North American Tungsten Comments on Q1 2013 Results

North American Tungsten Corporation Ltd.announces a net loss of $4.0 million or $0.02 per share for its first quarter ended December 31, 2012 ("Q1 2013") compared to net earnings of $6.6 million or $0.03 per share for the first quarter end of fiscal 2012 ("Q1 2012").

Highlights for Q1 2013:

    Record production of 80,693 mtus at the CanTung Mine since restart of operations in 2010
    Revenue dropped to $11.5 million vs. $26.4 million for Q1 2012 due to lower volume and prices
    Cash flow from operating activities of $0.1 million vs. $6.5 million for Q1 2012
    Net loss of $4.0 million vs. net income of $6.6 million for Q1 2012
    In Q2, tungsten prices are again trending upwards and customer demand is again strong

FINANCIAL REVIEW

The Company's Q1 2013 financial results were negatively affected by the significant drop in APT prices during the latter half of 2012, dropping from a high of USD$450/mtu in December 2011 to a low of USD$295/mtu in December 2012 (An mtu is a metric tonne unit of 1 percent of a metric tonne (22.046 pounds) of contained WO3; tungsten concentrate prices are based on APT quotations).

This significant price drop, most of which occurred in the last calendar quarter of 2012 with major impact in Q1 2013, was driven by worldwide economic uncertainty and a reduction in overall demand.

In addition there was a delay in the renewal of a Supply Agreement with one of our major customers. This is now complete and deliveries re-started as of January 1, 2013. During Q1 2013 the Company also successfully negotiated an additional Supply Agreement with a major North American customer.

OPERATIONAL HIGHLIGHTS

The Company is very pleased with Q1's record production of 80,693 mtus by our "Tungsten Team" at the CanTung Mine. The mill processed 90,625 tonnes of ore during the quarter, with an average feed grade of 1.12% WO3 and average mill recovery of 79.5% compared to Q1 2012 in which 76,628 mtus were produced from 88,460 tonnes of ore milled with an average feed grade of 1.12% and an average mill recovery of 77.4%.

"The increase in both throughput and mill recovery at CanTung were contributing factors in weathering the recent APT pricing downturn," said Stephen Leahy, CEO of NTC. He went on to say, "the APT market prices have risen steadily since the beginning of January and are now in the USD$345 to USD$355 range per mtu which is a very good sign for producing companies such as ourselves," Mr. Leahy further stated, "I wish to thank our "Tungsten Team" for all of their hard work and dedication in achieving this record quarterly production. We look forward to working closely with all our stakeholders, shareholders, vendors, customers and partners to building a better Company for all."

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
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