Whitemud Resources reports 2007 annual financial results



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    CALGARY, March 19 /CNW/ - Whitemud Resources Inc. ("Whitemud" or the
"Company") (WMK - TSXV) is pleased to provide an operations update and summary
financial results for the year ended December 31, 2007.

    Operations Update

    Whitemud Resources Inc. is well-advanced in the start-up phase of the new
Gollier Creek processing facility. The Company has successfully demonstrated
that all of its major processing components of the facility work and has
successfully produced both kaolin clay and metakaolin. The commissioning
schedule has been impacted by challenges inherent with the start-up of a major
industrial plant, and minor modifications and adjustments are currently being
made to bring the facility into commercial production. Management believes
that the Company will soon ship metakaolin for field testing and has developed
a staged product launch plan to facilitate a controlled introduction of
Whitemud(MK) metakaolin to customers in both the construction and oil and gas
service industries.

    Operating and Capital Facilities

    Whitemud has finalized an agreement with Canadian Western Bank to provide
two separate financing facilities to assure that the Company will be able to
meet its business objectives in 2008. This agreement includes a $5 million
operating loan facility to finance day-to-day operations and a $5 million
capital loan facility to finance capital-related requirements. The Company
expects to become cash flow positive on a monthly basis prior to year-end
2008.

    
    2007 Year End Financial Highlights

                                               Year ended        Year ended
                                              December 31,      December 31,
                                                  2007              2006
    --------------------------------------  ---------------   ---------------
    Revenue                                            Nil               Nil
    --------------------------------------  ---------------   ---------------
    Interest income                         $    1,099,718    $       80,033
    --------------------------------------  ---------------   ---------------
    Loss for the period                     $   (4,420,946)   $   (2,388,424)
    --------------------------------------  ---------------   ---------------
    Net Loss per Share (basic and diluted)  $        (0.30)   $        (0.32)
    --------------------------------------  ---------------   ---------------
    Total Assets                            $   67,014,124    $   12,008,438
    --------------------------------------  ---------------   ---------------
    Total Long Term Liabilities             $      485,311               Nil
    --------------------------------------  ---------------   ---------------
    Net Working Capital                     $    5,076,996    $      144,434
    --------------------------------------  ---------------   ---------------
    Cash and Cash Equivalents               $   11,817,585    $    1,479,770
    --------------------------------------  ---------------   ---------------

    The Company expects to file its audited financial statements for the year
ended December 31, 2007 and Management's Discussion and Analysis on SEDAR by
no later than March 30, 2008.

    Key Accomplishments

    The following is a summary of the key accomplishments of Whitemud
Resources Inc. during 2007:

    -   Completed the construction of the Gollier Creek processing facility
        on schedule and significantly under cost estimates outlined in the NI
        43-101 Technical Report
    -   Awarded a surface mining contract and began stockpiling kaolin ore
    -   Acquired an additional 10,000 acres of mineral leases, bringing total
        acquired mineral leases and permits to 28,381 acres
    -   Increased indicated and measured resources by 65% through 2007
        drilling program
    -   Completed recruitment of key management, geosciences and engineering
        personnel
    -   Completed recruitment of mine and plant personnel and commenced
        training to coincide with plant commissioning
    -   Completed rail terminal center at Scout Lake and secured rail car
        fleet
    -   Secured key contracts with various logistics suppliers for the
        transportation and delivery of product to customers
    -   Continued to attract diverse interest for metakaolin from several
        potential customers

    Outlook

    Whitemud's goal is to exploit the extensive kaolin resources in southern
Saskatchewan and become the leading North American supplier of metakaolin to
the concrete and cement industries. The Company's principal targets for 2008
are to:

    -   Effectively commission the Gollier Creek processing plant and bring
        the facility to full commercial production
    -   Initiate commercial shipments to key customers and work with them on
        understanding the product and continued development
    -   Build on existing relationships to continue to secure additional
        metakaolin, kaolin, and sand customers
    -   Investigate other potential uses of metakaolin, kaolin, and sand to
        diversify outside of current markets
    -   Maintain and grow the Company's resources through a comprehensive
        drilling and exploration program
    -   Focus on opportunities to optimize processes leading to plant and
        mining efficiencies
    -   Continue planning for a plant expansion from 200,000 tonnes per year
        to over 350,000 tonnes per year
    -   Continue to promote the environmental benefits of Whitemud(MK)
        metakaolin as an industry solution to reduce greenhouse gas emissions
    

    About Whitemud Resources

    Whitemud Resources Inc. (www.whitemudresources.com) is a Canadian-based
corporation that is exploiting a large kaolin deposit in southern
Saskatchewan. At its new, state-of-the-art processing facility, the Company
will produce Whitemud(MK), a high-reactivity, cement-grade metakaolin that
enhances the performance of cement used in construction and in oil and gas
wells.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    Forward Looking Information

    This press release may contain forward-looking statements which may
include estimates, plans, expectations, opinions, forecasts, projections,
guidance or other statements that are not statements of fact, including
without limiting the generality of the foregoing, statements made under the
heading "Outlook". Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, it cannot give
any assurance that such expectations will prove to be correct. Results of
Whitemud including its ability to complete the plant construction on budget
and schedule may be affected by a variety of variables and risks associated
with the mining and mineral processing industry such as availability of human
and capital resources to complete construction, loss of market, competition,
ability to access sufficient debt and equity capital from internal and
external sources, ability to expand in the marketplace, exploration and
development plans and results, anticipated capital expenditures and financing
thereof, timing of applications and approvals. As such the future plans and
objectives of Whitemud are forward-looking statements that involve risks and
uncertainties and may be based on assumptions that could cause actual results
to differ materially from those anticipated or implied in such statements. The
Company's forward-looking statements are expressly qualified in their entirety
by this cautionary statement. Unless otherwise required by applicable
securities laws, the Company does not intend nor does it undertake any
obligation to update or review any forward-looking statements to reflect
subsequent information , events, results or circumstances or otherwise.

    For further information on Whitemud, go to www.whitemudresources.com

    For email alerts regarding Whitemud Resources, please go to Whitemud
Resources Inc. - Email Alerts

    %SEDAR: 00024724E




For further information:

For further information: Burl Aycock, Chairman & CEO, Whitemud
Resources, Telephone: (403) 695-1012; Ron Love, Vice-President, Finance and
CFO, Telephone: (403) 517-0040; Kelly Babichuk, President and COO, Whitemud
Resources, Telephone: (403) 517-0040; Kevin Graham, Vice-President,
Communications, Whitemud Resources, Telephone: (403) 517-0040

Organization Profile

WHITEMUD RESOURCES INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890