Goldrush Resources Ltd.
TSX VENTURE : GOD

Goldrush Resources Ltd.

November 28, 2008 09:30 ET

Goldrush Provides Third Quarter 2008 Results and Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2008) - Goldrush Resources Ltd. (TSX VENTURE:GOD) ("Goldrush" or the "Company") hereby provides the results of operations and financial condition for the three and nine months ending September 30, 2008. This information should be read in conjunction with the Audited Financial Statements for the years ending December 31, 2006 and 2007.

Financial Performance

The Company's net loss for the three months ended September 30, 2008 was ($124,784) or ($0.00) per share compared with a net loss of ($117,410) or ($0.00) per share for the same period in 2007. The Company's net loss for the nine months ended September 30, 2008 was ($640,596) or ($0.01) per share compared with a net loss of ($227,323) or ($0.00) per share for the same period in 2007.

The Company had cash on hand of $443,428 and a net working capital of $287,054 at September 30, 2008, as compared to a working capital of $2,225,854 as at December 31, 2007.

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 (www.goldrushresources.ca) and at www.sedar.com.

Corporate Update

The destruction of asset value and fundamental trust that has rocked the financial markets since early September has created an unprecedented situation for all public companies. Against this tidal wave, there is very little that a junior mineral exploration company such as Goldrush can do to enhance shareholder value. Our assets, our exploration plans and the opportunity we provide to generate an exciting gold discovery are perceived by the current market to have little worth.

Our ability to raise additional exploration financing is severely limited in a world that has suddenly become very risk adverse and where banks, large corporations and governments are having difficulty raising capital.

Despite these facts, we believe that junior resource market will recover, albeit the timing for this recovery is currently unknown.

Until a recovery is underway, Goldrush has little choice but to adopt a defensive posture to ensure its survival, while leaving options open to capitalize on future opportunities. Our corporate mandate is premised on the following principles:

- we believe that gold will be a high value commodity in the future;

- we believe that the Ronguen gold resource is a valuable asset and has significant expansion potential;

- we must ensure that Goldrush's financial commitments are limited in order to ensure the continued viability of the Company without additional capital injections for at least the next nine months.

To reach our goal, we have taken the following steps:

- stopped all exploration work and will be releasing the Company's lower priority exploration permits in Burkina Faso;

- refocused our exploration efforts to the identification of prospective gold targets that may become available at a reduced price in the future;

- either renegotiated or cancelled all contracts for discretionary expenses;

- extended the term and reduced the exercise price of share purchase warrants held by third parties to provide a potential source of future funding;

- significantly reduced all management salaries and will eliminate some positions by year-end; and

- instituted a strict budget to ensure that all expenditures are minimized for the foreseeable future.

About Goldrush: Goldrush is a mineral exploration company focused on gold exploration in Burkina Faso, West Africa.

For further information on Goldrush Resources Ltd., shareholders and other interested parties are invited to visit the Company's website at www.goldrushresources.ca.

ON BEHALF OF THE BOARD OF DIRECTORS,

GOLDRUSH RESOURCES LTD.

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.

Contact Information

  • Goldrush Resources Ltd.
    Don Willoughby
    Vice-President Corporate Development
    (416) 607-7347

    or

    Goldrush Resources Ltd.
    Len Brownlie
    President
    (604) 602-9973
    Fax: (604) 681-5910

    or

    Goldrush Resources Ltd.
    Investor Relations
    Email: info@goldrushresources.ca
    Website: www.goldrushresources.ca