Talison Lithium Reports Fiscal Q1 2012 Results

Talison Lithium Limited

TSX : TLH

November 2011

PERTH, WESTERN AUSTRALIA--(Marketwire - Nov. 14, 2011) - Talison Lithium Limited ("Talison" or the "Company") (TSX:TLH) today announced results for the first quarter of the 2012 fiscal year.

HIGHLIGHTS

• Sales volumes for the first quarter of 80,315 tonnes of lithium concentrate (approximately 12,000 tonnes lithium carbonate equivalent ("LCE")), a 53% increase quarter on quarter¹.

• Revenue of A$25.9m, a 61% increase in US$ terms quarter on quarter.

• Average sales price increased 5% and operating cost per tonne reduced 6% quarter on quarter.

• Earnings before interest, income tax, and depreciation and amortization ("EBITDA") of A$6.1 million² and EBITDA margin of 24%.

• Operating cash flow of A$8.2 million.

• Cash and cash equivalents at September 30, 2011 of A$91.3 million.

• Construction of the Stage 2 expansion of the Greenbushes Lithium Operations to double production capacity continued during the quarter on schedule and on budget.

• New Offices in Shanghai and Santiago established to strengthen relationships with customers and facilitate the development of the Salares 7 Project, respectively.

FIRST QUARTER FINANCIAL RESULTS

Talison generated revenue of A$25.9 million in the quarter. In US$ terms, sales revenue was 61% higher than Q1 fiscal year 2011 (excluding one-off crushed ore sales in Q1 fiscal 2011) however, in A$ terms sales revenue increased only 23% as a result of the adverse impact of a 16% increase in the value of the A$ against the US$ between the two periods.

The Company realized an average sales price per tonne of lithium concentrate of US$330, a 5% increase over the Q1 fiscal year 2011 average sales price of US$313.

Talison sold 80,315 tonnes of lithium concentrate during the quarter (approximately 12,000 tonnes LCE), a 53% increase quarter on quarter. Production volume increased 12% quarter on quarter to 90,708 tonnes of lithium concentrate (approximately 13,500 tonnes LCE) as the Company realized the full benefits of the completion of its Stage 1 capacity expansion of the Greenbushes Lithium Operations.

Cash operating cost of goods sold per tonne of lithium concentrate was A$207, a 6% reduction quarter on quarter due to economies of scale as production capacity increased.

EBITDA was A$6.1 million, reflecting an increase in the EBITDA margin to 24% of revenue despite a 16% appreciation in the value of the A$. A constant exchange rate would have resulted in an EBITDA margin of approximately 33%, reflecting the increase in average sales price and reduction in cash operating cost of goods sold during the quarter.
The table below summarizes the Company's key financial metrics for Fiscal Q1 2012.

FISCAL Q1 2012 RESULTS SUMMARY
(In thousands and A$ unless noted otherwise)
	Q1 FY 12			Change		Q1 FY 11
Sales Volume (tonnes lithium concentrate)		80,315		53	%		52,525
Average sales price		US$330		5	%		US$313
Revenue	$	25,879		23	%	$	21,072
Cash Operating COGS/tonne	$	207		-6	%	$	221
EBITDA	$	6,126		28	%	$	4,770
EBITDA Margin		24	%	4	%		23	%
Net fair value gain/(loss) on revaluation of financial assets and liabilities3		(6,419	)	-206	%		6,067
Net finance income/(expense) – other		3,336		841	%		(450	)
Depreciation and amortisation		(688	)	-16	%		(820	)
Income tax expense		(748	)	-80	%		(3,693	)
Net Income	$	1,607		-73	%	$	5,874
Basic EPS	$	0.02		-82	%	$	0.11
Shares		107,731		101	%		53,569
Additional Data
Volume sold LCE		12,000		53	%		7,800
Production LCE		13,500		12	%		12,000

FIRST QUARTER OPERATIONS
During the quarter Talison continued to progress its three growth projects.

Stage 2 Expansion

The Company is doubling its capacity to produce lithium concentrate to 740,000 tonnes (approximately 110,000 tonnes LCE) per year with the Stage 2 expansion of the Greenbushes Lithium Operations. Talison will ultimately spend A$65 to A$70 million to complete this project. Commissioning of the expansion is expected in the fiscal fourth quarter 2012 (Q2 Calendar Year 2012). Construction remains on budget and on schedule. During the quarter, foundations and civil works were nearing completion and off-site fabrication is well advanced with significant plant component parts delivered to site in preparation for the commencement of on-site construction.
To view "Figure 1: Stage 2 expansion progress at Greenbushes",please visit the following link: http://media3.marketwire.com/docs/TalisonFigure1.pdf.

Minerals Conversion Plant

Talison is aggressively pursuing its proposed plant to convert lithium minerals into lithium carbonate ("Minerals Conversion Plant"). Preliminary engineering and location studies for the proposed Minerals Conversion Plant are continuing. The potential location has been narrowed to the Greenbushes Lithium Operation and one other Western Australian location. The external engineering consultant is preparing estimates of capital costs and operating costs which should be completed by the end of this calendar year. Based on the initial indications of operating costs, Talison believes that it will be a globally competitive lithium carbonate producer.

Salares 7 Project

Following the receipt of outstanding results from the first drilling program at the Salares 7 Project in the 2011 fiscal year, Talison is accelerating the next phase of the exploration program which is now underway. Talison expects to invest approximately US$5 million on this program in the 2012 fiscal year with the objective of defining a potential lithium mineral resource at Salar de la Isla.

New offices opened in Shanghai and Santiago
During the quarter, Talison opened an office in Shanghai to support its growing business in China. The new office will assist the Company in strengthening relationships with new and existing customers.
Talison has also established an office in Santiago to facilitate the development of the Salares 7 Project. This office will support the exploration, environmental and process test work currently being undertaken by the Company in Chile.

FISCAL 2012 OUTLOOK
Talison expects production of lithium concentrate in fiscal Q2 2012 to be in-line with that of fiscal Q1 2012. The Company expects sales of lithium concentrate for the six months to December 31, 2011 to be in line with production. Talison secured price increases for two shipments in fiscal Q1 2012 and expects further positive price movements for sales in calendar 2012. 

During fiscal 2012, Talison expects production and sales volumes to remain constrained until commissioning of the Stage 2 expansion in fiscal Q4 2012. Because the commissioning is expected to occur late in the year, the additional production capacity will not impact sales until fiscal 2013. However, the full year of contribution from the Stage 1 Expansion, combined with anticipated process improvements, should enable full year 2012 sales to approximately equate to fiscal Q4 2011 sales on an annualized basis.

FIRST QUARTER FINANCIAL RESULTS CONFERENCE CALL
Talison will host a conference call to discuss the financial results on Monday, November 14, 2011 at 8:00 a.m. (Eastern). The call is being webcast by Thomson Reuters and can be accessed at www.earnings.com or at Talison's website, www.talisonlithium.com.

Teleconference call details are as follows:
North America:	+1 (866) 270-6057
International:	+1 (617) 213-8891
Participant Code:	78443753
Chairperson:	Peter Oliver, Chief Executive Officer and Managing Director
Replay
Available from:	November 14, 2011, 11:00 a.m. (Eastern)
Available to:	November 21, 2011
Dial In:	+1 (888) 286-8010
International:	+1 (617) 801-6888
Passcode:	90648347

ABOUT TALISON
Talison is a leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars (brine lakes and surrounding concessions) located in Region III, Chile. Talison has an extensive, well established global customer network and a leading position in the growing Chinese market.

1. Information in this press release is in relation to the financial condition and results of operations of Talison Lithium Limited ("Talison" or the "Company") as at September 30, 2011 and for the three months ended September 30, 2011. This press release should be read in conjunction with the unaudited condensed consolidated interim financial statements of Talison and the related notes thereto as at September 30, 2011 and for the three months ended September 30, 2011 (collectively, the "Financial Statements"). The financial information contained in this press release is derived from the Financial Statements, which were prepared in accordance with International Financial Reporting Standards ("IFRS"). All amounts in this press release are expressed in Australian dollars ("A$") unless otherwise identified. References to "C$" are to Canadian dollars and references to "US$" are to United States dollars.
   
   
2. The term "EBITDA" is a non-IFRS financial measure. For a reconciliation of EBITDA to its IFRS-compliant income statement, refer to "Non-IFRS Performance Measures" in Management's Discussion and Analysis of the financial condition and results of operations of Talison Lithium Limited as at September 30, 2011 and for the three months ended September 30, 2011 (which can be found on Talison's SEDAR profile at www.sedar.com).

FINANCIAL STATEMENTS

INCOME STATEMENT	Three Months Ended September 30, 2011 (Unaudited)		Three Months Ended September 30, 2010 (Unaudited)(1)		Twelve Months Ended June 30, 2011 (Audited)(1)
	A$'000		A$'000		A$'000
Sales revenue	25,879		21,072		109,501
Operating costs	(16,594	)	(13,235	)	(70,616	)
Other income / (expenses)	(3,159	)	(3,067	)	(14,819	)
EBITDA(3)	6,126		4,770(2)		24,066(2)
Depreciation and amortization	(688	)	(820	)	(3,428	)
Net financing income / (costs)	857		(3,859	)	(3,798	)
Net realized US$ hedging gain	2,048		(40	)	2,979
Net realized foreign exchange gain / (loss)	431		3,449		7,561
Net fair value gain/(loss) on financial assets and liabilities	(6,419	)	6,067		4,664
Income tax (expense) / benefit	(748	)	(3,693	)	(9,108	)
Net profit/(loss) for the period	1,607		5,874		22,936
	25,879
Basic earnings per share (cents/share)(4)	1.5		11.0		25.7
Diluted earnings per share (cents/share)(4)	1.5		10.8		24.9
Basic weighted average number of shares	107,730,822		53,569,136		89,321,871

Notes:
(1)	The financial results for the three months ended September 30, 2010 and twelve months ended June 30, 2011 are comprised of the results of Talison for the period from August 12, 2010 to September 30, 2010 and from August 12, 2010 to June 30, 2011 (i.e., post-Reorganization), respectively, and the carve-out results of the Greenbushes Lithium Operations for the period from July 1, 2010 to August 11, 2010 (i.e., pre-Reorganization). Readers are cautioned that the results for the period from July 1, 2010 to August 11, 2010 may not be reflective of the ongoing affairs of Talison.
(2)	EBITDA for the three months ended September 30, 2010 and twelve months ended June 30, 2011 included A$1.6 million in non-recurring Reorganization costs.
(3)	EBITDA is a non IFRS financial measure. For a reconciliation of EBITDA to its IFRS compliant income statement, see "Non-IFRS Performance Measures".
(4)	Basic and diluted earnings per share have been calculated based on the weighted average number of shares on issue. For the three months ended September 30, 2011, the weighted average number of shares includes both the outstanding ordinary shares of Talison adjusted to remove ordinary shares held by the Talison Long Term Incentive Plan Trust which is consolidated under IFRS, and the exchangeable shares of Talison Lithium Exchangeco Limited, an indirect wholly-owned subsidiary of Talison that are exchangeable (on a one-for-one basis) for ordinary shares of Talison. For the three months ended September 30, 2010 and twelve months ended June 30, 2011, the weighted average number of shares includes the outstanding ordinary shares of Talison adjusted to remove ordinary shares held by the Talison Long Term Incentive Plan Trust which is consolidated under IFRS, the exchangeable shares of Talison Lithium Exchangeco Limited that are exchangeable (on a one-for-one basis) for ordinary shares of Talison, and the ordinary shares of Talison Minerals adjusted for the Talison Minerals share consolidation which occurred as part of the Reorganization. See "Outstanding Share Data".

STATEMENT OF FINANCIAL POSITION	As at September 30, 2011 (Unaudited) A$'000	As at June 30, 2011 (Audited) A$'000
Assets
Cash and cash equivalents	91,341	102,605
Trade and other receivables	20,884	21,543
Inventories	13,955	11,182
Derivative financial instruments	3,638	10,205
Deferred tax assets	-	-
Property, plant and equipment	111,861	95,215
Exploration and evaluation assets	62,346	61,714
Total assets	304,025	302,464
Liabilities
Trade and other payables	10,377	12,380
Interest-bearing liabilities	31,576	29,243
Tax payable	2,005	-
Provisions	14,246	14,668
Derivative financial instruments	1,030	-
Deferred tax liabilities	8,043	10,622
Total liabilities	67,277	66,913
Shareholders' equity	236,748	235,551

	As at September 30, 2011 (Unaudited) A$'000		As at June 30, 2011 (Audited) A$'000
Outstanding number of shares
Ordinary shares of Talison	110,987,326		110,527,347
Exchangeable shares of Talison Lithium Exchangeco Limited(1)	1,083,192		1,494,239
Shares held in trust(2)	(4,299,367	)	(4,299,367	)
Total outstanding number of shares	107,771,151		107,722,219

Notes:
(1)	The exchangeable shares of Talison Lithium Exchangeco Limited are exchangeable (on a one-for-one basis) for ordinary shares of Talison. See "Outstanding Share Data".
(2)	On June 7, 2011, Talison Lithium established the Incentive Plan Trust. Talison Lithium issued 3,862,767 ordinary shares to the Incentive Plan Trust and the Incentive Plan Trust purchased 436,600 ordinary shares of Talison Lithium on-market.

Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this press release, including any information as to Talison's mineral reserve and mineral resource estimates, strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, may constitute "forward-looking information" within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words, or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.
Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Talison, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to: anticipated financial and operating performance of Talison, its subsidiaries and their respective projects; Talison's market position; future prices of lithium or lithium concentrates; estimation of mineral reserves and mineral resources; realization of mineral reserve and mineral resource estimates; timing, amount and costs of estimated future production; grade, quality and content of concentrate produced; sale of production; capital, operating and exploration expenditures; costs and timing of the expansion of the Greenbushes Lithium Operations; exploration and development of the Salares 7 lithium project; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; absence of significant risks relating to Talison's mining operations; the costs of Talison's hedging policy; sales risks related to China; currency; interest rates, and limitations of insurance coverage. While Talison considers these factors, estimates and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risk factors include, amount others, those described in the Financial Statements and under the heading "Risk Factors" in the annual information form of Talison for the year ended June 30, 2011 dated September 23, 2011, each of which can be found on Talison's SEDAR profile at www.sedar.com. While Talison considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Although Talison has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this press release based on the opinions and estimates of management on the date statements containing such forward-looking information are made. Except as required by law, Talison disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

1	Quarter on Quarter refers to First Quarter Fiscal Year 2012 as compared to First Quarter Fiscal Year 2011
2	The term "EBITDA" is a non-IFRS financial measure. For further information and a reconciliation of EBITDA to its IFRS-compliant income statement, refer to "Non-IFRS Performance Measures" in Management's Discussion and Analysis of the financial condition and results of operations of Talison Lithium Limited as at September 30, 2011 and for the three months ended September 30, 2011 (which can be found on Talison's SEDAR profile at http://www.sedar.com/).
3	This amount mainly represents unrealized losses on the revaluation of Talison's US$hedge book and US$senior debt to the spot A$/US$exchange rate at September 30, 2011. The spot A$/US$exchange rate reduced from 1.07 at June 30, 2011 to 0.97 at September 30, 2011 resulting in the unrealized revaluation loss. The spot A$/US$exchange rate at November 10, 2011 has recovered to 1.02 which results in a portion of the unrealized revaluation loss being reversed at that date. Contact Information Talison Lithium Limited Gary Dvorchak, CFA +1 (310) 954-1123 gary.dvorchak@icrinc.com

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New Energy and City of Roanoke, VA Successfully Debut World's First-of-Its-Kind Electricity-Generating Rumble Strip to Nearly 6000 Visitors

November 2011 by Marketwire

  New Energy Technologies, Inc. (OTCQB: NENE) (PINKSHEETS: NENE) and the City of Roanoke, Virginia successfully debuted the Company's latest MotionPower(TM)-Express system, the world's first-of-its-kind rumble strip, capable of generating sustainable electricity. The Civic Center debut marks the first of several test and demonstration events the Company plans to conduct in partnership with the City of Roanoke. 

"The City of Roanoke takes seriously its responsibility to be good stewards of the environment and is always looking for unique ways to meet our mission of increased sustainability," said Ken Cronin, Director of General Services/Sustainability for the City of Roanoke. "We are proud to be the first city in the nation to test this novel technology with the potential to make the way we produce energy more clean and green." 

Held last weekend at the Roanoke Civic Center, nearly 6000 visitors and over 580 vehicles participated in the demonstration event, with each driver activating New Energy's patent pending MotionPower(TM)-Express System. As drivers slowed down, or came to a stop, their vehicle tires depressed small rumble strip-like treadles, allowing for the capture of kinetic energy. This captured energy was converted to electricity, which powered a series of brightly illuminated lights displayed to drivers.
Engineering estimates show an optimized and installed MotionPower(TM) System experiencing a traffic pattern similar to the 6-hour event, could produce enough sustainable electricity to power lights for the average American home for an entire day. In commercial applications, the same electricity could power a 150 square foot sports-venue electronic billboard or marquee for an entire day. 

"The MotionPower(TM)-Express was safely demonstrated to over 580 vehicles attending events on Saturday," said Robyn Schon, General Manager of the Roanoke Civic Center, managed by Global Spectrum, manager of over 100 public assembly venues around the world. "Visitors were excited to learn more about the technology and to help the City of Roanoke in its mission to implement green energy initiatives."
"We applaud and thank the City of Roanoke for their vision and cooperation in making this a successful demonstration," said John Conklin, President and CEO of New Energy Technologies, Inc. "I especially want to thank the hundreds of drivers and thousands of participants who helped us green the City, one car at a time." 

MotionPower(TM)-Express can be designed for a range of speeds based on traffic pattern and the amount of energy required for a specific application. These applications may include: sport and entertainment venues, solid waste transfer stations, fleet vehicle maintenance facilities, transportation depots, airports (passenger arrival and departure areas), parking lots, border crossings, exit ramps, neighborhoods with traffic calming zones, rest areas, toll booths, and travel plazas. 

"MotionPower(TM) can offset the city's cost of operating traffic control devices, such as traffic signals and street lights," said Mark Jamison, City of Roanoke Manager of Transportation. "This innovative partnership with New Energy Technologies has the potential to provide a more sustainable environment, while simultaneously conserving strained budgets of cities across the nation." 

More than 250 million vehicles are registered in America and an estimated 6 billion miles are driven on our nation's roads every day. According to the U.S. Energy Information Administration nearly 70 percent of America's electricity is generated by natural gas and coal. The environmental impact of greenhouse gas emissions and the rising cost of those non-renewable fuels, along with the potential doubling of global electricity consumption in the coming years, require the urgent need for creative, sustainable methods of generating electricity. The prospect of sustainably converting vehicle motion and deceleration (vehicle energy) into electricity represents significant positive environmental impact and alternative energy opportunities.
About New Energy Technologies, Inc. New Energy Technologies, Inc., together with its wholly owned subsidiaries, is a developer of next generation alternative and renewable energy technologies.

Among the Company's technologies under development are:

--  MotionPower(TM) roadway systems for generating electricity by
    capturing the kinetic energy produced by moving vehicles -- a
    patent-pending technology, the subject of 18 US and International
    patent applications. An estimated 250 million registered vehicles
    drive more than six billion miles on America's roadways, every day;
    and
--  SolarWindow(TM) technologies which enable see-through windows to
    generate electricity by 'spraying' their glass surfaces with New
    Energy's electricity-generating coatings -- the subject of 10 patent
    applications. These solar coatings are less than 1/10th the thickness
    of 'thin' films and make use of the world's smallest functional solar
    cells, shown to successfully produce electricity in a published
    peer-reviewed study in the Journal of Renewable and Sustainable Energy
    of the American Institute of Physics.

Through established relationships with universities, research institutions, and commercial partners, we strive to identify technologies and business opportunities on the leading edge of renewable energy innovation. Unique to our business model is the use of established research infrastructure owned by the various institutions we deal with, saving us significant capital which would otherwise be required for such costs as land and building acquisition, equipment and capital equipment purchases, and other start-up expenses. As a result, we are able to benefit from leading edge research while employing significantly less capital than conventional organizations.
For additional information, please call Ms. Briana L. Erickson toll-free at 1-800-213-0689 or visit: www.newenergytechnologiesinc.com. 

To receive future press releases via email, please visit:
http://www.newenergytechnologiesinc.com/investor_alert
To view the full HTML text of this release, please visit:
http://www.newenergytechnologiesinc.com/NENE20111104 

For media inquiries please contact Jerry Schranz at jschranz@beckermanpr.com, or visit our Media Relations page for additional contact information:
http://www.newenergytechnologiesinc.com/media_relations 

Legal Notice Regarding Forward-Looking Statements
No statement herein should be considered an offer or a solicitation of an offer for the purchase or sale of any securities. This release contains forward-looking statements that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although New Energy Technologies, Inc. (the "Company" or "New Energy Technologies") believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words "may," "will," "should," "could," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including but not limited to adverse economic conditions, intense competition, lack of meaningful research results, entry of new competitors and products, adverse federal, state and local government regulation, inadequate capital, unexpected costs and operating deficits, increases in general and administrative costs, termination of contracts or agreements, technological obsolescence of the Company's products, technical problems with the Company's research and products, price increases for supplies and components, litigation and administrative proceedings involving the Company, the possible acquisition of new businesses or technologies that result in operating losses or that do not perform as anticipated, unanticipated losses, the possible fluctuation and volatility of the Company's operating results, financial condition and stock price, losses incurred in litigating and settling cases, dilution in the Company's ownership of its business, adverse publicity and news coverage, inability to carry out research, development and commercialization plans, loss or retirement of key executives and research scientists, changes in interest rates, inflationary factors, and other specific risks. There can be no assurance that further research and development will validate and support the results of our preliminary research and studies. Further, there can be no assurance that the necessary regulatory approvals will be obtained or that New Energy Technologies, Inc. will be able to develop commercially viable products on the basis of its technologies. In addition, other factors that could cause actual results to differ materially are discussed in the Company's most recent Form 10-Q and Form 10-K filings with the Securities and Exchange Commission. These reports and filings may be inspected and copied at the Public Reference Room maintained by the U.S. Securities & Exchange Commission at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information about operation of the Public Reference Room by calling the U.S. Securities & Exchange Commission at 1-800-SEC-0330. The U.S. Securities & Exchange Commission also maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the U.S. Securities & Exchange Commission at http://www.sec.gov. The Company undertakes no obligation to publicly release the results of any revisions to these forward looking statements that may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Ms. Briana L. Erickson
New Energy Technologies, Inc.
9192 Red Branch Road, Suite 110
Columbia, MD 21045
Email: Email Contact
Phone: 800-213-0689
www.newenergytechnologiesinc.com

SOURCE: New Energy Technologies, Inc.

http://www2.marketwire.com/mw/emailprcntct?id=CACE396FC2A71DE4
http://www.newenergytechnologiesinc.com/

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San Gold Reports Operating Income of $12.1 Million and Quarterly Profit of $1.0 Million

Nov 2011 by Marketwire

San Gold Corp 

TSX-SGR

 San Gold Corporation (TSX: SGR)(OTCQX: SGRCF) ("San Gold" or the "Company") reports financial and operating results for the third quarter of 2011. The Company is also providing an update on its outlook for the remainder of the year.

Third Quarter 2011 Highlights:

--  For the first time in history, the Company reported unadjusted positive
    quarterly net income of $1.0 million.
--  Recognized record revenue of $32.9 million on gold sales of 18,867
    ounces at a realized price of $1,743 per ounce.
--  Generated cash flow from operations before changes in working capital of
    $9.8 million.
--  Generated record operating income from operations of $12.1 million.
--  Reported total cash costs of $769 per ounce of gold sold, below annual
    guidance of $825 per ounce.
--  Realized a cash operating margin of $974 per ounce of gold sold.
--  Achieved average mill throughput of 1,324 tons per day.

Subsequent to quarter-end, the Company:

--  Maintained full-year production guidance of 80,000 ounces and reduced
    its full-year total cash cost guidance to less than $800 per ounce.
--  Provided 2012 gold production guidance of 100,000 ounces and preliminary
    projected guidance for 2013 of 120,000 ounces.

"I am very pleased with this quarter's financial and operating results," stated George Pirie, President and Chief Executive Officer of San Gold. "The Company has reported record financial and operating performance in the first nine months of the year, with record revenue, cash flow from operations, and income from operations. The Company is also reporting its first ever quarter with positive earnings.

The dramatic reduction we've seen in cash operating costs confirms our belief that the operational improvements implemented over the past two years would result in increased productivity leading to higher production and lower costs, as evidenced by record-low total cash costs of $769 per ounce. I am also pleased to report that we remain on track to deliver on our full-year guidance of 80,000 ounces and that we are reducing our total cash cost guidance for 2011 to below $800 per ounce of gold sold."

This press release should be read in conjunction with the Company's consolidated financial statements for the quarter ended September 30, 2011 and associated Management's Discussion and Analysis ("MD&A"), which are available from the Company's website (www.sangold.ca), in the "News & Reports" section under "Financial Statements", and on SEDAR (www.sedar.com).

Review of Financial Results
For the first time in its history, the Company reports adjusted positive quarterly earnings in the third quarter of 2011, with total and comprehensive income in the third quarter of $1.0 million or a third of a cent a share. This is a significant improvement relative to a loss of $4.6 million or two cents per share, in the third quarter of 2010.
Gold sales revenue in the third quarter of 2011 was $32.9 million on the sale of 18,867 ounces, 137% higher than revenue of $13.9 million recognized in the third quarter of 2010. The increase in revenue in the third quarter of 2011 is a result of an 82% increase in the number of ounces sold and a 30% increase in the average realized gold price compared to the third quarter of 2011.

The Company generated record cash flow from operating activities before changes in non-cash working capital of $9.8 million, a significant change compared to a use of $0.4 million in the third quarter of 2010. After changes in non-cash working capital, operating activities generated $10.4 million in the third quarter of 2011, a substantial change from the use of $6.7 million in the third quarter of 2010.

In the third quarter of 2011, the Company reported record income from operations of $12.1 million, a 195% improvement from $4.1 million in the comparable period of last year. Income from operations in the third quarter of 2011 also represents a 60% increase relative to the prior period.

Capital spending in the third quarter of 2011 was focused on increasing mill capacity, improving key infrastructure, and sustaining capital. The Company capitalized $6.4 million of property, plant, and equipment during the quarter compared to $6.5 million in the same quarter of the prior year. In the first nine months of 2011, the Company capitalized $21.1 million of property, plant, and equipment compared to $10.0 million in the same period of last year.

Key financial metrics for the third quarter of 2011 compared to the third quarter of 2010 are presented at the end of this press release in Table 1.Third Quarter 2011 Operating Results
Gold production in the third quarter of 2011 was 52% higher than production of 12,568 ounces in third quarter of 2010. Gold production of 53,918 ounces in the first nine months of the 2011 was 58% higher than production of 34,217 ounces in the same period of 2010. Higher gold production in 2011 is a result of increased mill throughput relative to the comparable periods of 2010. 

Total cash operating costs were $769 per ounce of gold sold in the third quarter of 2011, below full year guidance of $825. Lower total cash operating costs, combined with a realized gold price of $1,743 per ounce, resulted in a record cash operating margin of $974 per ounce. With year-to-date production of 53,918 ounces and the mill expansion substantially complete, the Company remains on-track to meet full-year production guidance of 80,000 ounces. Year-to-date total cash costs of $813 per ounce of gold sold is slightly below full-year guidance of $825.

Key operational metrics and production statistics for the third quarter of 2011 compared to the third quarter of 2010 and on year-to-date bases are presented in tables 2 and 3 at the end of this press release, respectively.

Outlook
In the first nine months of 2011, the Company has achieved record operating and financial performance, characterized by record revenues and cash flow from operations, and downward trending cash costs per ounce of gold. Also, for the first time in the Company's history, the Company has reported positive quarterly earnings.

The increase in crushing and milling capacity, the implementation of more cost-effective mechanized mining methods, and the removal of constraints from operations contributed to the substantial increase in gold production and reduction in cash costs. With the expansion initiatives planned for 2011 substantially complete, mill throughput is forecast to increase significantly in the fourth quarter towards a year end exit rate of over 1,700 tons per day. In addition to the processing capacity improvements, the Company had a stockpile of 26,000 tons at the quarter end. In the subsequent period, the Company expects strong grades and increased tonnage from 007 and a reducing stockpile towards year end. As a result of these factors, the Company reiterates its full-year production guidance of 80,000 ounces. The Company also announces a 2012 gold production guidance of 100,000 ounces followed by a projected 120,000 ounces in 2013.

Record gold production has been accompanied by a steady quarter-over-quarter reduction in total cash operating costs per ounce of gold sold from $862 per ounce in the first quarter to a -low of $769 per ounce in the third quarter. Year-to-date total cash costs are $813 per ounce of gold sold, slightly below 2011's full year guidance of $825. The Company expects that it will continue to benefit from lower cash costs throughout the remainder of 2011 and is forecasting year-end exit total cash operating cost approaching $650 per ounce. Accordingly, the Company is revising its 2011 full year total cash cost guidance downward from $825 to less than $800 per ounce of gold sold.

Capital spending in the fourth quarter will be allocated to the commissioning of the new, high-capacity flotation cells and the installation and commissioning of a new overland conveyor and a screening plant. Once complete, these improvements are expected to further increase production and reduce total cash costs through increased capacity and improved gold recovery.

Exploration activities continue to build on this year's drill results. More detailed exploration disclosure will be forthcoming but early indications show that the 007 drilling programs have successfully identified significant vertical and lateral continuity and extension resulting in accelerated development in the district. The picture is changing from one of several discrete stacked lenses into a single continuous structure that is over 450 metres long and up to 12 metres wide at a depth of 350 metres below surface. The L10 zone has been confirmed by drilling from surface and underground to a depth of 800 metres and is fully accessible from the 16th level (730 metres below surface) at the Rice Lake Mine. A new drill program in proximity to the SG1 mine has produced some very encouraging initial results and may support dewatering of the mine which has been on care and maintenance for approximately three years. Exploration drill holes previously released with our third quarter production results have identified a new footwall zone at SG1 that is separate and distinct and has better widths and grade than the material originally mined at SG1 mining which was done to a maximum depth of 185 metres. The developments at SG1 support the thesis that there may be other large intrusive hosted ore bodies proximal to the nearby Ross River Pluton. San Gold is looking forward to summarizing its 2011 exploration program results and providing frequent updates during the fourth quarter of 2011.
Exploration activities for the remainder of the year will continue to focus on definition and extension drilling for both production planning and exploration purposes at the San Antonio Mining Unit, the Shoreline Basalt Unit, the Normandy Creek Shear Zone, and within the intermediate volcanic rock unit north of the Shoreline Basalt Unit. The objectives of the Company's exploration programs is to develop a larger mine complex that can be exploited through existing infrastructure. The Company plans to report an updated mineral reserve and resource statement in 2012.

With rising production, declining cash costs, record gold prices, and a strong balance sheet, the Company has positioned itself to finance its immediate development plans, as well as grow through new discoveries and potential acquisitions or joint venture opportunities.

Reminder of Third Quarter 2011 Financial Results Conference Call
The Company's senior management plans to host a conference call, November 15, 2011 at 11:00 am Eastern Standard Time to discuss the 2011 third quarter financial results, and to provide an update of the Company's operating, exploration, and development activities. 

Participants may join the conference call by dialing 1 (877) 240-9772 or 1 (416) 340-8530 for participants outside of Canada and the United States. The conference call will also be available by webcast on the Company's website at www.sangold.ca.

A recorded playback of the conference call can be accessed after the event until November 22, 2011 by dialing 1 (800) 408-3053 or 1 (905) 694-9451 for calls outside Canada and the United States. The pass code for the conference call playback is 2825740. The archived audio webcast will also be available on the Company's website at www.sangold.ca.

About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. The Company employs over 400 people and is committed to the highest standards of safety and environmental stewardship. As of the date of the related quarterly financial statements, the Company has a working capital surplus of $37.3 million and is unhedged to the price of gold. As of November 15, 2011, the date of this report, San Gold has 312,676,841 common shares outstanding, which are traded on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
For further information on San Gold, please visit www.sangold.ca.
Cautionary Non-IFRS Statements
The Company believes that investors use certain indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with International Financial Reporting Standards ("IFRS"). "Total cash operating costs" as used in this analysis is a non-IFRS term typically used by gold mining companies to assess the level of gross margin available to the Company per ounce of gold by subtracting these costs from the unit price realized during the period. This non-IFRS term is also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of "total cash operating costs" as determined by the Company compared with other mining companies. In this context, "total cash operating costs" reflects the per ounce cash costs allocated from in-process and dore inventory associated with ounces of gold sold in the period and net royalties. "Total cash operating costs" may vary from one period to another due to operating efficiencies, quantity of ore processed, grade of ore processed, and gold recovery rates.
Cautionary Note Regarding Forward Looking Statements
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics, and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves.
Cautionary Note to United States and Other Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources:
This press release uses the terms "Measured", "Indicated", and "Inferred" resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.
Table 1: Financial Highlights (000's $CDN)

-----------------------------------------------------------------------
-----
                                   Q3          Q3          YTD          YTD
                                 2011        2010         2011         2010
----------------------------------------------------------------------------
Total and comprehensive
 income (loss)                 $1,011     ($4,626)     ($8,298)    ($15,267)
Items not affecting cash       $8,775      $4,213      $21,559       $8,369
----------------------------------------------------------------------------
Cash provided (used) by
 operating activities
 before changes in non-
 cash working capital          $9,786       ($413)     $13,261      ($6,897)
Net change in non-cash
 working capital                 $568     ($6,244)     ($9,009)     ($1,413)
----------------------------------------------------------------------------
Cash provided by
 operating activities         $10,354     ($6,656)      $4,252      ($8,310)
Total and comprehensive
 income (loss)                 $1,011     ($4,626)     ($8,298)    ($15,267)
Earnings (loss) per share
- basic                         $0.00      ($0.02)      ($0.03)      ($0.06)
- diluted                       $0.00      ($0.02)      ($0.03)      ($0.06)
Weighted average number
 of common shares
 outstanding
- basic                   311,339,001 291,886,424  307,869,004  279,353,462
- diluted                 314,806,937 291,886,424  307,869,004  279,353,462
----------------------------------------------------------------------------
Table 2: Third Quarter 2011 and 2010 Production Summary and Statistics (1,2)
                                      Q3          Q3      Change      Change
                                    2011        2010         (#)         (%)
Ore mined (tons)                 124,952      71,463      56,721         75%
Ore milled (tons)                121,844      75,263      46,581         62%
Head grade (g/tonne Au)             5.83        6.12       -0.29         -5%
----------------------------------------------------------------------------
Contained Gold (ounces)           20,732      13,436       7,296         54%
Ounces of gold produced (3)       19,119      12,568       6,551         52%
Ore mined per day (tons)           1,358         777         581         75%
Ore milled per day (tons)          1,324         818         506         62%
Mill recovery (%)                    92%         94%          -2         -2%
(1) All amounts for Q3-2011 are preliminary and based on initial end of
    period estimates. Final adjustments may be required.
(2) Certain numbers may not compute due to the effects of rounding and
    truncation.
(3) Before final refinery settlements, which may result in increases or
    decreases to reported gold production.
Table 3: Year-to-Date Production Summary and Statistics (1,2)
                           Q3      Q2      Q1  YTD-Q3  YTD-Q3  Change Change
                         2011    2011    2011    2011    2010     (#)    (%)
Ore mined (tons)      124,952 123,261 102,200 350,413 197,810 152,603    77%
Ore milled (tons)     121,844 114,624  82,792 319,260 192,686 126,574    66%
Head grade (g/tonne
 Au)                     5.83    6.35    6.47    6.19    6.52   -0.33    -5%
----------------------------------------------------------------------------
Contained Gold
 (ounces)              20,732  21,244  15,636  57,612  36,668  20,944    36%
Ounces of gold
 produced (3)          19,119  20,111  14,688  53,918  34,217  19,701    58%
Ore mined per day
 (tons)                 1,358   1,355   1,136   1,284     725     559    77%
Ore milled per day
 (tons)                 1,324   1,260     910   1,169     706     463    66%
Mill recovery (%)         92%     95%     94%     94%     93%       1     0%
(1) All amounts for Q3-2011 are preliminary and based on initial end of
    period estimates. Final adjustments may be required.
(2) Certain numbers may not compute due to the effects of rounding and
    truncation.
(3) Before final refinery settlements, which may result in increases or
    decreases to reported gold production.

The TSX and the OTCQX exchanges have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.

Contacts:
San Gold Corporation
Tim Friesen
Director, Communications
1 (855) 585-4653

San Gold Corporation
Gestur Kristjansson
Chief Financial Officer
+1 (204) 772-9149
www.sangold.ca

SOURCE: San Gold Corporation

http://www.sangold.ca

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