Goldrush Resources Ltd.

Goldrush Resources Ltd.

April 28, 2006 09:30 ET

Goldrush Announces 2005 Year-End Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 28, 2006) - Goldrush Resources Ltd. (TSX VENTURE:GOD) ("Goldrush" or the "Company") is pleased to provide the results of operations and financial condition for the year ending December 31, 2005. This information should be read in conjunction with the Audited Financial Statements for the years ending December 31, 2004 and 2005. The Company's significant accounting policies are set out in Note 2 of the audited consolidated financial statements. The Company's financial statements are prepared in accordance with Canadian Generally Accepted Accounting Principles ("Canadian GAAP"). The Company's reporting currency is the Canadian dollar. Additional information on the Company is available on the Company's website ( and at

The Company's net loss for the year ending December 31, 2005 was $347,121 or ($0.02) per share compared with a net loss of $95,203 or ($0.01) per share per share for the same period in 2004. The main contributors to the 2005 loss were the write-down of the OK Copper Property ($343,671), legal and accounting fees ($41,866), stock-based compensation expense ($40,320), management fees ($30,000) and trust and filing fees ($19,501). These expenses were partially offset by forgiveness of debt ($26,375 - relating to the forgiveness of some long standing debts of the Company), interest income ($3,600) and future income tax recovery ($106,860). The stock based compensation expense relates to the issuance of 600,000 stock options to members of the board of directors during the year. Legal and management fees were higher in 2005 than in 2004 due to a higher level of corporate activity.

The Company had a net working capital of $38,169 as at December 31, 2005, as compared to working capital of $126,373 as at December 31, 2004. The Company's decrease in working capital is a result of the utilization of funds received from private placements in 2004. The majority of these funds were utilized for an exploration program on the OK Copper Project and for regulatory, accounting and administrative expenses.

In the three month period ending December 31, 2005, the Company's loss was $272,414 or $0.02 per share, as compared to a loss of $20,461 or $0.00 per share in the three months ended December 31, 2004. The main reason for the increased loss in 2005 was the write-down of the OK Copper Property.

Subsequent to the end of 2005, Goldrush entered into a Strategic Alliance Agreement with High River Gold Mines Ltd. (HRG:TSX) ("High River") under which Goldrush has acquired 21 exploration permits totaling approximately 4,690 square km in Burkina Faso, West Africa. Prior to the end of 2006, the Company intends to spend a total of US$2.2 million (C$2.6 million) on its West African exploration program. To date, the Company has advanced C$500,000 to initiate the exploration program.

The Company has recently announced two private placement financing which have been fully subscribed and which, upon regulatory approval, will provide Goldrush with gross proceeds of up to C$3,520,000. All documentation regarding these placements has now been submitted to the regulatory authorities for final approval.

For further information on Goldrush Resources Ltd., investors are invited to visit the Company's website at



Len Brownlie - President

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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

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