Goldrush Resources Ltd.
TSX VENTURE : GOD

Goldrush Resources Ltd.

December 01, 2006 09:30 ET

Goldrush Reports Third Quarter 2006 Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 01, 2006) - Goldrush Resources Ltd. (TSX VENTURE:GOD) today announced its third quarter 2006 financial results. All amounts are expressed in Canadian Dollars.

The Company's net loss for the nine months ending September 30, 2006 was ($601,958) or ($0.02) per share compared with a net loss of ($74,707) or $0.00 per share for the same period in 2005. The largest contributor to the increased loss in 2006 was a stock-based compensation expense of $293,081, which relates to the fair value of stock options and agent warrants granted. During the period, stock options were granted to key members of management and employees whose contributions were deemed to be important to the exploration success of the Company. Agent warrants were issued as compensation for assistance in financing the Company as it raised funds through two successful private placements. The accretion of debt, which relates to the Company's convertible debenture to High River Gold Mines Ltd., provided a charge of $51,632. Other expense categories increased in the first nine months of 2006 as a result of increased corporate activity. These higher costs were partially offset by increased bank interest ($12,167 in 2006 vs. $3,138 in 2005).

The Company's net loss for the three months ending September 30, 2006 was $160,120 or $0.00 per share compared with a net loss of $48,652 or ($0.00) per share for the same period in 2005. The increased loss in 2006 was due to similar changes in expenses as discussed above for the nine-month period.

The Company had net working capital of $2,444,089 at September 30, 2006, as compared to a working capital of $38,169 as at December 31, 2005. The Company's increase in working capital is a result of the $700,000 received from the exercise of 7,000,000 share purchase warrants in the first quarter and the $3,520,000 received from two private placements in the second quarter of 2006.

Property Exploration

In January 2006, the Company acquired 21 exploration permits in Burkina Faso, West Africa from High River Gold Mines Ltd. ("High River"). Subsequent property acquisitions have increased the number of permits controlled and the area covered to approximately 6,000 km2 of prospective geology in Burkina Faso. The Company is now conducting a $2.5 million exploration program on these permits. Details of this exploration program are available at the Company's website: www.goldrushresources.ca and initial exploration results have been reported in news releases dated May 31, July 19, July 27, August 21 and 31, September 19, October 20 and November 1 and 21, 2006. To summarize the November 21, 2006 news release, during the fourth quarter, the Company intends to drill test mineralized showings on seven exploration permits. Details of these drill programs are as follows:


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Type of Number Estimated
Permit Name Area Drilling of Meters Completion Date
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Falagountou IV Essakane Diamond 419 meters November 6, 2006
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Olongo Hounde Rotary Air 6,000 meters Late December, 2006
Blast
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Bangbara Hounde Rotary Air 4,000 meters Late December, 2006
Blast
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Kongoussi I Bissa Rotary Air 2,500 meters Early December, 2006
Blast
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Kongoussi I Bissa Reverse 1,000 meters To follow rotary air
Circulation blast drill program
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Tougouri Taparko Reverse 300 meters Late November, 2006
Circulation
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Nomikdou Taparko Reverse 370 meters Late November, 2006
Circulation
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Wole Taparko Reverse 200 meters Late November, 2006
Circulation
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Results from these programs will be announced when they are received.

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.

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

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