Apollo Gold Reports Fourth Quarter and Year End 2005 Results

Results for the Fourth Quarter 2005 Compared to Fourth Quarter2004

Apollo's revenues from continuing operations for the three monthsended December 31, 2005 decreased 45% to $7.0 million from $12.7million for the three months ended December 31, 2004. Gold productiondecreased 58% to 5,026 ounces for the three months ended December 31,2005 from 12,090 ounces for the three months ended December 31, 2004.

Apollo incurred a net loss of $4.2 million, or $0.04 per share,for the three months ended December 31, 2005, as compared to a netloss of $5.7 million, or $0.07 per share, for the three months endedDecember 31, 2004.

Results for 2005 Fiscal Year Compared to 2004 Fiscal Year

Apollo's revenues from continuing operations for the year endedDecember 31, 2005 increased 13.1% to $43.3 million from $38.3 millionfor the year ended December 31, 2004. Gold production increased 30.7%to 44,099 ounces for the year ended December 31, 2005 from 33,743ounces in 2004.

Apollo incurred a net loss of $22.2 million, or $0.22 per share,for the year ended December 31, 2005, as compared to a net loss of$31.0 million, or $0.39 per share, for the year ended December 31,2004.

Discontinued Operations

On November 18, 2005 the Company sold its Nevada assets (the"Nevada Assets"), which consist of the Florida Canyon Mine, StandardMine and four Nevada exploration properties. The Nevada Assets areclassified as "assets related to discontinued operations" and havebeen separated from the other assets within the Consolidated BalanceSheets. Also, the Nevada Assets only appear as a single line withinthe Consolidated Statements of Operations called "Loss fromdiscontinued operations."

The Company's total operating losses for the three months and yearended December 31, 2005 are as follows:
Three months
ended Year ended
December 31, December 31,
--------------- -----------------
2005 2004 2005 2004
$ 000's $ 000's $ 000's $ 000's
------- ------- -------- --------

Loss from continuing operations (3,955) (4,550) (15,961) (27,295)
Loss from discontinued operations (293) (1,191) (6,247) (3,712)
------- ------- -------- --------
Net loss for the period (4,248) (5,741) (22,208) (31,007)

Loss from Continuing Operations -- The Company had a loss fromcontinuing operations of $4.0 million, or $0.04 per share, for thethree months ended December 31, 2005 compared to a loss of $4.6million, or $0.06 per share, for the same period 2004. The loss fromcontinuing operations for the year ended December 31, 2005 was $16.0million, or $0.16 per share, compared to a loss of $27.3 million, or$0.34 per share, for the same period 2004.

Loss from Discontinued Operations -- For the three months endedDecember 31, 2005 the Company recorded a loss from discontinuedoperations of $0.3 million, or less than $0.01 per share, compared toa loss of $3.7 million, or $0.01 per share, for the same period 2004.The loss from discontinued operations for the year ended December 31,2005 was $6.2 million, or $0.06 per share, compared to a loss of $3.7million, or $0.05 per share, for the same period 2004. The loss fromdiscontinued operations in 2005 includes an impairment of $8.7million.

2005 Highlights

-- Nevada Assets -- sold to Jipangu, Inc. for $14 million on November 18, 2005.

-- Black Fox Project -- 44,000 meters (211 holes) of surface and underground core drilling completed at Black Fox in 2005 with gold grades and results indicating the mineralized zone is still open at depth and along strike. Expect to publish new reserves estimates in April 2006, which we expect will include underground reserves and we will issue an NI 43-101 report within 45 days of publishing the new reserves.

-- Montana Tunnels -- produced 44,099 ounces of gold at the Montana Tunnels mine at a total cash cost of $563 per ounce.

-- Montana Tunnels -- Open pit mining activity was suspended on October 21, 2005. Currently the mill continues to operate, processing low grade stockpiled ore and we expect to continue milling through the end of April 2006. In March 2006 the Company adopted a plan to dispose of the Montana Tunnels mine.

-- Huizopa -- Increased interest in the Huizopa Project by 9% by acquiring Minas de Argonautas, the company with which Apollo originally entered into a joint venture on Huizopa, in the Sierra Madre area of Mexico.

-- Minera Sol de Oro, Apollo's wholly owned subsidiary, acquired claims surrounding the Huizopa project and, as a result, expanded our overall land position in Mexico to a total of 128 sq kms.

Montana Tunnels Mine -- Mining was suspended mid October 2005 as aresult of pit wall instability in September and early October 2005along the upper East Wall of the open pit. The instability is theresult of a complex interaction between relatively weak, alteredLowland Creek Volcanic (LCV) rock units, steeply dipping faults andjoints, and occasional zones of relatively less altered and morecompetent sub-vertical rock zones. Toppling type displacement patternswere evident where the more resistant rock outcrops within weak,sheared LCV rock units on the upper East Wall. The pattern ofdisplacements that occurred during September and October 2005 wasconsistent with previous slope performance when active mining unloadsthe toe of the slope.

The on-going slope deformations resulted in too steep a slopebetween the ramps and weakening of the rock mass, creating localizedinstabilities along the haul ramp that reduced ramp width andincreased the frequency of rock falls. We therefore decided on October22, 2005, for safety reasons, to cease mining and retain a third partyconsultant to review mine design criteria and determine scenariosunder which mining the pit could safely resume.

The consultant focused on geotechnical issues associated with theEast Wall area and upper access ramp location for the open pit,completing its work in late November. The consultant developed severalalternative mine designs and plans for ramp relocation, unloading theupper benches and remediation. Each plan calls for additionalunloading of up to 4.6 million tons from upper benches of the EastWall to mitigate rock fall hazards by reducing slope deformation androck mass degradation in the weak rock units exposed along the upperEast Wall. The plans also call for a new, wider haul ramp to reducethe potential for haul ramp instability along the East Wall. Inaddition, mining practices would be changed to increase the rate atwhich upper benches are unloaded during mining operations. Theestimated cost of completing the East Wall remediation, ramp wideningand relocation work is approximately $12 million. Since the open pitmining operations were suspended, the mill has been producing goldore and lead-gold and zinc-gold concentrates from low-gradestockpiled ore. On January 31, 2006 we gave a Workers Adjustment andRetraining Notification ("WARN") Act Notice to all hourly and salariedMontana Tunnels Mining, Inc., employees. The WARN Act requirescompanies to give employees 60 days' notice prior to a plant shutdownor mass layoff. We now expect to postpone a mass layoff until lateApril 2006 as we continue to mill low-grade stockpiled ore. In March2006 the Company adopted a plan to dispose of the Montana Tunnelsmine.

R. David Russell, President and Chief Executive Officer, said,"OurCompany has streamlined its resources by holding Montana TunnelsMining, Inc. out for sale and the recent reduction in our number ofexecutive officers from seven down to three. With our newly structuredCompany, we can focus our resources on our Black Fox developmentproperty and Huizopa exploration property. We have engaged in anextensive drilling program at Black Fox since we last issued ourreserve estimates in March 2004, with 527 core holes being completedin 2004 and 2005. We are now working diligently to publish new reserveestimates in April 2006."
Consolidated Financial Results Summary
(All Dollars in US, 000's unless otherwise stated)



Three months ended Year ended December
December 31, 31,
-----------------------------------------------
2005 2004 2005 2004
(1)(2) (1)(2)

Loss from continuing
operations ($3,955) ($4,550) ($15,961) ($27,295)
(Loss) income from
discontinued
operations ($293) ($1,191) ($6,247) ($3,712)
-----------------------------------------------
Net loss ($4,248) ($5,741) ($22,208) ($31,007)

Basic and diluted net
loss per share from
(US$):
Continuing
operations ($0.04) ($0.06) ($0.16) ($0.34)
Discontinued
operations ($0.00) ($0.01) ($0.06) ($0.05)
-----------------------------------------------
($0.04) ($0.07) ($0.22) ($0.39)

Basic and undiluted
shares (weighted
average) outstanding 106,869,494 81,073,691 101,811,291 78,716,042

Gold ounces sold
(continuing
operations) 5,026 12,090 44,099 33,743
Total cash costs per
ounce (US$/oz) (3) $762 $446 $563 $839

Average realized gold
price (US$/oz) $473 $403 $447 $376
Gold spot price per
ounce (US$/oz) (4) $485 $433 $445 $409

(1) Income numbers have been restated to reflect the change in
accounting policy for deferred stripping implemented in the second
quarter 2005.
(2) Certain of the comparative figures have been reclassified to
conform to the current period presentation. In particular, the
results of operations of the Nevada Assets for the three months and
year ended December 31, 2005 have been classified as discontinued
operations. Also, the production statistics reflect Montana Tunnels
only.
(3) The term "total cash cost" is a non-GAAP financial measure and is
used on a per ounce of gold sold basis. Total cash cost is
equivalent to direct operating cost as found on the Consolidated
Statements of Operations and includes by-product credits for payable
silver, lead, and zinc production. We have included total cash cost
information to provide investors with information about the cost
structure of our mining operation. This information differs from
measures of performance determined in accordance with GAAP in Canada
and in the United States and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with GAAP. This measure is not necessarily indicative of operating
profit or cash flow from operations as determined under GAAP and may
not be comparable to similarly titled measures of other companies.
(4) Average gold price as per London PM fix.
Summary Operational Statistics (1)


Year Ended December 31,
--------------------------------------
2005 2004 2003
----------- ------------ ------------
Production Summary
Gold ounces 44,099 33,743 44,124
Silver ounces 524,722 970,751 411,216
Lead pounds 10,428,061 10,064,265 10,843,184
Zinc pounds 22,380,136 26,222,805 21,792,452
Cash Cost Per Ounce
Cash Operating Cost/oz $ 529 $ 798 $ 432
Total Cash Cost/oz $ 563 $ 839 $ 457
Total Production Cost/oz $ 618 $ 913 $ 596

Gold Reserves (ounces) 535,900 643,800 692,500

(1) Statistics for Montana Tunnels only. In March 2006, the Company
adopted a plan to dispose of the Montana Tunnels mine.

Results of Operations Year Ended December 31, 2005 Compared toYear Ended December 31, 2004

Revenue from the Sale of Minerals from Continuing Operations(Montana Tunnels).

Revenues from continuing operations for the year ended December31, 2005 increased 13.1% to $43.3 million from $38.3 million for theyear ended December 31, 2004, primarily due to higher gold productionat Montana Tunnels and higher metals prices.

Revenues from gold for the year ended December 31, 2005 increased40.1% to $19.7 million from $14.1 million for the year ended December31, 2004. The average price received for gold for the years endedDecember 31, 2005 and 2004 was $447 and $417 per ounce, respectively.

Revenues from silver, zinc and lead for the year ended December31, 2005 decreased 2.7% to $23.5 million from $24.2 million during2004.

For the year ended December 31, 2005, 46% of our revenue wasderived from sales of gold and 54% from sales of silver, zinc andlead, compared to 37% from sales of gold and 63% from sales of silver,zinc and lead for 2004.

Gold production increased 30.7% to 44,099 ounces for the yearended December 31, 2005 from 33,743 ounces in 2004. Most of thisproduction was derived from modeled and unmodeled "fringe" ores minedfrom the open pit through October 2005. As a result of pit wallinstability, open pit mining operations were suspended mid October2005 and subsequent metal production was from processing lower gradestockpiled ore.

Operating Expenses

Direct Operating Costs. Direct operating costs for the year endedDecember 31, 2005 decreased 7.8% to $48.4 million from $52.5 millionfor the year ended December 31, 2004, primarily due to moving 62% moretons of waste and ore in 2004 than in 2005. These amounts includemining and processing costs, as well as smelting and refining charges.Total cash cost per ounce for the year ended December 31, 2005decreased 36.9% to $563 from $838 for the year ended December 31,2004. Although the total cash cost per ounce was lower than in 2004,it was higher than expected due to remediation expenses related to pitwall instability throughout the year, which eventually led to thesuspension of mining in the open pit in mid October 2005.Additionally, higher fuel, energy and commodity prices contributed tothe higher than expected costs, with fuel prices peaking at $2.56 pergallon during 2005.

Depreciation and Amortization. Depreciation and amortizationexpenses remained at $2.6 million for the year ended December 31,2005, the same as in 2004.

General and Administrative Expenses. General and administrativeexpenses for the year ended December 31, 2005 increased 6.9% to $7.6million from $7.1 million for the year ended December 31, 2004,primarily due to increased legal and accounting expenses incurred inconnection with our financing transactions, exchange listing fees, thecost of our Sarbanes-Oxley efforts for the year, as well as theaccrual for the costs related to the severance paid to the fourdeparted executive officers and to the amended agreements of the threeremaining officers.

Stock-based Compensation. In the year ended December 31, 2005, wealso incurred stock-based compensation of $597,000 resulting from theissuance of stock options to our employees. This compares to $767,000in 2004.

Accretion Expense. In the year ended December 31, 2005, we accruedaccretion expense of $0.9 million, relating to accrued site closurecosts at our Montana Tunnels mine as compared to $0.8 million in 2004.

Exploration and Business Development. The cost of exploration,consisting of drilling and related expenses, totaled $0.9 million and$1.1 million for the years ended December 31, 2005 and 2004,respectively. Costs incurred at Black Fox for drilling and developmentwere capitalized under Canadian GAAP.

Total Operating Expenses. As a result of these expense components,our operating expenses for the year ended December 31, 2005 decreased6.1% to $60.9 million from $64.8 million for the year ended December31, 2004, primarily due to a decrease in costs during the fourthquarter 2005 as a result of suspending open pit mining at MontanaTunnels in October 2005. The decrease in operating expenses waspartially offset by increased general and administrative expenses.

Interest Income and Interest Expense. We realized interest incomeof $397,000 during the year ended December 31, 2005 compared with$313,000 for the year ended December 31, 2004. We incurred interestexpense of $2,533,000 during 2005 and $252,000 during 2004. Theincrease in interest expense is due to accretion on the convertibledebentures, which were issued in November of 2004.

Foreign Exchange (Loss/Gain). We realized foreign exchange lossesof $35,000 and $770,000 during the years ended 2005 and 2004,respectively, from cash balances not held in United States dollars.This decrease is a result of having lower cash balances in Canadiandollars in 2005 than in 2004.

Loss from Continuing Operations

Loss from continuing operations for the year ended December 31,2005 decreased 41.5% to $16.0 million from $27.3 million in 2004. Themain factors contributing to the loss were the lower than expectedrevenues as a result of the mining problems related to the wallinstability and the higher costs of commodities such as fuel, energyand tires. The decreased loss in 2005 compared to 2004 was due to thehigh cost of mining in 2004 as a result of moving 34 million tons ofwaste and ore compared to 21 million tons in 2005.

Loss from Discontinued Operations

On November 18, 2005, the Company sold its Nevada Assets toJipangu. The Nevada Assets were therefore classified as discontinuedoperations. We incurred a loss from these discontinued operations of$6.2 million for the year ended December 31, 2005 as compared to aloss of $3.7 million for 2004.

Net Loss for the Year

Based on these factors, we incurred a net loss of $22.9 million,or $0.22 per share, for the year ended December 31, 2005, as comparedto a loss of $31.0 million, or $0.39 per share, for the year endedDecember 31, 2004.

Financial Condition and Liquidity

To date, we have funded our operations primarily through issuancesof debt and equity securities, the sale of the Nevada Assets and saleof surplus assets. At December 31, 2005, we had cash of $0.1 million,compared to cash and short-term investments of $6.9 million atDecember 31, 2004. The decrease in cash from December 31, 2004 isprimarily the result of operating cash outflows of $11.3 million andinvesting activities of $1.4 million. The cash outflows were offset inpart by proceeds of $5.9 million from sales of our common shares. AtMarch 1, 2006, we had cash and short-term investments of $7.5 million,which includes the $11.0 million released in January 2006 from therestricted cash account held at December 31, 2005 as collateralsecurity for the convertible debenture and the $3.5 million privateplacement by Jipangu in January 2006, less the payment of $2.6 millionmade to the lien holders of Black Fox.

In 2005, cash provided by investing activities totaled $1.4million. Proceeds from the sale of the Nevada Assets were $14.0million, proceeds from the sale of spare property, plant and equipmentadded a further $4.5 million and discontinued operations an additional$1.0 million. Capital expenditures were $5.5 million, of which $5.3million were for the further development of the Black Fox project. Inaddition, $12.7 million was held as restricted cash, $1.7 million ofwhich was for the Montana Tunnels reclamation liability and thebalance of $11.0 million as cash collateral security for the $8.8million convertible debentures. Restricted cash of $11.0 million wasreleased January 2006. For further details, see Note 21 of the "Notesto the Consolidated Financial Statements" in our Annual Report on Form10-K.

During the year ended December 31, 2005, financing activitiesprovided $3.2 million in cash, from (a) completing in January 2005 thesecond tranche of a registered offering of 4,199,998 units with anissue price of $0.75 for proceeds of $2.8 million, net of expenses of$0.3 million and fair value of broker's compensation warrants of $0.2million and (b) completing in June, 2005, the sale to Jipangu of10,000,000 common shares at $0.32 per share, proceeds from whichamounted to $3.2 million, net of expenses of $32,000. During 2005,$0.8 million in equipment leases were paid off and discontinuedoperations accounted for a further cash outflow of $2.0 million mainlyin the form of payment of equipment leases prior to the sale of theNevada Assets to Jipangu.

Our current funds are not sufficient to fund our projected 2006expenditures of $3.1 million at Black Fox and $2.3 million forexploration at Huizopa, as well as the Montana Tunnels mine. In March2006, the Company adopted a plan to sell Montana Tunnels Mining, Inc.,which owns the Montana Tunnels and Diamond Hill mines, the proceedsfrom which, together with our cash on hand, would provide us withsufficient liquidity to complete all planned activities for 2006. Ifwe do not sell Montana Tunnels Mining, Inc., we expect to seekalternative financing solutions, which may include entering into ajoint venture with respect to the mine, selling debt or equitysecurities, or selling the Montana Tunnels assets. Sales of debt orequity securities may include Canadian flow-through financing tofurther fund a portion of our Black Fox exploration activities.

Apollo Gold Corporation

Apollo Gold is a gold mining and exploration company with a minein Montana, the Black Fox advanced stage development project inOntario, Canada, and the Huizopa Project, an early stage explorationproject in the Sierra Madre Gold Belt in Chihuahua, Mexico.

FORWARD-LOOKING STATEMENTS

This press release includes certain forward-looking statements asdefined in the Private Securities Litigation Reform Act of 1955 withrespect to our financial condition, results of operations, businessprospects, plans, objectives, goals, strategies, future events,capital expenditure, and exploration and development efforts. Wordssuch as "expects," "anticipates," "intends," believes," and similarexpressions identify forward looking statements. These statementsinclude comments regarding: the completion of the drilling program,publishing of reserve calculations, continued milling from stockpilematerial, use of funds, availability of funds, ability to fund ourworking capital and exploration and development expenditures for thenext twelve months, estimated exploration and developmentexpenditures. These forward looking statements are subject to numerousrisks, uncertainties and assumptions including unexpected changes inbusiness and economic conditions; variations in ore grade, tonnesmined, crushed or milled; the results of independent Canadian NI43-101 reports; the outcome of assays and additional explorationsampling and drilling efforts; pit slides at our mining properties,results of current and future exploration activities; weatherfluctuations; timing and availability of external financing onacceptable terms; significant increases or decreases in gold, silver,or lead prices; and other factors in our Form 10-K for the year endedDecember 31, 2005. There can be no assurance that future developmentsaffecting the Company will be those anticipated by management. Theforecasts contained in this press release constitute management'scurrent estimates, as of the date of this press release, with respectto the matters covered thereby. We disclaim any obligation to updateforward-looking statements, whether as a result of new information,future events or otherwise.
APOLLO GOLD CORPORATION
CONSOLIDATED BALANCE SHEETS

December 31,
---------------------
2005 2004
---------- ----------
(Restated
- Note
3(h))

ASSETS (In thousands of
CURRENT U.S. Dollars)
Cash and cash equivalents (Note 1) $ 127 $ 6,886
Accounts receivable 2,638 2,963
Prepaids 400 109
Inventories (Note 5) 1,708 2,192
Current assets related to discontinued
operations (Note 4) - 10,510
---------- ----------
Total current assets 4,873 22,660
Property, plant and equipment (Note 6) 40,045 37,599
Restricted certificates of deposit (Note 7) 17,043 4,371
Deferred financing costs (Note 9) 584 901
Non-current assets related to discontinued
operations (Note 4) - 32,104
---------- ----------
TOTAL ASSETS $ 62,545 $ 97,635
---------- ----------
LIABILITIES
CURRENT
Accounts payable $ 7,185 $ 6,007
Accrued liabilities 1,841 1,795
Notes payable (Note 8) 596 789
Property and mining taxes payable 1,172 1,070
Current liabilities related to discontinued
operations (Note 4) - 8,224
---------- ----------
Total current liabilities 10,794 17,885
Notes payable (Note 8) 75 423
Convertible debenture (Note 9) 6,601 5,538
Accrued site closure costs (Note 11) 12,634 11,753
Non-current liabilities related to discontinued
operations (Note 4) - 14,815
---------- ----------
TOTAL LIABILITIES 30,104 50,414
---------- ----------

Continuing operations (Note 1)
Commitments and contingencies (Note 15)

SHAREHOLDERS' EQUITY
Share capital (Note 12) 148,295 141,795
Issuable common shares 231 231
Equity component of convertible debentures (Note
9) 1,809 1,815
Note warrants (Note 9) 781 781
Contributed surplus (Note 12) 10,561 9,627
Deficit (129,236) (107,028)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 32,441 47,221
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 62,545 $ 97,635
---------- ----------
APOLLO GOLD CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS


Year Ended December 31,
---------------------------------------
2005 2004 2003
------------- ------------ ------------
(Restated - (Restated -
Note 3(h)) Note 3(h))

(In thousands of U.S. dollars, except
for share and per share amounts)
REVENUE
Revenue from sale of
minerals $ 43,254 $ 38,254 $ 30,858
------------- ------------ ------------
OPERATING EXPENSES
Direct operating costs 48,357 52,473 34,184
Depreciation and
amortization 2,551 2,640 6,135
General and administrative
expenses 7,588 7,095 4,651
Stock-based compensation 597 767 376
Accretion expense - accrued
site closures costs 881 820 500
Exploration and business
development 918 1,051 2,117
------------- ------------ ------------
60,892 64,846 47,963
------------- ------------ ------------
OPERATING LOSS (17,638) (26,592) (17,105)
OTHER INCOME (EXPENSES)
Interest income 397 313 213
Interest expense (2,533) (252) (205)
Gain on sale of property,
plant and equipment 3,848 6 76
Foreign exchange (loss) gain
and other (35) (770) 1,231
------------- ------------ ------------
LOSS FROM CONTINUING
OPERATIONS FOR THE YEAR (15,961) (27,295) (15,790)
(LOSS) INCOME FROM
DISCONTINUED OPERATIONS FOR
THE YEAR (Note 4) (6,247) (3,712) 1,700
------------- ------------ ------------
NET LOSS FOR THE YEAR $ (22,208) $ (31,007) $ (14,090)
------------- ------------ ------------

BASIC AND DILUTED NET LOSS PER
SHARE FROM:
Continuing operations $ (0.16) $ (0.34) $ (0.29)
Discontinued operations (0.06) (0.05) 0.03
------------- ------------ ------------
$ (0.22) $ (0.39) $ (0.26)
------------- ------------ ------------
BASIC AND DILUTED WEIGHTED-
AVERAGE NUMBER OF SHARES
OUTSTANDING 101,811,291 78,716,042 54,536,679
------------- ------------ ------------
APOLLO GOLD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS


Year Ended December 31,
-----------------------------
2005 2004 2003
--------- --------- ---------
(Restated (Restated
- Note - Note
3(h)) 3(h))
(In thousands of U.S.
dollars)
OPERATING ACTIVITIES
Loss from continuing operations for the
year $(15,961) $(27,295) $(15,790)
Items not affecting cash:
Depreciation and amortization 2,551 2,640 6,135
Amortization of deferred financing
costs 319 53 -
Stock-based compensation 597 767 376
Accretion expense - accrued site
closure costs 881 820 500
Accretion expense - convertible
debenture, net of interest paid 1,085 (92) -
Gain on sale of property, plant and
equipment (3,848) (6) (76)
Reclamation and closure costs and
other 372 6 (180)
Bridge loan compensation warrants - 275 -
Net change in non-cash operating
working capital items (Note 17) 1,845 3,423 (1,094)
Discontinued operations 848 (1,299) 6,999
--------- --------- ---------
Net cash used in operating activities (11,311) (20,708) ( 3,130)
--------- --------- ---------
INVESTING ACTIVITIES
Property, plant and equipment
expenditures (5,487) (13,018) (8,518)
Short-term investments - 5,855 (5,855)
Proceeds from disposal of property,
plant and equipment 4,526 - 339
Restricted certificate of deposit and
other assets (12,671) (1,286) (1,320)
Proceeds from disposition of
discontinued operations 14,000 - -
Discontinued operations 1,022 (9,587) (3,260)
--------- --------- ---------
Net cash provided by (used in) investing
activities 1,390 (18,036) (18,614)
--------- --------- ---------
FINANCING ACTIVITIES
Proceeds on issuance of shares 5,944 6,994 37,702
Proceeds from exercise of warrants and
options - 8,931 3,937
Proceeds from bridge loan - 3,000 -
Repayment of bridge loan - (3,000) -
Acquisition and cancellation of shares - (48) -
Issuance of flow-through common shares - 515 -
Proceeds on issuance of convertible
debentures, net - 7,525 -
Proceeds from notes payable - - 1,259
Payments of notes payable (752) (1,478) (1,293)
Discontinued operations (2,030) (2,641) (2,435)
--------- --------- ---------
Net cash provided by financing
activities 3,162 19,798 39,170
--------- --------- ---------
NET (DECREASE) INCREASE IN CASH (6,759) (18,946) 17,426
CASH AND CASH EQUIVALENTS, BEGINNING OF
YEAR 6,886 25,832 8,406
--------- --------- ---------
CASH AND CASH EQUIVALENTS, END OF YEAR $ 127 $ 6,886 $ 25,832
--------- --------- ---------
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid $ 1,204 $ 560 $ 544
--------- --------- ---------
Income taxes paid $ - $ - $ -
--------- --------- ---------