Kirrin Resources Inc.
TSX VENTURE : KYM

Kirrin Resources Inc.

September 02, 2009 08:30 ET

Kirrin Resources Second Quarter 2009 Results and Highlights

CALGARY, ALBERTA--(Marketwire - Sept. 2, 2009) - Kirrin Resources Inc. (TSX VENTURE:KYM) today reported its 2009 second quarter financial results and operational highlights.

The Company is in the exploration and development stage of its operations but recorded net income for the period of $218,000 (Q2 2008: restated net income $434,000) as a result of settling outstanding contractual matters in relation to the disposal of a subsidiary company in Q2 2008. No general and administration expenses were capitalized in Q2 in either 2009 or 2008.

Significant progress was made in controlling general and administration expenses, which decreased by 37% to $146,000 from $230,000, excluding stock based compensation expense. Salaries and benefits, financial administration, audit, general office and miscellaneous, and travel and marketing decreased by $48,000 (61%), $12,000 (26%), $3,000 (26%), $8,000 (41%) and $36,000 (98%) respectively. The principal factor behind these decreases was the disposal of the Company's diamond division in Q2 2008. Legal expense increased by $18,000 (129%) and investor relations expense by $5,000 (21%) due largely to the costs of the Company's capital restructuring approved at the AGM on May 1, 2009. The decrease in stock based compensation expense is a consequence of the repricing of stock options approved at the same meeting. General and administration expense, excluding stock based compensation, decreased by $287,000 (49%) during the six months ended June 30, 2009.

Cash outflows used by operating activities in the second quarter of 2009 amounted to $118,000, compared to cash outflows in the second quarter of 2008 of $336,000. Cash resources at the end of the period amounted to $35,000, down from $2,077,000 (restated) in the corresponding period in 2008. The Company had negative working capital of $93,000 compared to positive working capital of $1,800,000 in 2008. The Company has no interest bearing debt and has advanced its plans to improve its working capital.

Operational Highlights:

The business climate continues to present difficulties to junior companies and Kirrin's management has focused on restructuring and stabilisation to meet current challenges and to position the Company to participate in future growth opportunities. While no field operations were carried out on the Company's portfolio of properties during the quarter under review, the quarter was very active in three respects.

Firstly, the Company completed a wide ranging review of opportunities in relation to its objective to identify suitable uranium companies and assets for acquisition, merger, strategic partnership or joint venture. On June 17, 2009, the Company announced that it had entered into an option agreement with Kodiak Exploration Ltd. ("Kodiak") allowing it to earn up to a 70% interest in Kodiak's Otish Basin uranium property portfolio located in Quebec, Canada. The transaction is subject to supplementary due diligence, contract and to regulatory approval.

Secondly, following an extensive review of the results of the 2008 exploration program, management determined, subject to the availability of funding, that those results warranted further exploration on each of the three properties, Alexis River, Boxey Point and Lost Pond. Detailed exploration plans will be announced shortly.

Thirdly, the Company successfully negotiated the settlement of various contractual issues, including the disposition of escrow funds, arising from the sale of its South African assets in 2008. As a result, Kirrin recorded additional profit of $362,000 in Q2 2009 from the sale and received this amount in August.

Additional information relating to Kirrin, including Kirrin's quarterly report, management's discussion and analysis and unaudited financial statements for the quarter ended June 30, 2009, is available on Kirrin's web site at www.kirrinresources.com and on SEDAR at www.sedar.com.

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.

To receive company news releases via e-mail, please advise catarina@chfir.com and specify "Kirrin News" in the subject line.

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.

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