Amazon Mining Holding Plc
TSX VENTURE : AMZ

Amazon Mining Holding Plc

September 02, 2008 12:24 ET

Amazon Reports Q2 Results and Company Update

TORONTO, ONTARIO--(Marketwire - Sept. 2, 2008) -



Attention Business/Financial Editors:

TORONTO, ONTARIO--(Marketwire - Sept. 2, 2008) - Amazon Mining Holding
Plc (TSX VENTURE:AMZ) ("Amazon" or the "Company") announced today its
unaudited interim consolidated financial statements for the three and
six-month period ended June 30, 2008. Reports indicated for the three-month
period ended June 30, 2008 the net loss increased substantially to
(pnds stlg)2,205,719 from a loss of (pnds stlg)43,941 compared to the
three-month period ended July 31, 2007. For the six-month period ended June
30, 2008 the net loss increased to (pnds stlg)2,666,426 from a loss of
(pnds stlg)130,210 compared to the six-month period ended July 31, 2007.
The loss widened during Q1-2008 due to the commencement of active
exploration activities late in December 2007.

Q2 2008 and Subsequent Period Summary:

- Project generation continues defined by a strategy that aims to
measure reward versus risk in the context of current global economy;

- Madeira Gold Project: Preliminary exploration has commenced at
Madeira Gold Project and drilling is scheduled to commence during
Q3-2008;

- Tocantins Gold Project: Despite the encouraging initial results from
the first phase diamond drilling program, subsequent detailed ground
magnetic geophysics, auger drilling and soil sampling proved
disappointing prompting the discontinuation of the project;

- Lavras Gold Project: Results from the first phase diamond drilling
program were determined to fall below economically extractable
concentrations and the project was discontinued;

- Terra Branca Diamond Project: Prospective project economics have
been negatively impacted by the appreciation of the Brazilian Real
and attempts to vend or joint venture the property to a third party
were significantly hampered by current adverse market conditions.
The project was discontinued to avoid ongoing onerous property
payments;

- Exploration expenditures for Q2-2008 aggregated to
(pnds stlg)771,293 up from (pnds stlg)442,070 in preceding
Q1-2008; and

- Jed Richardson was appointed Vice President, Corporate Development
to strengthen management presence in Toronto and assist with project
evaluation.

Amazon currently has working capital position of approximately (pnds
stlg)4.8MM (Cdn$9.5MM) putting the Company in a strong position to advance the
Madeira project and investigate new opportunities. Commenting, President &
CEO, Cristiano Veloso, said: "We look forward to potentially very exciting
months ahead. Amazon's initial portfolio was assembled with a very limited
budget, thanks to a strong presence in Brazil in a market favourable to gold
exploration. In recent months we have added new capacity in project
evaluation, and consider the Company well equipped to secure value building
opportunities in Brazil."

About Amazon

Amazon is listed on the TSX Venture Exchange and is a mineral exploration
company engaged in acquiring and developing gold exploration properties in
Brazil. Its strategic focus is to acquire projects with demonstrated potential
for hosting gold deposits and to define resources through exploration and
drilling campaigns.

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 6 months 6 months
ended ended ended ended
30 June 31 Jul 30 June 31 Jul
2008 2007 2008 2007
(pnds stlg) (pnds stlg) (pnds stlg) (pnds stlg)

Administrative expenses (205,509) (49,826) (430,868) (133,156)
Impairment loss (2,071,714) - (2,071,714) -
----------- ----------- ----------- -----------

Operating loss (2,277,223) (49,826) (2,502,582) (133,156)

Finance income 53,970 5,885 73,059 5,770
Exchange gains/
(losses) 17,534 - (236,903) (1,827)
----------- ----------- ----------- -----------
Loss before taxation (2,205,719) (43,941) (2,666,426) (129,213)

Taxation - - - 997
----------- ----------- ----------- -----------

Loss for the period (2,205,719) (43,941) (2,666,426) (130,210)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------

Basic and diluted loss
per ordinary share (8.02p) (0.31p) (9.69p) (0.92p)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------



AMAZON MINING HOLDING PLC

CONSOLIDATED BALANCE SHEET
(Unaudited)

Note 30 June 31 Dec
2008 2007
(pnds stlg) (pnds stlg)

Intangible exploration assets 3 184,885 878,803
Property, plant and equipment 4 39,786 10,739
----------- -----------
224,671 889,542
----------- -----------

Other receivables and prepayments 95,231 11,390
Cash and cash equivalents 5,297,506 7,393,769
----------- -----------
Total current assets 5,392,737 7,405,159
----------- -----------

Total assets 5,617,408 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 164,829 30,082
Merger reserve (2,727,227) (2,727,227)
Accumulated losses (3,131,170) (484,036)
----------- -----------
5,396,783 7,909,170
----------- -----------

Liabilities
Trade and other payables 220,625 385,531
----------- -----------
Total liabilities 220,625 385,531
----------- -----------

Total equity and liabilities 5,617,408 8,294,701
----------- -----------
----------- -----------



AMAZON MINING HOLDING PLC

CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)

3 months 3 months 6 months 6 months
Ended Ended Ended ended
30 Jun 30 Jul 30 Jun 30 Jul
2008 2007 2008 2007
(pnds stlg) (pnds stlg) (pnds stlg) (pnds stlg)

Cash flows from
operating activities:
Operating loss (2,277,223) (49,826) (2,502,582) (133,156)
Adjustments for:
Depreciation 1,211 44 1,782 50
Impairment loss 2,071,714 - 2,071,714 -
Share-based payments 9,608 - 19,292 -
Exchange differences 17,534 (236,903) (1,827)
Increase in other
receivables and
prepayments (36,632) (2,471) (83,840) (755)
(Decrease)/increase in
trade and other
payables (40,365) 3,052 (113,443) (341,630)
----------- ----------- ----------- -----------
Cash used in operating
activities (254,155) (49,201) (843,980) (477,318)
Income taxes paid - - - (853)
----------- ----------- ----------- -----------
Net cash outflow from
operating activities (254,155) (49,201) (843,980) (478,171)

Cash flows from
investing activities:
Interest received 21,266 5,885 21,593 5,770
Acquisition of
intangible
exploration assets (799,468) (213,104) (1,241,538) (285,949)
Acquisition of
property, plant and
equipment (17,149) (2,120) (28,446) (3,161)
----------- ----------- ----------- -----------
Net cash outflow from
investing activities (795,351) (209,339) (1,248,391) (283,340)
----------- ----------- ----------- -----------

Issue of share capital - - - 1,029,499
----------- ----------- ----------- -----------
Net cash flow from
financing activities - - - 1,029,499
----------- ----------- ----------- -----------
Net (decrease)/increase
in cash and cash
equivalents (1,049,506) (258,540) (2,092,371) 267,988
Cash and cash
equivalents at start
of period 6,326,581 587,415 7,393,769 41,895
Exchange differences 20,431 (2,595) (3,892) 16,397
----------- ----------- ----------- -----------
Cash and cash
equivalents at end
of period 5,297,506 326,280 5,297,506 326,280
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------



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) - -
- 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)
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 June 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
31 June 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 (2,666,426) - (2,666,426)
Share-based payments 19,292 - 19,292
Foreign exchange
differences - 134,747 134,747
----------- ----------- -----------
Balance at
31 June 2008 (3,131,170) 164,829 5,396,783
----------- ----------- -----------
----------- ----------- -----------


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