New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

November 21, 2008 08:00 ET

New Millennium Announces Financial Results for the Third Quarter Ending September 30, 2008

CALGARY, ALBERTA--(Marketwire - Nov. 21, 2008) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

New Millennium Capital Corp. ("NML" or the "Company") (TSX VENTURE:NML) is pleased to announce its financial results for the third quarter ending September 30, 2008. The following discussion of the Company's financial performance is based on the Interim Consolidated Financial Statements and the Management's Discussion and Analysis (MD&A) for that period.

The Company's results of operations for the three-month period ended September 30, 2008 is a comprehensive loss of $784,000 or $0.01 per share compared to a net loss of $1,340,000 or $0.01 per share for the corresponding period in 2007. This loss represents expenses of $688,000 (2007 - $766,000) and a reduction in fair value of a long-term investment of $370,000 (2007 - $880,000) net of investment income of $32,000 (2007 - $55,000) and future income taxes recoverable of $242,000 (2007 - $251,000). The most significant expense items were general and administrative of $324,000 (2007 - $441,000), professional fees of $228,000 (2007 - $208,000) and market development of $128,000 (2007 - $106,000).

The comprehensive loss for the nine-month period ended September 30, 2008 was $2,193,000 or $0.02 per share compared to a net loss of $2,165,000 or $0.03 per share for the corresponding period in 2007. This loss represents expenses of $2,545,000 (2007 - $2,127,000) and a reduction in fair value of a long-term investment of $370,000 (2007 - $880,000) net of investment income of $137,000 (2007 - $161,000) and future income taxes recoverable of $585,000 (2007 - $680,000). Again, the most significant expense items were general and administrative of $1,309,000 (2007 - $1,249,000), professional fees of $715,000 (2007 - $571,000) and market development of $493,000 (2007 - $272,000).

As at September 30, 2008, the carrying value of mineral properties increased to $33,187,000 from $26,414,000 as of December 31, 2007 or by $6,773,000. The main components of this increase were mineral licenses ($17,000), resource evaluation ($1,598,000), drilling ($4,543,000), environmental ($716,000) and field labour and supplies ($587,000) net of tax credits and mining duties ($688,000).

Through September 30, 2008, NML has fulfilled its Canadian Exploration Expenses spending requirements relating to the October 4, 2007 issuance of $4,000,000 of flow through shares.

The Company's management has made an assessment of the fair value of the long-term investment in asset backed commercial paper (ABCP). The company estimates the fair value of the ABCP by discounting expected future cash flows determined using a valuation model that incorporates management's best estimate, based on the best available data, of credit risk attributable to the underlying assets, relevant market interest rates, amounts to be received and maturity dates. The assessment uses assumptions as to the long-term interest rate to be received on the potential long-term note compared to the short-term interest rate currently being accrued by the Company. The outcome of the assessment was that an additional reduction in fair value of $370,000 has been recognized in the Interim Consolidated Comprehensive Loss for the three-month and nine-month periods ended September 30, 2008. Due to the uncertainty of when or if the Company will receive the interest earned to date, the Company has not accrued any interest as of September 30, 2008.

The significant third quarter events, which are fully described in the MD&A, are: (1) the project update on the Direct Shipping Ore (DSO) 2008 Summer/Fall exploration programs; Impact and Benefit Agreements, and environmental programs; and (2) the execution of a non-binding Letter of Intent with Al-Tuwairqi for the sale of 30 million tonnes of Direct Reduction (DR) pellets at an annual rate of 3 million tonnes per year.

The significant activities subsequent to the third quarter are: (1) the execution of binding agreements with Tata Steel Global Minerals Holdings Pte Limited ("Tata Steel"), whereby Tata Steel became a strategic investor of NML and acquired 19.9% of the common shares of the Company through a $23,529,200 Private Placement and certain rights to participate in the DSO Project; and (2) the promotion of Mr. Bish Chanda to the position of Senior Vice President, Marketing and Strategy.

About New Millennium

New Millennium controls the emerging Millennium Iron Range, which holds the world's largest undeveloped iron ore deposits in the Province of Newfoundland and Labrador and in the Province of Quebec. In the same area, the Company is also advancing to near term production its DSO Project. Tata Steel, the world's sixth largest steel company, owns 19.9% of New Millennium and is the Company's largest shareholder and strategic partner. Tata has an exclusive option to fund the DSO Project and a commitment to take the resulting production and an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project (see news release 08-17, October 1, 2008). The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of reserves, 4.6 billion tonnes of Measured and Indicated resources and 1.1 billion tonnes of Inferred resources; KeMag contains 2.3 billion tonnes of Measured and Indicated resources and 1 billion tonnes of Inferred resources (see news releases 07-11, July 17, 2007 and 08-06, February 27, 2008). The Company's DSO project contains, based on historical estimates that are not in compliance with NI 43-101, in excess of 100 million tonnes of direct shipping quality ore (see news release 08-05, February 5, 2008). The historical estimates contained in this news release of quantities of direct shipping quality ore are not in accordance with the mineral resources or mineral reserves classifications contained in the CIM Definition Standards on Mineral Resources and Mineral Reserves, as required by National Instrument 43-101 ("NI 43-101"). Accordingly, NML is not treating these historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and such historical estimates should not be relied upon. A qualified person has not done sufficient work to date to classify the historical estimates as current mineral resources or mineral reserves. The term "ore" in this release is being used in a descriptive sense for historical accuracy, and is not to be misconstrued as representing current economic viability. A feasibility study has not been completed in respect of the DSO properties and there is no certainty the proposed operations will be economically viable.

The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries. For further information, please visit www.nmlresources.com, www.tatasteel.com and www.corusgroup.com.

This release may contain forward looking statements within the meaning of the "safe harbor" provisions of US laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. New Millennium does not assume any obligation to update any forward looking information contained in this news release.

No regulatory authority has approved or disapproved the content of this release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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