Revett Minerals Inc.
TSX : RVM

Revett Minerals Inc.

August 15, 2005 10:42 ET

Revett Minerals Reports on Second Quarter Results for 2005

SPOKANE, Wash.--(CCNMatthews - Aug 15, 2005) -

Revett Minerals Inc., Spokane, Washington (TSX:RVM) is pleased to report to shareholders the operating and financial results for the three month and six month periods ending June 30, 2005. All currency in this release is in dollars of the United States unless otherwise indicated.

Consolidated Results

For the three months ended June 30, 2005 the Company reported a loss of $848,894 after non controlling interests; or $ 0.01 per share bringing the total loss for the year to date to $1,137,446 or $0.03 per share. For the six month period ending June 30, 2005 the Company reported revenue from the sale of copper concentrates of $9.74 million with production costs of $9.43 million; implying a profit from mining operations of $0.3 million. In accordance with Canadian generally accepted accounting principles, the Company may only record revenue from concentrate shipments when it has reasonable assurance that the weights and assays on such shipments accurately reflect the amount of metal being sold. Consequently, the Company did not record revenue from the concentrate shipments made in the first quarter of 2005 until the start of the second quarter of 2005. For future periods, the Company will record revenue from concentrate shipments in the month such shipments occur. General and administrative costs totaled $1.1 million, net interest expense was $0.33 million, and the reclamation and closure accrual totaled $0.23 million. Depreciation and the amortization of the excess purchase price on the acquisition of Revett Silver Company was $0.1 million.

During the second quarter, the mine shipped and received payment for 2,681,765 payable pounds of copper and 305,793 payable ounces of silver. Metal sales for the first six months of 2005 are 4.55 million pounds of payable copper and 522,878 ounces of payable silver. During the six month period ending June 30, 2005, the Company generated approximately $994,200 from operating activities and for the three month period ending June 30, 2005, the company used approximately $479,700 in operating activities.

The following is a summary of the financial, production, sales and shipment results from the Troy Mine for the three month and six month periods ended June 30, 2005. There was no production in the corresponding period of 2004.



Second Quarter Year to Date
2005
----------------------------------------------------------------------
Tons milled 188,717 389,714
----------------------------------------------------------------------
Copper grade (pct) 0.79 0.79
----------------------------------------------------------------------
Silver grade (opt) 1.86 1.85
----------------------------------------------------------------------
Copper recovery (pct) 81.6 79.9
----------------------------------------------------------------------
Silver recovery (pct) 86.0 83.6
----------------------------------------------------------------------
Concentrate produced (tons) 3,161.5 6,391.4
----------------------------------------------------------------------
Concentrate shipped (tons) 3,252.0 5,652.9
----------------------------------------------------------------------
Payable copper sold (pounds) 4,551,376 4,551,376
----------------------------------------------------------------------
Payable silver sold (ounces) 522,878 522,878
----------------------------------------------------------------------
Revenue recognized $9,741,160 $9,741,160
----------------------------------------------------------------------
Net income (loss) after non controlling
interest $(848,894) $(1,137,446)
----------------------------------------------------------------------
Loss per share $(0.01) $(0.03)
----------------------------------------------------------------------
Net working capital $16,197,524 -
----------------------------------------------------------------------



The second quarter of 2005 was the second full quarter of production from the Troy Mine. During the quarter the mill processed a total of 188,717 tons of ore (or an average of 2,051 tpd). This compares with a total of 200,997 tons milled during the first quarter (an average throughput of 2,233 tpd). Metal production in the second quarter was 2.45 million pounds of copper and 301,759 ounces of silver. Cumulative metal production for the first half of 2005 was 4.9 million pounds of copper and 604,348 ounces of silver. The mine continues to ramp up its rate of production each month and we anticipate that production of 6,500 tpd may be reached in the latter part of the third quarter or early in the fourth quarter. In the second quarter, ore grades were well above planned levels. The copper grade in the second quarter was 0.79% (budget was 0.55%) and silver grades were 1.86 oz/t (budget was 1.39 oz/t). Mill recoveries were slightly below expectation because of higher non-sulphide ore. During the second quarter, copper recoveries were 81.6% versus planned recoveries of 86% and silver recoveries were 86% compared to budget recoveries of 87%. There can be no assurance that ore grades will remain above planned levels. Additionally, recoveries should stabilize over the coming months at the levels originally anticipated. Net revenue per ton averaged over $22.98 per ton compared to budgeted revenue of $17.85 per ton for the first half of the year. For the same period costs of goods sold averaged $20.89 per ton.

Mr. William Orchow, President and CEO of Revett Minerals stated, "We are pleased with the successful resumption of mining activities at the Troy Mine and are expending every possible effort to increase production up to or above our planned levels. With the receipt of the new mining equipment in late March, we anticipate that our planned production rate of 6,500 tons per day may be achieved by the end of the third quarter. Assuming that planned mill throughput is reached by the end of the third quarter, we estimate that a total of approximately 2 million ounces of silver and 17 million pounds of copper could be produced in 2005."

Rock Creek

At Rock Creek, the Company continues its efforts to advance the project in light of the unfavorable judgment on the Biological Opinion made by a judge in the U.S. District Court of Montana. Since that court's ruling to remand the Biological Opinion back to the United States Fish and Wildlife Service ("FWS"), the Company has been advised that the FWS should complete its update on the Biological Opinion near the end of the third quarter. The work initiated since March 2005 on the Rock Creek project includes the commissioning of numerous engineering project scoping studies, some base line water quality and hydrology studies, the application to the Montana Department of Environmental Quality of the application to commence with the Rock Creek evaluation adit and entering into option agreements to acquire the required mitigation lands.

About Revett

Revett Minerals, through its subsidiaries, owns both the Rock Creek Project and the Troy Mine located in northwest Montana. If planned production is attained by the end of the third quarter, the Troy Mine is expected to produce approximately 2 million ounces of silver and 17 million pounds of copper in 2005. Based on the drilling to date, Rock Creek contains an estimated inferred resource of 136.6 million tons grading 1.67 ounces silver per ton and 0.72% copper, containing approximately 229 million ounces of silver and over 2 billion pounds of copper using a cut off grade of US $10.00 per ton. Further information on both the Troy Mine and the Rock Creek Project may be found in the National Instrument 43-101 reports at www.sedar.com. These reports were prepared on behalf of the Company by Jean-Francois Couture, P.Geo. and Ken Reipas P.Eng. of SRK Consulting (Canada) and they are qualified persons under National Instrument 43-101. All of these issues are discussed in greater detail in the Company's official filings at www.sedar.com.

William Orchow

President & CEO

Except for the statements of historical fact contained herein, the information presented in this press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of silver and copper, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks relating to environmental laws and regulations, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of silver and copper, as well as those factors discussed in the section entitled "Risk Factors" in the Final Long-Form Prospectus filed on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such 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.



Revett Minerals Inc.
Consolidated Balance Sheets at June 30, 2005
(expressed in thousands of United States dollars)
(unaudited)
June 30, December 31,
2005 2004
(unaudited)
Assets
Current Assets
Cash and cash equivalents $ 9,749.1 $ -
Short term investments 7,359.0 -
Receivables 1,198.7 -
Inventories 1,328.7 -
Prepaid expenses and deposits 782.4 $ 510.3
---------- -----------
Total current assets 20,417.9 510.3

Property, plant, equipment & mine
development (net) 55,312.8 -
Restricted cash 6,604.1 -
Other long term assets 1,764.1 -
---------- -----------
Total assets $ 84,098.9 $ 510.3
========== ===========

Liabilities and stockholders equity (deficiency)

Current liabilities
Accounts payable and accrued
liabilities $ 1,372.0 $ 532.0
Current portion of lease and note
obligations 2,848.5 -
---------- -----------
Total current liabilities 4,220.5 532.0

Long-term portion of debt 13,052.4 -
Reclamation and remediation 8,600.8 -
Future income tax 8,816.0 -
---------- -----------
Total liabilities 34,689.7 532.0
---------- -----------
Non controlling interest 8,941.0 -

Stockholders' equity (deficiency)

Preferred stock, no par value, unlimited
authorized, nil issued and outstanding
Common stock, no par value unlimited
authorized, 57,227,476 shares issued and
outstanding 41,419.1 -
Contributed surplus 208.3 -
Deficit (1,159.2) (21.7)
---------- -----------
40,468.2 (21.7)
---------- -----------

Total liabilities and stockholders
equity $ 84,098.9 $ 510.3
========== ===========




Revett Minerals Inc.
Consolidated Statement of Operations
Three months and six months ended June 30, 2005
(expressed in thousands of United States dollars)
(unaudited)
Three month period Six month period
ended June 30, ended June 30,
2005 2005
------------------ ----------------
Revenues $ 9,741.2 $ 9,741.2

Costs:
Cost of sales 9,081.0 9,081.0
Depreciation and
amortization 387.9 477.8
General & administrative 938.0 1,068.8
Accretion of reclamation and
remediation liability 175.3 233.8
Other 12.9 8.1
--------------- ---------------
10,595.1 10,869.5
--------------- ---------------
(853.9) (1,128.3)
Other (income) expense:
Interest expense 360.1 541.4
Interest income (172.6) (212.9)

Net income (loss) before non --------------- ---------------
controlling interest and taxes (1,041.4) (1,456.8)
--------------- ---------------

Income taxes (43.3) (43.3)

Net income after taxes before non
controlling interest (998.1) (1,413.5)
--------------- ---------------

Non controlling interest (149.2) (276.1)

Net income (loss) for the
period (848.9) (1,137.4)
--------------- ---------------

Basic and diluted loss per
share $ (0.01) $ (0.03)
=============== ===============

Weighed average number of shares
outstanding 57,222,477 38,565,156
=============== ===============




Revett Minerals Inc.
Consolidated Statement of Cash Flow
Three months and six months ended June 30, 2005
(expressed in thousands of United States dollars)
(unaudited)
Three month Six month
period period
ended June 30, ended June 30,
2005 2005
-------------- ---------------
Cash flows from operating activities:
Net loss for the period $ (848.9) $ (1,137.4)
Adjustment to reconcile loss to net
cash used by operating activities
Depreciation and amortization 387.9 477.8
Accretion of reclamation and
remediation liability 175.3 233.8
Stock based compensation 198.0 208.3
Director's fee paid in common stock 7.5 7.5
Income tax (43.2) (43.2)
Non controlling interest (149.4) (276.1)
Changes in:
Accounts receivable (121.2) 431.6
Inventory 1,787.4 143.8
Prepaid expenses and deposits 115.7 (492.7)
Accounts payable (82.1) 1,252.8
Accrued interest 154.2 188.0
Deferred revenue (2,061.0) -
----------- ---------
Net cash used by operating activities (479.7) 994.2
----------- ---------

Cash flows from investing activities:
Business acquisitions, net - 1,123.3
Other long term assets (323.7) (1,683.7)
Current portion of long term debt 837.2 861.3
Purchase of plant and equipment (3,007.0) (3,592.1)
----------- ---------
Net cash provided by investing
activities (2,493.5) (3,291.3)
----------- ---------

Cash flows from financing activities:
Proceeds from the issuance of common
stock, net - 24,972.1
Restricted cash (185.6) (6,604.1)
Purchase of short term investments (7,359.0) (7,359.0)
Proceeds from long term borrowings,
net 862.3 1,048.8
----------- ---------
Net cash from financing activities (6,682.3) 12,057.7
----------- ---------

Effects of exchange rate changes on cash (11.5) (11.5)


Net increase in cash and cash ----------- ---------
equivalents (9,667.0) 9,749.1
----------- ---------
Cash and cash equivalents, beginning of
period 19,416.1 -
----------- ---------
Cash and cash equivalents, end of
period $ 9,749.1 $ 9,749.1
=========== =========

Supplementary cash flow information:
Common stock issued in business
acquisition $ 0.0 $ 16,439.5
Cash paid for interest expense $ 168.6 $ 170.3
Common stock issued to a director for
service $ 7.5 $ 7.5





Revett Minerals Inc.
Consolidated Statement of Deficit
Three months and six months ended June 30, 2005
(expressed in thousands of United States dollars)
(unaudited)
Three month period Six month period
ended June 30, ended June 30,
2005 2005
------------------ -------------------
Deficit, beginning of period $ 310.3 $ 21.8
Loss for the period 848.9 1,137.4
------------------ -------------------

Deficit, end of period $ 1,159.2 $ 1,159.2
================== ===================


See accompanying notes to interim consolidated financial statements.
The Company was incorporated in August 2004, therefore no comparative
financial statements exist



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