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Claude Resources Inc. Records Net Profit of $0.7 Million in Second Quarter of 2012

August 13, 2012

Trading Symbols
TSX – CRJ  
NYSE MKT – CGR

SASKATOON, Aug. 13, 2012 /PRNewswire/ – Claude Resources Inc. (“Claude” and or
the “Company”) today reported its 2012 second quarter operating and
financial results.

Second Quarter Highlights Include:

        --  Production of 12,166 ounces of gold.
        --  Net profit of $0.7 million, or $0.00 per share, for the three
            months ended June 30, 2012.
        --  Cash flow from operations before net changes in non-cash
            operating working capital (1) of $5.3 million, or $0.03 per
            share, for the three months ended June 30, 2012.
        --  Gold sales during the three months ended June 30, 2012 of
            12,306 ounces at an average price of $1,633 (U.S. $1,616) for
            revenue of $20.1 million.
        --  Total cash cost per ounce of gold(2) for the second quarter of
            2012 was CDN $1,082 (U.S. $1,071).
        --  L62 Zone has been accessed and development is active on three
            levels. Development tonnage is scheduled during the third
            quarter with production tonnage scheduled for the fourth
            quarter.
        --  Exploration continued at Santoy Gap with as many as three
            drilling rigs performing infill and extension drilling.
        --  The Company increased its land position at its Amisk Gold
            Project by staking 14 new mineral claims covering an additional
            16,000 hectares on the western side of its existing land
            package.
        --  At Madsen, two underground drilling rigs and one surface
            drilling rig, targeting the completion of about 30 holes,
            continued to focus on testing of the 8 Zone Trend as well as
            the McVeigh and Austin Tuff depth continuity.

Neil McMillan, President and Chief Executive Officer stated, “During the
second quarter the Seabee Mine had a small shortfall in production.
Production and cost control will be the continued focus for the
remainder of 2012. We are determined to improve on operating
efficiencies and have recently engaged consultants to identify and
provide processes and procedures to execute on this goal. We continued
to stay on budget and on schedule on all of our capital projects.
Following the exploration success we had in 2011, the Santoy Gap
continues to demonstrate how impressive and important it is to the
future of the Seabee Operation. From discovery to production, the L62
Zone has been developed quickly and is expected to begin delivering
production ore to the mill beginning in the fourth quarter.”

“At Madsen, drilling has been slow but has proven that mineralization
continues at depth. We look forward to receiving further results over
the next quarter and will provide a project update to the market.”

Financials

A copy of Claude’s Management’s Discussion and Analysis as well as
Claude’s 2012 second quarter financial statements and notes can be
viewed at www.clauderesources.com.


    Table 1: Highlights of Financial Results of Operations
                  (in thousands of Canadian dollars, except per share
    amounts or as otherwise noted)

                                     Three months ended    Six months ended

                                     June 30    June 30   June 30   June 30

                                        2012       2011      2012      2011

    Revenue                        $  20,091 $   18,239 $  36,143 $  31,561

    Divided by ounces sold            12,306     12,418    21,853    21,879

    Average realized price per     $   1,633 $    1,469 $   1,654 $   1,443
    ounce (CDN$)

    Production costs               $  13,319 $    8,909 $  25,115 $  17,655

    Divided by ounces sold            12,306     12,418    21,853    21,879

    Total cash costs per ounce     $   1,082 $      717 $   1,149 $     807
    (CDN$)

    Net cash margin per ounce sold $     551 $      752 $     505 $     636
    (CDN$)

    Production costs               $  13,319 $    8,909 $  25,115 $  17,655

    Depreciation and depletion     $   3,892 $    2,657 $   7,152 $   4,568

    Gross Profit                   $   2,880 $    6,673 $   3,876 $   9,338

    Net profit                     $     679 $    5,185 $     188 $   7,013

    Earnings per share (basic and  $    0.00 $     0.03 $    0.00 $    0.05
    diluted)

For the three months ended June 30, 2012, the Company recorded net
profit of $0.7 million, or $0.00 per share.  This compares to a net
profit of $5.2 million, or $0.03 per share, for the three months ended
June 30, 2011.  Year to date, the Company recorded net profit of $0.2
million, or $0.00 per share (YTD 2011 – $7.0 million, or $0.05 per
share).

Gold revenue from the Company’s Seabee Gold Operation for the three
months ended June 30, 2012 increased 10 percent to $20.1 million from
$18.2 million reported for the three months ended June 30, 2011.  The
increase in gold revenue period over period was attributable to an 11
percent improvement in Canadian dollar gold prices realized (Q2 2012 -
$1,633 (U.S. $1,616); Q2 2011 – $1,469 (U.S. $1,518)) offset by
slightly lower gold sales volume (Q2 2012 – 12,306 ounces; Q2 2011 -
12,418 ounces).

Gold revenue for the first six months of 2012 increased 14 percent to
$36.1 million from the $31.6 million reported in the first half of
2011.  This increase was attributable to a 15 percent improvement in
Canadian dollar gold prices realized: YTD 2012 – $1,654 (U.S. $1,645);
YTD 2011 – $1,443 (U.S. $1,477) and consistent gold sales volume (YTD
2012 – 21,853 ounces; YTD 2011 – 21,879 ounces) period over period.

Total Canadian dollar cash cost per ounce of gold( (2)) for the second quarter of 2012 increased 51 percent to CDN $1,082 (U.S.
$1,071) per ounce from CDN $717 (U.S. $741) during the second quarter
of 2011, principally as a result of higher operating costs.  Year to
date, total cash cost per ounce of CDN $1,149 (U.S. $1,143) per ounce
were 42 percent higher than the cash cost per ounce of CDN $807 (U.S.
$826) reported during the first half of 2011. The higher cash cost per
ounce was attributable to higher operating costs, period over period.

Cash flow from operations before net changes in non-cash operating
working capital ((1)) of $5.3 million, or $0.03 per share, for the three months ended June
30, 2012, down 36 percent from $8.3 million, or $0.05 per share, for
the three months ended June 30, 2011.  Year to date, cash flow from
operations before net changes in non-cash operating working capital was
$7.8 million, or $0.05 per share (YTD 2011 – $12.0 million, or $0.08
per share).

Operations:

For the three months ended June 30, 2012, Claude milled 72,808 tonnes at
a grade of 5.45 grams of gold per tonne (Q2 2011 – 65,502 tonnes at
6.26 grams of gold per tonne).  Year to date, the Company milled
139,364 tonnes at a grade of 5.11 grams of gold per tonne (YTD 2011 -
116,003 tonnes at a grade of 6.23 grams of gold per tonne).

During the second quarter of 2012, produced ounces were relatively
unchanged period over period (Q2 2012 – 12,166; Q2 2011 – 12,624
ounces); these results fell short of Management’s expectation for the
quarter and were attributable to lower than anticipated grade.  Year to
date, produced ounces were 21,740 (YTD 2011 – 22,163 ounces) with mill
recoveries relatively unchanged period over period.


    Table 2: Seabee Gold Operation Quarterly Production and Cost
    Statistics

                                       Three months ended Six months ended

                                       June 30    June 30 June 30  June 30

                                          2012       2011    2012     2011

    Tonnes Milled                       72,808     65,502 139,364  116,003

    Head Grade (grams per tonne)          5.45       6.26    5.11     6.23

    Recovery (%)                         95.3%      95.8%   94.9%    95.4%

    Gold Produced (ounces)              12,166     12,624  21,740   22,163

    Gold Sold (ounces)                  12,306     12,418  21,853   21,879

    Production Costs (CDN$ million)      $13.3       $8.9   $25.1    $17.7

    Cash Operating Costs (CDN$/oz) (2)  $1,082       $717  $1,149     $807

    Cash Operating Costs (US$/oz) (2)   $1,071       $741  $1,143     $826

For the three months ended June 30, 2012, mine production costs of $13.3
million (Q2 2011 – $8.9 million) were 49 percent higher period over
period. Year to date, mine production costs were $25.1 million (YTD
2011 – $17.7 million), an increase of 42 percent.  These increases in
mine production costs were primarily attributable to increased
personnel and wage increases.

Exploration:

Claude continued to advance its exploration and development strategy
during the second quarter of 2012.  Exploration at the Seabee Gold
Operation focused on expanding and delineating the L62 and Santoy Gap
deposits and drill testing the Neptune target.  At the Amisk Gold
Project, exploration drilling continued to expand and confirm the
National Instrument 43-101 open-pit resource estimate. At Madsen, the
Company continued with its three-rig, surface and underground drill
program.  The program is focused on evaluating the 8 Zone Trend, the
Austin and McVeigh Tuff and the Main Madsen Trend below the 4,000 foot
level.

Outlook

For the remainder of 2012, and looking forward, the Company will
continue to:


    i)   Pursue best practices in the areas of safety, health and the
         environment;

    ii)  Increase production and improve unit operating costs at the Seabee
         Gold Operation by investing in capital projects and equipment to
         further develop satellite deposits;

    iii) Sustain or increase reserves and resources at the Seabee Gold
         Operation through further exploration and development;

    iv)  Advance surface and underground exploration drill programs at the
         Company's 100 percent owned Madsen Exploration Project with
         continuation of Phase II of underground drilling from the 16th
         level drill platform; and

    v)   Expand the scope of the Amisk Gold Project, including a
         preliminary economic assessment.

Operating Outlook for 2012

For 2012, forecast gold production at the Seabee Operation has been
lowered to range from 48,000 to 50,000 ounces of gold from 50,000 to
52,000 ounces of gold.  Unit cash costs for 2012 are estimated to be
about 10 percent higher than full year 2011′s unit cash cost of $908
CDN per ounce.  Quarterly operating results are expected to fluctuate
throughout 2012; as such, they will not necessarily be reflective of
the full year average.

A copy of Claude’s Management’s Discussion and Analysis as well as
Claude’s 2012 second quarter financial statements and notes can be
viewed at www.clauderesources.com.  Further information relating to Claude Resources Inc. has been filed
on SEDAR and may be viewed at www.sedar.com.

Conference Call and Webcast 

We invite you to join our Conference Call and Webcast on August 13, 2012
at 11:00 AM Eastern Standard Time.

To participate in the conference call please dial 1-647-427-7450 or
1-888-231-8191.  A replay will be available until August 21, 2012 at
11:59 PM ET by calling 1-855-859-2056 and entering the passcode
12908794.

To view and listen to the webcast please use the following URL in your
web browser: http://www.newswire.ca/en/webcast/detail/1009437/1090657

Claude Resources Inc. is a public company based in Saskatoon, Saskatchewan, whose shares
trade on the Toronto Stock Exchange (TSX-CRJ) and the NYSE MKT (NYSE
MKT-CGR). Claude is a gold exploration and mining company with an asset
base located entirely in Canada. Since 1991, Claude has produced over
995,000 ounces of gold from its Seabee mining operation in northeastern
Saskatchewan. The Company also owns 100 percent of the 10,000 acre
Madsen Property in the prolific Red Lake gold camp of northwestern
Ontario and owns 100 percent of the Amisk Gold Project in northeastern
Saskatchewan.

Brian Skanderbeg, P.Geo., Vice President, Exploration, and Peter Longo,
P.Eng., Vice President, Operations, Qualified Persons, have reviewed
the contents of this news release for accuracy.

Footnotes

((1))Cash flow from operations before net changes in non-cash operating
working capital is a non-IFRS performance measure.  For an explanation
of non-IFRS performance measures, refer to the “Non-IFRS Performance
Measures” section of the Company’s MD&A.

((2))Cash operating cost per ounce of gold is a non-IFRS performance
measure.  For an explanation of non-IFRS performance measures refer to
the “Non-IFRS Performance Measures” section of the Company’s MD&A.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

All statements, other than statements of historical fact, contained or
incorporated by reference in this news release and  constitute
“forward-looking information” within the meaning of applicable Canadian
securities laws and “forward-looking statements” within the meaning of
the United States Private Securities Litigation Reform Act of 1995
(referred to herein as “forward-looking statements”).  Forward-looking
statements include, but are not limited to, statements with respect to
the future price of gold, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and
amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits,
success of exploration activities, permitting time lines, currency
exchange rate fluctuations, requirements for additional capital,
government regulation of mining operations, environmental risks,
unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage.  Generally, these forward-looking
statements can be identified by the use of forward-looking terminology
such as “plans”, “expects” or “does not expect”, “is expected”,
“budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates” or “does not anticipate” or “believes”, or the negative
connotation thereof or variations of such words and phrases or state
that certain actions, events or results, “may”, “could”, “would”,
“might” or “will be taken”, “occur” or “be achieved” or the negative
connotation thereof.

All forward-looking statements are based on various assumptions,
including, without limitation, the expectations and beliefs of
management, the assumed long-term price of gold, that the Company will
receive required permits and access to surface rights, that the Company
can access financing, appropriate equipment and sufficient labour, and
that the political environment within Canada will continue to support
the development of mining projects in Canada.

Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Claude to be
materially different from those expressed or implied by such
forward-looking statements, including but not limited to:  actual
results of current exploration activities; environmental risks; future
prices of gold; possible variations in ore reserves, grade or recovery
rates; mine development and operating risks; accidents, labour issues
and other risks of the mining industry; delays in obtaining government
approvals or financing or in the completion of development or
construction activities; and other risks and uncertainties, including
but not limited to those discussed in the section entitled “Business
Risk” in this news release.  These risks and uncertainties are not, and
should not be construed as being, exhaustive.

Although Claude has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended.  There can be
no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements.  Accordingly, readers should not place
undue reliance on forward-looking statements.

Forward-looking statements in this news release are made as of the date
of this news release, being August 13, 2012 and, accordingly, are
subject to change after such date.  Except as otherwise indicated by
Claude, these statements do not reflect the potential impact of any
non-recurring or other special items that may occur after the date
hereof.  Forward-looking statements are provided for the purpose of
providing information about management’s current expectations and plans
and allowing investors and others to get a better understanding of our
operating environment.

Claude does not undertake to update any forward-looking statements that
are incorporated by reference herein, except in accordance with
applicable securities laws.

A copy of Claude’s second quarter 2012 Management’s Discussion and
Analysis and financial statements and notes can be viewed at
www.clauderesources.com.  Further information relating to Claude Resources Inc. has been filed
on SEDAR and may be viewed at
www.sedar.com.

 

SOURCE CLAUDE RESOURCES INC.


Source: PR Newswire