Malaga Announces its Q3 Results

Malaga Announces its Q3 Results 
MONTREAL, QUEBEC -- (Marketwire) -- 11/15/12 -- Malaga Inc. ("MLG")
(TSX:MLG)(OTCQX:MLGAF) reports its financial results today for the
third quarter ended September 30, 2012. The management discussion and
analysis and unaudited interim financial statements can be found on
the Company's website ( ) and on SEDAR (
All amounts are in US dollars unless otherwise indicated.  
Financial Results 
For the third quarter of 2012, sales amounted to $3.1M ($4.6M in
Q3-2011). The 32% decrease is mainly caused by a 31% decrease in
tungsten revenues as a result of a 19% decrease in sales volume
(10,252 MTU in Q3-2012 compared to 12,697 MTU in Q3-2011)and a 19%
decrease in the average APT selling price ($368/MTU in Q3-2012
compared to $454/MTU in Q3-2011. In addition, there were no copper
sales during the quarter. 
The Company incurred a net loss of $0.9M for the third quarter
compared to a net income of $2.0M in Q3-2011. The main driver
explaining the net loss was the production shortfall in Q3-2012 which
resulted in lower sales volume and a 32% increase in the average cash
cost of production, as well as the fact that there were no copper
sales in the quarter.  
Year-to-date, total sales amounted to $11.7M ($15.2M for the same
period in 2011). The 23% decrease in total sales includes a 20%
decrease in tungsten revenues as a result of a 26% decrease in sales
volume (34,183 MTU compared to 46,394 MTU in 2011), and a 5% decrease
in the average APT selling price ($396 in 2012 compared to $418 in
2011). Production was down for the nine-month period ended September
30, 2012 compared to same period last year (34,382 MTU in 2012
compared to 43,868 MTU in 2011) which resulted in a $47 increase in
the average cash cost of production ($210/MTU in 2012 compared to
$163/MTU in 2011). 
The Company's production shortfall resulted in reduced sales that led
to an increase in the working capital deficit to $4,195,526
($1,545,235 as at December 31, 2011), and a reduction of cash on hand
to $53,364 ($530,885 as at December 31, 2011).  
Key Financial Data: 

                                         For the three-       For the nine- 
                                          month periods       month periods 
                                        ended September     ended September 
                                                    30,                 30, 
(in $'000)                                2012     2011       2012     2011 
                                      ------------------  ------------------
                                      ------------------  ------------------
Sales                                    3,137    4,644     11,702   15,230 
Cost of sales (including depreciation                                       
 and depletion)                         (2,818)  (3,058)    (8,876)  (9,784)
Depreciation and depletion                 462      562      1,463    1,837 
Income from mining activities              319    1,586      2,825    5,446 
General and administrative expenses       (739)    (853)    (2,583)  (2,998)
Net income (loss)                         (883)   1,980       (601)   4,423 
Adjusted net income (loss)                (883)     632       (619)   1,907 
EBITDA                                    (116)   1,344      1,261    4,183 
Earnings (loss) per share basic and                                         
 diluted                                ($0.00)   $0.01     ($0.00)   $0.02 
Cash cost of production per MTU           $234     $178       $210     $163 
Production in MTU                        9,826   13,302     34,382   43,868 

The Company announces the resignation of Dino Fuoco from the Board of
Directors as he has accepted a new full time position. To replace Mr.
Fuoco, Benoit Alain was appointed to the Board of Directors and will
also be a member of the Audit Committee. Mr. Alain has 25 years of
international experience in management, business development and
finance in the resources and manufacturing industries. Most recently
Mr. Alain spent nine years with the ArcelorMittal group, the world
leader in steel production, in various senior roles within the
finance and marketing function. Mr. Alain has been a member of the
Chartered Institute of Canadian Accountants since 1989. 
This news release contains certain forward-looking statements or
forward looking-information. These forward looking statements are
subject to a variety of risks and uncertainties beyond the
Corporation's ability to control or predict which could cause actual
events or results to differ materially from those anticipated in such
forward looking statements. Such risks and uncertainties are
disclosed under the heading "Risk Factors" in the Corporation's
Annual Information Form for the year ended December 31, 2011 and
dated March 27, 2012. Further, forward-looking information is in
addition based on various assumptions, including, without limitation,
the expectation and beliefs of management, the assumed long term
price of tungsten, that the Pasto Bueno property is a technical
viable and economic operation and that the Corporation can access
financing. Should one or more of these risks and uncertainties
materialize, or should the underlying assumption prove incorrect or
different, actual results may vary materially from those described in
the forward-looking statements. The information provided reflects
management's current expectations regarding future events and
performance as of the date of this news release. Accordingly, readers
should not place undue reliance on forward-looking statements.
Pierre Monet
President & CEO
Malaga Inc.
514 288-3224 
Nicole Blanchard
Corporate Strategy and Investor Relations
Sun International Communications
450 973-6600
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