Blue Pearl Reports Cash Flow From Operating Activities of US$75.4 Million in 2006



    TORONTO, Mar 26 /CNW/ - Blue Pearl Mining Ltd.
(TSX:BLE)(TSX:BLE.WT.A)(FRANKFURT:A6R) Highlights of 2006 reflecting
acquisition of Thompson Creek Metals Company (TCMC) (all in U.S. dollars):

    
    -   Revenues for the fourth quarter and full year 2006 totaled
        $150.8 million -- all occurring from sales mainly of molybdenum in
        the 67 days following the acquisition -- amounting to approximately
        $2.25 million per day in the period October 26 to December 31, 2006.

    -   Cash flow from operating activities, mostly in the post-acquisition
        period, totaled $75.4 million.

    -   Company ended 2006 with cash balances of $98.1 million after paying,
        subsequent to closing, $61.5 million owed to the TCMC vendors
        relating to accounts receivable as provided for in the TCMC
        acquisition agreement. The Company's cash balances as of March 22,
        2007 were approximately $135 million after also paying $64.3 million,
        including a prepayment premium, to discharge the Second Lien Credit
        Facility on March 15, 2007.

    -   Molybdenum production costs for output from the Thompson Creek and
        Endako mines averaged $6.28 per pound while realized prices on
        molybdenum sales averaged $25.74 per pound.

    -   Net loss of $20.6 million in 2006 includes $68.9 million of inventory
        purchase price adjustment included in operating expenses and a
        non-cash charge of $14.5 million for stock options compensation.

    -   Conference call and webcast for analysts and investors scheduled for
        March 27, at 10:00 a.m. Eastern
    

    Blue Pearl Mining Ltd., the world's largest publicly traded, pure
molybdenum producer, today announced financial results for the year ended
December 31, 2006 prepared in accordance with Canadian generally accepted
accounting principles. All dollar amounts are in U.S. dollars unless otherwise
indicated.
    Blue Pearl's revenues totaled $150.8 million in 2006, derived mainly from
the sale of molybdenum products subsequent to the Company's acquisition on
October 26, 2006 of Thompson Creek Metals Company (TCMC). No revenues were
earned by Blue Pearl in 2005 as it was in the development stage.
    Operating expenses in 2006, which were incurred by TCMC during the period
October 26 to December 31, 2006, totaled $145.1 million. Included in operating
expenses was an acquisition expense of $68.9 million related to the inventory
portion of the TCMC purchase price adjustment. TCMC held 7.8 million pounds of
molybdenum in inventory on the acquisition date and this inventory was deemed
to be purchased by Blue Pearl, for accounting purposes, at fair value,
resulting in an uplift of inventory costs of $98.5 million over the original
book value. Of this, $68.9 million was charged to operating expenses in 2006
and the remaining $29.6 million is expected to be charged to operating
expenses in the first quarter of 2007 as the related inventory is sold. Blue
Pearl had no operating expenses in 2005.
    Among the Company's other 2006 expenses was a non-cash charge of $14.5
million for stock-based compensation as a result of options being granted to
110 members of management, senior operations personnel, directors and other
staff. Stock-based compensation in 2005 was $0.4 million.
    General and administrative expenses totaled $4.6 million in 2006,
compared with $1.5 million in 2005. Exploration and development expenses,
which were mainly related to the Davidson Project, were $8.6 million in 2006
versus $2.3 million a year earlier.
    Net loss for 2006 was $20.6 million or $0.36 per basic and diluted share,
compared with a net loss for 2005 of $4.1 million or $0.13 per basic and
diluted share. The per share figures are based on a weighted-average number of
shares outstanding of 57,688,000 in 2006 and 31,879,000 in 2005. As of
December 31, 2006, there were 100,528,000 shares outstanding.
    Cash generated by operating activities totaled $75.4 million in 2006,
compared with cash used of $2.7 million in 2005.
    Cash balances were $98.1 million as at December 31, 2006 versus
$6.9 million a year earlier.
    During 2006, mainly to finance the TCMC acquisition, the Company raised
$233.7 million from equity issues and incurred $401.9 million in long-term
debt. In 2005, $9.8 million was raised from equity issues.
    Total assets at the end of 2006 were $935.7 million, up from $8.4 million
a year earlier.
    Revenues in the fourth quarter of 2006 were $150.8 million. There were no
revenues in the fourth quarter of 2005. Net loss was $12.4 million or $0.14
per basic and diluted share in the fourth quarter of 2006, compared with $2.5
million or $0.06 per basic and diluted share in the corresponding period of
2005.
    In 2006, the Company, following the TCMC acquisition, produced 3.84
million pounds of molybdenum at an average production cost of $6.28 per pound.
The Company's U.S. operations produced 2.47 million pounds at an average cost
of $5.83 per pound while the Canadian operations produced 1.37 million pounds
at an average cost of $7.30 per pound. The amounts produced reflect molybdenum
produced at the Thompson Creek and Endako mines but do not include molybdenum
purchased from third parties, roasted and sold by the Company. The average
costs reflect production costs, including roasting costs, for molybdenum from
the Thompson Creek and Endako mines only.

    Outlook

    The price of molybdenum, which averaged $4.50 per pound between 1994 and
2004, peaked at $40 per pound in June 2005 and has since moderated somewhat.
In 2006, the average price of molybdenum remained historically strong at
approximately $25 per pound. The expected trends in supply and demand for
molybdenum suggest a positive near-term outlook for the price. Barring a world
recession, demand for molybdenum is expected to continue to grow. In the
absence of new supply coming from China and given numerous constraints on
overall production growth outside of China, the price of molybdenum is
expected to remain relatively strong in the near future.
    As previously announced, the Company is expecting to produce 21 million
pounds of molybdenum in 2007 and 27 million pounds in 2008 from its existing
Thompson Creek and Endako mines. This production profile and the anticipated
strong sales prices are expected to produce strong cash flow for the Company
and to allow the Company to meet its cash requirements for operations, capital
expenditures, debt payments and any contingent payment accruing during 2007.
    One of the Company's goals is to reduce its long-term debt. As previously
announced, the Company prepaid in full its $61.9 million Second Lien Credit
Facility plus a prepayment premium of $2.5 million on March 15, 2007. The
remaining bank debt of approximately $340 million (First Lien Credit
Facility), on which the Company is required to pay principal of $18.75 million
per quarter in 2007, can be prepaid without penalty and if molybdenum prices
remain sufficiently strong then debt payments will be made above the scheduled
minimum amounts. The Company's cash balances on March 22, 2007 were
approximately $135 million. As of the end of March 2007, after the regular
quarterly payment on the First Lien is made at month-end, Blue Pearl's bank
debt is expected to be less than $320 million.
    Both the Thompson Creek and Endako Mines are developing new plans based
on a reevaluation of mineral resources and reserves assuming a long-term
molybdenum price of $10 per pound and updated costs. Previous mine plans had
assumed a long-term price of $5 per pound at Thompson Creek and $3.50 per
pound at Endako. The new plans are expected to increase reserves and mine life
at both operations when they are completed in 2007.
    The Davidson Deposit, which is Canada's largest undeveloped molybdenum
deposit, is important to the Company's future as it represents an opportunity
for organic growth at low capital cost. The deposit's high-grade core is
easily accessible with minimal impact to the environment. A feasibility study
including a new mineral reserve estimate is currently underway and is expected
to be completed during the second quarter of 2007.
    Additional information on the Company's financial position is available
in Blue Pearl's 2006 Financial Statements and Management's Discussion and
Analysis, which will be filed with SEDAR (www.sedar.com) and posted on the
Company's website (www.bluepearl.ca).

    Conference call and webcast

    Blue Pearl will hold a conference call for analysts and investors to
discuss its 2006 financial results on March 27, 2007 at 10 a.m. (Eastern).
    Ian McDonald, Executive Chairman, Kevin Loughrey, President and Chief
Executive Officer, and Derek Price, Chief Financial Officer, will be available
to answer questions during the call.
    To participate in the call, please dial 416-695-6623 or 1-877-323-2090
about five minutes prior to the start of the call.
    A live audio webcast of the conference call will be available at
www.ccnmatthews.com and www.bluepearl.ca.
    An archived recording of the call will be available at 416-695-5275 or
1-888-509-0081 (Passcode 641830) from 12:00 p.m. on March 27 to 11:59 p.m. on
April 3. An archived recording of the webcast will also be available at Blue
Pearl's website.

    About Blue Pearl Mining Ltd.

    Blue Pearl is the world's fifth-largest molybdenum producer. In October
2006, the Company purchased the Thompson Creek open-pit molybdenum mine and
mill in Idaho, a 75% share of the Endako open-pit mine, mill and roasting
facility in northern British Columbia, and a metallurgical roasting facility
in Langeloth, Pennsylvania. Blue Pearl is also developing the Davidson
high-grade underground molybdenum project near Smithers, B.C. The Company has
more than 700 employees. Its head office is in Toronto, Ontario. It also has
executive offices in Vancouver, British Columbia and Denver, Colorado
(including sales and marketing). More information is available at
www.bluepearl.ca.

    Cautionary Note Regarding Forward-Looking Statements

    This news release contains "forward-looking information" which may
include, but is not limited to, statements with respect to the future
financial or operating performance of Blue Pearl, its subsidiaries and its
projects, the future price of molybdenum, the estimation of mineral reserves
and resources, the realization of mineral reserve estimates, the timing and
amount of estimated future production, costs of production, capital, operating
and exploration expenditures, costs and timing of the development of new
deposits, costs and timing of future exploration, requirements for additional
capital, government regulation of mining operations, environmental risks,
reclamation expenses, title disputes or claims and limitations of insurance
coverage. Often, but not always, forward-looking statements can be identified
by the use of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes"
or variations (including negative variations) of such words and phrases, or
state that certain actions, events 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 Blue Pearl and/or its subsidiaries to be materially different
from any future results, performance or achievements expressed or implied by
the forward-looking statements. Such factors include, among others, general
business, economic, competitive, political and social uncertainties; the
anticipated benefits of the acquisition not occurring in the expected time
frame or at all; the actual results of current exploration activities; actual
results of reclamation activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; future prices
of molybdenum; possible variations of ore grade or recovery rates; failure of
plant, equipment or processes to operate as anticipated; accidents, labour
disputes and other risks of the mining industry; political instability,
insurrection or war; delays in obtaining governmental approvals or financing
or in the completion of development or construction activities, as well as
those factors discussed in the section entitled "Risk Factors" in Blue Pearl's
short form prospectus dated October 13, 2006 which is available on SEDAR at
www.sedar.com. Although Blue Pearl has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that
cause actions, events or results to differ from those anticipated, estimated
or intended. Forward-looking statements contained herein are made as of the
date of this news release and Blue Pearl disclaims any obligation to update
any forward-looking statements, whether as a result of new information, future
events or results or otherwise. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Blue Pearl
undertakes no obligation to update forward-looking statements if circumstances
or management's estimates or opinions should change. Accordingly, the reader
is cautioned not to place undue reliance on forward-looking statements.

    
    The following are the Company's consolidated financial statements,
excluding notes, for 2006 and 2005.

     Consolidated Balance Sheets December 31, 2006 and 2005 (US dollars in
    thousands)

                                                          2006          2005


    Assets


    Current assets
     Cash and cash equivalents                      $   98,059     $   6,915
     Accounts receivable                                84,476           272
     Product inventory                                 131,269             -
     Material and supplies inventory                    25,498             -
     Prepaid expenses                                    3,015            20
     Income taxes recoverable                            1,195             -
     Future income and mining taxes                        468             -
                                                   ------------    ----------
                                                       343,980         7,207
     Property, plant and equipment                     480,187         1,159
     Reclamation deposits                               23,005             -
     Restricted cash                                     8,081            31
     Deferred finance fees                              13,267             -
     Future income and mining taxes                     20,902             -
     Goodwill                                           46,322             -
                                                   ------------    ----------


                                                    $  935,744      $  8,397
                                                   ------------    ----------
                                                   ------------    ----------


    Liabilities


    Current liabilities
     Accounts payable and accrued liabilities       $   38,794      $  1,348
     Income taxes payable                               30,602             -
     Current portion of long-term debt                  77,284             -
     Future income and mining taxes                     17,237             -
                                                   ------------    ----------
                                                       163,917         1,348


    Long-term debt                                     333,789             -
    Asset retirement obligations                        25,992           193
    Sales contract liability                            11,421             -
    Severance and retention                              8,008             -
    Future income and mining taxes                     168,566             -
                                                   ------------    ----------


                                                       711,693         1,541
                                                   ------------    ----------


    Shareholders' Equity


    Common shares                                      210,857        11,867
    Warrants                                            35,445           646
    Contributed surplus                                 14,953           422
    Deficit                                            (27,579)       (6,936)
    Foreign currency translation adjustment             (9,625)          857
                                                   ------------    ----------


                                                       224,051         6,856
                                                   ------------    ----------


                                                    $  935,744      $  8,397
                                                   ------------    ----------
                                                   ------------    ----------





    Consolidated Statements of Loss
    December 31, 2006 and 2005
    (US dollars and share amounts in thousands,
     except per share amounts)

                                                          2006          2005


    Revenues
     Molybdenum sales                               $  147,676      $      -
     Tolling and calcining                               3,167             -
                                                   ------------    ----------
                                                       150,843             -
                                                   ------------    ----------


    Cost of sales
     Operating expenses                                139,115             -
     Selling and marketing                               1,239             -
     Depreciation and depletion                          4,718             -
     Accretion                                              27             -
                                                   ------------    ----------
                                                       145,099             -
                                                   ------------    ----------


    Income from mining operations                        5,744             -


    Other (income) expenses
     General and administrative                          4,568         1,470
     Exploration and development                         8,635         2,313
     Interest and finance fees                           9,139             -
     Stock-based compensation                           14,547           434
     Interest income                                    (1,183)         (139)
     Other                                              (1,047)           35
                                                   ------------    ----------


                                                        34,659         4,113
                                                   ------------    ----------


    Loss before income taxes                           (28,915)       (4,113)


    Income and mining taxes (recoverable)
     Current                                            23,133             -
     Future                                            (31,405)            -
                                                   ------------    ----------


                                                        (8,272)            -
                                                   ------------    ----------


    Net loss                                        $  (20,643)     $ (4,113)
                                                   ------------    ----------
                                                   ------------    ----------


    Loss per share - basic and diluted              $    (0.36)     $  (0.13)
                                                   ------------    ----------
                                                   ------------    ----------


    Weighted-average number of shares outstanding       57,688        31,879
                                                   ------------    ----------
                                                   ------------    ----------



    Consolidated Statements of Deficit
    December 31, 2006 and 2005
    (US dollars in thousands)


                                                          2006          2005


    Balance, beginning of year                      $   (6,936)     $ (2,823)
    Net loss                                           (20,643)       (4,113)
                                                   ------------    ----------
    Balance, end of year                            $  (27,579)     $ (6,936)
                                                   ------------    ----------
                                                   ------------    ----------


    Consolidated Statements of Cash Flows
    December 31, 2006 and 2005
    (US dollars in thousands)


                                                          2006          2005


    Operating Activities


    Net loss                                        $  (20,643)     $ (4,113)
    Items not affecting cash:
     Depreciation and depletion                          4,718             -
     Accretion                                              27             -
     Amortization of finance fees                          406             -
     Stock-based compensation                           14,547           434
     Future income and mining taxes                    (31,405)            -
     Unrealized derivative losses                          660             -
     Gain on sale of marketable securities                   -            (2)
    Change in non-cash working capital                 107,134           958
                                                   ------------    ----------
        Cash generated by (used in) operating
         activities                                     75,444        (2,723)
                                                   ------------    ----------


    Investing Activities


    Property, plant and equipment                       (4,514)            -
    Acquisitions, net of cash acquired                (600,428)         (874)
    Restricted cash                                       (138)            -
    Proceeds from disposition of marketable
     securities                                              -            11
    Reclamation deposit                                   (235)          (31)
                                                   ------------    ----------
        Cash used in investing activities             (605,315)         (894)
                                                   ------------    ----------


    Financing Activities


    Equity issues                                      233,701         9,822
    Long-term debt                                     401,855             -
    Finance fees                                       (13,673)            -
    Repayments of long-term debt                          (367)            -
                                                   ------------    ----------


        Cash generated by financing activities         621,516         9,822
                                                   ------------    ----------

    Effect of exchange rate changes on cash               (501)            -
                                                   ------------    ----------

    Increase in cash and cash equivalents               91,144         6,205


    Cash and cash equivalents, beginning of year         6,915           710
                                                   ------------    ----------

    Cash and cash equivalents, end of year          $   98,059      $  6,915
                                                   ------------    ----------
                                                   ------------    ----------

    Shares outstanding: 108,019,658
    





For further information:

For further information: Blue Pearl Mining Ltd., Ian McDonald, Executive
Chairman, (416) 860-1438, Email: info@bluepearl.ca, or Blue Pearl Mining Ltd.,
Wayne Cheveldayoff, Director, Investor Relations, (416) 860-1438 or Toll Free:
1-800-827-0992, Email: wcheveldayoff@bluepearl.ca, Website: www.bluepearl.ca,
or Renmark Financial Communications Inc., Christina Lalli, (514) 939-3989,
Email: clalli@renmarkfinancial.com

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Thompson Creek Metals Company Inc.

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