MDN Inc.

MDN Inc.

January 17, 2008 09:44 ET

MDN Inc.: Tulawaka Mine Achieves Record Gold Production and Strong Financial Results in 2007

Gold production of 54,251 ounces in Q4

MONTREAL, QUEBEC--(Marketwire - Jan. 17, 2008) - MDN INC. ("MDN") (TSX:MDN) is pleased to announce that the Tulawaka Gold Mine in Tanzania produced 54,251 ounces of gold in the fourth quarter ended December 31, 2007, a quarterly production record. Tulawaka gold production reached a total of 178,618 ounces in 2007, compared to 139,655 ounces in 2006, a 28% production increase. Since the beginning of operations in March 2005, Tulawaka gold production now amounts to a total of 443,883 ounces.

In 2007, a total of 176,508 ounces of gold have been sold, entirely in the spot market, at an average price of US$709/oz. compared to an average price of US$606/oz. in 2006. Total revenues in 2007 were US$125.1 Million compared to US$88.7 Million in 2006, an increase of 41%.

With these excellent results, the Tulawaka Mine distributed a cumulative amount of US$56.9 Million to the joint-venture participants in 2007: Pangea Goldfields (70%) and MDN (30%). MDN's share of distributions (US$17.1 Million) was applied entirely to the reduction of its debt.

As of December 31st, 2007, after cash distribution, total cash balances of the Tulawaka mine were US$28.7 Million. During the fiscal year, net cash flow from operating activities was US$65.2 Million and the mine operating profits were US$60.5 Million, compared to US$34.6 Million in 2006, an increase of 75%.

"Our participation in the Tulawaka Gold Mine is about to generate a strong return on investment, a key milestone for MDN in 2008. Indeed, our most optimistic financial assumptions are looking quite conservative considering the current gold market. We are quite confident that MDN's financial position in 2008 will reach new highs based on the fundamental value of our mining assets," stated Paul-A. Girard, Chairman and CEO.

Mining and Processing

In 2007, the plant facilities processed 433,921 tonnes of ore at an average grade of 13.66 g/t gold and at a gold recovery rate of 93.57%. The annual total cash costs averaged US$271 to produce an ounce of gold, compared with US$268 in 2006.

The ROM stockpiles at year end were 403,031 tonnes at an average grade of 3.37g/t representing approximately 11 months of ore supply for the process plant, assuming about 35,000 tonnes are processed per month due to the hardness of the rock on the stockpiles.


Gold Production (oz) 178,618
Gold Sales (oz) 176,508
Average Selling Price /oz 709 $US
Total Revenues 125,1M $US
Total Cash Costs /oz 271 $US
Mine Operating Profit 60.5M $US

The Tulawaka project is a joint-venture between MDN (30%) and Pangea Goldfields (70%), a wholly owned indirect subsidiary of Barrick Gold Corporation and project operator through its Tanzanian subsidiary Pangea Minerals Ltd. The information concerning Tulawaka Mine in this press release was provided by the project operator.

MDN is a mining exploration company with its head office in Montreal, Quebec (Canada). Its main exploration activities are carried out in Quebec and Tanzania. In addition to its 30% participation interest in the Tulawaka Gold Mine, MDN holds a controlling interest in 20 mineral licenses around Tulawaka, including four gold projects which are currently undergoing a significant drilling program.

Contact Information