Malaga reports its financial results for Q3 2009

    
    Malaga Inc. (malaga)
    Symbol: MLG
    Toronto Stock Exchange(TSX)
    

MONTREAL , Nov. 16 /CNW Telbec/ - Malaga Inc. (TSX:MLG) is pleased to report its financial results for the three-month period ended September 30, 2009 . The interim consolidated financial statements (all currency figures appear in Canadian dollars unless otherwise specified) along with the management's discussion and analysis are available on the Company's website www.malaga.ca; the documents have been filed with SEDAR at www.sedar.com.

    
    Q3 2009 HIGHLIGHTS

    - Issuance of 9.0M common shares for gross proceeds of $0.9M.
    - Q3 sales revenue of $2.8M ($3.2M in Q3 2008).
    - Q3 sales volume of 15,529 MTUs of tungsten concentrate (15,795 MTUs in
      Q3 2008).
    - Net loss in Q3 of $2.0M ($0.4M in Q3 2008)
    - Tungsten ore grade of 0.84% (0.78% Q3 2008)

    The increase in the net loss in comparison to the second quarter is
principally due to the decrease in the market price of tungsten and the
foreign exchange loss in the amount of $0.3M.
    Management expects that, by the end of November, the production capacity
will reach 325 tons per day and in excess of 500 tons per day by the end of
the first quarter of 2010. At September 30, 2009, the Company has invested
$4.3M on this project.

    PRODUCTION

    Production is summarized in the table below:

                                       Three-month              Nine-month
                                      periods ended           periods ended
                                     September 30th          September 30th
                                 --------------------------------------------
                                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    Tons processed                24,111      23,176      66,831      65,297
    -------------------------------------------------------------------------
    Grade (%)                       0.84        0.78        0.85        0.80
    -------------------------------------------------------------------------
    Production (MTU)              17,177      14,975      47,713      42,288
    -------------------------------------------------------------------------
    

ABOUT MALAGA INC.

Malaga Inc. is a tungsten mining company that uses modern, efficient and productive mining technology. The Company is committed to growth, via increasing its tungsten concentrate production, through continuing the exploration of the Pasto Bueno property, and via strategic acquisitions. It also seeks diverse growth opportunities such as developing the hydroelectric potential of the Pasto Bueno property, through Hidropesac, in which the Company holds 44%, as well as through its holding in Dynacor Gold Mines Inc., in which the Company owns 13.3%.

FORWARD LOOKING INFORMATION

Certain statements in the foregoing may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Malaga, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management's current expectations regarding future events and operating performance as of the date of this news release.

For further information: Jean Martineau, President & CEO, Malaga Inc., [phone]; Dale Nejmeldeen, Investor Relations, Malaga Inc., [phone], [email protected]