Royal Oak Announces Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2012) - Royal Oak Ventures Inc. (CNSX:ROV)(CNSX:ROV.B) ("Royal Oak" or the "company") reported net income of $0.1 million or $nil per common share for the quarter ended June 30, 2012 compared to a net loss of $0.1 million or $nil per common share in the corresponding period in 2011. The increase in net income in comparison to the prior year is primarily the result of a higher amount of investment income generated on the company's investment portfolio and a reduction of operating costs.

The company recorded a comprehensive loss of $0.3 million for the quarter ended June 30, 2012 compared with a loss of $0.7 million in the comparative quarter in 2011. Comprehensive loss in the current quarter consisted of net income of $0.1 million (2011 - net loss of $0.1 million) and other comprehensive loss of $0.4 million (2011 - $0.6 million).

The company recorded pre-tax unrealized losses of $0.5 million in other comprehensive loss in the current quarter (2011 - $0.7 million), as a result of a decrease in the fair value of the company's marketable securities portfolio.

In July of 2012, the company completed the listing of its common voting and non-voting shares on the CNSX under the symbols "ROV" and "ROV.B" respectively.

STATEMENTS OF OPERATIONS

		Three months ended June 30								Six months ended June 30
(Thousands, except per share amounts)		2012				2011				2012			2011
Revenue
	Interest and dividend income	$	241			$	225			$	462		$	445
Expenses
	General, administrative and other		97				261				156			380
			144				(36	)			306			65
Foreign currency revaluation			27				11				68			9
Income (loss) before income taxes			171				(25	)			374			74
Deferred income tax (expense) recovery			(61	)			(65	)			25			9
Net income (loss)		$	110			$	(90	)		$	399		$	83
Net income per share		$	−			$	−			$	−		$	−

CHANGES IN NET BOOK VALUE

The net book value per common share as at June 30, 2012 was $0.20. The information in the following table shows the changes in net book value for the three and six months ended June 30, 2012 and 2011.

	Three months ended June 30								Six months ended June 30
	2012				2011				2012		2011
(Unaudited) (Thousands, except per share amounts)	Total		Per Share(1)		Total		Per Share		Total	Per Share(1)	Total	Per Share
Net book value, beginning of period (2)	$ 33,821		$ 0.21		$ 35,092		$ 0.21		$ 32,927	$ 0.20	$ 34,212	$ 0.21
Net income (loss)	110		−		(90	)	−		399	−	83	−
Other comprehensive (loss) income	(431	)	(0.01	)	(592	)	−		174	−	115	−
Comprehensive (loss) income	(321	)	(0.01	)	(682	)	−		573	−	198	−
Net book value, end of period(2)	$ 33,500		$ 0.20		$ 34,410		$ 0.21		$ 33,500	$ 0.20	$ 34,410	$ 0.21

(1)	As at June 30, 2012 and December 31, 2011 the company was capitalized with 3,157,189 common voting shares and 159,339,267 non-voting shares, which are referred to collectively as "common shares"
(2)	Net book value is a non-IFRS measure

STATEMENTS OF FINANCIAL POSITION

The information in the following table has been extracted from the company's statements of financial position as at June 30, 2012 and December 31, 2011.

(Thousands, except per share amounts)		June 30, 2012			December 31, 2011
Assets
Current assets
	Cash and cash equivalents	$	8,532		$	7,742
	Marketable securities		21,409			21,162
	Accounts receivable		128			134
	Loans receivable		3,988			4,007
		$	34,057		$	33,045
Liabilities and equity
Current liabilities
	Accounts payable and accrued liabilities	$	557		$	118
Equity			33,500			32,927
		$	34,057		$	33,045
Net book value per share (1,2)		$	0.20		$	0.20

(1)	As at June 30, 2012 and December 31, 2011 there were 162,496,456 common shares issued and outstanding
(2)	Net book value is a non-IFRS measure