Vancouver, B.C. — Starcore International Mines Ltd. (the “Company”) has filed the results for the year ended July 31, 2012, for the Company and its mining operations. The Company reports revenues of $57 million, earnings from mining operations of $21.7 million and earnings for the year of $14.34 million, which includes a net $1.33 million loss in financing costs due to net losses in gold forward sales contracts up to May 15^th , 2012, when the gold forward sales contracts were repurchased by the Company at a close out price averaging US$1,562 per ounce. The basic and diluted income per share for the year ended July 31, 2012 was $0.11 and $0.10, respectively.

The following table is a summary of mine production statistics for the San Martin mine for the six months ended July 31, 2012 and for the twelve months ended January 31, 2012:
 

* Based on actual gold equivalency ratios of 54:1 and 46:1 for six months ended July 31, 2012 and twelve months ended January 31, 2012, respectively .

Overall equivalent gold production was 12,100 ounces over the six months ended July 31, 2012, compared to an average of 9,325 per quarter for the previous twelve month period. While ore grade remained comparable to the previous twelve month period, the lower production was due mainly to significantly less concentrate ore purchases in the current period as the Company’s supplier ceased deliveries in the third quarter. Mine production alone averaged 5,100 ounces per quarter for the two quarters ended July 31, 2012, compared to an average of 5,925 per quarter for the previous twelve month period, due mainly to production issues in the fourth quarter wherein only 4,400 ounces were produced. As a result, operating cost per equivalent ounce increased significantly in the current period to $781. Ore recoveries decreased significantly during the quarter due to ore characteristics and reclaim water quality, which have subsequently been corrected allowing gold recovery to return to near historical levels and, consequently, the operating cost per equivalent ounce will also improve.

The following table contains selected highlights from the Company’s consolidated statement of operations for the years ending July 31, 2012 and 2011:

Revenues for the year ended July 31, 2012 were much higher at $57.0 million compared to 2011 revenues of $39.5 million due to a combination of higher production, metal prices and purchased concentrate revenue. Sales of metals produced by the milled ore from the mine, along with purchased ore concentrate for the year ended July 31, 2012, approximated 22,069 ounces of gold and 600,385 ounces of silver sold at average prices in the year of US$1,686 and US$34 per ounce, respectively, compared to the year ended July 31, 2011, which approximated 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.

Total earnings for the year ended July 31, 2012, of $14.3 million, was $18.5 million higher than the loss in the comparative year due to the improved metal prices and production, as discussed above, and to high financing costs of $13.2 million in the year ended July 31, 2011 compared to $1.3 million in the July 31, 2012 year. The main component of the financing cost is net loss on forward contracts which results solely from the fluctuation in the price of gold applied against the remaining open contracts. The gold price remained relatively stable during the July 31, 2012 fiscal year, until the forward contracts were repurchased, compared to the July 31, 2011 fiscal year where the gold price fluctuated from US$1,180 to US$1,621 per ounce from the beginning to end of the fiscal year. The Company announced on May 15, 2012 that the balance of the hedge was repurchased by the Company for US$9.0 million, or US$1,562 per ounce, thereby eliminating the effect of future fluctuations of the hedge value on the Company’s net income.

“The Company has turned in a very positive year with this report, proving that the San Martin mine is a very profitable and dynamic operation. The elimination of the hedge this quarter allows the Company to report earnings based solely on mining operations without the fluctuations of the hedge affecting both reported earnings and actual cash flows and has given the Company the breathing room to pursue our exploration objectives with a view to finding more reserves and justifying an expansion in mine production,” said Robert Eadie, Executive Chairman and CEO of the Company.

Full financial statements are available on SEDAR at www.sedar.com and on Starcore’s website at www.starcore.com.

ON BEHALF OF STARCORE INTERNATIONAL MINES LTD.

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

FOR FURTHER INFORMATION PLEASE CONTACT INVESTOR RELATIONS
Telephone: 1-604-602-4935
Toll Free: 1-866-602-4935 / Facsimile: 1-604-602-4936

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