Elgin Mining reports second quarter 2010 results

TORONTO, Aug. 12 /CNW/ - Elgin Mining Inc. (TSX: ELG) (formerly Phoenix Coal Inc., TSX: PHC) ("Elgin" or the "Company") reported its financial results for the three and six months ended June 30, 2010. The consolidated financial statements for the three and six months ended June 30, 2010 and notes thereto, along with Management's Discussion and Analysis are available at www.sedar.com and www.elginmining.com. Unless otherwise noted, all financial information is expressed in U.S. dollars.

    
    Second Quarter 2010 Highlights

    -   In May 2010, the Company sold the Gryphon Reserves to a major U.S.
        coal producer for $23 million in cash. The sale resulted in a loss of
        approximately $528,000. As a result of the sale of the Gryphon
        Reserves, the Company's ongoing operations consist primarily of
        reclamation work performed at depleted surface mining locations and
        undertakings related to the transition of the Company from coal
        mining to other natural resource sectors.

    -   For the three months ended June 30, 2010, the Company generated a net
        loss of approximately $3.3 million, or ($0.07) per fully diluted
        share. For the six months ended June 30, 2010, the Company generated
        net income of approximately $1.5 million, or $0.03 per fully diluted
        share, due mainly from the sale of its Panama South Reserves, which
        resulted in a gain of approximately $8.8 million.

    -   At June 30, 2010, the Company had approximately $45.3 million in cash
        and cash equivalents. The Company also had restricted cash, cash
        equivalents and certificates of deposit as collateral for letters of
        credit for reclamation bonding and escrowed funds from the sale of
        its surface mining operations of approximately $5.2 million.
    

About Elgin Mining Inc. (formerly Phoenix Coal Inc.)

Elgin Mining Inc. is located in Toronto, Ontario and is currently evaluating the potential acquisition of assets in the global natural resource sector. For additional information, visit www.elginmining.com.

FORWARD-LOOKING STATEMENTS

Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include the expected timing of the commencement of trading of Elgin's shares and warrants on a consolidated basis and management's assessment of Elgin's future plans and operations and are based on Elgin's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Elgin's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. 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. Elgin undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

The TSX has neither approved nor disapproved of the contents of this press release.

For further information: Fraser Buchan, Director of Corporate Communications, Elgin Mining Inc., [phone], [email protected]; David Feick, The Equicom Group, Investor Relations, 403 218 2839, [email protected]