WESDOME REPORTS Q3 FINANCIAL RESULTS

TORONTO, Nov. 15 /CNW/ - Wesdome Gold Mines Ltd (WDO: TSX) ("Wesdome" or the "Company") is pleased to report its unaudited financial and operating results from its Canadian operations for the third quarter ended September 30, 2010. This information should be read in conjunction with the Company's interim unaudited financial statements and Management's Discussion and Analysis for the third quarter ended September 30, 2010 which will be available for viewing on the Company's website at www.wesdome.com and on SEDAR (www.sedar.com). All figures are in Canadian dollars unless otherwise specified.

The Company owns the Eagle River gold mining operation in Wawa, Ontario and the Kiena mine complex in Val d'Or, Quebec.  The Eagle River mine commenced commercial production on January 1, 1996, and the Kiena mine on August 1, 2006.

The third quarter 2010 highlights are as follows:

• Production of 15,131 ounces
• Revenues of $20.7 million on sales of 16,000 ounces at $1,295 per ounce
• Cash flow from operations of $3.8 million or $0.04 per share
• Bullion inventory of 10,394 ounces or $14.0 million marked to market as at September 30, 2010

Donovan Pollitt, President & CEO comments "The third quarter involved a net investment in drilling and new project development.  It is becoming clear at this point in the year that these judicious investments will pay dividends with increased year end reserves and a production growth profile moving forwards."

OVERALL PERFORMANCE

As at September 30, 2010, the Company had working capital of $31.9 million.  During the first nine months of 2010, cash flow from operations totalled $14.0 million; $14.9 million of capital investments in exploration, development and mining equipment were made and $2.0 million in dividends were paid.  Net income for the nine month period ended September 30, 2010, was $2.0 million with most of this earned in the first quarter.

Both mines are currently producing from low grade areas in their mining sequences.  We are aggressively developing new zones, upgrading our mining fleet, advancing growth projects and drilling.

RESULTS OF OPERATIONS

		Three Months Ended Sept 30		Nine Months Ended Sept 30
		2010	2009	2010	2009
Eagle River Mine
	Tonnes milled	42,886	36,839	116,273	102,034
	Recovered grade (g/t)	6.3	14.5	7.1	14.7
	Production (oz)	8,620	17,183	26,708	48,251
	Sales (oz)	8,000	11,000	30,000	41,300
	Bullion inventory (oz)	8,789	14,578	8,789	14,578
	Bullion revenue ($thousands)	10,375	11,807	36,677	45,106
	Operating costs ($thousands)	6,920	5,722	23,941	20,622
	Mine operating profit ($thousands) *	3,450	6,085	12,736	24,484
	Gold price realized ($Cdn/oz)	1,295	1,071	1,221	1,094
Kiena Mine Complex
	Tonnes milled	67,044	87,264	200,776	212,498
	Recovered grade (g/t)	3.0	3.3	3.2	3.9
	Production (oz)	6,511	9,383	20,654	26,708
	Sales (oz)	8,000	9,000	21,000	27,400
	Bullion inventory (oz)	1,605	2,260	1,605	2,260
	Bullion revenue ($thousands)	10,381	9,651	26,072	30,106
	Operating costs ($thousands)	9,170	7,536	21,858	22,542
	Mine operating profit ($thousands) *	1,211	2,115	4,214	7,564
	Gold price realized ($Cdn/oz)	1,295	1,071	1,239	1,097
Total
	Production (oz)	15,131	26,566	47,362	74,959
	Sales (oz)	16,000	20,000	51,000	68,700
	Bullion inventory (oz)	10,394	16,838	10,394	16,838
	Bullion revenue ($thousands)	20,756	21,458	62,749	75,212
	Operating costs ($thousands)	16,090	13,258	45,799	43,164
	Mine operating profit ($thousands) *	4,666	8,200	16,950	32,048
	Gold price realized ($Cdn/oz)	1,295	1,071	1,228	1,095

*

The Company has included in this report certain non-GAAP performance measures, including mine operating profit and operating costs to applicable sales. These measures are not defined under GAAP and therefore should not be considered in isolation or as an alternative to or more meaningful than, net income (loss) or cash flow from operating activities as determined in accordance with GAAP as an indicator of our financial performance or liquidity. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company's performance and ability to generate cash flow.

During the third quarter, combined operations produced 15,131 ounces of gold and 16,000 ounces were sold at an average price of $1,295 per ounce.  Bullion inventory at September 30, 2010, stood at 10,394 ounces which is carried at cost.  The costs and revenues for this inventory will be recognized in the financial statements in the fiscal period in which it is sold.

In the third quarter, bullion revenue exceeded operating costs resulting in a mine operating profit, or gross margin, of $4.6 million.  In addition to these direct operating costs, other costs, including royalty payments, corporate and general costs and interest costs, totalled $1.1 million.  Eagle River Mine and Kiena Mine contributed $3.4 million and $1.2 million to the mine operating profit, respectively.

At the Eagle River mine, mining occurred in lower grade areas.  We are currently developing the high grade 811 Zone and expect production grades to improve in the subsequent periods.  The mine produced 8,620 ounces of gold from 42,886 tonnes milled at an average recovered grade of 6.3 gAu/tonne.

At the Kiena mining complex we worked efficiently through a low grade sequence.  For the third quarter, Kiena produced 6,511 ounces of gold from 67,044 tonnes milled at an average recovered grade of 3.0 gAu/tonne.

The Company is undertaking an aggressive exploration, development and evaluation program this year with the goal of increasing reserves and growing production.  At the Kiena mining complex drifting towards the new Dubuisson discovery on the 330 metre level advanced on schedule.  Infill drilling enhanced potential to replace and increase reserves.

At Eagle River, definition drilling continues to exhibit high grades and continuity in the 811 Zone between depths of 500 and 800 metres (see press release dated September 20, 2010).

Highlights of the drilling include the following consecutive holes drilled on section 9375E:

	EU-374				70.14 gAu/tonne over 1.97 metres true width
	EU-375				45.12 gAu/tonne over 1.92 metres true width
	EU-376				37.03 gAu/tonne over 2.75 metres true width
	EU-377				38.77 gAu/tonne over 5.82 metres true width
	EU-378				43.55 gAu/tonne over 4.90 metres true width

This year's drilling clearly demonstrates much higher grades than previously indicated.  This should have a positive impact on our year-end reserve estimates.

Resource modelling at the Mishi Project continues to demonstrate potential that exceeds expectations.  A new resource estimate tallied Measured Resources of 280,900 tonnes at 2.46 gAu/tonne and Indicated Resources of 5,455,300 tonnes at 2.37 gAu/tonne for a total of 438,000 ounces of contained gold (see press release dated July 12, 2010).  The independent "Qualified Persons" for this National Instrument 43-101 compliant Mineral Resource estimate are Carl Pelletier, PGeo and Karine Brosseau, P.Eng. of Innovexplo Inc. (For full details please reference the Technical Report dated August 25, 2010 available at www.sedar.com).  Ninety percent of this total falls within an open pit scenario above a depth of 110 metres.  A pre-feasibility study on a starter pit scenario is well advanced.  This project offers excellent potential for expansion in a step-wise manner with little capital at risk.

Subsequent to the end of the third quarter at Eagle River we experienced a main transformer failure.  Work is in progress to remedy this issue.  Currently we do not anticipate losing any milling days and have sufficient stockpiles to cover any deferred mine output.

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2010 the Company had working capital of $31.9 million, compared to $35.2 million at December 31, 2009.  During the third quarter, 2010, capital expenditures totalled $6.0 million compared to $4.6 million in the third quarter, 2009.

The Company's inventory includes 10,394 ounces of gold bullion, a decrease from 11,263 ounces at the end of the second quarter, a liquid asset with a market value of $14.0 million on September 30, 2010.

The Company believes that it has sufficient capital resources to cover its obligations, capital and operating costs going forward.  On April 30, 2010, the Company paid a dividend of $0.02 per share.

Production planned in 2010 should generate operating cash flow, even at gold prices well below those currently being realized.

OUTLOOK

We are currently forecasting 65,000 - 70,000 ounces of production in 2010.  Although we may come in about 5% under initial estimates, our gold sales prices are over 20% higher.

It remains a year of development and judicious capital investments in low risk growth projects surrounding our existing infrastructure.  Both the Mishi project and Dubuisson Zone projects advanced on schedule.

These projects, plus aggressive development of higher grade portions of the mines, put us in a strong position looking forward.

ABOUT WESDOME

Wesdome is an established Canadian gold producer with wholly-owned mining and milling complexes located in Wawa, Ontario and Val d'Or, Québec.  Wesdome has been producing gold continually for 20 years on an unhedged basis and to date has produced in excess of 1.0 million ounces.  The Company has 101.1 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol "WDO".

This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. 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. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

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Wesdome Gold Mines Ltd.
Consolidated Balance Sheets
(Unaudited)

		September 30	December 31
		2010	2009
(in thousands)
Assets
Current
	Cash and cash equivalents	$   21,538	$   23,702
	Receivables	3,427	4,022
	Inventory	16,002	14,624
	Marketable securities	-	211
	Future income taxes	1,199	1,199
		42,166	43,758
Restricted funds		2,460	2,588
Future income taxes		1,645	2,245
Capital assets		-	9
Mining properties		70,715	64,637
Exploration properties		30,681	30,018
		$  147,667	$  143,255
Liabilities
Current
	Payables and accruals	$     8,816	$     7,322
	Current portion of obligations under capital leases	1,426	1,240
		10,242	8,562
Income taxes payable		82	82
Obligations under capital leases		1,998	1,108
Convertible 7% debentures		9,916	9,483
Asset retirement obligation		1,351	1,324
		23,589	20,559
Minority interest in Moss Lake Gold Mines Ltd.		749	857
Shareholders' Equity
Capital stock		115,652	114,567
Contributed surplus		3,946	3,770
Accumulated other comprehensive loss		-	(222)
Equity component of convertible debentures		1,970	1,970
Retained earnings		1,761	1,754
		123,329	121,839
		$  147,667	$  143,255

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Wesdome Gold Mines Ltd. Interim Consolidated Statements of Income and Comprehensive Income

		Three Months Ended Sept 30		Nine Months Ended Sept 30
		2010	2009	2010	2009
(in thousands, except per share amounts)
Revenue
	Gold and silver bullion	$ 20,756	$ 21,458	$ 62,749	$ 75,212
	Interest and other	113	31	394	106
		20,869	21,489	63,143	75,318
Costs and expenses
	Operating costs	16,090	13,258	45,799	43,164
	Amortization of mining properties	3,828	3,387	10,380	9,248
	Production royalties	225	264	650	832
	Corporate and general	446	504	1,722	1,452
	Stock compensation expense	323	48	488	240
	Interest on long-term debt	405	412	1,194	1,203
	Other interest	-	8	-	15
	Amortization of capital assets	-	-	9	1
	Accretion of asset retirement obligation	9	11	27	52
		21,326	17,892	60,269	56,207
Net income (loss) before the following		(666)	3,597	2,512	19,111
Gain on property held for sale		-	-	-	122
Loss on sale of marketable securities (Note 8)		(209)	-	(362)	-
Net income (loss) before income tax and minority interest		(666)	3,597	2,512	19,233
Income tax
	Future	-	-	(600)	(273)
Net income (loss) before minority interest		(666)	3,597	1,912	18,960
Minority interest		82	13	108	43
Net income (loss)		(584)	3,610	2,020	19,003
Other comprehensive loss:
	Realized loss on the sale of marketable securities	118	-	222	-
	Change in fair value of marketable securities	76	-	-	-
Comprehensive income (loss)		$     (390)	$   3,610	$   2,242	$ 19,003
Net income (loss) per common share
	Basic and diluted	$    (0.00)	$     0.04	$     0.02	$    0.19

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Wesdome Gold Mines Ltd. Interim Consolidated Statements of Cash Flows

		Three Months Ended Sept 30		Nine Months Ended Sept 30
		2010	2009	2010	2009
(in thousands)
Operating activities
	Net income (loss)	$   (584)	$  3,610	$  2,020	$ 19,003
	Amortization of mining properties	3,828	3,387	10,380	9,248
	Accretion of discount on convertible debentures	149	131	433	396
	Minority interest	(82)	(13)	(108)	(43)
	Stock compensation expense	323	48	488	240
	Amortization of capital assets	-	-	9	1
	Future income taxes	-	-	600	273
	Gain on sale of equipment	(95)	91	(225)	84
	Gain on property held for sale	-	-	-	(122)
	Loss on sale of marketable securities	209	-	362	-
	Gain on redemption of convertible debentures	-	-	-	(24)
	Accretion of reclamation asset obligation	9	11	27	52
		3,757	7,265	13,986	29,108
	Net changes in non-cash working capital	2,943	1,799	615	(5,822)
		6,700	9,064	14,601	23,286
Financing activities
	Exercise of options	218	339	800	527
	Funds paid to repurchase common shares under NCIB	-	(24)	-	(38)
	Funds paid to repurchase debentures	-	-	-	(453)
	Share issuance costs	-	(100)	(27)	(105)
	Dividends paid	-	-	(2,013)	(1,995)
	Repayment of obligations under capital leases	(399)	(767)	(1,162)	(1,571)
		(181)	(552)	(2,402)	(3,635)
Investing activities
	Additions to mining and exploration properties	(5,952)	(4,643)	(14,892)	(11,707)
	Proceeds on sale of equipment	78	300	234	320
	Proceeds on sale of marketable securities	38	-	71	-
	Proceeds on property held for sale	-	-	-	400
	Funds held against standby letters of credit	40	(56)	128	(323)
		(5,796)	(4,399)	(14,459)	(11,310)
	Net changes in non-cash working capital	104	111	96	(138)
		(5,692)	(4,288)	(14,363)	(11,448)
Increase (decrease) in cash and cash equivalents		827	4,224	(2,164)	8,203
Cash and cash equivalents, beginning of period		20,711	12,008	23,702	8,029
Cash and cash equivalents, end of period		$ 21,538	$ 16,232	$ 21,538	$ 16,232

For further information:

For further information, please contact:

					Donovan Pollitt, P.Eng., CFA			or			Shelly John
					President and CEO						Manager, Investor Relations

8 King St. East, Suite 1305
Toronto, ON, M5C 1B5
Toll Free: 1-866-4-WDO-TSX
Phone: [phone], Fax: [phone]
Email: [email protected], Website: www.wesdome.com