Synex International Inc first quarter of fiscal 2012


VANCOUVER, Nov. 8, 2011 /CNW/ - For the three months ended September 30, 2011 ("Q1 2012"), revenue from energy sales and consulting increased to $828,377 as compared to $424,526 in the corresponding period in fiscal 2011 ("Q1 2011").  This increase in revenue is due to increases in electricity sales from each of the Mears Plant, the Cypress Plant and the Kyuquot Utility and an increase in consulting revenue.

The net loss for Q1 2012 was $89,790 as compared to a net loss of $73,866 in Q1 2011.  A net loss in the first quarter is expected as the generation from hydro plants in the first quarter normally represents less than 10% of annual forecast generation.  In Q1 2011, the Company had income of $300,000 from the proceeds of an option to a third party for the purchase of some water licences and related rights of the Engineering Division of the Company  (the "Option Payment").  Excluding the Option Payment, Q1 2012 is improved from Q1 2011 by about $283,882 with the higher revenues from operations being only partly offset by higher interest on long term debt and higher salaries, general and administrative expenses.  The loss per share in Q1 2012 was $0.00 as compared to a loss per share of $0.00 in Q1 2011.

On August 19, 2010, the Company announced that the Engineering Division had entered into an Option Agreement dated July 23, 2010 with an unrelated third party.  The Option Agreement provides the third party with the right to purchase a number of applications for water licences and land tenures held by the Engineering Division as well as other related rights.  The Option Agreement has a latest exercise date of December 2011.  In a partly related transaction to the Option Agreement, during the spring of Fiscal 2010, the Company participated as a bidder in the purchase of the assets from the Receiver for Hawkeye Energy Corporation ("HEC").  During the Court process to approve the sale of the HEC assets to the Company, Hawkeye Power Corporation ("HPC") opposed the sale on the basis of an unregistered prior right to the assets.  During Q2012, the Company and HPC completed the trial procedure and a decision of the Court is now pending.

During Q1 2012, the Barr Creek Limited Partnership ("BCLP") and its general partner Barr Creek Hydro Ltd. ("BCHL") continued to advance the Barr Creek Hydro Project (the "Barr Project").  The Company holds an 80% interest in BCLP and BCHL with the Ehattesaht Tribe holding the remaining 20% of BCLP and BCHL.  As of September 30, 2011, construction of the Barr Project was about 70% complete.  The current schedule is for substantial completion of the Barr Project before the end of calendar 2011.

In late December 2004, the Company invested $500,000 for a 12.5% share of the Upnit Power Limited Partnership, which included a 12.5% share of the General Partner of the Limited Partnership ("Upnit").  During July 2011, Upnit executed an amendment to its loan agreement which included for the term of the loan to be extended for five years beyond July 15, 2011.

At September 30, 2011, the Company had a cash balance of $359,225.  Loans payable at September 30, 2011 included a current portion of $9,198,979 and a non-current portion of $6,456,699.  The Company is continuing to utilize much of its free cash flow to support development of the Barr Project.

The Company has commenced reporting financial results under IFRS as of the first quarter of 2012.  The financial results under IFRS are not significantly different than the financial results would have been under GAAP, although there has been a reduction in assets due primarily to differences in amortization treatment between  IFRS and GAAP.

The Company has applications for water licences and land tenure on over 70 potential hydroelectric sites and is currently advancing the development of two proposed new hydroelectric plants on Vancouver Island.

Synex International Inc. is a public company, trading on the TSX since 1987, with business interests that cover the development, ownership and operation of electrical generation facilities and the provision of consulting engineering services in water resources, particularly hydroelectric facilities.



Greg Sunell, President

This press release contains forward-looking statements that involve risks and uncertainties. These statements reflect our current expectations and are subject to change. They are subject to a number of risks and uncertainties including, but not limited to, changes in economic conditions, risks associated with the construction and operation of hydroelectric facilities and changes in government policies.

SOURCE Synex International Inc.

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