Silver Bear Announces 2010 Third Quarter Results

TORONTO, Nov. 9 /CNW/ - Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR) today announces financial results for the quarter ended September 30, 2010, prepared in accordance with Canadian generally accepted accounting principles ("GAAP"). All dollar amounts are stated in Canadian dollars unless otherwise indicated.

As Silver Bear continues its review of strategic alternatives, the Company is focused on its major assets, aiming to maintain its Mangazeisky license in good standing and to preserve its cash balance.

Cumulatively, Silver Bear's drilling and trenching programs have fulfilled its Mangazeisky license requirements through the end of 2010. License requirements in 2011 will be met with a trenching program of 5,000 cubic metres at a cost of approximately $1.6 million. Silver Bear will also apply for an exploration license extension in 2011.

Through the end of 2009 and into the third quarter of 2010, Silver Bear has reduced exploration as well as general and administrative expenditures when compared to prior quarters. As a result, the Company's cash balance at September 30, 2010 was $10.8 million compared to $12.3 million at December 31, 2009.

"As we continue our strategic review, Silver Bear has successfully reduced its expenditures while at the same time maintaining the exploration license in good standing," said Randall Oliphant, President and Chief Executive Officer. "We continue to evaluate the merits of potential partnerships to advance our Russian project in light of strong silver prices as well as to look for other opportunities to deploy our significant cash balance where it has the potential to generate value and provide our shareholders with the greatest returns."

Financial Results

Net Loss

Silver Bear incurred a net loss for the three-month period ended September 30, 2010 of a nominal amount. This compares to a loss of $3.6 million or $0.10 per share for the three-month period ended September 30, 2009. Exploration costs were $0.3 million in the three-month period ended September 30, 2010 compared with $2.9 million in the three-month period ended September 30, 2009. General and administrative expenses for the three-month period ended September 30, 2010 were $0.4 million compared with $0.4 million in the three-month period ended September 30, 2009. Non-cash items for the three-month period ended September 30, 2010 were $0.2 million compared with $0.3 million in the three-month period ended September 30, 2009. The Company has received confirmation of an additional Value Added Tax (VAT) refund in the Russian Federation from prior periods to be received of $0.8 million, and has recorded this amount as Other Income in the quarter.

Silver Bear incurred a net loss for the nine-month period ended September 30, 2010 of $1.7 million, or $0.05 per share. This compares to a loss of $11.4 million or $0.30 per share for the period ended September 30, 2009. Exploration costs were $1.2 million in the period ended September 30, 2010 compared with $8.1 million in the period ended September 30, 2009, as the Company reduced exploration expenditures to preserve cash. General and administrative expenses for the period ended September 30, 2010 were $1.2 million compared with $1.9 million in the prior period as the Company reduced corporate office and salary related costs. Non-cash items for the period ended September 30, 2010 were $0.7 million compared with $1.5 million in the period ended September 30, 2009. The reduction of $0.8 million is mainly a result of decreased stock based compensation and foreign exchange expenses. Interest income for the period ended September 30, 2010 was $nil compared with $0.1 million in the prior year period. The Company has received a VAT refund from prior periods of $1.3 million.

Liquidity and Capital Resources

At September 30, 2010, Silver Bear had cash and cash equivalents of $10.8 million. The Company has no debt outstanding. Silver Bear anticipates that it has a sufficient amount of cash and cash equivalents to meet its short term objectives. Additional funding may be required in the longer term.

Mangazeisky Project

During the 2009 drilling season commencing in May and ending in October, Silver Bear drilled a total of 12,373 metres over 74 holes. In addition, trenching activities resulted in 15,067 cubic metres being completed. Both the drilling and trenching significantly exceeded the 2009 license requirements of 3,000 metres and 10,000 metres of drilling and trenching, respectively. In November of 2009, Silver Bear announced an updated mineral resource estimate for the project which was completed by Wardrop Engineering, a Tetra Tech Company ("Wardrop"). Wardrop estimated an indicated mineral resource of 1.0 million tonnes averaging 558 grams per tonne totaling approximately 18 million ounces of silver for the Vertikalny vein, with an additional inferred mineral resource of 1.5 million tonnes averaging 596 grams per tonne totaling approximately 29 million ounces of silver. The estimate, as of November 6, 2009, was based on a long term silver price of US$10.84 per ounce, a cut-off grade of 240 grams per tonne and anticipation that the mineralized zone would be mined by selective underground methods at a minimum mining width of 1.2 metres.

Silver Bear Resources Inc.

The primary business of the Company is the evaluation, acquisition, exploration and development of silver properties in the Russian Federation. The Company's principal asset is its 100% owned Mangazeisky Project, located approximately 400 kilometres north of Yakutsk in the Republic of Sakha, Yakutia in the Russian Federation. Silver Bear plans to spend approximately $1.5 million at Mangazeisky in 2010, in addition to approximately $1.6 million in corporate general and administrative costs.

Silver Bear is currently evaluating strategic alternatives available to the Company in an effort to maximize shareholder returns. This may include: continued exploration/development of the Mangazeisky Project, joint venture of the Project, or combination with another mineral focused company.

Silver Bear Resources Inc. is listed on the Toronto Stock Exchange and its common shares trade under the symbol "SBR". Silver Bear has 37,935,569 issued and outstanding common shares. Other information relating to Silver Bear is available on SEDAR at www.sedar.com as well as on the Company's web site at www.silverbearresources.com.

Silver Bear Resources Inc.
Consolidated Balance Sheets
(Canadian dollars)
(unaudited)
			September 30,		December 31,
			2010		2009
ASSETS
Current assets
Cash and cash equivalents			10,751,003		12,320,095
Receivable			849,768		355,438
Inventories			1,158,620		1,226,195
Prepaid expenses			60,478		90,677
			12,819,869		13,992,405
Capital assets
Mineral property			1,265,117		1,265,117
Property, plant and equipment			1,371,929		1,969,181
			15,456,915		17,226,703
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities			206,846		352,298
Long-term liabilities
Asset retirement obligation			637,237		608,725
Shareholders' equity
Capital Stock			73,771,289		73,771,289
Contributed surplus			9,053,448		8,975,687
Deficit			(68,211,905)		(66,481,296)
			14,612,832		16,265,680
			15,456,915		17,226,703

Silver Bear Resources Inc.
Consolidated Statements of Operations and Comprehensive Loss and Deficit
(Canadian dollars)
(unaudited)
			Three-month periods Ended				Nine-month periods Ended
			September 30,		September 30,		September 30,		September 30,
			2010		2009		2010		2009
Income
	Interest income		17,449		14,806		45,016		88,640
	Other Income		829,233		-		1,331,686		-
			846,682		14,806		1,376,702		88,640
Expenses
	Exploration costs		271,365		2,880,980		1,150,571		8,149,034
	General and administrative		357,550		434,209		1,234,137		1,852,550
	Stock option compensation		12,288		(20,380)		77,761		325,035
	Amortization		201,915		187,628		592,448		562,214
	Accretion expense		9,504		9,508		28,512		28,514
	Loss on disposal of property, plant and equipment		4,804		-		2,882		11,631
	Foreign exchange loss (gain)		17,521		170,838		21,000		600,037
Expenses from operations			874,947		3,662,783		3,107,311		11,529,015
Loss and Comprehensive Loss for the period			(28,265)		(3,647,977)		(1,730,609)		(11,440,376)
Deficit - Beginning of the period			(68,183,640)		(60,986,264)		(66,481,296)		(53,193,867)
			(68,211,905)		(64,634,241)		(68,211,905)		(64,634,242)
Weighted average number of common shares outstanding			37,935,569		37,935,569		37,935,569		37,935,569
Loss per share			(0.00)		(0.10)		(0.05)		(0.30)

Silver Bear Resources Inc.
Consolidated Statements of Cash Flows
(Canadian dollars)
(unaudited)
			Three-month periods Ended				Nine-month periods Ended
			September 30,		September 30,		September 30,		September 30,
			2010		2009		2010		2009
Cash provided by (used in)
Operating activities
Net Loss from operations			(28,265)		(3,647,977)		(1,730,609)		(11,440,376)
Items not affecting cash:
	Amortization		201,915		187,628		592,448		562,214
	Accretion expense		9,504		9,508		28,512		28,514
	Stock option compensation		12,288		(20,380)		77,761		325,035
	Loss on disposal of property, plant and equipment		4,804		-		2,882		11,631
Net change in non-cash working capital			(483,815)		(424,570)		(542,008)		(245,467)
Net cash used in operations			(283,569)		(3,895,791)		(1,571,014)		(10,758,449)
Investing activities
	Acquisition of property, plant and equipment		-		(1,573)		-		(232,133)
	Proceeds from sale of property, plant and equipment		-		-		1,922		-
			-		(1,573)		1,922		(232,133)
Decrease in cash and cash equivalents during the period			(283,569)		(3,897,368)		(1,569,092)		(10,990,582)
Cash and cash equivalents - beginning of the period			11,034,572		17,076,808		12,320,095		24,170,023
Cash and cash equivalents - end of the period			10,751,003		13,179,442		10,751,003		13,179,441

Forward-Looking Information

This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements, which reflect management's expectations with respect to the proposed transaction. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Silver Bear cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such risks factors include but are not limited to risks factors identified by Silver Bear in its continuous disclosure filings filed from time to time on SEDAR. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause Silver Bear's actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although Silver Bear has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. 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. Accordingly, prospective investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this release, and Silver Bear assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

For further information:

please visit www.silverbearresources.com, or contact:

Brian Penny
Chief Financial Officer
(416)-324-6002
[email protected]

Hannes Portmann
Director, Corporate Development and Investor Relations
(416)-324-6014
[email protected]