Spokane, Washington (May 13, 2005) – Revett Minerals Inc. (RVM-TSX) is pleased to report to shareholders the operating and financial results for the first quarter of 2005. During the first quarter Revett Minerals completed its initial public offering and acquired a 65% ownership interest in the Troy Mine and the Rock Creek development project, both of which are located in northwest Montana, USA. All currency in this report is in dollars of the United States unless otherwise indicated.

 

The first quarter of 2005 was the first quarter since 1993 that the Troy Mine made commercial deliveries of copper concentrate. In accordance with Canadian generally accepted accounting principles, the Company has not recorded any revenue from the shipment of copper concentrate even though it had received provisional payments on these shipments. Revenue will be recognized as the Company gains evidence that the mine site weights and assays on these shipments are sufficiently accurate that the revenue estimates being recognized provide a reasonable estimate of the revenue being earned.

 

The following is a summary of the first quarter financial, production, sales and shipment results from the Troy Mine:

 

 

The first quarter of 2005 was the first full quarter of production from the Troy Mine and the mine was still increasing its rate of production as the quarter progressed. Additionally, the Company did not acquire its interest in the Troy Mine until mid-February when its initial public offering was completed. In March 2005, the mill processed a total of 75,790 tons of ore (or an average of 2,444 tpd). This compares with a total of 125,206 tons milled during January and February (an average throughput of 2,122 tpd). Metal production in March was 1.18 million pounds of copper and 147,346 ounces of silver. Cumulative metal production for January and February was 1.3 million pounds of copper and 155,223 ounces of silver. The mine continues to ramp up its rate of production each month and we expect planned production of 6,500 tpd will be reached during the second quarter of 2005. In March 2005, ore grades were well above planned levels. The copper grade in March was 0.93% (budget was 0.59%) and silver grades were 2.27 oz/t (budget was 1.46 oz/t). For the quarter copper grades were 0.78% and silver grades averaged 1.84 oz/t. Mill recoveries were however slightly below expectation because of higher non-sulphide ore. In March, copper recoveries were 83.3% versus planned recoveries of 86% and silver recoveries were 85.9% compared to budget recoveries of 87%. For the first quarter recoveries were 78.9% and 81.9% for copper and silver, respectively. There can be no assurance that ore grades will remain above planned levels and recoveries should increase over the coming months to the levels originally anticipated. Total operating costs for the first quarter averaged $16.82 per ton compared to a budgeted cost of $13.50 per ton. This variance is due to the lower than planned mill throughput caused by the delay in the delivery of the new mining equipment. Revenue per ton averaged over $25.00 per ton compared to budgeted revenue of $17.00 per ton.

 

During the first quarter, the mine shipped and received partial payment for 1,886,823 payable pounds of copper and 214,594 payable ounces of silver. Shipments in March alone were 985,000 pounds of copper and 113,662 payable ounces of silver. During the quarter, the mine realized in excess of $3.5 million in provisional payments, of which $1.87 million was received in March. In March the mine generated a modest positive cash flow and it will be cash positive in April also.

 

In accordance with revenue recognition policies under Canadian generally accepted accounting principles, the Company will not recognize these shipments as revenue until more experience is gained on the accuracy of the mine weights and assays. Therefore all shipments to date will be recognized as revenue in future periods. Because no revenue was recognized the Company reported a net loss of $415,298 before recognition of the loss attributable to non-controlling interests. The loss for the quarter after recognition of the loss attributable to non-controlling interests was $288,552.  Almost all of the loss arose from the expensing of general and corporate activities, the accretion expense attributable to the Troy Mine’s reclamation and remediation obligations which totaled $58,439 in March and interest costs less other income of $136,159.

 

Mr. William Orchow, President and CEO of Revett Minerals stated “We are very pleased with the successful resumption of mining activities at the Troy Mine. This achievement would not have been possible without the considerable efforts of the dedicated staff at Troy. With the receipt of the new mining equipment in late March, we fully expect to be at our planned production rate of 6,500 tons per day by the middle of the second quarter and with that production, we expect to produce a total of approximately 2.6 million ounces of payable silver and 22.7 million pounds of payable copper in 2005”.

 

At Rock Creek, the Company continues its efforts to advance the project in light of the unfavorable judgment on the Biological Opinion made by a judge in the U.S. District Court of Montana. Since that court’s ruling to remand the Biological Opinion back to the United States Fish and Wildlife Service (“FWS”), the Company has been advised that the FWS should complete its update on the Biological Opinion by mid year. Also, both the U.S. Fish and Wildlife Service and the Company have the right to appeal the judge’s order by the end of May. Analysis of this course of action continues.

 

 After it had received the decision of the court concerning the Biological Opinion the lead permitting agency, the United States Forestry Service, sent a letter to the Company confirming the validity of the Rock Creek Record of Decision.

 

Revett Minerals, through its subsidiaries, owns both the Rock Creek Project and the Troy Mine located in northwest Montana. The Troy Mine is expected to produce 2.6 million ounces of silver and 22.7 million pounds of copper in 2005. Based on the drilling to date, Rock Creek contains an estimated inferred resource of 136.6 million tons grading 1.67 ounces silver per ton and 0.72% copper, containing approximately 229 million ounces of silver and over 2 billion pounds of copper using a cut off grade of US $10.00 per ton. Further information on both the Troy Mine and the Rock Creek Project may be found in the National Instrument 43-101 reports at www.sedar.com. These reports were prepared on behalf of the Company by Jean-Francois Couture, P.Geo. and Ken Reipas P.Eng. of SRK Consulting (Canada) and they are qualified persons under National Instrument 43-101. 

 

All of these issues are discussed in greater detail in the company’s official filings at www.sedar.com. 

 

William Orchow

President & CEO

 

For more information, please contact:

Scott Brunsdon, CFO or Doug Ward, VP Corporate Development at (509) 921-2294 or visit our website at www.revettminerals.com.