MDN Inc.

MDN Inc.

August 13, 2009 10:30 ET

MDN Inc.: Net Income of $1,153,330 or $0.012 Per Share

For the second quarter ended June 30, 2009

MONTREAL, QUEBEC--(Marketwire - Aug. 13, 2009) - MDN inc. ("MDN") (TSX:MDN) today filed its interim financial statements for the three-month period ended June 30, 2009. The Management and Discussion Analysis as well as the interim financial statements are available on the Company's web site at and on SEDAR (


- Revenue of $2,849,265 compared with $8,385,228 for the same period in 2008.

- Net income of $1,153,330 or $0.012 per share compared to $6,645,689 or $0.073 per share for the same period in 2008.

- The Tulawaka gold mine in Tanzania produced 24,561 ounces of gold with an average grade of 7.5 g/t at a recovery rate of 94.5%. MDN's 30% ownership interest in the Tulawaka gold mine gives it a pro-rata share equal to 7,368 ounces of gold.

- The total cash costs to produce an ounce of gold in the quarter were US$363.

- The Tulawaka gold mine sold 22,536 ounces of gold on the spot market at an average price of US$922 per ounce, generating gross income of US$20.8M. The MDN share (30%) is equal to 6,760 ounces of gold sold, for a gross income equal to US$6.2M.

- Closing of an investment transaction, on June 2, 2009, with the shareholders of Les Mineraux Crevier Inc. ("MCI"), including its main shareholder IAMGOLD Corporation ("IAMGOLD" or "IMG"), for the acquisition of 28.75% of the shares of MCI as well as the entire $1.5 million in convertible debentures, for a total amount of $2,325,000. The transaction provides to MDN the right to acquire up to 75% of the shares of MCI, over a maximum period of three years, in return for funding the development and feasibility study of a 43-101 compliant niobium and tantalum resource (the "Resource"), located in Quebec's Lac St-Jean Region.

- The MCI in situ Resource amounts to 47,895,000 kg of niobium oxide and 5,124,250 kg of tantalum oxide in the indicated category as well as 27,345,600 kg of niobium oxide and 3,443,520 kg of tantalum oxide in the inferred category (see table below).

de tonnes
43-101Values metriques Ta2O5 g/t Nb2O5 g/t Ta2O5 kg Nb2O5 kg
Indicated(i) 25.75 199 1,860 5,124,250 47,895,000
Inferred(i) 16.88 204 1,620 3,443,520 27,345,600
(i) Cut-off grade of 1,000 g/t Nb2O5 included

- As of May 25, 2009, and in compliance with regulatory authorities, MDN has posted on SEDAR ( the 43-101 report on the Resource.

- Appointment on April 22, 2009, of Mr. Paul Gobeil on MDN'S Board of Directors. Paul Gobeil, F.C.A. is a recognized member of both Quebec and the international business communities. He is presently a Board member of the National Bank of Canada and acts as President of the Auditing and Risk Management Committee. He also serves on many other Boards including those of Metro, Diagnocure, Yellow Pages Income Fund, Munich Reinsurance Company of Canada, as well as several educational, cultural and charitable organizations.

- Following the notice of intent to proceed with a normal course issuer bid filed on March 24, 2009, with the Toronto Stock Exchange, the Company has purchased 116,500 shares at an average cost of $0.73 per share for a total amount of $85,495 during the second quarter.


For the three months ended June 30, 2009 2009 2008
(In thousands of dollars, except for amounts per share)

Revenue $2,849 $8,385
Administrative expenses $871 $886
Gold price royalties $0 $950
Foreign exchange gain (loss) ($200) ($96)
Net income (loss) $1,153 $6,646
Basic and diluted net earnings (loss) per share $0.012 $0.073
Weighted-average number of shares outstanding (in
thousands) 95,277 90,005


For the three months ended June 30, 2009 100% 30%(MDN)

Gold production (oz) 24,561 7,368
Gold sales (oz) 22,536 6,760
Average sale price / oz ($ US) 922 922
Total revenue (in millions of $ US) 20.8 6.2
Production cost / oz ($ US) 363 363



- A MMI (Mobil Metal Ion) soil sampling program, successfully conducted in April 2009, on the Isambara project, confirms the geological model previously advanced (see March 19, 2009 press release) with respect to the geometry of the gold-bearing structures, the apparent left-hand displacement of each of the structures, and the presence of numerous parallel gold- bearing structures.

- The Southern Area can now be described as a series of parallel gold-bearing structures extending over a strike length of 1.3 km and having significant lateral extensions. To date, these numerous structures have only been partially drill tested.

- The circumstances leading to a systematic drilling approach are the following:

- the high gold-bearing values obtained in the soil sampling coincide
with the surface projected mineralization transected by the drilling;

- the north-west orientation of the gold-bearing structures is

- the eastern and western sides of the Southern Area form part of the
same gold-bearing horizon, but are displaced by north-east oriented
faults or dykes;

- several extensions of the gold-bearing structures have apparently
undergone little or no drill testing;

- the strike length of the Southern Area has been extended from 800
meters to 1.3 kilometers;

- several of the gold-bearing structures appear in a parallel formation;

- a new structure has been discovered at the north end of the Southern
Area, where two drill tests previously yielded values of 10.51 g/t of
gold over 2 meters (RC233) and 9.45 g/t of gold over 1 meter (RC234).

- With these new encouraging data, a drill program has been undertaken at the beginning of July in the Southern Area, while two other MMI soil sampling programs are conducted in the Central and Northern Areas with a view to defining additional drilling targets.

- The Isambara Project is characterized by a soil anomaly with a strike length of 5 kilometers divided into three areas (South, Central and North). To date, the main focus has been on the Southern Area in terms of drilling and analysis due to the ease of conducting all the preliminary work for the next drilling.

- At the heart of the Southern Area are two structures which have been shown to contain the highest gold-bearing values, although they have barely been tested below a vertical depth of 40 meters. In fact, based on all the drilling data obtained to date for the Isambara Project, the highest gold-bearing values actually appear to be located below the vertical depth of 40 meters.

- In the MMI survey, 528 soil samples were obtained, including 26 blank samples to check field and laboratory procedures. Samples were taken every 25 meters along 12 lines spaced 100 to 800 meters apart across the gold-bearing structures of the Southern Area. The samples were prepared in the SGS laboratories in Mwanza, Tanzania, and shipped to the SGS Laboratory in Toronto, Canada, for analysis of the gold and 45 other elements using the MMI procedure.

- Concerning the Ikungu project, geochemical soil surveys with 800 meters space lines have been completed in order to cover the entire property and the results will be announced shortly. MMI detailed soil sampling will also be undertaken in order to better define the extension of the drilling targets already identified. A first phase of drilling will begin following the drilling works on Isambara for the targets previously selected and a second phase will follow once the MMI detailed soil sampling is completed.


- The mining exploration properties held in Quebec have been the subject of detailed analysis over the last few months. A strategy involving analysis and establishing the goals that are to be met was instituted aiming at maximising the value of the portfolio.

- The acquisition of the niobium and tantalum project, will now be on is promoted under the name of Anita Project, will be MDN's priority in the upcoming months for the geology and metallurgy aspects, as well as its positioning towards the markets.

"The second quarter's achievements are encouraging, especially the compilation of the Isambara and Ikungu geological results in Tanzania" said Paul-A. Girard, MDN's President and Chief Executive Officer. "Furthermore, as the underground development at the Tulawaka Mine advances, the likelihood of further gold production and continued profitability at the mine becomes enhanced. Also, in Quebec, our recent investment in the niobium and tantalum project is quickly becoming an integral part of core assets, and an additional source of revenue for MDN."

The technical and scientific information in this press release was reviewed by Marc Boisvert, geological engineer and Vice-President Exploration, acting as the qualified person pursuant to National Instrument 43-101.

Forward Looking Statements

All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements are discussed in greater detail in the Company's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. Investors and others who base themselves on the Company's forward-looking statements should carefully consider the factors mentioned in the Annual Information Form as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

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