Newmex Minerals Inc.
TSX VENTURE : NMM

January 27, 2006 16:48 ET

Newmex Announces Year End Results

CALGARY, ALBERTA--(CCNMatthews - Jan. 27, 2006) - Newmex Minerals Inc. ("Newmex" or the "Company") (TSX VENTURE:NMM) is pleased to announce the following financial and operating highlights for the fiscal year ended September 30, 2005.

Highlights:

- For the year ended September 30, 2005 the Company had net income of $365,348 versus net income of $291,677 in the previous year. The 2005 net income was primarily derived from a gain realized on a debt settlement with Proprietary Industries Inc., Newmex's former parent company.

- During the course of the fiscal year and subsequently in December, 2005, the Company raised by way of private placement total gross proceeds of $20,088,500.

- Subsequent to year end, the Company began the process of transitioning from a mining company to an oil and gas exploration and development company.

- Subsequent to September 30, 2005, Gary Guidry was appointed Chief Executive Officer and President, and Gary Hyde was appointed Chief Operating Officer. Both are experienced oil and gas executives.

- The Company signed memorandums of understanding related to the acquisition of oil and gas opportunities, with the conclusion of the acquisitions occurring subsequent to September 30, 2005.

Complete financial and operating details for the Company are contained in its 2005 Annual Report which has been mailed to the Company's shareholders. The 2005 Annual Report is also available on SEDAR (www.sedar.com) or by contacting the Company.

The resolution of the Company's debt, the raising of funds through the issue of common shares and the investment opportunities manifested to the Company, have all permitted Newmex to refocus its strategic direction towards the North American oil and gas industry. As a result, the Company has acquired and is in the process of acquiring a number of oil and gas opportunities including large gas and heavy oil development projects in the U.S. and Canada.

Gary Guidry, President and CEO

Forward-looking statements: This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks an uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.

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

Contact Information

  • Newmex Minerals Inc.
    Gary Guidry
    President and CEO
    (403) 716-4051
    (403) 261-1007 (FAX)
    gary.guidry@tykoil.com
    or
    Newmex Minerals Inc.
    Gary Hyde
    Chief Operating Officer
    (403) 716-4063
    (403) 261-1007 (FAX)
    gary.hyde@tykoil.com