Genco Resources Ltd.
TSX VENTURE : GGC

Genco Resources Ltd.

November 28, 2007 18:40 ET

Genco Reports Results for the Period Ended September 30, 2007

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2007) - Genco Resources Ltd. (TSX VENTURE:GGC) announces the results for its third financial quarter ended September 30, 2007 and provides an update on mining activities during the same period. For the nine month period, Genco had revenues from metal sales of $5,475,664, an operating profit of $2,518,073, and a net loss of $2,512,375. Net assets increased during the period $23,798,698 to $46,243,773.

The following table contains selected highlights from the Genco's consolidated income statement and consolidated balance sheet for the nine month periods ended September 30, 2007 and 2006.



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9 Months ended 9 Months ended
Sept. 30, 2007 Sept. 30, 2006
-------------- --------------
Cdn $ Cdn $
Total revenue 5,475,664 7,026,100
Operating profit 2,518,073 3,303,079
Net income (loss) (2,512,375) (547,084)
Net income (loss) per-share (0.08) (0.02)
Total assets 46,243,773 19,533,291
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Reduced revenues and metal production were primarily the result of a test mining program undertaken at La Guitarra Mine during the first four months of 2007. This test mining program was undertaken to gain factual data regarding metal recoverability and mining costs for the Creston Deposit. This information will be used in the mine expansion feasibility study currently being conducted by Kappes, Cassiday and Associates and by the Genco to develop a long term strategy for the Temascaltepec Mining District.

Approximately 16,000 tonnes of ore grade material were taken from surface and processed in La Guitarra's flotation mill. By processing ore obtained from the Creston test mining and surface program the Genco was able to determine silver and gold recoveries using its conventional flotation circuit and also obtain samples of surface oxide ores for further bottle roll and column tests. Over the test period recoveries improved from the low 70% range for silver and low 60% range for gold to over 80% recovery for both silver and gold. Bottle roll and column tests are ongoing to determine the metal recoveries using cyanide mill processing and heap leach processing.

The following table highlights the combined production of the La Guitarra and San Rafael Mines.



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9 Months 9 Months 12 Months
Ended Ended Ended
Sept. 30, Sept. 30, Dec. 31,
2007 2006 2006
-------- -------- ---------
Tonnes milled 46,828 40,339 53,873
Silver equivalent ounces 443,517 624,326 777,710
Silver ounces 236,593 427,748 532,506
Gold ounces 4,064 3,712 4,705
Silver equivalent grade (gpt) 359 540 501
Average silver price (US$/oz) 13.15 11.30 11.54
Average gold price (US$/oz) 669.76 598.42 601.70
Gold$/silver$ equivalency factor 50.92 52.96 52.12
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Mill throughput increased and the average silver grade and silver equivalent ounces produced fell during the period as a result of processing the lower grade ore from the Creston area. The long term value of the information gained from the test mining is expected to exceed the cost of any short term reduction in production.

The table below summarizes Genco's mining costs in US dollars on a cost per silver equivalent (eAg) ounce basis.



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9 Months ended 12 Months ended
Sept. 30, 2007 Dec. 31, 2006
-------------- ---------------
Cash operating cost (US$/eAg) 4.03 4.38
Total cash cost (US$/eAg) 4.40 4.77
Total production cost (US$/eAg) 5.81 5.40
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Even though ores with lower average grades were processed during the period, and metal recoveries from ores taken from surface were lower during the period costs were comparable to those incurred during the same period in 2006. Genco's management feels that these results are encouraging in the analysis of potential expansion of mining to the Creston surface deposit and possible expansion of processing capacity.

During the nine month period ended September 30, 2007 Genco continued its aggressive exploration and development program in the Temascaltepec Mining District and La Guitarra Silver Mine. Over 35,500 metres of exploration drilling and 2,850 metres of underground development were completed.

See attached balance sheet and income statement for more information. Full financial statements and Management's Discussion & Analysis are available on SEDAR at http://www.sedar.com and on Genco's website.



GENCO RESOURCES LTD.
Consolidated Balance Sheets
As at September 30, 2007 and December 31, 2006
(Expressed in Canadian dollars)

September 30 December 31
2007 2006
$ $
------------ -----------
Assets
Current assets
Cash 18,405,908 2,184,209
Accounts receivable 2,620,833 1,738,315
Inventory 600,366 481,821
Prepaid expenses and deposits 842,382 399,128
------------ -----------
22,469,489 4,803,473

Mineral property interests 45,930 44,974
Property, plant, and equipment 23,728,354 17,596,628
------------ -----------

46,243,773 22,445,075
------------ -----------
------------ -----------

Liabilities
Current liabilities
Accounts payable and accrued liabilities 2,081,349 2,695,089
Current portion of long term debt 498,150 582,650
------------ -----------
2,579,499 3,277,739

Long term debt 1,282,987 1,992,789
Asset retirement obligation 185,206 171,057
Future income tax 1,214,276 841,996
------------ -----------

5,261,968 6,283,581
------------ -----------

Shareholders' equity
Share capital 42,728,735 21,357,790
Contributed surplus 7,898,726 1,936,985
Retained earnings (deficit) (9,645,565) (7,133,281)
------------ -----------
40,981,805 16,161,494
------------ -----------

46,243,773 22,445,075
------------ -----------
------------ -----------


GENCO RESOURCES LTD.
Consolidated Statements of Operations and Deficit
For the nine months ended September 30, 2007 and 2006
(Expressed in Canadian dollars)

3 Months 3 Months 9 Months 9 Months
September 30 September 30 September 30 September 30
2007 2006 2007 2006
$ $ $ $
------------ ------------ ------------ ------------

Sales 1,894,089 2,009,404 5,475,664 7,026,100
Cost of sales 890,777 918,468 2,957,591 3,723,021
------------ ------------ ------------ ------------
Gross profit 1,003,312 1,090,936 2,518,073 3,303,079
------------ ------------ ------------ ------------

Operating expenses
Administrative
expenses 1,533,810 741,647 3,421,242 1,652,786
Stock-based
compensation 48,085 221,650 1,275,586 746,035
------------ ------------ ------------ ------------
1,581,895 963,297 4,696,828 2,398,821
------------ ------------ ------------ ------------

Operating income
(loss) (578,583) 127,639 (2,178,755) 904,258
------------ ------------ ------------ ------------

Other income
(expense)
Accretion on long
term debt (25,109) (28,866) (86,091) (91,791)
Interest and other
income 114,715 15,896 124,751 52,223
------------ ------------ ------------ ------------
89,606 (12,970) 38,660 (39,568)
------------ ------------ ------------ ------------

Net income (loss)
before tax (488,977) 114,669 (2,140,095) 864,690
------------ ------------ ------------ ------------

Income tax expense
Future 348,944 466,279 372,280 1,411,774
------------ ------------ ------------ ------------
348,944 466,279 372,280 1,411,774
------------ ------------ ------------ ------------

Net income (loss) (837,921) (351,610) (2,512,375) (547,084)
Retained earnings
(deficit),
beginning (8,807,735) (5,836,363) (7,133,281) (5,640,889)
------------ ------------ ------------ ------------

Retained earnings
(deficit), ending (9,645,656) (6,187,973) (9,645,656) (6,187,973)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

Earnings (loss) per
share
Basic (0.02) (0.01) (0.08) (0.02)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Fully diluted (0.02) (0.01) (0.07) (0.02)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

Weighted average
common shares
Basic 39,319,259 28,631,406 31,927,955 27,574,597
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Fully diluted 40,696,514 31,690,315 33,602,352 30,930,786
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------


GENCO RESOURCES LTD.
Consolidated Statements of Cash Flows
For the nine months ended September 30, 2007 and 2006
(Expressed in Canadian dollars)


3 Months 3 Months 9 Months 9 Months
September 30 September 30 September 30 September 30
2007 2006 2007 2006
$ $ $ $
------------ ------------ ------------ ------------
Cash provided
(used) by operating
activities
Net income (loss) (837,921) (351,610) (2,512,375) (547,084)
Adjustments
Accretion on long
term debt 25,109 28,866 86,091 91,791
Amortization and
accretion 220,697 200,556 717,311 522,186
Future income tax 348,944 466,279 372,280 1,411,774
Stock-based
compensation 48,085 221,650 1,275,586 746,035
------------ ------------ ------------ ------------
(195,086) 565,741 (61,107) 2,224,702
Change in non-cash
working capital (1,769,548) (67,677) (2,050,638) 89,182
------------ ------------ ------------ ------------
(1,964,634) 498,064 (2,111,745) 2,313,884
------------ ------------ ------------ ------------

Cash provided
(used) by investing
activities
Deferred
exploration and
development (2,951,088) (1,533,152) (6,187,167) (3,132,833)
Mine development
changes in accounts
payable - - (7,419) -
Mineral properties (848) (905) (956) (1,030)
Purchase of
property, plant,
and equipment (192,145) (27,338) (647,721) (179,547)
------------ ------------ ------------ ------------
(3,144,081) (1,561,395) (6,843,263) (3,313,410)
------------ ------------ ------------ ------------

Cash provided
(used) by financing
activities
Change in long term
debt (537,750) (562,950) (537,750) (562,950)
Shares issued for
cash (less costs) 23,457,748 212,850 26,057,100 2,553,529
------------ ------------ ------------ ------------
22,919,998 (350,100 25,519,350 1,990,579
------------ ------------ ------------ ------------

Increase (decrease)
in cash during the
period 17,811,283 (1,413,431) 16,564,342 991,053
Effect of changes
in foreign exchange
rates (113,530) 131,626 (342,643) 6,978
Cash, beginning 708,155 3,004,593 2,184,209 724,757
------------ ------------ ------------ ------------

Cash, ending 18,405,908 1,722,788 18,405,908 1,722,788
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------


This news release contains certain forward-looking statements that involve risks and uncertainties such as statements of the Company's plans, objectives, strategies, expectations, and intentions. The words "may", "would", "could", "will", "intend", "plan", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including those factors discussed below and in filings made with the Canadian securities regulatory authorities. Should one or more of these risk factors or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. The Company does not intend, and does not assume any obligation to update these forward-looking statements.

The TSX Venture Exchange has not reviewed the contents of this release and does not accept responsibility for the accuracy of the contents of this release.

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