CROWFLIGHT ANNOUNCES FIRST QUARTER 2010 FINANCIAL RESULTS

(firmenpresse) -
CROWFLIGHT ANNOUNCES FIRST QUARTER 2010 FINANCIAL RESULTS

CROWFLIGHT MINERALS INC. (“Crowflight” or the “Company”) (TSX: CML) today announces its financial results for the first quarter of 2010.

Complete interim financial statements and related Management’s Discussion and Analysis will be filed under the Company’s profile on www.sedar.com. All amounts are in Canadian dollars unless otherwise indicated.

Q1 2010 Financial and Operational Highlights

•The Bucko Lake Nickel Mine (“Bucko”) located in the Thompson Nickel Belt near Wabowden, Manitoba resumed milling operations and shipments of nickel concentrate during the first quarter of 2010. This marks the first shipments of nickel concentrate since milling operations resumed at the Bucko Mine earlier this year.

•For the quarter ended March 31, 2010, there were 141,970 pounds of nickel produced, and 117,600 pounds of commercial production nickel sold as compared to 138,956 pounds of nickel produced and 65,498 of pre-production nickel sold in the first quarter of last year when the mine was not yet in production.

•Total metal revenue for the quarter ended March 31, 2010 was $1.2 million compared to nil for the first quarter last year.

•Operating cash flow for the quarter ended March 31, 2010 was negative $8,944,040 compared to operating cash flow of $8,491,474 in the first quarter last year.

•Loss for the quarter ended March 31, 2010 was $6.2 million or ($0.01) per share compared to net income of $1.5 million or $0.01 per share in the first quarter last year (due to a gain on derivative instruments in the first quarter of 2009).

•Commercial nickel sales settled during the quarter ended March 31, 2010 were realized at an average price of US$9.77 per pound compared with pre-production nickel sales in the first quarter of 2009 which were realized at an average price of US$4.46 per pound.

•Net working capital as at March 31, 2010 was $4.0 million (including cash and cash equivalents of $9.2 million) compared to $3.2 million as at December 31, 2009.

•On January 27, 2010, the Company received a non-binding expression of interest from Pala regarding the direct or indirect acquisition of the Bucko Deposit and certain surrounding exploration areas held by the Company in the Thompson Nickel Belt, including the M11A and Apex deposits, collectively the “Bucko Assets”. Subsequent to the quarter’s end, discussions with Pala were terminated. Please see press releases dated January 27 and 28, 2010 and May 10, 2010.

•On February 19, 2010, the Company announced it had closed a private placement financing by issuing an aggregate of 72,200,000 common shares of the Company at a price of $0.16 per share for gross proceeds of $11,552,000. Pala purchased 21,356,250 of the 72,200,000 common shares resulting in it holding approximately 25.3% of the issued and outstanding shares of the Company (based on Pala’s public disclosure of its security holdings).

•On February 4, 2010 and March 4, 2010, Crowflight reported assay results from a program of drilling at the Company’s M11A North deposit, located 5 kilometres from the Bucko mine site. Drilling results from this program are to be used to update resource calculations later this year. Exploration expenditures made in 2009 entitle Crowflight to vest its initial 35% interest in the combined land package in the Thompson Nickel Belt as per the terms of its option agreement with Xstrata.

•On March 23, 2010, the Company announced the appointment of Steve Davies, P.Eng. as Chief Operating Officer of Company.

•Subsequent to the quarter’s end, the Company received an offer from Jinchuan Group Ltd. ("Jinchuan") to acquire all of the common shares of Crowflight in consideration for an aggregate cash payment of $150,000,000. Based on the current number of Crowflight common shares outstanding, this Offer equates to approximately $0.26 per common share. The Offer represents a premium of 47.3% to the closing price on the Toronto Stock Exchange for the Company's common shares on April 2, 2010 and a premium of 56.8% to the 20 day volume weighted average trading price. On a partially diluted basis, taking into account the outstanding convertible securities of the Company that have an exercise price of equal to or less than $0.22, the Offer equates to approximately $0.22 per share. On this basis, the Offer represents a premium of 27.0% to the closing price on the Toronto Stock Exchange for the Company’s common shares on April 2, 2010 and a premium of 35.1% to the 20 day volume weighted average price. Please see press release dated April 6, 2010.

•Subsequent to the quarter’s end, the Company announced the resignation of Greg Collins, Vice President of Exploration for Crowflight, effective April 30th

•Subsequent to the quarter’s end, the Company entered into a series of financial instruments to price protect nickel sales from July 2010 – June 2011. The Company has hedged approximately 850,000 pounds of nickel at prices ranging from US$9.00 - $11.00 per pound of nickel.

•Subsequent to the quarter’s end, the TSX announced that it had completed its review of the listing of the common shares of the Company and determined that Crowflight meets TSX’s continued listing requirements.

Outlook
Crowflight does not expect to meet its 2010 guidance as previously disclosed in February 2010 (please see press release dated February 24, 2010). The Company is currently reviewing its 2010 production plan and costs for the remainder of this year, and expects to give updated guidance later this year.

Non-GAAP Measures
This press release refers to net working capital and cash cost per pound, which are not recognized measures under Canadian GAAP. These non-GAAP performance measures do not have any standardized meaning prescribed by Canadian GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Management uses these measures internally. The use of these measures enables management to better assess performance trends. Management understands that a number of investors and others who follow the Company's performance assess performance in this way. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP.

Qualified Person/Quality Control Procedures
This press release has been prepared and reviewed by Steve Davies, P.Eng, Chief Operating Officer of Crowflight, who is a Qualified Person under the National Instrument 43-101 guidelines.

About Crowflight Minerals
Crowflight Minerals Inc. (TSX: CML) is a Canadian junior mining company that owns the Bucko Lake Nickel Mine near Wabowden, Manitoba that recently resumed production. The Company also holds nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin.

Cautionary Note on Forward-Looking Information
This press release contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the Company’s development potential and timetable of the Company’s properties, including the Bucko Lake Project; the future price of nickel and other minerals; foreign exchange rates; the estimation of mineral reserves and mineral resources; conclusions of economic evaluations; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the Bucko Lake Project are based on assumptions underlying mineral reserve and mineral resource estimates and the probability of realizing such estimates that are set out herein. Capital and operating cost estimates are based on extensive research of the Company, purchase orders placed by the Company to date, recent estimates of construction and mining costs and other factors that are set out herein. Production estimates are based on mine plans and production schedules, which have been developed by the Company’s personnel and independent consultants. Forward looking statements are 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 statements, including but not limited to risks related to: unexpected events and delays during construction, expansion and start-up; variations in mineral grade and recovery rates; receipt and revocation of government approvals; timing and availability of external financing on acceptable terms; actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of minerals, particularly nickel; failure of plant, equipment or processes to operate as anticipated; reliance on joint venture partners; accidents, labour disputes and other risks of the mining industry and those other risks of the Company described in its annual information form that is available under its profile on SEDAR at www.sedar.com. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, 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. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

Further information is available on the Company's website at www.crowflight.com or contact:

Anna M. Ladd
VP Finance and CFO
Crowflight Minerals
Tel: (416) 861-5891

Heather Colpitts
Manager, Investor and Public Relations
Crowflight Minerals
Tel: (416) 861-5803
info(at)crowflight.com

To view the Consolidate Balance Sheet, please see the news on Crowflight´s website at: http://www.crowflight.com/s/NewsReleases.asp?ReportID=400331&_Type=News-Release&_Title=Crowflight-Announces-First-Quarter-2010-Financial-Results

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Datum: 20.05.2010 - 08:09 Uhr
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News-ID 21191
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