SOURCE: North Bay Resources Inc.

April 12, 2010 10:04 ET

North Bay Resources Inc. (NBRI) Announces Full Year, 2009 Financial Results

SKIPPACK, PA--(Marketwire - April 12, 2010) - North Bay Resources Inc. (PINKSHEETS: NBRI) ("North Bay" or the "Company") is pleased to announce that the Company has released its audited financials for fiscal year 2009. The complete report is presented in accordance with generally accepted accounting principles ("GAAP"), and is available on the Company website at www.northbayresources.com. The financial statements have also been included in an amended S-1 Registration Statement filed with the SEC on April 7, 2010.

Income

For the years ended December 31, 2009 and December 31, 2008, the Company's other income related to joint-ventures and mineral claim sales was $85,490 and $156,312, respectively. The Company has spent $38,121 and $18,120 in mineral property costs during each respective period in order to generate cash flows, consisting primarily of claim registration and maintenance fees. On a non-GAAP basis, the Company classifies this income as revenue from operations.

Operating Expenses

For the year ended December 31, 2009, the Company had operating expenses of $658,897, which included general and administrative expenses of $524,746. Operating expenses for the year ended December 31, 2008 were $484,790, which included general and administrative expenses of $409,122. Our increase in operating expenses was mainly from increased expenses for accounting and legal fees, and stock issued for services.

Excluding the effects of stock issued for services and unpaid deferred compensation, non-GAAP operating expenses for the year ended December 31, 2009 were $214,341, of which $80,190 was attributed to general and administrative expenses. For the comparable period ended December 31, 2008, non-GAAP operating expenses were $111,928, of which $36,260 was attributed to general and administrative expenses.

Net Loss/Gain

For the year ended December 31, 2009, we had a net loss of $786,979. Our net loss for the year ended December 31, 2008 was $328,478. The increase in our net loss was due to accounting charges related to bad debt expense, a realized loss on investment stemming from the termination of the Hidalgo joint-venture, and a loss on conversion of debt.

Excluding the effects of stock issued for services, stock issued to convert debt to equity, unpaid deferred compensation, and a one-time impairment charge on investment, the net non-GAAP loss for the year ended December 31, 2009 was $147,938. For the comparable period ended December 31, 2008, our net non-GAAP profit was $44,384. In addition, excluding the effect of accrued expenses for unpaid deferred compensation, the Company has no short-term or long-term debt.

Non-GAAP Financial Measures

The following table excludes from net income (loss) certain non-cash items related to the cost of issuance of the Company's stock for services (primarily related to the fair value of the stock created upon issuance and determined by the share market price on the date of issuance), the cost of the conversion of debt to equity, (primarily related to the fair value of the stock created upon issuance and determined by the share market price on the date of issuance), deferred compensation unpaid and non-recourse, and a one-time impairment charge on investment (primarily from the decrease in the value of investment which the Company believes is not temporary).

The Company believes that these non-GAAP financial measures are useful to investors because they exclude non-cash charges that management excludes when it internally evaluates the performance of the Company's business and makes operating decisions, including internal budgeting. Moreover, management believes these non-GAAP measures reflect the essential core operating activities of North Bay. The Company believes that providing shareholders with the non-GAAP measures that management uses allows investors to better understand the Company's financial performance in comparison to historical periods. In addition, it allows investors to evaluate the Company's performance using the same methodology and information as that used by our management.

Non-GAAP measures are subject to inherent limitations because they do not include all of the expenses included under GAAP, and because they involve the exercise of judgment of which charges are excluded from the non-GAAP financial measure. However, our management compensates for these limitations by providing the relevant disclosure of the items excluded.

                                                          2009        2008
GAAP Net (loss) income                              ($ 786,979) ($ 305,698)
Non-Cash Adjustments
   Expense related to share issuance for services      258,535     180,001
   Expense related to conversion of debt to equity      87,500           -
   Unpaid deferred compensation, non-recourse          186,021     192,861
   Impairment charge on investment                     106,985           -
   Unrealized gain on AFS securities                         -     (22,780)
                                                    ----------  ----------
Non-GAAP Adjusted Net (loss) income                 ($ 147,938) $   44,384

North Bay CEO Perry Leopold commented, "2009 was an important year for North Bay, as it marked our transition from a non-reporting Pink Sheet company to our current registration with the SEC to become a fully-reporting company. For the first time since the company's inception in 2004, our financial statements have been rigorously examined and audited according to generally accepted accounting principles, also known as GAAP accounting. Combined with the non-GAAP measures reported in this press release, we believe we have significantly increased the level of transparency available to shareholders. We look forward to returning to profitability on a non-GAAP operating basis such as we achieved in 2008, and we believe we have laid the groundwork to do just that in fiscal year 2010."

About North Bay Resources Inc.

North Bay Resources Inc. (PINKSHEETS: NBRI) is a junior mining company with over 150 mineral and placer claims encompassing approximately 60,000 acres throughout British Columbia, Canada. The Company's mission is to build a portfolio of viable mining prospects throughout the world and developing them through subsidiaries and JV partners to their full economic potential. North Bay's business plan is based on the Generative Business Model, which is designed to leverage its properties into near-term revenue streams even during the earliest stages of exploration and development. This provides shareholders with multiple opportunities to profit from discoveries while preserving capital and minimizing the risk involved in exploration and development.

The Company has recently filed registration documents with the SEC to become a fully-reporting company. Once the registration is effective, the Company will then be eligible to have its stock listed on the Over-the-Counter Bulletin Board (OTCBB).

SAFE HARBOR FOR FORWARD LOOKING STATEMENTS

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although North Bay Resources Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by North Bay Resources Inc. or any other person that the objective and plans of North Bay Resources Inc. will be achieved.

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