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Claude Resources Inc. Reports 2012 Net Profit of $5.6 Million



        Claude Resources Inc. Reports 2012 Net Profit of $5.6 Million

PR Newswire

SASKATOON, March 28, 2013

Trading Symbols
TSX - CRJ
NYSE MKT - CGR

SASKATOON, March 28, 2013 /PRNewswire/ - Claude Resources Inc. ("Claude" and
or the "Company") today reported its 2012 operating and financial results. All
dollar amounts are in Canadian dollars unless stated otherwise.

2012 Highlights:

  * Net profit of $5.6 million, or $0.03 per share, after a $3.0 million, or
    $0.02 per share, non-cash deferred income tax expense.

  * Cash flow from operations before net changes in non-cash operating working
    capital ^(1) of $25.8 million, or $0.15 per share.

  * Cash cost per ounce of gold ^(2) were $997 (U.S. $998).

  * Generated $80.8 million in revenue from gold sales of 48,672 ounces at an
    average price of $1,660 (U.S. $1,661).

  * Achieved record mill throughput of 275,235 tonnes at 5.86 grams per tonne
    in 2012, resulting in gold production of 49,570 ounces.

  * Mineral Reserves ^(3) grade increased by 14 percent while total ounces
    decreased by 13 percent or 44,500 ounces after mining 49,570 ounces. The
    Measured and Indicated Resources ^ (3) grade and ounces increased
    significantly to 7.82 grams per tonne from 5.35 grams per tonne and to
    344,200 ounces from 70,700 ounces of gold, respectively.

  * The Seabee Mine shaft extension project was completed in January of 2013.
    The reduction of trucking distance and ore handling is anticipated to
    result in lower diesel consumption, reduced maintenance costs and improved
    ventilation. Overall, Seabee Deep and L62 mining costs are expected to be
    reduced as a result of the shaft extension.

  * Completed the St. Eugene Mining acquisition resulting in 100 percent
    ownership of the Amisk Gold Project.

  * Expanded debt facilities with Canadian Western Bank and signed a
    non-binding agreement with Crown Capital Partners for a debt facility of
    $25 million that is expected to close early in the second quarter.

  * Surpassed one million ounces of total production at the Seabee Gold
    Operation.

CEO COMMENTARY

"Production  grew  steadily  during  2012  with  excellent  third  and  fourth 
quarters. Based on our new Life of  Mine Plan we expect to see our  production 
continue to grow and unit cash costs  to decrease in 2013 and beyond,"  stated 
Neil McMillan, President and Chief Executive Officer. "In 2013, we will  focus 
on projects that will enable the Company  to grow its cash flow and  earnings. 
In addition,  the Company  is  taking aggressive  steps to  improve  operating 
efficiencies while growing our production  profile and expanding our  margins. 
We have  an  outstanding  workforce  and an  excellent  asset  base  to  build 
shareholder value going forward."

FINANCIALS

A copy of Claude's 2012  Annual Management's Discussion and Analysis,  Audited 
Financial   Statements    and    Notes    thereto    can    be    viewed    at 
www.clauderesources.com.

 
Table 1: Highlights of Financial Results of Operations
                                      Three months ended   Twelve months ended
                                      Dec. 31    Dec. 31   Dec. 31     Dec.31
                                        2012      2011       2012       2011
                                                                              
Revenue (000's)                     $   21,243 $  19,895 $   80,808  $  69,659
Divided by ounces sold                  12,732    11,855     48,672     44,632
Average realized price per ounce    $    1,668 $   1,680 $    1,660  $   1,561
                                                                              
Production costs (000's)            $   10,465 $  13,399 $   48,535  $  40,542
Divided by ounces sold                  12,732    11,855     48,672     44,632
Total cash costs per ounce ^(2)     $      822 $   1,113 $      997  $     908
                                                                              
Net cash margin per ounce sold ^(2) $      846 $     567 $      663  $     653
                                                                              
Depreciation and depletion (000's)  $    4,357 $   3,944 $   15,681  $  11,407
Gross profit (000's)                $    6,421 $   2,552 $   16,592  $  17,710
Net profit (000's)                  $    2,423 $   (202) $    5,569  $   9,454
Earnings per share (basic and       $     0.01 $    0.00 $     0.03  $    0.06
diluted)

Gold revenue  from the  Company's Seabee  Gold Operation  for the  year  ended 
December 31,  2012  increased  16  percent to  $80.8  million  (2011  -  $69.7 
million).

The increase  in  gold revenue  in  2012 was  attributable  to a  six  percent 
improvement in  Canadian dollar  gold  prices realized  (2012 -  $1,660  (U.S. 
$1,661); 2011 - $1,561 (U.S.  $1,578)) and by an  increase of nine percent  in 
gold sales volume (2012 - 48,672 ounces; 2011 - 44,632 ounces).

Net profit of $5.6 million, or $0.03 per share, after a $3.0 million, or $0.02
per share, non-cash deferred income tax expense (2011 - $9.5 million, or $0.06
per share).

Cash flow from  operations before  net changes in  non-cash operating  working 
capital ^(1) for  2012 was $25.8  million, or  $0.15 per share  (2011 -  $22.2 
million, or $0.14 per share).

For the year ended December 31,  2012, mine production costs of $48.5  million 
(2011 - $40.5 million) were 20 percent higher year over year.  Total  Canadian 
dollar cash cost per ounce of gold ^(2) for 2012 increased 10 percent to  $997 
(U.S. $998) per ounce from $908 (U.S. $918) in 2011, primarily as a result  of 
the higher  direct mining  costs, including  labour, energy,  maintenance  and 
consumable costs, year over year.   The Company is aggressively taking  action 
to lower its costs.

OPERATIONS

During 2012, the Company  milled 275,235 tonnes  at a grade  of 5.86 grams  of 
gold per tonne (2011  - 257,181 tonnes at  a grade of 5.68  grams of gold  per 
tonne). The increase in tonnes milled for the year ended December 31, 2012 was
due to  increased mining  activity at  Santoy 8  offset by  fewer tonnes  from 
Seabee, a function  of the Company's  Life of Mine  Plan, mine sequencing  and 
development schedules.

         

                                                                          
Table 2: Seabee Gold Operation Production Statistics                      
                                      Three    Three    Twelve    Twelve  
                                     Months   Months    Months    Months
                                      Ended    Ended     Ended     Ended
                                    Dec. 31  Dec. 31   Dec. 31   Dec. 31
                                       2012     2011      2012      2011  
Operating Data                                                            
Tonnes Milled                        69,698   74,456   275,235   257,181  
Head Grade (grams per tonne)           5.94     4.97      5.86      5.68  
Recovery (%)                           95.9     94.7      95.6      95.3  
Gold Produced (ounces)               12,757   11,269    49,570    44,756  
Gold Sold (ounces) ^                 12,731   11,855    48,672    44,632

EXPLORATION

Mineral Reserves and Mineral Resources:
At December 31, 2012, the Mineral Reserves ^(3) grade increased by 14  percent 
while total  ounces decreased  by 13  percent or  44,500 ounces  after  mining 
49,570 ounces. The  Measured and  Indicated Resource  ^ (3)  ounces and  grade 
increased significantly to  344,200 from  70,700 ounces  of gold  and to  7.82 
grams per  tonne from  5.35  grams per  tonne,  respectively. The  Santoy  Gap 
deposit is currently under analysis  to be included in  the Life of Mine  Plan 
and upon completion  the Company expects  that more ounces  will be  converted 
into Reserves once  it is complete  in 2013.  A copy of  the detailed  Mineral 
Reserves and Mineral Resources table can be viewed in the Company's Management
Discussion and Analysis at www.clauderesources.com.

The Company's Mineral Reserves and Mineral Resources at the Amisk Gold Project
and the Madsen Gold Project were unchanged from 2011.

Seabee Gold Operation:
Approximately  41,000  metres  of  regional  drilling  and  60,000  metres  of 
underground drilling were completed during  2012.  The Company's focus was  on 
the L62 Zone and on the Santoy Gap deposit at the Santoy Mine Complex.

Exploration on the Santoy Gap deposit  at the Santoy Mine Complex was  ongoing 
with one  rig  performing infill  and  step-out drilling  which  extended  the 
mineralized system down-dip to 650 metres depth and along strike to the  south 
toward the Santoy 8 deposit.

Amisk Gold Project:
The 2012 regional exploration program  at Amisk, which included  approximately 
2,600 metres of drilling, investigated a number of high-priority targets, some
of which  warrant further  testing  in 2013.  Advancement of  the  Preliminary 
Economic Assessment (PEA) of the Amisk Gold Project will be a priority  during 
2013.

Madsen:
Exploration at  Madsen  during 2012  included  two underground  rigs  and  one 
surface rig which completed 19,000 metres of drilling.  Testing focused on the
8 Zone  Trend  as well  as  the McVeigh  and  Austin Tuff  depth  continuity.  
Encouraging results were returned from the 2012 program, extending the 8  Zone 
system at depth and confirming conceptual potential beneath the Austin Tuff.

OUTLOOK

Operating and Financial:
For 2013, forecast gold production at  the Seabee Gold Operation is  estimated 
to range from 50,000  ounces to 54,000 ounces  (approximately 60 percent  from 
Seabee and 40 percent from the Santoy Mine Complex).  Unit costs for 2013  are 
estimated to improve modestly  from 2012 unit cash  costs of $997 per  ounce.  
During the first  quarter, the  Company expects  production to  be lower  than 
budgeted due to mine  sequencing, lower grade and  fewer tonnes being  milled. 
However, the  Company  remains  confident  that it  will  achieve  its  annual 
production guidance.

At current  gold  prices and  forecast  production, Management  believes  that 
operating  cash  flows,  in  addition  to  the  increased  credit   facilities 
negotiated during the first  quarter of 2013, will  be sufficient to fund  the 
2013 Winter Ice Road resupply  requirements and further develop  opportunities 
at the  Seabee  Gold Operation.  With  respect to  the  Company's  outstanding 
debentures that mature in May of  2013, the Company believes that the  closing 
of the debt financing  with Crown Capital Partners  announced in January  2013 
will provide sufficient funding for the redemption.

Capital:
Capital expenditures at  the Seabee  Gold Operation  in 2013  are expected  to 
decrease 25 percent year over year to approximately $31.9 million, funded from
a combination of cash on hand, operating cash flow and debt.

 
Table 3: Estimate of 2013 Capital Expenditures (in millions)
Capital                                                 2013
               Development                      $       16.7
               Sustaining capital                        9.0
               Expansion capital                         6.2
                                                $       31.9

Exploration:
In 2013, the Company's $2.7 million  exploration program will focus mainly  on 
low finding cost per ounce targets,  proximal to infrastructure at the  Seabee 
Gold Operation.

At the Amisk Gold Project, Claude  will update its National Instrument  43-101 
resource calculation in conjunction with the completion of the PEA.

At Madsen,  the  2013 operating  costs  are  estimated to  be  $2.2  million.  
Contingent on results of the  internal scoping analysis, the operating  budget 
will be re-evaluated.

CONFERENCE CALL AND WEBCAST 

We invite you to  join our Conference  Call and Webcast on  March 28, 2013  at 
10:00 AM Eastern Standard Time.

To  participate  in  the  conference   call  please  dial  1-647-427-7450   or 
1-888-231-8191.  A replay will  be available until April  4, 2013 at 11:59  PM 
Eastern Standard  Time by  calling 1-855-859-2056  and entering  the  password 
23067288.

To view and listen  to the webcast  please use the following  URL in your  web 
browser:

http://www.newswire.ca/en/webcast/detail/1128159/1230545.

Claude Resources  Inc. is  a gold  producer  with shares  listed on  both  the 
Toronto Stock Exchange (TSX-CRJ) and the NYSE MKT (NYSE MKT-CGR). The  Company 
is also engaged in  the exploration and development  of gold mineral  reserves 
and  mineral  resources.  The  Company's  entire  asset  base  is  located  in 
Canada. Its main revenue generating asset is the 100 percent owned Seabee Gold
Project, located in  northern Saskatchewan.  Since 1991,  Claude has  produced 
over 1,023,000 ounces of gold from  the Seabee Gold Project. Claude also  owns 
100 percent of  the Madsen  property near Red  Lake, Ontario  and 100  percent 
interest in the Amisk Gold Property in northeastern Saskatchewan.

QUALIFIED PERSONS

Brian Skanderbeg, P.Geo.,  Senior Vice President  and Chief Operating  Officer 
and Peter Longo, P.Eng., Vice  President, Operations, Qualified Persons,  have 
reviewed the contents of this news release for accuracy.

Footnotes

                See description and reconciliation of this performance measure
    ^(1)        in the "Other Performance Measures" section of the Company's
                MD&A.
                 
                See description and reconciliation of non-IFRS performance
    ^(2)        measures in the "Non-IFRS Performance Measures and
                Reconciliations" section of the Company's MD&A.
                 
                See description and footnotes of the Seabee Gold Operation
    ^(3)        Mineral Reserves and Mineral Resources in the "Mineral
                Reserves and Mineral Resources" section of the Company's MD&A.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

All statements,  other  than  statements  of  historical  fact,  contained  or 
incorporated by  reference in  this news  release constitute  "forward-looking 
information" within the  meaning of  applicable Canadian  securities laws  and 
"forward-looking statements" within the meaning  of the United States  Private 
Securities  Litigation   Reform   Act  of   1995   (referred  to   herein   as 
"forward-looking statements").   Forward-looking statements  include, but  are 
not limited  to, statements  with respect  to the  future price  of gold,  the 
estimation of  mineral  reserves and  resources,  the realization  of  mineral 
reserve estimates, the timing and amount of estimated future production, costs
of production, capital expenditures,  costs and timing  of the development  of 
new deposits,  success  of  exploration  activities,  permitting  time  lines, 
currency exchange  rate  fluctuations, requirements  for  additional  capital, 
government regulation of mining operations, environmental risks, unanticipated
reclamation expenses, title  disputes or claims  and limitations on  insurance 
coverage.  Generally, these  forward-looking statements can  be identified  by 
the use of forward-looking terminology such as "plans", "expects" or "does not
expect",  "is  expected",  "budget",  "scheduled",  "estimates",  "forecasts", 
"intends", "anticipates"  or  "does  not anticipate"  or  "believes",  or  the 
negative connotation thereof or variations of such words and phrases or  state 
that certain actions, events or  results, "may", "could", "would", "might"  or 
"will be taken", "occur" or "be achieved" or the negative connotation thereof.

All forward-looking statements  are based on  various assumptions,  including, 
without limitation, the  expectations and beliefs  of management, the  assumed 
long-term price of gold,  that the Company will  receive required permits  and 
access to surface rights, that  the Company can access financing,  appropriate 
equipment and sufficient  labour, and  that the  political environment  within 
Canada will continue to support the development of mining projects in Canada.

Forward-looking statements in  this news release  are made as  of the date  of 
this news  release, being  March 28,  2013 and,  accordingly, are  subject  to 
change after  such  date.  Except  as  otherwise indicated  by  Claude,  these 
statements do not reflect the potential  impact of any non-recurring or  other 
special  items  that  may  occur  after  the  date  hereof.    Forward-looking 
statements are  provided  for  the  purpose  of  providing  information  about 
management's current expectations and plans and allowing investors and  others 
to get a better understanding of our operating environment.

Claude does not undertake  to update any  forward-looking statements that  are 
incorporated  by  reference  herein,  except  in  accordance  with  applicable 
securities laws.

CAUTIONARY NOTE TO US INVESTORS CONCERNING RESOURCES ESTIMATES

The resource  estimates in  this  document were  prepared in  accordance  with 
National Instrument 43-101, adopted by the Canadian Securities Administrators.
The requirements of National Instrument  43-101 differ significantly from  the 
requirements of  the United  States Securities  and Exchange  Commission  (the 
"SEC"). In  this  document,  we  use the  terms  "measured,"  "indicated"  and 
"inferred" resources.  Although these  terms are  recognized and  required  in 
Canada, the  SEC  does  not  recognize  them.  The  SEC  permits  U.S.  mining 
companies, in  their filings  with the  SEC, to  disclose only  those  mineral 
deposits  that   constitute  "reserves".   Under  United   States   standards, 
mineralization may not be classified as a reserve unless the determination has
been made that the mineralization could be economically and legally  extracted 
at the time  the determination  is made.  United States  investors should  not 
assume that all or any portion of  a measured or indicated resource will  ever 
be converted  into  "reserves." Further,  "inferred  resources" have  a  great 
amount of uncertainty  as to  their existence and  whether they  can be  mined 
economically or legally, and  United States investors  should not assume  that 
"inferred resources" exist or  can be legally or  economically mined, or  that 
they will ever be upgraded to a higher category.

A copy of Claude's 2012  Annual Management's Discussion and Analysis,  Audited 
Financial   Statements    and    Notes    thereto    can    be    viewed    at 
www.clauderesources.com.  Further  information  relating to  Claude  Resources 
Inc. has been filed on SEDAR and  EDGAR and may be viewed at www.sedar.com  or 
www.sec.gov/. 

 

SOURCE CLAUDE RESOURCES INC.

Contact:

Neil McMillan, President & CEO
Phone: (306) 668-7505
or
Marc Lepage, Manager, Investor Relations
Phone: (306) 668-7505
Email: ir@clauderesources.com
Website: www.clauderesources.com
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