New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

August 28, 2009 17:15 ET

New Millennium Capital Corp. Announces Financial Results for the Second Quarter Ending June 30, 2009

CALGARY, ALBERTA--(Marketwire - Aug. 28, 2009) -

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 second quarter ended June 30, 2009.

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 the three months ended June 30, 2009, NML realized a net loss of $270,000 or a loss of $0.00 per share compared to a net loss of $735,000 or a loss of $0.01 per share for the corresponding period in 2008. This loss represents expenses of $622,000 (2008 - $936,000) net of investment income of $54,000 (2008 - $45,000) and future income taxes recoverable of $298,000 (2008 - $156,000). The most significant expense items were general and administrative of $412,000 (2008 - $477,000), professional fees of $166,000 (2008 - $258,000) and market development of $30,000 (2008 - $191,000).

The net loss for the six month period ended June 30, 2009 was $1,918,000 or $0.01 loss per share compared to a net loss of $1,409,000 or $0.01 per share for the corresponding period in 2008. This loss represents expenses of $2,178,000 (2008 - $1,856,000), reduction in fair value of long-term investments of $180,000 (2008 - nil), net of investment income of $100,000 (2008 - $104,000) and future income taxes recoverable of $340,000 (2008 - $343,000). Again, the most significant expense items were general and administrative of $1,647,000 (2008 - $985,000), professional fees of $370,000 (2008 - $487,000) and market development of $64,000 (2008 - $366,000).

As at June 30, 2009, the carrying value of mineral properties increased to $38,345,000 from $35,667,000 as of December 31, 2008 an increase of $2,678,000. The main components of this increase were mineral licenses ($95,000), resource evaluation ($2,097,000), drilling ($109,000), environmental ($841,000) and field labour and supplies ($113,000), which were partially offset by tax credits and mining duties ($577,000).

The Company's management has made an assessment of the fair value of the long-term investments. The Company estimates the fair value of the investments 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 investments compared to the short-term interest rate currently being accrued by the Company. The outcome of the assessment was included above in the Company's net loss as the change in fair value of the long-term investments.

The significant second quarter events, which are fully described in the Company's Second Quarter Report under the heading of Management's Discussion and Analysis ("MD&A"), were: (1) the announcement and subsequent updating of the Company's 2009 business objectives; (2) the report on the progress of the Direct Shipping Ore ("DSO") Project; and (3) the report on the progress of the Taconite Projects.

About New Millennium

New Millennium controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation is also advancing to near term production its DSO Project. Tata Steel, one of the world's largest steel corporations, owns 19.9% of New Millennium and is the Corporation's largest shareholder and strategic partner. Tata has an exclusive option to participate in the DSO Project, a commitment to take the resulting production, and an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KeMag Project (see news release 08-17, October 1, 2008 and news release 09-11, June 30, 2009). The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of 29.3% Fe (see news release 06-13, July 5 2006 and 07-11, July 17, 2007); KeMag contains 2.1 billion tonnes of Proven and Probable reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe (see news release 09-01, January 15, 2009).

The Corporation's DSO Project contains 52.5 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.9% Fe, 3.5 million tonnes of measured and indicated Mineral Resources at an average grade of 59.0% Fe, 5.8 million tonnes of Inferred Resources at an average grade of 55.8% Fe and about 40.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03, February 10, 2009 and news release 09-05, March 4, 2009). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the historical estimate should not be relied upon.

Dean Journeaux, Eng., Jean-Charles Bourassa, Eng. and Moulaye Melainine, Eng., are the Qualified Persons as defined in NI 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release on behalf of NML.

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.

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management of the Corporation's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Corporation's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward looking statements.

Neither the 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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