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Aberdeen International Inc.: Aberdeen NAV of $1.02 Per Share and Second Quarter Financial Results

^{Published on 2009-09-15 04:36:36 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Sept. 15, 2009) - ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) is pleased to announce that it has released its financial results for the quarter ending July 31, 2009.

As at July 31, 2009, Aberdeen's Net Asset Value ("NAV") was $89.2 million, or $1.02 per share. The components of Aberdeen's NAV as at July 31, 2009 are as follows:

- Cash and cash equivalents of $1.3 million;

- Portfolio Investments at estimated fair value of $44.9 million;

- Estimated fair value of the 1% NSR of $35.0 million;

- Other assets of $19.8 million (including principal receivable from Aberdeen Loan Agreement to Simmer and Jack of $10.8 million); less

- Total liabilities of $11.8 million (including future tax liabilities of $9.9 million); and

- Shares outstanding at the end of the quarter of 87,503,839

Portfolio leveraged to a rising gold price

Aberdeen continues to successfully identify underperforming gold equities where it can add value as an active investor. As at July 31, 2009 approximately 69% of Aberdeen's NAV is in gold equities or royalties.

Sulliden Exploration Inc. is one of the emerging gold production stories in the Aberdeen portfolio and has seen our cost base of $0.41 per share appreciate to close at $0.84 on September 10th. Aberdeen also made investments in Crocodile Gold Corp in the quarter. Crocodile Gold holds past producing assets (2008) containing approximately 3 million ounces of NI 43-101 compliant reserves and resources in Northern Australia (See Crocodile Gold press release dated August 6th 2009). Subsequent to the quarter, Franc-Or Resources Corporation, another of Aberdeen's portfolio companies, announced a business combination with Crocodile Gold by way of a Reverse Take-Over. Franc-Or has since traded positively on the business combination gaining over 30% since the deal was announced on August 6th.

Oil and Gas Investments

Aberdeen has invested in two significant oil equities with large exploration blocks in the Kurdistan regional area of Iraq, namely Vast Exploration (TSX VENTURE:VST) and Longford Energy (TSX VENTURE:LFD). Both equities have enjoyed share price appreciation since July 31 based on several multi-billion barrel discoveries announced in Kurdistan by Heritage Oil and Gulf Keystone Petroleum. Currently 10% of Aberdeen's portfolio value is held in these two investments.

George Faught, President and CEO stated: "We are pleased with the rebound in the portfolio this quarter and expect the portfolio to continue to appreciate in a rising Gold environment. We are well positioned to take advantage of an increasing gold price through our royalties in South Africa and our equity positions in key projects such as Sulliden, Crocodile Gold and Avion Gold".

Simmer Loan Agreement

On February 16, 2009, shareholders of Simmers voted against the conversion to equity of the Loan Facility thereby granting to Aberdeen a 1% Life of Mine NSR on all the Northwest assets of Buffels Gold Mines. Aberdeen has received and continues to receive the 1% royalty from both Simmers and First Uranium for the Buffels underground operation and the Mine Waste Solutions project.

Subsequent to the end of the quarter Aberdeen filed a statement of claim against Simmer and Jack and against First Uranium seeking payment of the outstanding Graduated Royalty from October 16th 2008 to December 31 2008. The claim also seeks to recover the unpaid loan principal for US $10 million.

Normal Course Issuer Bid

During the quarter the Company re-purchased 7,075,200 shares at an average price of $0.24 per share under the NCIB and now has 87,503,839 shares issued and outstanding.

About Aberdeen International Inc:

Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-IPO and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; (ii) are undervalued in foreign capital markets; and (iii) operate in jurisdictions with moderate local political risk. Aberdeen will seek to provide value-added managerial and board advisory services to companies. The Corporation's intention will be to optimize the return on its investment over an 18 to 24 month investment time frame.

Aberdeen International Inc.

Please visit the Company's web site at [ www.aberdeeninternational.ca ] or write us at [ smoore@aberdeeninternational.ca ].

Cautionary Notes

Cautionary Note Regarding Forward-Looking Information This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, valuations of investments, proposed transactions and investments, investment philosophy, Simmers litigation, liabilities and commitments and royalties. Generally, forward looking information 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 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". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; other inherent risks of the mining industry and investment industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.