Starcore Reports Year-End Financial Results

Vancouver, B.C. - Starcore International Mines Ltd. (the “Company”) has filed the results for the year ended July 31, 2011 for the Company and its mining operations from the San Martin Mine. Over the year ended July 31, 2011, the Company reports revenues of $39.5 million, earnings from mining operations of $13.8 million and a net loss of $4.0 million, which includes a net $6.6 million non-cash unrealized loss on forward sales contracts and a $234,000 non-cash stock-based compensation charge on option awards vested in the year. The basic and diluted loss per share for the year ended July 31, 2011 was $0.05.

The following table is a summary of mine production statistics for the San Martin mine for the six months ended July 31, 2011 and the cumulative amounts for the year ended January 31, 2011:

(Unaudited) Unit of measure Actual results for
6 months ended
July 31, 2011
Actual results for
12 months ended
January 31, 2011
Mine Production of Gold in Dore thousand ounces 7.8 15.6
Mine Production of Silver in Dore thousand ounces 134.9 170.0
Mine Equivalent ounces of Gold thousand ounces 11.1 18.5
Purchased Concentrate Equivalent ounces thousand ounces 5.2 2.5
Total Mine Production - Equivalent Ounces thousand ounces 16.3 21.0
Mine Gold grade grams/tonne 2.0 2.05
Mine Silver grade grams/tonne 40 31
Milled thousands of tonnes 146 274
Mine Operating Cost per tonne milled US dollars/tonne 50 39
Mine Operating Cost per Equivalent Ounce US dollars/ounces 699 577

* assuming a 41:1 silver to gold equivalency ratio for six months ended July 31, and 60:1 for the year ended January 31, 2011.

Overall equivalent gold production from mine operations, excluding purchased concentrate, was 11,100 ounces over the six months ended July 31, 2011, compared to an average of 4,625 per quarter for the previous twelve month period. The higher production was due mainly to consistently higher ore grades for silver, higher silver recoveries and the fact that the mine also increased tonnage through the mill to 146,000 tonnes for the six month period compared to 68,500 tonnes per quarter average for the twelve months.

Currently, the Company is continuing underground exploration in order to identify higher grade ore zones and has allocated a higher budget to support exploration, exceeding 11,000 metres of exploration drilling for the 2011 calendar year (See recent news releases of September 28th, September 22nd, August 29th and July 18, 2011).

The following table contains selected highlights from the Company’s consolidated statement of operations and consolidated balance sheet for the years ending July 31, 2011 and 2010 (all amounts per table and discussion below are stated in thousands of Canadian dollars):

(000’s) July 31, 2011 July 31, 2010
Mined ore $ 29,413 $ 22,046
Purchased concentrate 10,052 1,155
  $ 39,465 $ 23,201
Cost of Sales    
Mined Ore 13,415 10,728
Purchased concentrate 9,752 1,054
Amortization, depletion and reclamation 2,497 1,983
  $ (25,664) $ (13,765)
Earnings from mining operations 13,801 9,436
Net loss    
(i) Net loss for the year $ (4,023) $ (3,728)
(ii) Income (loss) per share - basic $ (0.05) $ (0.05)
(iii) Income (loss) per share - diluted $ (0.05) $ (0.05)

Total assets
$ 46,637 $ 45,170
Total long-term liabilities $ 13,803 $ 17,242

Revenues for the year ended July 31, 2011, were higher at $39,465 than 2010 revenues of $23,201 due mainly to the sale of metal from purchased concentrate, but also due to higher metal prices in 2011 and higher metal production from mine operations. For the year ended July 31, 2011, metal sales of 20,002 ounces of gold and 425,414 ounces of silver sold at average prices of US$1,308 per ounce and US$32 per ounce, respectively, compared to the year ended July 31, 2010 which approximated 17,343 ounces of gold and 181,876 ounces of silver sold at average prices of US$1,105 and US$17 per ounce, respectively. Loss for the year ended July 31, 2011 increased to a loss of $4,023 due mainly to the fluctuation in realized and unrealized forward sales contracts losses. Net realized and unrealized loss on forward contracts for the year ended July 31, 2011 was $12,541 compared to $9,873 for 2010 due to the increase in gold price from US$1,180 at July 31, 2010 to US$1,621, at July 31, 2011 on the remaining 21,343 ounces which are to be sold at an average of 1,185 ounces per month until January 31, 2013.

The Company also had positive cash flow from operations of $2,125 for the year ended July 31, 2011 compared to $3,540 for the same period in 2010.

Full financial statements are available on SEDAR at and on Starcore’s website at


Signed “Gary Arca”
Gary Arca, Chief Financial Officer and Director

Telephone: 1-604-602-4935
Toll Free: 1-866-602-4935 / Facsimile: 1-604-602-4936


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