Pre-Merger Gold-Ore News Releases

 July 13, 2010
Gold-Ore Reports Strong Earnings in Second Quarter, 2010
 Vancouver, BC, Canada - Gold-Ore Resources Ltd. (GOZ:TSX) reports financial results for the period ending May 31, 2010 (Second Quarter 2010). The Company operates the 100%-owned Bjorkdal Gold Mine in Sweden. The financial results are expressed in Canadian dollars and further detail can be found in the Financial Statements and Management Discussion and Analysis filed on SEDAR and the Company's website at www.goldore.ca.

Financial Highlights for the Second Quarter 2010 compared to First Quarter 2010
  • Revenues up by 24% to $13.0 million
  • Earnings increased by 452% to $2.4 million or $0.03 per share
  • Working Capital increased by 34% to $6.8 million
  • Operating cash flow before changes in working capital items jumped by 109% to $4.1 million or $0.05 per share
  • Total cash costs decreased by 10% to US$723 per ounce
  • Average realized gold price of US$1,161 per ounce
  • Gold production increased by 14% to 11,427 ounces (355.4 kg)
Gold-Ore Chairman Glen Dickson commented, "The Company's second quarter continued a trend over the last several quarters of improving financial and operating performance at Bjorkdal. Financially, we continue to increase our working capital and reduce our cash cost per ounce, and we are on track to match or exceed last year's earnings. Operationally, efforts continue to optimize our mining methods to improve the economics of the operation, which will provide even better returns in subsequent quarters at current gold prices."


Grade Increase Initiative

The underground mining at Bjorkdal is susceptible to dilution from waste rock due to over-breakage during blasting. To improve grade by reducing dilution, a technique known as cable bolting was tested to stabilize the walls of a stope prior to blasting. Initial results are highly encouraging and indicate a significant reduction in over-breakage. The Company will continue to optimize this technique in other areas of the mine.

Cost Reducing Initiatives

Management at the Bjorkdal mine has reviewed the costs associated with contractors employed on site and several changes to reduce costs were made in the last few months. Tenders for tunnelling and underground ore haulage have recently been requested and several pieces of large equipment have been ordered to commence some in-house mining. The Company has adopted a business plan to transition towards an owner-operator business model and become less reliant on contractor services. These new initiatives will have a positive impact on production costs in the months ahead.

About Gold-Ore

Gold-Ore Resources is a gold mining and exploration company currently focused in the Skelleftea mining district in northern Sweden. The Company's primary asset is the Bjorkdal Mine, which is cash flow positive, debt-free and unhedged. In addition to Bjorkdal, the Company also has other assets in the district including the mineral rights to 57 square kilometres around the mine site, as well as the Norrliden Polymetallic Deposit.

For more information please contact the Company at (604) 687-8884 or Troy Winsor at 1-800-663-8072. Bjorkdal property information is posted on the Company's web site at www.goldore.ca


ON BEHALF OF THE BOARD


Glen Dickson
Chairman


The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
 
 

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