CALGARY, ALBERTA — (Marketwire) — 08/29/12 — Kirrin Resources Inc. (TSX VENTURE: KYM) today reported its financial results and corporate update for the second quarter of 2012. During the quarter, the Company focused on reviewing alternative strategies to complete its 2012 exploration plans, introduce new projects to the Company, and ensure continuing operations by the Company. Negotiations included potentially expanding Kirrin-s activities beyond REE and uranium exploration and beyond Canada. No financings were agreed during the quarter and no agreements have been reached arising from the aforementioned negotiations.
Kirrin recorded a net loss of $47,947 during the quarter, as against a net loss in the comparable quarter in 2011 of $176,007, which included a tax credit of $19,320. Mineral interests showed minimal change as only minimal exploration work was undertaken during the quarter. The Company had a working capital deficit of $518,386 at the quarter end as compared to a deficit of $425,815 at the year end and positive working capital of $349,084 at June 30, 2011. Summary financial data is set out in tabular form below.
Excluding exploration activities, expenses for the six months ended June 30, 2012 amounted to $131,423, a decrease of 61% over 2011 largely resulting from the necessity to reduce costs occasioned by tight cash resources. Expenses under the headings Salaries and benefits, Financial administration, General office and miscellaneous and Travel and marketing, in aggregate $77,671 for the six months ended June 30, 2012 (2011: $188,249) partially decreased consequent upon the lower exploration program and voluntary reductions in contractual obligations. The investor relations program has been discontinued and costs in this category, $14,119 for the six months ended June 30, 2012 (2011: $105,488) were limited to those necessarily incurred to maintain Kirrin-s listing status. Stock based compensation reduced to $17,390 against $30,820 in 2011 because no options have been issued since January 2011.
Kirrin does not generate positive cash flow, has limited financial resources and must raise additional capital to implement its programs. The state of the capital markets remains challenging and the interest of investors in micro companies limited. Kirrin-s working capital deficit is a significant factor impacting the Company-s strategic options. There can be no assurance that the Company will be successful in raising additional capital to implement its programs or to conclude alternative arrangements allowing it to continue operations.
Additional information relating to Kirrin is available on Kirrin-s web site at and on SEDAR at .
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Contacts: Kirrin Resources Inc. Derek J Moran President 27 82 440 3426
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