Vangold loses $245,000 in Q3

2007-11-29 21:06 ET - News Release

Mr. Dal Brynelsen reports

FINANCIAL HIGHLIGHTS FOR THIRD QUARTER 2007 AND ANNOUNCES AGREEMENT FOR SALE OF KILLAM NORTH INTEREST

Vangold Resources Ltd. has released its third quarter 2007 results.

For the nine months ended Sept. 30, 2007, Vangold had a strong balance sheet with working capital of $4,445,638 and no long-term debt. Briefly, reported revenues were $1,760,721 with a net loss of $746,367. Expenditures consisted of $859,094 on oil and gas properties and $1,192,536 on mineral exploration.

                   FINANCIAL HIGHLIGHTS
                          Three months ended  Three months ended
                            Sept. 30, 2007      Sept. 30, 2006
Net income                    ($245,350)              $308,558
Total assets                $15,093,636            $14,590,963
Total revenue                  $565,522             $1,123,791
Total expenses                 $680,755               $553,224
Cash and cash equivalents    $4,229,334             $5,590,249
Total working capital        $4,445,638             $5,989,581

Vangold also announces, effective Nov. 28, 2007, the sale of its 26.25-per-cent interest in the Killam North oil field for proceeds of $4,668,000. On the advice of independent oil and gas consultants, the board determined that the sale is a prudent move by Vangold because the Killam North field will be shut in for almost one year during the upcoming waterflood. Accordingly, the resulting lack of revenue, coupled with the high cost of the waterflood and attendant risks, prompted the board's DECISION.