Glencairn Gold Corporation
TSX : GGG
AMEX : GLE
TSX : GGG.WT

Glencairn Gold Corporation

November 14, 2006 09:08 ET

Glencairn Gold Reports Third Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Nov. 14, 2006) - Glencairn Gold Corporation (TSX:GGG)(TSX:GGG.WT)(AMEX:GLE) reports its financial and operating results for the three month and nine month periods ended September 30, 2006 (all currency figures in U.S. dollars). The consolidated financial statements along with management's discussion and analysis will be available for viewing on the Glencairn website at www.glencairngold.com. The documents are being filed with SEDAR (www.sedar.com) and should be available on SEDAR no later than 24 hours from dissemination of this release.

Summary of results for the third quarter of 2006:

- Acquisition of Libertad Mine and Cerro Quema development project from Yamana Gold Inc.

- Record revenue from gold sales totalled $14.1 million in the third quarter of 2006 compared to revenue of $4.2 million in the third quarter of 2005

- Net loss of $3.2 million, or $0.01 per share in the third quarter of 2006, compared to a net loss of $1.0 million or $0.01 per share in the third quarter of 2005

- Record gold production increased to 23,106 ounces in the third quarter of 2006 compared to 9,814 ounces in the third quarter of 2005

- Record gold sales of 22,787 ounces in the third quarter of 2006 compared to 9,598 ounces in the third quarter of 2005

- Cash operating costs per ounce of gold sold were $528 in the third quarter of 2006 compared to $409 in the third quarter of 2005, an increase largely due to high cash operating costs at Libertad

- Santa Pancha Mine development proceeding as planned, with commercial production expected in second quarter of 2007

- Cerro Quema progressing as planned with a project decision expected in early 2007

- Acquisition of Mestiza gold project, which is within trucking distance of the Limon Mine

"The Company continues to make steady progress as we integrate our new mines. However, the quarterly loss and increase in cash operating costs are painful, but investments are necessary to secure the future of the operation. The quarterly loss relates primarily to the operation of our recent acquisition, the Libertad Mine," said Company President and CEO Peter Tagliamonte. "We recognized in acquiring Libertad that considerable work was needed and that it would cost money and take time."

Mr. Tagliamonte added, "we are making investments in our mining operations for the long-term, which require considerable funding. We believe the Libertad Mine has the potential to become a significant, profitable producer and we are starting to see improvements from the measures we have implemented."

"In addition, at the Limon and Bellavista Mines we have embarked on programs to optimize operations, both of which fell short of expectations in the latest quarter. Glencairn also continues to make steady progress with development at the Santa Pancha Mine and planning for the Cerro Quema Project."

Mr. Tagliamonte also stated that the Company is accelerating its exploration efforts, focusing on expanding its mineral resource and reserve base for the Libertad and Limon operations.

Financial Results

At September 30, 2006, Glencairn held $15.7 million in cash and short-term deposits. The Company remains hedge free.

Consolidated net loss for the third quarter of 2006 was $3.2 million or $0.01 per share compared with a net loss of $1.0 million, or $0.01 per share, in the third quarter of 2005. This loss was primarily related to the Libertad Mine. Prior to the acquisition, the Libertad Mine had suffered significant undercapitalization which resulted in insufficient stripping of the pit to maintain normal production levels. Glencairn committed extensive operating and capital expenditures to accelerate stripping.

Operating Performance

Glencairn produced 23,106 ounces at cash operating costs of $528 per ounce sold during the third quarter of 2006 compared with 9,814 ounces at cash operating costs of $409 per ounce sold during the third quarter of 2005. Revenue increased to $14.1 million during the third quarter of 2006 as a result of the sale of 22,787 ounces at an average realized price of $618 per ounce. Revenue in the third quarter of 2005 was $4.2 million. In spite of the record revenue and gold production in the latest quarter, the Company posted a net loss of $3.2 million or $0.01 per share during the third quarter of 2006, largely due to the results from Libertad Mine (the details of which are noted below). This compares to a loss of $1.0 million in the third quarter of 2005. Loss from mining operations was $0.9 million in the third quarter of 2006 compared to a loss of $0.3 million in the the third quarter of 2005.

For the first nine months of 2006, Glencairn produced 62,615 ounces compared to 30,867 ounces for the first nine months of 2005. Revenue from gold sales increased to $38.0 million in the first nine months of 2006 at an average realized price of $597 compared to $13.6 million in the first nine months of 2005 at an average realized price of $432. The Company expects to produce approximately 90,000 ounces of gold for 2006.

Net earnings totalled $0.6 million in the first nine months of 2006 compared to a loss of $2.6 million for the first nine months of 2005. Earnings from mining operations in the first nine months of 2006 were $5.0 million compared to $0.7 million in the first nine months of 2005.

Limon Mine

In the third quarter 2006, the Limon Mine produced 8,568 ounces of gold at a cash operating cost of $447. An additional 339 ounces were produced from the Santa Pancha Mine development. Net earnings totalled $0.8 million from sales of $5.3 million in the third quarter of 2006 compared to a loss of $0.3 million from sales of $4.2 million in the third quarter of 2005.

Gold sales from the Limon Mine increased $1.1 million or 26% in the third quarter of 2006 compared to the third quarter of 2005, although the actual quantity of gold sold decreased by 1,030 ounces or 11% from the same period in the prior year. The increase in sales was attributable to the 41% increase in the average realized gold price. Lower production resulted from lower ore grades and lower recoveries in 2006 compared to 2005. Glencairn anticipates that both recoveries and grades will return to normal levels in the near term. Revenue from the sale of 339 ounces of gold from Santa Pancha was applied against capitalized development costs. Full production from Santa Pancha is expected in 2007.

Bellavista Mine

In the third quarter 2006, the Bellavista Mine produced 8,102 ounces of gold at a cash operating cost of $363. Net earnings totalled $0.9 million from sales of $5.1 million in the third quarter of 2006. There were no comparable sales in the third quarter of 2005 because the mine commenced commercial production in December, 2005.

Both ounces of gold produced and sold were below budget at the Bellavista Mine in the latest quarter, primarily due to lower recoveries resulting from a delay in the completion of the grinding mill. The mill will be operational in the fourth quarter 2006 and gold recoveries are expected to improve significantly.

Libertad Mine

In the third quarter 2006, the Libertad Mine produced 5,819 ounces of gold at a cash operating cost of $884 per ounce. The net loss was $2.6 million from sales of $3.6 million in the third quarter of 2006. There were no comparable sales in the third quarter of 2005 because the mine was not a Glencairn asset in 2005.

Glencairn acquired the Libertad Mine early in the third quarter of 2006. The property requires extensive operating and capital expenditures to return mining operations to a normal level. During the third quarter, expenditures were focused on accelerated stripping necessary for the future exploitation of mineral deposits and these costs were expensed. These activities resulted in significant expenditures and high cash operating costs.

Glencairn continues to conduct metallurgical test work. Results have been extremely encouraging. Product size of 65 mesh has achieved recoveries of between 92% to 96%. These results are significantly better then the current recoveries of 41% to 45%. Studies are underway to establish the options of maximizing the economics of the Libertad mine. Glencairn will be moving forward quickly on reviewing and implementing the best course of action. In addition, the Company continues to make incremental improvements in all aspects of the operation, including upgrades to the crushing and screening circuit and implementation of permanent heap leach pads.

The investments in Libertad, in conjunction with new on-site management, are expected to result in better performance.

During the latest quarter, Glencairn commissioned a technical report prepared in accordance with National Instrument 43-101 by independent consultant Scott Wilson Roscoe Postle Associates Inc. The report concludes that, as of June 30, 2006 La Libertad contains indicated mineral resources of 16,294,000 tonnes grading 1.52 grams per tonne gold for total contained gold of 794,000 ounces. In addition, there is an inferred resource of 4,248,000 tonnes grading 1.68 grams per tonne containing 230,000 ounces of gold. The study assumed a cut-off grade of 0.6 grams per tonne, a $500 gold price and metallurgical recovery of 61%. Peter Lacroix, P. Eng., is the Qualified Person within the meaning of National Instrument 43-101 responsible for the technical report and has reviewed and approved the statements above. For further details on the mineral resource estimate, please see the technical report being filed with SEDAR and available soon on SEDAR (www.sedar.com).

Cerro Quema Project

Glencairn owns a 60% interest in Cerro Quema, an advanced gold project in Panama with similar characteristics to the Company's Bellavista Mine. The Company is carrying out an economic update to establish its development strategy.

Mestiza Project

Late in the quarter Glencairn acquired the Mestiza property about 75 kilometres by road from the Limon Mine. The property hosts an inferred resource of 689,700 tonnes grading 10.3 grams per tonne gold, or approximately 228,000 ounces. The deposit remains open at depth and in both directions along strike. Glencairn plans to initiate a drill program to upgrade the resource to reserve status to be followed by an internal feasibility study on the viability of mining with the material to be milled at Limon. Michael Gareau, P.Geo and Glencairn Vice President, Exploration, is the Qualified Person for the Mestiza Project within the meaning of National Instrument 43-101 has reviewed and approved the contents of this release.



Glencairn Gold Corp.
Selected Financial Information

Three months Nine months
ended ended
September 30 September 30
-------------------------------
2006 2005 2006 2005
-------------------------------

Gold sales (ounces) 22,787 9,598 63,670 31,490
Pre-production gold ounces sold (i) 339 4,100 339 4,225
Average spot gold price ($/ounce) 622 439 601 431
Average realized gold price ($/ounce) 618 441 597 432
Cash operating costs ($/ounce) 528 409 405 347
Total cash costs ($/ounce) 555 437 428 373
Gold produced (ounces) 23,106 9,814 62,615 30,867

(in thousands, except per share amounts)
Sales 14,075 4,237 38,027 13,617
Cost of sales 12,026 3,926 25,757 10,912
Net earnings (loss) (3,182) (987) 639 (2,614)
Earnings (loss) per share - basic and
diluted (0.01) (0.01) 0.00 (0.02)

(i) These gold ounces were produced in the pre-commercial production period
and are not included in sales as shown in the Statements of Operations.


Conference Call

A conference call will be held Wednesday, November 15 at 10:00 a.m. To participate, dial 416-695-9757 or, toll free in North America, 1-877-461-2814. The conference call will be archived and available for replay until November 22, 2006, by dialing 416-695-5275 or, toll free in North America, 1-888-509-0081. Use the passcode 635376.

Cautionary Note Regarding Forward-Looking Statements: This press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "General Development of the Business - Risks of the Business" in the Company's Form 40-F on file with the Securities and Exchange Commission in Washington, D.C. and the Company's annual information form for the year ended December 31, 2005 on file with the securities regulatory authorities in Canada. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Contact Information