CAU Canyon Resources Corp

Canyon Resources Files Second Quarter Form 10-Q GOLDEN, Colo., Oct. 25 /PRNewswire-FirstCall/ -- Canyon Resources Corporation (AMEX:CAU), a Colorado-based mining company, announced that it filed the 2004 Second Quarter Report on Form 10-Q today, October 25, 2004. As previously reported, the Company was not in compliance with the American Stock Exchange's (Amex) Company Guide because it had not filed the Form 10-Q. Today's filing was made within the time extension granted by the Amex in order for the Company to regain compliance with the Amex listing standards. The Company has restated its prior financial statements and filed an amended 2003 Form 10-K and an amended 2004 First Quarter Report on Form 10-Q. The Company restated its financial statements principally for the impact resulting from a correction in the model used for testing the Briggs Mine impairment and expensing certain costs as exploration expenditures. Today the Company announced a second quarter 2004 net loss of $2.4 million, or $0.09 per share, on revenues of $5.8 million, compared to a restated net loss of $5.8 million, or $0.28 per share, on revenues of $3.4 million for the second quarter of 2003. For the six months ended June 30, 2004, the Company recorded a net loss of $6.3 million, or $0.23 per share, on revenues of $7.6 million, compared to a restated net loss of $6.9 million, or $0.33 per share, on revenues of $7.2 million for the six months ended June 30, 2003. The prior period results have been restated to give effect to adjustments related to the items discussed above. Gold production from the Briggs Mine during the second quarter of 2004 was 14,551 ounces, and sales were 14,805 ounces of gold at an average price of $394 per equivalent gold ounce. For the comparable period of 2003, gold production was 9,302 ounces and sales were 9,681 ounces of gold and 4,043 ounces of silver at an average realized price of $350 per equivalent gold ounce. For the six months ended June 30, 2004, gold production was 20,233 ounces and sales were 19,345 ounces of gold and 2,200 ounces of silver at an average realized price of $391 per equivalent gold ounce. For the comparable period of 2003, gold production was 22,066 ounces and sales were 22,231 ounces of gold and 8,343 ounces of silver at an average realized price of $326 per equivalent ounce. The Company had cash and cash equivalents of $8.1 million at September 30, 2004. 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 please 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 June 30, 2004 December 31, 2003 (Restated) Assets Current assets $14,066,500 $9,503,300 Noncurrent assets 19,401,700 23,809,900 Total assets $33,468,200 $33,313,200 Liabilities and Stockholders' Equity Current liabilities $6,584,900 $4,615,900 Notes payable - long term -- 2,599,000 Other noncurrent liabilities 1,630,800 3,404,800 Stockholders' equity 25,252,500 22,693,500 Total liabilities and stockholders' equity $33,468,200 $33,313,200 Three months ended Six months ended June 30, June 30, 2004 2003 2004 2003 (Restated) (Restated) STATEMENT OF OPERATIONS Revenue $5,826,400 $3,387,100 $7,563,900 $7,249,700 Cost of sales 4,087,800 3,852,100 6,442,900 6,965,200 Depreciation, depletion & amortization 2,425,700 1,281,800 3,528,300 2,971,600 Selling, general & administrative 468,100 538,000 2,466,400 991,600 Exploration costs 80,100 179,300 294,500 404,300 Accretion expense 43,300 46,600 86,600 93,100 Asset retirement obligation 935,200 -- 935,200 -- Impairment of long-lived assets -- 3,382,000 -- 3,382,000 Gain (loss) on asset disposals (800) (600) (800) 75,700 Other income (expense), net (188,100) 45,600 (88,400) 612,800 Cumulative effect of change in accounting principle -- -- -- (11,700) Net loss ($2,402,700) ($5,847,700) ($6,279,200) ($6,881,300) Net loss per share ($0.09) ($0.28) ($0.23) ($0.33) Weighted average shares outstanding 27,985,900 21,021,100 27,181,900 20,660,800 CASH FLOW Cash & cash equivalents, beginning of period $9,326,300 $1,559,200 $4,139,800 $430,800 Net cash provided by (used in) operating activities 421,200 (419,700) (1,953,900) (1,028,100) Net cash provided by (used in) investing activities (800) (346,400) (382,000) (229,000) Issuance of stock, net 393,300 -- 8,341,000 26,000 Proceeds from exercise of warrants -- 835,800 -- 835,800 Proceeds from sale of debentures -- -- -- 3,299,000 Payments on debt & other obligations (1,041,400) (35,000) (1,046,300) (1,740,600) Cash & cash equivalents, end of period $9,098,600 $1,593,900 $9,098,600 $1,593,900 PRODUCTION & SALES DATA Gold production (oz) 14,551 9,302 20,233 22,066 Gold sales (oz) 14,805 9,681 19,345 22,231 Per ounce amounts: - Average realized price $394 $350 $391 $326 - Average market price (COMEX) $393 $347 $401 $350 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 Web site: http://www.canyonresources.com/

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