Silver Bear Announces Third Quarter Results

TORONTO, Nov. 9 /CNW/ - Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR) today announces financial results for the third quarter ended September 30, 2009, prepared in accordance with Canadian generally accepted accounting principles ("GAAP"). All dollar amounts are stated in Canadian dollars unless otherwise indicated. Highlights of the third quarter include:

    
    -   At September 30, 2009, Silver Bear had cash and cash equivalents of
        $13.2 million

    -   Exceeded 2009 drilling and trenching requirements per the exploration
        license
    

"During the challenging financial markets experienced over the last twelve months, Silver Bear has continued to maintain its focus on cash management," said Randall Oliphant, President and Chief Executive Officer. "With over thirteen million dollars in cash and no debt, the Company remains well capitalized and thus plans to complete a review of all strategic alternatives available to the Company in order to maximize shareholder returns."

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

    Net Loss
    --------
    

Silver Bear incurred a net loss for the nine-month period ended September 30, 2009 of $11.4 million or $0.30 per share. This compares to a loss of $13.7 million or $0.37 per share for the nine-month period ended September 30, 2008. Exploration costs were $8.1 million in the nine-month period ended September 30, 2009 compared with $11.9 million in the nine-month period ended September 30, 2008, as the Company benefited from a more efficient winter road resupply, fuel price savings, reduced overhead, receipt of a Russian value added tax (VAT) refund and the fact that a geophysical study completed in 2008 was not required in 2009. General and administrative expenses for the period ended September 30, 2009 were $1.9 million compared with $3.2 million in the prior period as the Company reduced legal, corporate office and salary related costs. Non-cash items for the period ended September 30, 2009 were $1.5 million compared with $1.7 million in the period ended September 30, 2008. Interest income for the nine-month period ended September 30, 2009 was $0.1 million compared with $0.6 million in the prior period.

Silver Bear incurred a net loss for the three-month period ended September 30, 2009 of $3.6 million or $0.10 per share. This compares to a loss of $8.3 million or $0.22 per share for the three-month period ended September 30, 2008. Exploration costs were $2.9 million in the three-month period ended September 30, 2009 compared with $7.2 million in the three-month period ended September 30, 2008 for reasons consistent with those discussed in the nine-month period comparison. General and administrative expenses for the three-month period ended September 30, 2009 were $0.4 million compared with $0.6 million in the three month-period ended September 30, 2008. Non-cash items for the three-month period ended September 30, 2009 was $0.4 million compared to $0.6 million in the three-month period ended September 30, 2008.

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

At September 30, 2009, Silver Bear had cash and cash equivalents of $13.2 million. The Company has no debt outstanding.

    
    Update - Mangazeisky Project
    ----------------------------
    

During the 2009 drilling season commencing in May and ending in October, Silver Bear drilled 74 holes for a total of 12,373 metres. In addition, 15,067 cubic metres of trenching were completed. Both the drilling and trenching significantly exceeded the 2009 license requirements of 3,000 metres and 10,000 metres of drilling and trenching, respectively. Silver Bear was able to complete the drilling and trenching program well in excess of the budgeted 10,000 metres at lower than budgeted costs. Silver Bear today released an update on its 2009 exploration program and an updated mineral resource estimate, "Silver Bear Announces Upgrade of 18 Million Ounces of Silver to Indicated Category Plus Additional 29 Million Ounces of Inferred Resource".

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

The primary business of the Company is the evaluation, acquisition, exploration and development of silver properties in the Russian Federation. 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.

Silver Bear is currently evaluating strategic alternatives available to the Company in an effort to maximize shareholder returns. This may include continued exploration/development of the Mangazeisky Project, joint venture of the Project, or combination or other strategic transaction 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 website at www.silverbearresources.com.

    
    Silver Bear Resources Inc.
    (an exploration stage enterprise)
    Consolidated Balance Sheets
    (Canadian dollars)
    (unaudited)

                                                  September 30,  December 31,
                                                  ------------- -------------
                                                      2009          2008

    Assets

    Current assets
    Cash and cash equivalents                     $ 13,179,442  $ 24,170,023
    Other receivable                                     8,924        75,538
    Inventories                                      1,365,382     1,142,408
    Prepaid expenses                                   283,851       666,396
                                                  ------------- -------------

                                                    14,837,599    26,054,365

    Capital assets
    Mineral properties                               1,265,117     1,265,117
    Property, plant and equipment                    2,143,495     2,520,265
    Asset held for sale                                944,150       944,150

                                                  ------------- -------------
                                                  $ 19,190,361  $ 30,783,897
                                                  ------------- -------------
                                                  ------------- -------------
    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities      $    507,177  $  1,013,888

    Long-term liabilities
    Asset retirement obligation                        599,225       570,711

    Shareholders' equity

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

    Contributed surplus                              8,946,911     8,621,876

    Deficit                                        (64,634,241)  (53,193,867)

                                                  ------------- -------------
                                                    18,083,959    29,199,298
                                                  ------------- -------------

                                                  ------------- -------------
                                                  $ 19,190,361  $ 30,783,897
                                                  ------------- -------------



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

                          Three Months Ended           Nine Months Ended
                      September 30, September 30, September 30, September 30,
                      ------------- ------------- ------------- -------------
                          2009          2008          2009          2008

    Income
      Interest income $     14,806  $    137,914  $     88,640  $    603,308
                      ------------- ------------- ------------- -------------

    Expenses
      Exploration
       costs             2,880,980     7,206,937     8,149,034    11,851,297
      General and
       administrative      434,209       603,169     1,852,550     3,230,726
      Stock option
       compensation        (20,380)      292,302       325,035     1,021,759
      Amortization         187,628       195,111       562,214       732,502
      Accretion expense      9,508         3,794        28,514        11,376
      Loss on disposal
       of property,
       plant and equipment       -             -        11,631             -
      Foreign exchange
       loss (gain)         170,839       151,493       600,037       (46,159)
                      ------------- ------------- ------------- -------------
    Expenses from
     continued
     operations          3,662,783     8,452,806    11,529,014    16,801,501
                      ------------- ------------- ------------- -------------

      Non-controlling
       interest                  -             -             -       (33,179)

    Loss and
     Comprehensive
     Loss for the year
     from continued
     operations         (3,647,977)   (8,314,892)  (11,440,374)  (16,165,014)

    Discontinued
     operations                  -             -             -     2,502,027

                      ------------- ------------- ------------- -------------
    Net Loss            (3,647,977)   (8,314,892)  (11,440,374)  (13,662,987)
                      ------------- ------------- ------------- -------------

    Deficit -
     Beginning of
     the period        (60,986,264)  (40,840,324)  (53,193,867)  (35,492,229)

                      ------------- ------------- ------------- -------------
    Deficit - End
     of the period    $(64,634,241) $(49,155,216) $(64,634,241) $(49,155,216)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Weighted average
     number of common
     shares
     outstanding        37,935,569    37,066,717    37,935,569    36,841,555

    Income (loss) per
     share from
     continued
     operations       $      (0.10) $      (0.22) $      (0.30) $      (0.44)
    Income (loss) per
     share from
     discontinued
     operations                  -             -             -          0.07
                      ------------- ------------- ------------- -------------
    Loss per share    $      (0.10) $      (0.22) $      (0.30) $      (0.37)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------



    Silver Bear Resources Inc.
    (an exploration stage enterprise)
    Consolidated Statements of Cash Flows
    (Canadian dollars)
    (unaudited)

                          Three Months Ended           Nine Months Ended
                      September 30, September 30, September 30, September 30,
                      ------------- ------------- ------------- -------------
                          2009          2008          2009          2008

    Cash provided by
     (used in)

    Operating
     activities
    Loss from
     Continuing
     operations       $ (3,647,978) $ (8,314,892) $(11,440,374) $(16,165,014)

    Items not
     affecting cash:
      Amortization         187,628       195,111       562,214       732,502
      Accretion expense      9,508         3,794        28,514        11,376
      Stock option
       compensation        (20,380)      292,303       325,035     1,021,759
      Loss on disposal
       of property,
       plant and
       equipment                 -             -        11,631             -
    Net change in
     non-cash working
     capital              (424,570)      778,964      (245,467)    1,861,823

                      ------------- ------------- ------------- -------------
    Net cash from
     continuing
     operations         (3,895,793)   (7,044,720)  (10,758,448)  (12,537,554)
                      ------------- ------------- ------------- -------------

    Financing
     activities
      Issuance of
       common shares             -     4,434,420             -     5,779,977
      Non-controlling
       interest                  -             -             -          (127)

                      ------------- ------------- ------------- -------------
                                 -     4,434,420             -     5,779,850
                      ------------- ------------- ------------- -------------

    Investing
     activities
      Acquisition of
       property,
       plant and
       equipment            (1,573)     (807,372)     (232,133)   (3,055,484)

                      ------------- ------------- ------------- -------------
                            (1,573)     (807,372)     (232,133)   (3,055,484)
                      ------------- ------------- ------------- -------------

    Decrease in cash
     and cash
     equivalents
     during the period  (3,897,366)   (3,417,672)  (10,990,581)   (9,813,188)

    Increase in cash
     and cash
     equivalents
     during the period
     from discontinued
     operations                  -             -             -     8,186,979

    Cash and cash
     equivalents -
     beginning of
     the period         17,076,808    32,087,043    24,170,023    30,295,580

                      ------------- ------------- ------------- -------------
    Cash and cash
     equivalents -
     end of the
     period           $ 13,179,442  $ 28,669,371  $ 13,179,442  $ 28,669,371
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------


    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. 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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