Kirrin Resources Reports Q2 2012 Results

Kirrin Resources Inc. (TSX VENTURE:KYM) today reported its financial results and
corporate update for the second quarter of 2012. During the quarter, the Company
focused on reviewing alternative strategies to complete its 2012 exploration
plans, introduce new projects to the Company, and ensure continuing operations
by the Company. Negotiations included potentially expanding Kirrin's activities
beyond REE and uranium exploration and beyond Canada. No financings were agreed
during the quarter and no agreements have been reached arising from the
aforementioned negotiations.


Kirrin recorded a net loss of $47,947 during the quarter, as against a net loss
in the comparable quarter in 2011 of $176,007, which included a tax credit of
$19,320. Mineral interests showed minimal change as only minimal exploration
work was undertaken during the quarter. The Company had a working capital
deficit of $518,386 at the quarter end as compared to a deficit of $425,815 at
the year end and positive working capital of $349,084 at June 30, 2011. Summary
financial data is set out in tabular form below.




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                                                   June 2012       June 2011
                                                           $               $
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Working capital                                    (518,386)         349,084
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Mineral interests                                  1,671,525       2,176,428
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Total assets                                       1,693,377       3,080,427
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Total long-term financial liabilities                195,000         110,000
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Shareholders' equity                                 953,071       2,415,512
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Net loss for the quarter                              47,947         176,007
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Earnings (loss) per share for the quarter             (0.00)          (0.01)
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Shares outstanding (1)                            46,559,930      46,434,930
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(1) All figures in Canadian dollars except for shares outstanding.          



Excluding exploration activities, expenses for the six months ended June 30,
2012 amounted to $131,423, a decrease of 61% over 2011 largely resulting from
the necessity to reduce costs occasioned by tight cash resources. Expenses under
the headings Salaries and benefits, Financial administration, General office and
miscellaneous and Travel and marketing, in aggregate $77,671 for the six months
ended June 30, 2012 (2011: $188,249) partially decreased consequent upon the
lower exploration program and voluntary reductions in contractual obligations.
The investor relations program has been discontinued and costs in this category,
$14,119 for the six months ended June 30, 2012 (2011: $105,488) were limited to
those necessarily incurred to maintain Kirrin's listing status. Stock based
compensation reduced to $17,390 against $30,820 in 2011 because no options have
been issued since January 2011.


Kirrin does not generate positive cash flow, has limited financial resources and
must raise additional capital to implement its programs. The state of the
capital markets remains challenging and the interest of investors in micro
companies limited. Kirrin's working capital deficit is a significant factor
impacting the Company's strategic options. There can be no assurance that the
Company will be successful in raising additional capital to implement its
programs or to conclude alternative arrangements allowing it to continue
operations.


Additional information relating to Kirrin is available on Kirrin's web site at
www.kirrinresources.com and on SEDAR at www.sedar.com.


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