Genco Resources Ltd.
TSX : GGC

Genco Resources Ltd.

November 17, 2008 09:30 ET

Genco Reports Results for Third Quarter Ended September 30, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2008) - Genco Resources Ltd. (TSX:GGC) reports results for the third quarter ended September 30, 2008, and the results of mine operations for the same period.

Financial Overview

- Sales for the third quarter of 2008 were $1,788,877 - down 6% from the same period of 2007. For the nine months ended September 30, 2008, sales were $6,125,063 - up 12% from the same period of 2007.

- Gross profit for the third quarter of 2008 was $554,095 - down 45% from the same period of 2007. For the nine months ended September 30, 2008 gross profit was $1,221,832 - down 51% from the same period of 2007.

- Investment in exploration, new mine development and equipment totalled $11,502,364 during the nine month period ended September 30, 2008.



Summary Financial and Operational Results

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Three month period ended Nine month period ended
September 30 September 30
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2008 2007 2008 2007
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Sales $ 1,788,877 $ 1,894,089 $ 6,125,063 $ 5,475,664
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Gross Profit $ 554,095 $ 1,003,312 $ 1,221,832 $ 2,518,073
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Net loss $ 721,807 $ 578,583 $ 3,049,950 $ 2,178,755
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Loss per share $ 0.02 $ 0.02 $ 0.08 $ 0.08
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Average shares fully
diluted 41,436,222 39,319,259 41,097,286 31,927,955
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Tonnes milled per day 300 144 242 173
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eAg ounces sold 128,694 149,712 408,678 408,854
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Silver sales (ounces) 90,268 63,364 285,133 213,945
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Gold sales (ounces) 677 1,608 2,305 3,827
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Average realized silver
price US$15.17 US$12.72 US$16.69 US$13.15
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Average realized gold
price US$860.83 US$682.90 US$894.54 US$669.76
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When compared with 2007, sales in the third quarter decreased mainly because of 1) lower silver and gold grades, and 2) a revised third-party treatment contract, which pays on a lower percentage of the contained silver and gold in concentrate. Gross profit declined because of higher operating costs largely due to increased energy costs, increased treatment charges and production solely from underground operations.

As shown in the summary financial results, the net loss was higher for both the three and nine month periods of 2008. The main reasons for the higher loss were lower gross profits and expenses related to the June 2008 proxy dispute. Partially offsetting these factors was a gain resulting from a fair value adjustment on bonuses payable.

Additional information is disclosed in the Management's Discussion and Analysis and the complete financial statements and notes for the third quarter of 2008. These documents are available online at www.sedar.com.

About Genco Resources Ltd.

Genco's core asset is the producing La Guitarra silver/gold mine, which is located in the Temascaltepec Mining District of Mexico. La Guitarra mine currently consists of two underground operation centres---La Guitarra and San Raphael---and a flotation mill with a proven capacity of 320 tonnes per day. Genco believes significant potential exists to expand production within the 39,714 hectares of mining concessions it currently owns or leases in the Temascaltepec Mining District.

This news release may contain 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 Toronto Stock 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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