Bullion River Gold Corp.
OTC Bulletin Board : BLRVE

Bullion River Gold Corp.

April 05, 2007 11:24 ET

Bullion River Gold Corp. Reports First Revenue From Production, Announces Year-End Results for Fiscal 2006

Revenue produced during the fourth quarter totaled $804,190

RENO, NEVADA--(CCNMatthews - April 5, 2007) - Bullion River Gold Corp. (OTCBB:BLRV) today announced its financial results for the year ended December 31, 2006. The company's financial statements conform to accounting principles generally accepted in the United States (US GAAP). Currency amounts are expressed in U.S. dollars unless otherwise noted.

Bullion River reported revenue of $804,190 for the fiscal year 2006, representing the company's first quarter of revenue. The company sold 1,281 ounces of gold at an average price of $624.29 and 359 ounces of silver at an average price of $13.05. All the revenue was produced at the French Gulch mine during the fourth quarter, and year-end inventories stood at 197 ounces of gold. For the full 2006 fiscal year, the company reported a net comprehensive loss of $15.6 million, or 29 cents per basic and diluted share, compared to a net comprehensive loss of $5.4 million or 17 cents per basic and diluted share for fiscal year 2005.

Commenting on the results, Peter M. Kuhn, president of Bullion River Gold Corp., said the first quarter of revenue was a major milestone. "In 2006 we worked hard to deploy capital efficiently and effectively at the French Gulch mine," Kuhn said. "Our operations at the mine are improving daily, and we will see our revenue grow substantially in 2007," he said.

The company's other key accomplishments included:

- Closure of private placements that totaled $8.2 million in equity funding and $5.5 million in debentures. The funds were earmarked for working capital and to improve the company's production.

- Commissioning the mill at the French Gulch mine. The company invested almost $1 million in renovating the mill.

- Completion of the test-mining phase at French Gulch. The successful test mining and gold recovery led to the start-up of production on November 10, 2006.

- Expansion into new production areas in the French Gulch mine using the newly developed main decline, opening more stopes in the Lucky 7 vein system and the discovery of an additional vein system in the south of the Lucky 7.

- Purchase of a fleet of heavy underground and surface mining equipment.

- Confirmation of high-grade silver and gold mineralization along with new zones of silver mineralization from its joint venture core-drilling program with Silver Quest Resources Ltd. on the Corcoran Canyon property located in central Nevada.

Outlook for 2007

The company will concentrate on expanding the operating capacity of the French Gulch mine during 2007. By late April, the company expects its newly purchased state-of-the-art crusher to be up and running, increasing the calculated capacity of the mill up to 250 tons per day. The company plans to continue investments in the mill that would more than double this capacity by the end of the year.

In January of 2007, the company announced the technical results of its Canadian Standards 43-101 studies for French Gulch, Mission and Wenban Springs properties. Based upon positive results in the report, the company will continue exploration at French Gulch to increase the gold estimates on this property from the current estimate of 257,800 ounces.

FINANCIAL STATEMENTS

The financial statements of Bullion River Gold Corp. that are attached below were prepared by management, and they should be evaluated together with the related notes filed in our 10-KSB Annual Report filed with the Securities and Exchange Commission.



Bullion River Gold Corp.
Consolidated Balance Sheets
As at December 31, 2006 and 2005

2006 2005
------------ ------------

Assets
Current Assets:
Cash $ 146,509 $ 124,788
Inventory in process 125,065 -
Prepaids and other current assets 460,022 394,396
Supplies inventory 64,065 66,404
------------ ------------
Total current assets 795,661 585,588
------------ ------------

Property and equipment, net 2,556,694 484,149
------------ ------------

Other assets:
Available for sale securities 63,000 -
Deposits 289,177 267,226
Restricted reclamation deposits 170,709 172,950
------------ ------------
Total other assets 522,886 440,176

Total assets $ 3,875,241 $ 1,509,913
------------ ------------
------------ ------------

Liabilities and Shareholders' Equity (Deficit)

Current liabilities:
Accounts payable and accrued liabilities $ 2,144,150 $ 480,398
Loans from related parties - 13,453
Current portion of capital lease obligations 226,608 63,216
Interest payable on convertible debt 118,815 -
------------ ------------
Total current liabilities 2,489,573 557,067
------------ ------------

Long term liabilities:
Convertible debt, net of discount 2,187,348 -
Capital lease obligations 227,732 128,281
Reclamation obligations 109,101 103,041
------------ ------------
Total long term liabilities 2,524,181 231,322
------------ ------------

Total liabilities 5,013,754 788,389
------------ ------------

Shareholders' equity (deficit):
Common stock; authorized 200,000,000 shares,
$0.001 par value.
Issued and outstanding 59,282,372 and
39,243,581 respectively. 59,282 39,300
Additional paid in capital 22,836,794 8,825,523
Shares subscribed 15,244 387,500
Other comprehensive income 18,038 -
Accumulated deficit (24,067,871) (8,530,799)
------------ ------------
Total shareholders' equity (deficit) (1,138,513) 721,524

------------ ------------
Total liabilities and shareholders'
equity (deficit) $ 3,875,241 $ 1,509,913
------------ ------------
------------ ------------

The related notes in the 10-KSB are an integral part of these consolidated
financial statements.


Bullion River Gold Corp.
Consolidated Statements of Operations
For the Years Ending December 31, 2006 and 2005


2006 2005
------------ ------------

Revenues:
Precious metal sales $ 804,190 $ -
------------ ------------

Cost of goods sold:
Direct production expenses 2,310,484 -
------------ ------------

Gross loss (1,506,294) -
------------ ------------

Operating expenses:
Exploration and development 8,755,864 3,303,527
General and administrative 3,366,503 1,968,585
Stock based compensation 556,275 -
Depreciation and accretion 433,691 91,667
------------ ------------
Total operating expenses 13,112,333 5,363,779
------------ ------------

Loss from operations (14,618,627) (5,363,779)
------------ ------------

Other income (expense):
Interest income 20,861 19,888
Interest expense (1,043,930) (64,751)
Gain on debt extinguishment - 6,496
Loss on asset disposal (3,399) -
Non-operating income 117,942 -
Other non-operating (6,062) (17,905)
------------ ------------
Total other income (expense) (914,588) (56,272)

------------ ------------
Net loss before income taxes (15,533,215) (5,420,051)
Income taxes (3,857) -
------------ ------------

Net loss (15,537,072) (5,420,051)

Other comprehensive income:
Unrealized holding gains 18,038 -
------------ ------------

Net comprehensive loss $(15,519,034) $ (5,420,051)
------------ ------------
------------ ------------

Basic and diluted loss per share $ (0.29) $ (0.17)
------------ ------------
------------ ------------

Weighted average shares outstanding 53,483,241 32,281,358
------------ ------------
------------ ------------

The related notes in the 10-KSB are an integral part of these consolidated
financial statements.


Bullion River Gold Corp.
Consolidated Cash Flow Statements
For the Years Ending December 31, 2006 and 2005

2006 2005
------------ ------------

Cash Flows From Operating Activities

Net loss for the period $(15,537,072) $ (5,420,051)

Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation expense 427,631 89,626
Accretion expense 6,060 2,041
Amortization related to convertible debt 760,840 -
Equity instruments issued for services
and expenses 1,552,182 -
Net non-cash gains (39,993) (6,496)

Changes in operating assets and liabilities:
(Increase) decrease in:
Inventory in process (125,065) -
Prepaids and other current assets (65,626) (305,129)
Supplies inventory 2,339 (66,404)
Deposits (19,710) (440,176)
(Decrease) increase in:
Accounts payable and accrued liabilities 1,663,752 (135,975)
Interest on convertible debt 118,815 -
Reclamation obligation - 101,000

------------ ------------
Net cash used in operating activities (11,255,847) (6,181,564)
------------ ------------

Cash Flows From Investing Activities

Purchase of fixed assets (2,242,340) (285,714)
Change in investment securities (18,000) -

------------ ------------
Net cash used in investing activities (2,260,340) (285,714)
------------ ------------

Cash Flows From Financing Activities

Loans from related parties (13,453) 13,453
Loan payable - (100,000)
Cash proceeds from sale of convertible debt 5,460,948 -
Cash proceeds from sale of common shares 8,189,821 6,917,676
Offering costs (117,446) (513,580)
Change in unrealized holding gain 18,038 -

------------ ------------
Net cash received from financing activities 13,537,908 6,317,549
------------ ------------

Effect of exchange rate changes on cash - 1,186

------------ ------------
Increase (decrease) in cash 21,721 (148,543)

Cash, beginning of the period 124,788 273,331

------------ ------------
Cash, end of period $ 146,509 $ 124,788
------------ ------------
------------ ------------

The related notes in the 10-KSB are an integral part of these consolidated
financial statements.


About Bullion River Gold Corp

Bullion River Gold Corp. is an American-based mineral exploration company focusing on regions containing gold-silver deposits predominantly located in the Western United States. The company has seven properties, five of which are located in Nevada. Two of the Nevada properties are considered advanced projects and three are considered grassroots projects. The three remaining properties are in California. All three of these properties are past producers.

For more information, contact Chris Marcus, Investor Relations at Bullion River Gold Corp. at (800) 540-BLRV (2578) or at chris@fyremarketing.com the Company's website at www.bullionriver.com or the U.S. Securities & Exchange Commission's website at www.sec.gov/ to review Bullion River's latest filings.

This release contains certain statements that are "forward-looking" statements (as the term is defined in the Private Securities Litigation Reform Act of 1995) including statements regarding SEC approval and the sufficiency of the funds raised. Any such forward-looking statements are inherently speculative and are based on currently available information, operating plans and projections about future expectations and trends. As such, they are subject to numerous risks and uncertainties, such as general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations, and other factors over which Bullion River Gold Corp. may have little or no control. Actual results and performance may be significantly different from expectations or trends expressed or implied by such forward-looking statements. Bullion River Gold Corp. expressly disclaims any obligation to update the statements contained in this release.

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