EDMONTON, ALBERTA - April 21, 2011 - Titanium Corporation Inc. (the "Company") (TSX-V: TIC) today released financial results for the second quarter ended February 28, 2011.
During the quarter, the Company completed its demonstration pilot project at the Canadian Government's CanmetENERGY ("Canmet") oil sands test facilities for three oil sands operators, commissioned a paraffinic pilot for two other oil sands firms and completed a $14.3 million Private Placement to fund the Company's commercialization activities.
Scott Nelson, the Company's President and Chief Executive Officer said, "During the second quarter we reached a significant milestone by successfully completing the third and final pilot test project of the major naphtha based mining oil sands operators. Once again our testing under operating conditions exceeded our expectations. We have now essentially concluded the testing phase with the large naphtha based oil sands mining producers and are now focusing our efforts on commercialization planning with our industry partners and Government."
Net loss for the second quarter of fiscal 2011 was $2.5 million compared to $0.9 million for the comparable 2010 fiscal period. The difference relates to increased research and development costs associated with operating the integrated demonstration pilot in the current period which was not in operation during the comparative period.
Research & Development - R&D expenditures before grant recoveries for the quarter ended February 28, 2011 were $2.4 million as compared to $1.4 million for the same period in 2010. The current quarter expenditures reflect amounts incurred in operating the integrated demonstration pilot in addition to construction costs for the paraffinic pilot. The Company realized $0.9 million in government grants for the quarter ended February 28, 2011 as compared to $1.0 million for the same period in 2010.
General & Administrative - G&A expenses was marginally higher at $0.5 million for the second quarter of fiscal 2011 compared to the same period in fiscal 2010 as the company incurred additional costs related to the financing.
Cash & Interest income - The Company's cash position at February 28, 2011 was $15.1 million (including $0.4 million in restricted investments relating to the Alberta Government grant). This compares to $9.5 million at August 31, 2010 (including $0.4 million in restricted investments relating to the Alberta Government Grant). Interest income increased during the quarter and the fiscal year due to higher interest rates and higher cash balances.
To view the Company's Management Discussion and Analysis and Financial Statements for the quarter ended February 28, 2011, please visit our website at www.titaniumcorporation.com or SEDAR at www.sedar.com.
About Titanium Corporation Inc.
Titanium Corporation Inc. is developing technology to recover heavy minerals and bitumen contained in the waste tailings streams from oil sands mining operations near Fort McMurray, Alberta. The potential benefits from this "Creating Value from Waste TM" proposition are twofold. First, the recovered bitumen and minerals will have intrinsic value and will provide shareholders with a source of revenue. Second, by using an integrated approach to recovering minerals and bitumen, there is potential for industry-wide environmental benefit. The Company's shares trade on the TSX-V under the symbol "TIC". For more information visit the Company's website at www.titaniumcorporation.com.
Disclosure regarding forward-looking statements
Certain statements contained herein regarding the Company and its plans constitute "forward-looking statements" within the meaning of Canadian securities laws. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that predictions, forecasts, conclusions, projections, and other forward-looking statements will not prove to be accurate. We direct you to our statement of risks and uncertainties more particularly described and updated in the Company's Management Discussion and Analysis filed for the period ended February 28, 2011 and for the year ended August 31, 2010 on SEDAR (www.sedar.com). Most notably these risks include, but are not limited to risks associated with the advancement of research programs including operational or technical difficulties in connection with research activities; development timeline delays and problems, including unforeseen development costs; reliance on a small number of people, access to and cost of tailings, competition and intellectual property protection and changes to environmental laws and regulations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, contact:
President & CEO
Tel: (403) 561-0439
Tel: (416) 577-9927
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