Kirrin Resources Inc.

Kirrin Resources Inc.

May 28, 2009 10:30 ET

Kirrin Resources First Quarter 2009 Results and Highlights

CALGARY, ALBERTA--(Marketwire - May 28, 2009) - Kirrin Resources Inc. (TSX VENTURE:KYM) today reported its 2009 first quarter financial results and operational highlights.

The Company is in the exploration and development stage of its operations and recorded a loss before income taxes for the period of $225,028 (Q1 2008: loss before income taxes $436,249). The reduced loss is due to the change in the company's business focus and tight cost control. During the comparable period in 2008, the Company recorded the benefits conferred upon the subscribers of the flow-through shares issued in 2007 and this gave rise to the recognition of a future income tax recovery of $410,000. Hence the net losses in Q1 2009 and Q1 2008 were $225,028 and $26,249 respectively.

General and administration expenses decreased to $157,091 from $315,922. Further proportionate decreases are expected throughout 2009. All expense lines decreased, with the major reductions being: salaries and benefits down by $74,456 (72%), stock compensation expense down by $48,860 (77%), and general office and miscellaneous down by $54,403 (81%). The principal factors behind these movements were the change in Kirrin's business focus to uranium exploration in Canada and the cessation of its overseas operations.

Cash outflows used by operating activities in the first quarter of 2009 amounted to $545,353, against cash outflows in the first quarter of 2008 of $309,346. Cash resources at the end of the period amounted to $114,822 and mineral interests to $1,739,691.

Operational Highlights:

The Company received the results of its 2,504 m drill program completed on the Lost Pond property at the 2008 year end (news release April 14, 2009). The final hole of the five hole program, LP08-21, targeted the down-plunge extent of the Cataclastic Zone and hit the target at 235.4 m, resulting in an intersection of 0.038% U3O8 over 20.1 m, including 0.061% U3O8 over 3.0 m. The Cataclastic Zone is interpreted as a 75 degree dipping zone and the true widths are approx. 75% to 80% of the down-hole drill intercepts. The zone is apparently open down-plunge. In addition, the Company completed provincial assessment filings in respect of the Alexis River and Boxey Point properties, as well as for the Dunsworth Option at the Lost Pond property. No field exploration was planned for this quarter.

A major aspect of the Company's strategy is the identification of suitable uranium companies and assets for acquisition, merger, strategic partnership or joint venture. During the first quarter, the Company executed an agreement with First Canadian Securities®, a division of Limited Market Dealer Inc., whereby First Canadian Securities would assist Kirrin to identify and carry out transactions that add value to Kirrin through the consolidation of uranium assets. Arising from this agreement, the Company surveyed a large selection of companies and properties. Discussions have been initiated on several of these and announcements will be made as developments occur.

The Qualified Person ("QP") managing the exploration program is Wayne Reid, P.Geo. As the QP, he has prepared or reviewed the technical information for this release. Wayne Reid is a consulting geologist working for Kirrin and a Technical Advisor for Ucore Uranium Inc.

Additional information relating to Kirrin, including Kirrin's quarterly report, management's discussion and analysis and unaudited financial statements for the quarter ended March 31, 2009 is available until June 4, 2009, on and on SEDAR. Thereafter, please visit

Kirrin is engaged in uranium exploration in Newfoundland & Labrador and in the expansion of its portfolio through acquisition, merger, strategic partnership or joint venture. Its strategy is well defined: enhancing shareholder value by combining technical expertise, corporate development skills and professional management. Kirrin's shares trade on the TSX Venture Exchange under the symbol KYM.

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Forward-looking information: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those expressed or implied by such forward-looking information. Risks include delays in obtaining or failure to obtain regulatory approval. Except as required by applicable securities legislation, the Company undertakes no obligation to publically update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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

Contact Information

  • Kirrin Resources Inc.
    Derek J Moran
    27 82 440 3426
    CHF Investor Relations
    Robin Cook
    Senior Account Manager
    (416) 868-1079