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New Pacific Metals Corp.
Announces Results for
the First Quarter
Ended Septermber 30, 2010
VANCOUVER,
BRITISH COLUMBIA - NOVEMBER 29, 2010) - New Pacific Metals Corp. (TSX-V:
NUX) (the "Company") announces its unaudited
consolidated financial results for the first quarter ended September 30,
2010. All references to dollars or monies are expressed in Canadian
Dollars.
FIRST QUARTER
HIGHLIGHTS
The Company:
> successfully acquired 79.2% of issued and outstanding shares of Tagish Lake Gold Corp. ("TLG"), a Canadian
publicly traded company involved in the exploration and development of
gold-silver mineral deposits in Yukon Territory, Canada. TLG's main assets
consist of three identified gold and gold-silver mineral deposits: Skukum Creek, Goddell Gully,
and Mount Skukum; and
> entered into a share transfer agreement with a Chinese third party to
sell Yunnan Jin Chang Jiang Mining Co. Ltd. ("JCJM"), which holds
Huaiji Project, for a total of $30.5 million
(CNY�200 million). The first deposit of $3.08 million (CNY�20 million) has
been received by the Company as of September 30, 2010.
Due to increased administration activities to support the acquisition and
disposition transactions, loss from continuing operations increased by
$97,091 to $470,433, compared to the three months ended September 30, 2009
("Q1 2010") of $373,342.
Operation results of JCJM was recorded as loss from discontinued
operations, which increased by $75,291 to $133,535 (Q1 2010 - $58,244),
mainly due to loss on disposal of equipment.
Total loss for the period was $603,968 or $0.018 per shares, an increase of
172,382 compared to $431,586 or $0.014 per shares in Q1 2010.
Gain on disposal of mineral property interest was $14,443 (Q1 2010 -$nil),
resulted from disposal of two exploration permits respectively of the Kang
Dian Project and the Sichuan Project.
During the quarter, the Company entered into a $15 million credit facility
to fund the acquisition of TLG. As of September 30, 2010, the Company had a
working capital deficit of $250,985 (June 30, 2010 � positive $8,964,681).
Cash and cash equivalents plus short term investments amounted to
$11,124,753 (June 30, 2010 - $9,334,948) and are unencumbered.
OUTLOOK
The Company is planning to increase its interest in TLG to 100% by
acquiring remaining shares currently not held by the Company, and to
develop the Tagish Lake Gold Project to
production while exploring the resource potential in this area.
The Company's Unaudited
Interim Consolidated Financial Statements and Management's Discussion and
Analysis are available for review on our website at
www.newpacificmetals.com and through SEDAR at www.sedar.com.
About New Pacific
Metals
New Pacific is engaged in the exploration and development of mineral
resources in Canada and China. The Company's strategy is to focus on
projects which it believes can be developed in a relatively short time
frame into high-margin operations with reasonable development capital
profiles. Its goal is to get a project into production, well before the
full resource potential of the property is defined, so that further
exploration expenses to grow in resources and capital costs to increase
production can be funded from the cash flows generated from early
operations.
For Further
Information:
Investor Relations
Phone: (604) 633-1368
Fax: (604) 669-9387
Email: info@newpacificmetals.com
Website: www.newpacificmetals.com
The TSX Venture Exchange
has not reviewed and does not accept responsibility for the adequacy or
accuracy of the release.
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