CAU Canyon Resources Corp

Canyon Resources Reports Third Quarter Financial Results GOLDEN, Colo., Nov. 14 /PRNewswire-FirstCall/ -- Canyon Resources Corporation , a Colorado-based mining company, today announced a third quarter 2003 net loss of $2.5 million, or $0.11 per share, on revenues of $3.2 million, compared to a restated net loss of $0.1 million, or $0.01 per share, on revenues of $4.9 million for the third quarter of 2002. For the nine months ended September 30, 2003, the Company recorded a net loss of $7.3 million, or $0.34 per share, on revenues of $10.5 million, compared to a restated net loss of $4.3 million, or $0.23 per share, on revenues of $11.8 million for the nine months ended September 30, 2002. The prior period results have been restated to give effect to adjustments related to i) expensing of previously capitalized costs for the McDonald Gold Project; ii) commencing to amortize the carrying values of the McDonald and Seven-Up Pete mineral interests as of January 1, 2002; and iii) including depreciation, depletion and amortization as a cost in inventories at the Company's Briggs Mine. Overall, the adjustments decreased the Company's net income in the third quarter of 2002 by approximately $0.4 million, or $0.02 per share. For the nine months ended September 30, 2002, the adjustments increased the Company's net loss by approximately $1.4 million, or $0.07 per share. Gold production from the Briggs Mine during the third quarter of 2003 was 8,676 ounces, and sales were 8,705 ounces of gold and 1,500 ounces of silver at an average price of $369 per equivalent gold ounce. For the comparable period of 2002, gold production was 17,574 ounces and sales were 16,700 ounces of gold and 2,500 ounces of silver at an average realized price of $294 per equivalent gold ounce. For the nine months ended September 30, 2003, gold production was 30,742 ounces and sales were 30,936 ounces of gold and 9,843 ounces of silver at an average realized price of $338 per equivalent gold ounce. For the comparable period of 2002, gold production was 39,209 ounces and sales were 38,938 ounces of gold and 11,554 ounces of silver at an average realized price of $303 per equivalent ounce. During the third quarter, the last ore from the Goldtooth pit containing 7,319 ounces of gold were contract crushed and placed on pad. Layback of waste rock at the North Briggs pit continued throughout the quarter and will continue until the end of 2003. North Briggs ores containing approximately 32,000 ounces of gold are scheduled to be mined, upon completion of the layback, in the first quarter of 2004. Recoverable gold inventory on leach pad at September 30, 2003, was 22,060 ounces. In addition to producing gold from its Briggs Mine in California, Canyon owns the Seven-Up Pete Venture which has invested $75 million in the 10 million ounce McDonald Gold Project in Montana, which is constrained from current development by the anti-mining initiative, I-137. The Company has filed suit against the State of Montana seeking to overturn I-137 or to obtain a damage award, which could be as much as $500 million, for the lost value of the Seven-Up Pete properties, including the McDonald Gold Project. Actual results may differ materially from any forward-looking statement whether expressed or implied in this news release. The following risks and uncertainties which could cause actual results to vary include, but are not limited to: speculative nature of mineral exploration, precious metals prices, production and reserve estimates, production costs, cash flows, environmental and governmental regulations, availability of financing, judicial proceedings and force majeure events. Most of these factors are beyond the Company's ability to control or predict. FOR FURTHER INFORMATION, CONTACT: Richard H. De Voto, President, or Gary C. Huber, Vice President-Finance, both of Canyon Resources Corporation, +1-303-278-8464. Canyon Resources Corporation & Subsidiaries Summarized Financial and Production Information (Unaudited) BALANCE SHEET September 30, 2003 Dec. 31, 2002 Assets Current assets $13,273,700 $10,590,700 Noncurrent assets 25,879,400 26,435,200 Total assets $39,153,100 $37,025,900 Liabilities and stockholders' equity Current liabilities $4,299,500 $6,607,900 Notes payable - long term 2,699,000 -- Other noncurrent liabilities 4,132,500 3,922,600 Stockholders' equity 28,022,100 26,495,400 Total liabilities and stockholders' equity $39,153,100 $37,025,900 Three months ended Nine months ended September 30, September 30, 2003 2002 2003 2002 (Restated) (Restated) STATEMENT OF OPERATIONS Revenue $3,208,700 $4,903,600 $10,458,400 $11,783,900 Cost of sales 3,449,400 4,459,100 11,251,100 11,651,700 Depreciation, depletion & amortization 1,345,500 1,860,800 4,975,800 4,850,500 Selling, general & administrative 334,100 277,100 1,179,300 1,017,100 Exploration and development costs 252,500 188,600 642,700 480,300 Accretion expense 46,500 -- 139,600 -- Gain (loss) on asset disposals 9,500 1,328,300 85,200 2,729,800 Other income (expense), net (240,300) 411,400 396,100 (770,300) Cumulative effect of change in accounting principle -- -- (11,700) -- Net loss ($2,450,100) ($142,300) ($7,260,500) ($4,256,200) Net loss per share ($0.11) ($0.01) ($0.34) ($0.23) Weighted average shares outstanding 23,107,200 19,766,100 21,480,400 18,420,200 CASH FLOW Cash & cash equivalents, beginning of period $1,593,900 $474,900 $430,800 $ 1,618,100 Net cash provided by (used in) operating activities 350,800 (720,900) (677,300) (3,111,900) Net cash provided by (used in) investing activities (1,196,100) 1,410,200 (1,425,100) 3,198,100 Issuance of stock, net 5,294,900 -- 6,156,700 2,171,500 Proceeds from stock to be issued 245,000 -- 245,000 -- Proceeds from sale of debentures -- -- 3,299,000 -- Payments on debt & other obligations (467,200) (169,700) (2,207,800) (2,881,300) Cash & cash equivalents, end of period $5,821,300 $994,500 $5,821,300 $994,500 PRODUCTION AND SALES DATA Gold production (oz) 8,676 17,574 30,742 39,209 Gold sales (oz) 8,705 16,700 30,936 38,938 Per ounce amounts: - Cost of sales* $346 $267 $294 $299 - Average realized price per ounce $369 $294 $338 $303 - Average market price (COMEX) $363 $314 $354 $306 * Before write downs of inventory to net realizable value. DATASOURCE: Canyon Resources Corporation CONTACT: Richard H. De Voto, President, or Gary C. Huber, Vice President-Finance, both of Canyon Resources Corporation, +1-303-278-8464

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