New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

November 22, 2010 07:00 ET

New Millennium Announces Financial Results for the Third Quarter Ended September 30, 2010

CALGARY, ALBERTA--(Marketwire - Nov. 22, 2010) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

New Millennium Capital Corp. ("NML" or the "Company") (TSX VENTURE:NML) announced today its financial results for the third quarter ended September 30, 2010.

The following discussion of the Company's financial performance is based on the Interim Consolidated Financial Statements and the Management's Discussion and Analysis ("MD&A"), which have been filed on the SEDAR website at www.sedar.com.

The Company's results of operations for the three months ended September 30, 2010 is a net loss of $6,566,000 ($0.04 per share) compared to a net loss of $572,000 ($0.00 per share) for the corresponding period in 2009. The loss represents expenses of $6,585,000 (2009 - $840,000), net of investment income of $19,000 (2009 - $13,000), and future income taxes recovery of nil (2009 - $255,000). The most significant expense items were general and administrative of $371,000 (2009 - $423,000), professional fees of $6,150,000 (2009 - $295,000) and market development of $50,000 (2009 - $115,000).

The net loss for the nine-month period ended September 30, 2010 was $7,822,000 ($0.06 per share) compared to a net loss of $2,490,000 ($0.02 per share) for the corresponding period in 2009. This loss represents expenses of $8,323,000 (2009 - $3,017,000) and loss on sale of long-term investments of $6,000 (2009 - nil), net of recovery in fair value of long-term investments of $168,000 (2009 - reduction in fair value $180,000), of investment income of $28,000 (2009 - $112,000) and future income taxes recoverable of $311,000 (2009 - $595,000). Again, the most significant expense items were general and administrative of $1,553,000 (2009 - $2,070,000), professional fees of $6,563,000 (2009 - $665,000), foreign exchange of $17,000 (2009 - $81,000) and market development of $172,000 (2009 - $179,000).

As at September 30, 2010, the carrying value of mineral properties increased by $6,878,000 to $50,256,000 from $43,378,000 as of December 31, 2009. The main components of the mineral properties were mineral licenses ($4,123,000), resource evaluation ($20,929,000), drilling ($18,576,000) and environmental ($11,994,000) less tax credits and mining duties ($5,672,000).

The most significant third quarter activities, which are fully described in the MD&A were: (1) the acquisition of an additional mineral claim to consolidate NML's Direct Shipping Ore ("DSO") Goodwood property and the increase of its DSO project resource estimate; (2) the court challenge by Quebec North Shore and Labrador Railway ("QNS&L") of the rail tariff arbitration awarded in Q2 by the Canadian Transportation Agency regarding a railway tariff on QNS&L; (3) an Agreement with the Quebec Innu to eliminate the Schefferville blockade and restart Impact and Benefit Agreement negotiations; and (4) a positive DSO investment decision by Tata Steel Global Minerals Holdings Pte Ltd ("Tata Steel") thereby exercising its option to acquire an 80% interest in NML's Schefferville DSO Project.

The significant subsequent events also reported in the Q3 2010 MD&A were: (1) the appointment of Mr. H. M. Nerurkar, Tata Steel Limited's Managing Director to the NML Board; (2) the establishment of a Joint Venture Company(1) with Tata Steel to advance the DSO project; and (3) the completion of the first phase of the Airborne Gravity Gradiometer and High Sensitivity Magnetometer survey near Schefferville, Québec that reveals favourable targets for additional deposits.

About New Millennium

New Millennium controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation is also advancing to near term production its DSO Project. Tata Steel, one of the top 10 steel producers of the world, owns 27.3% of New Millennium and is the Corporation's largest shareholder and strategic partner.

Tata Steel has exercised its exclusive option to participate in the DSO Project and has a commitment to purchase at world prices the resulting production (see news release 10-16, September 14, 2010). Tata Steel also has an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KéMag Project (see news release 08-17, October 1, 2008 and news release 09-11, June 30, 2009). The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated resources at an average grade of 29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of 29.3% Fe (see news release 06-13, July 5 2006 and 07-11, July 17, 2007); KéMag contains 2.1 billion tonnes of Proven and Probable reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred resources at an average grade of 31.2% Fe (see news release 09-01, January 15, 2009).

The Corporation's DSO project contains 64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8%Fe, 8.1 million tonnes of Measured and Indicated Mineral Resources at an average grade of 58.8% Fe, 7.2 million tonnes of Inferred Resources at an average grade of 56.8% Fe and about 40.0 - 45.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03, February 11, 2009 and news release 09-05, March 4, 2009, news release 09-16, December 9, 2009 and news release 10-12 dated July 8, 2010). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the historical estimate should not be relied upon.

The Corporation's mission is to add shareholder value through the responsible and expeditious development of the Millennium Iron Range and other mineral projects to create a new large source of raw materials for the world's iron and steel industries.

For further information, please visit www.nmlresources.com, www.tatasteel.com and www.corusgroup.com.

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management of the Corporation's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Corporation's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.


(1) This company will be 80% owned by Tata Steel and 20% by NML.

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