LOUVEM MINES INC.
TSX VENTURE : LOV

LOUVEM MINES INC.

February 26, 2009 09:00 ET

Louvem Mines Reports its Fourth Quarter and Year End Results for 2008

- Net earnings of $3,182,904 for 2008, compared with net earnings of $555,879 for 2007 - Gold sales of 16,454 ounces are 26% above 2007

MONTREAL, QUEBEC--(Marketwire - Feb. 26, 2009) - Louvem Mines Inc. (TSX VENTURE:LOV), announces today its financial results for the fourth quarter and year ended December 31, 2008.

2008 Fourth Quarter Results

Revenues for the fourth quarter of 2008 were $4,004,653, a 184% increase compared with $1,407,996 for the same period in 2007. This increase in revenues is a result of more ounces of gold sold at a 26% higher selling price per ounce, in Canadian dollars. In the fourth quarter of 2008, a total of 4,101 ounces of gold were sold at an average price of US$908 (CAN$968), compared with 1,807 ounces of gold sold at an average price of US$717 (CAN$771) for the same period in 2007.

Operating costs for the fourth quarter of 2008 were $2,462,086 compared with $740,056 in the same period in 2007. The cash cost per ounce of gold sold was up significantly to US$563 in the fourth quarter compared with US$381 for the corresponding period last year. The increase is mainly attributable to the increased definition drilling, higher labour costs and milling costs.

The Company posted a net profit of $422,611 for the fourth quarter of 2008 compared with $26,656 for the same period in 2007. The difference is due primarily to:

- the change in the profit margin from mining operations, which totalled $653,015 during the fourth quarter of 2007, compared with $1,506,656 during the same period in 2008, owing to a substantial rise ounces of gold sold and the higher selling price per ounce of gold that was achieved;

- the increase in exploration costs which were $329,422 for the fourth quarter of 2008 compared with $199,394 for the same period in 2007;

- the recording of a $97,022 non-cash provision for future closure cost; and

- an higher charge for mining and income taxes in 2008.

Beaufor Mine Production Results

During the fourth quarter of 2008, 30,343 tonnes of ore from the Beaufor Mine were processed at an average recovered grade of 8.41 g/t, and 8,201 ounces of gold were sold at an average price of US$908 (CAN$968) per ounce, Louvem's share was 4,101 ounces. In the same quarter the prior year, 13,921 tonnes of ore were processed at an average recovered grade of 8.07 g/t, and 3,613 ounces of gold were sold at an average price of US$717 per ounce, Louvem's share was 1,807 ounces.

Reserves and Resources Calculation

At the end of 2008, Proven and Probable Reserves at the Beaufor Mine were estimated at 244,063 tonnes at a grade of 8.89 g/t for 69,792 ounces of gold compared with 75,632 ounces at the end of 2007. Measured and Indicated Resources were estimated at 148,000 ounces at the end of 2008 compared with 141,267 ounces at the end of 2007. Significant exploration below the current mining infrastructure resulted in a major increase in Inferred Resources which went from 30,278 ounces at the end of 2007 to 154,927 ounces at the end of 2008. More exploration is planned at the Beaufor Mine in 2009 to further evaluate the potential of expanding the mine at depth.



Beaufor Mine (100%)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
December 31, 2008 December 31, 2007
Tonnes Grade Tonnes Grade
Reserves (metric) (g/t Au) Ounces(1) (metric) (g/t Au) Ounces(1)
-------------------------------------------------------------------------
Proven 96,678 7.17 22,287 90,822 7.56 22,085
Probable 147,385 10.03 47,505 164,879 10.10 53,547
Total Proven
and Probable 244,063 8.89 69,792 255,701 9.20 75,632
-------------------------------------------------------------------------
-------------------------------------------------------------------------

-------------------------------------------------------------------------
-------------------------------------------------------------------------
December 31, 2008 December 31, 2007
Tonnes Grade Tonnes Grade
Resources(2) (metric) (g/t Au) Ounces(1) (metric) (g/t Au) Ounces(1)
-------------------------------------------------------------------------
Measured 101,767 5.46 17,861 101,160 5.73 18,639
Indicated 635,839 6.37 130,139 591,534 6.45 122,628
Total Measured
and Indicated 737,606 6.24 148,000 692,694 6.34 141,267

Inferred 655,804 7.35 154,927 133,962 7.03 30,278
-------------------------------------------------------------------------
-------------------------------------------------------------------------

(1) Louvem's share is 50%
(2) Resources presented in the above table are exclusive of reserves and do
not have demonstrated economic viability at this time.


2008 Review

Precious metals revenues rose by $5,785,508 in 2008 to reach $15,537,392 compared with $9,751,884 in 2007. The difference is attributable to the increase in gold sales and to the higher average selling price per ounce that was achieved. Specifically, 16,454 ounces of gold were sold at an average price of US$886 (CAN$944), compared with 13,091 ounces of gold sold at an average price of US$693 (CAN$745) in 2007.

Operating costs for the year 2008 were 8,437,809, a 35% increase compared with $6,261,129 in the same period in 2007. The cash cost per ounce of gold sold was up 8% to US$481 in 2008 compared with US$445 in 2007, mainly as a result of increases in labour and milling costs. The Company posted a net profit of $3,182,904 for the year ended December 31, 2008, compared with $555,879 in 2007.

In 2008, 115,674 tonnes of ore, at an average recovered grade of 8.85 g/t, were processed, and 32,908 ounces of gold were sold at an average price of US$886 per ounce, Louvem's share was 16,454 ounces. In the same period the prior year, 97,429 tonnes of ore, at an average recovered grade of 8.36 g/t, were processed, and 26,182 ounces of gold were sold at an average price of US$693 per ounce, Louvem's share was 13,091 ounces.

Outlook

Production at the Beaufor Mine in 2009 is expected at 25,000 to 30,000 ounces of gold (Louvem's share 12,500 to 15,000 ounces). More than 45,000 metres of drilling is planned for this year, mostly to evaluate the potential to expand the mine at depth. The Company has no hedging contracts on gold and currency. Louvem currently has cash and cash equivalents of $6,341,887 and no long term debt.

Jean-Guy Rivard, President and Chief Executive Officer

About Louvem Mine Inc.

The Company has a 50% interest in the Beaufor Mine and owns other exploration properties located near Val-d'Or, in North-western Quebec, Canada.

More information on Louvem Mines can be found on its website at: www.louvem.com.

National Instrument 43-101 (NI 43-101)

The reserve and resource calculation of the Beaufor Mine as of December 31, 2008 was performed by Mr. Richard Dubuc, Geo, a qualified person as defined by NI 43-101 and was supervised by Mr. Daniel Adam, Geo., Ph.D., Exploration Director, an employee of Richmont Mines Inc. The reserve calculations were prepared using a gold price of US$785 (CAN$785) for 2008 and US$650 (CAN$650) for 2007.



KEY FINANCIAL DATA
-----------------------------------------------------------------------
Three-month period Fiscal year
ended December 31 ended December 31
CAN$ 2008 2007 2008 2007
-----------------------------------------------------------------------
Results ($)
Revenues 4,004,653 1,407,996 15,637,679 9,841,438
Net earnings 422,611 26,656 3,182,904 555,879
Cash flow from (used
in) operations 1,256,863 (728,578) 5,532,065 1,881,910

Results per share ($)
Net earnings basic 0.02 - 0.12 0.02

Weighted average number
of common
Shares outstanding 25,929,689 25,929,689 25,929,689 25,929,689
-----------------------------------------------------------------------

-----------------------------------------------------------------------
December 31, 2008 December 31, 2007
-----------------------------------------------------------------------
Financial position ($)
Total assets 9,281,325 4,777,562
Working capital 5,468,777 1,817,690
Long term debt - -
-----------------------------------------------------------------------

SALES AND PRODUCTION DATA
-----------------------------------------------------------------------
Beaufor Mine - 50% Three-month period ended December 31
2008 2007
-----------------------------------------------------------------------
Gold sales (ounces) 4,101 1,807
Production of gold (ounces) 3,814 1,902
Cash cost (per ounce sold) (US$) 563 381
Cash cost (per ounce sold) (CAN$) 600 410
Average selling price
(per ounce of gold) (US$) 908 717
Average selling price
(per ounce of gold) (CAN$) 968 771
-----------------------------------------------------------------------

-----------------------------------------------------------------------
Beaufor Mine - 50% Fiscal year ended December 31
-----------------------------------------------------------------------
2008 2007
-----------------------------------------------------------------------
Gold sales (ounces) 16,454 13,091
Production of gold (ounces) 17,177 13,102
Cash cost (per ounce sold) (US$) 481 445
Cash cost (per ounce sold) (CAN$) 513 478
Average selling price
(per ounce of gold) (US$) 886 693
Average selling price
(per ounce of gold) (CAN$) 944 745
-----------------------------------------------------------------------
Average exchange rate used for 2008: US$1 equals CAN$1.0660
Average exchange rate used for 2007: US$1 equals CAN$1.0748

The TSX Venture Exchange accepts no responsibility for the veracity or accuracy of this news release.

Contact Information

  • Louvem Mines Inc.
    Jean-Guy Rivard
    President and Chief Executive Officer
    514-397-1448
    514-397-8620 (FAX)
    www.louvem.com