Peak Gold earns $14.6 million in Company's first year

    (All figures are in US dollars unless stated otherwise)

    VANCOUVER, March 17 /CNW/ - Peak Gold Ltd. (PIK:TSX-V) ("Peak Gold")
today reported net earnings of $14.6 million or 3 cents per share for the
thirteen months ended December 31, 2007. Production in 2007 from the date of
acquisition of the Amapari and Peak mines was 149,830 ounces of gold at a
total cash cost of $349 per ounce.

    2007 Financial and Operational Highlights

    The highlights presented below include the operating results of the
Amapari and Peak mines from the dates of their acquisition, which are April 3,
2007 and April 27, 2007, respectively.

    -  Net earnings of $14.6 million after charges of $6.2 million in
       stock-based compensation

    -  Gold production of 149,830 ounces

    -  Total cash costs of $349 per ounce (net of by-product sales) (1)

    -  Consolidated operating cash flow of $26.6 million

    -  In April 2007, Peak Gold completed a Cdn$326.5 million financing of
       435 million subscription receipts (each subscription receipt comprised
       of one common share and one-half of one common share purchase warrant
       of Peak Gold) at a price of Cdn$0.75 per subscription receipt. The
       proceeds were used to partially finance the acquisition of the Amapari
       and Peak mines for consideration of 155 million common shares with a
       value of $100 million and $200 million in cash

    -  In November 2007, Peak Gold completed a financing of 147,723,334
       special warrants for net proceeds to Peak Gold of Cdn$104.2 million.
       On February 28, 2008, the special warrants were automatically
       exercised into 147,723,334 common shares and 73,861,667 common share
       purchase warrants of Peak Gold. The proceeds will be used for future
       acquisitions of mineral properties and capital expenditures

    Fourth Quarter Highlights

    -  Net earnings of $14.8 million after charges of $1.0 million in
       stock-based compensation

    -  Gold production of 53,430 ounces

    -  Gold sales of 52,351 ounces

    -  Total cash costs of $398 per ounce (net of by-product sales) (1)

    -  Consolidated operating cash flow of $12.9 million

    Robert Gallagher, Peak Gold President and CEO, made the following
comments in relation to year-end and the fourth quarter results:

    "Following the acquisition of the company's first operating assets in
April, strong cash flow generation and improving operating costs have
characterized Peak Gold's first year of operation. At the end of a year in
which management and operating teams were strengthened and two financings were
completed, the company is well positioned for future growth both internally
and externally. With our operating assets continuing to generate strong cash
flow to the company, full exposure to the gold market and cash and short term
investments of $182 million, Peak Gold is well positioned for what should be
an exciting 2008."

    Operational Review

    The full year operational highlights for the Amapari and Peak mines, which
include the period prior to their acquisition by Peak Gold, are as follows:

    -  Gold production for 2007 was 212,933 ounces compared to 206,800 ounces
       in 2006

    -  Gold sales for 2007 were 214,398 ounces compared to 200,000 ounces in

    -  Copper production for 2007 was 7.5 million pounds with sales of
       7.3 million pounds compared to 6.5 million pounds produced and sold in

    -  Total cash costs in 2007 were $364 per ounce compared to $355 per
       ounce in 2006 (net of by-product sales) (1)

    For the full year at Peak Mines in Australia, including the period prior
to acquisition by Peak Gold, production was 116,533 ounces of gold and
7.5 million pounds of copper. Record annual mill throughput of 709,230 tonnes
reflects consistent underground production and increased milling capacity.
Production for the fourth quarter was 29,030 ounces of gold and 1.8 million
pounds of copper. Total cash costs for the full year were $243 per ounce and
for the quarter were $258 per ounce. The strengthening of the Australian
dollar throughout the year negatively impacted total cash costs per ounce
sold. Operating costs were reasonably consistent through the year with cost
control remaining a key focus for management.
    Production for the full year at the Amapari mine in Brazil, including the
period prior to acquisition by Peak Gold, was 96,400 ounces, a 15% increase
from 2006. Production for the fourth quarter was 24,400 ounces. Total cash
costs for the year were $515 per ounce and for the quarter were $583 per
ounce. Cash costs in 2007 were adversely affected by the strengthening of the
Brazilian currency (real) related to the U.S. dollar. The Brazilian currency
strengthened by approximately 16% during the year. Peak Gold continues to
study the viability of alternative processes to improve the efficiency and
costs of its operations at Amapari.
    Gold and copper production in 2008 for both the Amapari and Peak mines
are expected to be in line with 2007 production. Production in 2008 is
expected to be 210,000 to 220,000 ounces at a cash cost of $345 to $365 per
ounce. Cash costs in 2008 are expected to decline from 2007 levels as a result
of cost saving programs implemented in 2007. A further weakening of the U.S.
dollar will continue to have a negative impact on Peak Gold's cost structure.
A significant increase in gold production is expected from 2009 onwards.

    Peak Gold will hold a conference call on Monday, March 17, 2008 at
10:00 a.m. Pacific time to discuss these results. You may join the call by
dialing toll free 1-888-789-9572 or 1-604-639-5228 for calls from outside
Canada and the U.S. You can listen to a recorded playback of the call after
the event until April 17, 2008 by dialing 1-800-408-3053 or 1-416-695-5800 for
calls outside Canada and the U.S. Passcode: 3252883 followed by the number

    Click here to view the unaudited Statement of Operations, Other
Comprehensive Income and Deficit, Statement of Cash Flows, Balance Sheet and
Financial/Operational Highlights.

    The Audited Financial Statements and Management Discussion & Analysis
will be filed on SEDAR in approximately one week.

    Peak Gold is a new intermediate gold producer with a strong foundation
for growth. To learn more about us, please visit our website at

    (1) Peak Gold has included a non-GAAP performance measure, total cash
        costs per gold ounce, throughout this news release. Peak Gold reports
        total cash costs on a sales basis. In the gold mining industry, this
        is a common performance measure but does not have any standardized
        meaning, and is a non-GAAP measure. Peak Gold follows the
        recommendations of the Gold Institute standard. Peak Gold believes
        that, in addition to conventional measures, prepared in accordance
        with GAAP, certain investors use this information to evaluate Peak
        Gold's performance and ability to generate cash flow. Accordingly, it
        is intended to provide additional information and should not be
        considered in isolation or as a substitute for measures of
        performance prepared in accordance with GAAP.

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


    This News Release contains "forward looking statements", within the
meaning of applicable Canadian Securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to the
future price of gold and copper, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and amount
of estimated future production, costs of production, capital expenditures,
costs and timing of the development of new deposits, success of exploration
activities, permitting time lines, currency exchange rate fluctuations,
requirements for additional capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses, title
disputes or claims and limitations on insurance coverage. Generally, these
forward looking statements can be identified by the use of forward-looking
terminology such as "plans", "expects", or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or
"does not anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could", "would",
"might" or "will" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Peak Gold to be materially different
from those expressed or implied by such forward-looking statements, including
but not limited to: risks related to the integration of acquisitions; risks
related to international operations; actual results of current exploration
activities; actual results of current reclamation activities; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; future prices of gold and copper; possible variations in ore
reserves, grade or recovery rates; failure of plant; equipment or processes to
operate as anticipated; accidents; labor disputes and other risks of the
mining industry; delays in obtaining governmental approvals or financing or in
the completion of development or construction activities, as well as those
factors discussed in the section entitled "Risk Factors" in Peak Gold's Annual
Information Form dated December 18, 2007 and revised on February 25, 2008,
available at Although Peak Gold has attempted to identify
important factors that would cause actual results to differ materially from
those contained in forward-looking statements, there may be other factors that
cause results not to be as anticipated, estimated, or intended. There can be
no assurance that such statements will prove to be accurate. As actual results
and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements that are incorporated by reference herein, except
in accordance with applicable securities laws.

For further information:

For further information: Mélanie Hennessey, Vice President, Investor
Relations, Peak Gold Ltd., 3110-666 Burrard Street, Vancouver, British
Columbia, V6C 2X8, Telephone: (604) 696-4100, Toll-free: (888) 220-2760, Fax:
(604) 696-4110, Email:, Website:; Vanguard
Shareholder Solutions, 1205-1095 West Pender Street, Vancouver, British
Columbia, V6E 2M6, Telephone: (604) 608-0824, Toll Free: (866) 398-1088,

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