Whitemud Resources reports 2006 annual financial results


    CALGARY, April 5 /CNW/ - Whitemud Resources Inc. ("Whitemud" or the
"Company") (WMK - TSXV) is pleased to announce its results for the year ended
December 31, 2006. The financial statements along with management's discussion
and analysis are available for viewing on the Whitemud website at
www.whitemudresources.com and on SEDAR (www.SEDAR.com).

    Financial Highlights

                                                                Eight Months
                                                   Year ended          ended
                                                  December 31,   December 31,
                                                         2006           2005
    Revenue                                               Nil            Nil
    Interest income                               $    80,033    $    20,644
    Loss for the period                           $(2,388,424)   $  (555,796)
    Net Loss per Share (basic and diluted)        $     (0.32)   $     (0.11)
    Total Assets                                  $12,008,438    $ 1,954,014
    Total Long Term Liabilities                           Nil            Nil
    Net Working Capital                           $   144,434    $ 1,231,971
    Cash and Cash Equivalents                     $ 1,479,770    $ 1,470,878

    For the year ended December 31, 2006, Whitemud recorded a net loss of
$2,388,424 ($0.32 per common share) compared to a loss of $555,796 ($0.11 per
common share) for the eight months ended December 31, 2005. 2006 represented
the first full year of operations for Whitemud since the Company was
established on April 28, 2005. Total expenses increased from $576,440 in 2005
to $2,468,457 in 2006 relating to increased activity levels and expansion of
its employee base from 4 to 11 employees along with a full 12 months reporting
period compared to 8 months in 2005.
    At December 31, 2006 the Company had cash of $1,479,770 (2005 -
$1,470,878) and working capital of $144,434 (2005 - $1,231,971).
    During 2006 Whitemud's capital expenditures for property, plant and
equipment totalled $8,724,503 compared to $106,014 in 2005. In addition,
Whitemud capitalized $905,648 to acquire and evaluate mineral properties
compared to $331,366 in 2005.
    In 2006 Whitemud issued 2,106,200 common shares through private
placements for gross proceeds of $10,531,000.

    Key Accomplishments

    The following is a summary of the key accomplishments of Whitemud
Resources during 2006:

    -   Raised $10,531,000 through private placements
    -   Completed a mineral resource and mineral reserve estimate and a pre-
        feasibility study for the project which conforms to National
        Instrument 43-101 standards
    -   Received environmental approval for the mine and plant
    -   Executed a contract to purchase the major processing equipment
    -   Completed initial site preparation for the plant
    -   Selected a design & build contractor to construct the plant
    -   Secured letters of intent to purchase product from key customers
        totaling up to 200,000 tonnes annually

    Subsequent to December 31, 2006, Whitemud closed an IPO for total gross
proceeds of $54,200,000. Whitemud shares were listed on the TSX Venture
Exchange and trading commenced on February 28, 2007. Proceeds of the IPO will
be used to complete the construction of the Gollier Creek processing plant and
mine and provide start-up working capital.


    Whitemud's goal is to exploit the extensive kaolin resources in southern
Saskatchewan and become the leading North American supplier of metakaolin to
the concrete and cement industries. The Company's principal targets for 2007
are to:

    -   Complete construction of the Gollier Creek processing plant
    -   Initiate mine operations and stockpile ore for the plant start-up
    -   Finalize sales and delivery arrangements with existing customers and
        develop additional markets
    -   Conduct a drilling program to upgrade and add to kaolin resources

    Progress to date is on budget and on schedule to complete plant
construction by year end.

    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
heading "Outlook". 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 including its ability to complete the plant construction on budget
and schedule may be affected by a variety of variables and risks associated
with the mining and mineral processing industry such as availability of human
and capital resources to complete construction, 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 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'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 further information:

For further information: Burl Aycock, Chairman and CEO, Whitemud
Resources, Telephone: (403) 695-1012; Ron Love, Vice-President, Finance and
Chief Financial Officer, Telephone: (403) 517-0043; Kelly Babichuk, President
and COO, Whitemud Resources, Telephone: (403) 517-0042; Kevin Graham,
Vice-President, Communications, Whitemud Resources, Telephone: (403) 517-0041

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