Aberdeen International Inc.

Aberdeen International Inc.

December 12, 2007 22:24 ET

Aberdeen Announces Net Asset Value of $0.94 Per Share and Third Quarter Financial Results

- Aberdeen to host conference call on Monday, December 17th at 10:00am ET

TORONTO, ONTARIO--(Marketwire - Dec. 12, 2007) - ABERDEEN INTERNATIONAL INC. ("Aberdeen" or the "Company") (TSX VENTURE:AAB) is pleased to announce that it has released its financial results for the quarter and nine months ended October 31, 2007.

During the quarter, Aberdeen has actively pursued its transition to a Global Investment and Merchant Banking Company focusing on making key investments in the Junior Resource Sector.

To highlight our focus as a Global Investment Company, Aberdeen will declare its NAV at the end of each quarter. For the 3rd quarter ended October 31, 2007, Aberdeen's NAV was $96.5 million, or $0.94 per share. Aberdeen's NAV is calculated as follows:

- Cash and cash equivalents of $43.6 million, or $0.43 per share, plus

- Estimated Fair Market Value of our Portfolio Investments of $23.0 million, or $0.22 per share, plus

- Discounted Cash Flow value of our Royalty Loan Facility on the Buffels Gold property held by Simmer and Jack PTY (SJ:SIM) and First Uranium Corporation (TSX:FIU) of $42.5 million, or $0.41 per share, plus

- Other assets of $2.3 million, or $0.02 per share, less

- Total liabilities of $14.9 million, or $0.14 per share (including $12.8 million in future tax liabilities)

Stan Bharti, Chairman of Aberdeen stated, "this quarter has seen Aberdeen complete its transition to a publicly traded investment company focused on the junior resource sector. We have made a number of strategic investments in line with our business model that should have an enormous impact on our NAV over the next 18 months. In our investment in Central Sun Mining, we identified a great asset with high potential that was underfunded and in need of a strategic focus on its most valuable projects. We provided the direction to re-capitalize the company, re-structure its share capital and brought the technical expertise to grow its exploration potential." Mr. Bharti also commented that, "in addition to our public investments we have taken significant positions in a number of private companies where we can maximize our seed level participation from an economic and board representation level. Couple this with a valuble asset such as our Simmers Royalty Loan, which is demonstrating increasing value and our share price should clearly be more reflective of our NAV of $0.94."

During the 3rd quarter, Aberdeen recorded earnings of $3.6 million. The earnings include a $11.0 million unrealized gain on investments (after-tax: $7.0 million) along with royalty and interest income of $1.5 million, partially offset by a $2.1 million decline in the value of the Royalty Loan Facility, primarily due to a weaker US dollar. Aberdeen also incurred general and administrative expenses of $3.6 million, largely related to stock option expense ($2.2 million) and an accrued bonus on the portfolio gain ($1.1 million). Aberdeen also recorded a tax provision of $3.1 million, largely due to the strong earnings performance during the quarter.

The 3rd quarter was especially active due to the large number of Portfolio Investments made totaling $12.0 million, including a $7.0 million investment in Central Sun Mining Inc. (TSX:CSM) (formerly Glencairn Gold Corporation) concurrent with the appointment of George Faught and Stan Bharti to the Board of Central Sun Mining Inc. Stan Bharti was also appointed to the Board of Kansai Mining Corporation (TSX:KAN).

Aberdeen's Royalty Loan Facility provided royalty and interest income of $0.9 million in revenue this quarter as the price of gold continued to appreciate. At current gold prices, the graduated royalty under the Royalty Loan Facility has reached a level of 4.75% on all gold produced by the Simmers' underground Buffels mine as well as the Tailings Recovery Project operated by First Uranium. Based on the forecasted gold production at both operations, Aberdeen expects to receive up to US$11 million in royalty revenue from October 1, 2007 until the end of the loan facility at December 31, 2008.

Aberdeen is also the sole recorded and beneficial owner of a 100% undivided interest in exploration licences in Ethiopia covering an aggregate of 2,674 km2 in the Northern Regional State of Tigray and 1,766 km2 in the Western regional State of Asosa. Subsequent to the close of the quarter, Aberdeen agreed to vend these highly prospective exploration licences to Avion Resources Corp (TSX:AVR) as previously reported.

George Faught, Aberdeen's President and CEO, stated "Aberdeen has been active this quarter in sourcing and completing a number of key investments in early stage resource companies, both public and private. We have identified a number of other opportunities for the next quarter and are actively pursuing the growth of our investment portfolio. With respect to our Royalty Loan Facility, we are following the progress on the Buffels mines closely and we are quite pleased that forecasted production over the life of the underground mine will be higher than previously thought, in part the result of the refurbishment of the high-grade Number 5 shaft and the commissioning of a new CIP gold plant. In addition, the First Uranium Tailings Recovery Project will recover its first gold in December 2007 and is ramping up to previously forecasted production levels."

Aberdeen has the right to convert its Royalty Loan Facility into shares of Simmers at R0.80 per share, subject to Simmers' shareholder approval. If the share conversion is not approved by Simmers' shareholders, then Aberdeen will receive a 1% NSR on all gold produced from the Buffels underground mine as well as the Tailings Recovery Project in perpetuity. This 1% royalty is in addition to the graduated royalty (currently 4.75%) which will be received through the end of December 2008.

George Faught also stated, "we are currently considering the Conversion Right under the Royalty Loan Agreement with Simmers given the recent pullback in Simmers' share value. While the weakening U.S dollar exchange rate is a factor in our decision, now may be the best time to request the loan conversion, thereby allowing Aberdeen to crystallize the full value of the Royalty Loan.

About Aberdeen International Inc:

Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-IPO and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; (ii) are undervalued in foreign capital markets; and (iii) operate in jurisdictions with low to moderate local political risk. Aberdeen will seek to provide value-added managerial and board advisory services to companies. The Corporation's intention will be to optimize the return on its investment over an 18 to 24 month investment time frame.

Please visit the Company's web site at www.aberdeeninternational.ca or write us at info@aberdeeninternational.ca.

Aberdeen will host a conference call to update shareholders on Monday, December 17th at 10:00a.m. E.T. Stan Bharti and George Faught will moderate the call.

Date: Monday, December 17th
Time: 10:00 a.m. E.T
Local Callers: 416-620-3447
North American Callers: 1-800-952-4972 toll free
International Callers: 1-416-620-3447

Instant replay

Dial-in number(s): 416-695-5800 / 800-408-3053 Passcode: 3246017

Cautionary Notes

Cautionary Note Regarding Forward-Looking Information - This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, valuations of investments, proposed transactions and investments, investment philosophy and liabilities and commitments. Generally, forward looking information can be identified by the use of forward-looking terminology 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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; general other risks of the mining industry and investment industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.


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