Etruscan reports second quarter results

HALIFAX, July 14 /CNW/ - Etruscan Resources Inc. (EET.TSX) has reported its financial and operating results for the second quarter ended May 31, 2010. All figures are reported in United States dollars unless otherwise noted.

During the second quarter of 2010, gold sales totaled 18,529 ounces which generated cash revenues of $17.9 million. A total of 11,341 ounces were sold at spot at an average price of $1,133 with an additional 7,188 ounces delivered into the hedge at a price of $700. These sales resulted in the Youga Gold Mine generating positive cash flow from operations of $4.7 million for the quarter and $11.8 million year to date.

Highlights for the Second Quarter ended May 31, 2010

    
    - Youga Gold Mine produced 18,002 ounces during Q2, 2010.
    - Operating costs at the Youga Gold Mine declined 17% from $886 per ounce
      in Q2 2009 to $735 per ounce in Q2 2010.
    - A $2.8 million drill program is continuing to expand the resources at
      the Youga Gold Mine.
    - Drilling programs on the Ouare gold deposits, Burkina Faso identified
      significant high grade mineralized zones over a strike length of
      approximately 250 meters.
    - A $10 million private placement closed on March 4, 2010. The proceeds
      are being used to continue the development of the Agbaou Gold project,
      to advance the Finkolo joint venture and to advance exploration on the
      Company's most prospective drill ready targets, the Daoukro Permit,
      eastern Côte d'Ivoire and the Keniebandi Permit, Mali West. (For
      further information see EET press releases July 7, 2010 and July 9,
      2010)
    - A joint venture was established with Ausquest to continue exploration
      on the Banfora exploration permits in southwest Burkina Faso
    

Dr. Sally Eyre, President and Chief Executive Officer commented: "The stabilization of operations is continuing to yield positive results. The second quarter marks the Company's third consecutive quarter of positive cash flow. We continue to implement cost reduction initiatives to maximize profitability."

Selected Financial Information from the Quarterly Financial Statements

    
    -------------------------------------------------------------------------
       Operational Highlights for the quarter ended May 31, 2010 ($US)
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                                                 Q2 2010            Q2 2009
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    Revenues                                  21,169,872         13,352,689
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    Total Cash Costs                          13,235,295         11,537,463
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    Total Cash Cost per Ounce                        735                886
    -------------------------------------------------------------------------
    Gold Production                               18,002             13,024
    -------------------------------------------------------------------------
    Income (loss) per Share                        (0.02)             (0.05)
    -------------------------------------------------------------------------

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                                            May 31, 2010  November 30, 2009
    -------------------------------------------------------------------------
    Total Assets                             167,301,074        161,801,206
    -------------------------------------------------------------------------
    Current Assets                            37,050,827         30,699,903
    -------------------------------------------------------------------------
    Current Liabilities                       32,070,365         31,307,284
    -------------------------------------------------------------------------

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The second quarter 2010 financial statements and management's discussion and analysis are available on the SEDAR website at www.sedar.com or at the Company's website at www.etruscan.com. The financial statements have been prepared in accordance with Canadian GAAP.

In order to access the Corporation's financial statements directly, please click the following URL: http://files.newswire.ca/423/EET_Financials.pdf

About Etruscan

Etruscan Resources Inc. is a gold-focused Canadian mining company with large land positions in West Africa. The Company's principal mine projects include the Youga Gold Mine in Burkina Faso; the Agbaou Gold Project in Côte d'Ivoire; and the Finkolo Gold Project in Mali. Exploration programs and initiatives are on-going in Burkina Faso, Mali, Côte d'Ivoire, Ghana and Namibia. The common shares of Etruscan are traded on the Toronto Stock Exchange under the symbol "EET".

More extensive information on Etruscan can be found on its home page at www.etruscan.com.

This press release may contain certain forward-looking statements which 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 such forward-looking statements. Forward-looking statements may include statements regarding exploration results and budgets, mineral reserve and resource estimates, work programs, capital expenditures, mine operating costs, production targets and timetables, future commercial production, strategic plans, market price of precious metals or other statements that are not statements of fact. Although the Company believes the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Various factors that may affect future results include, but are not limited to: fluctuations in market prices of precious metals; foreign currency exchange fluctuations; risks relating to mining exploration and development including reserve estimation and costs and timing of commercial production; requirements for additional financing; political and regulatory risks, and other risks and uncertainties described in the Company's annual information form filed with the Canadian Securities regulators on SEDAR (www.sedar.com). Accordingly, readers should not place undue reliance on forward-looking statements.

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE

For further information: Renmark Financial Communications Inc.: Maurice Dagenais, [email protected]; Barry Mire, [email protected], Tel: [phone]; Etruscan Resources Inc.: Paul Coombs, Chief Financial Officer, Tel: [phone], Fax [phone], email: [email protected]