presently reviewing options with regard to a financing to assist in paying for future requirements to further evaluate the Meliadine property.

Financial and Operational Discussion

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

Gross revenue from the Company's mineral division totaled $192,000 for the first quarter of 2008 compared to $89,000 for the first quarter of 2007. The increase was primarily due to an increase in interest income from a higher average cash balance for the first quarter of 2008. Gross revenue for the first quarter of 2008 decreased by $90,000 over the fourth quarter of 2007. Of this amount, $64,000 related to lower interest earned on average fund balances and another $41,000 decrease related to a gain on sale of investments that occurred in Q4 2007.

Gross revenue from the Company's petroleum and natural gas properties increased to $922,000 in the first quarter of 2008 from $862,000 in the first quarter of 2007. The increase was primarily due to a 23% increase in commodity prices for natural gas, which was offset by decreased production volumes. Gross revenue quarter over quarter increased by approximately $76,000 due to lower commodity prices in Q4 2007.

Natural gas liquid and natural gas production during the three months ended March 31, 2008, averaged 186 barrels of oil equivalent (BOE) per day. Total production consisted of 43 barrels per day of liquids and 860 MCF per day of natural gas. Average production during the corresponding 2007 three month period was 227 BOE consisting of 46 barrels per day of liquids and 1,086 MCF per day of natural gas. The Company anticipates approximately 12 percent annual decline rates. The decline rate for Q1 2008 was approximately 18 percent. The higher decline rate was attributed specifically to one of the Company's more significant non-operated gas properties. The Company is currently in discussions with the operator to determine the nature of the production decline and what plans they have in place to remediate any problems that may exist. Further updates will be provided in future quarterly reports.

Natural gas prices increased to an average of $7.94 per MCF in 2008 compared to $6.46 per MCF in the first quarter of 2007 and $6.19 in the fourth quarter of 2007. Liquid prices increased in the first quarter of 2008 to $77.69 from $58.00 in the corresponding 2007 period, which was also higher than the $73.55 received in the fourth quarter of 2007.

Royalties consist of Crown royalties of $179,000 (Q1 2007 - $117,000) paid to the Province of Alberta and gross overriding royalties of $46,000 (Q1 2007 - $54,000). The increase in Crown royalties in Q1 2008 is due to higher commodity prices. The decrease in gross overriding royalties is due to lower production volumes on the wells subject to gross overriding royalties, which more than offset higher commodity prices. Royalties for Q4 2007 consist of $152,000 Crown royalties and $56,000 in gross overriding royalties. The increase in Crown royalties and the decrease in gross overriding royalties in Q1 2008 over Q4 2007 are due to the same factors.

Based on information currently available to management, the Alberta royalty review will increase future Crown royalties to approximately 20% (2007 - 16.9%) of production revenue, which under current volumes could increase Crown royalties by approximately $100,000 per annum.

Trust distribution income from Bonterra Energy Income Trust ("Bonterra") for Q1 2008 amounted to $92,000 compared to $90,000 in Q1 2007. Trust distribution income for Q4 2007 amounted to $180,000. The decrease was due to four distributions in Q4 2007 compared to only two distributions being declared in Q1 2008. This is a normal event at year ends for income from Trust distributions.

General and administrative costs for mineral operations increased to $323,000 in the first three months of 2008 compared to $269,000 in the corresponding 2007 period. The increase was primarily due to an increase in the number of employees required to administer the increased operational demands. On a quarter over quarter basis, general and administrative costs increased by $51,000 from $272,000 in the fourth quarter of 2007. The increase from the 2007 Q4 amount was primarily due to increased employee compensation and benefit expenses, annual report related expenditures, and bank charges related to the renewal of the letter of credit that has been provided to guarantee funds for future site reclamation on the Meliadine property.

Natural gas and natural gas liquid production costs for the first quarter of 2008 were $166,000 ($9.82 per BOE) compared to $108,000 ($5.27 per BOE) for the first quarter of 2007 and $205,000 ($10.77 per BOE) for the fourth quarter of 2007. The Q1 2008 increase over the first quarter of 2007 was due mainly to decreased revenue from third party plant processing fees. The decrease in the first quarter of 2008 production costs over the fourth quarter of 2007 is due to $128,000 processing fee adjustments in Q4 2007 related to previous quarters, which was offset by the accrual of $50,000 of freehold mineral tax in the first quarter of 2008.

General and administrative costs related to oil and gas activities increased marginally to $51,000 in Q1 2008 from $38,000 in Q1 2007 and $14,000 Q4 2007. The increase from both periods is due to the higher than anticipated costs in respect of the preparation of the independent oil and gas engineering report.

Foreign exchange gain increased to $47,000 in Q1 2008 from a foreign exchange loss of $21,000 Q1 2007. The gain and loss of foreign exchange results from approximately $1.3 million US funds held in an interest bearing cash account. As the Canadian dollar depreciated against the US dollar in the first quarter of 2008, it created a foreign exchange gain, compared to the appreciation of the Canadian dollar in 2007.

Stock based compensation is a statistically calculated value representing the estimated expense of issuing employee stock options. The Company records a compensation expense over the vesting period based on the fair value of options granted to employees, directors and consultants. No employee stock options were issued during the first quarter of 2008. Stock based compensation decreased to $214,000 in the first quarter of 2008 from $325,000 and $247,000 for the first and fourth quarters of 2007 respectively. The decrease was due primarily to the granting of 1,818,000 stock options in October, 2006, with the majority of the stock based compensation being recognized in the first year after issuance.

Depletion, depreciation and accretion expense decreased to $102,000 for the first quarter of 2008 compared to $156,000 for the first quarter of 2007. The decrease was due primarily to lower oil and gas production volumes and increased reserves on one of the Company's major producing gas properties resulting from the December 31, 2007 independent engineering report. Also, depreciation of tangible assets decreased due to some of the assets being fully depreciated. Quarter over quarter saw a marginal decrease of $5,000. No mineral property abandonment costs were incurred in the quarter. 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.

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 March 31, 2008 totalled $96,302,000 and consist of the following pool balances.




Rate of
Utilization Amount
% ($000)
-------------------------------------------------------------------------
Undepreciated capital costs 10-100 554
Foreign exploration expenditures 10 851
Share issue costs 20 1,563
Earned depletion expenses (successored) 25 2,299
Canadian development expenditures 30 17,772
Non-capital loss carryforward (expires 2010) 100 6,395
Canadian exploration expenditures (successored) 100 33,368
Canadian exploration expenditures 100 33,500
-------------------------------------------------------------------------
96,302
-------------------------------------------------------------------------



The ability to claim the above successored amounts is restricted to income from 56 percent of the Meliadine property (71.8 percent of the Company's interest).

Net earnings (loss) for the first quarter of 2008 was $98,000 compared to ($711,000) in the corresponding 2007 period and $2,854,000 in the fourth quarter of 2007. The increase from the 2007 first quarter is predominantly due to a decreased future income tax provision ($74,000 Q1 2008 from $664,000 Q1 2007), decreased stock based compensation provision, increased oil and gas revenues and an increase in interest income. The decrease from the fourth quarter of 2007 was due primarily to a $2,599,000 future tax benefit adjustment in the fourth quarter of 2007.

Other comprehensive income for the first quarter of 2008 included an increase in unrealized gain on investments of $529,000 net of $8,000 in income tax, compared to an increase in Q1 2007 in unrealized gain on investments of $175,000 net of $30,000 in income tax. The fourth quarter of 2007 had an unrealized loss on investments of $995,000 net of $168,000 in income tax and a realized gain on investments of $35,000 net of $6,000 in income tax, which was transferred to net income, leaving a total other comprehensive loss of $1,030,000 net of $174,000 in income tax. The differences between the marketable investments market value and its carrying value are recorded through other comprehensive income until the investments are disposed of.

Funds flow from operations increased in Q1 of 2008 to $488,000 from $427,000 for the 2007 first three month period. The increase was primarily due to increased interest income from cash funds on hand and increased oil and gas revenue, which was offset partially by increased royalties, production costs and general and administrative costs. Quarter over quarter saw a decrease of $80,000. The decrease from the fourth quarter of 2007 was primarily due to a reduction in investment income because of timing differences in distributions from investments (four distributions declared in Q4 verses two distributions in Q1) and decreased interest income from cash funds, which was partially offset by an increase in oil and gas revenue.

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





Three Months Ended March 31 2008 2007
($000)
Cash flow from operating activities 721 685
Items not affecting funds flow
Accounts receivable (217) 139
Prepaid expenses (18) 52
Accounts payable and accrued liabilities (46) (436)
Asset retirement obligations settled 1 8
Foreign exchange gain (loss) 47 (21)
-------------------------------------------------------------------------
Funds flow for the period 488 427
-------------------------------------------------------------------------



At March 31, 2008, the Company had a working capital position of $16,261,000 (December 31, 2007 - $23,703,000). These numbers include the value of liquid investments of $5,793,000 at March 31, 2008 (December 31, 2007 - $5,257,000).

The Company currently has a projected capital expenditure budget of $26,250,000 for the Meliadine West and East projects for the 2008 year. Of this budget amount approximately $8,500,000 has been spent on these projects as of March 31, 2008. Included in this amount is an annual option payment of $1,560,000 leaving $6,940,000 on the development of the Meliadine West and East projects. Anticipated costs are expected to be comparable to the first quarter for the second and third quarters of 2008, but a significant decrease should be realized in the fourth quarter of 2008 as the construction of the underground bulk sample decline should be complete for the Meliadine West project. A further $200,000 is planned to be spent on miscellaneous other mineral exploration plays in 2008. Existing working capital, and anticipated cash flow from oil and gas operations and investment income is expected to cover all planned expenditures to year end. The Company however attempts to maintain approximately a six month cash balance for the estimated required capital expenditures and as such a future equity issuance may be completed in the coming months to continue the funding of the Meliadine West and other projects.

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

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




COMAPLEX MINERALS CORP.

CONSOLIDATED BALANCE SHEETS

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

As at March 31, 2008 (unaudited) and December 31, 2007
($000) 2008 2007
-------------------------------------------------------------------------
Assets
Current
Cash 14,267 20,987
Accounts receivable 491 708
Prepaid expenses 196 214
Investments (Note 2) 5,793 5,257
-------------------------------------------------------------------------
20,747 27,166
Future Income Tax Asset (Note 3) 4,582 6,181
-------------------------------------------------------------------------
Property and Equipment
Property and equipment 79,890 71,423
Accumulated depletion, depreciation and
amortization (7,665) (7,571)
-------------------------------------------------------------------------
72,225 63,852
-------------------------------------------------------------------------
97,554 97,199
-------------------------------------------------------------------------

Liabilities

Current

Accounts payable and accrued liabilities 4,486 3,463
Asset Retirement Obligations 682 675
-------------------------------------------------------------------------
5,168 4,138
-------------------------------------------------------------------------
Shareholders' Equity
Share capital (Note 4) 74,657 76,173
Contributed surplus 2,834 2,620
-------------------------------------------------------------------------
77,491 78,793
-------------------------------------------------------------------------
Retained earnings 12,094 11,996
Accumulated other comprehensive income (Note 5) 2,801 2,272
-------------------------------------------------------------------------
14,895 14,268
-------------------------------------------------------------------------
Total Shareholders' Equity 92,386 93,061
-------------------------------------------------------------------------
97,554 97,199
-------------------------------------------------------------------------

COMAPLEX MINERALS CORP.

CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS

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

For the Three Months Ended March 31 (unaudited)

($000 except $ per share) 2008 2007
-------------------------------------------------------------------------
Revenue
Minerals Division
Interest 158 67
Mineral production royalty 34 15
Gain on sale of property - 7
-------------------------------------------------------------------------
192 89
-------------------------------------------------------------------------
Oil and Gas Division
Oil and gas sales 922 862
Royalties (225) (171)
Trust distributions (Note 2) 92 90
-------------------------------------------------------------------------
789 781
-------------------------------------------------------------------------
981 870
-------------------------------------------------------------------------
Expenses
Oil and gas production costs 166 108
General and administrative
Minerals division 323 269
Oil and gas division 51 38
Foreign exchange loss (gain) (47) 21
Stock based compensation 214 325
Depletion, depreciation and accretion 102 156

-------------------------------------------------------------------------
809 917
-------------------------------------------------------------------------
Earnings (Loss) Before Taxes 172 (47)
-------------------------------------------------------------------------
Income Taxes (Note 3)
Current - -
Future 74 664
-------------------------------------------------------------------------
74 664
-------------------------------------------------------------------------
Net Earnings (Loss) for the Period 98 (711)
Retained earnings, beginning of period 11,996 9,623
-------------------------------------------------------------------------
Retained Earnings, End of Period 12,094 8,912
-------------------------------------------------------------------------
Net Earnings (Loss) Per Share - Basic and
diluted 0.00 (0.02)
-------------------------------------------------------------------------

COMAPLEX MINERALS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

For the Three Months Ended March 31 (unaudited)

($000 except $ per share) 2008 2007

-------------------------------------------------------------------------
Net earnings (loss) for the period 98 (711)
Gain on investments (net of tax $8,
March 31, 2007 - $30) 529 175
-------------------------------------------------------------------------
Other comprehensive income 529 175
-------------------------------------------------------------------------
Comprehensive income (loss) 627 (536)
-------------------------------------------------------------------------
Comprehensive income (loss) per share - basic
and diluted 0.01 (0.01)
-------------------------------------------------------------------------

COMAPLEX MINERALS CORP.

CONSOLIDATED STATEMENTS OF CASH FLOW

-------------------------------------------------------------------------
For the Three Months Ended March 31 (unaudited)
($000) 2008 2007
-------------------------------------------------------------------------
Operating Activities
Net earnings (loss) for the period 98 (711)
Items not affecting cash

Gain on sale of property - (7)
Stock based compensation 214 325
Depletion, depreciation and accretion 102 156
Foreign exchange loss (gain) (47) 21
Future income taxes 74 664
-------------------------------------------------------------------------
441 448
-------------------------------------------------------------------------

Change in non-cash operating working capital

Accounts receivable 217 (139)
Prepaid expenses 18 (52)
Accounts payable and accrued liabilities 46 436
Asset retirement obligations settled (1) (8)
-------------------------------------------------------------------------
280 237
-------------------------------------------------------------------------
Cash Provided By Operating Activities 721 685
-------------------------------------------------------------------------

Financing Activities

Issue of shares pursuant to private placement - 26,700
Share option proceeds - 638
Share issue costs - (1,743)
-------------------------------------------------------------------------
Cash Provided by Financing Activities - 25,595

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

Investing Activities

Mineral exploration property and equipment

expenditures (8,449) (2,701)
Mineral exploration property and equipment
disposals - 1,463
Oil and gas property and equipment
expenditures (18) (42)

Change in non-cash working capital

Accounts payable and accrued liabilities 979 -
-------------------------------------------------------------------------
Cash Used in Investing Activities (7,488) (1,280)
-------------------------------------------------------------------------
Foreign exchange (loss) gain on cash held in
foreign currency 47 (21)
-------------------------------------------------------------------------
Net Cash Inflow (Outflow) (6,720) 24,979
Cash, Beginning of Period 20,987 4,759
-------------------------------------------------------------------------
Cash, End of Period 14,267 29,738
-------------------------------------------------------------------------
Cash, interest paid - -

Cash, taxes paid - -

COMAPLEX MINERALS CORP.

NOTES TO THE CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

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

Periods Ended March 31, 2008 and 2007 (unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and methods of application followed in the
preparation of the interim financial statements are the same as those
followed in the preparation of Comaplex Minerals Corp's ("the
Company" or "Comaplex") 2007 annual financial statements except as
described below. 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 2007 annual financial statements.
The Company adopted Section 1535, "Capital Disclosures",
Section 3862, "Financial Instruments - Disclosures" and Section 3863,
"Financial Instruments - Presentation." All the above Sections were
required to be adopted for fiscal years beginning on or after
October 1, 2007. As a result the Company has added note 7 providing

the required disclosures regarding the Company's objectives, policies

and processes for managing capital and 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.
Accounting Changes

In February 2008, the CICA issued Section 3064, "Goodwill and
Intangible Assets," replacing Section 3062, "Goodwill and Other
Intangible Assets" and Section 3450, "Research and Development
Costs." Various changes have been made to other sections of the CICA
Handbook for consistency purposes. The new Section will be applicable
to financial statements relating to fiscal years beginning on or
after October 1, 2008. Accordingly, the Company will adopt the new
standards for its fiscal year beginning January 1, 2009. This
standard establishes standards for the recognition, measurement,
presentation and disclosure of goodwill subsequent to its initial
recognition and of intangible assets by profit-oriented enterprises.
Standards concerning goodwill are unchanged from the standards
included in the previous Section 3062. The Company is currently
evaluating the impact of the adoption of this new Section on its
consolidated financial statements. The Company does not expect that
the adoption of this new Section will have a material impact on its
consolidated financial statements.

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) a publicly traded oil and gas income Trust on the Toronto
Stock Exchange) a company with common directors and management, of
$82,500 (2007 - $75,000). 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, 2007 - 689,682) common shares in the Company.
Bonterra Corp is the administrator of Bonterra.
As of March 31, 2008, the Company owns 204,633 (December 31, 2007 -
204,633) units in Bonterra representing approximately one percent of
the outstanding units of Bonterra. The units have a carrying amount
and a quoted market value of $5,546,000 (December 31, 2007 -
$4,909,000). The Company received distributable income in the first
quarter of 2008 of $92,000 (March 31, 2007 - $90,000). These amounts
represent distributable income of two months as Q4's always receive
distributable income for four months.

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 346,250 (December 31, 2007 - 346,250) common shares
representing less than one percent of the total issued and
outstanding common shares of Pine Cliff. The shares have a carrying
amount and a quoted market value of $173,000 (December 31, 2007 -
$260,000). There have been no transactions between Pine Cliff and the
Company.

3. INCOME TAXES

The Company has recorded a future income tax asset. The asset relates
to the following temporary differences:

March 31, December 31,
2008 2007
($000) Amount Amount
---------------------------------------------------------------------
Future income tax assets:

Capital assets 4,194 6,354
Asset retirement obligations 175 173
Share issue costs 401 427
Loss carry-forward (expires 2010) 1,639 1,729
Other (393) (322)
Valuation adjustment (1,434) (2,180)
---------------------------------------------------------------------
4,582 6,181
---------------------------------------------------------------------

Income tax expense varies from the amounts that would be computed by
applying Canadian federal and provincial income tax rates as follows:

March 31, March 31,
($000) 2008 2007
---------------------------------------------------------------------
Earnings (loss) before income taxes 172 (47)
Combined federal and provincial income tax

rates 30.1% 32.1%
---------------------------------------------------------------------

Income tax provision calculated using
statutory tax rates 52 (15)
Increase (decrease) in taxes resulting from:
Stock based compensation 64 98
Effect of change in valuation allowance (746) 218
Depletion of consolidated asset adjustment 8 8
Effect of change in statutory rate 569 362
Other 127 (7)
---------------------------------------------------------------------
Income tax expense 74 664
---------------------------------------------------------------------
The Company has the following tax pools which may be used to reduce
taxable income in future years, limited to the applicable rates of
utilization:

Rate of
Utilization Amount
% ($000)
---------------------------------------------------------------------

Undepreciated capital costs 10-100 554
Foreign exploration expenditures 10 851
Share issue costs 20 1,563
Earned depletion expenses (successored) 25 2,299

Canadian development expenditures 30 17,772
Non-capital loss carried forward (expires
2010) 100 6,395
Canadian exploration expenditures
(successored) 100 33,368
Canadian exploration expenditures 100 33,500
---------------------------------------------------------------------
96,302
---------------------------------------------------------------------

4. SHARE CAPITAL

Authorized

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

2008
---------------------------------------------------------------------
Amount
Number ($000)
---------------------------------------------------------------------

Common Shares

Balance, January 1, 2008 46,611,970 76,173

Future tax adjustment on renouncement of tax
pools (1,516)
---------------------------------------------------------------------
Balance, March 31, 2008 46,611,970 74,657
---------------------------------------------------------------------
On December 14, 2007, the Company completed a private placement for
649,999 flow through common shares for aggregate gross proceeds of
$5,037,000. The adjustment to the future income tax asset has been
recorded on the renouncement of the tax pools in the current period.
The 47,507,409 (March 31, 2007 - 46,435,596) shares used to calculate
diluted earnings per share for the period ended March 31, 2008
included the basic weighted average number of shares outstanding of
46,611,970 (March 31, 2007 - 45,961,971) plus 895,439 (March 31, 2007
- 473,625) shares related to the dilutive effect of stock options.

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 March 31, 2008 was 4,661,197. 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
March 31, 2008 and December 31, 2007 and changes during the three
months ended March 31, 2008 and year ended December 31, 2007 is
presented below:

March 31, 2008 December 31, 2007
---------------------------------------------------------------------
Weighted- Weighted-
Average Average
Shares Exercise Shares Exercise
Price Price
---------------------------------------------------------------------

Outstanding at

beginning of period 2,141,000 $3.40 2,397,200 $2.77
Options issued - - 278,000 4.86
Options exercised - - (510,200) 1.25
Options cancelled - - (24,000) 3.20
---------------------------------------------------------------------
Outstanding at
end of period 2,141,000 $3.40 2,141,000 $3.40
---------------------------------------------------------------------

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

Options exercisable
at end of period 694,500 $3.29 639,500 $3.17

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

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

The following table summarizes information about options outstanding

at March 31, 2008:

Options Outstanding Options Exercisable
-------------------------------------------------------------------------
Weighted-
Average Weighted- Weighted-
Range of Number Remaining Average Number Average
Exercise Outstanding Contractual Exercise Exercisable Exercise
Prices At 03/31/08 Life Price At 03/31/08 Price
-------------------------------------------------------------------------
$2.70 60,000 1.8 years $2.70 40,000 $2.70
3.20 to 3.60 1,833,000 1.7 years 3.20 609,500 3.20
4.70 to 5.20 243,000 2.8 years 5.03 45,000 4.98
6.28 5,000 2.7 years 6.28 - -
-------------------------------------------------------------------------
$2.70 to $6.28 2,141,000 1.8 years $3.40 694,500 $3.29

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

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

The Company records a compensation expense over the vesting period
based on the fair value of options granted to employees, directors
and consultants.

5. ACCUMULATED OTHER COMPREHENSIVE INCOME

Other
Compre-
January 1, hensive March 31,
($000) 2008 Income 2008
--------------------------------------
Gains on available-for-sale
investments 2,272 529 2,801
--------------------------------------
Other
Compre-
January 1, hensive December 31,
2007 Loss 2007
--------------------------------------

Gains (losses) on

available-for-sale

investments 2,595 (323) 2,272
--------------------------------------

6. 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 March 31,

($000) 2008 2007
Gross revenue
Mineral exploration 192 89
Oil and Gas 1,014 952
---------- ----------
$ 1,206 $ 1,041
---------- ----------
---------- ----------

Depletion, depreciation, accretion,
and abandonment
Mineral exploration 37 33
Oil and Gas 65 123
---------- ----------
102 156
---------- ----------
---------- ----------
Net earnings (loss) for the period
Mineral exploration (256) (1,057)
Oil and Gas 354 346
---------- ----------
98 (711)
---------- ----------
---------- ----------
Property and equipment expenditures for the
period

Mineral exploration 8,449 2,701
Oil and Gas 18 42
---------- ----------
8,467 2,743
---------- ----------
---------- ----------
Total assets (2007 amounts as of
December 31, 2007)
Mineral exploration 89,777 89,930
Oil and Gas 7,777 7,269
---------- ----------
97,554 97,199
---------- ----------
---------- ----------



7. FINANCIAL AND CAPITAL RISK MANAGEMENT

Financial Risk Factors

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

The Company undertakes transactions in a range of financial
instruments including:
- Cash deposits;

- Receivables;

- Common share investments;
- Payables;

The Company's activities result in exposure to a number of financial
risks including market risk (commodity price risk, interest rate
risk, foreign exchange risk, credit risk, and liquidity risk).
Financial risk management is carried out by senior management under
the direction of the Directors.
The Company does not enter into risk management contracts to sell its
oil and gas commodities at market prices at the date of sale in
accordance with the Board directive.

Capital Risk Management

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

The Company's objectives when managing capital are to safeguard the
Company's ability to continue as a going concern, so that it can
continue to provide returns to its Shareholders and benefits for
other stakeholders and to maintain an optimal capital structure to
reduce the cost of capital. In order to maintain or adjust the
capital structure, the Company may issue new shares.

The Company monitors capital on the basis of the ratio of annual
budgeted exploration capital requirements to current working capital.

This ratio is calculated using the projected cash requirements for
nine months to a year in advance and maintaining a working capital
balance of approximately 6 months to satisfy this requirement on a
continuous basis.

The Company believes that maintaining approximately a six month
current working capital balance to the exploration capital budget
requirement is an appropriate basis to allow it to continue its
future development of the Company's biggest asset; the "Meliadine

West Project."

The following section (a) of this note provides a summary of our
underlying economic positions as represented by the carrying values,
fair values and contractual face values of our financial assets and
financial liabilities. The Company's working capital to capital
expenditure requirement ratio is also provided.

The following section (b) addresses in more detail the key financial
risk factors that arise from the Company's activities including its
policies for managing these risks.




a) Financial assets, financial liabilities

The carrying amounts, fair value and face values of the

Company's financial assets and liabilities other than cash are

shown in Table 1.

Table 1

As at As at
March 31, 2008 December 31, 2007
Carrying Fair Face Carrying Fair Face
($000) Value Value Value Value Value Value
Financial assets
Accounts receivable 491 491 496 708 708 711
Investments 5,793 5,793 - 5,257 5,257 -
Financial liabilities
Accounts payable
and accrued
liabilities 4,486 4,486 4,486 3,463 3,463 3,463
The budgeted capital expenditure to working capital base figures for
March 31, 2008 and December 31, 2007 are presented below:

March 31, December 31,
($000) 2008 2007
---------------------------------------------------------------------

Budgeted capital expenditure

(December 31, 2007) 25,985 25,985

Expenditures 2008 (8,466) -

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

Budgeted capital expenditure 17,519 25,985

---------------------------------------------------------------------
Number of months budgeted 9 12
---------------------------------------------------------------------
Current assets 20,747 27,166
Current liabilities (4,486) (3,463)
---------------------------------------------------------------------
Working capital 16,261 23,703
---------------------------------------------------------------------
Budgeted capital expenditure to
working capital base 1.1 1.1
---------------------------------------------------------------------
Working capital to budgeted capital
expenditure (in months) 8.4 11.0
---------------------------------------------------------------------



b) Risks and mitigations

Market risk is the risk that the fair value or future cash flow of
the Company's financial instruments will fluctuate because of changes
in market prices. Components of market risk to which Comaplex is
exposed are discussed below.

Commodity price risk

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

The Company's principal operation is the development of its gold
properties. The Company also engages to a much lesser extent in the
sale of oil and natural gas. Fluctuations in prices of these
commodities may directly impact the Company's performance and ability
to continue with its operations.

The Company's management, in agreement with the Board of Directors,
currently does not use risk management contracts to set price
parameters for its production.

Sensitivity Analysis

The Company is still in the exploration stage of development of its
mineral exploration properties and as such generates nominal cash
flow or earnings from these properties. In addition the Company's
petroleum and natural gas operations provide only moderate cash flow
and as such changes of $1.00 US per barrel in the price of crude oil,
$0.10 per MCF in the price of natural gas and $0.01 change in the
Cdn/US exchange rate would have no significant impact on the cash
flow of the Company.

Interest rate risk

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

Interest rate risk refers to the risk that the value of a financial
instrument or cash flows associated with the instrument will
fluctuate due to changes in market interest rates. Interest rate risk
arises from interest bearing financial assets and liabilities that
Comaplex uses. The principal exposure to the Company is on its cash
balances which have a variable interest rate which gives rise to a
cash flow interest rate risk.

Comaplex's cash consists of Canadian and US investment chequing
accounts. Since these funds need to be accessible for the development
of the Company's capital projects, management does not reduce its
exposure to interest rate risk through entering into term contracts
of various lengths. As discussed above, the Company generally manages
its capital such that its annual budgeted capital requirements to
current working capital ratio are approximately six months. This
reduces the effects of unused funds generating a minimum return on
investment.

Sensitivity Analysis

Based on historic movements and volatilities in the interest rate markets, and management's current assessment of the financial markets, the Company believes that a one percent variation in the Canadian prime interest rate is reasonably possible over a 12 month period. No income tax effect has been calculated as the Company has more than sufficient tax pools.

The following illustrates the annual impact of a 1% fluctuation in the Canadian prime interest rate:




As at As at
March 31, 2008 December 31, 2007
Plus 1% Minus 1% Plus 1% Minus 1%
Earn- Earn- Earn- Earn-
($000) ings Equity ings Equity ings Equity ings Equity

Financial assets

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

Cash deposits 143 143 (143) (143) 210 210 (210) (210)
Accounts receivable - - - - - - - -
Investments - - - - - - - -

Financial liabilities
---------------------
Accounts payable and
accrued liabilities - - - - - - - -
-------------------------------------------------------------------------
Total increase
(decrease) 143 143 (143) (143) 210 210 (210) (210)
-------------------------------------------------------------------------
Foreign exchange risk
---------------------



The Company has no foreign operations and currently sells all of its
product sales in Canadian currency. The Company has a US cash balance
and earns an insignificant amount of interest on its US bank account.
Comaplex does not mitigate this risk by hedging its CAD/USD exchange
rate.

Credit risk

-----------

Credit risk is the risk that a contracting party will not complete
its obligations under a financial instrument and cause the Company to
incur a financial loss. Comaplex is exposed to credit risk on all
financial assets included on the balance sheet. To help mitigate this
risk:

- The Company only maintains its cash balances with a major
Canadian chartered bank.

- The majority of investments are only with entities that have
common management with the Company.

Of the accounts receivable balance at March 31, 2008 ($491,000) and
December 31, 2007 ($708,000) over 90 percent relates to product sales
with major oil and gas marketing companies all of which have always
paid within 30 days.

The Company assesses quarterly if there has been any impairment of
the financial assets of the Company. During the three month period
ended March 31, 2008 there was no impairment provision required on
any of the financial assets of the Company due to historical success
of collecting receivables. The Company does not have any significant
credit risk exposure to any single counterparty or any group of
counterparties having similar characteristics.

The carrying value of accounts receivable approximates their fair
value due to the relatively short periods to maturity on this
instrument. The maximum exposure to credit risk is represented by the
carrying amount on the balance sheet. There are no material financial
assets that the Company considers past due.

Liquidity risk

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

Liquidity risk includes the risk that, as a result of Comaplex's
operational liquidity requirements:

- The Company will not have sufficient funds to settle a
transaction on the due date,

- Comaplex will not have sufficient funds to continue with its
financing of its major exploration project,

- The Company will be forced to sell assets at a value which is
less than what they are worth, or

- Comaplex may be unable to settle or recover a financial asset
at all.

To help reduce these risks, the Company:

- Has a generally capital policy of maintaining approximately

six months of annual budgeted capital requirements as its
working capital base.

- Holds current investments that are readily tradable should the
need arise.

- Maintain a continuous evaluation approach as to the
requirements for its largest exploration program; the

"Meliadine West Project."

%SEDAR: 00001166E

Contact Information

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

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

    Mark J. Balog
    COO
    (403) 265-2846
    Fax: (403) 265-7488