Campbell Resources announces second quarter 2008 financial

results 
YEAR-TO-DATE LOSS FROM OPERATIONS REDUCED BY APPROXIMATELY 29%
YEAR-TO-DATE COPPER PRODUCTION INCREASED BY APPROXIMATELY 97% 
MONTREAL, Aug. 6 /PRNewswire-FirstCall/ - Campbell Resources Inc. (the 
"Company") ("Campbell") (TSX: CCH, OTC Bulletin Board: CBLRF) today announced 
financial results for the second quarter and first six months of fiscal 2008 
ended June30, 2008. During and subsequent to the period, the Company realized 
a number of achievements: 


    - Increased year-to-date ore production by approximately 78%
    - Increased year-to-date copper production by approximately 97%
    - Reduced year-to-date loss from operations by approximately 29%
    - Reached 105-metre level at Corner Bay
    - Identified vertical continuity of high-grade mineralized zone at Copper
      Rand
    - Completed $3.54 million financing
    - Increased credit facility with Nuinsco Resources Limited to a maximum
      aggregate amount of $5.0 million


"The results for the second quarter show ongoing improvement," said Andre 
Fortier, Campbell's President and Chief Executive Officer. "Production 
continues to increase year-over-year and we are making steady progress in 
reducing our losses from operations. At Corner Bay, the 105-metre level was 
reached during the second quarter and some 10,000 tons of mineralized material 
were extracted. However, progress has been slower than expected because of 
operational and financial challenges. Copper production levels were down at 
Copper Rand during the second quarter, largely due to lower copper grade in the 
ore and to breakdowns to transportation equipment. From a financial 
perspective, working capital deficiencies have also made it more difficult for 
the Company to operate as effectively as possible. The reality is that these 
challenges will persist until positive cash flow is generated, which should 
occur in the fourth quarter of this year."

FINANCIAL RESULTS

As of January 1, 2007, results from the Copper Rand mine have been included in 
the consolidated operating results. Prior to this, Copper Rand mine was 
considered to be in the preproduction development stage and as such all costs, 
net of revenue from development ore, were deferred as mine development costs.
As of September 11, 2007, operations at Joe Mann mine ceased and the mine was 
put on care and maintenance. The Joe Mann mine was Campbell's principal gold-
mining operation.
In October 2007, the Company commenced production at Merrill Pit.
In the second quarter of 2008, Campbell operations produced 71,673 tons of ore 
yielding 1,434 ounces of gold and 1,780,718 pounds of copper. In the second 
quarter of 2007, 52,739 tons of ore were milled, yielding 4,921 ounces of gold 
and 1,044,197 pounds of copper.
For the first six months of fiscal 2008, Campbell operations produced 163,193 
tons of ore yielding 4,024 ounces of gold and 3,947,785 pounds of copper. In 
the first six months of fiscal 2007, 91,526 tons of ore were milled, yielding 
8,823 ounces of gold and 2,005,838 pounds of copper.
A total of 2,439 ounces of gold and 2,328,460 pounds of copper were sold in the 
second quarter of 2008 compared to 1,719 ounces of gold and Nil pounds of 
copper for the same period of 2007. The average market price for gold in the 
second quarter of 2008 was $905 (US$896) per ounce compared to $732(US$667) 
per ounce for the same period in 2007. The average market price for copper in 
the second quarter of 2008 was $3.87 (US $3.84). In the second quarter of 2008, 
the average sale price for gold was $903 per ounce compared to $723 in the same 
period of 2007. For copper, the average sale price was $3.70 per pound in the 
second quarter of 2008.
Net metal sales for the second quarter of 2008 reached $9.0 million compared to 
$1.4 million for the same period last year. For the first six months of fiscal 
2008, net metal sales totalled $9.7 million, compared to $3.1million in the 
corresponding period in 2007.
As per the contract for the sale of concentrate between Campbell and Ocean 
Partners UK Limited ("OP"), revenues for concentrate inventory shipped cannot 
be recognized until the transfer of ownership is completed when the concentrate 
is delivered to the discharge port. As at June 30, 2008, $7.1million of 
inventory valued at lowest of cost and net realizable value was stored at Port 
of Quebec. On this amount of inventory, provisional payments in the amount of 
$6.6 million were received from OP. The contract was amended in March 2008 to 
allow the Company to borrow money on concentrate to be shipped. As at June 30, 
2008, the credit facility was not used.
The loss from operations totalled $4.1 million in the second quarter of 2008, 
compared to $5.0 million loss in the prior period. For the first six months of 
2008, the loss from operations totalled $7.5 million, compared to a $10.6 
million loss from operations in the corresponding period in 2007, a reduction 
of approximately 29%.
For the second quarter of 2008, Campbell recorded a net loss of $4.1million or 
$0.01 per share, compared to a net loss of $4.3 million or $0.01 per for the 
same period in 2007. For the first six months, Campbell recorded a net loss of 
$6.2 million or $0.01 per share, compared to a net loss of $6.1million or 
$0.02 per share for the same period in 2007.

OPERATING PERFORMANCE

Copper Rand Mine

The Copper Rand mine started commercial production on January 1, 2007. 
Production at Copper Rand in the second quarter of 2008 was 37,303 tons grading 
0.040 Au oz/t (yielding 1,199 ounces of gold), 1.49% Cu (yielding 1,025,137 
pounds of copper) and 0.136 Ag oz/t (yielding 3,192 ounces of silver) with a 
recovery rate of 79.83% for gold, 91.97% for copper and 62.94% for silver. In 
the second quarter of 2007, production totalled 24,656 tons grading 0.048 Au 
oz/t (yielding 969 ounces of gold), 1.92% Cu (yielding 922,132 pounds of 
copper) and 0.15 Ag oz/t (yielding 2,209 ounces of silver) with a recovery rate 
of 82.17% for gold, 97.54% for copper and 59.61% for silver.
For the first six months of fiscal 2008, Copper Rand produced 84,028 tons of 
ore yielding 2,830,133 pounds of copper, 3,488 ounces of gold and 9,039ounces 
of silver, compared 46,699 tons of ore yielding 1,817,338 pounds of copper, 
1,852 ounces of gold and 4,559 ounces of silver in the first six months of 
fiscal 2007.
There are currently three production areas at Copper Rand, identified as "44-
4," "4850 depth extension" and "Lower H-2." Campbell has also identified the 
vertical continuity of higher-grade mineralized ore at the "Upper H-2" area 
which should be available by the end of 2008. Two additional areas are 
currently under evaluation ("52-5" at Shaft #6 and "level 1950" at Shaft #4). 
Those two additional sectors could provide ore feed to the Copper Rand mill in 
the second half of 2009. Campbell expects to be able to maintain current 
production levels at Copper Rand in the coming months.

Merrill Pit

The first tons of ore from Merrill pit were milled in October 2007. In the 
second quarter of 2008, a total of 24,375 tons of ore were milled, grading 
0.45% copper (198,814 pounds), 0.008 oz/t gold (144 ounces) and 0.087 oz/t 
silver (1,266 oz). The recovery rate was 90.26% for copper, 73.53% for gold and 
59.92% for silver. In the first six months of 2008, a total of 68,098 tons were 
milled, yielding 517,339 pounds of copper, 420 ounces of gold and 3,790ounces 
of silver. A major breakdown to the crusher occurred in early March and 
operations at the pit only resumed in late April. Operations at the Merrill pit 
were suspended in June as the term of the mining contractor's agreement had 
expired. Campbell is currently in discussions with a new contractor and hopes 
to resume operations at Merrill in the third quarter.

Corner Bay Development

In the second quarter of 2008, 9,995 tons of mineralized material were 
extracted from Corner Bay and subsequently milled at the Copper Rand mill. The 
material graded 3.07% copper (556,768 pounds), 0.012 oz/t gold (91 oz) and 
0.240 oz/t silver (1,640 oz). The recovery rate was 90.83% for copper, 79.05% 
for gold and 68.38% for silver.
During the second quarter of 2008, $4.3 million net of revenues was invested in 
the development of the project. Development to the 105 metre level was achieved.
At a 3% Cu cut-off, Corner Bay has measured and indicated resources of 446,000 
tonnes (Ref : Technical Report prepared by Geostat in July 2006, available on 
SEDAR at www.sedar.com).

Joe Mann Mine

Production at the Joe Mann mine ceased on September 11. In the second quarter 
of 2007, Joe Mann produced 28,083 tons of ore. The yield was 3,952ounces of 
gold, 122,065 pounds of copper and 2,670 ounces of silver. In the first six 
months of 2007, Joe Mann produced 6,971 ounces of gold, 188,500pounds of 
copper and 4,234 ounces of silver.
On August 1, 2008, Campbell ceased pumping underground water which will result 
in the flooding of the mine over time.

OUTLOOK

"The Company continues development for extraction of a bulk sample at Corner 
Bay. Further, we are working to improve the efficiency of the Copper Rand mine 
and to achieve positive cash flow by year end. Revenues for fiscal 2008 should 
be substantially higher than those realized in 2007 and we expect to be able to 
meet the commitments related to the Plan of Arrangement for Meston Resources 
Inc. in the coming months," Mr. Fortier said.

CONFERENCE CALL

Campbell Resources will hold a conference call on Wednesday, August 6, 2008 at 
4 P.M (Eastern Time) to discuss this announcement.
Interested parties can join the call by dialling 1-800-587-1892.

About Campbell Resources

Campbell Resources Inc. concentrates on the development and exploitation of 
copper and gold mining properties in the Chibougamau region of Quebec. The 
geographical grouping of its operations allows Campbell to realize economies of 
scale and to focus development within access to existing infrastructures. 
Campbell's main operations include the Copper Rand and Merrill mines, the 
Corner Bay property and the Copper Rand mill. Campbell's headquarters are 
located in Montreal, Quebec.

Certain information contained in this release may contain "Forward-Looking 
Statements" within the meaning of the Private Securities Litigation Reform Act 
of 1995 and is subject to certain risks, assumptions 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, 2007, which may cause 
actual future results to differ materially from those expressed or implied in 
any forward-looking statement. 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 and copper prices which affect the profitability 
and mineral reserves and resources of Campbell. The key assumptions underlying 
the forward-looking statements contained in this release are that the gold and 
copper prices remain equal to or above the prices disclosed herein. Readers are 
cautioned not to place undue reliance on these forward-looking statements, 
which speak only as of the date hereof. Forward-looking statements are 
expressly qualified in their entirety by this cautionary statement.
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    (Expressed in thousands of Canadian dollars)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                         June 30 December 31
                                                            2008        2007
    -------------------------------------------------------------------------
                                                               $           $
    Assets
    Current assets
      Cash                                                     2         474
      Restricted cash                                      1,113       1,113
      Short-term investments                                  31          33
      Receivables                                          1,683       3,066
      Settlements receivable                               1,232         739
      Concentrate and metal inventories                    7,428       1,218
      Supply inventories                                   2,569       2,882
      Prepaids                                               706         408
    -------------------------------------------------------------------------
                                                          14,764       9,933
    Amount receivable from Copper Rand/Portage
     Restoration Fiduciary Trust                           3,116       3,028
    Restricted cash                                        1,158       1,158
    Future income tax assets                               1,338       1,317
    Property, plant and equipment                         52,560      45,017
    Accrued benefit asset                                  5,054       4,897
    -------------------------------------------------------------------------
                                                          77,990      65,350
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    Current liabilities
      Short-term loan                                      4,343       1,996
      Accounts payable                                    19,225      15,411
      Accrued liabilities                                  9,329       5,954
      Prepayments for concentrate                          6,628         965
      Current portion of long-term debt                   18,453      18,337
    -------------------------------------------------------------------------
                                                          57,978      42,663
    Asset retirement obligations                           7,610       7,396
    Long-term debt                                         3,187       2,688
    Future income and mining tax liabilities               6,661       6,472
    -------------------------------------------------------------------------
                                                          75,436      59,219
    -------------------------------------------------------------------------
    Shareholders' equity
      Capital stock                                       98,812      96,639
      Warrants, stock options and conversion rights        7,541       9,432
      Contributed surplus                                  6,421       4,109
      Deficit                                           (110,209)   (104,040)
      Accumulated other comprehensive loss                   (11)         (9)
    -------------------------------------------------------------------------
                                                        (110,220)   (104,049)
    -------------------------------------------------------------------------
                                                           2,554       6,131
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          77,990      65,350
    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
    (Expressed in thousands of Canadian dollars except per share amounts)
    -------------------------------------------------------------------------
                                  Three months ended        Six months ended
                                         June 30                 June 30
                                    2008        2007        2008        2007
    -------------------------------------------------------------------------
                                                               $           $
    Gross metal sales             10,755       1,482      11,481       3,196
    Treatment charges              1,754          52       1,758          70
    -------------------------------------------------------------------------
    Net metal sales                9,001       1,430       9,723       3,126
    -------------------------------------------------------------------------
    Expenses
      Cost of sales               10,648       4,772      11,340       9,963
      Depreciation and
       amortization                  911         577       2,036       1,389
      General administration         825         628       1,493       1,362
      Warrants issued as fee
       for short-term financial
       arrangement                     -           -         427           -
      Reorganisation and CCAA
       costs                          34         102          34         207
      Care and maintenance           318          34         902          76
    -------------------------------------------------------------------------
                                  12,736       6,113      16,232      12,997
    -------------------------------------------------------------------------
    Loss before the following
     items                        (3,735)     (4,683)     (6,509)     (9,871)
    Interest expense on
     short-term loan                 (78)        (86)       (202)       (161)
    Interest and financial
     expenses on long-term debt     (317)       (288)       (792)       (568)
    Interest income                    5          20          19          28
    -------------------------------------------------------------------------
    Loss from operations          (4,125)     (5,037)     (7,484)    (10,572)
    Other income (expense)
      Other (expense) income           1         696        (307)      4,486
    -------------------------------------------------------------------------
    Loss before taxes             (4,124)     (4,341)     (7,791)     (6,086)
    Income and mining taxes            -           -       1,622           -
    -------------------------------------------------------------------------
    Net loss                      (4,124)     (4,341)     (6,169)     (6,086)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number
     of common shares ('000)     446,445     396,829     439,525     372,925
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Loss per share undiluted
     and diluted                   (0.01)      (0.01)      (0.01)      (0.02)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENTS OF CONTRIBUTED SURPLUS AND DEFICIT (UNAUDITED)
    (Expressed in thousands of Canadian dollars)
    -------------------------------------------------------------------------
                                  Three months ended        Six months ended
                                         June 30                 June 30
                                    2008        2007        2008        2007
    -------------------------------------------------------------------------
                                                               $           $
    Contributed surplus
    Balance, beginning of period   4,191       3,991       4,109       1,996
    Stock options expired and
     cancelled                        44           -          69           -
    Warrants expired               2,186           -       2,243       1,995
    -------------------------------------------------------------------------
    Balance, end of period         6,421       3,991       6,421       3,991
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Deficit
    Balance, beginning of
     period                      106,085      86,797     104,040      84,825
    Net loss                       4,124       4,341       6,169       6,086
    -------------------------------------------------------------------------
    Balance, end of period       110,209      91,138     110,209      91,138
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (Expressed in thousands of Canadian dollars)
    -------------------------------------------------------------------------
                                  Three months ended      Three months ended
                                         June 30                 June 30
                                    2008        2007        2008        2007
    -------------------------------------------------------------------------
                                                               $           $
    Net Loss                       4,124       4,341       6,169       6,086
    Other comprehensive income,
     net of income tax:
      Unrealized losses (gain)
       on available-for-sale
       investments arising
       during the period              (1)         50           2          79
    -------------------------------------------------------------------------
    Comprehensive loss             4,123       4,391       6,171       6,165
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------





SOURCE  CAMPBELL RESOURCES INC. 
CONTACT:
Campbell Resources Inc.: Andre Fortier, President and Chief Executive Officer, 
(514) 875-9037, Fax: (514) 875-9764, afortier@campbellresources.com; Alain 
Blais, Vice-president and General Manager of Operations, (418) 748-7691, Fax: 
(418) 748-7696, ablais@campbellresources.com; Renmark Financial Communications 
Inc.: Henri Perron: hperron@renmarkfinancial.com; Eric St-Pierre: 
estpierre@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717, 
www.renmarkfinancial.com
-0- Aug/06/2008 13:30 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.