August 31, 2010 21:59 ET

Nordex Explosives Ltd. Announces Record Sales for Second Quarter; Realigns Executive Management

KIRKLAND LAKE, ONTARIO--(Marketwire - Aug. 31, 2010) -


LES EXPLOSIFS NORDEX LTEE/NORDEX EXPLOSIVES LTD. ("Nordex" or the "Corporation") (TSX VENTURE:NXX) announced its financial results for the second quarter ending June 30, 2010. Nordex celebrated its 40th anniversary in business this year by achieving its highest quarterly sales in its 40 year history during the second quarter of 2010.

Sales for the second quarter of 2010 were a record $3,447,560, an increase of 61% over the same three month period in 2009. Net income for the period was reduced substantially to $74,245 due in large part to unforeseen and one-time expenses, including substantial legal and professional fees which included defending a lawsuit brought against the company as well as expenses to defend a challenge to the composition of the Board of Directors brought by a group of concerned shareholders. The former Board of Directors incurred significant expenses defending such challenge, although the concerned shareholders represented over 50% of the then-outstanding voting shares of the Corporation. At the annual and special meeting of shareholders of the Corporation held July 14, 2010, the former directors of the Corporation were defeated in a vote of 3,823,277 votes for the concerned shareholders' slate of directors to 2,266,559 votes for the slate put forward by former management of the Corporation.

It is anticipated that by implementing a strategy of continuing to increase manufacturing capabilities while reducing non-essential expenses the Corporation will be in a position to achieve increases in future net profits.

Total sales for the six months ended June 30, 2010 were $6,242,533 for an increase of 83% compared to sales of $3,411,726 for the six months ended June 30, 2009. Earnings per share were $0.011 during the second quarter ending June 30, 2010 compared to a $0.06 during the same period in 2009. Earnings before interest, taxes, depreciation and amortization and stock based compensation decreased to $280,355 compared to $518,743 for the comparative period in 2009. Net income before tax for the second quarter was $142,704 compared to $423,621 for the second quarter of 2009. The decrease in net income was primarily the result of a large recovery of a bad debt for the same period in 2009 as well as the increased one-time expenses referred to above.

The Board of Directors have determined to realign its senior management; effective September 1, 2010, Jim Taylor, the current Chief Operating Officer has been appointed as Chief Executive Officer and Vice President. Jacques Levesque has been appointed President and Jim O'Reilly has been appointed as non-executive Chairman of the Board of the Corporation.

Outlook for 2010: Nordex Explosives Ltd. is pleased to advise forecasted sales for 2010 are $11,000,000. The Corporation successfully executed a strategy to ensure that Nordex was positioned to respond to the recovery that occurred after the economic downturn that began in 2008. As a result, the Corporation has been able to win significant long term contracts with major mining companies that had previously depended on large multinational suppliers, and has increased sales to quarry and construction clients.

The growth in sales has been substantial in the first half of 2010. This record growth is forecasted to continue for the balance of the 2010 fiscal year. Management expects that with their current business plans, existing and new clients, as well as strategic business partnerships this growth will continue.

The Nordex Directors and Management are continuing to advance this strategy by increasing manufacturing and delivery capabilities, offering specialized customer service and sourcing its proprietary lines of explosive products. Nordex has also developed a strategy for expanding its business beyond its the Kirkland Lake region. Nordex is actively pursuing opportunities with potential clients in both Quebec and Southern Ontario, and is investigating satellite operations sites to enable the Corporation to expand to a larger geographic area.

ABOUT NORDEX EXPLOSIVES: LES EXPLOSIFS NORDEX LTEE./NORDEX EXPLOSIVES LTD. is a manufacturer and distributor of explosives for the mining, quarry and road construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world's largest mining regions near Kirkland Lake, Ontario. Nordex trades on the TSX Venture Exchange under the symbol "NXX".

Forward‐Looking Statements

Certain information included herein may contain "forward‐looking statements" which reflect the current expectations of management of the Corporation regarding the Corporation's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such "as "may", "would'', "could", "should", "will", "anticipate", "believe", "plan", "expect," "intend", "estimate", "aim", "endeavor", "seek", "predict", "potential" and similar expressions have been used to identify these forward‐looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Corporation. Forward‐looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Corporation's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; compliance with environmental regulations; exchange rate fluctuations as well as the other risks identified in the ''Risk Factors'' contained in the Corporation's Management Discussion and Analysis and other public filings (copies of which may be obtained at Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and the reader should not place undue reliance on the forward‐looking statements. Although any forward‐looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Corporation cannot assure readers that actual results, performance or achievements will be consistent with these forward‐looking statements, and management's assumptions may prove to be incorrect. These forward‐looking statements are made as of the date of this press release, and, other than as required by law, the Corporation does not intend, and does not assume any obligation, to update or revise these forward‐looking statements, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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