ALDRIDGE REPORTS 2012 YEAR-END FINANCIAL RESULTS

Mar 11, 2013

Aldridge Minerals Inc. has filed its audited consolidated financial statements and management’s discussion and analysis for the fiscal year ended Dec. 31, 2012. The financial statements and the management’s discussion and analysis are posted on SEDAR and on the company’s website.

As noted in the management’s discussion and analysis, the company closed a $15-million financing in February, 2013, positioning the company to pursue its major objectives, including the following.

Feasibility study completion in March, 2013

The Yenipazar feasibility study will be completed in March, 2013, which allows the company to comply with the final condition of the property option agreement with Alacer Gold Corp. and earn 100 per cent of the rights to the Yenipazar project. The related National Instrument 43-101-compliant technical report will be filed on SEDAR.

Secure project financing in 2013

Upon completion of the feasibility study, the company’s most significant objective of 2013 is to obtain the project financing needed to build the Yenipazar project and commence production. The company’s project financing may include some combination of equity, senior debt, metal streaming and off-take agreements. The company has engaged Cutfield Freeman & Company Ltd. as its finance adviser to evaluate the project economics and the optimal financing alternatives. Cutfield’s activities began in first-quarter 2013 and are expected to continue until project financing is secured.

Land acquisition

The company has added management expertise and will utilize other advisers as required to facilitate the critical process of acquiring up to 9.4 square kilometres of land within the project fence line and adjacent to it. Significant management resources will be allocated to developing and executing the acquisition strategy.

Exploration

The company has identified exploration targets on the Yenipazar property, including the area adjacent to the known resource where three mineralized outcrops were identified. The company plans to spend approximately $1-million to $1.5-million on exploration in 2013. Additional exploration programs will be developed subject to the availability of financing. Longer-term plans will include exploration of other areas of the 100-square-kilometre land package of the Yenipazar property and the acquisition and exploration of other properties in Turkey.

Environmental impact assessment study completion in second-quarter 2013

SRK Turkey, which has been involved in various elements of the feasibility study, is leading the environmental impact assessment study scheduled for completion in the second quarter of 2013.

Investment incentive plan application in third-quarter 2013

The company will apply for Turkey’s investment incentive plan, which would result in income tax savings equal to 40 per cent of the depreciable capital cost required to build the Yenipazar project. The income tax savings will be received through a corporate income tax rate reduction from 20 per cent to 4 per cent. For example, for every $100-million of allowable capital cost, the corporate income tax savings would be $40-million, which enhances the after-tax cash flow of the Yenipazar project.

Owners’ team

The company is developing plans to add senior managers and professional staff to support continued project development in 2013 and position the company to support the construction phase in 2014 and 2015.

Engineering design and continued project development

The feasibility study is expected to include certain recommendations regarding continued engineering and metallurgy work, which should maintain the momentum of the project development. The company plans to spend in this area approximately $1.3-million to $1.8-million during the balance of 2013 in order to advance the project.

Engineering, procurement, construction management

In 2013, the company will evaluate project development options, including alternative international and Turkish professional service firms, contractors, and other suppliers.

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