Torex Gold Resources Inc.
TSX : TXG

Torex Gold Resources Inc.

January 28, 2011 16:43 ET

Torex Reports 2010 Audited Year End Results

TORONTO, ONTARIO--(Marketwire - Jan. 28, 2011) -

(All amounts expressed in Canadian Dollars unless otherwise stated)

Torex Gold Resources Inc. (the "Company" or "Torex") (TSX:TXG) announced today its audited results for the year ended October 31, 2010.

2010 HIGHLIGHTS
  • Acquired 100% of the Morelos Gold Project through two separate purchase transactions
  • Raised gross proceeds of $291.5 million through two separate financing transactions
  • Appointed a new board, management, exploration and operations teams
  • Commenced trading on the Toronto Stock Exchange
  • Reactivated and renewed two key land access agreements with the Rio Balsas Ejido and the Puente Sur Balsas Ejido
  • Began exploration and drilling programs in April 2010
  • Negotiated and signed a land access agreement with the Real del Limon Ejido
  • Mobilized six drills to site by the end of October 2010
  • Advanced pre-feasibility work for Morelos Gold Project development on a number of fronts
  • Completed a resource estimate on the El Limon deposit indicating the potential for an underground mining operation for the El Limon deposit
SUBSEQUENT EVENTS
  • Mobilized five additional drills to site
  • Approved a $43.5 million budget for fiscal 2011 ($37.0 million related to exploration and development activities including 125,000 metres of drilling by fiscal 2011 year-end)
  • Announced the extension of the El Limon and Los Guajes East deposits through step-out drilling

FINANCIAL HIGHLIGHTS

The net loss for the year ended October 31, 2010 increased to $16.4 million compared with a loss of $1.0 million for the year ended October 31, 2009. This increase in loss is due to increased exploration, development and corporate activity related to the transformation to a company with an advanced-stage gold exploration property. Proceeds received from the two completed financing transactions were partially offset by the purchase of the Morelos Gold Project and the incurrence of exploration, project development, corporate and equipment expenditures. As a result, the Company had $62.7 million of cash on hand at October 31, 2010 and a working capital balance of $61.9 million.

A complete set of the Company's Audited Financial Statements, Notes to the Financial Statements and Management's Discussion and Analysis for the year ended October 31, 2010 will be posted on the Company's website at www.torexgold.com and will be filed on Sedar at www.sedar.com.

Torex Gold Resources Inc. is a well funded, growth-oriented, Canadian mining company engaged in the exploration and development of precious metal resources with a focus on gold. It owns 100% of the Morelos Gold Project, an advanced stage gold exploration property, located 180km southwest of Mexico City in the highly prospective Morelos Gold Belt. The project covers an area of 29,000ha of which more than 75% remains unexplored.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to future exploration and development plans concerning the Morelos Gold Project, including expected timing for mobilizing drills on the project, expected drilling results and the timing within which the Company expects to receiving drilling results, anticipated timing for the completion of a pre-feasibility study and other technical studies on the project. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "estimates", "intends", "anticipates" or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made at the date that such statements are made. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including the risk factors disclosed elsewhere in the Company's public disclosure. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purposes of assisting investors in understanding the Company's expected financial and operating performance and the Company's plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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