Revett Minerals Inc.
TSX : RVM

Revett Minerals Inc.

November 10, 2005 08:00 ET

Revett Minerals Reports on Third Quarter Results for 2005

SPOKANE VALLEY, Wash.--(CCNMatthews - Nov 10, 2005) -

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

Consolidated Results

For the three months ended September 30, 2005, the Company reported a loss of $1.16 million after non controlling interests; or $0.02 per share bringing the total loss for the year to date to $2.3 million or $0.05 per share. For the nine-month period ending September, 2005, the Company reported revenue from the sale of copper concentrates of $14.6 million with production costs of $14.5 million, including depreciation expense of $0.8 million; implying a profit from mining operations of $0.1 million. General and administrative costs totaled $1.6 million, net interest expense was $0.45 million, exploration and development spending at Troy and Rock Creek totaled $0.8 million and the reclamation and closure accrual totaled $0.4 million.

During the third quarter, the mine shipped and received payment for 1,585,592 payable pounds of copper and 191,658 payable ounces of silver. Metal sales for the first nine months of 2005 are 6.1 million pounds of payable copper and 711,525 ounces of payable silver. During the nine-month period ending September 30, 2005, the Company used approximately $1.2 million for operating activities and for the three-month period ending September 30, 2005, the Company used approximately $2.2 million for operating activities.

The following is a summary of the financial, production, sales and shipment results from the Troy Mine for the three-month and nine-month periods ended September 30, 2005.



Third Quarter 2005 Year-to-Date
----------------------------------------------------------------------
Tons milled 170,370 560,084
----------------------------------------------------------------------
Copper grade (pct) 0.70 0.76
----------------------------------------------------------------------
Silver grade (opt) 1.66 1.79
----------------------------------------------------------------------
Copper recovery (pct) 84.7 81.4
----------------------------------------------------------------------
Silver recovery (pct) 87.3 84.7
----------------------------------------------------------------------
Copper produced (ounces) 2,028,321 6,202,636
----------------------------------------------------------------------
Silver produced (ounces) 243,106 757,089
----------------------------------------------------------------------
Payable copper sold (pounds) 1,585,592 6,093,522
----------------------------------------------------------------------
Payable silver sold (pounds) 191,658 711,525
----------------------------------------------------------------------
Revenue recognized $ 4,092,175 $ 14,643,335
----------------------------------------------------------------------
Net income (loss) after
non controlling interest $ (1,155,023) $ (2,292,468)
----------------------------------------------------------------------
Loss per share $ (0.02) $ (0.05)
----------------------------------------------------------------------
Working capital $ 13,872,483 --
----------------------------------------------------------------------



The third quarter of 2005 was the third full quarter of production from the Troy Mine. During the quarter the mill processed a total of 170,370 tons of ore (or an average of 1893 tpd). This compares with a total of 188,717 tons milled during the second quarter (an average throughput of 2,096 tpd). Metal production in the third quarter was 2.03 million pounds of copper and 243,106 ounces of silver. Cumulative metal production for the first nine months of 2005 was 6.2 million pounds of copper and 757,089 ounces of silver. The mine continues to ramp up its rate of production each month and we anticipate that production between 5,500 and 6,500 tpd may be reached by the end of the year. In the third quarter, ore grades were well above planned levels. The copper grade in the third quarter was 0.70% (budget was 0.55%) and silver grades were 1.66 oz/t (budget was 1.39 oz/t). Mill recoveries were only marginally below expectation for copper. During the third quarter, copper recoveries were 84.7% versus planned recoveries of 86% and silver recoveries were 87.1% higher than budget recoveries of 87%. There can be no assurance that ore grades will remain above planned levels.

The Company has completed the initial phase of the 2005 diamond drill program. This phase included three surface holes totaling 4,505 feet and two underground holes totaling 447 feet. No results are available for the underground holes as of the date of this release. Partial results from the three surface holes together with assays from the underground mine development program indicate an increase in the resource for the East Ore body middle quartzite. The mineralized zone has been extended 250 feet to the east by mine development and continuity has been confirmed between the northern and southern blocks of the East Ore body middle quartzite by surface drilling.

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 and with the recent purchase of an additional bench drill, we anticipate that we will experience a material increase in mill throughput during the fourth quarter."

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 has nearly completed its review of the Biological Opinion. The Company anticipates that the FWS will reissue its favorable Biological Opinion before year end.

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, and an application to the Montana Department of Environmental Quality to commence with the Rock Creek evaluation adit. Revett completed the acquisition of the mitigation lands required during the evaluation stage of the Rock Creek project. The acquisition of these lands will assist the USFWS in strengthening its Biological Opinion. In addition to the above, the Company has initiated an extensive public relations campaign to educate the local stakeholders and state regulators about the significant benefits which would accrue to Montana and Idaho with the development of the Rock Creek project.

About Revett

Revett Minerals, through its subsidiaries, owns both the Rock Creek Project and the Troy Mine located in northwest Montana. 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 September 30, 2005
(expressed in thousands of United States dollars)
(unaudited)
September 30, December 31,
2005 2004
(unaudited)
Assets
Current Assets
Cash and cash equivalents $ 5,849.9 $ --
Short term investments 8,371.7 --
Receivables 997.7 --
Inventories 1,766.3 --
Prepaid expenses and deposits 1,933.1 $ 510.3
----------- ----------
Total current assets 18,918.7 510.3

Property, plant, equipment & mine development
(net) 55,499.3 --
Restricted cash 6,658.6 --
Other long-term assets 1,729.5 --
----------- ----------

Total assets $ 82,806.0 $ 510.3
=========== ==========

Liabilities and stockholders equity (deficiency)
Current liabilities
Accounts payable and accrued liabilities $ 1,683.7 $ 532.0
Current portion of lease and note obligations 3,362.5 --
----------- ----------
Total current
liabilities 5,046.2 532.0

Long-term portion of debt 12,374.6 --
Reclamation and remediation 8,776.1 --
Future income tax 8,788.2 --
----------- ----------
Total liabilities 34,985.2 532.0
----------- ----------

Non controlling interest 7,707.3 --

Stockholders' equity (deficiency)
Preferred stock, no par value, unlimited
authorized, nil issued and outstanding
Common stock, no par value unlimited
authorized, 59,005,395 shares issued and
outstanding 42,201.4 --
Contributed surplus 226.3 --
Deficit (2,314.2) (21.7)
----------- ----------
40,113.5 (21.7)
----------- ----------

Total liabilities and stockholders' equity $ 82,806.0 $ 510.3
=========== ==========

See accompanying notes to interim consolidated financial statements.

The Company was incorporated in August 2004, therefore no comparative
financial statements exist.


Revett Minerals Inc.
Consolidated Statement of Operations
Three months and nine months ended September 30, 2005
(expressed in thousands of United States dollars)
(unaudited)
Three-month Nine-month
period ended period ended
September 30, September 30,
2005 2005
------------ ------------

Revenues $ 4.902.2 $ 14,643.3

Costs:
Cost of sales 4,620.1 13,701.1
Depreciation and amortization 349.9 827.8
Exploration and Development 801.9 801.9
General & administrative 501.7 1,570.4
Accretion of reclamation and remediation
liability 175.3 409.1
Other expense (income) (35.2) (27.1)
------------ ------------
6,413.7 17,283.2
------------ ------------
(1,511.6) (2,639.8)
Other (income) expense:
Interest expense 315.0 856.3
Interest income (192.2) (405.1)

----------- -----------
Net income (loss) before non controlling
interest and taxes (1,634.4) (3,091.1)
------------ ------------

Income taxes (27.8) (71.0)

Net income after taxes before
non controlling interest (1,606.5) (3,020.1)
------------ ------------

Non controlling interest (451.5) (727.6)

Net income (loss) for the period (1,155.0) (2,292.5)
------------ ------------

Basic and diluted loss per share $ (0.02) $ (0.05)
============ ============

Weighted average number of shares
outstanding 59,005,395 45,407,854
============ ============

See accompanying notes to interim consolidated financial statements.

The Company was incorporated in August 2004, therefore no comparative
financial statements exist.


Revett Minerals Inc.
Consolidated Statement of Cash Flow
Three months and nine months ended September 30, 2005
(expressed in thousands of United States dollars)
(unaudited)
Three-month Nine-month
period ended period ended
September 30, September 30,
2005 2005
------------- -------------

Cash flows from operating activities:
Net loss for the period $ (1,155.0) $ (2,292.5)
Adjustment to reconcile loss to net cash
used by operating activities
Depreciation and amortization 349.9 827.8
Accretion of reclamation and remediation
liability 175.3 409.1
Stock-based compensation 18.0 226.3
Director's fee paid in common stock -- 7.5
Income tax (27.8) (71.0)
Non controlling interest (451.5) (727.6)
Changes in:
Accounts receivable 201.0 632.7
Inventory (437.5) (293.8)
Prepaid expenses and deposits (1,150.8) (1,643.6)
Accounts payable 311.8 1,752.7
------------- -------------
Net cash used by operating activities (2,166.6) (1,172.4)
------------- -------------

Cash flows from investing activities:
Business acquisitions, net -- 1,123.3
Decrease (increase) in long-term assets 34.6 (1,649.1)
Purchase of plant and equipment (535.9) (4,128.0)
------------- -------------
Net cash provided (used) by investing
activities (501.2) (4,653.8)
------------- -------------

Cash flows from financing activities:
Proceeds from the issuance of common
stock, net -- 24,972.1
Restricted cash (1,012.7) (8,371.7)
Purchase of short-term investments (54.4) (6,658.6)
Proceeds from long-term borrowings, net (176.6) 1,733.4
------------- -------------
Net cash from (used) financing activities (1,243.7) 11,675.2
------------- -------------

Effects of exchange rate changes on cash 12.3 0.9

------------- -------------
Net increase in cash and cash equivalents (3,899.2) 5,849.9
Cash and cash equivalents, beginning of
period 9,749.1 --
------------- -------------
Cash and cash equivalents, end of period $ 5,849.9 $ 5,849.9
============= =============

Supplementary cash flow information:
Common stock issued in business
acquisition $ 0.0 $ 16,439.5
Cash paid for interest expense $ 473.1 $ 643.4
Common stock issued to a director for
service $ 0.0 $ 7.5

See accompanying notes to interim consolidated financial statements.

The Company was incorporated in August 2004, therefore no comparative
financial statements exist.


Revett Minerals Inc.
Consolidated Statement of Deficit
Three months and nine months ended September 30, 2005
(expressed in thousands of United States dollars)
(unaudited)
Three-month Nine-month
period ended period ended
September 30, September 30,
2005 2005
--------------- ---------------

Deficit, beginning of period $ 1,159.2 $ 21.7
Loss for the period 1,155.0 2,292.5
--------------- ---------------

Deficit, end of period $ 2,314.2 $ 2,314.2
=============== ===============


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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