Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

December 01, 2008 13:52 ET

Amazon Releases Results for Quarter Ended September 30, 2008 and Provides Corporate Update

TORONTO, ONTARIO--(Marketwire - Dec. 1, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES



Attention Business/Financial Editors:

Amazon Mining Holding Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company")
announced today its unaudited interim consolidated financial statements for
the three and nine-month period ended September 30, 2008 and provides the
following corporate update.
Reports indicated for the three-month period ended September 30, 2008
there was a profit of (pnds stlg)163,841 compared to a loss of (pnds
stlg)69,445 for the three-month period ended October 31, 2007. For the
nine-month period ended September 30, 2008, the net loss increased to (pnds
stlg)2,502,585 from a loss of (pnds stlg)199,655 for the nine-month period
ended October 31, 2007. The loss widened during Q1 2008 due to the December
2007 commencement of active exploration activities. Subsequent to this period,
the Company has substantially curtailed its exploration expenditures. The
small profit reported in the quarter is due to Canadian dollar foreign
exchange gains versus the British pound.

Q3 2008 and Subsequent Period Summary:

- Exploration expenditures for Q3-2008 aggregated to (pnds stlg)192,764
significantly reduced from (pnds stlg)799,468 spent in Q2-2008;

- Preliminary exploration success at Madeira Gold property: this
determination arrived at due to initial reconnaissance work proving
gold mineralization extending beyond banks of river;

- Staked the Cerrado Verde Potash Project;

- Discontinued exploration and property payments at 3 projects:
Tocantins, Lavras and Terra Branca projects were dropped saving a
projected $6.5MM in planned exploration and property payments;

- Reduced full-time staff from 38 to 6 employees;

- Established technical advisory committee to assist management,
consisting of Dr. Richard Garnett, Ysao Munemassa, and Persio
Mandetta, and

- Tim Slater replaced Manoel Cerqueira as interim CFO.

Amazon currently has a working capital position of approximately (pnds
stlg)5.0MM (Cdn$9.0MM) putting the Company in a strong position to advance its
Madeira and Cerrado Verde projects, whilst investigating new opportunities.
Commenting, President & Chief Executive Officer, Cristiano Veloso, said:
"This past quarter marked a dramatic deterioration in global economic
conditions negatively impacting many smaller exploration companies. Amazon has
reacted promptly to preserve its working capital positioning the Company to
benefit from the exceptional opportunities it believes will be afforded given
current stressed markets".

Other Matters

Manoel Cerqueria and Oscar Yokoi resigned effective July 9, 2008. Mr.
Cerqueira continued in his capacity as CFO until October 25, 2008 following
which Tim Slater assumed the role and responsibility of interim CFO.

About Amazon

Amazon is listed on the TSX Venture Exchange and is a mineral exploration
company engaged in creating shareholder value via cost effectively advancing
the Madeira Gold Project and the Cerrado Verde Potash Project, while
diligently assessing merger and acquisition opportunities. Given the current
and foreseeable economic climate, Amazon is preserving cash and adopting a
highly conservative approach to assessing opportunities.

On behalf of the Board of Directors of Amazon Mining Holding Plc,
Cristiano Veloso, President & Chief Executive Officer

Cautionary Language and Forward Looking Statements

THIS PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH
INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE FINANCIAL
OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND ITS PROJECTS,
STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION PROSPECTS, IDENTIFICATION OF
MINERAL RESERVES, COSTS OF AND CAPITAL FOR EXPLORATION PROJECTS, EXPLORATION
EXPENDITURES, TIMING OF FUTURE EXPLORATION AND PERMITTING, REQUIREMENTS FOR
ADDITIONAL CAPITAL, GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL
RISKS, RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF
INSURANCE COVERAGE. FORWARD LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED BY
THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR "DOES NOT EXPECT" OR "IS
EXPECTED", "ANTICIPATES" OR "DOES NOT ANTICIPATE", OR "BELIEVES", "INTENDS",
"FORECASTS", "BUDGET", "SCHEDULED", "ESTIMATES" OR VARIATIONS OF SUCH WORDS OR
PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT, OR RESULTS "MAY", "COULD",
"WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR" OR "BE ACHIEVED". FORWARD
LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE
COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO
ASSURANCES THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS
ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE
ANTICIPATED IN SAID STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE
RELIANCE ON FORWARD-LOOKING STATEMENTS.

Readers are cautioned not to rely solely on the summary of such
information contained in this release and are directed to the complete set of
drill results posted on Amazon's website (www.amazonplc.com) and filed on
SEDAR (www.sedar.com) and any future amendments to such. Readers are also
directed to the cautionary notices and disclaimers contained herein.



AMAZON MINING HOLDING PLC

CONSOLIDATED INCOME STATEMENT

(Unaudited) 3 months 3 months 9 months 9 months
ended ended ended ended
30 Sept 31 Oct 30 Sept 31 Oct
2008 2007 2008 2007
(pnds stlg) (pnds stlg) (pnds stlg) (pnds stlg)

Administrative expenses (232,782) (70,365) (663,650) (203,521)
Impairment loss (20,750) - (2,092,464) -
----------- ----------- ----------- -----------

Operating loss (253,532) (70,365) (2,756,114) (203,521)

Finance income 43,036 920 116,095 6,690
Exchange gains/(losses) 374,337 - 137,434 (1,827)
----------- ----------- ----------- -----------
Profit/(loss) before
taxation 163,841 (69,445) (2,502,585) (198,658)

Taxation - - - 997
----------- ----------- ----------- -----------
Profit/(loss) for
the period 163,841 (69,445) (2,502,585) (199,655)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Basic and diluted
earnings/(loss) per
ordinary share 0.59p (0.49p) (9.09p) (1.60p)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------



AMAZON MINING HOLDING PLC

CONSOLIDATED BALANCE SHEET
(Unaudited)
Note 30 Sept 31 Dec
2008 2007
(pnds stlg) (pnds stlg)

Intangible exploration assets 3 337,621 878,803
Property, plant and equipment 4 37,673 10,739
----------- -----------
375,294 889,542
----------- -----------

Other receivables and prepayments 55,104 11,390
Cash and cash equivalents 5,167,443 7,393,769
----------- -----------
Total current assets 5,222,547 7,405,159
----------- -----------

Total assets 5,597,841 8,294,701
----------- -----------
----------- -----------
Equity

Issued share capital 5 6,879,789 6,879,789
Warrant reserve 6 590,480 590,480
Share premium 3,620,082 3,620,082
Translation reserve 50,314 30,082
Merger reserve (2,727,227) (2,727,227)
Accumulated losses (2,957,057) (484,036)
----------- -----------
5,456,381 7,909,170
----------- -----------

Liabilities
Trade and other payables 141,460 385,531
----------- -----------
Total liabilities 141,460 385,531
----------- -----------

Total equity and liabilities 5,597,841 8,294,701
----------- -----------
----------- -----------



AMAZON MINING HOLDING PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited) 3 months 3 months 9 months 9 months
ended ended ended ended
30 Sept 31 Oct 30 Sept 31 Oct
2008 2007 2008 2007
(pnds stlg) (pnds stlg) (pnds stlg) (pnds stlg)

Cash flows from operating
activities:
Operating loss (253,532) (70,365) (2,756,114) (203,521)
Adjustments for:
Depreciation 1,609 69 3,391 119
Impairment loss 20,750 - 2,092,464 -
Share-based payments 10,272 - 29,564 -
Loss on disposal of fixed
assets 1,919 - 1,919 -
Decrease/(increase) in
other receivables and
prepayments 40,127 (177,090) (43,714) (177,846)
(Decrease)/increase in
trade and other payables (66,192) 189,419 (231,102) 227,289
----------- ----------- ----------- -----------
Cash used in operating
activities (245,047) (57,967) (903,592) (153,959)
Income taxes paid - - - (853)
----------- ----------- ----------- -----------
Net cash outflow from
operating activities (245,047) (57,967) (903,592) (154,812)
----------- ----------- ----------- -----------
Cash flows from investing
activities:
Interest received 30,065 920 103,124 6,805
Acquisition of intangible
exploration assets (192,764) (129,959) (1,434,302) (403,210)
Acquisition of property,
plant and equipment ( 3,716) ( 473) ( 32,162) ( 3,544)
Net cash outflow from
investing activities (166,415) (129,512) (1,363,340) (399,949)
----------- ----------- ----------- -----------
Issue of share capital - - - 649,999
Payment of issue expenses - (15,744) - (15,744)
----------- ----------- ----------- -----------
Net cash flow from
financing activities - (15,744) - 634,255
----------- ----------- ----------- -----------

Net (decrease)/increase
in cash and cash
equivalents (411,462) (203,223) (2,266,932) 79,494
Cash and cash equivalents
at start of period 5,297,506 326,280 7,393,769 41,895
Exchange differences 281,399 1,678 40,606 3,346
----------- ----------- ----------- -----------
Cash and cash equivalents
at end of period 5,167,443 124,735 5,167,443 124,735
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------



AMAZON MINING HOLDING PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Unaudited)

From 1 May 2007 to 31 December 2007

Issued Share Warrants Merger
capital premium reserve reserve
(pnds stlg) (pnds stlg) (pnds stlg)

Balance at 1 May 2007 3,546,456 203,259 - (2,727,227)
Shares issued during
period 3,333,333 4,006,110 - -
Share warrants issued
during period - - 590,480 -
Expenses of issue - (696,676) - -
Share based payments - 107,389 - -
Loss for the period - - - -
Foreign exchange
differences - - - -
----------- ----------- ----------- -----------
Balance at
31 December 2007 6,879,789 3,620,082 590,480 (2,727,227)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------


Accumulated Translation
losses reserve Total
(pnds stlg) (pnds stlg) (pnds stlg)

Balance at 1 May 2007 (169,601) (831) 852,056
Shares issued during
period - - 7,339,443
Share warrants issued
during period - - 590,480
Expenses of issue - - (696,676)
Share based payments 28,799 - 136,188
Loss for the period (343,234) - (343,234)
Foreign exchange
differences - 30,913 30,913
----------- ----------- -----------
Balance at
31 December 2007 (484,036) 30,082 7,909,170
----------- ----------- -----------
----------- ----------- -----------



From 1 January 2008 to 30 September 2008

Issued Share Warrants Merger
capital premium reserve reserve
(pnds stlg) (pnds stlg) (pnds stlg)

Balance at 1 January
2008 6,879,789 3,620,082 590,480 (2,727,227)
Loss for period - - - -
Share-based payments - - - -
Foreign exchange
differences - - - -
----------- ----------- ----------- -----------
Balance at
30 Sept 2008 6,879,789 3,620,082 590,480 (2,727,227)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------


Accumulated Translation
losses reserve Total
(pnds stlg) (pnds stlg) (pnds stlg)

Balance at 1 January
2008 (484,036) 30,082 7,909,170
Loss for period (2,502,585) - (2,502,585)
Share-based payments 29,564 - 29,564
Foreign exchange
differences - 20,232 20,232
----------- ----------- -----------
Balance at
30 Sept 2008 (2,957,057) 50,314 5,456,381
----------- ----------- -----------
----------- ----------- -----------

The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release and the information contained herein.

Contact Information

  • Amazon Mining Holding Plc
    Cristiano Veloso
    President & Chief Executive Officer
    +44 (0) 20 8133 7607
    +44(0)20 7405 7773 (FAX)
    Email: cv@amazonplc.com

    Amazon Mining Holding Plc
    Jed Richardson
    VP Corporate Development
    (416) 866-2966
    (416) 867-9393 (FAX)
    Email: jed@amazonplc.com
    Website: www.amazonplc.com