Toronto – March 26, 2004
Tahera Corporation continues to make excellent progress with respect to development of its wholly-owned Jericho Diamond Project as Nunavut’s first diamond mine.
Development
Tahera is targeting completion of both permitting and project financing initiatives during 2004, and plans to advance the Jericho Diamond Project to commercial production as quickly as possible. When in production, Tahera will be one of only two Canadian public companies with production from a Canadian diamond source and unique in owning 100% of its mine.
Tahera and the Kitikmeot Inuit Association (KIA) reached an agreement in principle with respect to an Inuit Impact Benefit Agreement (IIBA) for the Jericho Diamond Project in December 2003. The IIBA outlines the benefits that will be provided to Inuit as a result of development and operation of the Jericho Diamond Mine. Tahera and the KIA expect to formally sign the agreement at a ceremony in Nunavut in the near future.
In January 2004, Tahera participated in the Final Public Hearing for the Jericho Diamond Project, and in February 2004, the Nunavut Impact Review Board (NIRB) recommended approval of the Jericho Diamond Project. Concluding both the IIBA agreement and the NIRB review process represent two very significant milestones of the mine development process in Nunavut.
During the second quarter of 2004, Tahera anticipates a decision from the Minister of Indian and Northern Affairs Canada with respect to approval of the Jericho Diamond Project. Tahera remains optimistic that it will achieve its goal of concluding the permitting process for the Jericho Diamond Project during the third quarter of 2004.
Exploration
During the Jericho Mine development phase, Tahera will continue to be an active diamond explorer, as previous exploration activities indicate that the Company’s properties have high potential for further kimberlite discoveries.
Tahera’s exploration budget for 2004 is approximately $2.5 million, and both spring and summer exploration programs are planned. The programs will focus on the discovery of additional kimberlites on the Company’s Jericho Group, Rockinghorse Group, and Hood River Group. Tahera will also continue to pursue new Canadian diamond exploration opportunities. Tahera may increase the 2004 exploration budget to follow up on encouraging results returned during the programs.
Jericho Group
The recently discovered diamondiferous kimberlite dyke, situated approximately nine kilometres south of the Jericho pipe, will be evaluated during 2004 to determine its extent and economic potential. Several unresolved kimberlite indicator mineral trains that occur in close proximity to the Jericho pipe will also be explored in an effort to discover additional kimberlites. The spring program will include geophysical surveys and drilling of prospective kimberlite targets on the Jericho Group. Tahera’s Jericho Group exploration programs are intended to identify new economically viable kimberlites which would provide additional feed to the Jericho plant and thereby extend the mine life.
Anuri Kimberlite
Tahera is the operator of the Rockinghorse Group joint venture, located approximately 100 kilometres northwest of the Company’s Jericho Diamond Project. The significantly diamondiferous Anuri kimberlite is situated near the centre of the property. Subject to finalizing a joint venture amending agreement, Tahera will hold a 100% interest in the Rockinghorse Group except for the claim which hosts the Anuri kimberlite. This claim will be held jointly by Tahera (75% interest) and Kennecott Canada Exploration Inc. (25% interest).
Tahera plans to conduct a comprehensive exploration campaign on the property during the summer of 2004. Further evaluation of the Anuri kimberlite is planned, and kimberlite drill targets within close proximity to the Anuri kimberlite will be developed and tested. Tahera considers the property to be very prospective for further discoveries.
Corporate
Further to a press release dated October 24, 2003, Tahera has finalized a review of its exploration assets, and concluded that the carrying value of certain non-core exploration properties should be reduced. The review concluded that the carrying value of the ICE Claims and the Contwoyto Group should be written down for accounting purposes by approximately $18.5 million. Although Tahera has no immediate exploration activities planned on these non-core properties, future exploration programs may be conducted on these claims. Alternatively, the Company may elect to enter into joint venture agreements with respect to these claims.
Tahera is well financed with a current cash balance of approximately $13.75 million cash on hand following the completion of an $8 million equity financing in November 2003, and the recent exercise of approximately $8 million in warrants and options. Tahera is now free of any long-term debt following the conversion of a $2.8 million secured convertible debenture in March 2004.
The world rough diamond markets are robust, as evidenced by several rough diamond price increases by the Diamond Trading Company over the past twelve months. Tahera remains highly focused and is well positioned to capitalize on the strong rough diamond markets as it advances the Jericho Diamond Project to commercial production.
2003 Year-End Results
Tahera Corporation recorded a loss of $20,612,000 ($0.06 per share) for the year ended December 31, 2003, which compares with a loss of $4,863,000 for the year ended December 31, 2002 ($0.02 per share). Operating expenses increased moderately to $2,403,000 for the year ended December 31, 2003 compared to $2,197,000 for the year ended December 31, 2002. The net loss for 2003 included a write down of exploration and development projects of $18,449,000 compared with similar charges of $2,544,000 in 2002. Expenditures on exploration and development projects increased in 2003 to $3,101,000 compared to $874,000 in 2002. At December 31, 2003, Tahera’s cash balance was $13,595,000.
Financial Statement Highlights (in thousands of Canadian dollars, except for per share data):
2003 2002
Current Assets $ 13,741 $ 2,168
Capital and Other Assets 45,653 60,988
$ 59,394 $ 63,156
Current Liabilities $ 3,363 $ 599
Long-term Liabilities - 2,817
Share Capital 98,786 82,468
Contributed Surplus 585 -
Deficit (43,340) (22,728)
$ 59,394 $ 63,156
Operating Expenses $ (2,403) $ (2,197)
Other Items (18,079) (2,516)
Loss for the Year before Income Taxes (20,482) (4,713)
Income Taxes (130) (150)
Net Loss for the Year $ (20,612) $ (4,863)
Loss per Share – Basic and Diluted $ (0.06) $ (0.02)
Cash Flows From (Used In):
Operating Activities $ (1,469) $ (1,766)
Investing Activities (3,049) (881)
Financing Activities 16,171 3,441
Net Increase (Decrease) in Cash 11,653 794
Cash – Beginning of Year 1,942 1,148
Cash – End of Year $ 13,595 $ 1,942
Please refer to Tahera’s website (www.tahera.com) to view the complete audited financial report for the twelve months ended December 31, 2003.
On Behalf of the Board,
R. Peter Gillin
Chairman and CEO
Tahera Corporation
Grant Ewing – Executive Vice President
For further information:
Investor Relations
Tel: (416) 777-1998 Fax: (416) 777-1898 Toll free: (877) 777-2004
Email: investor_relations@tahera.com
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