Black Bull Resources Inc.
TSX VENTURE : BBS

Black Bull Resources Inc.

February 03, 2011 09:18 ET

Black Bull Resources Inc. Announces September 30, 2010-Annual Financial Statement Release

SHELBURNE, NOVA SCOTIA--(Marketwire - Feb. 3, 2011) - Black Bull Resources Inc. (TSX VENTURE:BBS) released the Audited Financial Statements and Management Discussion & Analysis (MD&A) for the year ended September 30, 2010.

The Company reports a net loss for the year of $5,576,968 ($2,883,828 in 2009) or $0.06 per share ($0.03 in 2009). The loss in 2010 includes a write-down of mineral claims and deferred costs of $3,904,044 to reflect the absence of objective evidence of valuation in accordance with Canadian GAAP. In addition there was a write-down of property, plant and equipment as well as inventory of $712,138. Mineral revenue of $153,197 ($261,983 in 2009) consisted of existing processed sand inventory as well as damp unprocessed stone sales. The Company recorded $5,117,527 ($2,059,212 in 2009) in non-cash operating expenses resulting in a net cash loss from operations of $459,441 ($824,615 in 2009) or $0.01 per share ($0.01 in 2009).

For the fourth quarter, the Company reports a net loss of $4,846,746 ($424,985 in 2009) or $0.05 per share ($0.00 in 2009). This loss included the write-down of mineral claims, deferred costs, property, plant and equipment, and inventory indicated above. The Company recorded $4,720,544 ($220,135 in 2009) in non-cash operating items resulting in a net cash loss from operations of $126,202 ($204,850 in 2009) or $0.00 per share ($0.00 in 2009). Net sales for this quarter were $9,920 ($23,085 in 2009).

"As we end 2010 at Black Bull Resources Inc., we have achieved the objective of selling the remaining inventory and redundant assets," says Joseph MacDonald President and CEO. "While the Company's future is uncertain, this sale together with a reduced cash burn gives the Company time to seek long term strategic options for its resource."

In 2011, Management will continue to pursue other opportunities for Black Bull Resources Inc. with a focus on attracting outside interest in the company. It is clear that much uncertainty remains regarding the viability of Black Bull Resources Inc.

About Black Bull Resources Inc.

Black Bull Resources Inc. is a Canadian mining company based in Nova Scotia that owns the White Rock Mine near Shelburne. The mine produces a unique, bright, white, high-purity quartz, marketed under the Scotia White trademark which is used in a range of value-added, specialty products.

The White Rock Property also contains an identified resource of kaolin and mica.

Further detailed information may be obtained from the Company's website www.blackbullresources.com or corporate filings at www.SEDAR.com.

FORWARD LOOKING STATEMENTS: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation statements regarding the Company's mining properties, development results or future plans, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in mineral prices, fluctuations in currency exchange rates, uncertainties relating to the availability and costs of financing needed in the future, the capital and operating costs varying significantly from estimates, delays in the development of projects, as well as those risk factors discussed or referred to in Management's Discussion and Analysis under the heading "[Risks and Uncertainties]" and other documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Unless required by law, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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