New Dawn Mining Corp. reports pre-tax operating income and positive operating cash flow for the quarter ended June 30, 2009



    
    HIGHLIGHTS (All amounts are in US dollars)
    ----------

    -   US$0.016 per basic share or US$464,003 of operating income before
        other income/expense and future taxes

    -   US$0.025 per basic share or US$719,644 of income before non-cash
        expenses and future taxes (non-GAAP)

    -   US$2,865,285 of revenues from the sale of 3,122 ounces of gold at an
        average sale price of $917 per ounce

    -   2,931 ounces of gold produced during the quarter ended June 30, 2009

    -   Cash costs of US$503 per ounce during the quarter ended June 30, 2009
        (cash costs are a non-GAAP measure)

    -   100% of gold sales received and collected in US dollars

    -   Company re-affirms its first production rate target of 3,600 ounces
        of gold per quarter by Fiscal Q1 2009/2010

    -   Future production profile of 35,000 to 50,000 ounces of gold per
        annum at Turk Mine

    -   South African project written down by US$2,559,260, resulting in a
        net loss for the quarter ended June 30, 2009 of $(2,054,054) and loss
        per share of $(0.07)

    -   NI 43-101 compliant Reserve and Resource update for Zimbabwe
        properties anticipated for release in November 2009
    

    TORONTO, Aug. 14 /CNW/ - New Dawn Mining Corp. (TSX: ND) ("New Dawn" or
the "Company") announced that its financial results and corresponding
Management's Discussion and Analysis for the three months and nine months
ended June 30, 2009 and 2008 have now been filed on Sedar and are also
available to view on the Company's website at www.newdawnmining.com.
    The Company prepares its consolidated financial statements in U.S.
Dollars and in accordance with Canadian Generally Accepted Accounting
Principles.
    The quarter ended June 30, 2009 marked the first full quarter for the
resumption of gold mining activities at the Company's Turk Mine in Zimbabwe
since it was placed on care and maintenance in early October 2008.

    
    HIGHLIGHTS OF FINANCIAL RESULTS

    Highlights for the current and three previous quarters:

    -------------------------------------------------------------------------
    Fiscal 2008/2009                         Quarters Ended
    -------------------------------------------------------------------------
                           June 30,     March 31,  December 31, September 30,
                              2009          2009          2008          2008
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Operations
    -------------------------------------------------------------------------
    Revenue            $ 2,865,285   $         -   $         -   $ 1,006,210
    -------------------------------------------------------------------------
    Net income (loss)
     for the period     (2,054,054)   (1,251,025)   (1,072,765)   (2,332,916)
    -------------------------------------------------------------------------
    Basic and diluted
     earnings (loss)
     per share               (0.07)        (0.04)        (0.04)       ($0.08)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Balance sheet
    -------------------------------------------------------------------------
    Total assets       $17,996,425   $19,592,561   $20,386,530   $21,383,249
    -------------------------------------------------------------------------
    Total liabilities    5,086,786     4,650,498     4,215,072      4,160911
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Dividends                  Nil           Nil           Nil           Nil
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Other measures
    -------------------------------------------------------------------------
    Quantity of gold
     produced (oz)           2,931           637             -         1,154
    -------------------------------------------------------------------------
    Quantity of gold
     sold (oz)               3,122             -             -         1,154
    -------------------------------------------------------------------------
    Intercompany loan
     repayments paid
     from Zimbabwe     $   145,000   $       Nil   $       Nil   $       Nil
    -------------------------------------------------------------------------
    Cash costs per
     oz(1)             $       503   $       500           n/a   $     1,141
    -------------------------------------------------------------------------
    Adjusted cash
     costs per oz(1)   $       503   $       500           n/a   $     1,154
    -------------------------------------------------------------------------
    (1) Cash costs per ounce and adjusted cash costs per ounce are non-GAAP
        measures as more fully described in the discussion at the end of the
        MD&A entitled "Non-GAAP Measures".

    Third Quarter Fiscal 2008/2009 (Three Months Ended June 30, 2009)

    OVERALL PERFORMANCE
    
    With continuing improvement in the operating environment in Zimbabwe, the
Company moved to full production at its Turk Mine, effective May 4, 2009, and
increased production throughout the quarter ended June 30, 2009. Expansion of
Turk Mine operations has continued subsequent to June 30, 2009 with the
initial objective of reaching a production rate of 1,200 ounces of gold per
month by October 2009.
    The future production profile of the Turk and Angelus Mine complex
indicates an annual production capability ranging from approximately 35,000 to
50,000 ounces of gold from 3 existing separate mine shaft systems -
specifically, the Main Vertical Shaft, the Armenian Shaft and the Angelus
Shaft.
    During the quarter ended June 30, 2009, the Company's Turk Mine in
Zimbabwe produced 2,931 ounces of gold and sold 3,122 ounces of gold,
generating sales of $2,865,285.

    REVENUE

    The quarter ended June 30, 2009 is the first quarter in the current
fiscal year with gold sales as a result of sustained production having resumed
at the Company's Turk Mine earlier in the fiscal year. Total gold sales for
that quarter amounted to $2,865,285. Gold produced at the end of the quarter,
but awaiting documentation for clearance for export to Rand Refiners in South
Africa, amounted to 445 ounces and was included in inventory, at cost, at June
30, 2009. This finished gold inventory was sold in the first two weeks of July
2009.
    The Company received an average of approximately $917 per ounce for its
gold sold during the quarter ended June 30, 2009.
    Miscellaneous gold sales from the Blue Dot project are treated as a
reduction of the deferred expenses and are not recorded as revenue.

    OPERATING EXPENSES

    The average cash cost for gold produced at the Turk Mine during the
quarter ended June 30, 2009 was US$503 per ounce of gold.
    Mine operating expenses, excluding amortization, for the quarter ended
June 30, 2009 are comparable with those costs reported for each of the
quarters ended December 31, 2007, March 31, 2008 and June 30, 2008 of the
previous fiscal year when production was comparable.
    Amortization expense for the three months and nine months ended June 30,
2009 is lower than the corresponding periods in 2008. The main reason is that
amortization calculated on a units-of-production basis was zero for the period
October 1, 2008 through February 2009, as there was no production during that
period because the Turk Mine was on care and maintenance.

    EARNINGS

    Excluding the provision for impairment for the Blue Dot project of
$2,559,260, other expense (net) of $13,797, and provision for future income
taxes of $55,000, the Company would have generated basic earnings per share of
$0.016 per share and diluted earnings per share of $0.015 per share for the
quarter ended June 30, 2009. These figures are based on operations that are
still in the production expansion phase and that have not reached the volumes
where efficiencies of scale will be fully realized.

    CASH RE

SOURCES and LIQUIDITY At June 30, 2009, cash and cash equivalents were US$3,074,895, a decrease of US$388,659 from March 31, 2009. The Company has working capital of US$3,673,581 at June 30, 2009 and no long-term debt obligations or unfunded work programs for the balance of 2009. In July 2009, the Reserve Bank of Zimbabwe ("RBZ") issued bonds to the Company in the amount of US$2,528,760 bearing interest at 8% per annum and maturing in February 2010. The bonds were issued to satisfy the amount owed to the Company by the RBZ for gold sales that occurred primarily in 2008, which through January 31, 2009 were required to be sold through the RBZ. The Company had previously written down the receivable to US$1,170,994, which is the amount currently recorded in the financial statements at June 30, 2009. During February 2009, the Company arranged for a short-term bank loan of US$250,000 for working capital purposes that was used to finance the resumption of operations at the Turk Mine. The Company anticipates repaying this loan during September 2009. With production at the Company's Turk Mine increasing and generating positive cash flow, management believes the current working capital is sufficient to fund the Company's other exploration and development activities and overhead through the remainder of fiscal 2009 and beyond, including all currently planned expenditures. IMPAIRMENT CHARGE Subsequent to the period end, the Company completed a review to determine the viability of its Blue Dot project located in South Africa. As part of the review, an impairment test was conducted, which indicated that the carrying cost of the project was in excess of its fair value and, as a result, a provision for impairment of $2,559,260 was recorded at June 30, 2009. Management is currently assessing its options with respect to the Blue Dot project to maximize shareholder value in the near term. OVERVIEW The Company is a junior gold company engaged in the production of gold and related activities, including exploration, development, mining and processing, in southern Africa. The Company's principal assets are the actively producing Turk Mine in Zimbabwe, the advanced exploration project Angelus Mine in Zimbabwe, and a portfolio of exploration properties in Zimbabwe. New Dawn has positioned itself as a Zimbabwe-focused gold company that is concentrating its efforts on expanding production at the Turk Mine and advancing its exploration properties by identifying and drilling defined targets, while also assessing value accretive acquisitions in the region. These items are more specifically described below. 1. Production Expansion at Turk Mine: New Dawn owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe that have the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum. A production facility capable of processing up to 400 tonnes per day or 12,000 tonnes per month is currently in place and operating. The production facility is capable of easily being expanded to 580 tonnes per day or 17,500 tonnes per month. The Company maintains a highly experienced work force at Turk Mine of over 770 people. At New Dawn's Turk and Angelus Mines, the most recent NI 43-101 report documented an aggregate of 916,700 ounces of gold resource grading between 3.9 - 4.9 g/t, with an additional inferred mineral resources of 331,700 ounces of gold grading 5.16 g/t. Reserves and Resources are based upon a 2.45 g/t cut-off and US$875/oz gold price at the Turk and Angelus Mines. An updated NI 43-101 compliant Reserve and Resource estimate for the Turk and Angelus Mine complex is expected to be received from SRK International by October/November 2009. The Turk Mine and the Angelus Mines are contained within a large contiguous block of claims, with a total area of 2,171 hectares. The Company also holds an additional 357 hectares of other claims within 10 kilometers of the Turk Mine. Moving forward, New Dawn will be concentrating on increasing production at Turk Mine and realizing cost efficiencies to reduce overall cash costs where ever possible. 2. Exploration: The Company has a portfolio of exploration properties in Zimbabwe that includes the Consolidated Bubi Gold Fields, Consolidated Midlands Gold Fields and Consolidated Shurugwi Gold Fields properties. 3. Consolidation: New Dawn continues to position itself as the natural in-country consolidator of gold mining properties and companies in Zimbabwe. New Dawn is currently assessing value accretive opportunities in Zimbabwe and the surrounding region, including advanced stage exploration properties, as well as other gold mining companies with production and resources. CONCLUDING COMMENTS "As part of our strategic plan over the past couple of years, we elected to grow our asset base by over-developing the Turk and Angelus Mine complex relative to our production profile. We installed an upgraded production infrastructure that is now ready to be put into operation, which will allow us to mine over 11 years of in place reserves and to progressively increase our production levels," commented Ian Saunders, President and CEO. "The Turk Mine is far up the value curve, relative to its current production profile, and we are geared for sustainable growth. With production at the Turk Mine having resumed, we are just beginning to see the positive results from these efforts. On behalf of the board, management and all of our employees, I would like to thank our shareholders and partners for their continued support and commitment to New Dawn, and I look forward to reporting further production increases and steadily improving financial results to our shareholders in the coming quarters." The contents of this news release were supervised and reviewed by Ian R. Saunders, B.Sc., who is President, Chief Executive Officer, and a Director of New Dawn, and who is a Qualified Person within the meaning of NI 43-101. Investors are invited to visit the New Dawn Mining Corp. IR Hub at AGORACOM: http://www.agoracom.com/ir/NewDawn, where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail questions and correspondence to: ND@agoracom.com, where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time. Special Note Regarding Forward-Looking Statements: Certain statements included or incorporated by reference in this news release, including information as to the future financial or operating performance of the Company, its subsidiaries and its projects, constitute forward-looking statements. The words "believe," "expect," "anticipate," "contemplate," "target," "plan," "intends," "continue," "budget," "estimate," "may," "schedule" and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of gold production and prices, operating costs, results and capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among others, risks relating to reserve and resource estimates, gold prices, exploration, development and operating risks, political and foreign risk, uninsurable risks, competition, limited mining operations, production risks, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs and dependence on key employees. See "Risk Factors" in the Company's 2008 Annual Information Form. Due to risks and uncertainties, including the risks and uncertainties identified above, actual events may differ materially from current expectations. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or results or otherwise. %SEDAR: 00026497E

For further information:

For further information: Investor Relations Contact: Richard Buzbuzian,
(416) 585-7890; President and Chief Executive Officer: Ian R. Saunders, (416)
585-7890; Visit us on the internet: http://www.newdawnmining.com or Email us
at: info@newdawnmining.com

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New Dawn Mining Corp.

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