SWEF Terrawinds Resources Corp. Files Third Quarter Financial Results

TORONTO, Nov. 28, 2011 /CNW/ - SWEF TERRAWINDS RESOURCES CORP. (the "Company") announces it has filed with Canadian securities regulators its interim financial statements and Management's Discussion and Analysis ("MD&A") for the three and nine month periods ended September 30, 2011 and 2010.  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 have commenced as the relevant taxation authorities have begun providing 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.

Results of Operations

Three Month Comparison

Net loss for the three month period ended September 30, 2011 was $0.3 million compared to a net loss of $1.3 million for the same period in fiscal 2010.  The decrease in net loss of $1.0 million is due primarily to a decrease in tax indemnity payments and related deferred tax recovery when comparing the three months ended September 30, 2011 to the same period ended September 30, 2010.

Interest income for the three month period ended September 30, 2011 was $20 thousand, which compares to $13 thousand for the same period in fiscal 2010.

Professional fees and other expenses for the three month period ended September 30, 2011 were $0.1 million compared to $0.1 million for the same period in fiscal 2010. The Company's activities relating to professional fees are comparable for the third quarter of 2011 when compared to 2010.

Deferred income tax recovery for the three month period ended September 30, 2011 was $0.1 million, compared to a recovery of $0.3 million for the same period in fiscal 2010. The deferred income tax recovery for the three month period ended September 30, 2011 arises due to the tax indemnity claims made in the period. The recovery decreased by $0.2 million due to fewer tax indemnity claims made in the third quarter of 2011 when compared to 2010.

Nine Month Comparison

Net loss for the nine month period ended September 30, 2011 was $1.0 million compared to a net loss of $5.8 million for the same period in fiscal 2010. The decrease in net loss of $4.8 million is due primarily to a decrease in tax indemnity payments and related deferred tax recovery when comparing the nine months ended September 30, 2011 to the same period ended September 30, 2010.

Interest income for the nine month period ended September 30, 2011 was $71 thousand, which compares to $30 thousand for the same period in fiscal 2010.

Professional fees and other expenses for the nine month period ended September 30, 2011 were $0.3 million compared to $0.3 million for the same period in fiscal 2010. Although the three month period ending September 30, 2011 incurred lower professional fees, this was offset by higher professional fees in the three month period ending March 31, 2011 as a result of conversion of the Company's financial reporting to IFRS.

Deferred income tax recovery for the nine month period ended September 30, 2011 was $0.3 million, compared to a recovery of $1.6 million for the same period in fiscal 2010. The deferred income tax recovery for the nine month period ended September 30, 2011 arises due to the tax indemnity claims made in the period. The recovery decreased by $1.3 million due to fewer tax indemnity claims made in the third quarter of 2011 when compared to 2010.

Forward Looking Statements

Certain statements contained in this Press Release constitute forward looking statements within the meaning of the Securities Act (Ontario) regarding the future performance of the Company based on assumptions the management of the Company considered reasonable at the time it was prepared as at November 22, 2011.  All forward-looking statements are inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward looking statements.  We consider the assumptions on which these forward looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect.  These forward looking statements involve a number of risks, uncertainties and assumptions, including the risk of future tax assessments, litigation or other unanticipated expenses.

The Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise, except as required by law.  These risks may cause the actual results, performance or achievements of the Partnership to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  These cautionary statements expressly qualify all forward looking statements attributable to the Company.

For further information:

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

Profil de l'entreprise

SWEF TERRAWINDS RESOURCES CORP.

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