Exall Resources Limited
TSX : EXL
OTC Bulletin Board : EXALF

Exall Resources Limited

March 31, 2006 18:48 ET

Exall Files 2005 Year End Results

TORONTO, ONTARIO--(CCNMatthews - March 31, 2006) - Exall Resources Limited ("Exall") (TSX:EXL)(OTCBB:EXALF) has filed its audited financial results for the year ended December 31, 2005.

For the twelve-month period ended December 31, 2005, Exall reported a net loss of $587,173 or $0.010 per share on revenue of $1,339,773 versus a net income of $163,443 or $0.003 per share on revenue of $1,008,389 the previous year. The increase in revenue was due to increased prices received for oil and gas.

For 2005, general and administrative (G&A) expenses increased to $1,144,011 from $756,614 in 2004, due to legal costs associated with the proposed spin-out of the mining assets.

Comparative results for the twelve-month period ended December 31, 2005 are attached to this press release. For complete financial statements, please refer to Exall's filings with SEDAR at www.sedar.com.

Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL; in the United States, Exall trades as EXALF on the US OTC Market (S.E.C. registration #82-3535). Exall is active in the business of gold exploration and development in Red Lake, Ontario, as well as oil and gas exploration, development and production from its properties in Alberta, British Columbia, Texas and in the North Sea offshore the United Kingdom. Exall also owns 3,310,000 common shares of Southern Star Resources Inc., Exall's joint venture partner in the Gold Eagle Project.

There are 77,660,530 million common shares issued and outstanding of Exall.



EXALL RESOURCES LIMITED
CONSOLIDATED BALANCE SHEET

As at December 31, 2005 2004
---------------------------

ASSETS
Current
Cash $ 2,778,450 $ 125,266
Marketable securities (market value -
$6,500,100; 2004 - $758,800) (Note 4) 1,181,996 729,414
Accounts receivable and prepaid
expenses 114,957 404,632
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4,075,403 1,259,312
Oil and Gas Properties (Note 5) 3,742,561 2,784,772
Mineral Exploration Properties (Note 6) 2,272,781 913,076
Property and Equipment (Note 7) 9,737 10,286
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$ 10,100,482 $ 4,967,446
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LIABILITIES
Current
Accounts payable and accrued liabilities $ 728,846 $ 961,161
Asset Retirement Obligation (Note 8) 169,745 132,558
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898,591 1,093,719
---------------------------
Commitments (Note 15)

SHAREHOLDERS' EQUITY
Share Capital (Note 9) 16,489,615 11,896,627
Contributed Surplus (Note 9) 1,915,815 593,466
Deficit (9,203,539) (8,616,366)
---------------------------
9,201,891 3,873,727
---------------------------

$ 10,100,482 $ 4,967,446
---------------------------

See accompanying notes to consolidated financial statements.


On behalf of the Board:

Stephen G. Roman (Director) T. Douglas Willock (Director)



EXALL RESOURCES LIMITED
CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT

For the years ended December 31, 2005 2004
---------------------------

REVENUE
Oil and gas production $ 1,339,773 $ 1,008,389
Royalties (149,237) (152,255)
---------------------------
1,190,536 856,134
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COST OF SALES
Oil and gas production 301,096 301,073
Depletion and amortization 366,013 276,171
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667,109 577,244
---------------------------

GROSS PROFIT 523,427 278,890
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EXPENSES
Administration 1,144,011 756,614
Stock-based compensation 738,398 92,138
Interest 31,360 551
Amortization 5,675 4,850
---------------------------
1,919,444 854,153
---------------------------

LOSS BEFORE THE FOLLOWING (1,396,017) (575,263)
---------------------------

Gain on sale of other mining properties - 335,000
Monitoring fee income - 40,000
Gain on sale of oil and gas property - 37,500
Interest and other income 29,633 10,906
Write-down of marketable securities - (227,200)
Gain on sale of investments 44,211 -

---------------------------
73,844 196,206
---------------------------

INCOME (LOSS) BEFORE INCOME TAXES (1,322,173) (379,057)

INCOME TAXES (Note 10)

Future income tax recovery (735,000) (542,500)
---------------------------
(735,000) (542,500)
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NET INCOME (LOSS) FOR THE YEAR (587,173) 163,443

DEFICIT, beginning of year (8,616,366) (8,779,809)
---------------------------
DEFICIT, end of year $ (9,203,539) $ (8,616,366)
---------------------------

EARNINGS PER SHARE (Note 11)
Basic and fully-diluted $ (0.010) $ 0.003
---------------------------

See accompanying notes to consolidated financial statements.



EXALL RESOURCES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS

For the years ended December 31, 2005 2004
---------------------------

OPERATING ACTIVITIES
Net income (loss) for the year $ (587,173) $ 163,443

Items not involving the use of cash
Stock-based compensation 738,398 92,138
Depletion and amortization 366,013 276,171
Amortization of property and equipment 5,675 4,850
Gain on sale of investments (44,211) -
Write-down of marketable securities - 227,200
Gain on sale of other mining properties - (335,000)
Future income tax recovery (735,000) (542,500)
Change in non-cash components of
working capital (Note 14(a)) 57,360 (273,269)
---------------------------
(198,938) (386,967)
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INVESTING ACTIVITIES
Proceeds on sale of marketable
securities 114,824 -
Marketable securities (523,196) -
Mineral exploration properties (1,359,705) (913,076)
Oil and gas properties (net) (1,286,615) (1,189,604)
Property and equipment (5,126) (7,988)
Proceeds on sale of other mining
properties - 85,000
---------------------------
(3,059,818) (2,025,668)
---------------------------

FINANCING ACTIVITIES
Issue of share capital - net of
issue costs 5,911,940 1,556,635
---------------------------


CHANGE IN CASH 2,653,184 (856,000)

CASH, beginning of year 125,266 981,266
---------------------------

CASH, end of year $ 2,778,450 $ 125,266
---------------------------

SUPPLEMENTARY CASH FLOW INFORMATION
Interest paid $ 31,360 $ 2,584
---------------------------

See accompanying notes to consolidated financial statements.


Contact Information

  • Exall Resources Limited
    Stephen G. Roman
    Chairman, President and CEO
    (416) 368-3949
    (416) 368-5146 (FAX)
    www.exall.com