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Crowflight Minerals Inc.: Crowflight Reports Q3 2008 Financial Results

TORONTO, ONTARIO--(Marketwire - Nov. 19, 2008) - CROWFLIGHT MINERALS INC. (Crowflight, the Company) (TSX VENTURE:CML) today announced its financial results for the third quarter of 2008. Complete unaudited interim financial statements and related Management's Discussion and Analysis will be filed under the Company's profile on [ www.sedar.com ]. All amounts are in Canadian dollars unless otherwise indicated.

Q3 Highlights

- At September 30, 2008, cash and cash equivalents balances were $13.0 million. At the end of the third quarter 2008, the loan facility balance was $50.0 million.

- Net income for the quarter ended September 30, 2008 was $9.9 million ($0.04 per share) compared to a net loss of $2.2 million (loss of $0.01 per share) for the quarter ended September 30, 2007. This net income is attributed to a non-cash gain of $18.3 million related to the change in value of the forward sale contracts entered into in July 2008, as at September 30, 2008.

- Production of a nickel concentrate is scheduled to commence in November 2008. Bucko Lake Nickel Mine capital and development spending has totaled $25.1 million for the quarter and $57.7 million for the nine months ended September 30, 2008.

Unaudited Third Quarter 2008 Results

Cash used in Investing Activities during the quarter ended September 30, 2008 was $18.0 million compared to $11.1 million used in investing activities during the same period last year.

Cash spending on exploration and development of properties primarily in the Thompson Nickel Belt, Manitoba as well as the acquisition of capital assets related to exploration and development for the current quarter was $25.1 million, net of government assistance, compared to $12.1 million during the third quarter of 2007. Specifically, the Company used $25.1 million in cash in the development of the Bucko Lake Nickel Mine during the quarter.

During the nine months ended September 30, 2008 and 2007, the Company used $52.2 million compared to $20.1 million in investing activities, respectively. Cash spending on exploration and development properties primarily in the Thompson Nickel Belt, Manitoba as well as the acquisition of capital assets related to exploration and development for the nine months ended September 30, 2008 was $61.0 million, compared to $25.7 million during the same period in 2007. Specifically, the Company used $57.7 million in cash in the development of the Bucko Lake Nickel Mine during the period. The expected cost to complete the Bucko Lake Nickel Mine is $17 million. The Company has these funds available following the restructuring of its debt facility announced October 28, 2008, subsequent to the quarter's end. Additional capital compared to previous estimates is required due to lower pre-production revenues of $20 million due to lower projected nickel prices and lower nickel pre-production and higher project capital costs of $4 million.

The Company recognized a net income for the quarter ended September 30, 2008 of $9.8 million ($0.04 per share) compared to a net loss of $2.2 million (loss of $0.01 per share) for the quarter ended September 30, 2007. This net income is attributed to a non-cash gain of $18.3 million related to the change in value of the forward sale contracts entered into in July 2008, as at September 30, 2008.

The net income for the nine months ended September 30, 2008 was $5.5 million ($0.02 per share) compared to a net loss of $4.1 million (loss of $0.02 per share) for the nine months ended September 30, 2007. The majority of this variance is attributable to the non-cash gain of $18.3 million recognized on the change in value of the forward sale nickel contracts entered into in July.

At September 30, 2008, cash and cash equivalents balances were $13.0 million, compared to $9.0 million as at December 31, 2007.

The loan facility balance was $50.0 million as at September 30, 2008, which was subsequently reduced to $7.6 million in October following the restructuring of the debt facility, compared to nil as at December 31, 2007.

Outlook

For the balance of 2008, Crowflight will continue to focus on completion of the Bucko Lake Nickel Mine, expects to produce concentrate for shipment and will work toward ramping up to full production in early 2009.

CONSOLIDATED BALANCE SHEETS
As at
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 September 30, December 31,
 2008 2007
ASSETS (unaudited) (audited)
Current
 Cash and cash equivalents $ 13,039,999 $ 9,004,788
 Amounts receivable 1,145,451 1,281,466
 Prepaid expenses and deposits 144,566 276,164
 Current portion of derivative asset 3,620,873 -
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 17,950,889 10,562,418

Deposits and advances 536,709 952,263
Equipment 75,627 102,769
Derivative assets 14,647,107 -
Exploration property, plant and equipment
 and deferred exploration expenditures 137,615,537 76,596,884
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 $ 170,825,869 $ 88,214,334
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LIABILITIES
Current
 Accounts payable and accrued liabilities $ 15,775,537 $ 8,465,682
 Current portion of long term debt 8,122,356 -
 Equipment leases 121,200 188,856
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 24,019,093 8,654,538

Long term debt 39,548,701 -
Asset retirement obligations 352,000 331,000
Future income tax liability 10,983,000 2,490,000
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 74,902,794 11,475,538
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SHAREHOLDERS' EQUITY
Common Shares 95,421,561 86,671,512
Warrants 3,964,310 2,025,712
Contributed surplus 13,167,976 10,193,512
Deficit (16,630,772) (22,151,940)
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 95,923,075 76,738,796
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 $ 170,825,869 $ 88,214,334
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These financial statements should be read in conjunction with the notes and
management's discussion and analysis available online at [ www.sedar.com ] and
on the Company's website [ www.crowflight.com ].



CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
For the three and nine months ended September 30,
(UNAUDITED - prepared by management)
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 Three months ended Nine months ended
 September 30, September 30,
 2008 2007 2008 2007
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Expenses
Professional,
 consulting and
 management fees $ 704,210 $ 2,393,567 $ 2,642,092 $ 4,163,486
Shareholder
 communications and
 investor relations 39,182 32,987 287,429 286,976
General and office 128,439 105,253 328,083 227,416
Travel 32,173 10,770 142,405 114,686
Amortization 1,437 882 5,560 3,329
Interest expenses
 and bank charges 4,123 11,220 9,332 13,675
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 909,564 2,554,679 3,414,901 4,809,568
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(Loss) before the
 undernoted (909,564) (2,554,679) (3,414,901) (4,809,568)

Interest income 66,605 315,169 199,126 724,406
Interest on long
 term debt (482,309) - (901,140) -
General exploration (106,921) - (106,921)
Debt facility
 transaction costs (499,594) - (2,544,796) -
Accretion expense (299,695) - (789,180) -
Change in value
 of derivative
 instruments 18,267,980 18,267,980
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Income/(loss) before
 income taxes 16,036,502 (2,239,510) 10,710,168 (4,085,162)

Future income taxes (6,145,000) - (5,189,000) -
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Income/(loss) for
 the period 9,891,502 (2,239,510) 5,521,168 (4,085,162)

DEFICIT, beginning
 of period (26,522,274) (19,532,323) (22,151,940) (17,686,671)
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DEFICIT, end of
 period $(16,630,772) $(21,771,833) $(16,630,772) $(21,771,833)
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Earnings/(loss) per
 share - basic $ 0.04 $ (0.01) $ 0.02 $ (0.02)
Earnings/(loss) per
 share - diluted $ 0.04 $ (0.01) $ 0.02 $ (0.02)

Weighted average
 number of shares -
 basic 269,683,888 247,901,936 261,202,344 226,373,752
Weighted average
 number of shares -
 diluted 270,572,514 247,901,936 264,263,983 226,373,752
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These financial statements should be read in conjunction with the notes and
management's discussion and analysis available online at [ www.sedar.com ] and
on the Company's website [ www.crowflight.com ].




CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and nine months ended September 30,
(UNAUDITED - prepared by management)
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 Three months ended Nine months ended
 September 30, September 30,
 2008 2007 2008 2007
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OPERATING ACTIVITIES:
Net income/(loss)
 for the period $ 9,891,502 $ (2,239,510) $ 5,521,168 $ (4,085,162)
Charges not
 affecting cash:
 Amortization 1,437 882 5,560 3,329
 Stock-based
 compensation
 expense 508,473 1,699,259 2,047,060 3,216,483
 Debt facility costs 499,594 2,544,796 -
 Capitalized interest 203,525 - 622,356 -
 Accretion expense 299,695 - 789,180 -
 Change in value
 of derivative
 instruments (18,267,980) - (18,267,980) -
 Future income tax
 expense 6,145,000 - 5,189,000 -
Net change in
 non-cash working
 capital 83,954 818,524 (1,036,472) (856,884)
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 (634,800) 279,155 (2,585,332) (1,722,234)
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FINANCING ACTIVITIES:
Common shares issued
 through private
 placements - 364 10,184,706 21,411,350
Warrants issued
 through private
 placements - - - 1,359,375
Debt facility, net
 of transaction costs 39,500,406 - 62,673,758 -
Retirement of debt
 facility (15,000,000) - (15,000,000) -
Shares issued from
 exercise of
 warrants and
 options 11,250 954,000 1,015,866 8,358,789
Payments on equipment
 leases (20,312) - (67,656)
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 24,491,344 954,364 58,806,674 31,129,514
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INVESTING ACTIVITIES:
Exploration property,
 plant and equipment,
 and deferred
 exploration
 expenditures (25,076,313) (12,094,968) (60,997,071) (25,684,841)
(Increase) decrease
 in deposits and
 prepaid exploration
 expenditure - 62,915 318,554 408,882
(Decrease) increase
 in accounts payable
 attributable to
 property exploration 6,888,246 953,660 8,492,386 4,495,369
Property, plant and
 equipment - (12,503) - (65,723)
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 (18,188,067) (11,090,896) (52,186,131) (20,846,313)
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CHANGE IN CASH AND
 CASH EQUIVALENTS $ 5,668,477 $ (9,857,377) $ 4,035,211 $ 8,560,967
CASH AND CASH
 EQUIVALENTS,
 beginning of
 period $ 7,371,522 $ 32,219,264 $ 9,004,788 $ 13,800,920
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CASH AND CASH
 EQUIVALENTS, end
 of period $ 13,039,999 $ 22,361,887 $ 13,039,999 $ 22,361,887
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Cash and cash
 equivalents
 consists of:
Cash 5,488,999 914,971 5,488,999 914,971
Equivalents 7,551,000 21,446,916 7,551,000 21,446,916
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 $ 13,039,999 $ 22,361,887 $ 13,039,999 $ 22,361,887
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These financial statements should be read in conjunction with the notes and
management's discussion and analysis available online at [ www.sedar.com ] and
on the Company's website [ www.crowflight.com ].

Crowflight Minerals - Canada's Next Nickel Producer

Crowflight Minerals Inc. (TSX VENTURE:CML) is a Canadian junior mining company that is bringing the Bucko Lake Nickel Mine near Wabowden, Manitoba into production. Full commercial production is expected to be achieved at Bucko in early 2009. The Company is also focused on nickel, copper and Platinum Group Mineral (PGM) projects in the Thompson Nickel Belt and Sudbury Basin.

Cautionary Note on Forward-Looking Information

Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding estimated capital and operating costs, expected production timeline, benefits of updated development plans, foreign exchange assumptions and regulatory approvals. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

TSX-V Trading Symbol: CML
Total Shares Outstanding: 269.7MM
Fully Diluted: 307.9MM
52-Week Trading Range: C$0.09 - $0.80

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