Marlowe Regulatory News (MRL)

8 May 2007 07:00

Medoro Resources Announces 2006 Year-End Results

TORONTO, May 7 /CNW/ - Medoro Resources Ltd. announced today results for the year ended December 31, 2006.

For the year ended December 31, 2006, Medoro reported a net loss of $2.1 million or $0.05 per share as compared to a net loss of $11.0 million or $0.67 per share in the previous year. The 2006 net loss largely reflects the gain on the sale of the Monte Ollasteddu property of $0.3 million, a recovery on note and share receivable of $0.9 million, foreign exchange gains and other income of $1.2 million, partially offset by corporate and operating costs of $4.8 million. The loss in the previous year included a $5.6 million provision on the note and share receivable and a $5.4 million loss on the disposal of mineral properties. Net loss for the fourth quarter ended December 31, 2006 was $1.7 million or $0.04 per share compared to a net loss of $6.0 million or $0.06 per share in the previous year. As at December 31, 2006 the company had cash and short-term investments of $13.4 million and no debt.

Subsequent to the end of the year, the company entered into an agreement to pay US$720,000 for the option to acquire all of the issued and outstanding shares of African Gold Resources, S.A., a Panamanian company, which has the options to acquire nine properties in Mali. Upon the exercise of the option to purchase African Gold Resources, S.A. the Company will pay US$2,430,000 and issue 6,000,000 shares as consideration.

The company also announced that its report and accounts for the year ended December 31, 2006 and the information circular, notice of meeting and proxy for the company's annual meeting to be held on May 31, 2007 at 2:00 p.m. (Toronto time) in Conference Room F, Mezzanine Level of the Sheraton Centre Toronto Hotel, 123 Queen Street West, Toronto, Ontario, M5H 2M9, have been sent to its shareholders. Copies of these documents may be obtained during normal business hours on weekdays (except Saturdays, Sundays and public holidays) free of charge from the Secretary of the company at the company's head office at 110 Yonge Street, Suite 1502, Toronto, Ontario, M5C 1T4, (416) 603-4653. In addition, these documents are also available on the SEDAR website at www.sedar.com.

Medoro Resources is a gold exploration and development company focused on acquiring properties of merit for potential joint ventures with senior producers. The company holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela. Additional information on Medoro Resources can be found by visiting the company's website at www.medororesources.com.

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For further information: Peter Volk, Secretary, (416) 603-4653, pvolk(at)medororesources.com (MRS.)