North Atlantic Resources Ltd.
TSX : NAC

North Atlantic Resources Ltd.

August 06, 2009 16:31 ET

North Atlantic Issues Financial Statements and MDA for the Second Quarter of 2009

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2009) - North Atlantic Resources Ltd. ("North Atlantic" or the "Company") (TSX:NAC) has filed its Interim Financial Statements and Management's Discussion and Analysis, for the three-month period ended June 30, 2009 on SEDAR at www.sedar.com. The documents are also available on the Company's website at www.nac-tsx.com.

For the three months ended June 30, 2009, the Company recorded a loss from operations of $5,943,000 or $0.23 per share, compared to a loss of $639,000 or $0.03 per share for the same period of 2008. Included in the current period loss was the write down of mineral properties and deferred exploration costs in the amount of $5,823,000 compared to $393,000 in the same period of 2008. This significant write down of assets was taken in light of the current financial market conditions, the Company's market capitalization, its minimal cash position and its exploration plans for the future. The Company has significantly reduced its operating costs in 2009, by cutting all compensation and discretionary expenditures.

Cash and cash equivalents at June 30, 2009, totalled $53,000, compared to $561,000 at December 31, 2008. The net working capital position at June 30, 2009 was $19,000. As the Company's cash resources are now at minimal levels, the Company's activities are on a care and maintenance basis and a significant amount of costs have been reduced.

At present, the Company is actively seeking additional private placement equity financing to maintain its exploration operations and administrative costs. In addition, it is also seeking to joint venture, sell or option certain of its exploration properties. No assurances can be given that any of these financing activities will be successful.

The Company has continued to advance its gold projects in the Republic of Mali ("Mali"), with termite mound and soil geochemical surveys being completed over portions of all the Company's permits. During the period, Auger drilling was completed on the Company's FT Gold project. The Auger drilling was designed to locate and delineate possible strike extensions of the existing resource for future drilling. The Auger drilling was also used to test for possible parallel zones of mineralization to the FT resource.

In June 2009, the Company established a Technical Committee (the "Committee") to provide strategic planning and technical oversight for the Company's exploration plans. As a result of the Committee's actions, Dr. Michael Baker of the United Kingdom was engaged to examine the FTM District from the district scale for structural and regolith interpretation. The FTM District (Foulalaba-Tiekoumala-M'Panyala Permits) is centred on the FT gold occurrence discovered by North Atlantic in 2006. The drill indicated resource at FT, although significant, requires additional work to define its economic potential. The property which hosts the FT gold occurrence also has many unresolved and highly anomalous gold occurrences which have been considered by Company personnel to have significant discovery potential. Dr. Baker's conclusions formed the basis for a technical review that confirmed for the Company that the FTM area exhibits the geological diversity and structural complexity generally considered to be necessary for the development of significant gold deposits. Fifteen areas of interest for additional exploration have been identified within the FTM permit areas.

North Atlantic continues to plan for the future exploration and assessment of the potential for the development of an economic gold resource at FT.

Scott Waldie, President of North Atlantic, said "The past twelve months of the global recession and credit crisis have made the economic circumstances for junior explorers, including North Atlantic Resources Ltd., very difficult. Despite improved commodity prices over the past six months capital for high risk mineral exploration is difficult to obtain. It is uncertain how long the capital markets for junior explorers will remain weak. The recent stock market rally will help to encourage the deployment of risk capital on reasonable terms if commodities can maintain their present levels. During this period of challenge your Company continues to encourage others to participate in the exploration of our properties through earn-in joint venture arrangements or other advantageous option arrangements. We consider that our gold and uranium properties posses considerable economic and exploration potential. We remain committed and determined to advance the exploration of our properties in West Africa."

"North Atlantic Resources Ltd. continues to pursue a policy of attempting to monetize our oil and gas permit in the Republic of Mali and our uranium exploration permits in the Republic of Niger. Management of North Atlantic take recognizes the inherent long term value that these permits represent. Management is confident that other potential investors will share our view."

North Atlantic has 25,723,741 common shares issued and outstanding (29,288,741 shares on a fully diluted basis).

Please visit the Company's website www.nac-tsx.com to view project details and planned exploration programs going forth.

This press release has been prepared by North Atlantic Resources Ltd. and no regulatory authority has approved or disapproved the information contained herein.

This message is being sent to you from North Atlantic Resources Ltd. via Marketwire to avoid spam and protect your privacy. To delete your name from our private distribution list, please send an e-mail to info@nac-tsx.com or UNSUBSCRIBE.

Statements relating to the estimated or expected future production and operating results and costs and financial condition of North Atlantic Resources Ltd., planned work at the Company's projects and the expected results of such work are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur. Information concerning exploration results and mineral reserve and resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable at the time they are made, are inherently subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfill projections/expectations and realize the perceived potential of the Company's projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold reserves and resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company's projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of gold and other risks and uncertainties, including those described in the Company's Annual Information Form filed with SEDAR in Canada (available at www.sedar.com) for the year ended December 31, 2008.

Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management or its independent professional consultants on the date the statements are made.

Contact Information