Aberdeen International Inc.

Aberdeen International Inc.

September 15, 2008 13:18 ET

Aberdeen Announces Q2 2009 NAV of $1.10 per Share and Q2 2009 Financial Results

- Realized Gain of $6.9 million on Acquisition of Quinto Mining - Continues Share Buyback Under Issuer Bid - Realized Royalty Income of $1.8 million - Aberdeen to Host Conference Call on Tuesday, September 16th, 2008 at 10:00 am ET

TORONTO, ONTARIO--(Marketwire - Sept. 15, 2008) - ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) is pleased to announce that it has released its financial results for the quarter ending July 31 2008.

As at July 31, 2008, Aberdeen's Net Asset Value ("NAV") was $111.2 million, or $1.10 per share. The components of Aberdeen's NAV are as follows:

- Cash and cash equivalents of $7.7 million;

- Portfolio Investments at fair value of $71.0 million;

- Discounted Cash Flow value of Convertible Royalty Loan Facility on the Buffels Gold operation of $48.2 million;

- Other assets of $5.5 million; less

- Total liabilities of $21.2 million (including $17.7 million in future tax liabilities).

- Shares outstanding at the end of the quarter of 101,209,073.

Aberdeen will host a conference call to update shareholders on Tuesday, September 16, 2008 at 10:00 am ET, which Stan Bharti, Executive Chairman and George Faught, President and CEO, will moderate.

Conference call date: Tuesday, September 16, 2008

Conference call time: 10:00 am ET

Dial-in numbers: 416-695-6140 - Local and International
877-323-2010 - North America Toll Free

Key investment highlights for the quarter included Vast Exploration Inc., a junior oil and gas explorer who acquired a significant exploration block in Kurdistan Iraq; Crowflight Minerals Inc., a Nickel exploration and development company with production slated to begin September 2008 and Allana Resources, an exploration and development firm with Potash assets in Argentina.

Stan Bharti, Chairman of Aberdeen stated, "This quarter, Aberdeen has realized its first significant gain in its portfolio with the closing of the Quinto Mining Corporation transaction, a stock which we held for less than six months before realizing our gain. In addition, we have made significant investments this quarter in Oil and Gas as well as Agriculture to take advantage of growing commodity pricing in these sectors."

Subsequent to the end of the quarter, the Company's NAV has been impacted by the general retreat in the resource sector and as a result, as at September 5, 2008, our portfolio value has dropped 34% since July 31, 2008 to approximately $46.5 million.

George Faught, Aberdeen's President and CEO, stated, "Continued progress in our portfolio and new investments were key highlights of the second quarter. However, the general decline in the equity markets over the past couple of months has eroded much of the appreciation in our portfolio to date. We would re-iterate that our investment strategy calls for us to generally hold investments for 18 to 24 months to optimize the return. We see the current market as being a liquidity driven correction and still believe that the fundamentals of our investment portfolio will ultimately bring significant value appreciation to our shareholders."

On January 31, 2008, Aberdeen announced it had initiated a Normal Course Issuer Bid ("NCIB") to purchase for cancellation its common shares through the facilities of the Toronto Stock Exchange. Based on the public float of 81,888,340 common shares, the Company may repurchase for cancellation a maximum of 8,188,834 shares through January 31, 2009. Subsequent to the end of the quarter, Aberdeen repurchased an additional 6,334,734 common shares at a cost of $0.25 per share. To date, the Company has repurchased 8,056,334 common shares under the NCIB at an average cost of $0.32 per share.

Mr. Faught also states "We feel that the ability to re-purchase Aberdeen shares at such discounted prices represents a highly accretive transaction for our shareholders."

Aberdeen continues to receive royalty income on both the Buffels underground operation and the First Uranium Tailings recovery project. The Aberdeen Convertible Loan Agreement is due to mature December 31, 2008. Aberdeen will call for conversion to equity prior to the loan maturing.

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 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.

Aberdeen International Inc.

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

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.

Contact Information

  • Aberdeen International Inc.
    George Faught
    President and CEO
    (416) 861-5887
    Aberdeen International Inc.
    Stan Bharti
    Executive Chairman
    (416) 861-5876
    Website: www.aberdeeninternational.ca