SWEF TERRAWINDS RESOURCES CORP. Files Third Quarter Financial Results

TORONTO, Nov. 29, 2012 /CNW/ - SWEF TERRAWINDS RESOURCES CORP. (the "Company") announces it has filed with Canadian securities regulators its unaudited interim financial statements and Management's Discussion and Analysis ("MD&A") for the three and nine month periods ended September 30, 2012 and 2011.  These documents will be available at www.sedar.com and www.sweflp.com.

On January 16, 2008, March 10, 2008, April 29, 2008, August 29, 2008, November 13, 2008, December 1, 2008, March 26, 2009 and July 24, 2009 management provided instructions to shareholders regarding the process for submitting tax indemnity claims and the status of the claims process.  Distributions of the funds held in trust by the Agent continue, and the relevant taxation authorities continue to provide individual reassessments for the 2005 tax year allowing shareholders to make their tax indemnity claims. Further information is available at www.sweflp.com and www.terida.com/paymentagent.

Recent Developments

The tax indemnity period has been extended to July 31, 2013. Investors who intend to file claims against the tax indemnity fund and have not yet done so are urged to do so as soon as possible.

Results of Operations

Three Month Comparison

Net loss for the three month period ended September 30, 2012 was $116 thousand compared to a net loss of $259 thousand for the same period in fiscal 2011. The decrease in net loss of $143 thousand is due primarily to a decrease in tax indemnity payments and related deferred tax recovery when comparing the three months ended September 30, 2012 to the same period ended September 30, 2011.

Interest income for the three month period ended September 30, 2012 was $16 thousand, which compares to $19 thousand for the same period in fiscal 2011.

Professional fees and other expenses for the three month period ended September 30, 2012 were $62 thousand compared to $96 thousand for the same period in fiscal 2011. The decrease of $34 thousand is attributable to lower levels of activity during the current fiscal year.

Deferred income tax recovery for the three month period ended September 30, 2012 was $36 thousand, compared to a recovery of $77 thousand for the same period in fiscal 2011. The deferred income tax recovery for the three month period ended September 30, 2012 arises due to the tax indemnity claims made in the period. The recovery decreased by $41 thousand due to fewer tax indemnity claims made in the third quarter of 2012 when compared to 2011.

Nine Month Comparison

Net loss for the nine month period ended September 30, 2012 was $350 thousand compared to a net loss of $962 thousand for the same period in fiscal 2011. The decrease in net loss of $612 thousand is due primarily to a decrease in tax indemnity payments and related deferred tax recovery when comparing the nine months ended September 30, 2012 to the same period ended September 30, 2011.

Interest income for the nine month period ended September 30, 2012 was $68 thousand, which compares to $71 thousand for the same period in fiscal 2011.

Professional fees and other expenses for the nine month period ended September 30, 2012 were $201 thousand compared to $269 thousand for the same period in fiscal 2011. The reduction in professional fees is attributable to lower levels of activity during the current fiscal year and IFRS conversion efforts undertaken by the Company in the prior year, which did not recur in the current year.

Deferred income tax recovery for the nine month period ended September 30, 2012 was $108 thousand, compared to a recovery of $278 thousand for the same period in fiscal 2011. The deferred income tax recovery for the nine month period ended September 30, 2012 arises due to the tax indemnity claims made in the period. The recovery decreased by $170 thousand due to fewer tax indemnity claims made in the third quarter of 2012 when compared to 2011.

SOURCE: SWEF TERRAWINDS RESOURCES CORP.

For further information:

W. Judson Martin, Chairman SWEF Terrawinds Resources Corp. judsonmartin@sweflp.com