Black Bull Resources Inc.
TSX VENTURE : BBS

Black Bull Resources Inc.

August 04, 2006 17:17 ET

Black Bull Resources Reports Third Quarter Results

SHELBURNE, NOVA SCOTIA--(CCNMatthews - Aug. 4, 2006) - Black Bull Resources Inc. (TSX VENTURE:BBS) has released its Interim Report including the Financial Statements and Management Discussion & Analysis (MD&A) for the quarter ended June 30, 2006. The Company recorded a net loss during the quarter of $884,100 ($411,768 June 30, 2005) or $0.020 per share ($0.009 June 30, 2005).

The increase in customer response time for sample testing has led to slower-than-anticipated sales and development of sales prospects. The sales during the third fiscal quarter were insufficient to absorb the costs associated with full production and has contributed to the quarter loss.

Early in the third quarter, Black Bull received initial orders from two USA customers. One customer placed a subsequent 1000-ton order for Scotia White™ quartz. Production of this order commenced during the quarter and will be completed in the next quarter. This production has identified efficiency and capacity limitations requiring the Company to address the timeline for the planned Phase 2 expansion.

Black Bull has increased its staffing level at the White Rock Property; since May, two shifts have been operating and are ready for complimentary and/or additional orders. To address the current level of sales, the Company is changing its sales and marketing strategy. Agreements with U.S. Silica Company are being reviewed and additional sales resource personnel are being hired. The Company continues to process large numbers of customer-requested Scotia White™ samples.

As reported in the Financial Statement Notes and MD&A, over the next two fiscal quarters Black Bull will investigate financing options to meet its capital expansion requirements and operating needs, until positive cash flow can be achieved.

About the Company

Black Bull Resources Inc. is a Canadian mining company based in Nova Scotia that operates the White Rock Mine near Shelburne. The Mine produces a 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 which the Company plans to further develop.

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. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed elsewhere in documents that are available to the public.


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

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