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Gold/Mining/Energy : Nora NXI on ME -- Ignore unavailable to you. Want to Upgrade?

To: labonden who wrote (161)	3/20/1998 3:21:00 PM
From: John Stella	Respond to of 420

*********NEWS RELEASE********** DATE: March 17th, 1998 NEWS - FOR IMMEDIATE RELEASE NORA EXPLORATION ANNOUNCES ANNUAL RESULTS NORA EXPLORATION INC. "Nora" (NXI-ME) Montreal ,(QC) - To Our Shareholders, Management is pleased to announce that 1997 was a great year for the Corporation. The transition from an exploration Company to a diamond exploration and mining Company has produced Nora's first ever diamond mining revenue, its strongest balance sheet ever and contributed to a landmark year in the company's evolving and increasingly successful development. The 1997 Corporation's financial statements report diamond mining revenues of $1,435,000, operating costs and expenses of $1,287,000, Namibian income taxes of $8,000 resulting in an operating income of $140,000 and a cash flow of $500,000. However, it is to be noted that $360,000 of expenses related to the production plant up-grade were included in the $1,287, 000 of production costs and expenses. General and administrative expenses totaling $761,754 (net of interest income) resulted in a loss of $ 621,754 (or $0.03 per share) before non-recurring items compared to last year's loss of $329,651 (or $ 0.03 per share) before non-recurring items. The significant increase in general and administrative expenses is a direct result of the Corporation's growth in its overall activities including the closing of a major acquisition in Namibia. The Corporation had non-recurring expenses of $879,435 compared to $43,486 last year. A major portion of the non-recurring expenses result from a write-off of $814,170 in deferred exploration and development expenses for the East Leitch gold project in Ontario. While management strongly believes that it will, over time, recuperate the amount, the decision to write-off its investment in the East Leitch project clearly demonstrates management's conservative financial philosophy. In summary, after taking into consideration the non-recurring expenses the Corporation declared a net loss for the year of $1,501,189 (or $ 0.08 per share) on diamond mining revenues of $1,435,000 compared to a net loss of $286,165 (or $ 0.03 per share) with no revenues last year. The Corporation's asset growth was an astonishing 159% during the year, from $4,002.148 in 1996 to $10,367,548 in 1997. The Corporation's major assets are now the $4,892,366 forty-seven (47%) interest holding in Otjua Minerals (Pty) Limited and the $1,892,000 investment in the Namibian Gemstones concession. The acquisitions have not only strengthened and diversified Nora's balance sheet they also represent concrete evidence of management's corporate philosophies and practices that combine a conservative approach to risk management with an aggressive development program justified by sound resource logistics and economics. The coming year will be one focused on steadily increasing production output combined with aggressive exploration activities on the most immediate promising properties controlled by the Corporation. Management wishes to extend a cordial invitation to all shareholders and interested parties to attend our annual general shareholders assembly which will be held on Tuesday March 24, 1998 at 10:00 a.m. at the Queen Elizabeth Hotel (Mackenzie Hall) located in Montreal. FOR MORE INFORMATION CONTACT Mr. Pierre L‚veill‚ President John Stella Investor Relations