Nevada Chemicals, Inc. Announces 1st Quarter 2008 Earnings

  
    
  
  
    
      John T. Day, President and Chief Executive Officer of Nevada Chemicals, 
      Inc. (NASDAQ:NCEM), today announced earnings for the first quarter ended 
      March 31, 2008. The Company had net income of $949,000 or $0.14 a share 
      compared to $777,000 or $0.11 per share in the first quarter of 2007. 
      The increase in earnings is due primarily to increased earnings from our 
      joint venture Cyanco.
    
    
      The Company’s income before taxes increased 
      $487,000, or 51% to $1,449,000 as compared to $962,000 during the same 
      period in 2007. The Company realized a reduction in our tax provision in 
      the first quarter of 2007, as a result of reducing its reserve for 
      estimated Canadian tax liability as compared to the statutory rate that 
      was applied in the current period income.
    
    
      “We are pleased with our first quarter results 
      and the increase in product sales through our joint venture, Cyanco. We 
      continue to see strong gold prices, which in general encourage 
      additional activities in the mining industry,” 
      said Day. “We have seen an increase in our 
      spot or short-term contract sales, which seem to be indicative of the 
      strengthened gold values as well.”
    
    
      The Company anticipates continued volatility in the cost of raw 
      materials and continues to work on implementing engineered solutions 
      that can reduce our raw material consumption and increase our overall 
      throughput at Cyanco. Nevada Chemicals continues to explore new research 
      and development activities that can improve the process efficiencies at 
      Cyanco. We continue to see large capital investments by mining 
      operations within the Cyanco region, which is indicative of mines 
      strategies to take advantage of the strong gold prices.
    
    
      Cyanco is a 50/50 joint venture company of Nevada Chemicals, Inc. and 
      Evonik Corporation. Cyanco has produced and marketed liquid sodium 
      cyanide to the western United States gold mining region for the past 18 
      years.
    
    
      
        
          
            NEVADA CHEMICALS, INC.
          
        
      
      
        
          
            CERTAIN STATEMENT OF OPERATIONS
          
        
      
      
        
          
            AND BALANCE SHEET DATA
          
        
      
      
        
           
        
      
      
        
        
        
           
        
        
          Quarters Ended March 31,
        
      
      
        
           
        
        
           
        
        
           
        
        
          
            2008
          
        
        
           
        
        
           
        
        
          2007
        
      
      
        
          Revenues and Equity in Earnings of Joint Venture
        
        
        
        
          $
        
        
          1,604,000
        
        
           
        
        
          $
        
        
          1,096,000
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Income before provision for income taxes
        
        
        
        
          $
        
        
          1,449,000
        
        
        
        
          $
        
        
          962,000
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Net Income
          
        
        
        
        
          $
        
        
          949,000
        
        
        
        
          $
        
        
          777,000
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          
            Earnings per Common Share, Assuming Dilution
          
        
        
        
        
          $
        
        
          0.14
        
        
        
        
          $
        
        
          0.11
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders' Equity
        
        
        
        
          $
        
        
          25,967,000
        
        
        
        
          $
        
        
          23,328,000
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total Assets
        
        
        
        
          $
        
        
          28,387,000
        
        
        
        
          $
        
        
          25,812,000
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted Average Common Shares Outstanding- Diluted
        
        
        
        
        
        
          6,989,638
        
        
        
        
        
        
          6,999,548
        
      
    
    
      Note: The foregoing contains “forward-looking” 
      statements that are pursuant to the safe harbor provisions of the 
      Private Securities Reform Act of 1995. Editors and investors are 
      cautioned that forward-looking statements involve risks and 
      uncertainties that may affect the Company’s 
      business prospects and performance. These include, but are not limited 
      to economic, competitive, governmental, technological and other factors 
      discussed in the Company’s reports to 
      shareholders and periodic filings with the Securities and Exchange 
      Commission.