Adamus Resources Limited - 2011 Annual Financial Report

PERTH, Western Australia, Sept. 12, 2011 /CNW/ -- 
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
 DISSEMINATION IN THE UNITED STATES/


PERTH, Western Australia, Sept. 12, 2011 /CNW/ - Adamus Resources
 Limited ("Adamus" or the "Company") (ASX and TSXV: ADU) advises that it
 has lodged its Annual Financial Report for the year ended June 30,
 2011, as per its Australian regulatory requirements. A copy of the
 Annual Financial Report can be found on the SEDAR website at www.sedar.com.


Adamus is starting to see the financial benefits from the commencement
 of commercial production at its mine in Ghana five months ago. The
 first quarter of commercial production, commencing 1 April 2011,
 generated operating cash flows of A$9.2M on commercial gold production
 of 26,015oz.


Gold production for the financial year ending 30 June 2012 is forecast
 to be between 100,000 and 105,000 ounces at a forecast cash cost of
 between US$575 - 600 per oz, indicating ongoing profitable operations.


The 2011 financial year has been a year of transformation for Adamus,
 with the successful completion of construction and commissioning of the
 processing plant at the Company's Nzema Gold Project. First gold pour
 was achieved on 17 January 2011, followed by commencement of commercial
 production on 1 April 2011.


The successful completion of the project is reflected in the
 consolidated statement of financial position in the Company's 2011
 Annual Financial Report, particularly through the increase in property,
 plant & equipment of A$69.9M. The drawn Project debt facility of US$60M
 is also shown in the consolidated statement of financial position,
 split between current and non current borrowings.


The Group recorded a loss for the 2011 financial year (after providing
 for income tax) of A$68.0M (2010: A$82.5M loss). This included gross
 profit of A$9.6M resulting from the first quarter of commercial
 operations. This was offset by a movement in the non-cash accounting
 loss on the gold forward hedge contract of A$42.7M (2010: A$76.1M loss)
 and unrealised foreign exchange ("FX") losses of A$22.1M (2010: A$2.2M
 profit). FX losses resulted mainly from the revaluation of intercompany
 loans at balance date. There is currently no intention to seek
 repayment of the intercompany loans in the short term.


Adamus' Managing Director Mark Connelly said: "At a time of record gold
 prices, we now look forward to a full year of production for the 2012
 financial year."


About Adamus 
Adamus Resources is a gold producer, with its key asset located in
 Ghana, West Africa. The company poured its first gold in January 2011,
 entered commercial production three months later and is on target is to
 produce 100,000 ounces of gold annually from its flagship Nzema Gold
 Project. The project includes open pit mining operations, a processing
 facility and associated infrastructure to mine and process ore. On
 current estimates the project has a minimum life of 10 years.


As well as continuing with an extensive exploration program aimed at
 expanding its operations in Ghana, Adamus is also targeting additional
 discoveries from its significant landholding in Liberia. Both countries
 provide a stable, mining-friendly political and economic environment
 for Adamus to operate.


Adamus is headquartered in Perth, Western Australia. The company is
 listed on the Australian Securities Exchange, TSX Venture Exchange and
 Frankfurt Stock Exchange Open Market.


In August 2011 the Company announced its intention to merge with
 Endeavour Mining Corporation. Endeavour owns the Youga Gold Mine in
 Burkina Faso, West Africa as well as a pipeline of exploration and
 development projects in the region. If approved by Adamus and Endeavour
 shareholders, the merger is likely to take place in December 2011.


Kind regards
ADAMUS RESOURCES LIMITED 


"signed"


Mark Connelly
Managing Director/CEO


Neither TSX Venture Exchange nor its Regulation Services Provider (as
 that term is defined in the policies of the TSX Venture Exchange)
 accepts responsibility for the adequacy or accuracy of this release.


Caution Regarding Forward Looking Information


Certain statements included in this announcement constitute
 forward-looking information, including, among other things, statements
 regarding forecasted gold production, and expected cash costs.
 Forward-looking information is based upon a number of estimates and
 assumptions made by the Company in light of its experience, current
 conditions and expectations of future developments, as well as other
 factors that the Company believes are appropriate in the circumstances.
 While these estimates and assumptions are considered reasonable by the
 Company, they are inherently subject to business, economic,
 competitive, political and social uncertainties and contingencies. Many
 factors could cause the Company's actual results to differ materially
 from those expressed or implied in any forward-looking information
 provided by the Company, or on behalf of, the Company. Such factors
 include, among other things, risks relating to additional funding
 requirements, metal prices, exploration, development and operating
 risks, competition, production risks, regulatory restrictions,
 including environmental regulation and liability and potential title
 disputes. Investors are cautioned that forward-looking information is
 no guarantee of future performance and, accordingly, investors are
 cautioned not to put undue reliance on forward-looking information due
 to the inherent uncertainty therein. Forward-looking information is
 made as at the date of this announcement and the Company disclaims any
 intent or obligation to update publicly such forward-looking
 information, whether as a result of new information, future events or
 results or otherwise.


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