Campbell Resources Announces Its Fourth Quarter and Annual Results for 2006



    MONTREAL, March 15 /CNW Telbec/ - Campbell Resources Inc. (TSX: CCH, OTC
Bulletin Board: CBLRF) today announced financial and operating results for the
fiscal year and fourth quarter ended December 31, 2006. During the year, the
Company took significant steps toward exiting CCAA, a goal that was partially
achieved subsequent to year end. Other achievements during the year that
positioned the Company to take advantage of strong copper and gold markets
included:

    
    - Received approval of creditors for the Plans of Arrangement.
    - Campbell and GeoNova exited CCAA protection subsequent to year end.
    - Working capital increased by $26.2 million on a proforma basis.
    - Completed three equity financings totaling $18.1 million.
    - Repaid $4.0 million of secured debt.
    - Sold the Discovery property to Strateco Resources Inc.
    - Retained Geostat Systems International Inc. ("Geostat") to complete a
      43-101 compliant technical report (Ref. SEDAR) on the high-grade Corner
      Bay deposit which estimates measured and indicated resources at
      542,000 tons grading 5.03% Cu.
    - Positive Geostat technical report recommends proceeding with the
      extraction of a 42,000 tonne bulk sample grading 3.7% copper at Corner
      Bay.
    - Collared the portal and began installation of infrastructure for
      development of Corner Bay.
    - Entered into an Operating Consulting Agreement with Nuinsco Resources
      Limited for consulting services at the Campbell's Chibougamau
      operations.
    - Sold the Eastmain property for $2.5 million in cash, two million common
      shares, one million common share purchase warrants and a 2% net smelter
      royalty.
    - Identified the Merrill Island property for potential early copper
      production.
    - Applied for permits to begin operations at the Merrill Island open pit.

    FINANCIAL RESULTS
    -----------------

    The Company recorded a net loss of $32.2 million or $0.19 per share in the
fourth quarter of 2006, compared with a net loss of $21.3 million or $0.20 per
share in 2005. The net loss includes a write down of the carrying value of the
Copper Rand property by an amount of $23.7 million to an estimated fair value
of $30.0 million and a write down of the Joe Mann property by an amount of
$1.3 million to nil. For the year, the net loss was $41.2 million, or $0.27
per share, compared with $24.4 million, or $0.23 per share, in 2005. These
results do not include operations at the Copper Rand Mine, which continue to
be capitalized as preproduction development.
    In 2005, the Company wrote down the carrying values of the Discovery
property by $1.8 million following the acceptance, in 2006, of the offer to
purchase the property from Strateco Resources Inc. and the Copper Rand Mine by
$16.7 million based on a projection of the operation's future cash flow.
    Gross metal sales for the fourth quarter of 2006, comprised exclusively of
gold production from the Joe Mann mine, were $3.2 million compared with $4.2
million for the comparable period in 2005. The average market gold price for
the fourth quarter was $717 (US$622), compared with $581 (US$498) for the
fourth quarter of 2005.
    Gross metal sales for 2006 were $11.9 million (13,800 ounces of gold)
compared with $19.9 million (30,500 ounces of gold) for the previous year. The
average market gold price was $682 (US$601) for 2006 and $539 (US$449) for
2005.
    Mining expenses for the fourth quarter 2006 were $4.1 million, compared
with $4.0 million for the comparable period in 2005. The operating cost per
ounce in the fourth quarter of 2006 was US$922 compared with US$578 in the
previous year. Mining expenses for 2006 were $13.9 million compared to
$16.4 million for the previous year and the operating cost per ounce was
US$798 compared with US$442 in 2005.

    JOE MANN MINE
    -------------

    Joe Mann, originally scheduled to close in November 2005, continues to
operate without known reserves. Production in the fourth quarter was
3,722 ounces of gold and 77,580 pounds of copper compared with 5,577 ounces
and 192,258 pounds in the same period in 2005. Average gold content per ton
produced was 0.237 ounces of gold, compared with 0.256 ounces of gold,
realized for the same period in 2005. During the quarter, 18,269 tons of ore
were milled compared with 25,678 tons in 2005. The development of new blocks
of ore has been initiated on lower levels to support 2007 production estimated
at 20,000 ounces of gold.
    For 2006, production totalled 14,146 ounces of gold and 439,778 pounds of
copper, compared with 29,431 ounces of gold and 897,460 pounds of copper for
the same period in 2005. For the year, gold grade averaged 0.207 ounces per
ton compared with 0.254 ounces per ton in 2005.

    COPPER RAND MINE
    ----------------

    As the Copper Rand Mine is still under development and has not yet reached
commercial production, its results are not included in the Company's
consolidated financial results.
    Production for the fourth quarter was 15,393 tons grading 2.90% copper and
0.064 ounces of gold per ton for a total metal production of 874,761 pounds of
copper and 846 ounces of gold. For 2006, total production reached 76,250
tonnes for a production of 3,275,246 pounds of copper and 3,716 ounces of
gold.
    The completion of the paste backfill plant was accelerated and is
scheduled to be put in operation by the end of March 2007. To improve
productivity, a mobile equipment maintenance program was put in place to
increase the equipment availability and to reduce operating costs; the size of
development headings were reduced as part of ground control program; the
Alimak mining method was introduced and is on-going to reduce development in
waste rock and provide a more effective mining method. A mining firm,
specialized in Alimak mining, has been retained by Campbell to do this work.
    For the fourth quarter of 2006, the Company invested $3.9 million in
development of Copper Rand net of $2.9 million of revenue generated from the
mine. For the year 2006, $5.8 million was invested in this property net of the
net metal sales revenue of $12.1 million.

    COPPER RAND MILL
    ----------------

    Operations at the mill continued on a 4 days per week schedule and treated
ore from both the Copper Rand and Joe Mann mines. The Copper Rand Mill has
capacity to process additional ore from other deposits in the area.

    OUTLOOK
    -------

    Management has completed the assessment of the ground conditions at the
Copper Rand Mine and has initiated the development of a 1400-foot long ramp
between levels 4690 and 4510 to replace the existing ramp between the two
levels. The cost of the new ramp will be offset by a substantial reduction in
the amount of rehabilitation work required and will provide a more secure
working environment. This decision will limit production from the Copper Rand
Mine until June. Effective January 1, 2007, the Copper Rand Mine will be
treated as having reached commercial production. As a result, operating and
financial results will be included with Joe Mann operating and financial
results in future financial statements.
    As part of the ongoing strategy to maximize mill throughput, the Company
intends to initiate production from the Merrill Island open pit as soon as the
required environmental permit is obtained. The required permit is expected by
the end of March. Production from that operation will compensate in part for
the temporary loss of the Copper Rand production and represent a significant
contribution to the volume of ore milled as monthly tonnage should average
20,000 tonnes. The Merrill Island open pit contains historical measured
resources of 1.1 million tons grading 0.92% copper and inferred resources
0.905 million tons grading 0.53% copper. Other deposits in the area are being
assessed to provide additional ore for the Copper Rand Mill.
    Output at the Joe Mann Mine reflects the decreasing number of work places;
however the Company is implementing a first stage exploration program of 4,000
metres both at depth and within the mine to evaluate the potential to continue
production. Exploration will begin at the end of the second quarter.
    The Company expects to soon complete the financing to develop the
high-grade Corner Bay copper project. The Company has collared the ramp and
the required surface infrastructure has been established on site. Bids for the
development of the ramp have been received and work is expected to begin in
the second quarter leading to production within twelve months.
    The Company recently announced the closing of the sale of its Eastmain
Mine property to Eastmain Resources Inc. The $2,500,000 received has been
deposited with the Monitor for eventual distribution to creditors. The shares
and warrants included as part of the sale proceeds remain with the Company.
    Campbell and GeoNova have met all of the obligations pursuant to the Plans
of Arrangement with the creditors and have received a certificate to that
effect from the Monitor. Both MSV Resources and Meston Resources will require
more time to complete the agreed Plans of Arrangement with expected completion
during the second quarter.
    With two producing mines, a mill capable of handling significantly more
ore, an exceptional deposit at Corner Bay, a dominant position in the
Chibougamau mining camp and its exit from CCAA protection, the Company will
capitalize on the robust metal markets. In 2007, Campbell's priorities will be
to evaluate opportunities and implement procedures to increase production from
the Joe Mann and Copper Rand mines, to maximize mill throughput through
regional exploration programs such as the Merrill Island Pit and, perhaps most
significantly, to complete development and begin to process the high-grade
copper mineralization from Corner Bay. Management is excited about the
Company's potential and looks forward to a successful and productive year
ahead.

    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 20-F
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.


    CAMPBELL RE

SOURCES INC. Consolidated balance sheets as at December 31 (expressed in thousands of Canadian dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2006 2005 ------------------------------------------------------------------------- $ $ Assets Current assets Cash and cash equivalents 1,964 1,772 Short-term investments 792 125 Restricted cash and exchange agreements 50,000 - Receivables 1,591 1,654 Settlements receivable 5,413 8,374 Production inventories 401 67 Supply inventories 3,844 3,330 Prepaids 1,194 877 ------------------------------------------------------------------------- 65,199 16,549 Amount receivable from Copper Rand /Portage Restoration Fiduciary Trust 2,826 3,012 Restricted cash 3,942 350 Restricted deposits and exchange agreements - 49,723 Future income tax assets 1,484 1,324 Property, plant and equipment 37,135 59,955 Accrued benefit asset 4,427 3,897 Deferred charges and other assets 129 183 ------------------------------------------------------------------------- 115,142 134,643 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities Current liabilities Short-term loan 3,891 6,606 Accounts payable 13,973 13,563 Accrued liabilities 5,475 3,695 Current portion of long-term debt 65,287 18,037 ------------------------------------------------------------------------- 88,626 41,901 Asset retirement obligations 7,804 7,738 Long-term debt 70 49,745 Future income tax liabilities 6,636 4,756 ------------------------------------------------------------------------- 103,136 104,140 ------------------------------------------------------------------------- Shareholders' equity Capital stock 85,572 69,958 Warrants, stock options and conversion rights 9,263 2,771 Contributed surplus 1,996 1,404 Deficit (84,825) (43,630) ------------------------------------------------------------------------- 12,006 30,503 ------------------------------------------------------------------------- 115,142 134,643 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAMPBELL RE

SOURCES INC. Consolidated statements of operations years ended December 31 (expressed in thousands of Canadian dollars except per share amounts) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2006 2005 2004 ------------------------------------------------------------------------- $ $ $ Gross metal sales 11,925 19,915 21,833 Treatment charges 1,006 1,641 1,372 ------------------------------------------------------------------------- Net metal sales 10,919 18,274 20,461 ------------------------------------------------------------------------- Expenses Mining 13,897 16,346 20,853 Amortization of property, plant and equipment 2,743 4,675 4,802 Write-down of properties 25,001 18,512 1,750 General administration 2,945 4,080 2,255 Stock-based compensation 496 - 269 CCAA and reorganisation costs 6,511 972 - Exploration (159) 854 705 Care and maintenance 146 345 365 ------------------------------------------------------------------------- 51,580 44,812 31,009 ------------------------------------------------------------------------- Loss before the following items 40,661 26,538 10,548 Interest on short-term loan 501 392 10 Interest expense on long-term debt 692 770 405 Interest income (173) (900) (1,702) Amortization of deferred charges related to the sale of royalty - 1,851 264 ------------------------------------------------------------------------- Loss from operations 41,681 28,259 9,515 ------------------------------------------------------------------------- Other (income) expense Foreign exchange gain (loss) 31 (334) (47) Other income expense (552) (3,577) (797) ------------------------------------------------------------------------- (521) (3,911) (844) ------------------------------------------------------------------------- Loss before taxes and non-controlling interest 41,160 24,348 8,671 Income and mining tax expense (recovery) 35 82 (455) ------------------------------------------------------------------------- 41,195 24,430 8,216 Non-controlling interest - - (24) ------------------------------------------------------------------------- Net loss 41,195 24,430 8,192 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of common shares ('000) 150,562 107,925 96,482 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and fully diluted loss per share 0.27 0.23 0.08 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAMPBELL RE

SOURCES INC. Consolidated statements of contributed surplus and deficit years ended December 31 (expressed in thousands of Canadian dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2006 2005 2004 ------------------------------------------------------------------------- $ $ $ Contributed surplus Balance, beginning of year 1,404 1,101 1,081 Options expired and cancelled during the year 132 303 20 Conversion rights expired during the year 460 - - ------------------------------------------------------------------------- Balance, end of year 1,996 1,404 1,101 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Deficit Balance, beginning of year 43,630 19,200 11,008 Net loss 41,195 24,430 8,192 ------------------------------------------------------------------------- Balance, end of year 84,825 43,630 19,200 ------------------------------------------------------------------------- ------------------------------------------------------------------------- %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; Michael Shore,
mshore@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com

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CAMPBELL RESOURCES INC.

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