Bullion River Gold Corp.
OTC Bulletin Board : BLRVE

Bullion River Gold Corp.

August 14, 2007 18:02 ET

CORRECTION FROM SOURCE: Bullion River Gold Corp. Reports Second Quarter, Six-Month Results for Fiscal 2007 & Announces Conference Call for Investors

Revenue produced totaled $922,533 during second quarter, up 162 percent from previous quarter

RENO, NEVADA--(Marketwire - Aug. 14, 2007) - Bullion River Gold Corp. would like to issue a clarification regarding the date for the end of the second quarter. The six month period discussed in the second quarter release issued on August 14, 2007 at 4:45PM ET ended June 30, 2007. The correct release follows:

Bullion River Gold Corp. (OTCBB:BLRV) today announced its financial results for the second quarter of the 2007 fiscal year ending June 30, 2007. 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.

The company also announced that senior executives would discuss results from the second quarter during a telephone conference call for shareholders on Wednesday after the markets close. Details regarding the investor conference call can be found at the end of this release.

Bullion River reported revenue of $922,533 for the second quarter of 2007, up 162 percent from first quarter revenue of $352,610. During the second quarter, the company sold 1,382 ounces of gold at an average price of $663.33 and 426 ounces of silver at an average price of $13.30. In addition, inventories at June 30, 2007 stood at 1,089 ounces of gold, slightly lower than the inventory remaining at the end of the first quarter. All the revenue from the second quarter was produced at the French Gulch mine. For comparison purposes, there was no revenue produced during the second quarter of 2006 because the company was in the exploration phase at that time. For the second quarter of 2007, the company reported a net comprehensive loss of $6.4 million, or 10 cents per basic and diluted share, compared to a net comprehensive loss of $3.8 million or 7 cents per basic and diluted share for the second quarter of 2006.

For the six-month period, the company reported revenue of $1.3 million, compared to no revenue during the same period one year ago, and a net comprehensive loss of $11.1 million or 18 cents a share, compared to a loss of $6 million or 12 cents a share one year ago.

The company's loss in the second quarter and six-month period increased from the year-ago period due to higher operational costs associated with ramping up production, compared to its relatively lower costs previously associated with the exploration phase, and an increase in interest expense mainly due to the issuance of convertible debt starting in the third quarter of 2006.

Commenting on the results, Peter M. Kuhn, president of Bullion River Gold Corp., said: "Second quarter revenues represent the best quarter yet for our company, and it's a positive outcome considering that the mill was not operating for about a month during the quarter. But we are pushing hard to do better. We recently started production in the newly discovered vein in the Washington vein system, and we are moving to improve both production and the ore grade."

The company's other recent key accomplishments include:

- Significant new development in the Lucky 7 veins.

- Accumulation of new gold assays samples in key veins that are well above the anticipated level of 1.00 ounce of gold per ton discussed in the independent technical report released in January.

- Discovery of a third vein system in the Washington access drift with samples that returned over 3.00 ounces of gold per ton across a sample width of at least five feet, and the start of production in this vein.

- Exploration for additional veins in the northern open ground, where outcrop areas have already been located on the surface.

Outlook Through Year-End 2007

The company will continue to make investments in equipment to increase production in the French Gulch mine. The company's state-of-the-art crusher is now operating smoothly, and the company will continue investments in the mill that will more than double the 250-ton capacity. Extensive exploration at French Gulch will continue to increase the gold estimates on this property, and the current documented estimate of 257,800 ounces is expected to increase.

Conference Call Details

Shareholders are invited to listen to a live conference call with the company's senior management at 1:30 p.m. Pacific time on Wednesday, August 15, 2007. Senior management will answer questions that have been submitted in advance via email or fax. Those dialing into the call will be in a listen-only mode, and no questions will be taken during the call.

For callers in the US and Canada, the toll-free conference dial-in number is: (888) 515-2179.

For international callers outside Canada, the dial-in conference number is: (706) 634-9722.

Shareholders should submit questions via email or fax prior to 12 p.m. Pacific time on Wednesday, August 15. The email address is: info@bullionriver.com. The fax number is: (775) 324-7893.

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-QSB Quarterly Report filed with the Securities and Exchange Commission.



Bullion River Gold Corp.
Consolidated Balance Sheets
As at June 30, 2007 and December 31, 2006

December 31,
June 30, 2007 2006
------------- --------------
(Unaudited) (Audited)
Assets

Current Assets:
Cash $ 5,374 $ 146,509
Inventory in process 705,100 125,065
Prepaids and other current assets 433,289 460,022
Supplies inventory 13,515 64,065
------------- --------------
Total current assets 1,157,278 795,661
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Property and equipment, net 3,522,515 2,556,694
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Other assets:
Investment securities 108,000 63,000
Deposits 119,400 289,177
Restricted reclamation deposits 172,702 170,709
------------- --------------
Total other assets 400,102 522,886

Total assets $ 5,079,895 $ 3,875,241
------------- --------------
------------- --------------

Liabilities and Shareholders' Deficit

Current liabilities:
Accounts payable and accrued liabilities $ 4,292,711 $ 2,144,150
Short term loans 2,389,749 -
Deferred Revenue 1,790,631 -
Current portion of capital lease obligations 213,057 226,608
Interest payable on convertible debt 182,212 118,815
------------- --------------
Total current liabilities 8,868,360 2,489,573
------------- --------------

Long term liabilities:
Convertible debt, net of discount 4,261,554 2,187,348
Capital lease obligations 213,666 227,732
Reclamation obligations 112,084 109,101
------------- --------------
Total long term liabilities 4,587,304 2,524,181
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Total liabilities 13,455,664 5,013,754
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Shareholders' deficit:
Common stock; authorized 200,000,000 shares,
$0.001 par value.
Issued and outstanding 63,286,239 and
59,282,372, respectively. 63,286 59,282
Additional paid in capital 26,846,347 22,836,794
Shares subscribed - 15,244
Other comprehensive income / (loss) (9,000) 18,038
Accumulated deficit (35,276,402) (24,067,871)
------------- --------------
Total shareholders' deficit (8,375,769) (1,138,513)

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Total liabilities and shareholders' deficit $ 5,079,895 $ 3,875,241
------------- --------------
------------- --------------

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


Bullion River Gold Corp.
Consolidated Statements of Operations
For the Three and Six Month Periods Ending June 30, 2007 and 2006

Three Months Ended June 30, Six Months Ended June 30,
2007 2006 2007 2006
(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenues:
Precious metal
sales $ 922,533 $ - $ 1,275,143 $ -

Cost of goods sold:
Direct production
expenses 2,479,690 - 3,187,925 -
------------ ------------ ------------ ------------

Gross loss (1,557,157) - (1,912,782) -
------------ ------------ ------------ ------------

Operating expenses:
Exploration and
development 1,575,115 2,857,069 3,656,057 4,372,154
General and
administrative 1,799,826 806,253 3,032,508 1,450,968
Stock based
compensation 68,866 - 150,095 -
Depreciation
and accretion 169,291 101,923 322,242 167,063
------------ ------------ ------------ ------------
Total operating
expenses 3,613,098 3,765,245 7,160,902 5,990,185
------------ ------------ ------------ ------------

Loss from
operations (5,170,255) (3,765,245) (9,073,684) (5,990,185)
------------ ------------ ------------ ------------

Other income
(expense):
Interest income 278 4,861 17,653 14,875
Interest expense (1,173,060) (12,272) (1,972,903) (22,401)
Loss on
forward sales (226,223) - (226,223) -
Gain on
settlement of
debt 33,143 - 27,180 -
Non-operating
income, net 121,978 1,609 124,526 420
------------ ------------ ------------ ------------
Total other
income
(expense) (1,243,884) (3,771,047) (2,029,767) (7,106)
------------ ------------ ------------ ------------

Net loss before
income taxes (6,414,139) (3,771,047) (11,103,451) (5,997,291)
Income taxes - - - -
------------ ------------ ------------ ------------

Net loss (6,414,139) (3,771,047) (11,103,451) (5,997,291)

Other comprehensive
income:
Unrealized
holding loss (13,019) - (27,038) -
------------ ------------ ------------ ------------

Net comprehensive
loss $ (6,427,158) $ (3,771,047) $(11,130,489) $ (5,997,291)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

Basic and
diluted loss
per share $ (0.10) $ (0.07) $ (0.18) $ (0.12)

Weighted
average shares
outstanding 63,117,793 51,184,551 61,775,462 48,856,664

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


Bullion River Gold Corp.
Consolidated Cash Flow Statements
For the Six Months Ending June 30, 2007 and 2006
Six Months Ended June 30,
----------------------------
2007 2006
------------- --------------
(Unaudited) (Unaudited)

Cash Flows From Operating Activities

Net loss for the period $ (11,103,451) $ (5,997,291)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation expense 319,260 164,034
Accretion expense 2,982 3,029
Amortization related to debt discounts 1,468,581 -
Equity instruments issued for
services and expenses 492,813 316,693
Gain on settlement of debt (27,180) -
Loss on disposal of assets - 1,188
Net non-cash gain (72,000) -

Changes in operating assets and
liabilities:
(Increase) decrease in:
Inventory in process (580,035) -
Prepaids and other current assets 26,695 71,658
Supplies inventory 50,550 (43,604)
Deposits 167,784 121,653
(Decrease) increase in:
Accounts payable and accrued liabilities 2,148,561 360,630
Deferred revenue 1,790,631 -
Interest payable on convertible debt 63,397 -
------------- --------------
Net cash used in operating activities (5,251,412) (5,002,010)
------------- --------------

Cash Flows From Investing Activities

Purchase of property and equipment (1,179,875) (1,603,367)

------------- --------------
Net cash used in investing activities (1,179,875) (1,603,367)
------------- --------------

Cash Flows From Financing Activities

Loans from related parties - (13,453)
Payments on capital leases (132,823) -
Short term loans 2,550,000 -
Proceeds from sale of convertible debt 1,400,000 -
Proceeds from sale of common shares 2,644,000 7,347,091
Offering costs (171,025) (564,308)

------------- --------------
Net cash received from financing activities 6,290,152 6,769,330
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Increase (decrease) in cash (141,135) 163,953

Cash, beginning of the period 146,509 124,788

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Cash, end of period $ 5,374 $ 288,741
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Supplemental Disclosure of Cash Flow
Information
Cash paid for interest $ 67,994 $ 22,401
Cash paid for income taxes $ - $ -

Non-Cash Financing Activities
Non-cash dividend issued to select
warrant holders $ 105,080 $ -

The related notes in the 10-QSB 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 eight 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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