White Tiger Announces Filing of 2012 Year-End Financial Statements, Md&a and Aif, Revision of Medium Term Production Target and Update on Vtb Facility

TORONTO, March 28, 2013 /CNW/ - White Tiger Gold Ltd. ("White Tiger" or the "Company") (TSX: WTG) announced the filing of its annual audited financial statements ("Financial Statements"), management's discussion and analysis ("MD&A") and annual information form ("AIF") for the Company's financial year ended December 31, 2012 as required by National Instrument 51-102 -Continuous Disclosure Obligations. All figures are quoted in Canadian dollars unless otherwise indicated.

Commenting on the year-end financial results, Jim McBurney, CEO of White Tiger, said "While the Company is disappointed with the operating results in what was a challenging year, our financial performance has materially improved as we have re-focused on Russian asset base.  With the on-going discussions with VTB Capital plc ("VTB") and the delay in funding from the VTB Facility we are re-assessing our development strategy and have lowered our medium term production target to 50,000 ounces per annum and will provide revised guidance as soon as possible."

Highlights for 2012 Include:

• Operating profit from continuing operations of $ 3.7 million compared to an operating loss from continuing operations of $6.1 million;

• Net loss from continuing operations of $7.2 million compared to a net loss from continuing operations of $8.9 million for 2011;

• Revenue of $31.1 million compared to revenue of $27.7 million in the corresponding period last year;

• Gross profit from continuing operations of $17.3 million compared to a gross profit from continuing operations of $11.7 million for 2011;

• Gold production of 18,262 ounces compared to 18,508 ounces for FY2011; and

• Cash cost per ounce sold for the year ended December 31, 2012 of $605 compared to $774 for the year ended December 31, 2011.

Financial Results for the Year December 31, 2012

The Company reported an operating profit from continuing operations of $3,741,000 for the twelve months ended December 31, 2012 compared with an operating loss from continuing operations of $6,190,000 for the twelve months ended December 31, 2011. Gross profit from continuing operations for the twelve months ended December 31, 2012 increased to $17,279,000 from $11,713,000 for the twelve months ended December 31, 2011.  Administrative costs for the twelve months ended December 31, 2012 decreased to $11,199,000 from $14,540,000 for the corresponding period ended December 31, 2011.  Net loss from continuing operations after tax and finance costs was $7,194,000 for the twelve month period ended December 31, 2012, while the Company's net loss from continuing operations after tax and finance costs for the twelve month period ended December 31, 2011 was $8,905,000.

The decrease in the net loss for the twelve months ended December 31, 2012 compared with the twelve months ended December 31, 2011, was caused by lower operating costs, an increase in gold sales (from 16,484 oz to 18,162 oz), and reduced administrative expenses offset by higher finance charges. During the twelve months ended December 31, 2012, the Company incurred financial expenses of $9,311,000 compared with $2,317,000 for 2011, on its loans and borrowings, the most significant increase being interest charges with respect to the new VTB Facility.

Cash used in continuing operations for the twelve months ended December 31, 2012 was $6.0 million as compared with $5.3 million for the year ended December 31, 2011. Due to the severe climatic variations in Eastern Russia, the Company's inventories are generally higher in the second half of the year, and impacts the cash used in operating activities.

For the year ended December 31, 2012, the Company used $26.1 million for property, plant and equipment expenditures and for the continued development work primarily on the Nasedkino Project. For the corresponding period in 2011, the Company used $27.8 million, most of which was spent on the development of the Savkino mine.

Key Milestones for 2013

For 2013, the Company is downgrading its medium term production target from 130,000 ounces of gold per annum to 50,000 ounces of gold per annum.  The ability of the Company to meet its production targets is dependent upon obtaining adequate financial resources.  The significant adverse impact caused by the financial uncertainty arising from the Company's discussions with VTB regarding the VTB Facility and the Company's ongoing review of its financing alternatives, necessitated the downgrade in the Company's production target.

Work continued in 2012 on expanding the total capacity of the existing Savkino plant to 1,700 M. tonnes per annum. Work on engineering and geological, geodesic and ecological survey was completed in the third quarter of 2012.

The Company completed all construction work planned for 2012, however with the current delay in funding of the VTB Facility, the timing of the commencement of production from the Savkino expansion and production guidance are being re-assessed.

At its Nasedkino project, an updated National Instrument 43-101 ("NI 43-101") compliant technical report ("Technical Report") was filed in the fourth quarter. The Company has started the construction design of a mine and preparatory work on supplying grid power to the site. In addition, in conjunction with its activities at the Nasedkino license area, the Company intends to continue prospecting on the areas adjacent to the Nasedkino license area that form part of the Uryum license area.

The Company is evaluating the implementation period for the other projects of the Company (to include Nasedkino, Zolin-Arkiinsk and others). The decisions on the timing of the development of these projects will be made once the Company has clarified its funding strategy and will be done in conjunction with on-going assessment of exploration data (which is planned to be completed in 2013-2014).

VTB Facility

On January 11, 2013, the Company announced final gold production for 2012 of 18,262 ounces and confirmed that it was in breach of the gold sales covenant related to the VTB Facility as at December 31, 2012. The resulting failure by the Company to meet the December 31, 2012 gold sales covenant constituted an event of default under the VTB Facility and VTB could attempt to realize its security under the VTB Facility. To date, the Company has not received any notice from VTB regarding any intent to realize its security under the VTB. On February 21, 2013, Diascia received a letter from VTB Capital stating that all the rights and remedies now or at any time in the future available to VTB Capital under the VTB Facility are hereby reserved.

The Company is continuing its discussions with VTB to obtain a waiver or amend the terms of the VTB Facility.

The Financial Statements, MD&A and AIF are available on White Tiger's website at www.whitetigergold.com and have been filed on SEDAR at www.sedar.com.

About White Tiger

White Tiger Gold Ltd. is a TSX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.

Caution Concerning Forward-Looking Information

This news release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") relating, but not limited to, the Company's expectations, intentions and beliefs (including, without limitation, statements regarding, the Bridge Loan (including the timing of advances thereunder and the terms thereof), the Company's financial position, financial alternatives and the Company's ability to continue operations and the VTB Facility (including the occurrence of an event of default thereunder and its potential effect on the Company)). Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology are used to identify forward-looking statements. Such statements are based on assumptions, estimates, opinions and analysis made by the management of the Company in light of their experience, current conditions and their expectations of future developments as well as other factors which they believe to be reasonable and relevant. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties that may cause actual results to vary include but are not limited to: the Company's inability to obtain additional financing on acceptable terms or at all; the Company's inability to obtain TSX approval of the Bridge Loan in a timely manner or at all; the Company's ability to negotiate a waiver or agreement with VTB Capital in respect of the event of default under the VTB Facility; changes in equity and debt markets; inflation; uncertainties relating to the availability and costs of financing needed to complete exploration, development and production activities; failure to establish estimated mineral resources or mineral reserves (the Company's mineral resource and mineral reserve figures are estimates and no assurances can be given that the indicated levels of gold will be produced); exploration costs varying significantly from estimates; delays in the exploration and development of, and/or commercial production from, the properties in which the Company has an interest; unexpected geological or hydrological conditions; the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties, including the failure of major mining and/or milling equipment; the ability of the Company to service its existing debt facilities; fluctuations in gold and other commodity prices; the existence of undetected or unregistered interests or claims, whether in contract or in tort, over the property of the Company; success of future exploration and development initiatives; competition;operating performance of facilities; environmental and safety risks, including increased regulatory burdens, seismic activity, weather and other natural phenomena; inability to, or delays in, obtaining necessary permits and approvals from government authorities; risks relating to labour; and other exploration, development and operating risks; changes to and compliance with applicable laws and regulations, including environmental laws; political, economic and other risks arising from the Company's activities in Russia; fluctuations in foreign exchange rates; and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

SOURCE White Tiger Gold Ltd.