New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

August 22, 2006 16:56 ET

New Millennium Announces Financial Results for the Second Quarter Ending June 30, 2006 and Filing of Pre-Feasibility Study Technical Report

CALGARY, ALBERTA--(CCNMatthews - Aug. 22, 2006) - New Millennium Capital Corp. (TSX VENTURE:NML)

New Millennium Capital Corp. ("NML") announced today its financial results for the second quarter ending June 30, 2006.

The Interim Consolidated Statement of Earnings indicates a net loss for the three months ended June 30, 2006 of $206,856 or $0.00 per share compared to a net loss of $275,651 or $0.01 per share for the corresponding period in 2005. This loss represents expenses of $618,169 (2005 - $472,864) net of interest revenue of $56,554 (2005 - $18,034) and income taxes recoverable of $354,759 (2005 - $179,179). The most significant expense items were general and administrative of $259,000 (2005 - $232,000), professional fees of $123,000 (2005 - $65,000), stock based compensation of $115,000 (2005 - $Nil) and market development of $108,000 (2005 - $168,000).

The net loss for the six month period ended June 30, 2006 was $604,158 or $0.01 loss per share compared to a net loss of $513,923 or $0.01 loss per share for the corresponding period in 2005. This loss represents expenses of $1,248,081 (2005 - $862,969) net of interest revenue of $149,371 (2005 - $42,327) and income taxes recoverable of $494,552 (2005 - $306,719). Again, the most significant expense items were general and administrative of $542,000 (2005 - $441,000), professional fees of $269,000 (2005 - $142,000), stock based compensation of $204,000 (2005 - $Nil) and market development of $161,000 (2005 - $265,000).

As at June 30, 2006, the book value of mineral properties increased to $13,840,647 from $9,606,963 as of December 31, 2005 or by $4,233,684. The main components of this increase were resource evaluation of $1,860,315, environmental of $1,815,765 and drilling of $420,835. Through June 30, 2006, NML has expended approximately $3,575,000 of Canadian Exploration Expenses and expects to expend the remaining $425,000 by December 31, 2006.

During the second quarter, 100,000 warrants were exercised resulting in gross proceeds of $50,000.

Significant second quarter activities, which are fully described in the Company's Second Quarter Report under the heading of Management's Discussion and Analysis, were: 1) an increase in the LabMag Iron Ore Resource estimate from 1.0 billion tonnes to more than 3.6 billion tonnes; 2) the execution of a Memorandum of Understanding with Sinosteel Equipment & Engineering Company for Chinese equipment sourcing for the LabMag Project; 3) the Schefferville Innu Nation's decision to reject an offer from the Naskapi Nation of Kawawachikamach to share its equity interest and obligations in the LabMag Iron Ore Project and 4) the announcement by NML that it has retained The Equicom Group Inc. to provide the Corporation with strategic investor relations and financial communications services.

Significant activities subsequent to the second quarter included the successful completion of a Pre-Feasibility Study which established proven and probable iron ore reserves of 3.5 billion tonnes. The Technical Report providing a review of the Pre-Feasibility Study has been filed on SEDAR. In addition, NML announced the commencement of a private placement financing of approximately $ 10 million.

About New Millennium

New Millennium holds an 80% interest in the LabMag Iron Ore Project, the world's largest known undeveloped magnetite reserve that is currently at an advanced stage of exploration. The project is located in the province of Newfoundland and Labrador ("NL") about 220 km north of Labrador City and 30 km northwest of Schefferville, Quebec. The development envisions the construction and operation of a mine, crusher, concentrator, slurry pipeline, pellet plant, shiploading facilities and related infrastructure. Subject to positive feasibility studies and project financing, it is expected that the final pellet product would constitute a significant new source of global pellet supply and would be shipped by ocean vessels to markets in Canada, the United States, Western Europe and Asia. For further information, please visit www.nmlresources.com.

This release may contain forward looking statements within the meaning of the "safe harbor" provisions of US laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. New Millennium does not assume any obligation to update any forward looking information contained in this news release.

No regulatory authority has approved or disapproved the content of this release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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