5N Plus Inc. Reports Record Sales and Earnings for the Fourth Quarter and Year Ended May 31, 2008



    MONTREAL, Aug. 11 /CNW Telbec/ - 5N Plus Inc. (TSX: VNP) today announced
financial results for the fourth quarter and year ended May 31, 2008.

    
    Highlights of the fourth quarter and year ended May 31, 2008

    - Net earnings for the fourth quarter were $3,178,621 or $0.08 per share,
      representing a 160% increase over net earnings of $1,222,428 or
      $0.04 per share for the fourth quarter of the previous fiscal year.
      For the fiscal year, net earnings were $7,766,137 or $0.22 per share,
      representing an increase of 117.3% over net earnings of $3,574,082 or
      $0.12 per share for the previous fiscal year.

    - EBITDA(1) for the fourth quarter was $4,646,476, representing an
      increase of 86.7% over EBITDA of $2,488,087 for the fourth quarter of
      the previous fiscal year. EBITDA reached $12,481,760 for the fiscal
      year, an increase of 73.3% over EBITDA of $7,202,310 for the previous
      fiscal year.

    - Sales for the fourth quarter were $9,423,908, representing an increase
      of 43.9% over sales of $6,549,412 for the fourth quarter of the
      previous fiscal year. Sales for the fiscal year were $30,972,941, an
      increase of 41.4% compared to sales of $21,897,240 for the previous
      fiscal year.

    - Operational performance was outstanding throughout the year as the
      Company increased production throughput at its Montreal facility, to
      meet the growing requirements of the Company's customers, while
      improving efficiency and reducing costs.

    - Cash flow from operating activities, excluding changes in non-cash
      working capital items, increased to $3,552,457 for the quarter and
      $9,880,266 for the fiscal year. This compares to $1,553,438 and
      $4,738,467 for the corresponding periods of the previous fiscal year.

    - Shareholders' equity significantly increased during the fourth quarter
      and the fiscal year, reaching $91,553,930 at year end, up from
      $7,546,467 at the end of the previous fiscal year. During the fourth
      quarter, the Company raised $46,200,000 through the issuance of
      4 million common shares, which resulted in net proceeds of $44,147,461
      (net of issue expenses). This followed the closing of the Company's
      initial public offering which occurred during the third quarter of the
      fiscal year, resulting in net proceeds to the Company of $31,417,006
      (net of issue expenses).

    - Cash and cash equivalents totalled $59,576,743 at year end, compared to
      $1,526,932 at the end of the previous fiscal year.

    - During the fiscal year, the Company invested $14,383,791 to build and
      commission its Eisenhuttenstadt facility and $3,178,784 to upgrade and
      expand the capabilities of its Montreal facility, for a total
      investment in capital expenditures of $17,562,575.
    

    "We are pleased to report our fourth quarter and year end results which
were truly outstanding and exceeded our expectations both in terms of
financial and operational performance. Earnings, EBITDA and sales all reached
record levels during the fourth quarter and the year, in much the same way as
they had in the previous reporting periods. Most noticeable are the increases
in earnings, EBITDA and cash flow from operations which reflect our solid
operational performance in both the quarter and throughout the year. We also
experienced a continuing and increasing demand for our products in the
photovoltaic market and to a lesser extent in the radiation detector market
which positively contributed to improve our sales and margins." commented
Mr. Jacques L'Ecuyer, President and Chief Executive Officer. "Closing of our
initial public offering this year was a decisive moment for 5N Plus providing
us with the financial means for execution of our growth plan which calls for
substantial investments aimed at positioning our firm as the leading
electronic materials company. Proceeds raised have so far been used primarily
to fund the construction of our new Eisenhuttenstadt facility, which is now
operational, and upgrade and expand our Montreal facility. Planned further
uses of the proceeds raised include investments to diversify product offerings
and accretive acquisitions where we take advantage of our public company
profile and visibility."
    Mr. L'Ecuyer concluded, "We welcome the 42 new employees of our German
subsidiary and the 25 that joined 5N Plus in Montreal during the year.
Integration, cooperation and values are more than ever key to our success. On
behalf of our employees and members of the Board of Directors, we would like
to thank our shareholders for their confidence in our company and for their
continuing support."
    The audited consolidated financial statements of 5N Plus, as well as
Management's Discussion and Analysis of year ended May 31, 2008 are available
on the 5N Plus website, at www.5nplus.com or at www.sedar.com

    Webcast Information

    The Company will host a conference call at 10:00 AM Eastern Time on
Tuesday, August 12, 2008 with financial analysts to discuss the fourth quarter
and year ended May 31, 2008. All interested parties are invited to participate
to the live broadcast on the company's Web site at www.5nplus.com. A replay of
the webcast and a recording of the Q&A will be available until August 26,
2008.

    About 5N Plus Inc.

    5N Plus draws its name from the purity of its products, 99.999% (five
nines or 5N) and more. 5N Plus, which has its head office in Montreal, Quebec,
develops and produces high-purity metals and compounds for electronic
applications and provides its customers with recycling solutions. The Company
is an integrated producer with both primary and secondary refining
capabilities. 5N Plus focuses on specialty metals such as tellurium, cadmium
and selenium and on related compounds such as cadmium telluride and cadmium
sulphide. The Company's products are critical precursors in a number of
electronic applications, including the rapidly-expanding solar (thin-film
photovoltaic) market, for which 5N Plus is a major supplier of cadmium
telluride, and the radiation detector market.

    
    (1)EBITDA are not defined by Canadian generally accepted accounting
       principles and cannot be formally presented in financial statements.
       EBITDA means earnings before financing costs, interest income, income
       taxes, depreciation and start-up costs. The definition of EBITDA
       used by the Company may differ from that used by other companies.
       Please see management's discussion and analysis for more details.


    Selected Annual Information

    -------------------------------------------------------------------------
    Financial summary

    (in thousands of Canadian
     dollars, unless
     otherwise noted)                     2008           2007           2006
                                ---------------------------------------------
    Sales                         $ 30,972,941   $ 21,897,240   $ 13,800,498
    EBITDA                        $ 12,481,760   $  7,202,310   $  2,247,511
    Net earnings                  $  7,766,137   $  3,574,082   $    767,815
      per common share            $       0.22   $       0.12   $       0.03
      diluted                     $       0.21   $       0.11   $       0.02
    Dividend per common share     $      0.034   $      0.003   $      0.003
    Total assets                  $108,334,189   $ 17,363,037   $ 15,062,509
    Total debt                    $  6,786,312   $  5,618,270   $  8,567,471
    Shareholders' equity          $ 91,553,930   $  7,546,467   $  3,995,096
    -------------------------------------------------------------------------


    Quarterly Financial Data

    -------------------------------------------------------------------------
    (in thousands of
     Canadian dollars,                         2008
     unless otherwise -------------------------------------------------------
     noted)                     Q4            Q3            Q2            Q1
                      -------------------------------------------------------

    Sales              $ 9,423,908   $ 8,358,817   $ 6,795,743   $ 6,394,473
    -------------------------------------------------------------------------
    Gross profit       $ 5,615,838   $ 4,454,138   $ 3,276,379   $ 2,977,434
    -------------------------------------------------------------------------
    EBITDA             $ 4,646,476   $ 3,423,415   $ 2,318,111   $ 2,093,758
    -------------------------------------------------------------------------
    Net earnings       $ 3,178,621   $ 2,268,712   $ 1,219,548   $ 1,099,256
    -------------------------------------------------------------------------

    Earnings per share
      Basic            $      0.08   $      0.06   $      0.04   $      0.04
    -------------------------------------------------------------------------
      Diluted          $      0.08   $      0.06   $      0.04   $      0.03
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    (in thousands of
     Canadian dollars,                         2007
     unless otherwise -------------------------------------------------------
     noted)                     Q4            Q3            Q2            Q1
                      -------------------------------------------------------

    Sales              $ 6,549,412   $ 5,554,737   $ 4,889,938   $ 4,903,153
    -------------------------------------------------------------------------
    Gross profit       $ 3,106,722   $ 2,135,263   $ 2,110,620   $ 1,781,270
    -------------------------------------------------------------------------
    EBITDA             $ 2,488,087   $ 1,767,318   $ 1,553,343   $ 1,393,562
    -------------------------------------------------------------------------
    Net earnings       $ 1,222,428   $   798,073   $   867,255   $   686,326
    -------------------------------------------------------------------------

    Earnings per share
      Basic            $      0.04   $      0.03   $      0.03   $      0.02
    -------------------------------------------------------------------------
      Diluted          $      0.04   $      0.02   $      0.03   $      0.02
    -------------------------------------------------------------------------
    
    %SEDAR: 00026114EF




For further information:

For further information: Jacques L'Ecuyer, President and Chief Executive
Officer, 5N Plus Inc., (514) 856-0644, jacques.lecuyer@5nplus.com


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