Black Hat Capital Inc.

February 28, 2005 19:17 ET

Black Hat Capital Inc.: First Quarter Financial Statements for Period Ended December 31, 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BLACK HAT CAPITAL INC.

TSX VENTURE SYMBOL: BHC.P

FEBRUARY 28, 2005 - 19:17 ET

Black Hat Capital Inc.: First Quarter Financial
Statements for Period Ended December 31, 2004

CALGARY, ALBERTA--(CCNMatthews - Feb. 28, 2005) - Black Hat Capital Inc.
(the "Company") (TSX VENTURE:BHC.P) released today its unaudited
financial statements for the Company's First Quarter ended December 31,
2004. The Company is a Capital Pool Company pursuant to Policy 2.4 of
the TSX Venture Exchange and completed its initial public offering on
December 22, 2004.

The principal business of the Company is to identify and evaluate
companies, assets or businesses with a view to completing a Qualifying
Transaction, (as the term is defined in Policy 2.4). To date, the
Company has not identified a potential Qualifying Transaction and has no
assets other than cash received from a private placement in May and its
recently completed Initial Public Offering.

The net loss for the period ended December 31, 2004 was $7,428 or $0.003
(per share) compared to a loss of $36,345 or $0.018 (per share) for the
period from incorporation on April 29, 2004 to September 30, 2004.



SUMMARY OF INCOME STATEMENT INFORMATION

Income Statement December 31, 2004 September 30, 2004
------------------------------------------------------------------------
Net Income (loss) $ (7,428) $ (36,345)
Per share - basic and diluted $ (0.003) $ (0.018)
Weighted average shares
outstanding - basic $ 2,163,044 $ 2,000,000


The major expenses incurred during the quarter ended December 31, 2004
related to accounting fees paid for the recording and audit ($4,548) of
the Company's financial records, travel and development costs incurred
in the search for identification and evaluation of potential target
companies ($1,636), and share transfer and listing fees ($711).



SUMMARY OF CASH FLOW INFORMATION

Cash Flow December 31, 2004 September 30, 2004
------------------------------------------------------------------------
Cash from operating activities $ 53,767 $ (49,523)
Cash from investing activities $ 0 $ 0
Cash from financial activities $ 197,605 $ 200,000
Increase in cash and
cash equivalents $ 251,372 $ 150,477
Cash and cash equivalents
- beginning of period $ 150,477 $ 0
Cash and cash equivalents
- end of period $ 401,849 $ 150,477


As at December 31, 2004, the Company had net working capital of $387,190
($197,013 - September 30, 2004).



SUMMARY OF BALANCE SHEET INFORMATION

Balance Sheet December 31, 2004 September 30, 2004
------------------------------------------------------------------------
Cash and cash equivalents $ 401,849 $ 150,477
Total assets $ 408,269 $ 212,467
Total liabilities $ 21,079 $ 15,454
Share capital $ 397,605 $ 200,000
Contributed surplus $ 33,358 $ 33,358
Total shareholders' equity $ 387,190 $ 197,013
Total liabilities and
shareholders' equity $ 408,269 $ 212,467


As at December 31, 2004, the Company had accrued liabilities of $21,079
($15,454 September 30, 2004).

Share Capital

The Company is authorized to issue an unlimited number of common shares
and an unlimited number of preferred shares. As at September 30, 2004,
there were 2,000,000 common shares and nil preferred shares issued and
outstanding. As at December 31, 2004, the Company has 3,500,000 common
shares and nil preferred shares issued and outstanding.

On May 17 and 18, 2004, the Company completed a private placement
resulting in the issuance of 2,000,000 common shares for gross proceeds
of $200,000.

On December 22, 2004, the Company completed its Initial Public Offering
pursuant to which it issued 1,500,000 common shares at a price of $0.20
per share for gross proceeds of $300,000 and net proceeds of $265,679.70
after payment of legal fees ($8,435.12), commissions ($30,000),
corporate finance fee ($10,700), and printing and other costs ($885.18)
of the issue. In connection with this offering, the Company granted to
the agent an option to purchase 150,000 common shares at a price of
$0.20 per share, exercisable until July 6, 2006.

The Company has granted to its directors and officers 350,000 incentive
stock options pursuant to its stock option plan at an exercise price of
$0.20 per share expiring May 31, 2009. Any common shares issued pursuant
to the exercise of the incentive stock options prior to the completion
of a Qualifying Transaction must be deposited into escrow.

The Company's unaudited December 31, 2004 financial statements may be
viewed on SEDAR at www.sedar.com.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Black Hat Capital Inc.
    Anthony M. Croll
    (514) 399-9952
    The TSX Venture Exchange Inc. does not accept responsibility for the
    adequacy or accuracy of this release.