| August 19, 2008 |
| Monroe Minerals Second Quarter 2008 Results and Highlights |
CALGARY, ALBERTA--(Marketwire - Aug. 19, 2008) - Monroe Minerals Inc. (TSX VENTURE:MMX) ('Monroe') today reported its 2008 second quarter financial results and operational highlights.
The Company is in the exploration and development stage of its operations but recorded net income for the period of $737,139 (Q2 2007: net loss $310,091) as a result of the disposal of a subsidiary company. Monroe Mining (Pty) Limited ('Monroe SA') was sold effective June 30, 2008 (Monroe - July 3, 2008 News Release) for US$1,350,000 in cash and a 10% carried equity interest in developments arising from the intellectual data base of Monroe SA. A gain on disposal of $1,160,778 was recognized during the period under review. No general and administration expenses were capitalized in Q2 2008, as compared to 17% capitalized during Q2 2007.
General and administration expenses (prior to capitalization in 2007) decreased by 15% to $282,179 from $330,255. While salaries and benefits, audit and legal, and general office and miscellaneous decreased by $61,696 (44%), $7,901 (24%), and $26,054 (58%) respectively, financial administration, investor relations, stock compensation expense, and travel and marketing rose by $16,064 (55%), $8,028 (48%), $16,492 (46%) and $6,891 (23%) respectively. General and administration expense increased by $20,224 (3%) during the six months ended June 30, 2008. The principal factors behind these movements were the cessation of operations in Angola, higher corporate activity in the uranium division, timing differences in the recognition of specific expenses, and option expenses related to options granted to directors, employees and consultants during the latter part of 2007.
Cash outflows used by operating activities in the second quarter of 2008 amounted to $336,186, compared to cash outflows in the second quarter of 2007 of $222,765. Cash resources at the end of the period amounted to $2,380,753, up from $1,814,571 at the beginning of the quarter as a result of cash received on the subsidiary sale less cash flow used by operating activities. Interest bearing debt, secured by a charge on income from the London Mine, of $456,278, was repaid from the proceeds from the sale of Monroe SA as a requirement of the sale.
Operational Highlights:
The Company achieved a key objective for 2008 with the completion of the disposal of its diamond interests and is now entirely focused on developing its uranium division.
Field work at Boxey Point and Berry Hill was completed on June 28 and at Alexis River on July 16 (Monroe - August 6, 2008 News Release). The results of sample analysis and the overall assessment of this field work will dictate further exploration on these properties, including potential drilling, planned before year end.
One of the Company's objectives during 2008 is the identification of suitable uranium companies and assets for acquisition, merger, strategic partnership or joint venture in Canada and Africa. While efforts towards achieving this objective are continuing with increasing intensity, and during the second quarter the Company entered informal discussions with five companies, to date none of these discussions have progressed to formal proposals.
Additional information relating to Monroe, including Monroe's quarterly report, management's discussion and analysis and unaudited financial statements for the quarter ended June 30, 2008, is available on Monroe's web site at www.monroeminerals.com and on SEDAR at www.sedar.com.
Monroe is engaged in the assembly of an international portfolio of uranium exploration projects. Its strategy is well defined: enhancing shareholder value by combining technical expertise, corporate development skills and professional management. 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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