Blue Pearl Mining Ltd.

Blue Pearl Mining Ltd.

March 12, 2007 08:30 ET

Blue Pearl to Prepay Second Lien Credit Facility

TORONTO, ONTARIO--(CCNMatthews - March 12, 2007) - Blue Pearl Mining Ltd., (TSX:BLE)(TSX:BLE.WT)(TSX:BLE.WT.A)(FRANKFURT:A6R) the world's largest publicly traded, pure molybdenum producer, today announced that this week it will prepay the US$62 million Second Lien Credit Facility it entered into last October as part of the debt financing to purchase Thompson Creek Metals Company (TCMC). At the request of Blue Pearl, First Lien Credit Facility lenders have allowed the prepayment by waiving their right to be paid prior to the Second Lien lenders.

"We're delighted that the lenders involved in the First Lien Credit Facility have given their approval for Blue Pearl to pay off the Second Lien," said Ian McDonald, Executive Chairman.

"The Second Lien was necessary to complete the acquisition but it had an especially high interest rate of LIBOR plus 10 percentage points, costing Blue Pearl about US$9 million per year in interest charges.

"The molybdenum price has remained strong and our company has accumulated significant cash balances that allowed for this prepayment."

The remaining US$340 million First Lien Credit Facility has an interest rate of LIBOR plus 4.75 percentage points. Principal payments of US$18.75 million per quarter are required on the First Lien in 2007.

"Paying down debt is among the priorities we have announced for Blue Pearl," Mr. McDonald stated. "At the end of March, following just over five months of operations since the TCMC acquisition and after we have made our first regular quarterly payment on the First Lien, Blue Pearl's bank debt will be less than $320 million, a considerable reduction from the total bank debt of $402 million incurred for the acquisition.

"As we announced in our January 16, 2007 news release on our outlook and initiatives, another priority is the development of new mine plans at our Thompson Creek and Endako mines based on a re-evaluation of the mineral reserves and mineral resources assuming a long-term molybdenum price of US$10 per pound. Previous mine plans had assumed a long-term price of US$5 per pound at Thompson Creek and US$3.50 per pound at Endako.

"We are also focused on bringing our high-grade Davidson deposit into production. A feasibility study for this is currently being conducted.

"Revised mineral resources and reserves for all three operations are expected in the near future," he said.

About Blue Pearl Mining Ltd.

Blue Pearl is the world's fifth-largest molybdenum producer. The company in October 2006 purchased the Thompson Creek open-pit molybdenum mine and mill in Idaho, the Endako open-pit mine, mill and roasting facility in Northern British Columbia, and a metallurgical roasting facility in Langeloth, Pennsylvania. Blue Pearl is also developing the Davidson high-grade underground molybdenum project near Smithers, B.C. The company has more than 700 employees. Its head office is in Toronto, Ontario. It also has executive offices in Vancouver, British Columbia and Denver, Colorado (including sales and marketing). More information is available at

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of Blue Pearl, its subsidiaries and its projects, the future price of molybdenum, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims and limitations of insurance coverage.
Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events 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 Blue Pearl and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the anticipated benefits of the acquisition not occurring in the expected time frame or at all; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of molybdenum; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in Blue Pearl's short form prospectus dated October 13, 2006 which is available on SEDAR at Although Blue Pearl 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 to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and Blue Pearl disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. 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. Blue Pearl undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

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