3rd Quarter Results

    RNS Number : 2884I
  Moydow Mines International Inc
  17 November 2008
   





    Third Quarter

    Interim Report

    Three Months Ended September 30, 2008






    Dublin Office                                    
    74 Haddington Road                          
    Dublin 4, Ireland
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    Toronto Office
    Suite 1220, 20 Toronto Street
    Toronto, Ontario M5C 2B8
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    Moydow Mines International Inc.
    Management's Discussion and Analysis of Financial Condition and Operating Results
    For the three months ended September 30, 2008
    General

    This interim management discussion and analysis ("MD&A") is a review of Moydow's financial and operating results for the third quarter
ending September 30, 2008 and is compared with those for the corresponding quarter of 2007. In order to better understand the MD&A, it
should be read in conjunction with the audited consolidated financial statements ("Consolidated Financial Statements") of the Company and
notes thereto for the year ended December 31, 2007. The MD&A has been prepared as at November 10, 2008. The consolidated financial
statements have been prepared in accordance with Canadian generally accepted accounting principles. The reporting currency for the Company
is the United States dollar, and all amounts in the following discussion are in United States dollars unless otherwise noted.  The attached
financial statements have not been reviewed by the Company's auditors.

    Company Overview

    Moydow Mines International Inc. ("Moydow" or the "Company") is an international exploration company with primary interests in precious
and industrial minerals and diamonds. Exploration activities are focused principally in Africa. Moydow Mines' common shares are listed on
both the Toronto Stock Exchange and the AIM Market of the London Stock Exchange (symbol "MOY"). For further information on the Company
please visit our website at www.moydow.com or view our public filings on the SEDAR website at www.sedar.com.

    Subsidiaries and affiliated companies of Moydow are organized internationally so that each has a specific geographic area or mineral
project interest. Moydow provides administrative, technical and financial assistance to these companies.

    The Company, on July 14, 2008 closed a transaction whereby the Company's 50% (indirect) interest in the Port Loko bauxite exploration
licence in Sierra Leone has been sold to a private company for purposes of accelerated development. Under terms reached with Sierra Alumina
Ltd. ("Sierra"), a company whose largest shareholder is RAB Special Situations (Master) Fund Limited (an investment fund managed by RAB
Capital Plc), the Company will receive cash consideration equal to:

    - US$1,525,000 as a non-refundable upfront payment (received on closing); and

    - US$5,000,000 on or before November 30, 2008, once Sierra has completed a financing of not less than US$15,000,000 ("Major Financing").


    As well, immediately following the Major Financing, the Company will receive:

    - Shares in Sierra sufficient to ensure that the Company has at least 11.25% (17% on a fully diluted basis) of the issued and
outstanding shares of Sierra; and

    - Warrants in Sierra equal in number to the number of shares it receives at the same strike price as agreed for participants in the
Major Financing.

    The Company's joint venture partner has agreed to accept identical consideration for its 50% interest. Sierra may extend the closing
date of November 30, 2008 to no later than February 28, 2009 through the advance payment of an additional sum of US$1,000,000 (for an
aggregate of US$2,000,000) to each of Moydow and its partner. 

    The Company further understands that Sierra has concurrently purchased all of the share capital of Argyll Resources Corporation, a
company that had disputed ownership of the Port Loko project. 

    On the Dala project, Angola, a total of eleven anomalies have been drilled and of these, six were considered high priority primary
targets. Of these six high priority targets which have been drilled, four have now intersected kimberlite, one was abandoned due to ground
conditions before reaching target depth and one returned negative results. 

    There remain in excess of twenty primary anomalies to be drilled on the Dala Project in this current drilling programme consisting of
5,000 metres of drilling. The core will be split and samples sent for analysis for G-10 garnets and micro diamonds. Results of these
analyses will be provided as soon as they become available. 

    The Dala project continues to produce tremendously positive results. The rate at which drilling is confirming the existence of
kimberlites is testament to the prospectivity of the licence and the abilities of the geological staff on the ground. With so many anomalies
remaining to be drilled, the Dala project has great potential.

    The Dala licence comprises some 3,000 square kilometres and is located in the Lunda Sul province of north-eastern Angola, immediately
adjacent to the city of Saurimo. The licence is 40 kilometres south of the Catoca Mine, the world's fourth largest diamondiferous kimberlite
mine, and is adjacent to Petra Diamond's Alto Cuilo property. 

    Forward-Looking Statements

    This MD&A contains "forward-looking statements" that are subject to a number of known and unknown risks, uncertainties and other factors
that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such
differences include: changes in metal prices, equity markets, results of exploration and related expenses, drilling activity, sampling and
other data, currency exchange rates, change in governments, ability to raise finances and changes to regulations affecting the mining
industry. Such forward-looking statements involve known and unknown risks and uncertainties that could cause actual events or results to
differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements.

    Disclosure Controls and Procedures 

    As at September 30, 2008, an evaluation was carried out under the supervision of and with the participation of the Company's management,
including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures.
Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of these
disclosure controls and procedures were effective as at September 30, 2008, to provide reasonable assurance that material information
relating to the Company and its consolidated subsidiaries would be made known to them by others within those entities.

    Application of Critical Accounting Estimates

    Moydow's accounting policies are described in Note 2 to the Consolidated Financial Statements. Set out below is a discussion of the
application of Moydow's critical accounting policies that require the Company to make assumptions about matters that are uncertain at the
time the accounting estimate is made, and where different estimates that could reasonably have been used in the current period, or changes
in the accounting estimate that reasonably likely to occur from period to period would have a material impact on Moydow's financial
statements. 

    Carrying value of mineral properties

    Acquisition costs of mineral properties, together with direct exploration and development expenses incurred thereon, are deferred and
capitalized on a property by property basis. Upon reaching commercial production, these capitalized costs are transferred from exploration
properties to producing properties on the consolidated balance sheets and are amortized into operations using the unit-of-production method
over the estimated useful life of the estimated related ore reserves.

    In the event that the long-term expectation is that the net carrying amount of these capitalized exploration costs will not be
recovered, the carrying amount is written down accordingly and the write-down amount charged to operations. Such would be indicated where:


    * Exploration activities have ceased;
    * Exploration results are not promising such that exploration will not be planned for the foreseeable future;
    *     Lease ownership rights expire; or
    *     Insufficient funding is available to complete the exploration program.

    The amount shown for mineral properties represents costs incurred to date net of recoveries from option or joint venture participants
and write-downs, and does not necessarily reflect present or future values.

    Overview of Exploration Activities, Contractual Obligations and Commitments

    Dala project, Angola

    The Company is party to two separate exploration projects with the same partners on the Dala property in Angola, relating to the
exploration for alluvial and kimberlite diamonds.

    Alluvial diamonds

    On October 1, 2004, the Company signed an agreement with Empressa Nacional De Diamantes De Angola (Endiama), the Angolan state diamond
mining company and Cimader-Comercio Geral Limitada (Cimader), a local Angola company, to explore for alluvial diamonds on the Dala
concession, located near the town of Saurimo, in north-east Angola. The concession comprises 3,000 square kilometres. To obtain a 33%
interest, the Company will have to incur expenditures of not less than $5,000,000 on or before February 2008. The licence has been renewed
to February 2009. Cimader and Endiama have a free carried interest in the exploration phase of the project.

    The Company has agreed with Concord Minerala LLC ("Concord") to terminate their joint venture with respect to the Dala Diamond Project
("Project") in Angola in exchange for issuing to Concord 4,000,000 common shares of the Company at a price of Cdn$0.20 per share. These
shares were issued to Concord on April 21, 2008. The Company had entered into an agreement with Concord, a private Nevada company, whereby
the Company would transfer its interest in the Project to a joint venture company formed with Concord, and Concord would fund exploration
expenditures on the Project. The Company and Concord agreed not to proceed with this joint venture structure and to issue shares to Concord
to compensate it for the expenditures it incurred on the Project. The Company now holds a 33% interest in the Project with Empressa Nacional
De Diamantes De Angola (Endiama), the Angolan state diamond mining company, holding a 34% interest and Cimader-Comercio Geral Limitada
(Cimader), a local Angola company, holding a 33% interest. The Dala Diamond Project, located near Saurimo in north-east Angola, comprises 3,000 square kilometres. 

    The Company's cumulative expenditures on the alluvial licence to September 30, 2008, amounted to $5.85 million of which $1.25 million
was incurred during the nine months of 2008.

    Kimberlite

    On December 16, 2005, the Company signed another agreement with Endiama and Cimader to explore for kimberlite (primary) diamonds on the
Dala concession. Under the terms of the agreement, the Company can earn 40% interest in the concession with the remaining percentages held
by Endiama and Cimader. To obtain its interest, the Company will have to incur expenditures of not less than $10,000,000 on or before
January 14, 2009. Cimader and Endiama have a free carried interest in the exploration phase of the project. The granting of the licence was
ratified by the Angolan Council of Ministers on October 18th, 2006 and was subject to the Company making a deposit of $1 milllion with the
Angolan government. The deposit was made in 2006 and may be refunded provided that Moydow meet certain conditions. The deposit has been
included as a component of the cost to acquire an interest in the Dala project. 

    The Company's cumulative expenditures on the kimberlite licence to September 30, 2008 amounted to $5.84 million of which $2.16 million
was incurred during the first nine months of 2008. 

    Port Loko property, Sierra Leone

    Cumulative expenditures by the Company to June 30, 2008, amounted to $3.20 million of which $0.16 million was incurred in the first half
of 2008 and $0.08 million in the quarter ended September 30, 2008. The Company, on July 14, 2008, closed a transaction whereby the Company's
50% interest in the Port Loko bauxite exploration licence in Sierra Leone has been sold to a private company for the purpose of accelerated
development. The non-refundable upfront payment of $1.53 million has been offset against the mineral property carrying value. 

    Ntotoroso property, Ghana

    On December 8, 2003, the Company sold its wholly owned subsidiary, Moydow Limited (Isle of Man), which, following an internal
restructuring, owned the Company's 50% joint venture interest in the Ntotoroso property but no other mineral properties, to Newmont Mining
Corporation (Newmont). 

    In connection with the sale, the Company entered into a royalty agreement, whereby the Company acquired the right to a net smelter
return royalty of 2% on all recovered ounces of gold and silver produced from the Ntotoroso property after the first 1,200,000 gold
equivalent ounces in consideration for $250,000. No value has been ascribed to the royalty rights acquired by the Company.

    The project poured it's first gold on July 18, 2006 and as at September 30, 2008, had produced 578,265 ounces of gold of which 79,714
ounces of gold was produced in the three months ended September 30, 2008. Assuming the same rate of production, we expect our first royalty
payment in year 2010.  

    Hwidem property, Ghana

    On November 23, 2007, the Company was granted a one-year extension to its prospecting licence with respect to the Hwidem property by the
Minister for Lands, Forestry and Mines in Ghana. The licence area covers 24.7 square kilometres and it adjoins the Kenyase-Ntotoroso area
currently under lease to Rank Mining Company Limited, a subsidiary of Newmont. The Company incurred exploration expenditures on this
property of $0.01 million in the second quarter of 2008. The minimum exploration expenditures required to be spent by the end of the
extension in order to maintain the licence are $0.52 million, of which $0.59 million had been spent as at September 30, 2008. If gold
mineralization does not exist in sufficient quantities in the area to warrant completion of the work program, the Company is not liable for
any shortfall of the minimum exploration expenditures.





    Commitments

    The Company, either directly or through certain joint ventures, has obligations to expend various amounts on its mineral properties and
projects in order to keep its mineral property rights in good standing. All agreements are in the normal course of business.

      Dollars in thousands
  Period of commitments                            Total    Less than 1 year
 Amount committed for exploration and development  $15,523  $15,523
 Amount spent to September 30, 2008                $11,365  $11,365
 Balance of commitments                            $4,158   $4,158

    Segmented Information

    The Company has one reportable operating segment, being exploration of mineral properties in geographic areas disclosed in Note 2 to the
Consolidated Financial Statements.

    Results of Operations

    Comprehensive loss for the quarter ended September 30, 2008, was $0.21 million or $0.003 per share compared to a loss of $0.36 million
in same period in 2007 or $0.006 per share. 

    General and administrative expenses were $0.28 million during the third quarter of 2008 as compared with $0.28 million in the same
period of 2007. 

    On July 13, 2007, the Company granted 3.30 million stock options to officers, directors, employees and consultants. The estimated fair
value of the options granted during the three months ended September 30, 2008 and 2007 was $0.004 million and $0.22 million, respectively.
The Company recognizes this expense over the period in which entitlement to the awards vest.  

    The foreign exchange gain for the quarter ended September 30, 2008, was $0.04 million compared to a gain of $0.02 million in the same
period of 2007. The foreign exchange gain resulted from the movements in exchange rates between operating currencies and the United States
dollar.

    A company controlled by certain insiders of the Company advanced money to the Company and interest has been accrued at Libor plus 2%.
The amount of interest charged to the Company during the quarter ended September 30, 2008 and 2007 was $0.087 million and $nil,
respectively.

    The Company had an unrealised loss of $0.020 million and $nil in the third quarter of 2008 and 2007, respectively on financial assets
held-for-trading.  

    The Company's revenues are derived from: interest which is dependent on available cash balances and prevailing interest rates and
returns on investments which are dependent on the prevailing market at the time of sale. 

    As at September 30, 2008 and 2007, the Company recorded an income tax recovery in the sum of $0.14 million and $0.11 million,
respectively.

    Comprehensive loss for the nine months ended September 30, 2008, was $0.98 million or $0.017 per share compared to a loss of $0.99
million in the same period in 2007 or $0.021 per share. 

    General and administrative expenses were $0.85 million during the first nine months of 2008 as compared with $0.85 million in the same
period of 2007.

    On July 13, 2007, the Company granted 3.30 million stock options to officers, directors, employees and consultants. The estimated fair
value of the options granted during the nine months ended September 30, 2008 and 2007 was $0.05 million and $0.22 million, respectively. The
Company recognizes this expense over the period in which entitlement to the awards vest.

    The foreign exchange gain in the first nine months of 2008 was $0.045 million compared to a loss of $0.038 million in the same period of
2007. The foreign exchange gain resulted from the movements in exchange rates between operating currencies and the United States dollar.

    A company controlled by certain insiders of the Company advanced money to the Company and interest has been accrued at Libor plus 2%.
The amount of interest charged to the Company during the period ended September 30, 2008 and 2007 was $0.26 million and $nil, respectively.

    The Company had an unrealised loss of $0.028 million and $nil in the period ended September 30, 2008 and 2007, respectively on financial
assets held-for-trading.  

    The Company's revenues are derived from: interest and dividend income, which is dependent on available cash balances and prevailing
interest rates and returns on investments which are dependent on the prevailing market at the time of sale. 

    As at September 30, 2008 and 2007, the Company recorded an income tax recovery in the sum of $0.17 million and $0.11 million,
respectively.

    Liquidity and Capital Resources

    At September 30, 2008, the Company had negative working capital of $5.72 million (December 31, 2007 - $3.46 million). Cash and cash
equivalents at September 30, 2008 amounted to $0.09 million compared to cash and cash equivalents as the December 31, 2007 of $0.09 million.


    A company controlled by certain insiders of the Company advanced money to the Company and interest has been accrued at Libor plus 2%.
The amount of interest charged to the Company during the first nine months of 2008 was $0.26 million. Included in accounts payable and
accrued liabilities as at September 30, 2008, is $5.85 million (December 31, 2007 - $3.44 million) payable to these related parties.

    These financial statements have been prepared using Canadian generally accepted accounting principles applicable to a going concern,
which contemplates the realization of assets and settlement of liabilities in the normal course of business as they come due. As at
September 30, 2008, the Company had an excess of current liabilities over current assets of $5.72 million and has recorded losses and net
cash outflows from operations for the past two years. The Company is also required to make expenditures in the near term to keep its mineral
property rights in Angola. The Company will have to secure additional financing to meet its required commitments. These circumstances lend
substantial doubt as to the ability of the Company to meet its obligations as they come due and, accordingly, the appropriateness of the use
of accounting principles applicable to a going concern. 

    In recognition of these circumstances, the Company is exploring various initiatives to secure capital so that Moydow can continue as a
going concern. It is not possible to determine, with any certainty, the success, adequacy or sufficiency of these initiatives. In July 2008,
the company secured $1.53 million from its part disposal of the Port Loko Licence in Sierra Leone and an additional $5.00 million on or
before November 30, 2008, provided Sierra has completes a financing of not less than US$15 million.


    Cash Flow Statements

    Cash flow used by operating activities for the quarter ended September 30, 2008, including changes in non-cash working capital of $0.43
million, totalled $0.61 million as compared to cash flow provided by operation activities of $0.062 million in the same period in 2007. In
the three months ended September 30, 2008, cash provided from investing activities was $0.28 million of which (2007 - cash used $0.78
million) $1.24 million was expended on exploration of mineral properties, principally in Angola and the non refundable up front payment of
$1.53 million for the proposed sale of the bauxite project in Sierra Leone has been set off against the carrying value of the project. Cash
flow from financing activities for the period ended September 30, 2008 and 2007, was $nil million, and $nil million, respectively. 

    On April 21, 2008, the Company issued 4,000,000 common shares to Concord Minerals LLC in connection with the acquisition of its interest
in the Dala property in Angola. The common shares were issued at a price of CA$0.20 per common share, in settlement of the cumulative
expenditures incurred by Concord Minerals LLC on the Dala property of $728,051.

    Cash flow provided for operating activities for the nine months ended September 30, 2008, including increases in non-cash working
capital of $2.25 million, totalled $1.36 million as compared to cash flow provided for operating activities of $0.91 million in the same
period of 2007. During the nine months ended September 30, 2008 and 2007, cash used in investing activities was $2.15 million and $2.77
million, respectively, which was expended on exploration of mineral properties, principally on the Dala diamond project in Angola and Port
Loko bauxite property in Sierra Leone. The non refundable up front payment of $1.53 million for the proposed sale of the bauxite project in
Sierra Leone has been set off against the carrying value of the project.

    Cash flow from financing activities for the nine months ended September 30, 2008, was $0.80 million representing , the issue of
4,000,000 common shares to Concord Minerals LLC in connection with the acquisition of its interest in the Dala property, Angola. During the
nine months ended September 30, 2007, cash flow from financing activities was $1.83 million, of which $3.26 million was the proceeds from
the issue of 18,297,186 common shares in the Company less the repayment of loans in the amount of $1.43 million. 

    Use of Financial Instruments

    The Company has not entered into any specialized financial agreements to minimize its investment risk, currency risk or commodity risk.
There are no off-balance sheet arrangements.

    Changes in Accounting Policies

    On January 1, 2007, the company adopted Section 1506 of the CICA Handbook Accounting Changes, which prescribes the criteria for changing
accounting policies, together with the accounting treatment and disclosure of changes in accounting policies, changes in accounting
estimates and corrections of errors. This standard did not affect the Company's financial position or results of operations.

    Canadian Accounting Pronouncements Issued and Not Yet Adopted 

Section 1535 

    The new Section 1535, Capital Disclosures, requires that an entity disclose information that enables users of its financial statements
to evaluate an entity's objectives, policies and processes for managing capital, including disclosures of any externally imposed capital
requirements and the consequences of non-compliance. The new standard applies to interim and annual financial statements relating to fiscal
years beginning on or after October 1, 2007, specifically January 1, 2008 for the Company.

    This standard will impact the Company's disclosures provided but will not affect the Company's results or financial position.
    

    Section 3031
    The new Section 3031, Inventories, relates to the accounting for inventories and revises and enhances the requirements for assigning
costs to inventories. The new standard applies to interim and annual financial statements relating to fiscal years beginning on or after
January 1, 2008, and will be effective for the Company as of this date.

    This standard is not expected to have a significant effect on the Company's consolidated financial statements.
    
Sections 3862 and 3863

    The new Sections 3862 and 3863 replace Handbook Section 3861 Financial Instruments - Disclosure and Presentation, revising and enhancing
its disclosure requirements, and carrying forward unchanged its presentation requirements. These new sections place increased emphasis on
disclosures about the nature and extent of risks arising from financial instruments and how the entity manages those risks. The new
standards apply to interim and annual financial statements relating to fiscal years beginning on or after October 1, 2007, specifically
January 1, 2008 for the Company.

    This standard will impact the Company's disclosures provided but will not affect the Company's results or financial position.

    Outstanding Share Data 

    As at November 10, 2008, the Company has 60,572,904 common shares in issue. Holders of common shares are entitled to one vote on any
ballot at meetings in respect of each common share held. The Company has 4,900,000 stock options outstanding at a weighted average price of
Cdn$0.27. 

    Transactions with Related Parties 

    Related party transactions relate primarily to the payment of fees under contracts for services with companies in which a Company
director is a shareholder and director. The Company was charged a total of $222,755 during the period September 30, 2008, with respect to
administration services. 

    The Company's primary legal counsel is a firm in which a director of the Company is a partner. The Company was charged $110,896 during
the period September 30, 2008, for legal services provided by this firm. 

    A company controlled by certain insiders of the Company advanced money to the Company and interest has been accrued at LIBOR plus 2%.
The amount of interest charged to the Company during the period ended September 30, 2008, was $264,310.

    These transactions are made in the normal course of business.

    Selected Consolidated Annual Financial Information

    Set forth below is certain financial data for the last three completed financial years:
                                 December 31, 2007  December 31, 2006  December 31, 2005
                                 $                  $                  $
 Total revenue                   -                  -                  -
 Basic and diluted (loss) per    (0.02)             (0.03)             (0.05)
 share
 Total assets                    12,478,835         8,358,027          6,334,596
 (Loss) for the year             (989,030)          (1,060,179)        (1,612,359)
 Total long term financial       -                  -                  -
 liabilities
 Dividends declared              -                  -                  -
    Quarterly Information
    The following table summaries the results of the Company for each of the most recent eight quarters:

                                 Sept                  June                  March                 Dec               Sept                 
June                  March                 Dec
                                 2008                  2008                  2008                  2007              2007                 
2007                  2007                  2006
                                 $                     $                     $                     $                 $                     $
                    $                     $
 Revenues                        -                     -                     -                     -                 -                     -
                    -                     -


 Net profit/(loss)               (208,086)             (388,980)             (380,640)             589               (363,581)            
(363,490)             (262,548)             (426,462)


 Basic and diluted (loss)/
 earnings per common share


 Total assets                    (0.003)               (0.007)               (0.007)               nil               (0.006)              
(0.007)               (0.007)               (0.011)


 Number of common shares
 outstanding



                                                                                                                                            
                                           
                                                                                                                                            
                                           
                                                                                                                                            
                                           
                                 14,419,161            14,814,250            13,056,805            12,478,835        10,967,515           
10,973,189            9,150,435             8,358,027


                                 60,572,904            60,572,904            56,572,904            56,572,904        56,572,904           
56,572,904            47,822,904            38,275,718



    Regulatory, Environmental and Other Risk Factors
    The Company intends to fulfil all statutory commitments on its current licences over the next year and will apply for licence renewals
in the normal course of business. 

    The Company's operating income and cash flow are affected by changes in the U.S./Canadian dollar exchange rate together with movement in
the local currencies in Angola, Sierra Leone, Ghana, and Ireland, as a portion of the Company's costs are incurred in these currencies. The
profitability of any mining operation will be significantly affected by changes in the market price of commodities. Commodity prices
fluctuate on a daily basis and are affected by numerous factors such as world supply, Central Bank selling, stability of exchange rates,
forward sales and inflationary forces, among other factors beyond Moydow's control.

    Exploration companies are subject to various laws and regulations including but not limited to environmental and, health and safety
matters together with political risks which are outside the Company's control. Moydow is committed to a program of environmental protection
at all of its projects and exploration sites.

    The financial statements of the Company have been prepared on the basis that the company will continue as a going concern which presumes
that it will be able to realize its assets and discharge its liabilities in the normal course of business. The financial statements do not
include any adjustments that might be necessary if the Company is unable to continue as a going concern. If management is unsuccessful in
securing capital, the Company's assets may not be realized or its liabilities discharged at their carrying amounts and these differences
could be material.

    Outlook

    The Company will focus its efforts on securing capital together with finalizing terms with potential joint venture partners. The Company
is in discussions with a major international mining company who are interested in acquiring a stake in our diamond property in Angola.
Although negotiations are at an early stage, this may present a good opportunity for the Company to significantly advance the project and
ensure continued participation in this very exciting diamond play. Future cash flow from the royalty on the Ntotoroso gold property, Ghana,
will provide funds with which to evaluate and capitalize on new gold and precious metal opportunities. 

    MOYDOW MINES INTERNATIONAL INC. 
    CONSOLIDATED BALANCE SHEETS
    (expressed in United States dollars, unless otherwise stated)
                                               September  December 31,
                                                    2008          2007
                                             (unaudited)     (audited)
 Assets
 Current assets
 Cash and cash equivalents                       $93,129       $93,733
 Accounts receivable and prepaid expenses        273,916        74,614
 Current income taxes recoverable                      -       383,800

                                                 367,045       552,147

 Mineral properties (Note 3)                  14,024,884    11,870,438

 Other assets                                     27,232        56,250

                                              14,419,161    12,478,835

 Liabilities
 Current liabilities
 Accounts payable and accrued liabilities      6,074,721     4,004,847
 Loan                                              7,717         7,717

                                               6,082,438     4,012,564

 Future income tax liability                      86,855        86,855

                                               6,169,293     4,099,419

 Shareholders' Equity
 Capital stock (Note 4)                       22,073,991    21,276,980

 Contributed surplus                             710,225       659,078

 Deficit                                    (14,534,348)  (13,556,642)

                                               8,249,868     8,379,416

                                              14,419,161    12,478,835














    MOYDOW MINES INTERNATIONAL INC.
    CONSOLIDATED STATEMENTS OF EARNINGS
    (expressed in United States dollars, unless otherwise stated)
                                                    Three months ended            Nine months ended
                                                    Sept 30, 2008  Sept 30, 2007  Sept 30, 2008  Sept 30, 2007
                                                                $              $              $              $
 Expenses
 Stock - based compensation                              3,672           221,204      51,147           221,204
 General and administrative                               275,051        283,831      850,052          847,097
 Amortization of plant & equipment                            378            359       1,131             1,022
 Foreign exchange loss/ (gain)                           (35,904)       (24,545)       (45,027)         38,015
    
                                                        243,197          480,849      857,303        1,107,338

 Other income and expenses
 Interest expenses                                       (87,154)              -      (264,310)              -
 Unrealized loss financial assets held for trading       (20,470)              -       (27,887)              -
 Interest income                                            1,476       3,447          1,587             3,898
                                                        (106,148)       3,447         (290,610)          3,898

 Loss before income taxes                               (349,345)      (477,402)    (1,147,913)    (1,103,440)
 Income tax recovery                                    141,259        113,821        170,207        113,821
 Comprehensive loss for the period                      (208,086)     (363,581)      (977,706)      (989,619)

 Basic and diluted loss per common share                  (0.003)        (0.006)        (0.017)        (0.021)
 Weighted average number of 
 common shares outstanding                             60,572,904     56,572,904     58,961,182     47,047,275

 Deficit, beginning of period                        (14,326,262)   (13,278,708)   (13,556,642)   (12,652,670)
 Loss for period                                        (208,086)      (363,581)      (977,706)      (989,619)
 Deficit, end of period                              (14,534,348)   (13,642,289)   (14,534,348)   (13,642,289)




 


    MOYDOW MINES INTERNATIONAL INC.
    CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
    (expressed in United States dollars, unless otherwise stated)

                                 Three months ended            Nine months ended
                                 Sept 30, 2008  Sept 30, 2007  Sept 30, 2008  Sept 30,
                                                                              2007
                                             $              $              $            $
 Cash provided by (used in)
 operating activities
 Loss for the period                 (208,086)      (363,581)      (977,706)    (989,619)

 Adjustments for non-cash
 items:
 Stock-based compensation                3,672        221,204         51,147      221,204
 Amortization of plant and                 378          (957)          1,131        (519)
 equipment
 Unrealised loss on financial           20,470              -         27,887            -
 assets held for trading
                                     (183,566)      (143,334)      (897,541)    (768,934)
 Changes in non-cash working
 capital:
 Accounts receivable and             (237,670)         68,809        184,498      126,411
 prepaid expenses and income
 taxes
 Accounts payable and accrued
 liabilities
 and income taxes                    (190,675)        136,703      2,069,874    1,548,887
                                     (428,345)        205,512      2,254,372    1,675,298
                                     (611,911)         62,178      1,356,831      906,364

 Investing activities
 Exploration of mineral                280,837      (783,034)    (2,154,446)  (2,768,899)
 properties

 Financing activities
 Proceeds from issue of capital              -              -      797,011      3,262,617
 stock
 Loan                                        -              -              -  (1,433,601)
                                             -              -      797,011    (1,829,016)

 Increase (Decrease) in cash         (331,074)      (720,856)          (604)     (33,519)
 and cash equivalents
 Cash and cash equivalents at        424,203        830,383           93,733     143,046
 beginning of period
 Cash and cash equivalents at        93,129      109,527              93,129     109,527
 end of period

 Supplemental information
 Cash income taxes paid                      -              -              -            -
 Cash interest paid                          -              -              -            -

















    MOYDOW MINES INTERNATIONAL INC. 
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (expressed in United States dollars, unless otherwise stated)

    *     Nature of operations and going concern

    Moydow Mines International Inc. (Moydow or the Company) is an international exploration company with primary interests in precious
metals, diamonds and industrial minerals. Moydow's common shares are listed on both the Toronto Stock Exchange and the AIM Market of the
London Stock Exchange.  
    The Company is exploring its mineral properties and, as at September 30, 2008, had not determined the existence of economically
recoverable reserves. The recoverability of the amounts shown for mineral properties is dependent upon the existence of economically
recoverable mineral reserves, the preservation of the Company's interest in the underlying mineral claims, the ability to obtain necessary
financing, to obtain government approval and to attain profitable production or, alternatively, upon the Company's ability to profitably
dispose of its interests. 
    These financial statements have been prepared using Canadian generally accepted accounting principles applicable to a going concern,
which contemplates the realization of assets and settlement of liabilities in the normal course of business as they come due. As at
September 30, 2008, the Company had an excess of current liabilities over current assets of $5.72 million and has recorded losses and net
cash outflows from operations for the past two years. The Company is also required to make expenditures in the near term to keep its mineral
property rights in Angola. The Company will have to secure additional financing to meet its required commitments. These circumstances lend
substantial doubt as to the ability of the Company to meet its obligations as they come due and, accordingly, the appropriateness of the use
of accounting principles applicable to a going concern. 
    In recognition of these circumstances, the Company is exploring various initiatives to secure capital so that Moydow can continue as a
going concern. It is not possible to determine, with any certainty, the success, adequacy or sufficiency of these initiatives. 
    The Company's ability to continue as a going concern is dependent upon its ability to fund its working capital and exploration
requirements and eventually to generate positive cash flows, either from operations or sale of a property. These financial statements do not
reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that
would be necessary were the going concern assumption inappropriate. These adjustments could be material.
    Operating results for the periods ended September 30, 2008 are not necessarily indicative of the results that may be expected for the
full year ended December 31, 2008. For further information, see the Company's consolidated financial statements including the notes thereto
included in the Annual Report for the year ended December 31, 2007.







    2) Mineral properties

    The Company, either directly or through certain joint ventures, has obligations to expend various amounts on its mineral properties and
projects in order to keep its mineral property rights in good standing. All agreements are in the normal course of business.

    Mineral exploration properties in Africa are recorded with their carrying values as follows:



                              Angola     Sierra Leone       Ghana       Total
                                 $            $               $         $
                                                                          $

 Balance-December 31, 2007    8,275,387    3,039,000     556,051        11,870,438

 Costs-March 31, 2008         565,978       78,200             3,352      647,530

 Balance-March 31, 2008       8,841,365   3,117,200      559,403        12,517,968

 Costs - June 30, 2008        1,694,742    80,253          12,758       1,787,753

 Balance-June 30, 2008      10,536,107      3,197,453          572,161  14,305,721

    Non-refundable payment              (1,525,000)              (1,525,000)    

 Costs - September 30, 2008    1,151,912           76,051            16,200  1,244,163

 Balance-September30, 2008  11,688,019      1,748,504           572,161  14,024,884


    3)                Capital stock
    Authorized
Unlimited number of common shares
    Issued
                                      Number of             $
                                         Shares  
                                                 
                                                 
 Balance - December 31, 2007         56,572,904    18,014,363
 Issue of shares - March 30, 2008    -             1,624,500
                                     56,572,904    19,638,863
 Balance - March 31, 2008                        
 Issue of shares-April 21, 2008      4,000,000     797,011
 Balance - September 30, 2008        60,572,904    22,073,991

    On April 21, 2008, the company issued 4,000,000 common shares to Concord Minerals LLC in connection with the acquisition of its interest
in the Dala property in Angola. The common shares were issued at a price of Cdn$0.20 per common share, in settlement of the cumulative
expenditures incurred by Concord Minerals LLC on the Dala property of $728,051.

    4)      Related party transactions
    Related party transactions relate primarily to the payment of fees under contracts for services with companies in which a Moydow Mines'
director is a shareholder and director. The Company was charged a total of $222,755 during the nine months to September 30, 2008, with
respect to administration services. 
    The Company's primary legal counsel is a firm in which a director of the Company is a partner. The Company was charged $110,896 during
the nine months to September 30, 2008, for legal services provided by this firm. 
    A company controlled by certain insiders of the Company advanced money to the Company and interest has been accrued at LIBOR plus 2%.
The amount of interest charged to the Company during the nine months to September 30, 2008, was $264,310.
    These transactions are made in the normal course of business.








    Corporate Information.

    Directors and Officers
    Noel P. Kiernan - Director, Chairman
    Brian P. Kiernan - Director, President & CEO
    J. Joseph Breen - Director & COO
    Michael E. Power - Director, Vice President & Secretary
    Albert Gourley - Director & Audit Committee
    Richard Linnell - Director & Audit Committee
    Rosemary G. O'Mongain - CFO

    Toronto Office
    12th Floor
    20 Toronto Street
    Toronto, Ontario
    Canada, M5C 2B8
    Tel: [phone] Fax: [phone]

    Registered Office
    Suite 2100, 1075 Georgia Street West
    Vancouver, British Columbia V6E 3G2 

    Dublin Office
    74 Haddington Road
    Dublin 4, Ireland
    Tel: [phone] Fax: [phone]

    Transfer Agent
    Computershare Trust Company of Canada
    100 University Avenue, 8th Floor
    Toronto, Ontario
    Canada, M5J 2YI

    Exchange Listing
    The Toronto Stock Exchange
    Symbol: MOY
    CUSIP: 62472V 100
    Shares outstanding: 60,572,904
    Shares fully diluted: 65,472,904

    To contact the Company 
    In order to contact the Company or to request to be added to our mailing list
    please email [e-mail]
    website: www.moydow.com

            
        


This information is provided by RNS
The company news service from the London Stock Exchange
 
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