Liberty Mines Reports Financial Results for First Quarter 2012

TSX: LBE

TORONTO , May 14, 2012 /CNW/ - Liberty Mines Inc. (LBE.TO) ("Liberty" or the "Company") today reported its financial results for the 3-month period ended March 31, 2012 . All amounts are in Canadian currency.

"Our first quarter was marked by our most significant milestone since we began our turn-around strategy nine months ago," said Mr. Chris Stewart , President and CEO of Liberty Mines. "With the re-start of mining and milling operations now behind us, we can focus our efforts on maximizing production of our nickel concentrate, and continuing to add to our resources and reserves through a strategic exploration program. These efforts will not only generate improved financial results in the near term through increased revenue and cash flow, they will also effectively position us for future long-term growth."

Q1 2012 Operational Highlights

Highlights Subsequent to Quarter End

Selected financial highlights

Review of Q1 Financial Performance Revenue for Q1 2012 was $19,240 down from $2.1 million for Q1 2001. The year-over-year decline was due to a shut-down of mining and milling operations initiated by the Company in February, 2011. Mining and milling operations were effectively re-started on March 31 , 2012. Given the timing of the start date, the company expects revenue and cash flow from operations to resume in Q2 2012. Revenue generated in Q1 2012 stemmed from the final settlement on precious metals shipped in 2011.

Net loss for Q1 2012 was $8.0 million or $0.04 per basic and fully diluted share. The loss included amortization expenses of $1.4 million , interest on long-term debt of $2.2 million and dividends on preferred shares of $0.3 million . In the same period of 2011, Liberty recorded a net loss of $5.1 million or $0.03 per basic and fully diluted share. Liberty's mining and milling operations were partially functional in Q1 of 2011.

At March 31, 2012 , Liberty had cash and cash equivalents of $546,600 . This compares to $1.3 million at year end 2011.

Liberty's financial statements for the period ended March 31, 2012 are available at http://www.libertymines.com and http://www.sedar.com. The financial statements should be read in conjunction with the accompanying notes and management's discussion and analysis.

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Liberty Mines Reports Financial Results for First Quarter 2012