Silver Bear Announces 2010 Second Quarter Results

TORONTO, Aug. 10 /CNW/ - Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR) today announces financial results for the quarter ended June 30, 2010, prepared in accordance with Canadian generally accepted accounting principles ("GAAP"). All dollar amounts are stated in Canadian dollars unless otherwise indicated.

The Company is focused on maintaining the Mangazeisky license in good standing and preserving its cash balance. In accordance with the terms of its exploration license, Silver Bear has fulfilled its drilling and trenching requirements for 2010 on a cumulative basis through work completed in 2009. As a result, Silver Bear has successfully reduced exploration as well as general and administrative expenditures for the second quarter of 2010 when compared to prior quarters. The Company's cash balance at June 30, 2010 was $11.0 million compared to $12.3 million at December 31, 2009.

"While Silver Bear continues to believe that its Mangazeisky Project hosts an attractive silver deposit with significant potential, the Company is currently evaluating strategic alternatives in an effort to maximize the value of Silver Bear's assets," said Randall Oliphant, President and Chief Executive Officer. "Silver Bear has many strengths, and our focus continues to be on strategic options that will provide a meaningful return for our shareholders."

    
    Financial Results
    -----------------

    Net Loss
    --------
    

Silver Bear incurred a net loss for the three-month period ended June 30, 2010 of $0.5 million or $0.01 per share. This compares to a loss of $3.8 million or $0.10 per share for the three-month period ended June 30, 2009. Exploration costs were $0.3 million in the three-month period ended June 30, 2010 compared with $2.7 million in the three-month period ended June 30, 2009. Non-cash stock option compensation expense for the three-month period ended June 30, 2010 was $nil compared with $0.2 million in the three-month period ended June 30, 2009. General and administrative expenses for the three-month period ended June 30, 2010 were $0.5 million compared with $0.7 million in the three month-period ended June 30, 2009.

    
    Liquidity and Capital Resources
    -------------------------------
    

At June 30, 2010, Silver Bear had cash and cash equivalents of $11.0 million. The Company has no debt outstanding. Silver Bear anticipates that it has sufficient cash and cash equivalents to meet its short term objectives.

    
    Mangazeisky Project
    -------------------
    

During 2009, Silver Bear drilled a total of 12,373 metres over 74 holes, and 15,067 cubic metres of trenching were completed. Including these 2009 drilling and trenching results, on a cumulative basis, the Company has exceeded its license requirements through the end of 2010. In November of 2009, Silver Bear announced an updated mineral resource estimate for the project which was completed by Wardrop Engineering, a Tetra Tech Company, ("Wardrop"). Wardrop estimated an indicated mineral resource of 1.0 million tonnes averaging 558 grams per tonne totaling approximately 18 million ounces of silver for the Vertikalny vein, with an additional inferred mineral resource of 1.5 million tonnes averaging 596 grams per tonne totaling approximately 29 million ounces of silver. The estimate, as of November 6, 2009, was based on a long term silver price of US$10.84 per ounce, a cut-off grade of 240 grams per tonne and anticipates that the mineralized zone would be mined by selective underground methods at a minimum mining width of 1.2 metres.

    
    Silver Bear Resources Inc.
    --------------------------
    

The primary business of the Company is the evaluation, acquisition, exploration and development of precious metal properties. The Company's principal asset is its 100% owned Mangazeisky Project, located approximately 400 kilometres north of Yakutsk in the Republic of Sakha, Yakutia in the Russian Federation. In addition to approximately $1.7 million to be spent at Mangazeisky in 2010, Silver Bear plans to spend approximately $1.6 million in corporate general and administrative costs.

Silver Bear is currently evaluating strategic alternatives available to the Company in an effort to maximize shareholder returns. These may include: continued exploration/development of the Mangazeisky Project, joint venture of the Project, sale of the Project, or combination with another mineral-focused company.

Silver Bear Resources Inc. is listed on the Toronto Stock Exchange and its common shares trade under the symbol "SBR". Silver Bear has 37,935,569 issued and outstanding common shares. Other information relating to Silver Bear is available on SEDAR at www.sedar.com as well as on the Company's web site at www.silverbearresources.com.

    
    Silver Bear Resources Inc.
    Consolidated Balance Sheets
    (Canadian dollars)
    (unaudited)
                                                       June 30,  December 31,
                                                    ------------ ------------
                                                         2010         2009
    ASSETS
    Current assets
    Cash and cash equivalents                        11,034,572   12,320,095
    Receivables                                         486,306      355,438
    Inventories                                       1,186,090    1,226,195
    Prepaid expenses                                     24,533       90,677
                                                    ------------ ------------
                                                     12,731,501   13,992,405

    Capital assets
    Mineral property                                  1,265,117    1,265,117
    Property, plant and equipment                     1,578,648    1,969,181
                                                    ------------ ------------
                                                     15,575,266   17,226,703
                                                    ------------ ------------
                                                    ------------ ------------

    LIABILITIES

    Current liabilities
    Accounts payable and accrued liabilities            318,724      352,298

    Long-term liabilities
    Asset retirement obligation                         627,733      608,725

    Shareholders' equity

    Capital Stock                                    73,771,289   73,771,289

    Contributed surplus                               9,041,160    8,975,687

    Deficit                                         (68,183,640) (66,481,296)

                                                    ------------ ------------
                                                     14,628,809   16,265,680
                                                    ------------ ------------

                                                    ------------ ------------
                                                     15,575,266   17,226,703
                                                    ------------ ------------
                                                    ------------ ------------


    Silver Bear Resources Inc.
    Consolidated Statements of Operations and Comprehensive Loss and Deficit
    (Canadian dollars)
    (unaudited)

                                  Three-month               Six-month
                                 periods Ended             periods Ended
                             June 30,     June 30,     June 30,     June 30,
                          ------------ ------------ ------------ ------------
                               2010         2009         2010         2009

    Income
      Interest income          17,210       17,389       27,567       73,834
      Other Income            502,453            -      502,453            -
                          ------------ ------------ ------------ ------------
                              519,663       17,389      530,020       73,834
                          ------------ ------------ ------------ ------------
    Expenses
      Exploration costs       325,408    2,686,238      879,206    5,268,054
      General and
       administrative         493,256      687,342      876,587    1,418,341
      Stock option
       compensation            12,623      153,673       65,473      345,415
      Amortization            202,209      194,267      390,533      374,586
      Accretion expense         9,504        9,505       19,008       19,006
      Gain on disposal of
       property, plant
       and equipment                -       11,631       (1,922)      11,631
      Foreign exchange
       loss (gain)              4,322       81,261        3,479      429,197
                          ------------ ------------ ------------ ------------
    Expenses from
      operations            1,047,322    3,823,917    2,232,364    7,866,230
                          ------------ ------------ ------------ ------------

    Loss and Comprehensive
     Loss for the period
     from operations         (527,659)  (3,806,528)  (1,702,344)  (7,792,396)

                          ------------ ------------ ------------ ------------
    Net Loss                 (527,659)  (3,806,528)  (1,702,344)  (7,792,396)
                          ------------ ------------ ------------ ------------

    Deficit - Beginning of
     the period           (67,655,981) (57,179,733) (66,481,296) (53,193,868)

                          ------------ ------------ ------------ ------------
    Deficit - End of
     the period           (68,183,640) (60,986,261) (68,183,640) (60,986,264)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------


    Weighted average
     number of common
     shares outstanding    37,935,569   37,935,569    37,935,569  37,935,569

                          ------------ ------------ ------------ ------------
    Loss per share              (0.01)       (0.10)        (0.04)      (0.21)
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------



    Silver Bear Resources Inc.
    Consolidated Statements of Cash Flows
    (Canadian dollars)
    (unaudited)

                                  Three-month               Six-month
                                 periods Ended             periods Ended
                             June 30,     June 30,     June 30,     June 30,
                          ------------ ------------ ------------ ------------
                               2010         2009         2010         2009

    Cash provided by (used in)

    Operating activities
    Net Loss from
     operations              (527,659)  (3,806,528)  (1,702,344)  (7,792,396)

    Items not affecting
     cash:
      Amortization            202,209      194,267      390,533      374,586
      Accretion expense         9,504        9,505       19,008       19,006
      Stock option
       compensation            12,623      153,673       65,473      345,415
      Loss on disposal of
       property, plant and
       equipment                    -       11,631       (1,922)      11,631
    Net change in non-cash
     working capital         (353,258)   1,184,205      (58,193)     179,103

                          ------------ ------------ ------------ ------------
    Net cash used in
     operations              (656,581)  (2,253,247)  (1,287,445)  (6,862,655)
                          ------------ ------------ ------------ ------------

    Investing activities
      Acquisition of
       property, plant and
       equipment                    -      (17,093)           -     (230,560)

      Proceeds from sale of
       property, plant and
       equipment                    -            -        1,922            -
                          ------------ ------------ ------------ ------------
                                    -      (17,093)       1,922     (230,560)
                          ------------ ------------ ------------ ------------

    Decrease in cash and
     cash equivalents
     during the period       (656,581)  (2,270,340)  (1,285,523)  (7,093,215)

    Cash and cash
     equivalents
     - beginning of
     the period            11,691,153   19,347,148   12,320,095   24,170,023

                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------
    Cash and cash
     equivalents
     - end of the period   11,034,572   17,076,808   11,034,572   17,076,808
                          ------------ ------------ ------------ ------------
                          ------------ ------------ ------------ ------------

    Forward-Looking Information
    ---------------------------

    

This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements, which reflect management's expectations with respect to the proposed transaction. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Silver Bear cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such risks factors include but are not limited to risks factors identified by Silver Bear in its continuous disclosure filings filed from time to time on SEDAR. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause Silver Bear's actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although Silver Bear has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. 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. Accordingly, prospective investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this release, and Silver Bear assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

SOURCE SILVER BEAR RESOURCES INC.

For further information: For further information: For further details, please visit www.silverbearresources.com, or contact: Brian Penny, Chief Financial Officer, (416) 324-6002, bpenny@silverbearresources.com; Hannes Portmann, Director, Corporate Development and Investor Relations, (416) 324-6014, hportmann@silverbearresources.com

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SILVER BEAR RESOURCES INC.

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