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November 13, 2008 - Vancouver, British Columbia - Redcorp Ventures Ltd. (RDV-TSX) and its wholly-owned consolidated subsidiaries Redfern Resources Ltd. and Redcorp Empreendimentos Mineiros Unipessoal Lda. (collectively, "Redcorp") will, on or before November 14, 2008, file on www.sedar.com and mail to shareholders its interim report for the three and nine month periods ending September 30, 2008. In this release, we provide a comparative summary of the quarter's operational and financial highlights. Readers are advised that due to the summary nature of this release, the highlights should be read in conjunction with our interim MD&A and unaudited interim consolidated financial statements contained in our 3rd Quarter 2008 report, once available.
Summary of Operational and Financial Highlights
The following table shows selected comparative consolidated financial information for the three and nine month periods ended September 30, 2008 and 2007.
(1) Interest and financing charges are net of interest that is capitalized ("capitalized interest") against capital expenditures incurred on the construction of the Mine.
(2) Includes expenditures in property, plant and equipment, and oil and gas interests.
The following items summarize the key operational and financial highlights of the quarter:
� We reached an agreement in principle with our noteholders, which allowed us to work immediately on preparing an amended note indenture (finalized October 15, 2008) that has provided us, subject to certain conditions, full access to over $200 million for purposes of constructing the Tulsequah Chief Mine (the "Mine"). Such amount arose when:
� We signed a letter agreement with HSBC Bank Canada ("HSBC") wherein HSBC offered to provide us with a new non-revolving loan facility for up to $85 million, replacing the former facility of up to $64 million. As support for the loan, HSBC will require a first-priority security interest in our asset backed commercial paper;
� We executed the final agreement with Gold Wheaton Gold Corp. ("Gold Wheaton") to sell our gold produced by the Mine in exchange for an up-front payment of US$90 million and US$400 per ounce of gold sold; and
� We continued to work on finalizing definitive documents related to a Memorandum of Understanding that we have with MRI Trading AG ("MRI") wherein a $25 million contingent credit facility is offered;
� We received our Construction Discharge Approval from the Ministry of Environment which allows for the operation of the interim water treatment plant, key to treating historic acid drainage from the Minesite;
� We incurred capital expenditures of $39.6 million, virtually all of which was related to the development of the Mine; and
� We appointed Peter Nelega to the position of Mill Superintendent for the Mine operations. During construction, Mr. Nelega will be responsible for management and design guidance and during operations he will be responsible for metallurgy, maintenance, cost tracking and the continuing optimization of the facility. He has over 25 years of relevant experience, having previously worked at Minto Explorations Ltd. and Eskay Creek mines.
A key challenge during the quarter was:
� The number of barge loads transporting materials and equipment to the Minesite was considerably less than planned, due in part to river water levels and late delivery of conventional tugs and barges.
Activities During 2008-Q3
Financing Activities
On September 17, 2008, we reached an agreement in principle with greater than 66 2/3% of our noteholders allowing certain amendments to their governing indenture in exchange for a package of consent fees. The amendments allow us access to various funding parcels including: a new loan facility with HSBC that we announced on August 22, 2008 for up to $85 million (prior loan maximum was $64 million); an up-front payment of US$90 million to be followed by a revenue stream of US$400 per ounce of gold produced and sold from the Minesite pursuant to a gold sale agreement with Gold Wheaton Gold Corp. (executed on September 18, 2008); and a $25 million contingent credit facility previously offered by MRI.
The consent fee package payable to the noteholders referred to above includes: a 2.5% increase over the existing 13% per annum interest rate, payable in cash at maturity, and accrued semi-annually to the outstanding principal of the notes, coupled with a semi-annual cash interest payment of 13% that will be applied against the outstanding principal; a 2.5% net smelter return royalty ("NSR") payable semi-annually applied to all metals produced and sold from the Mine; and the issuance of approximately 701 three-year non-tradable warrants per $1,000 principal amount of our currently outstanding notes, each priced at $0.09876 and exercisable into one of our common shares.
Investing Activities
Currently, there is no active market for the non-bank asset backed commercial paper ("ABCP') we hold and no liquidity is anticipated until implementation of a restructuring plan that has been given clearance by the Supreme Court of Canada. The Pan-Canadian Investor Committee for Third-Party Structured ABCP currently expects that the restructuring will be completed by the end of November 2008. Once implemented, management expects a secondary trading market to develop. As at September 30, 2008, we were required under Canadian generally accepted accounting principles to recognize a valuation impairment of $1.8 million resulting in a balance sheet carrying value for our ABCP of $66.5 million.
Permitting and Community Relations Activities
On August 1, 2008, we received our Construction Discharge Approval from the Ministry of Environment which allows for the operation of the interim water treatment plant, key to treating historic acid drainage from the Mine. We also received early in 2008-Q3 the required amendment to our license to cut trees from the Ministry of Forests for the Paddy's Flats lay-down and staging area. This accompanied an amendment associated with the geotechnical work approved by the Ministry of Mines of Energy and Mines for the tailings management facility ("TMF").
An amendment package to Alaska in relation to the change in river transportation equipment was first submitted in August 2008 with additional information submitted in September and October. The predicted completion date for that process was previously November 2008, but due to requests for additional information has been pushed back to December/January. The format will be a 30-day Alaska Coastal Management Program process that includes a public meeting and 17-day public comment period in that time. We received the necessary Navigable Waters Permit for our south causeway bridge 9 in August 2008.
Subsequent Events
Noteholder Approval for Indenture Amendments
On October 15, 2008, we executed with the requisite majority of our noteholders an amendment and restatement to their governing note indenture. The amended document finalized the agreement in principle which allowed for the continuation toward final execution of the HSBC loan facility, the gold sale to Gold Wheaton and the MRI contingency credit facility (for further details, see the section in this MD&A entitled, Details of Financing Activities, and notes 16 and 18 to our unaudited interim consolidated financial statements).
Permitting and Community Relations Activities
The most important subsequent event related to these activities was the acquisition of permits and approvals for the south causeway, received late October 2008. This allows for the required link between all facilities and the barge landing area at the Minesite. Geotechnical work necessary for the TMF was completed in October 2008. This completes data acquisition in order to develop a final design report for the TMF and the Mines Act permit amendment MA-3 to M-232. A decision by the Chief Inspector is anticipated in January 2009.
At the date of this MD&A, we are expecting imminent receipt of our MA-2 permit, which allows the development of the Minesite and commencement of underground operations.
Lagoa Salgada, New Concession Agreement
Effective October 1, 2008, we signed a new concession agreement with the Government of Portugal increasing our concession area at Lagoa Salgada from 103.0 square kilometers (km2) to 208.4 km2. This agreement also reduced the minimum maintenance requirements, which are satisfied through a combination of work programs and cash payments. After the first two years of the agreement, we have the option of applying for up to two one-year extensions, or of applying for one or more exploitation contracts. The area of the concession must be reduced by 50% upon each extension.
Mining exploration, mining and processing activities involve a high degree of risk. There are several risk factors that may cause actual results to differ materially from the forward-looking information included in this news release, or which otherwise affect our business. Such other factors are discussed in detail in our Interim Report for the quarter ended June 30, 2008, and our Annual Information Form and MD&A for the year ended December 31, 2007 as filed by us on www.sedar.com.
Redcorp Ventures Ltd. is a Vancouver-based mineral exploration and development company with active projects in British Columbia and Portugal. Further information on Redcorp and the Tulsequah Project can be obtained on our website at www.redcorp-ventures.com and at Redfern's website at www.redfern.bc.ca or by calling toll-free to Troy Winsor, Manager of Investor Relations or Salina Landstad, Manager of Public Relations, at the contact numbers listed below.
ON BEHALF OF THE BOARD OF DIRECTORS OF REDCORP VENTURES LTD.
"Terence Chandler"
Terence Chandler
President and CEO
Contacts:
Troy Winsor
Manager, Investor Relations
604-466-8934 / 1-888-225-9662
Salina Landstad
Manager, Public Relations & Corporate Communications
604-639-0135 / 1-888-669-4775 ext. 103
Certain of the statements made and information contained herein may contain "forward-looking information" within the meaning of the British Columbia Securities Act, Alberta Securities Act and Ontario Securities Act or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States, including, without limitation, statements concerning the Company's plans at its Tulsequah Project and other mineral properties and the Company's revised economic evaluation of the Tulsequah Project, which involve known and unknown risks, uncertainties and other factors, some of which are beyond the Company's control which may cause the actual results, performance or achievements of the Company, or industry results and/or consensus metal prices, to be materially different from any future results, metal prices, performance or achievements expressed or implied by such forward-looking information or forward-looking statements. Forward-looking information and forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information or forward-looking statements, including, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, the ultimate recovery, if any, of the Company's investment in ABCP that has since August 2007 been the subject of a liquidity restructuring plan proposed by the Pan Canadian Committee representing the Montreal Accord and sanctioned on August 18, 2008 by the Ontario Court of Appeal pursuant to section 6 of the Companies' Creditors Arrangement Act (leave to appeal to the Supreme Court of Canada was refused on September 19, 2008) and expected to be finalized and distributed on or before the end of November 2008, risks relating to the availability of financing for activities when required and on acceptable terms, risks relating to the inability to achieve the conditions required to receive full funding contemplated by its gold sale agreement or the MRI contingency loan, the risk that HSBC Bank Canada will not fulfill its loan obligations, risks related to the ability to secure capital leasing arrangements for the purchase of mining equipment on suitable terms if at all, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, the achievement and maintenance of planned production rates, the accuracy of component costs of capital and operating cost estimates, current and future environmental and regulatory requirements, favourable governmental relations, the availability of permits and the timeliness of the permitting process, the availability of shipping services, the availability of specialized vehicles and similar equipment, costs of remediation and mitigation, maintenance of title to the Company's mineral properties, industrial accidents, equipment breakdowns, contractor's costs, remote site transportation costs, materials costs for remediation, labour disputes, the potential for delays in exploration or development activities, timely completion of future NI 43-101 compliant reports, timely completion of future feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, continuing global demand for base metals, the fact that the 2007 Feasibility Study is based upon probable mineral reserves and not proven mineral reserves, expectations and beliefs of management and other risks and uncertainties, including those described under "Risk Factors" in the Annual Information Form of the Company filed on SEDAR on March 31, 2008, and in each subsequent management's discussion and analysis. Forward-looking information and forward-looking statements for time periods subsequent to 2008 involve longer term assumptions and estimates than forward-looking information and forward-looking statements for 2008 and are consequently subject to greater uncertainty. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information or forward-looking statements. When used herein, the words "anticipate", "believe", "estimate" and "expect" and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking information or forward-looking statements relating to the business and affairs of the Company. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise.
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