Titanium Corporation Inc.

Titanium Corporation Inc.

November 18, 2010 10:02 ET

Titanium Corporation Reports Fourth Quarter and Fiscal Year End August 31, 2010 Results

EDMONTON, ALBERTA--(Marketwire - Nov. 18, 2010) - Titanium Corporation Inc. (the "Company") (TSX VENTURE:TIC) today released financial results for the fourth quarter and fiscal year ended August 31, 2010. The Company has completed the development phase and is now at an advanced stage of demonstration piloting of new clean technologies. These technologies are designed to recover valuable products from oil sands tailings and reduce negative environmental impacts.

The Company's activities during the quarter were focused on commissioning and operating a demonstration pilot at the Canadian Government's CanmetENERGY ("Canmet") oil sands test facilities in Alberta.


  • The pilot has been operational since July 2010. Operations commenced with the start up of the bitumen recovery and solvent recovery units. Process modules for bitumen removal, minerals recovery and water treatment were brought on-line during August and September.
  • In August 2010, the Company received a second payment of $2.0 million from SDTC that was granted for reaching SDTC's milestone for successful completion of engineering, construction, installation and commissioning of the pilot process modules.
  • Results, based on the first 3 months of pilot operations: bitumen recovery performance indicates on-specification recovery in the high end of the targeted 50-75% recovery range; bitumen removal processes successfully cleaned coarse sands containing valuable heavy minerals to target specifications; and solvent recovery performance exceeded expectations, with average recoveries in excess of 95%.

Scott Nelson, the Company's President and Chief Executive Officer said, "Results from the first 3 months of the pilot are meeting or exceeding performance targets in key areas. We have successfully completed piloting of the first two oil sands operator tailings and will be processing a third operator's tailings during December and January. The Company's goal is to enter into arrangements for the commercialization of its technology during the next year."


Net loss for the fourth quarter of fiscal 2010 was $3.0 million compared to $16.6 million for the comparable 2009 fiscal period. Net loss for the fiscal year ended August 31, 2010 was $7.0 million compared to $20.4 million for the same period in fiscal 2009. The difference for the quarter and the fiscal year ended August 31, 2010 relates primarily to the 2009 write off of the mineral development costs and pilot plant assets of $15.6 million.

Research & Development – R&D expenditures before grant recoveries for the quarter ended August 31, 2010 were $3.8 million ($0.8 million 2009), and $9.5 million ($5.9 million 2009) for the fiscal year ended August 31, 2010. The current quarter expenditures reflect amounts incurred in commissioning and operating the integrated demonstration pilot. The Company realized $1.2 million in government grants for the quarter ended August 31, 2010 ($0.2 million 2009) and $4.4 million for the fiscal year ended August 31, 2010 ($1.2 million 2009).

General & Administrative – As a result of overhead reductions, G&A expenses for the quarter and year ended August 31, 2010 continued lower at $0.3 million and $1.6 million respectively compared with $0.4 million and $2.2 million in the same periods for fiscal 2009.

Cash & Interest income – The Company's cash position at August 31, 2010 was $9.5 million (including $0.4 million in restricted investments relating to the Alberta Government grant). This compares to $15.2 million at August 31, 2009 (including $2.2 million in restricted investments relating to the Alberta Government Grant). Interest income decreased during the quarter and the fiscal year due to lower interest rates on re-investment of maturing certificates of deposit and lower investment balances.

To view the Company's Management Discussion and Analysis and Financial

Statements for the quarter ended August 31, 2010, please visit our website at www.titaniumcorporation.com or SEDAR at www.sedar.com.

About Titanium Corporation Inc.

Titanium Corporation Inc. is developing technology to recover heavy minerals and bitumen contained in the waste tailings streams from oil sands mining operations near Fort McMurray, Alberta. The potential benefits from this "Creating Value from Waste" proposition are twofold. First, the recovered bitumen and minerals will have intrinsic value and will provide shareholders with a source of revenue. Second, by using an integrated approach to recovering minerals and bitumen, there is potential for industry-wide environmental benefit. The Company's shares trade on the TSX-V under the symbol "TIC". For more information visit the Company's website at www.titaniumcorporation.com.

Disclosure regarding forward-looking statements

Certain statements contained herein regarding the Company and its plans constitute "forward-looking statements" within the meaning of Canadian securities laws. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that predictions, forecasts, conclusions, projections, and other forward-looking statements will not prove to be accurate. We direct you to our statement of risks and uncertainties more particularly described and updated in the Company's Management Discussion and Analysis filed for the period ended August 31, 2010 on SEDAR (www.sedar.com). Most notably these risks include, but are not limited to risks associated with the advancement of research programs including operational or technical difficulties in connection with research activities; development timeline delays and problems, including unforeseen development costs; reliance on a small number of people, access to and cost of tailings, competition and intellectual property protection and changes to environmental laws and regulations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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