Yellowhead Mining Inc. Reports Financial and Operating Results for the Three and Nine Months Ended September 30, 2013

TSX:YMI

VANCOUVER, Nov. 13, 2013 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX: YMI) is pleased to report its results of operations for the three and nine months ended September 30, 2013.

For the full condensed consolidated interim Financial Statements and Management Discussion & Analysis, please visit SEDAR at www.sedar.com or the Company's web site, www.yellowheadmining.com.

Highlights

Key highlights for the nine months ended September 30, 2013 and subsequent weeks include:

• Detailed NI 43-101 compliant amended feasibility study was completed and filed on March 29, 2012 and restated and amended as of January 25, 2013.
• In April 2013, the Company submitted the application for an Environmental Assessment ("EA") Certificate for the Harper Creek Project to the Environmental Assessment Office ("EAO"). In May 2013, the EAO identified a number of deficiencies with, and provided comments on the Company's EA Application. The Company is currently working to address the deficiencies raised and comments received in order to resubmit the application to the EAO.
• Engaged Evercore Group L.L.C. to provide financing advisory services and to assist in the evaluation of strategic partnership and financing alternatives for Harper Creek.
• Completed all the drilling for the in-fill drilling program announced in November 2012, with an additional 35 holes drilled for a total of 11,969m.
• Executed a memorandum of understanding with a local First Nation for involvement in the EA process and Benefits Agreement ("BA") negotiations.
• Appointed Frank Wheatley as CEO and a member of the Board of Directors effective July 1, 2013.
• As at September 30, 2013, the Company's had cash and cash equivalents of $3.04M.

Outlook

The Company's plans for 2013 and beyond are to:

• Explore financing options in order to finance the development of Harper Creek, including but not limited to: strategic investors and/or partnerships, project and equipment financing stock offerings and off-take agreements.
• Explore short-term financing options to increase the Company's working capital which will be required for the Company to continue as a going concern.
• Continue through the process of environmental permitting with resubmission of the Company's EA Application.
• Prepare and submit the Company's applications for a British Columbia Mines Act Permit for Harper Creek.
• Continue ongoing consultation with the First Nations and local communities to address any potential environmental and socio-economic impacts of Harper Creek and the Company's mitigation strategies.
• Continue negotiations with the local First Nations on a Benefits Agreement.
• Continue exploration activities to better define the resource/reserve at Harper Creek including the preparation of an updated resource report incorporating all new drilling.
• Issue an updated NI 43-101 compliant feasibility study for Harper Creek.

The extent of the work to be undertaken on the aforementioned activities is subject to and contingent on the Company's ability to raise additional financing.

Summary of Key Financial Highlights

Yellowhead has no revenue from operations. Results can fluctuate significantly from period to period due to the level of engineering and environmental study effort and resource drilling.

The Company's expenditures on the Harper Creek project for the nine months ended September 30, 2013 and cumulative to date were as follows:

The Company's net loss for the three months ended September 30, 2013 and the eight prior quarterly periods are as follows:

(Amounts are expressed in thousands of Canadian dollars, except per-share amounts)

The Company's administrative expenses for the three months ended September 30, 2013 ("Q3") were approximately $196K higher than for the three months ended June 30, 2013 ("Q2"). This increase was primarily due to the following items: (1) Consulting fees were $120K higher in Q3 compared to Q2 due to a one-time $174K refund from BC Hydro the Company received in Q2 related to some funds it had advanced in 2011 and 2012 for various studies, offset by $60K in additional consulting fees the Company incurred in Q2 which were not incurred in Q3; (2) Professional fees were $35K higher in Q3 compared to Q2 due to $98K in recruiting fees paid in Q3 which were not incurred in Q2, offset by $33K less in legal fees in Q3 as compared to Q2 and $20K less in professional fees in Q3 as compared to Q2 for various strategic initiatives; (3) Share-based compensation was $90K higher in Q3 compared to Q2 due to options that were granted in Q3, this is a non-cash charge; (4) Wages and Benefits were $40K higher in Q3 compared to Q2 as the Company incurred additional costs with the appointment of the Company's new CEO announced in June 2013; (5) Investor relations costs were $82K lower in Q3 compared to Q2 due to $20K less in travel costs, $16K less in advertising costs and $44K less in general investor relations costs in Q3 compared to Q2.

Exploration costs were $179K lower in Q3 as compared to Q2. This decrease is related primarily to the conclusion of the infill drilling program announced by the Company in November 2012 and completed in Q2.

Other expenses were not materially different for Q3 compared to Q2.

Cash and Cash Equivalents

The Company had cash and cash equivalents of $3.04M as at September 30, 2013, as compared to cash and cash equivalents of $4.09M as at June 30, 2013. As at September 30, 2013, the Company had working capital of $2.83M, as compared to working capital of $3.80M as at June 30, 2013.

The Company's focus going forward, is expediting the development of the Harper Creek project. Major activities include completing the Environmental Assessment process, advancing the Mine Permitting process and pursuing funding activities to increase its working capital and develop the Harper Creek project. The Company believes its current working capital is sufficient for the next twelve months of general and administrative activities, however, additional funding will be required by the Company to complete its strategic objectives and to continue as a going concern.

About Yellowhead Mining Inc.

Yellowhead Mining Inc. is a development stage company with a 100% interest in the Harper Creek copper-gold-silver project located in the North Thompson region of British Columbia, Canada. The proposed Harper Creek mine will be a large scale, long life, low cost open pit copper mine, has a NI 43-101 compliant feasibility study, and is currently in the environmental permitting phase of development.

For more information on Yellowhead and the Harper Creek Project, please visit Yellowhead's website at www.yellowheadmining.com

Forward Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions, inherent operating risks, planned expenditures, proposed exploration and development at the Harper Creek Project, operating and economic aspects of the Harper Creek Project, as well as those risk factors identified in the Company's Annual Information Form filed under the Company's SEDAR profile. Yellowhead undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect projected results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yellowhead.

SOURCE Yellowhead Mining Inc.