Campbell Resources Announces a $5,000,000 Convertible Note

Financing and its First Quarter Results for 2005 
MONTREAL, May 11 /CNW Telbec/ - Campbell Resources Inc. (TSX: CCH, OTC
Bulletin Board: CBLRF) is pleased to announce that, subject to receipt of
regulatory approval, it will be concluding a private placement of convertible
unsecured promissory notes (the "Notes") to RAB Special Situations (Master)
Fund Limited, a Cayman Islands registered hedge fund managed by RAB Capital
plc ("RAB.LN") for aggregate gross proceeds of $5,000,000. 
The notes shall bear interest at 1% per calendar month and are
convertible into units ("Units") at the option of the holder at the conversion
price of $0.38 per Unit at any time prior to the third anniversary of the
Notes. Each Unit consists of one common share in the capital stock of Campbell
and one half share purchase warrant ("Warrant"). Each full Warrant entitles
the holder to acquire one additional common share at an exercise price of
$0.38, exercisable for a period of three years from the date of issuance of
the Warrant. An underwriting fee of $1,500,000 is payable in shares on closing
of the financing. The maximum number of common shares to be issued upon
conversion of the Notes, interest and exercise of all of the Warrants will be
30,789,421 for a total proceed of $8,400,000 ($0.273 per share). 
Closing is scheduled to be held on or around June 6, 2005. Proceeds from
this financing will be used for working capital purposes as Campbell used its
working capital to finance the completion of the Copper Rand project. The
Company's balance sheet will thus be improved accordingly. 
For the first quarter, Campbell recorded a net loss of $2.7 million or
$0.02 per share in the first quarter of 2005, compared with a net loss of
$1.8 million or $0.02 per share for the same period in 2004. The main reasons
are a lack of improvement in the performance of the Joe Mann Mine and the
delay in the start-up the Copper Rand Mine. 
Gross metal sales for the first quarter of 2005 were $5.5 million
(9,365 ounces of gold) compared to $4.4 million (7,570 ounces) for the
comparable period in 2004. The average market price for gold in the first
quarter was US$427 (CDN$524) compared to US$409 (CDN$537) for the first
quarter of 2004. The average sale price was CDN$523 per ounce of gold compared
to 542.31 in the first quarter of 2004. 
Mining expenses for the first quarter 2005 were $5.6 million compared to
$4.5 million for the corresponding period of 2004. Amortization costs were
$1.7 compared to $1.2 in the first quarter of 2004. Total cost per ounce
produced was US$565 (CAN$693) compared with US$455 (CAN$598) in 2004. 


    JOE MANN MINE
    -------------


Production in the first quarter 2005 was 41,891 tons grading
0.217 Au oz/t and 0.29% Cu. Gold grade was once again affected by higher
dilution in two particular stopes. To counteract the disappointing results,
the Company has undertaken the following measures: accelerate the workforce
reduction scheduled for May and June; modify stoping sequence in favour of
higher grade stopes; and lower grade material will be mined once operating
costs allow it. These measures, in addition to those already undertaken, will
contribute to an improvement in the mine's performance. 


    COPPER RAND MINE
    ----------------


As previously reported, operations at the Copper Rand Mine are improving
after a difficult start-up period. In the first quarter of 2005, the mill
processed 29,546 tons grading 0.049 Au oz/t and 1.687% Cu. An additional
$3.9 million was invested in the project in this first quarter as development
costs exceeded revenues by this amount. 
In April, the Copper Rand Mine showed a significant improvement over
previous months. A total of 17,210 tons of ore was mined and a total of
15,650 tons grading 0.077 Au oz/t and 2.71% Cu was milled for a total
production of 1,044 ounces of gold and 826,296 pounds of copper (1,182 ounces
of gold and 975,266 pounds of copper in the first quarter). A total of
24,000 tons (ore and waste) was hoisted, also representing a significant
improvement over the previous months' performance. 


    FINANCIAL SITUATION
    -------------------


Delay in the commercial production at the Copper Rand Mine and the
performance at the Joe Man Mine have had a considerable impact on the
Company's balance sheet. 
In April, both operations generated cash and it is expected this to
continue in the coming months. Production to date this month confirms that the
expectation will be realized. The private placement to be concluded in early
June with RAB.LN and the balance of approximately $1,000,000 owing to Campbell
on the sale of the Bachelor Lake property will be used to improve the
Company's working capital. 
The Company has also initiated discussion with potential partners in
regards to an eventual joint partnership in some of its other advanced
projects. 


    OUTLOOK
    -------


The current environment for gold and copper prices is very favourable to
companies such as Campbell. It is thus incumbent upon management to seize the
opportunity of this very favourable environment. 
The Joe Mann mine has enough reserves to possibly extend operations into
2006, provided that it generates positive results. Employees are aware of this
situation as work force reduction has been initiated and development work
reduced substantially. Efforts are being made by all employees to attain this
objective and, possibly, add a few months to the life of the mine. 
The Copper Rand mine has finally generated some positive results in April
in spite of operating at 50% of planned capacity. All of the infrastructures
of the mine are operating very satisfactorily and the challenge is to generate
a greater volume by gradually increasing the number of stopes and ore output
from stopes. 
The Company also realizes that the current favourable environment
represents an opportunity for the development of its other properties with
others and will be pursuing this strategy over the coming months. 
Certain information contained in this release contains "Forward-Looking
Statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 and is subject to certain risks and uncertainties, including those
"Risk Factors" set forth in the Campbell's current Annual Report on Form 20-F
for the year ended December 31, 2004. Such factors include, but are not
limited to: differences between estimated and actual mineral reserves and
resources; changes to exploration, development and mining plans due to prudent
reaction of management to ongoing exploration results, engineering and
financial concerns; and fluctuations in the gold price which affect the
profitability and mineral reserves and resources of Campbell. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. Campbell undertakes no obligation to
release publicly any revisions to these forward-looking statements to reflect
events or circumstances after the date hereof or to reflect unanticipated
events or developments. 


    INFORMATION REGARDING TELECONFERENCE:
    -------------------------------------
    Date:  Wednesday, May 11, 2005
    Time:  4:00 PM (ET)
    Tel.:  (800) 814-4862


The conference call will feature André Fortier, President and Chief
Executive Officer, and Lucie Brun, Executive Vice President and Chief
Administrative Officer. 
A replay of the conference call will be available after 6:00 p.m. (ET) on
May 11, 2005, until May 18, 2005. Please dial (877) 289-8525 and provide the
operator with the following access code 21120842 followed by (pound key). 
We look forward to your participation and thank you for your interest in
Campbell Resources. 


    <<
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    (Expressed in thousands of Canadian dollars)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                     March 31   December 31
                                                         2005          2004
    -------------------------------------------------------------------------
                                                            $             $
    Assets
    Current assets
      Cash and cash equivalents                           322         1,191
      Restricted cash                                     350           350
      Short-term investments (fair value $124)            124           102
      Receivables                                       1,090         2,819
      Settlements receivable                            4,404         3,131
      Notes receivable                                                    -
      Production inventories                              400           592
      Supply inventories                                3,746         3,982
      Prepaids                                            623           218
    -------------------------------------------------------------------------
                                                       11,059        12,385
    Amount receivable from Copper Rand/Portage
     Restoration Fiduciary Trust                        2,895         2,853
    Notes receivable                                   25,405        26,145
    Restricted deposits and exchange agreement         49,516        49,447
    Future income taxes                                 1,754         1,901
    Property, plant and equipment                      81,495        79,379
    Accrued benefit asset                               3,376         3,215
    Deferred charges and other assets                   2,266         2,431
    -------------------------------------------------------------------------
                                                      177,766       177,756
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    Current liabilities
      Short term loan                                   4,084         2,686
      Accounts payable                                 13,517        11,149
      Accrued liabilities                               3,688         3,670
      Current portion of long-term debt                 3,536         2,694
    -------------------------------------------------------------------------
                                                       24,825        20,199
    Asset retirement obligations                        7,429         7,321
    Long-term debt                                     63,336        63,808
    Future income taxes                                 3,920         4,067
    Deferred royalty                                   26,310        27,776
    -------------------------------------------------------------------------
                                                      125,820       123,171
    -------------------------------------------------------------------------
    Shareholders' equity
      Capital stock                                    69,648        69,610
      Warrants, stock options and conversion rights     2,816         3,074
      Contributed surplus                               1,359         1,101
      Deficit                                         (21,877)      (19,200)
    -------------------------------------------------------------------------
                                                       51,946        54,585
    -------------------------------------------------------------------------
                                                      177,766       177,756
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
    (Expressed in thousands of Canadian dollars except
     per share amounts)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                         Three months ended
                                                              March 31
                                                         2005          2004
    -------------------------------------------------------------------------
                                                            $             $
                                                                  (restated)
    Gross metal sales                                   5,512         4,396
    Treatment charges                                     439           324
    -------------------------------------------------------------------------
    Net metal sales                                     5,073         4,072
    -------------------------------------------------------------------------
    Expenses
      Mining                                            5,553         4,523
      Depreciation and amortization                     1,662         1,190
      General administration                              753           478
      Care and maintenance                                 92            84
      Exploration                                         159           207
    -------------------------------------------------------------------------
                                                        8,219         6,482
    -------------------------------------------------------------------------
    Loss before the following items                    (3,146)       (2,410)
    -------------------------------------------------------------------------
    Interest expense on long-term debt                   (241)         (125)
    Interest income                                       401           437
    Amortization of deferred charges                      (66)          (66)
    -------------------------------------------------------------------------
    Loss from operations                               (3,052)       (2,164)
    -------------------------------------------------------------------------
    Other income (expense)
      Other income                                        412           406
    -------------------------------------------------------------------------
    Loss before taxes and non-controlling interest     (2,640)       (1,758)
    Income and mining tax                                 (37)          (40)
    -------------------------------------------------------------------------
                                                       (2,677)       (1,798)
    Non-controlling interest                                -             2
    -------------------------------------------------------------------------
    Net loss                                           (2,677)       (1,796)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number of common shares ('000)   107,239        89,050
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Loss per share undiluted and diluted                (0.02)        (0.02)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>
    %SEDAR: 00001579EF


For further information: Campbell Resources Inc.: André Fortier, President and 
Chief Executive Officer, 514-875-9037, Fax: 514-875-9764, 
afortier@campbellresources.com; Renmark Financial Communications Inc.: Henri 
Perron, hperron@renmarkfinancial.com; John Boidman, 
jboidman@renmarkfinancial.com, Cynthia Lane-Filiatrault, 
clane@renmarkfinancial.com; 514-939-3989, Fax 514-939-3717, 
www.renmarkfinancial.com

CO: CAMPBELL RESOURCES INC.
ST: Quebec
NI: ERN LOAN MNA CONF MNG
-0- May/11/2005 14:25 GMT