EURO Ressources

EURO RESSOURCES REPORTS EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2012

EURO RESSOURCES REPORTS EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2012  

PARIS, France, March 1, 2013:  EURO Ressources S.A. ("EURO" or the "Company") (Paris: EUR) today announced its audited statutory financial results prepared in accordance with  French Generally Accepted Accounting Principles ("GAAP") and its audited financial results prepared in accordance with International Financial Reporting Standards ("IFRS") for the year ended December 31, 2012.  These audited financial results were approved by the Board of Directors on February 28, 2013.

Under French GAAP, EURO reported a net profit of €25.35 million (€0.405 per share) for the year ended December 31, 2012, compared to €22.27 million (€0.356 per share) for the year ended December 31, 2011.  All financial amounts are expressed in Euros unless otherwise specified.

Highlights for 2012

• Under French GAAP, EURO recorded revenue of €41.46 million for 2012, an increase of 12% as compared to €37.02 million for 2011.
• EURO distributed its first dividend in the amount of €18.1 million (€0.29 per share).

The following comments on the financial results for the year ended December 31, 2012 are taken from the French "Rapport de Gestion" (equivalent of Management's Discussion and Analysis).

Under French GAAP, EURO recorded revenues of €41.46 million for 2012, an increase of 12% compared to revenues of €37.02 million for 2011.  The revenues are essentially attributable to the Rosebel royalty with €41.07 million (2011: €36.77 million) earned from Rosebel.  The 12% increase in revenues is substantially due to the increase in average gold price for 2012 to $1,669 per ounce of gold (2011: $1,572 per ounce of gold) for €2.7 million, and to the weakened euro currency for €2.1 million, partially offset by the 1% decrease in gold production with 402,012 ounces of gold produced in 2012 as compared to 405,544 ounces of gold produced in 2011 for €0.3 million.

Operating expenses (excluding amortization and depreciation expenses) for 2012 were
€1.48  million, compared to €1.46 million in 2011, an increase of 1%, primarily due to the increase in the value added tax (Contribution de la Valeur Ajoutée des Entreprises "C.V.A.E"), partially offset by a decrease in general and administrative expenses.

The amortization expense for €0.62 million in 2012 compares to €0.61 million in 2011.

EURO recorded an income tax expense of €14.15 million for 2012, as compared to €11.70 million for 2011. The increase in income tax expense is mainly due to the increase in revenues for 2012, as compared to 2011 and the additional contribution enacted in August 2012, which imposes a 3% (€0.54 million) additional tax on all dividend distributions.