MDN Inc.

MDN Inc.

November 12, 2009 10:20 ET

MDN Inc.: Net Income for the 7th Consecutive Quarter

MONTREAL, QUEBEC--(Marketwire - Nov. 12, 2009) - MDN Inc. ("MDN")(TSX:MDN) today filed interim financial statements for the nine-month period ended September 30, 2009. The Management and Discussion Analysis as well as the interim financial statements are available on the Company's web site at and on SEDAR (

The third quarter was marked by investments focused on the development of assets related to MDN's three sectors of activity, namely: gold production, gold exploration and the development of mining projects with strong growth potential. The gold production of the underground mine at Tulawaka has increased. The drilling programs at Tulawaka underground mine, as well as on the other properties under the control of MDN in Tanzania and in Quebec, have generated positive results. Taking advantage of the increase of activities and the favorable conditions of the gold market, MDN recorded net earnings for a seventh consecutive quarter, in spite of the unfavorable fluctuations of the foreign exchange rate between the Canadian dollar and the American dollar and the increase of expenses related to its recent investments.

"We are satisfied with the third quarter results and we maintain our growth plan and our strong balance sheet. Our participation in numerous well targeted mining events has continued to create interest from key players in the financial markets" stated Paul-A. Girard, President and CEO of MDN.


- Revenue of $2,790,286.

- Net income of $737,649 or 0.01 $ per share, including a loss on foreign currency of $419,909.

- EBITDA was $1,412,674.

- As of September 30, 2009, MDN had over $20 million in available funds, an amount which is sufficient to ensure its ongoing operations and planned investments.

- The Tulawaka gold mine in Tanzania produced 29,489 ounces of gold with an average grade of 8.5 g/t at a recovery rate of 94.2%. MDN's 30% ownership interest in the Tulawaka gold mine gives it a pro-rata share equal to 8,847 ounces of gold.

- The total cash costs to produce an ounce of gold in the quarter were US$375.

- The Tulawaka gold mine sold 28,373 ounces of gold on the spot market at an average price of US$948 per ounce, representing US$26.9M. The MDN share (30%) is equal to 8,512 ounces of gold sold or US$8.1M.

- Drilling programs on the property under MDN's control started during the third quarter, following the announcement of a $1.5M minimum budget, with the possibility of increasing it up to $3M based on positive drilling results. A total of 13 drill holes totalling close to 2,837 m were completed on the Isambara project.

- The Ikungu project and the geochemical soil surveys at 800 meters space lines have been completed and cover the entire property. MMI ("Mobil Metal Ion") detailed soil sampling was also undertaken in order to better define the extensions of the drilling targets already identified. A first phase of drilling is currently underway on Ikungu.

- At the Tulawaka gold mine, 6,500 meters of underground exploration drilling program was completed since the beginning of 2009. Additional drilling and exploration activities have been planned by the operator following the good results of the initial program.

- The acquisition of the niobium and tantalum project, now named the Anita Project, will be MDN's priority in the upcoming months for the geology and metallurgy aspects, as well as its positioning in the markets. An investment of $3.4M was made to date on the Anita project, including $1.1 M for the scoping study.

- All Quebec exploration properties are being re-evaluated in order to fully assess their potential.

- In the context of it normal course issuer bid filed with the Toronto Stock Exchange on March 24, 2009, and in the course of its normal activities, the Company during the third quarter purchased 1,131,000 shares at an average cost of $0.57 per share for a total amount of $646,572.


For the three months ended September 30, 2009 2009 2008
(In thousands of dollars, except for amounts per share)

Revenue $2,790 $6,116
Administrative expenses $1,061 $1,016
Foreign exchange gain (loss) ($420) $33
Net income (loss) $738 $5,133
Basic and diluted net earnings (loss) per share $0.008 $0.056
Weighted-average number of shares outstanding
(in thousands) 94,939 91,580


For the three months ended September 30, 2009 100% 30% (MDN)

Gold production (oz) 29,489 8,847
Gold sales (oz) 28,373 8,512
Average sale price / oz ($ US) 948 948
Total revenue (in millions of $ US) 26.9 8.1
Production cost / oz ($ US) 375 375

About MDN

MDN is a mining exploration and development company having adequate financial resources to develop its very promising projects in Quebec and in Tanzania and to search for new business opportunities that can raise shareholder value. In addition to its 30% participation in the Tulawaka Gold Mine, MDN is the operator and owner of a majority interest in 35 mineral licenses totaling 621 sq km around the Tulawaka gold mine in Tanzania, and owns a 28.75% interest in a property with a NI 43-101 niobium and tantalum resource located in the Lac St-Jean area of Quebec.

Forward Looking Statements

All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements are discussed in greater detail in the Company's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. Investors and others who base themselves on the Company's forward-looking statements should carefully consider the factors mentioned in the Annual Information Form as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

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