VANCOUVER, Nov. 6, 2014 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX: YMI) today announces the results of operations for the nine months ended September 30, 2014.

For the full condensed consolidated interim financial statements and management discussion & analysis for the third financial quarter ended September 30, 2014, please see SEDAR at www.sedar.com or the Company's website at www.yellowheadmining.com.

Highlights

Highlights for the third financial quarter ended September 30, 2014 include:

• Completion of the updated feasibility study for the Harper Creek Project ("Harper Creek Project"), including updating the resource and reserve estimates, updating estimates of initial capital costs, sustaining capital costs and operating costs, and the financial analysis of the Harper Creek Project
• Continuing to update and revise the EA Application for the Harper Creek Project, with a target date for submission to the British Columbia Environmental Assessment Office during the fourth quarter of 2014

Third Quarter Results
(Amounts are expressed in thousands of Canadian dollars, except per-share amounts)

Yellowhead has no revenue from operations.  Results can fluctuate significantly from period to period due to the level of project development, including preparation of engineering and environmental application documentation.

Review of Quarterly Results (Three months ended September 30, 2014 ("Q3 2014") compared to the three months ended September 30, 2013 ("Q2 2013")

The loss in Q3 2014 was $2.03M compared to $1.25M in Q3 2013.  This increase in loss of $783K was due to an increase in exploration and evaluation expenses of $1.34M.  This increase in exploration and evaluation expenses was due mainly to the update of both the feasibility study and the EA Application for the Harper Creek Project.  The updated National Instrument 43-101 Technical Report – Feasibility Study was filed on September 29, 2014. Environmental assessment costs increased from $199K in Q3 2013 to $1.41M in Q3 2014 in support of activities needed to support the re-submission of the EA Application. Administration expenses were $434K in Q3 2014 compared to $985K in Q3 2013. At the end of 2013, the Company undertook a reduction in general and administrative expenses, including staffing levels, and this resulted in lower investor relations activities, lower professional fees and lower wages and benefits, in Q3 2014 compared to Q3 2013. Share based compensation was also lower in Q3 2014 compared to Q3 2013 as there were no options granted in Q3 2014.

Review of Annual Results (Nine months ended September 30, 2014 ("YTD 2014") compared to the nine months ended September 30, 2013 ("YTD 2013")

The loss in YTD 2014 was $5.38M as compared to $5.30M in YTD 2013.  This increase in loss was primarily due to an increase in exploration and evaluation expenses of $1.31M. The 2014 exploration and evaluation expenses related to the update of both the feasibility study and the EA Application for the Harper Creek Project and the YTD 2013 costs primarily related to the in-fill drilling program.   The higher exploration and evaluation expenses were partially offset by the decrease in administration expenses.  The decrease in administrative expenses was primarily due to lower professional fees, lower investor relations and lower wages and benefits costs in YTD 2014 as compared to YTD 2013.  In 2013 the Company incurred costs related to various strategic initiatives of the Company and these costs were not incurred in YTD 2014 as the Company undertook a reduction in general and administrative expenses.

Cash and Cash Equivalents

The Company had cash and cash equivalents of $5.4M as at September 30, 2014, as compared to cash and cash equivalents of $10.00M as at December 31, 2013.  As at September 30, 2014, the Company had working capital of $4.43M, as compared to working capital of $9.70M as at December 31, 2013.

The Company's focus going forward is continuing the development of the Harper Creek Project. Major activities include completing the Environmental Assessment process, advancing the Mine Permitting process and pursuing funding activities to increase its working capital to fund the development of the Harper Creek Project.  In order to complete the EA Application, have working capital for twelve months of general and administrative expenses and to continue as a going concern, additional funding will be required by the Company.  Upon receipt of an environmental assessment certificate for the Project, the Company will require additional funding to proceed with the next phase of development of the Project, including the mine permitting process.

About Yellowhead Mining Inc.

Yellowhead Mining Inc. is a development stage company with a 100% interest in the Harper Creek copper project located in the North Thompson - Nicola region of British Columbia, Canada.  The proposed Harper Creek mine will be a large scale, long life, low cost open pit copper mine, has a NI 43-101 compliant feasibility study, and is currently in the environmental permitting phase of development.

For more information on Yellowhead and the Harper Creek Project, please visit Yellowhead's website at www.yellowheadmining.com.

Cautionary Note Regarding Forward Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions, inherent operating risks, planned expenditures, proposed exploration and development at the Harper Creek Project, operating and economic aspects of the Harper Creek Project, as well as those risk factors identified in the Company's Annual Information Form filed under the Company's SEDAR profile. Yellowhead undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect projected results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yellowhead.

SOURCE Yellowhead Mining Inc.