SOURCE: Longview Capital Partners Incorporated

April 19, 2007 08:30 ET

Longview Capital Partners Earns $34.1 Million After-Tax in 2006

Return on Equity Equals 88.0%

VANCOUVER, BC -- (MARKET WIRE) -- April 19, 2007 -- Longview Capital Partners Incorporated (TSX-V: LV) today announced financial results for the fourth quarter and year ended December 31, 2006. Highlights include:

Full year:

* Earnings per share of $0.47, compared with $0.11 for 2005

* Return on equity of 88.0% exceeds 14.5% increase in S&P/TSX Composite Index

* Revenues grow to $56.4 million from $3.9 million in 2005

* Net income grows to $34.2 million from $1.7 million in 2005

* Fair value of investment portfolio increases to $87.5 million from $9.7 million in 2005

Fourth quarter results

* Earnings per share of $0.29 compared with $0.51 for the fourth quarter of 2005

* Revenues grow to $36.9 million from $3.9 million for the fourth quarter of 2005

* Net income grows to $23.1 million from $2.4 million for the fourth quarter of 2005

"Our 2006 fiscal year was excellent in all aspects," said Damien Reynolds, founder, Chairman and CEO of Longview. "These results reflect the success of Longview's first full year of operations in which we raised a total of $23.1 million to further the Company's model of investing in early stage natural resource opportunities. Our investment portfolio has performed remarkably well in 2006 and has grown to more than $87 million at year-end. Looking forward to 2007, with Longview Technical fully formed and operational (www.longviewtechnical.com), we believe we will create even greater returns for our shareholders."

Longview's investment portfolio at December 31, 2006 included over 30 public companies and had weightings of: 21.9% in gold companies, 21.5% in uranium companies, 20.6% in tungsten and molybdenum companies, 10.4% in coal companies, and 5.6% in iron companies. Longview is developing additional early stage natural resource opportunities in areas including nickel, copper, oil and gas, and diamonds.

The company also made a restatement to its financial statements for the year ended December 31, 2005 to reflect the fair value of warrants held by the Company in accordance with the Chartered Accountants Institute of Canada Accounting Guideline 18, Investment Companies, and the future tax liabilities on unrealized gains on investments recognized. "The effect of these changes was to reduce net income by only $0.4 million, or $0.02 per share," stated Ian Fodie, CFO of Longview. "This change in accounting has also been applied to previously filed quarterly financial statements of 2006."

About Longview

Longview Capital Partners is an investment company creating long-term shareholder value by capitalizing on early stage opportunities in the natural resource sector, and having the resultant earnings growth recognized in its share price. Longview is incorporated under the laws of the Province of British Columbia and began trading on the TSX Venture Exchange under the symbol "LV" on September 5, 2005.

Attached are the consolidated balance sheet, Statement of Operations and Retained Earnings, and Statement of Cashflows for the years ended December 31, 2006 and 2005.

Statements in this news release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute Forward-looking statements. Such statements are based on numerous assumptions and are subject to all the risks and uncertainties inherent in the Company's business, including risks related to mineral exploration and development. Consequently, actual results may vary materially from those described in the forward-looking statements.

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

LONGVIEW CAPITAL PARTNERS INCORPORATED
(formerly Longview Strategies Incorporated)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2006 AND 2005

==========================================================================
                                                        2006          2005
--------------------------------------------------------------------------
                                                                 (restated)
ASSETS

Cash and cash equivalents                      $   2,734,605  $    151,229
Investments, at fair value                        87,539,741     9,716,130
Accounts receivable                                  756,782        93,720
Deposits and prepaid expenses                        111,910         1,000
Deferred costs                                       612,119             -
Fixed assets                                         232,660             -
                                               ---------------------------

                                               $  91,987,817  $  9,962,079
==========================================================================

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

Accounts payable and accrued liabilities       $   2,053,136  $     83,479
Income taxes payable                               2,363,215             -
                                               ---------------------------

                                                   4,416,351        83,479

Future tax liabilities                            16,520,596     1,337,712
                                               ---------------------------

                                                  20,936,947     1,421,191
                                               ---------------------------

Shareholders' equity

 Share capital                                    28,299,289     6,314,125
 Contributed surplus                               6,882,074       514,383
 Retained earnings                                35,869,507     1,712,380
                                               ---------------------------

                                                  71,050,870     8,540,888
                                               ---------------------------

                                               $  91,987,817  $  9,962,079
==========================================================================

LONGVIEW CAPITAL PARTNERS INCORPORATED
(formerly Longview Strategies Incorporated)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2006 AND 2005

==========================================================================
                                                        2006          2005
--------------------------------------------------------------------------
                                                                 (restated)

REVENUES
 Gain on disposal of investments, net          $   9,440,934  $     20,967
 Unrealized gain on investments, net              45,994,515     3,878,549
 Interest and rental income                          165,803         4,869
 Other income                                        850,403        71,000
                                               ---------------------------

                                                  56,451,655     3,975,385
                                               ---------------------------

EXPENSES
 Operating, general and administrative             2,840,552       425,161
 Depreciation                                         18,146             -
 Foreign exchange gain                              (157,272)            -
 Interest                                             40,827             -
 Stock-based compensation                          2,006,176       477,050
                                               ---------------------------

                                                   4,748,429       902,211
                                               ---------------------------

Income before income taxes                        51,703,226     3,073,174

 Provision for income taxes                      (17,546,099)   (1,337,712)
                                               ---------------------------

Net income for the year                           34,157,127     1,735,462
                                               ---------------------------

Retained earnings (Deficit),
 beginning of year,
 as previously reported                            2,097,555       (23,082)

Change in accounting                                (385,175)            -
                                               ---------------------------

Retained earnings (Deficit),
 beginning of year, as restated                    1,712,380       (23,082)
                                               ---------------------------

Retained earnings, end of year                 $  35,869,507  $  1,712,380
==========================================================================

Basic earnings per share                       $        0.47  $       0.11
==========================================================================

Diluted earnings per share                     $        0.45  $       0.10
==========================================================================

Weighted average number of
 common shares outstanding
 Basic                                            72,969,608    15,816,377
 Diluted                                          76,221,060    17,340,242
==========================================================================

LONGVIEW CAPITAL PARTNERS INCORPORATED
(formerly Longview Strategies Incorporated)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2006 AND 2005

==========================================================================
                                                        2006          2005
--------------------------------------------------------------------------
                                                                 (restated)

CASH FLOWS FROM (USED IN)
 OPERATING ACTIVITIES
 Net income for the year                       $  34,157,127  $  1,735,462
 Items not affecting cash:
  Unrealized gain on investments, net            (45,994,515)   (3,878,549)
  Gain on disposal of investments, net            (9,440,934)      (20,967)
  Provision for income taxes - future             15,182,884     1,337,712
  Stock-based compensation                         2,006,176       477,050
  Depreciation                                        18,146             -

 Changes in non-cash working capital items:
  Increase in accounts receivable                   (663,061)      (90,072)
  Increase in deposits and prepaid expenses         (110,910)       (1,000)
  Increase in accounts payable and
   accrued liabilities                             1,969,657        77,575
  Increase in income taxes payable                 2,363,215             -
                                               ---------------------------
Net cash used in operating activities               (512,215)     (362,789)
                                               ---------------------------

CASH FLOWS FROM (USED IN)
 INVESTING ACTIVITIES
 Purchase of investments                         (57,819,522)   (1,500,586)
 Proceeds from disposal of investments            40,414,240        97,809
 Purchase of fixed assets                           (250,806)      (13,837)
                                               ---------------------------
Net cash used in investing activities            (17,656,088)   (1,416,614)
                                               ---------------------------

CASH FLOWS FROM (USED IN)
 FINANCING ACTIVITIES
 Shares and warrants issued for cash              20,244,491     1,621,342
 Proceeds from exercise of options                   102,500             -
 Proceeds from exercise of warrants                  424,688             -
                                               ---------------------------
Net cash provided by financing activities         20,751,679     1,621,342
                                               ---------------------------

Increase (decrease) in cash and
 cash equivalents during the year                  2,583,376      (158,061)

Cash and cash equivalents, beginning of year         151,229       309,290
                                               ---------------------------

Cash and cash equivalents, end of year         $   2,734,605  $    151,229
==========================================================================

Cash and cash equivalents consist of:
 Cash in bank and brokerage accounts           $   2,687,030  $    151,229
 Cash in trust                                        47,575             -
                                               ---------------------------

                                               $   2,734,605  $    151,229
==========================================================================

Contact Information

  • For more information on Longview Capital Partners Incorporated, please
    contact:
    Mr. Spiro Kletas
    Investor Relations
    (604) 681-5755
    www.longviewcp.com