[dehai-news] (FOXBusiness) Nevsun Resources Ltd.: Third Quarter 2008 Financial Results


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From: Biniam Tekle (biniamt@dehai.org)
Date: Fri Nov 14 2008 - 08:24:00 EST


 Thursday, November 13, 2008 Nevsun Resources Ltd.: Third Quarter 2008
Financial Results

VANCOUVER, BRITISH COLUMBIA, Nov 13, 2008 (Marketwire via COMTEX) ----Nevsun
Resources Ltd. (TSX:NSU)(AMEX:NSU) ("Nevsun") wishes to announce its results
for the third quarter of 2008. Complete details of the September 30, 2008
interim financial statements and Management's Discussion and Analysis can be
found on the Nevsun website at www.nevsun.com as well as on Sedar at
www.sedar.com and EDGAR at http://www.sec.gov/edgar/searchedgar/webusers.htm.

The Company's cash position at September 30, 2008 was approximately US$47
million. The loss for the quarter was US$843,221 as compared to a loss of
US$4.7 million for Q3 2007. The main reason for the improvement in operating
results was the disposal of Nevsun's Mali assets during Q2 2008 and
capitalization during 2008 of all of its Bisha project development costs in
Eritrea.

In late October the Company announced the appointment of a lead banker and
an $89 million debt finance commitment for the development of its Bisha
Project in Eritrea. This is a substantial portion of the finance required
for the $250 million project. Discussions are active with a number of other
possible lenders who are at various stages of internal approvals. The
Company's strong cash position, the above project debt and the financial
support of the Eritrean government should allow the continued development of
the Project without the issuance of any equity of the Company.

Milestones Achieved

   October 2006 Feasibility Study completed by AMEC Americas December
2006 Social and Environmental Impact Assessment (SEIA)
   completed by AMEC January 2007 Tendering process for EPCM
contractor initiated June 2007 EPCM contractor selected (SENET)
   and preliminary engineering commenced October 2007 State
participation agreed. (10% free carried plus a 30% interest to be
   purchased at fair value by Eritrean National Mining Corporation
(ENAMCO) December 2007 Mining and Stabilization agreements
   completed with Eritrean Government January 2008 Mining license
granted February 2008 $25 million received from ENAMCO as a
   down payment on purchase price February 2008 Orders placed for
critical equipment (long lead items, ball and SAG mills) May
   2008 $20 million received on sale of other Nevsun assets August
2008 SENET mobilized to site; site clearing and heavy earth
   moving started Sept 2008 Construction camp for 400 people advanced
October 2008 $89 million debt finance commitment received
   from Industrial Development Corporation of South Africa.

Project Economics (low metals price assumptions)

High returns and quick capital payback highlight the economic strength of
the Project. Low site operating costs throughout the projected mine life
result in Bisha being particularly robust and the strengthening of the US
dollar will also improve the economics further regarding both capital and
operating costs. Due to the volatility in metals prices over recent weeks,
management presents below a low metals prices projection(1).

IRR - 42%

Payback - 1.6 years

Life of mine net after tax cash flow - $440 million.

(1) Assumptions

Low metals price scenario - Au $600, Cu $1.50, Zn $0.50, Ag $8

Preproduction capex - $250 million (June 2008, including contingency)

The Company looks forward to progressing Bisha through to production with
the continued full support of the Eritrean Government.

Forward Looking Statements: The above contains forward-looking statements
concerning finance commitments and requirements, strength of cash position,
continued support of Eritrean government and assumptions contained within
"Project Economics". Forward-looking statements are frequently, but not
always, identified by words such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible" and similar expressions, or
statements that events, conditions or results "will", "may", "could" or
"should" occur or be achieved. Forward-looking statements are statements
about the future and are inherently uncertain, and actual achievements of
the Company or other future events or conditions may differ materially from
those reflected in the forward-looking statements due to a variety of risks,
uncertainties and other factors, including, without limitation, those
described in the Management Discussion and Analysis of the Company. The
Company's forward-looking statements are based on the beliefs, expectations
and opinions of management on the date the statements are made and the
Company assumes no obligation to update such forward-looking statements in
the future. For the reasons set forth above, investors should not place
undue reliance on forward-looking statements.

NEVSUN RESOURCES LTD.

Cliff T. Davis, President & Chief Executive Officer

SOURCE: Nevsun Resources Ltd.

Nevsun Resources Ltd. John Clarke Vice Chairman (604) 623-4700 or 1-888-600-2200
   Email: nevsuninfo@nevsun.com Website: www.nevsun.com

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