Amazon Reports Q2 Results and Company Update



    TORONTO, Sept. 2 /CNW/ - Amazon Mining Holding Plc (TSX-Venture: AMZ)
("Amazon" or the "Company") announced today its unaudited interim consolidated
financial statements for the three and six-month period ended June 30, 2008.
Reports indicated for the three-month period ended June 30, 2008 the net loss
increased substantially to (pnds stlg)2,205,719 from a loss of (pnds
stlg)43,941 compared to the three-month period ended July 31, 2007. For the
six-month period ended June 30, 2008 the net loss increased to (pnds
stlg)2,666,426 from a loss of (pnds stlg)130,210 compared to the six-month
period ended July 31, 2007. The loss widened during Q1-2008 due to the
commencement of active exploration activities late in December 2007.

    
    Q2 2008 and Subsequent Period Summary:
      -  Project generation continues defined by a strategy that aims to
         measure reward versus risk in the context of current global economy;
      -  Madeira Gold Project: Preliminary exploration has commenced at
         Madeira Gold Project and drilling is scheduled to commence during
         Q3-2008;
      -  Tocantins Gold Project: Despite the encouraging initial results from
         the first phase diamond drilling program, subsequent detailed ground
         magnetic geophysics, auger drilling and soil sampling proved
         disappointing prompting the discontinuation of the project;
      -  Lavras Gold Project: Results from the first phase diamond drilling
         program were determined to fall below economically extractable
         concentrations and the project was discontinued;
      -  Terra Branca Diamond Project: Prospective project economics have
         been negatively impacted by the appreciation of the Brazilian Real
         and attempts to vend or joint venture the property to a third party
         were significantly hampered by current adverse market conditions.
         The project was discontinued to avoid ongoing onerous property
         payments;
      -  Exploration expenditures for Q2-2008 aggregated to
         (pnds stlg)771,293 up from (pnds stlg)442,070 in preceding
         Q1-2008; and
      -  Jed Richardson was appointed Vice President, Corporate Development
         to strengthen management presence in Toronto and assist with project
         evaluation.
    

    Amazon currently has working capital position of approximately (pnds
stlg)4.8MM (Cdn$9.5MM) putting the Company in a strong position to advance the
Madeira project and investigate new opportunities. Commenting, President &
CEO, Cristiano Veloso, said: "We look forward to potentially very exciting
months ahead. Amazon's initial portfolio was assembled with a very limited
budget, thanks to a strong presence in Brazil in a market favourable to gold
exploration. In recent months we have added new capacity in project
evaluation, and consider the Company well equipped to secure value building
opportunities in Brazil."

    About Amazon

    Amazon is listed on the TSX Venture Exchange and is a mineral exploration
company engaged in acquiring and developing gold exploration properties in
Brazil. Its strategic focus is to acquire projects with demonstrated potential
for hosting gold deposits and to define resources through exploration and
drilling campaigns.

    On behalf of the Board of Directors of Amazon Mining Holding Plc,
Cristiano Veloso, President & Chief Executive Officer

    
    -------------------------------------------------------------------------
    Cautionary Language and Forward Looking Statements
    --------------------------------------------------
    THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
    OR ACCURACY OF THIS RELEASE AND THE INFORMATION CONTAINED HEREIN. THIS
    PRESS RELEASE CONTAINS CERTAIN "FORWARD LOOKING STATEMENTS", WHICH
    INCLUDE BUT IS NOT LIMITED TO, STATEMENTS WITH RESPECT TO THE FUTURE
    FINANCIAL OR OPERATING PERFORMANCE OF THE COMPANY, ITS SUBSIDIARIES AND
    ITS PROJECTS, STATEMENTS REGARDING USE OF PROCEEDS, EXPLORATION
    PROSPECTS, IDENTIFICATION OF MINERAL RESERVES, COSTS OF AND CAPITAL FOR
    EXPLORATION PROJECTS, EXPLORATION EXPENDITURES, TIMING OF FUTURE
    EXPLORATION AND PERMITTING, REQUIREMENTS FOR ADDITIONAL CAPITAL,
    GOVERNMENT REGULATIONS OF MINING OPERATIONS, ENVIRONMENTAL RISKS,
    RECLAMATION EXPENSES, TITLE DISPUTES OR CLAIMS, AND LIMITATIONS OF
    INSURANCE COVERAGE. FORWARD LOOKING STATEMENTS CAN GENERALLY BE
    IDENTIFIED BY THE USE OF WORDS SUCH AS "PLANS", "EXPECTS", OR "DOES NOT
    EXPECT" OR "IS EXPECTED", "ANTICIPATES" OR "DOES NOT ANTICIPATE", OR
    "BELIEVES", "INTENDS", "FORECASTS", "BUDGET", "SCHEDULED", "ESTIMATES" OR
    VARIATIONS OF SUCH WORDS OR PHRASES OR STATE THAT CERTAIN ACTIONS, EVENT,
    OR RESULTS "MAY", "COULD", "WOULD", "MIGHT", OR "WILL BE TAKEN", "OCCUR"
    OR "BE ACHIEVED". FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN
    RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL
    RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY
    DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED
    OR IMPLIED BY SAID STATEMENTS. THERE CAN BE NO ASSURANCES THAT FORWARD-
    LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND
    FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SAID
    STATEMENTS. ACCORDINGLY, READERS SHOULD NOT PLACE UNDUE RELIANCE ON
    FORWARD-LOOKING STATEMENTS.

    Readers are cautioned not to rely solely on the summary of such
    information contained in this release and are directed to the complete
    set of drill results posted on Amazon's website (www.amazonplc.com) and
    filed on SEDAR (www.sedar.com) and any future amendments to such. Readers
    are also directed to the cautionary notices and disclaimers contained
    herein.
    -------------------------------------------------------------------------



                          AMAZON MINING HOLDING PLC

                        CONSOLIDATED INCOME STATEMENT
     (Unaudited)

                             3 months     3 months     6 months     6 months
                                ended        ended        ended        ended
                              30 June       31 Jul      30 June       31 Jul
                                 2008         2007         2008         2007
                           (pnds stlg)  (pnds stlg)  (pnds stlg)  (pnds stlg)

    Administrative expenses  (205,509)     (49,826)    (430,868)    (133,156)
    Impairment loss        (2,071,714)           -   (2,071,714)           -
                           -----------  -----------  -----------  -----------

    Operating loss         (2,277,223)     (49,826)  (2,502,582)    (133,156)

    Finance income             53,970        5,885       73,059        5,770
    Exchange gains/
     (losses)                  17,534            -     (236,903)      (1,827)
                           -----------  -----------  -----------  -----------
    Loss before taxation   (2,205,719)     (43,941)  (2,666,426)    (129,213)

    Taxation                        -            -            -          997
                           -----------  -----------  -----------  -----------

    Loss for the period    (2,205,719)     (43,941)  (2,666,426)    (130,210)
                           -----------  -----------  -----------  -----------
                           -----------  -----------  -----------  -----------

    Basic and diluted loss
     per ordinary share        (8.02p)      (0.31p)      (9.69p)      (0.92p)
                           -----------  -----------  -----------  -----------
                           -----------  -----------  -----------  -----------



                          AMAZON MINING HOLDING PLC

                         CONSOLIDATED BALANCE SHEET
    (Unaudited)

                                              Note      30 June       31 Dec
                                                           2008         2007
                                                     (pnds stlg)  (pnds stlg)

    Intangible exploration assets                3      184,885      878,803
    Property, plant and equipment                4       39,786       10,739
                                                     -----------  -----------
                                                        224,671      889,542
                                                     -----------  -----------

    Other receivables and prepayments                    95,231       11,390
    Cash and cash equivalents                         5,297,506    7,393,769
                                                     -----------  -----------
    Total current assets                              5,392,737    7,405,159
                                                     -----------  -----------

    Total assets                                      5,617,408    8,294,701
                                                     -----------  -----------
                                                     -----------  -----------

    Equity

    Issued share capital                         5    6,879,789    6,879,789
    Warrant reserve                              6      590,480      590,480
    Share premium                                     3,620,082    3,620,082
    Translation reserve                                 164,829       30,082
    Merger reserve                                   (2,727,227)  (2,727,227)
    Accumulated losses                               (3,131,170)    (484,036)
                                                     -----------  -----------
                                                      5,396,783    7,909,170
                                                     -----------  -----------

    Liabilities
    Trade and other payables                            220,625      385,531
                                                     -----------  -----------
    Total liabilities                                   220,625      385,531
                                                     -----------  -----------

    Total equity and liabilities                      5,617,408    8,294,701
                                                     -----------  -----------
                                                     -----------  -----------



                          AMAZON MINING HOLDING PLC

                     CONSOLIDATED STATEMENT OF CASH FLOWS
    (Unaudited)

                             3 months     3 months     6 months     6 months
                                Ended        Ended        Ended        ended
                               30 Jun       30 Jul       30 Jun       30 Jul
                                 2008         2007         2008         2007
                           (pnds stlg)  (pnds stlg)  (pnds stlg)  (pnds stlg)

    Cash flows from
     operating activities:
    Operating loss         (2,277,223)     (49,826)  (2,502,582)    (133,156)
    Adjustments for:
    Depreciation                1,211           44        1,782           50
    Impairment loss         2,071,714            -    2,071,714            -
    Share-based payments        9,608            -       19,292            -
    Exchange differences       17,534                  (236,903)      (1,827)
    Increase in other
     receivables and
     prepayments              (36,632)      (2,471)     (83,840)        (755)
    (Decrease)/increase in
     trade and other
     payables                 (40,365)       3,052     (113,443)    (341,630)
                           -----------  -----------  -----------  -----------
    Cash used in operating
     activities              (254,155)     (49,201)    (843,980)    (477,318)
    Income taxes paid               -            -            -         (853)
                           -----------  -----------  -----------  -----------
    Net cash outflow from
     operating activities    (254,155)     (49,201)    (843,980)    (478,171)

    Cash flows from
     investing activities:
    Interest received          21,266        5,885       21,593        5,770
    Acquisition of
     intangible
     exploration assets      (799,468)    (213,104)  (1,241,538)    (285,949)
    Acquisition of
     property, plant and
     equipment                (17,149)      (2,120)     (28,446)      (3,161)
                           -----------  -----------  -----------  -----------
    Net cash outflow from
     investing activities    (795,351)    (209,339)  (1,248,391)    (283,340)
                           -----------  -----------  -----------  -----------

    Issue of share capital          -            -            -    1,029,499
                           -----------  -----------  -----------  -----------
    Net cash flow from
     financing activities           -            -            -    1,029,499
                           -----------  -----------  -----------  -----------
    Net (decrease)/increase
     in cash and cash
     equivalents           (1,049,506)    (258,540)  (2,092,371)     267,988
    Cash and cash
     equivalents at start
     of period              6,326,581      587,415    7,393,769       41,895
    Exchange differences       20,431       (2,595)      (3,892)      16,397
                           -----------  -----------  -----------  -----------
    Cash and cash
     equivalents at end
     of period              5,297,506      326,280    5,297,506      326,280
                           -----------  -----------  -----------  -----------
                           -----------  -----------  -----------  -----------



                          AMAZON MINING HOLDING PLC

                 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

    (Unaudited)
    From 1 May 2007 to 31 December 2007

                               Issued        Share     Warrants       Merger
                              capital      premium      reserve      reserve
                           (pnds stlg)  (pnds stlg)               (pnds stlg)

    Balance at 1 May 2007   3,546,456      203,259            -   (2,727,227)
    Shares issued during
     period                 3,333,333    4,006,110            -            -
    Share warrants issued
     during period                  -            -      590,480            -
    Expenses of issue               -     (696,676)           -            -
                                    -      107,389            -            -
    Loss for the period             -            -            -            -
    Foreign exchange
     differences                    -            -            -            -
                           -----------  -----------  -----------  -----------
    Balance at
     31 December 2007       6,879,789    3,620,082      590,480   (2,727,227)
                           -----------  -----------  -----------  -----------
                           -----------  -----------  -----------  -----------


                          Accumulated  Translation
                               losses      reserve        Total
                           (pnds stlg)  (pnds stlg)  (pnds stlg)

    Balance at 1 May 2007    (169,601)        (831)     852,056
    Shares issued during
     period                         -            -    7,339,443
    Share warrants issued
     during period                  -            -      590,480
    Expenses of issue               -            -     (696,676)
                               28,799            -      136,188
    Loss for the period      (343,234)           -     (343,234)
    Foreign exchange
     differences                    -       30,913       30,913
                           -----------  -----------  -----------
    Balance at
     31 December 2007        (484,036)      30,082    7,909,170
                           -----------  -----------  -----------
                           -----------  -----------  -----------



    From 1 January 2008 to 30 June 2008

                               Issued        Share     Warrants       Merger
                              capital      premium      reserve      reserve
                           (pnds stlg)  (pnds stlg)               (pnds stlg)

    Balance at 1 January
     2008                   6,879,789    3,620,082      590,480   (2,727,227)
    Loss for period                 -            -            -            -
    Share-based payments            -            -            -            -
    Foreign exchange
     differences                    -            -            -            -
                           -----------  -----------  -----------  -----------
    Balance at
     31 June 2008           6,879,789    3,620,082      590,480   (2,727,227)
                           -----------  -----------  -----------  -----------
                           -----------  -----------  -----------  -----------


                          Accumulated  Translation
                               losses      reserve        Total
                           (pnds stlg)  (pnds stlg)  (pnds stlg)

    Balance at 1 January
     2008                    (484,036)      30,082    7,909,170
    Loss for period        (2,666,426)           -   (2,666,426)
    Share-based payments       19,292            -       19,292
    Foreign exchange
     differences                    -      134,747      134,747
                           -----------  -----------  -----------
    Balance at
     31 June 2008          (3,131,170)     164,829    5,396,783
                           -----------  -----------  -----------
                           -----------  -----------  -----------
    





For further information:

For further information: Cristiano Veloso, President & Chief Executive
Officer, Tel: +44 (0) 20 8133 7607, Fax: +44(0)20 7405 7773, Email:
cv@amazonplc.com OR Jed Richardson, VP Corporate Development, Tel: (416)
866-2966, Fax: (416) 867-9393, Email: jed@amazonplc.com, www.amazonplc.com

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