Redcorp Ventures Ltd.

Redcorp Ventures Ltd.

March 25, 2008 09:01 ET

Financial and Operating Highlights for the Fourth Quarter and Year Ending December 31, 2007

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 25, 2008) - REDCORP VENTURES LTD. (TSX:RDV) and its wholly-owned consolidated subsidiaries, Redfern Resources Ltd. and Redcorp Empreendimentos Mineiros Unipossoal Lda. (collectively, "Redcorp") will, on or before March 31, 2007, file on and mail to shareholders its annual report for the year ending December 31, 2007. In this release, we provide a comparative summary of the year's operational and financial highlights. Readers are advised that due to the summary nature of this release, the highlights should be read in conjunction with our year end MD&A and audited consolidated financial statements contained in our annual report, once available.

Summary of Operational and Financial Highlights

The following table shows selected comparative consolidated financial information for the fourth quarters ("Q4's") and years ended December 31, 2007 and 2006.

($000's, unless 2007-Q4 2006-Q4 2007 2006
otherwise stated) (unaudited) (unaudited) (audited) (audited)
Oil and gas revenue, interest
and other income 1,800 100 3,557 263
Exploration expenses 149 3,109 5,743 9,312
General and administrative 946 278 3,049 1,128
Interest and financing charges 4,663 - 9,398 -
Stock compensation expense 24 1,116 544 1,395
Foreign exchange (gain) loss (1,133) (11) (1,135) (5)
Impairment charge on
investments (1) 16,370 - 22,770 -
Net loss, being comprehensive
loss (19,412) (4,572) (37,456) (12,081)
Basic and diluted loss per share
($/share) (0.05) (0.04) (0.15) (0.13)
Capital expenditures (2) 15,854 52 35,003 146
Total assets 232,125 13,518 232,125 13,518
Total liabilities 125,249 5,278 125,249 5,278

(1) See Investments in ABCP below for further explanation.
(2) Includes expenditures on property, plant and equipment, and oil and gas

Permitting and Community Relations Activities (See Significant Subsequent Events)

During 2007, the following permitting and community relations activities were attained:

- We received approval from the BC Environmental Assessment Office ("BCEAO") for proposed design and infrastructure changes from the original Tulsequah Chief Mine Plan, which enhances operational efficiency and has a smaller environmental footprint;

- We received our Mineral Exploration Code II Permits in two phases (MX-I and II) and Occupancy Licence to Cut from the BC Government, allowing us to construct certain roads and an airstrip at the Tulsequah minesite;

- We received from the BC Government a five-year Project Approval Certificate extension to December 2012 relating to our original Project Approval Certificate, during which time mining operations must substantially commence;

- We submitted a federal and provincial barge-access amendment to our existing Environmental Approval Certificate and provided the state regulatory authorities of Alaska with updated information for proposed river barging operations; and

- We executed a letter agreement with the Taku River Tlingit First Nation ("TRTFN") that establishes a workplan and funding framework to assist with the evaluation of the newly-proposed river-based transportation system for the Tulsequah Project.

The provincial amendment process has taken longer than anticipated mainly due to its transboundary aspect and the scope of review the BCEAO has chosen to undertake. The public process is complete and the working group of stakeholders has formed subcommittees to deal with specific issues prior to formalizing recommendations to the BC Government. We now anticipate this formal process will conclude in 2008-Q2. The federal government has now acknowledged that the necessity for a barge landing facility will trigger a Screening level review under the Canadian Environmental Assessment Act. We anticipate completion of this federal process in a similar time frame as that for the BCEAO process.

2007 versus 2006

Oil and Gas Revenue, Interest and Other Income, and Interest and Financing Charges

During 2007, our oil and gas revenue, interest and other income was $3.6 million compared to $0.3 million in 2006. Also, our interest and financing charges were $9.4 million in 2007 compared to $nil in 2006. The increase in all interest-related items was the direct result of our July 10, 2007 debt/equity financing, allowing us the opportunity to earn short-term interest income from cash on hand and requiring us to pay interest on the debt portion of the financing.

Exploration Activities (See Signficant Subsequent Events)

Exploration expenses decreased in 2007 from those in 2006 by $3.6 million or 38%, to $5.7 million. In 2006, we were actively engaged in a 20,000-meter, 56-hole drilling program at Tulsequah and Big Bull. Comparatively, exploration activities were much less during 2007, as most field work centered on mine construction which is capitalized as property, plant and equipment.

During 2007, we obtained new NI 43-101 compliant estimated resources from Wardrop Engineering Inc. ("Wardrop") in connection with our 2006 exploration drilling programs conducted on our A-Extension deposit at Tulsequah and our deposit at Big Bull. The following table shows a summary of our total company resources for the Tulsequah Project, incorporating these two new deposits.

Tulsequah Project Resource Estimate as at April 3, 2007 (1)
Category Tonnes Cu(%) Pb(%) Zn(%) Au (g/t) Ag (g/t)
Indicated 6,139,800 1.40 1.24 6.41 2.67 98.9
Inferred 1,717,800 0.73 1.59 5.46 2.63 120.1

(1) This is the most recent NI 43-101 compliant resource disclosure for the
Tulsequah Project. The estimate is based on the same methods and
assumptions for metallurgical response as used in calculating the NSR
for the Tulsequah Chief Feasibility Study conducted in 2007 (Cdn $86
per tonne).

Also during 2007, we received from Wardrop an NI 43-101 resource estimate in connection with our 2006-2007 exploration drilling program on the Lagoa Salgada deposit in Portugal. The following table shows the resource estimate achieved.

Lagoa Salgada, Portugal - Resource Estimate as at August 15, 2007 (1)
Category Tonnes Cu(%) Pb(%) Zn(%) Au (g/t) Ag (g/t)
Inferred 2,017,000 0.35 4.83 5.13 1.29 85.35

(1) Estimated using a $70 USD GMV cut-off, uncapped assays. This resource
estimate was prepared in accordance with the Standards of Disclosure
for Mineral Projects as defined by National Instrument 43-101. Gilles
Arseneau, Ph. D., P. Geo, Wardrop Engineering is the Independent
Qualified Person who has assumed authorship of that estimate.

General and Administrative Expenses

Total general and administrative expense in 2007 increased over 2006 by a total of $1.9 million or 170%, to $3.0 million. Of this total, approximately 52% was due to growth in staff size and travel costs. Legal and audit costs comprised another 8% of the increase, with the remainder mainly due to general increases in rent, trust filings, investor relations and other office costs.

Financing Activities

In March 2007 we closed a private placement financing for aggregate net proceeds of $9.1 million by issuing approximately 18.2 million units at a price of $0.55 per unit, each unit comprised of one common share and one-half common share purchase warrant exercisable in exchange for one common share at a price of $0.70 until March 15, 2008. In July, we closed a short-form prospectus offering for total gross cash proceeds of approximately $252.0 million - 56.3% of which was debt-based and 43.7% equity-based. The debt component involved the issuance of 141,975 series D units and the equity component involved the issuance of 220,022,650 series E units. These financings explain the significant increases in total assets and total liabilities in 2007 from 2006.

Investments in ABCP (See Significant Subsequent Events)

As at December 31, 2007, we included our investments in Asset-Backed Commercial Paper ("ABCP") under longer-term investments on our balance sheet at a carrying value of $68.3 million. Due to a GAAP requirement, we recognized an impairment of $22.8 million in the carrying value of our short-term investments in ABCP during 2007. We did not own any ABCP in 2006.

On July 12 and 13, 2007, we invested a portion of our uncommitted funds for approximately 30 days in highly-liquid third-party sponsored ABCP rated "R-1 High" by the Dominion Bond Rating Service. On August 13 and 14, 2007, these short-term investments had matured and not been repaid, leaving an outstanding balance owed to us of $91.4 million, including interest to their maturity.

During the month of August, the non-bank Canadian third-party ABCP market experienced liquidity problems. As a result, in some cases, certain Canadian ABCP programs were unable to raise funds from new issuances and therefore were not able to refund the paper as it matured. At this time, the non-bank ABCP market remains the subject of an agreement signed on August 16, 2007 amongst a number of affected parties. This agreement, referred to as the "Montreal Accord", contemplates a restructuring of ABCP by a group entitled, Pan Canadian Investors Committee, such restructuring to replace our original short-term notes with long-term floating rate notes having characteristics that more closely relate to their underlying assets.

As at December 31, 2007, there was no market data available for our ABCP investments. Management estimated their fair value by discounting their expected future cash flows according to probabilities of recoverability, without factoring in interest.

Capital Expenditures

Capital expenditures in 2007 were $35.0 million compared to $0.1 million in 2006, an increase related entirely to spending on mine construction at Tulsequah. These expenditures included payments for various equipment purchases, mobilization of equipment and contractors, such payments being made in anticipation of the receipt of all approvals necessary to commence construction.

Construction work was steady during the year at Tulsequah. Ten loads of equipment were barged to site during the summer and early fall. A heavy helicopter lift was conducted in November and December to bring in all the key remaining items. Under our initial Mineral Exploration Code Permit I (MX-I), we constructed a four-kilometer access road awaiting to link up with further road work to be constructed under our MX-II permit. The underground mine design was completed resulting in a simplification of the design contemplated in our Feasibility Study.

2007-Q4 versus 2006-Q4

Our 2007-Q4 and 2006-Q4 results have not been reviewed by independent external auditors.

Oil and Gas Revenue, Interest and Other Income, and Interest and Financing Charges

During 2007-Q4, our oil and gas revenue, interest and other income was $1.8 million compared to $0.1 million in 2006-Q4. Also, our interest and financing charges were $4.7 million in 2007-Q4 compared to $nil in 2006-Q4. The increase in these items was the direct result of our July 10, 2007 debt/equity financing, allowing us the opportunity to earn short-term interest income from cash on hand and requiring us to pay interest on the debt portion of the financing.

Exploration Activities

Exploration expenses in 2007-Q4 were $0.1 million compared to $3.1 million in 2006-Q4, the latter being due to completion of a 22,793 meter drilling program.

General and Administrative Expenses

General and administrative expenses increased in 2007-Q4 by $0.7 million to $0.9 million over 2006-Q4 due to the need for administrative support for our construction activities at Tulsequah.

Investment in ABCP

During 2007-Q4, we recognized an additional impairment of $16.4 million on our ABCP investments and transferred such investments from short-term to long-term assets due to the proposed replacement of short-term ABCP with longer-term notes. In 2006-Q4, we did not own any ABCP investments.

Capital Expenditures

Capital expenditures in 2007-Q4 were $15.9 million compared to $0.1 million in 2006-Q4, an increase primarily related to spending on mine construction at Tulsequah.

Significant Subsequent Events (Occurring After December 31, 2007)


After year end, we received approval to begin tree-cutting for air-strip construction and authorization from Fisheries and Oceans Canada to move equipment up the Tulsequah Valley to the airstrip area. We also met the necessary timber-cutting conditions contemplated in our MX-II permit to allow road access and construction to begin at the south end from the barge landing area.

With respect to the barging amendment, on February 4, 2008 we completed the public meeting process in the State of Alaska related to acquisition of both a Title 41 habitat permit and a Title 38 general access permit. The window for any Requests for Additional Information from regulatory agencies has closed and we are working to satisfy all state requests. We expect to complete the majority of information requests in the coming weeks, however, some information will be obtained once the ACB and Amphitrac have been constructed. No federal permits are required from the US government.

On March 3, 2008, we announced the receipt of our first Mines Act permit (MA-232) for the cleanup of the old mine site and preparation of the waste rock holding facilities and the receipt, from the Ministry of Forests, of an amended Licence to Cut authorization allowing us to extend timber cutting operations for purpose of completing construction of the required 20-kilometer network of access roads connecting essential working points throughout the site.

As of March 20, 2008, we have made application for the following permits: Construction Discharge Approval to allow discharge from the interim water treatment plant during construction activities; application to mobilize additional equipment from the barge landing area up the Tulsequah River to the PAG/NAG facility to begin construction on the MA-232 authorized facilities; amendment of our License to Cut from the Ministry of Forests and Range to include the PAG/NAG facility, quarry, road to our storage area, the tailings holding facility and associated access; and authorizations in connection with the Northern and Southern Causeway Construction, Shazah Creek Bridge Crossing and Portal Creek Diversion.

As of March 20, 2008, the following processes and permit applications require finalization: Mines Act Phase 2 to allow upgrade of the access road, upgrade the airstrip, and construct all above ground facilities except for the tailings facility and associated access road which will be applied for in a third phase; a BCEAO barging amendment and a Canadian Environmental Assessment Act screening for barging; an Alaskan permitting process; a BC Mines Act Phase 3 application for tailings facility and associated access road; and applications for an Operational Discharge Permit, Diffuser Installation Permits from provincial and federal authorities, a Portal Creek diversion license and an ACB landing facility federal authorization.

Exploration Activities

On February 11, 2008, we announced the commencement of a drilling program on our Lagoa Salgada concession located in the Iberian Pyrite Belt of southern Portugal. Approximately six holes totaling 4000 meters are planned for this phase of work, which is expected to be completed by late April 2008. The initial holes in this program are designed as follow-up on the semi-massive to massive sulphide mineralization that we discovered in the Rio de Moinhos area of the concession.

Investments in ABCP

On March 17, 2008, the Pan-Canadian Committee ("Committee") filed an application in the Ontario Superior Court of Justice, asking the Court to call a meeting of ABCP noteholders to vote on the Committee's restructuring plan involving 20 trusts affecting $32 billion in notes, including those in which we hold notes. The Court approved the application. The Committee expressed confidence that its plan is comprehensive and will be of benefit to all noteholders. We will examine the restructuring plan carefully to decide on whether or not to vote in favour of it.

Although we are unable to estimate with accuracy when or how much will be repaid to us, we believe that it is reasonable to assume that successful restructuring of our ABCP will occur by the end of April 2008, following which a market will be renewed, thereby allowing us the opportunity to sell these investments within the next 12 months.

Contract Signing Activities

On February 4, 2008, we announced our signing of a Memorandum of Understanding ("MOU") with MRI Trading AG of Zug, Switzerland. The MOU governs the terms of sales for all of the proposed production of zinc, copper and lead concentrates from our new Tulsequah Chief Mine. It also includes indicative terms for the provision by MRI of a contingent credit facility of $25.0 million, subject to certain terms, conditions and noteholder acknowledgements, for Tulsequah Chief Mine construction and working capital needs.

Working Capital

At the date of this release, management is in the process of updating its estimate of construction costs of the mine at Tulsequah Chief. Management is also addressing the financing issue raised by the potential shortfall in the full recovery of our outstanding ABCP investments. This involves an assessment of sources of alternative financing. Once the ABCP restructuring information has been fully evaluated and mine construction costs have been updated, we will have a clearer view of our total cash requirements to reach production and will disclose this information as soon as it becomes available.

Outlook for 2008

Tulsequah activities for 2008 include: finalization of EA amendments and barge-operating permits; completion of waste pads; construction of tailings impoundment area; preparation and erection of the mills and associated infrastructure; commencement of underground development; advancement and finalization of a solid working relationship agreement with Taku River Tlingit First Nation; and development and implementation of a human resource plan for mining operations.

In Portugal, we plan to pursue new targets discovered in 2006/7 on our Lagoa Salgada Concession with a drill program in early 2008 and we plan to perform more detailed surface exploration over target areas at Vila de Rei to determine where best to initiate future drill testing.

We will also need to bring resolution to the asset-backed commercial paper investments restructuring; and secure residual financing components that are required for mine completion.

Inclusive of the risks and uncertainties discussed in this release and in our Annual Report and Annual Information Form filed on on March 31, 2008, completion of our 2008 objectives is subject to our ability to maintain our construction schedule and the necessary funds to carry it to completion. While we believe that our objectives are achievable within the projected time-frames, risks and uncertainties both known and now unknown to management could materially affect their ultimate achievement.

Redcorp Ventures Ltd. is a Vancouver-based mineral exploration and development company with active projects in British Columbia and Portugal. Further information on Redcorp and the Tulsequah Project can be obtained on the Company's website at and at Redfern's website at or by calling toll-free to Troy Winsor, Manager of Investor Relations, at 1-888-225-9662.


Terence Chandler, President and CEO

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Securities Act (Ontario) and the Securities Act (Alberta). Forward-looking information includes disclosure regarding possible or anticipated events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action and includes future oriented financial information with respect to prospective results of operations or financial position that is presented either as a forecast or a projection. Forward looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend"; statements that an event or result is "due" on or "may", "will", "should", "could", or "might" occur or be achieved; and, other similar expressions.

More specifically, forward looking information contained herein includes, without limitation, statements concerning our plans at our Tulsequah Project (inclusive of the Big Bull Project), the net present value of the Tulsequah Project, the timing and amount of estimated future production and mine life, expected future prices of gold, silver, copper, lead and zinc, mineral reserve and mineral resource estimates, estimated capital and operating costs of the project, estimated capital pay-back period, estimated asset retirement obligations, timing of development and permitting time lines; all of which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Forward-looking information contained herein is based on material factors and assumptions and is subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from a conclusion, forecast or projection in the forward-looking information. These include, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, the availability of financing for activities when required and on acceptable terms, the accuracy of the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the consistency of future exploration, development or mining results with our expectations, metal price fluctuations, the achievement and maintenance of planned production rates, the accuracy of component costs of capital and operating cost estimates, current and future environmental and regulatory requirements, favourable governmental relations, the availability of permits and the timeliness of the permitting process, the availability of shipping services, the ultimate recovery amount, if any, of our investment in third-party asset-backed commercial paper (ABCP) that is currently undergoing liquidity restructuring by the Committee representing the Montreal Accord, the availability of specialized vehicles and similar equipment, costs of remediation and mitigation, maintenance of title to our mineral properties, industrial accidents, equipment breakdowns, contractor's costs, remote site transportation costs, materials costs for remediation, labour disputes, the potential for delays in exploration or development activities, timely completion of future NI 43-101 compliant reports, timely completion of future feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, continuing global demand for base metals, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors Relating to Our Business in our Annual Information Form, filed on SEDAR on April 2, 2007, and in each subsequent Management's Discussion and Analysis. Although we have 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 not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information.
Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, we undertake no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

News Release 08-06

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