Campbell Resources announces fiscal 2007 financial results - Achievements in 2007 establish solid base for growth



    MONTREAL, March 27 /CNW Telbec/ - Campbell Resources Inc. (the "Company")
("Campbell") (TSX: CCH, OTC Bulletin Board:   CBLRF) today announced financial
results for the year ended December 31, 2007. During and subsequent to the
period, the Company realized a number of significant achievements, including:

    
    Corporate

    - Executed, along with subsidiaries GéoNova and MSV Resources Inc.
      ("MSV"), its obligations pursuant to the Plans of Arrangement with
      creditors and exited from protection under the Companies' Creditors
      Arrangement Act ("CCAA"). An extension of CCAA protection was granted
      by the Court for subsidiary Meston Resources.
    - Sold the Eastmain Mine property for $4.1 million pursuant to the
      Company's obligations under the Plan of Arrangement.
    - Sold the Chevrier property for $1.5 million.
    - Raised $16.1 million in convertible debt and equity, including:
        - $7.0 million in flow-through shares and $4.0 million in guaranteed
          convertible debentures to complete development of the high-grade
          Corner Bay copper deposit;
        - $3.0 million in flow-through shares for its exploration program;
        - $2.1 million in convertible demand debenture, pursuant to MSV's
          obligations under the Plan of Arrangement.

    Mining and Development

    - Awarded the contract for Corner Bay development to CMAC-Thyssen, who
      began mine development in May.
    - Began development and shipment of Corner Bay ore to the Copper Rand
      Mill in early March 2008.
    - Implemented the Alimak mining system to increase ore production and
      improve ground conditions at the Copper Rand Mine.
    - Increased throughput at the Copper Rand Mill by 69% over 2006 to
      261,650 tons of ore.
    - Received the final permits from the Quebec Ministry of Environment to
      allow mining of the Merrill Pit in line with the Company's strategy of
      developing satellite deposits to provide additional feed for the Copper
      Rand Mill.
    - Began production at the Merrill Pit in October 2007.
    - Placed the Joe Mann Mine on care and maintenance in September 2007 and
      in discussions as to its potential sale.
    - Increased total metal production over 2006 as follows: copper by 34%,
      silver by 18%.
    - Commissioned the paste backfill plant and completed the back filling of
      mined-out areas to stabilize ground conditions at the Copper Rand Mine.

    "Fiscal 2007 was a very important year for Campbell, during which we
implemented a number of changes in our operations and brought new assets on
stream, all of which created a solid base for future growth," said André
Fortier, Campbell's President and Chief Executive Officer. "As we enter 2008,
Campbell now has three operations in production, in line with our strategy to
increase throughput at the Copper Rand mill, which is now operating on a five
day per week schedule. We have increased the number of producing faces at the
Copper Rand Mine from one to three, with more to come in 2008 and 2009; we are
ramping up production of higher grade ore at Corner Bay and expect to reach
the main ore zone in the second quarter; and the Merrill Pit has performed
well, with higher grade areas targeted for production this year. These
positive developments point toward substantially higher production levels,
more competitive costs per ton and significantly improved financial
performance in 2008."

    Operating Performance

    Copper Rand Mine

    Ore production at the Copper Rand Mine increased by 69% during 2007 to
129,161 tons grading 1.69% copper, 0.046 oz/t gold and 0.144 oz/t silver. This
compares with 76,250 tons of ore produced in 2006, grading 2.19% copper,
0.058 oz/t gold and 0.168 oz/t silver. The increase in tonnage mined during
2007 resulted primarily from the implementation of the Alimak mining system
during the year which allowed multiple mining faces to be in production
simultaneously, the deployment of additional crews to develop and mine those
additional faces, and improved access resulting from development of a new
ramp.
    As a result, copper, gold and silver production increased during 2007,
rising to 4,218,709 pounds of copper, 4,796 ounces of gold and 11,364 ounces
of silver, compared with 3,275,246 pounds of copper, 3,716 ounces of gold and
8,822 ounces of silver in 2006.

    Joe Mann Mine

    The Joe Mann Mine mined out the developed material and ceased operations
in September 2007. A total of 67,292 tons of ore were mined, producing
281,361 pounds of copper, 10,092 ounces of gold and 6,196 ounces of silver.
The mine was in full production throughout 2006 when 80,639 tons of ore were
mined, producing 439,778 pounds of copper, 14,146 ounces of gold and 9,322
ounces of silver.

    Merrill Pit

    The Merrill Pit contributed a total of 65,197 tons of ore grading 0.39%
copper, 0.010 oz/ton gold and 0.096 oz/ton silver during the fourth quarter of
2007. Recoveries for the year were 91.44% for copper, 69.34% for gold and
61.20% for silver.

    Financial Results

    The Copper Rand Mine began commercial production on January 1, 2007. Prior
to that date, net metal sales from Copper Rand were applied against
development costs. Production at the Joe Mann Mine ceased in September, 2007.
In 2006, Joe Mann was the Company's only mine that had achieved commercial
production. Mining at the Merrill Pit began in October, 2007.
    For 2007, Campbell recorded a net loss of $19.0 million, or $0.05 per
share, compared with a net loss of $41.2 million, or $0.27 per share in 2006.
The net loss in 2006 included a write-down of the carrying value of the Copper
Rand Mine by $23.7 million and the write-down of the Joe Mann Mine to
$1.3 million. No project write-downs were taken in 2007.

    Gross metal sales totalled $26.8 million in 2007 compared to $11.9 million
in 2006 ($15.9 million of gross metal sales of Copper Rand were applied
against development costs in 2006). The net decrease of $1.0 million is
primarily due to:

    - The 17% reduction in ore tonnage combined with a 13% reduction in gold
      grade from 0.207 oz/t in 2006 to 0.181 oz/t at Joe Mann in 2007.
    - A 23% reduction in average copper grade at Copper Rand from 2.19% in
      2006 to 1.69% in 2007.
    - A decrease in the average selling price per pound of copper, from
      $3.72 ($3.29 US) in 2006 to $3.35 ($3.37 US) in 2007.
    - The strength of the Canadian dollar vis-à-vis the US dollar had a major
      impact on revenue.

    In 2007, production costs increased by $24.4 million to $38.3 million, up
$13.9 million from 2006. The bulk of the increase is due to the fact that
$16.0 million in production costs at Copper Rand were capitalized during 2006
as the mine had not yet achieved commercial production. The remaining
$8.4 million is primarily due to the following activities at Copper Rand: the
implementation of the Alimak mining system, additional development undertaken
to access additional mining zones, commissioning of the backfill plant and
backfilling of all mined open stopes, increased maintenance expenses,
re-initiation of a definition drilling program, and rehabilitation costs
incurred following a rock fall in the main ramp at the end of February, 2007.

    Outlook

    Copper Rand Mine

    The Company continues to make good progress at the Copper Rand Mine. The
introduction of the Alimak mining method as well as other initiatives to
diversify the sources of ore at the mine have resulted in a constant increase
in production output in recent months. In the second half of 2007, output
reached 82,462 tons, compared to 76,250 tons for all of 2006 and 46,699 tons
in the first half of 2007. Total production for the first two months of 2008
has already reached 33,000 tons with the addition of two new production areas,
which brings the total number of production areas to three. A fourth zone
should be in production in the second quarter of 2008 with two new zones
available for the end of 2008 and in the first half of 2009. The Company
should be able to maintain increased production in the coming months.

    Corner Bay

    In February, 2008, the Company announced that it had successfully
mitigated groundwater inflow at Corner Bay, and that shipments to the Copper
Rand Mill of development ore from the 55 and 75 metre levels had begun.
Underground services had also been completed, including the escapeway and vent
raise. Development to the 100 metre level continues to progress well, and
mining of the initial 42,000 tonne bulk sample with an average grade of 3.7%
copper is expected to begin in the second quarter.
    At a 3% Cu cut-off, Corner Bay has measured and indicated resources of
446,000 tonnes averaging 5.58% Cu (181,000 @ 5.07% Cu measured and
265,000 @ 5.93% Cu indicated); inferred resources total 1,441,000 tonnes
averaging 6.76% Cu.

    Merrill Pit

    Production at the Merrill Pit began in the fourth quarter of 2007. To
date, 108,920 tons of ore, grading an average of 0.39% copper and 0.009 ounces
of gold per ton, have been milled. A stockpile of 65,000 tons of ore has
already been blasted and is available at the Pit. Production should continue
throughout 2008 while targeting zones to increase milled grades to 0.50%
copper.
    In addition, the Company continues to evaluate opportunities to acquire
and bring into production additional assets in the prolific Chibougamau mining
camp to further its plan of maximizing throughput at the Copper Rand Mill.

    About Campbell Resources Limited

    Campbell Resources Limited is a mining company focusing mainly in the
Chibougamau region of Québec, holding interests in gold and gold-copper
exploration and mining properties. The Company's shares trade on the Toronto
Stock Exchange under the ticker symbol CCH.

    Certain information contained in this release contains "Forward-Looking
Statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and is subject to certain risks and uncertainties, including those
"Risk Factors" set forth in the Campbell's current Annual Report on Form 20F
for the year ended December 31, 2006. Such factors include, but are not
limited to: differences between estimated and actual mineral reserves and
resources; changes to exploration, development and mining plans due to prudent
reaction of management to ongoing exploration results, engineering and
financial concerns; and fluctuations in the gold price which affect the
profitability and mineral reserves and resources of Campbell. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. Campbell undertakes no obligation to
release publicly any revisions to these forward-looking statements to reflect
events or circumstances after the date hereof or to reflect unanticipated
events or developments.


    Consolidated statements of operations
    years ended December 31
    (expressed in thousands of Canadian dollars except per share amounts)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                          2007          2006          2005
    -------------------------------------------------------------------------
                                             $             $             $

    Gross metal sales                   26,792        11,925        19,915

    Treatment charges                    3,749         1,006         1,641
    -------------------------------------------------------------------------
    Net metal sales                     23,043        10,919        18,274
    -------------------------------------------------------------------------

    Expenses
      Operating                         38,260        13,897        16,346
      Amortization of property,
       plant and equipment               3,042         2,743         4,675
      Write-down of properties               -        25,001        18,512
      General administration             3,473         2,945         2,716
      Stock-based compensation expense     336           496             -
      CCAA and reorganization costs        779         6,511           972
      Exploration                            -          (159)          854
      Care and maintenance                 175           146           345
    -------------------------------------------------------------------------
                                        46,065        51,580        44,420
    -------------------------------------------------------------------------
    Loss before the following items     23,022        40,661        26,146

    Interest on short-term loan            312           501           392
    Interest and financial
     expenses on long-term debt          1,770           692           770
    Interest income                       (151)         (173)         (900)
    Amortization of deferred
     charges related to the sale
     of the royalty                          -             -         1,851
    -------------------------------------------------------------------------
    Loss from operations                24,953        41,681        28,259
    -------------------------------------------------------------------------
    Other (income) expense
      Foreign exchange (gain) loss      (1,217)           31          (334)
      Other income                      (4,748)         (552)       (3,577)
    -------------------------------------------------------------------------
                                        (5,965)         (521)       (3,911)
    -------------------------------------------------------------------------
    Loss before taxes                   18,988        41,160        24,348

    Income and mining tax expense            -            35            82
    -------------------------------------------------------------------------
    Net loss                            18,988        41,195        24,430
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average number
     of common shares (000)            394,131       150,562       107,925
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and fully diluted loss
     per share                            0.05          0.27          0.23
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated statements of comprehensive loss, contributed surplus and
    deficit
    years ended December 31
    (expressed in thousands of Canadian dollars)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                          2007          2006          2005
    -------------------------------------------------------------------------
                                             $             $             $

    Comprehensive loss

    Net loss                            18,988        41,195        24,430

    Other comprehensive loss,
     net of tax:

      Unrealized losses on
       available-for-sale investments
       arising during the period           199             -             -
      Reclassification adjustment
       for gains and losses
       included in net income             (190)            -             -
    -------------------------------------------------------------------------

    Other comprehensive loss                 9             -             -
    -------------------------------------------------------------------------
    Comprehensive loss                  18,997        41,195        24,430
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Contributed surplus

    Balance, beginning of year           1,996         1,404         1,101
    Warrants and options expired
     and cancelled during the year       2,113           132           303
    Conversion rights expired                -           460             -
    -------------------------------------------------------------------------
    Balance, end of year                 4,109         1,996         1,404
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Deficit

    Balance, beginning of year,
     as previously reported             84,825        43,630        19,200
    Financial instruments -
     Recognition and measurement           227             -             -
    -------------------------------------------------------------------------
    Restated balance,
     beginning of year                  85,052        43,630        19,200

    Net loss                            18,988        41,195        24,430
    -------------------------------------------------------------------------
    Balance, end of year               104,040        84,825        43,630
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated balance sheets
    as at December 31
    (expressed in thousands of Canadian dollars)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                        2007          2006
    -------------------------------------------------------------------------
                                                           $             $

    Assets

    Current assets
      Cash                                               474         1,964
      Restricted cash                                  1,113         2,784
      Short-term investments                              33           792
      Restricted deposits and
       exchange agreements                                 -        50,000
      Receivables                                      3,066         1,591
      Settlements receivable                             739         5,413
      Production inventories                           1,218           401
      Supply inventories                               2,882         3,844
      Prepaids                                           408         1,194
    -------------------------------------------------------------------------
                                                       9,933        67,983
    Amount receivable from
     Copper Rand/Portage
     Restoration Fiduciary Trust                       3,028         2,826
    Restricted cash                                    1,158         1,158
    Future income tax assets                           1,317         1,484
    Property, plant and equipment                     45,017        37,135
    Accrued benefit asset                              4,897         4,427
    Deferred charges and other assets                      -           129
    -------------------------------------------------------------------------
                                                      65,350       115,142
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities

    Current liabilities
      Short-term loans                                 1,996         3,891
      Accounts payable                                15,411        13,973
      Accrued liabilities                              5,954         5,475
      Prepayments for concentrate
       inventory shipped                                 965             -
      Current portion of
       long-term debt                                 18,337        65,287
    -------------------------------------------------------------------------
                                                      42,663        88,626

    Asset retirement obligations                       7,396         7,804
    Long-term debt                                     2,688            70
    Future income and mining tax liabilities           6,472         6,636
    -------------------------------------------------------------------------
                                                      59,219       103,136
    -------------------------------------------------------------------------

    Shareholders' equity

      Capital stock                                   96,639        85,572
      Warrants, stock options and
       conversion rights                               9,432         9,263
      Contributed surplus                              4,109         1,996

      Deficit                                       (104,040)      (84,825)
        Accumulated other comprehensive loss              (9)            -
    -------------------------------------------------------------------------
                                                    (104,049)      (84,825)
    -------------------------------------------------------------------------
                                                       6,131        12,006
    -------------------------------------------------------------------------
                                                      65,350       115,142
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated statements of cash flows
    years ended December 31
    (expressed in thousands of Canadian dollars)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                          2007          2006          2005
    -------------------------------------------------------------------------
                                             $             $             $

    Operating activities

      Net loss                         (18,988)      (41,195)      (24,430)
      Adjustments to reconcile
       net loss to net cash
       used for operating activities
        Amortization                     3,042         2,743         4,675
        Write-down of properties             -        25,001        18,512
        Deferred royalty amortization        -             -        (2,860)
        Gain on sale of property,
         plant and equipment            (4,714)           (1)           (4)
        Gain on repurchase of royalty        -             -        (1,571)
        Loss (gain) on sale of
         short-term investments            384          (262)            -
        Asset retirement accretion
         expense, net of the share
         assumed by the Restoration
         Fiduciary Trust                   489           252           258
        Amortization of deferred
         charges and other assets          129           442         2,248
        Amortization of conversion
         right on long-term debt             -           191           202
        Accretion of long-term debt        491             -             -
        Stock-based compensation expense   336           496             -
        Deferred interest accrued on
         long-term debt                  1,089            53            51
        Excess of amount paid over
         pension plan costs                (49)          (42)         (354)
        Share purchase plan                  -             -            12
        Shares and warrants issued for
         payment of services               295         4,476             -
        Other                             (102)         (196)          (23)
      Changes in non-cash operating
        working capital items           12,593         2,263         2,536
    -------------------------------------------------------------------------
        Cash used for operating
         activities                     (5,005)       (5,779)         (748)
    -------------------------------------------------------------------------

    Financing activities

      (Decrease) increase in
       short-term loan                  (1,896)       (2,715)        3,920
      Increase (decrease) in
       long-term debt                    6,582        (3 944)           (8)
      Issuance of capital stock         11,279        16,435            25
      Future mining taxes                    3         1,748            51
      Share issue costs                   (752)       (1,478)           (3)
      Warrants issued as part of
       placements                            -         2,262             -
    -------------------------------------------------------------------------
      Cash provided by financing
       activities                       15,216        12,308         3,985
    -------------------------------------------------------------------------

    Investing activities

      Restricted cash                   (4,810)       (2,784)            -
      Acquisition of short-term
       investments                         (20)          (12)            -
      Investment in shares                   -           515             -
      Increase in property, plant
       and equipment                   (13,226)       (4,674)       (2,696)
      Proceeds on sale of short-term
       investments                       1,985           363             -
      Proceeds on sale of property,
       plant and equipment               4,370           515            40
      Amount paid in excess of the
       pension plan costs capitalized
       to property, plant and equipment      -          (260)            -
    -------------------------------------------------------------------------
    Cash used in investing activities  (11,701)       (6,337)       (2,656)
    -------------------------------------------------------------------------
    (Decrease) increase in cash         (1,490)          192           581
    Cash, beginning of year              1,964         1,772         1,191
    -------------------------------------------------------------------------
    Cash, end of year                      474         1,964         1,772
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    
    %SEDAR: 00001579EF




For further information:

For further information: Campbell Resources Inc. André Fortier,
President and Chief Executive Officer, (514) 875-9037, Fax: (514) 875-9764,
afortier@campbellresources.com; Renmark Financial Communications Inc.: Henri
Perron, hperron@renmarkfinancial.com; Julien Ouimet, (514) 939-3989, Fax:
(514) 939-3717, jouimet@renmarkfinancial.com; www.renmarkfinancial.com

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CAMPBELL RESOURCES INC.

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