BELMONT REFILES JANUARY 31, 2012 AUDITED FINANCIAL STATEMENTS
Vancouver, B.C. Canada, October 11, 2012 – Belmont Resources Inc. (“Belmont”, the “Company” or “BEA”). As a result of a review by the British Columbia Securities Commission, the Company has amended, restated and refiled its January 31, 2012 audited Financial Statements. We are issuing this press release to clarify our changes.
We have amended and restated the following Notes to the Financial Statements:
Note 1: Nature and continuance of operations
The Independent Auditors’ Report on the financial statements contains an Emphasis of Matter paragraph concerning the existence of material uncertainties that may cast significant doubt about the company’s ability to continue as a going concern. Previously Note 1 disclosed that the company’s continuation as a going concern is dependent upon the successful results from its exploration activities, its ability to attain profitable operations and generate funds there from, and/or raise equity capital or borrowings sufficient to meet current and future obligations. We have added to the note the following sentence: “These uncertainties may cast significant doubt about the Company’s ability to continue as a going concern”.
Note 2: Significant accounting policies and basis of preparation
Previously Note 2 to the financial statements stated, “the financial statements were authorized for issue on May 29, 2012 by the Board of directors”. We have amended the note to agree with the date of board approvals, which coincides with the date of the Auditors’ Report, as follows: “The financial statements were authorized for issue on May 28, 2012 by the Board of directors”.
Note 2: Significant accounting judgments, estimates and assumptions
The notes should comply with IAS 1.122-124 and IAS 1.132. The previous disclosure in the financial statements appeared to indicate that the Company did not consider judgments and estimates to be separate items. We have amended the note as follows:
“Significant estimates made in the preparation of these financial statements include the useful lives of equipment, recoverable value of exploration and evaluation assets and equipment, fair value estimates for financial instruments and equity-bases payments, the valuation of provisions for restoration and environmental liabilities and the recoverability and measurement of deferred tax assets and liabilities. Actual results may differ from those estimates.
Financial statement areas requiring significant judgment relate to the testing of impairment of exploration and evaluation assets, recognition of deferred tax assets, determination of cash generating units, selection of fair value models, and the determination of technical feasibility and commercial viability of mineral properties”.
Note 8. Exploration and evaluation interests
b) Crackingstone River, Saskatchewan (cont’d)
At January 31, 2012, the Company wrote down the value of their Crackingstone property to $200,000. Previous Note 8(b) stated that the Company charged impairment to the property to record it at its “estimated realizable value”. This did not comply with wording under IAS 36. The Company has amended the note to read as follows: “Accordingly, the Company has charged an impairment of $534,833 to the property to record it at its recoverable amount, being the estimated fair value from the sale of the property interest. Fair value was estimated in relation to current estimates of consideration and historical property transfers in the area”.
ON BEHALF OF THE BOARD OF DIRECTORS
The statements used in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Companies forward-looking statements and expectations. Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.