Goldrush Resources Ltd.

Goldrush Resources Ltd.

November 30, 2007 15:02 ET

Goldrush Reports Third Quarter 2007 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2007) - Goldrush Resources Ltd. (TSX VENTURE:GOD) ("Goldrush" or the "Company") today reported its financial results for the three and nine month periods ended September 30, 2007. The Consolidated Financial Statements and related Notes along with Management's Discussion and Analysis have been filed with SEDAR ( and can be viewed on the Company's website at (All currency figures are in Canadian dollars unless otherwise noted).


Exploration Highlights

- Drilling has outlined a significant gold zone at Ronguen, six kilometres north of High River's Bissa Deposit

- An independent resource estimate for the Ronguen gold zone is planned for Q1, 2008

- Over $2,000,000 was advanced for exploration during the quarter

Financial Results

- Working capital increased to $3,433,123 at September 30, 2007, as compared to a working capital of $1,591,873 as at December 31, 2006

- Net income was $117,410 or $0.00 in Q3, 2007 as compared to a net loss of ($601,958) or ($0.02) per share in Q3, 2006

Discussion of Financial results

The Company's net loss for the nine months ending September 30, 2007 was ($227,323) or ($0.00) per share compared with a net loss of ($601,958) or ($0.02) per share for the same period in 2006. The largest contributor to the loss in 2007 was the accretion of debt, which relates to the Company's convertible debenture to High River Gold Mines Ltd. This category provided a charge of $66,750 (as compared to $51,632 in 2006). Two other expense categories were also increased in the first nine months of 2007: (i) a foreign exchange expense of $56,049 (as compared to an expense of $19,866 in 2006), which relates to an unfavourable change in exchange rates between the Canadian dollar and the currency of Burkina Faso, the CFA-Franc; and (ii) the head office rent ($21,750 vs. nil in 2006). These increased expenses were partially offset by reduced advertising and promotion ($45,000 in 2007 vs. $90,000 in 2006), legal and accounting ($18,415 in 2007 vs. $28,133 in 2006), shareholder communications ($12,588 in 2007 vs. $19,911 in 2006), travel ($16,710 vs. $22,540 in 2006) and trust and filing fee expenses ($20,296 in 2007 vs. $31,412 in 2006) and increased interest income ($50,166 in 2007 vs. $12,167 in 2006) and stock option revenue ($36,000 in 2007 vs. nil in 2006). A stock based compensation expense of $293,081 related to the granting of Director and Employee stock options was a major contributor to the 2006 loss.

The Company's net income for the three months ending September 30, 2007 was $117,410 or $0.00 per share compared with a net loss of $160,120 or ($0.00) per share for the same period in 2006. The net income in 2007 was primarily due to a combination of a reversal of a prior period foreign exchange loss ($157,873) and increased interest income ($32,211 in 2007 vs. $6,601 in 2006) while the loss in 2006 was significantly influenced by the aforementioned stock based compensation expense.

Exploration Program Update

The Company currently controls 33 exploration permits in Burkina Faso, West Africa. The permits are for gold and related minerals/substances and cover approximately 5,600 km2 of prospective geology in Burkina Faso. The Company is now conducting a series of exploration programs on these permits. During the third quarter, grass-roots exploration was conducted on 15 permits, with exploration advances totalling $2,018,600.

Details of these exploration programs are available at the Company's website: and initial exploration results have been reported in news releases dated May 31, July 19, July 27, August 21 and 31, September 19, October 20, November 1 and 21, 2006, January 15 and 22, April 11, April 25, June 18, August 7, September 5 and October 3, 2007 which were filed on SEDAR at

The Company's flagship project is the Ronguen Gold Zone, located on the Kongoussi 1 permit in north-central Burkina Faso, just 6 km. northwest of High River Gold's ("High River") Bissa gold deposit. High River has developed a resource of over 1.3 million ounces of gold in all categories for its Bissa Deposit and is targeting to increase this to over 2 million ounces in 2007 (see High River news release dated July 12, 2007)(1). Through Goldrush's Strategic Alliance Agreement with High River, the Company will have preferred access to truck its ore for processing to a mill at Bissa if one is built by High River, should a commercially viable deposit be defined, with no capital contribution required by Goldrush. This highly favourable situation for Goldrush means that mining operations can begin with a much smaller deposit than would normally be required if the Company had to undergo the capital cost burden of constructing its own processing facility.

From acquisition in early 2006 to September 30, 2007, the Company has completed 319 drill holes totaling 17,598 metres of rotary air blast, reverse circulation and diamond drilling on Ronguen. A surface plan showing the drill hole locations and orientations is available at

To September 30, 2007 drilling was limited to a maximum depth of 80 metres in only 2 holes and the Ronguen Gold Zone is open below this level. The average overall gold grade is 1.8 g/t gold including higher-grade sections of up to 7.4 g/t gold.

(1)(Readers are cautioned that the above information is not necessarily indicative that gold mineralization present on the Bissa property continues onto Kongoussi 1).

During October and November, 2007, 1,800 metres of core drilling and 1,300 metres of trenching were conducted at Ronguen to:

- allow for an independent calculation of an inferred resource,

- expand the mineralized zone below a depth of 80 metres,

- drill along strike to test for easterly and westerly extensions of the gold zone,

- explore a parallel structure located a few hundred metres to the south of the main Ronguen Gold Zone.

As at the date of this report, no assays have been received from this program.

Goldrush on NETTV

To allow shareholders to view the scope of the Company's exploration efforts in Burkina Faso, the Company has partnered with to provide a video overview of the Company and its operations. Shareholders and interested investors are invited to view these videos through a portal on the Company's website or at

About Goldrush: Goldrush is a mineral exploration company focused on gold exploration in Burkina Faso, West Africa with an established organization of people and projects to enable aggressive growth. Through a strategic partnership with High River Gold Mines Ltd. Goldrush has the ability to access High River's processing facilities and infrastructure without incurring all the capital costs associated with developing a standalone mine, thereby enhancing the economics of gold deposits within trucking distance of the processing facility.

For further information on Goldrush Resources Ltd., shareholders are invited to visit the Company's website at



Len Brownlie - President

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward looking statements.

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

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