EurOmax Resources Ltd.
TSX VENTURE : EOX

November 24, 2010 09:01 ET

EurOmax Releases Third Quarter (September 30) Unaudited Financial Results

VANCOUVER, ALBERTA--(Marketwire - Nov. 24, 2010) - EurOmax Resources Limited (TSX VENTURE:EOX) (FRANKFURT:OMZ) ("EurOmax" or, the "Company") announced today the release of the financial statements and related management, discussion and analysis for the quarter ended September 30, 2010. Please refer to www.sedar.com for the complete set of financial statements, notes and MD&A. Highlights for the quarter include the following:

As of September 30, 2010 (see attached excerpt):
Cash balance - $2.8 million
Accounts payable - $1.3 million
Working capital - $2.3 million

For the quarter ended September 30, 2010 (see attached excerpt):
Net loss for the quarter - $5.8 million
Shareholder meeting expense - $1.9 million
Write-off of mineral properties - $3.5 million

Cash depletion – the $1.9 million cost of the contested shareholder meeting, which concluded on September 23, 2010, has significantly reduced the cash available for exploration programs and other corporate purposes. After payment of accounts payable and accrued liabilities as of September 30, the actual cash available was $1.5 million. The Company's new board of directors has factored this available cash balance into its ongoing transition process and corporate planning.

Property review – a formal review of all the Company's prospects and properties was initiated in October and is expected to be completed shortly. Based upon a preliminary review of the exploration results on the properties to date, it was concluded that the Ceovishte property in Serbia and the Kazandol property in Macedonia would not justify any additional exploration expenditures by the Company. Accordingly, the $3.5 million carrying value of both these properties has been written off. There may be additional property write-offs pending the completion of the Company's review of its property portfolio.

Drilling program at Ilovitza, Macedonia – in order to drill a sufficient number of holes and gather the appropriate technical data to prepare a detailed application for a Mining Concession on this property before the Company's exploration permit expires in May 2011, the Company has an active drilling program in place which is expected to continue for at least the balance of 2010. This drilling program is the only drilling the Company is conducting pending the completion of the Company's review of its property portfolio.

Mark Gustafson, President & CEO, stated "The third quarter results reflect all the significant costs related to the contested shareholder meeting and the write-offs due to the lack of exploration success on two of the Company's properties. Our current cash balance is approximately $1 million and we are continuing to implement our transition plan. The new board of directors of the Company would like to thank our CFO, Mr. Christopher Serin, for providing his professional and timely assistance in preparing these quarterly results."

EurOmax Resources Ltd.        
Consolidated balance sheets        
(unaudited - prepared by management)        
  September 30   December 31,  
  2010   2009  
  $   $  
Assets        
Current assets        
  Cash and cash equivalents 2,863,044   8,234,111  
  Accounts receivable, prepaids and deposits 780,561   689,580  
  3,643,605   8,923,691  
   
Investment (Note 8) 221,519   475,190  
Restricted cash (Note 6) 51,470   47,223  
Property and equipment (Note 7) 6,325,969   7,240,205  
  10,242,563   16,686,309  
   
Liabilities        
Current liabilities        
  Accounts payable and accrued liabilities 1,361,862   295,349  
  1,361,862   295,349  
   
Shareholders' equity        
Share capital (Note 9) 33,101,084   33,101,084  
Warrants 897,038   897,038  
Contributed surplus 1,785,872   1,613,272  
Accumulated other comprehensive (loss) income (91,093 ) 156,352  
Deficit (26,812,200 ) (19,376,786 )
  8,880,701   16,390,960  
  10,242,563   16,686,309  

Approved by the Board

(Signed) Mark G. Gustafson
Mark G. Gustafson, Director

(Signed) Donald R. Siemens
Donald R. Siemens, Director

EurOmax Resources Ltd.                
Consolidated statements of loss (income)                
(unaudited - prepared by management)                
  Three months ended   Nine months ended  
  September 30   September 30  
  2010   2009   2010   2009  
  $   $   $   $  
   
Expenses                
  General and administrative (Note 10) 339,295   318,704   1,425,261   890,260  
  Shareholder meeting (Note 10) 1,863,333   -   1,863,333   -  
  General exploration 13,480   340,794   108,034   381,002  
  Write-off of mineral properties 3,521,055   -   3,521,055   -  
  Stock-based compensation -   203,910   172,600   250,293  
  Depletion, depreciation and accretion 19,025   15,767   57,905   38,054  
  Other (5,482 ) 1,470   (7,496 ) 1,130  
  Foreign exchange loss 32,020   317,651   291,551   339,964  
  5,782,726   1,198,296   7,432,243   1,900,703  
   
Other expenses (income)                
  (Gain) on conversion of note receivable -   (73,070 ) -   (70,316 )
  (Gain) on investment -   (9,615 ) -   (435,806 )
  Loss on stock option held -   2,281   -   4,058  
  Loss (gain) on disposal of property and equipment -   (3,684,548 ) 4,440   (3,684,548 )
  Interest (income) expense (1,226 ) 19,280   (1,269 ) 12,242  
  (1,226 ) (3,745,672 ) 3,171   (4,174,370 )
Net loss (income) and comprehensive loss (income) 5,781,500   (2,547,376 ) 7,435,414   (2,273,667 )
Net loss (income) and comprehensive loss (income) per share                
  Basic and diluted 0.05   (0.02 ) 0.06   (0.03 )
   
Weighted average number of shares                
  Basic and diluted 120,062,039   119,062,039   120,062,039   80,996,202  

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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