North Atlantic Resources Ltd.
TSX : NAC

North Atlantic Resources Ltd.

March 31, 2009 12:52 ET

North Atlantic Resources Files Year End Audited Financial Statements and MD&A

TORONTO, ONTARIO--(Marketwire - March 31, 2009) - North Atlantic Resources Ltd. ("the Company") (TSX:NAC) announced today that it has filed its Audited Consolidated Financial Statements and its Management's Discussion and Analysis for the year ended December 31, 2008 on SEDAR at www.SEDAR.com. These documents may also be viewed on the Company's website at www.nac-tsx.com.

During the year ended December 31, 2008, North Atlantic incurred a net loss of $2,495,000 ($0.10 per share) compared to a net loss of $1,697,000 ($0.08 per share) for the year ended December 31, 2007. The increased loss realized in 2008 was due to write downs of mineral properties and deferred exploration expenditures of $1,651,000 compared to write downs of $89,000 at December 31, 2007. During the twelve-month period ended December 31, 2008, North Atlantic incurred mineral properties and deferred exploration costs of $1,269,000. These expenses were incurred primarily on the Company's Mali Gold Projects, including the FT, Kourouba and Massala Projects. During 2009, the Company is planning reverse circulation (RC) drilling on the FT, Kourouba, and Kantela properties.

Cash and short-term investments at December 31, 2008 totalled $561,000 compared to $1,488,000 at December 31, 2007. In 2008, operating activities used $634,000 in cash and mineral properties and exploration used $1,343,000 in cash. The Company is reviewing various funding options to meet its anticipated future exploration and corporate expenditure requirements.

North Atlantic Resources holds five gold projects comprising 911 square kilometers (225,113 acres) of mineral rights in the Republic of Mali, ("Mali") West Africa. Since 2002, the Company has made gold discoveries at the Kantela project (2004), FT project (2005), and Kourouba project (2007).

The FT project is the Company's most advanced gold discovery with initial resource calculation of 241,000 indicated ounces at a grade of 0.95 grams per tonne and 353,000 inferred ounces at a grade of 1.05 grams gold per tonne. Currently, auger drilling is underway at the FT project in order to test gold in soil geochemical anomalies both on strike and parallel to the FT resource and also, to cover areas of anomalous gold in soil geochemical anomalies on this large property. The FT project is in the same rich geologic gold environment as the Morila and Syama gold mines in southern Mali

As part of the Company's energy exploration initiative the Company holds three uranium exploration permits in the prolific Tim Mersoi Basin, Republic of Niger, West Africa. One of these permits, the 2,000 Km2 Abelajouad Permit, is just five km west of and contiguous to Areva's Imouraren deposit. Areva describes the Imouraren deposit as the largest known uranium deposit in Africa, and the world's second largest, after Australia's Olympic Dam deposit. Areva has announced that it plans to spend US$ 1.2 billion to develop the Imouraren uranium deposit. All of the Company's properties in Niger cover the Arlit Fault, the dominant control structure for uranium deposition in the Tim Mersoi Basin.

As the second leg of the Company's energy exploration initiative the Company also holds the 19,259 square km. Block 18 (Macina project) oil and gas exploration permit in Macina graben, eastern Mali. The northeast-trending Macina graben is approximately 250 kilometres long and 100 kilometres wide (25,000 square kilometres, or 6.25 million acres) in the southern part of the vast Taoudeni basin of Mali, Algeria, and Mauritania, which covers an area of over 1.8 million square kilometres (450 million acres). Several countries in the region, including Niger, Chad, Libya and Sudan, have onshore oil reserves within intracratonic basins similar to those in Mali as described in the following table:



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Country Size (MM bbl)
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Sudan 6,400
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Chad 900
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Niger 350
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Libya, Murzuk basin 500
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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.

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

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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

  • North Atlantic Resources Ltd.
    Scott Waldie
    President and CEO
    (416) 703-6348
    Email: swaldie@nac-tsx.com
    or
    North Atlantic Resources Ltd.
    Lisa Hampton
    Shareholder Communications
    (416) 703-6348
    (416) 703-6507 (FAX)
    Email: info@nac-tsx.com
    Website: www.nac-tsx.com