Whitemud Resources Reports Operations Update and 2008 Year End Financial Results



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

    CALGARY, April 30 /CNW/ - Whitemud Resources Inc. ("Whitemud" or "the
Company") (TSXV:WMK) is pleased to provide an operations update and summary
financial results for the twelve months ended December 31, 2008.

    Whitemud Exploiting Opportunities in Economic Downturn

    In the fourth quarter of 2008, Whitemud Resources successfully launched
Whitemud(MK) (the commercial trade name for our metakaolin) to key markets in
the Prairie Provinces and Quebec. This resulted in the introduction of
Whitemud(MK) into a number of high profile construction projects. Whitemud
Resources worked closely with national engineering firms, construction
contractors, and major concrete producers to evaluate and specify the
inclusion of Whitemud(MK) in commercial applications. The product met or
exceeded performance expectations and is being specified in a growing number
of large projects which will commence construction in the upcoming
construction season.

    
    A number of high profile projects have included Whitemud(MK) in their
    concrete:

    -   Saskatchewan Highways Bridge in Estevan, SK
    -   Leduc Recreation Centre in Leduc, AB
    -   University of Calgary - Taylor Family Digital Library in Calgary, AB
    -   South Calgary Hospital in Calgary, AB
    -   University of Calgary - Energy. Environment. Experiential Learning
        (E.E.EL.) Building in Calgary, AB
    

    Shipments were made to various parts of Canada and the United States;
including rail shipments to Holcim (Canada) Inc. (formerly known as St.
Lawrence Cement) in Longueuil, Quebec. Whitemud is making arrangements with
several other concrete producers in the U.S. and Canada to deliver
Whitemud(MK) to their major concrete plants. Deliveries are expected to
increase as the 2009 construction season significantly ramps up.
    With the current economic downturn, concrete and oil well servicing
companies are faced with pressure to lower costs and differentiate their
product offerings in order to be more competitive. The unique ability of
Whitemud(MK) to lower concrete costs while enhancing performance positions
Whitemud to penetrate and grow sales in these sectors.
    In the area of environmental benefits, Whitemud(MK) demonstrates
exceptional performance in achieving LEED targets. LEED(R) (Leadership in
Energy and Environmental Design) is an international standard for construction
projects that rewards environmental innovation, sustainability and reduction
in CO(2) footprints. Management believes that Whitemud(MK) provides a unique,
cost-effective solution and the growing environmental concerns that are
rapidly impacting the concrete industry.
    As a result of the environmental and economic benefits, we are well
positioned to capitalize on infrastructure construction revitalization
spending. Several U.S. departments of transportation (DOTs), Canadian
provincial transportation and infrastructure departments, and North American
cities are currently evaluating metakaolin for use in their concrete
construction projects.
    The oil well service industry initiated the use of Whitemud(MK) in
Alberta and North Eastern British Columbia. Whitemud(MK) delivered good
performance and we expect the use of Whitemud(MK) to expand to other locations
across Western Canada as drilling activity resumes. Whitemud continues to
actively pursue opportunities with other international, U.S. based oil well
cementers.
    A relatively new opportunity for Whitemud(MK) is in underground mining
where shotcrete is used to support underground tunnels. Independent testing
has demonstrated that Whitemud(MK) enhances shotcrete performance and
shipments have commenced to a number of mining operations in Eastern Canada
and British Columbia.
    Also, we have developed a relationship with an established international
brokerage firm to explore Asian and European opportunities in construction and
oil well cementing. Interest from China resulted in a 24-tonne container of
Whitemud(MK) being shipped to Beijing for evaluation by Chinese contractors
and state agencies. Whitemud(MK) is very competitive with silica fume for use
in high performance concrete. It may be feasible to supply large scale
projects internationally.

    Operations Update

    Since December 2008, the plant has been shut down to make some
modifications to improve plant performance and reliability. These
modifications have been completed and the plant is ready to start-up as soon
as necessary to produce additional product. Current product inventory is
expected to be sufficient to meet demand into June 2009, therefore the plant
operations are expected to restart in early June.

    Financial highlights and results for the year ended December 31, 2008:

    
    -   The Company closed a bought deal private placement of 2,143,000
        special warrants that were subsequently exchanged for common shares
        for total gross proceeds of $15,001,000 ($13,821,313 net of offering
        costs).
    -   Working capital available at year end amounts to $1,892,302. In early
        2009, the Company entered into a short-term bridge loan financing
        with its bank for $2 million to supplement working capital.
    -   The Company is actively involved with a syndicate of underwriters in
        seeking additional financing. The Company has conducted extensive
        discussions with various parties with significant progress being
        made.
    -   Commercial shipments of product commenced in the fourth quarter and
        will be slowly ramping up through 2009.
    -   Net loss for the year ended December 31, 2008 amounted to $7,435,502
        ($0.46 per share) compared to $4,420,946 ($0.30 per share) for the
        year ended December 31,2007.
    -   In 2007 the Company was developing while it constructed the plant and
        mine, whereas in 2008 the Company became fully staffed and the
        processing facility was put into full industrial production; making
        comparisons between the two periods difficult.

    A summary of financial results is presented below:

    -------------------------------------------------------------------------
    Income Statement Summary                           For the Year Ended
    -------------------------------------------------------------------------
                                                   December 31,  December 31,
                                                       2008          2007
                                                        $             $
    -------------------------------------------------------------------------
    Interest and miscellaneous income                  207,739     1,099,718
    -------------------------------------------------------------------------
    Expenses                                         7,615,191     5,520,664
    -------------------------------------------------------------------------
    Non-cash stock based compensation expense
     (included above)                                1,991,823     1,800,443
    -------------------------------------------------------------------------
    Net loss                                         7,435,502     4,420,946
    -------------------------------------------------------------------------
    Net loss per share                                    0.46          0.30
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
    Balance Sheet Summary                             As at         As at
                                                   December 31,  December 31,
                                                       2008          2007
                                                        $             $
    -------------------------------------------------------------------------
    Working capital                                  1,892,302     5,076,996
    -------------------------------------------------------------------------
    Total assets                                    70,718,171    67,014,124
    -------------------------------------------------------------------------
    Shareholder equity                              67,052,501    58,246,618
    -------------------------------------------------------------------------

    About Whitemud Resources

    Whitemud Resources Inc. (www.whitemudresources.com) is a Canadian-based
corporation that is exploiting a large kaolin deposit in southern
Saskatchewan. The Company produces Whitemud(MK), a high-reactivity,
cement-grade metakaolin that enhances the performance of cement used in
construction and in oil and gas wells. The Company is positioned to benefit
from expanding North American infrastructure needs and growing environmental
pressures.

    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
headings "Whitemud Exploiting Opportunities in Economic Downturn" and
"Operations Update" and in particular comments relating to expectations
relating to the growing demand for the application of its Whitemud product,
expansion in the oil well service industry, developments in underground mining
applications and interest from China. 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 may be affected by a variety of variables and risks
associated with the mining and mineral processing industry, such as, 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
well as risks and variables associated in general with the precast concrete
industry, the oil well service industry and infrastructure projects upon which
Whitemud is dependent for the consumption of its Whitemud product. 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 has, in part, relied on information provided to
it by its customers and potential customers, as well as reports and forecasts
provided by parties involved in infrastructure projects, the precast concrete
industry and oil well service industry in order to develop its forward-looking
statements and there is no assurance that the assumptions, forecasts or
information relied upon by the Company is correct, or will not be affected by
events or circumstances beyond the control of the Company. 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





For further information:

For further information: Burl Aycock, Chairman & CEO, Whitemud
Resources, Telephone: (403) 695-1012; Ron Love, Vice President, Finance and
CFO, Whitemud Resources, 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.

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