| November 26, 2008 |
| Monroe Minerals' Third Quarter 2008 Results and Activity Update |
CALGARY, ALBERTA--(Marketwire - Nov. 26, 2008) - Monroe Minerals Inc. (TSX VENTURE:MMX) today reported its 2008 third quarter financial results and operational update.
The Company is still in the exploration and development stage of its operations and recorded a net loss for the quarter of $681,559, compared to a loss in the comparable period of 2007 of $309,195. The increase in the net loss is due to an acceleration in exploration activity, with $526,193 exploration costs being expensed during the quarter compared to $nil during the third quarter of 2007. In addition, the Company has not capitalized any overhead expenses during 2008, compared to $170,267 during the first nine months of 2007.
General and administration expenses prior to capitalization decreased to $136,181 from $250,809. Within this, salaries and benefits decreased by $85,843, general office and miscellaneous costs by $51,280 and audit and legal expenses by $10,413, while finance and administration increased by $7,343, travel and marketing by $10,217, and investor relations by $15,348. General and administration expenses prior to capitalization for the first three quarters of the year decreased by $152,859. The decrease in general and administration expenses is due to the cessation of activities in Angola in the first quarter 2008 and the disposal of the Company's Diamond interests in the second quarter 2008.
Cash flows used by operating activities in the third quarter of 2008 amounted to $652,310, against cash flows used by operating activities in the third quarter of 2007 of $214,604. Expenditures on mineral interests and the review of new projects amounted to $527,793, principally on the Alexis River and Boxey Point uranium properties in Newfoundland & Labrador. Cash at the end of the period amounted to $1,731,151.
Activity Update:
ALEXIS RIVER
Summer fieldwork at Alexis River commenced on June 20, was completed on July 15, and comprised: geological mapping of the northern part of the claim block; reconnaissance prospecting of those portions of the claims that were reasonably accessible by foot from the field camp; the collection by rubber boat along lines spaced from about 50 m to 100 m apart of a total of 173 lake sediment samples; the collection of three water samples from small rivulets that drain into Anomaly Lake from the northeast, north and west side; and the collection of 14 rock grab samples from selected radioactive occurrences that were discovered. The results provided further understanding of the geology of the property, the radioactive occurrences within the property, and confirmed the anomalous nature of the sediment within Anomaly Lake and of the water both within Anomaly Lake and draining into it.
Fall fieldwork at Alexis River commenced on September 20 and was completed on October 12. During this period, 1,294.5 metres was drilled in five holes to test beneath Anomaly Lake. The key drilling results are from two holes within which the high uranium assay was 0.754% U3O8 across 0.20 m from 58.90 to 59.10 m core length and the low assay was 0.034% U3O8 across 0.40 m from 16.70 to 17.10 m core length.
Monroe concludes that the anomalous uranium in lake sediment at Anomaly Lake may still be due to one or more causes. The Company is preparing a summary report documenting the 2008 fieldwork and drilling to facilitate discussion and deliberation on the future program at Alexis River.
BOXEY POINT
The May/June field program, comprising the collection of 24 rock grab samples, 14 till and till concentrate samples, as well as 572 soil samples, with the bulk of the work completed at the west-central part of the Boxey Point promontory, provided encouraging results. The samples reveal elevated uranium, ranging from a high of 45 ppm to less than 0.5 ppm, with an average of 4.2 ppm. The preliminary geochemical results indicate there are anomalous uranium trends in soils extending east-southeasterly and northeasterly away from the radioactive zone along the west shore of Boxey Point. A second field program commenced in October and results are awaited.
Monroe considers that further exploration is warranted at Boxey Point, including (a) a magnetic geophysical survey, possibly combined with electromagnetic or radiometric surveys or both, conducted over the central part of the Boxey Point promontory; (b) follow-up geochemical soil sampling along the northern, eastern and southern margins of the soil sampling completed in 2008; and (c) selected targets drill tested by a series of short inclined holes. A preliminary estimate of the cost to perform the above exploration is $750,000.
LOST POND
In September 2008 the Company agreed to enter into an option agreement with Ucore Uranium Inc. ("Ucore") allowing Monroe to earn a 50% interest in the Lost Pond uranium and rare earth elements ("REE") property, located in western Newfoundland, Canada. The existing letter agreement is to be supplemented by a detailed option and joint venture agreement under negotiation.
Monroe commenced an exploration program at Lost Pond in October 2008 that includes approximately 3,000 metres of drilling. The program will test both the uranium and the REE targets. The budget for the ten-week program is $0.75 million.
Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for Monroe on the Alexis River, Boxey Point and Lost Pond projects.
Additional information relating to Monroe, including Monroe's quarterly reports, management's discussion and analysis and unaudited financial statements for the quarter and nine months ended September 30, 2008, is available on SEDAR at www.sedar.com.
Monroe is engaged in the assembly of a portfolio of uranium projects and exploration thereon. Its strategy is well defined: enhancing shareholder value by combining Monroe's recognized twin strengths of technical expertise and professional management to advance exploration projects to profitable long term production. Monroe's shares trade on the TSX Venture Exchange under the symbol MMX. For more information please visit www.monroeminerals.com.
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Forward-looking statements: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
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