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Louvem Mines Reports Its Third Quarter Results 2007

Posted on: Thursday, 1 November 2007, 09:00 CDT

Louvem Mines Inc. (TSX VENTURE: LOV), announces today its financial results for the third quarter, which ended September 30, 2007.

Precious-metal revenues and other revenues fell by $322,342 to reach $1,407,223 during the third quarter of 2007 compared to the same quarter in 2006. In the third quarter of 2007, 1,880 ounces of gold were sold at an average price of US$662 (CAD$728), compared with 2,500 ounces of gold sold at an average price of US$607 (CAD$688) for the same period in 2006. The decrease in revenues is attributable to the five-week production shut down at the Beaufor Mine in order to construct a new headframe.

The Company posted a loss of $227,729 for the third quarter of 2007, compared with a loss of $515,305 for the same period in 2006. The difference of $287,576 is due primarily to:

- the change in the profit margin from mining operations, which totalled $291,877 during the third quarter of 2007, compared with $160,470 during the same period in 2006, owing to a substantial rise in the ore grade (which rose from 5.75 g/t in the third quarter of 2006 to 8.40 g/t for the same period in 2007) and the higher selling price per ounce of gold that was achieved;

- the increase in depreciation and depletion expenses, which rose from $113,290 for the third quarter of 2006 to $212,488 for the same quarter in 2007, due to a higher rate of depreciation and depletion per ounce, which is calculated based on the proven and probable reserves at the Beaufor Mine as at December 31, 2006;

- and a lower charge for mining and income taxes.

The Company posted a net profit of $529,223 for the first nine months of 2007 ending September 30, 2007, compared with a loss of $1,274,528 for the same period in 2006.

Precious-metal revenues and other revenues rose by $1,542,710 during the first nine months of 2007 to reach $8,433,442 during the first nine months of the year compared with $6,890,732 during the same period in 2006. The difference is attributable to the increase in gold sales and to the higher average selling price per ounce that was achieved. Specifically, 11,284 ounces of gold were sold at an average price of US$674 (CAD$741), compared with 10,132 ounces of gold sold at an average price of US$596 (CAD$676) for the same period in 2006.

As announced previously the Beaufor Mine closed for a period of five weeks during the third quarter in order to build a new headframe. The mining activities resumed on August 21, 2007. An amount of $929,972 was spent on this work, $464,986 represents Louvem's share of this cost.

During the third quarter of 2007 the Beaufor Mine produced a total of 13,934 tonnes of ore at an average recovered grade of 8.40 g/t for a total of 3,761 ounces of gold, Louvem's share of 1,880 ounces were sold at an average price of US$662 per ounce. For the third quarter of 2006 the Beaufor Mine produced a total of 27,052 tonnes of ore at an average recovered grade of 5.75 g/t for a total of 5,000 ounces of gold, Louvem's share of 2,500 ounces were sold at an average price of US$607 per ounce.

Excluding the shut down period, more gold was recovered on a per day basis in the third quarter than the prior year. Due to the reduction in volume from fewer operating days, the cash cost in the third quarter of 2007 was US$521 per ounce sold compared with US$550 in the third quarter of 2006.

Mr. Rivard declared, "Our results at the Beaufor Mine have been very positive this year, and we expect production in the fourth quarter to return to the pre-shut down level of close to 10,000 tonnes per month. We anticipate the recovered grade to meet expectations and remain in the 7 to 8 g/t range."

Beaufor Mine exploration: A $1.8 million exploration program is in process at Beaufor to uncover potential new faults that may contain gold-bearing zones. Additionally, drilling efforts were underway in the third quarter to define the magnitude of the extensions of the two main zones of the deposit. Of the 25,000 metres of drilling planned for 2007, 6,658 metres were completed in the third quarter, for a total of 18,848 metres since the beginning of the year. Over $1.3 million has been invested in exploration at Beaufor in the first nine months of 2007, $0.7 million for Louvem.

Outlook

Louvem is pleased with the recent operating improvements at the Beaufor Mine and remains enthusiastic with the exploration potential on this property. The Company has no hedging contract on gold and currency.

Jean-Guy Rivard

President and Chief Executive Officer

About Louvem Mine Inc.

The Company has a 50% interest in the Beaufor Mine and owns other exploration properties located near Val-d'Or, in North-western Quebec, Canada.

More information on Louvem Mines can be found o its website at: www.louvem.com.

 KEY FINANCIAL DATE --------------------------------------------------------------------------                               Three-month period         Nine-month period                               ended September 30        ended September 30                                2007         2006         2007         2006 -------------------------------------------------------------------------- Results ($) Revenues                  1,407,223    1,729,565    8,433,442    6,890,732 Net earnings (loss)        (227,729)    (515,305)     529,223   (1,274,528) Cash flow from  (used in) operations      (247,226)    (647,933)   2,610,488     (713,815) Results per share ($) Net earnings (loss)  basic and diluted            (0.01)       (0.02)        0.02        (0.05) Weighted average  number of common  Shares outstanding      25,929,689   25,929,689   25,929 689   25,941,099 -------------------------------------------------------------------------- --------------------------------------------------------------------------                               September 30, 2007         December 31, 2006 -------------------------------------------------------------------------- Financial position ($) Total assets                           4,638,425                 4,997,514 Working capital                        1,816,750                   532,072 Due to parent company                          -                   700,000 Long term debt                                 -                         - --------------------------------------------------------------------------                        Sales and production data -------------------------------------------------------------------------- Beaufor Mine - 50 %                  Three-month period ended September 30 --------------------------------------------------------------------------                                             2007                      2006 -------------------------------------------------------------------------- Gold sales (ounces)                        1,880                     2,500 Production of gold (ounce)                 1,935                     2,487 Cash cost (per ounce sold)                   521                       550 Average selling  price (per ounce of gold)                   662                       607 -------------------------------------------------------------------------- -------------------------------------------------------------------------- Mine Beaufor - 50 %                   Nine-month period ended September 30 --------------------------------------------------------------------------                                             2007                      2006 -------------------------------------------------------------------------- Gold sales (ounces)                       11,284                    10,132 Production of gold (ounce)                11,200                    10,095 Cash cost (per ounce sold)                   445                       581 Average selling price  (per ounce of gold)                         674                       596 -------------------------------------------------------------------------- Average exchange rate used  for the third quarter 2006: 1 $ US equals 1.13 $ CAN 2007 estimated exchange rate: 1 $ US equals 1.10 $ CAN 

The TSX Venture Exchange accepts no responsibility for the veracity or accuracy of this news release.

 Contacts: Louvem Mine Inc. Jean-Guy Rivard President and Chief Executive Officer 514-397-1448 514-397-8620 (FAX) www.louvem.com

SOURCE: Louvem Mines Inc.

Source: MARKET WIRE

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