VANCOUVER, May 21 /CNW-PRN/ - Miramar Mining Corporation MAE - TSE, VSE MAENF - OTC Nasdaq Miramar Mining Corporation (the ``Company'') reports the consolidated results for the quarter ending March 31, 1999. For the period, Miramar reports a consolidated loss of $2,400,000 or $0.04 per share, as compared with earnings of $1,919,000 or $0.03 per share for the first quarter of 1998. This loss is primarily due to $2.5 million in severance costs booked during the quarter and the impact of the strike at the Con Mine. Miramar ended the first quarter with a consolidated working capital position of $73.8 million and a consolidated cash position of $69.5 million. Working capital decreased during the period due to accrued severance costs, continued standby costs at the Con Mine during the strike, and cash requirements from 54.8% owned Northern Orion Explorations Ltd. The strike at the Con Mine cost approximately $2.5 million during the quarter. Severe drought conditions at Northern Orion's Mantua mine in Cuba impacted the ability to leach gold from the pads, resulting in Miramar having to fund $3.0 million in principal and interest payments to Northern Orion's bank under the guarantee provided by Miramar for the Mantua project financing. Conditions at Mantua have now returned to normal and gold leaching has resumed.(+) Management and the board of Miramar are focussed on enhancing shareholder value through maximizing the value of Miramar's existing assets and evaluating potential corporate transactions to increase gold production and cash flow.(+) Principal objectives achieved during the quarter were progress towards the settlement of the strike at the Con mine, with a settlement being achieved in April and with gold production set to resume by July 1999; a significant reduction in corporate general and administrative costs going forward; and the adoption of a clear, focused corporate strategy with a goal of becoming an intermediate gold producer in the near term. Miramar is continuing with the implementation of its strategy with a continuing review of its existing assets and preliminary discussions initiated with the highest priority parties for corporate transactions that would add immediate cash flow positive gold production if consummated.(+) Further progress will be reported as developments occur.(+) Miramar Mining Corporation is a gold mining company that is also involved in the exploration and development of base and precious metals in Latin America through its 54.8% owned subsidiary, Northern Orion Explorations Ltd. Miramar's common shares are listed for trading on the Toronto and Vancouver Stock Exchanges in Canada under the symbol MAE and on the OTC Bulletin Board in the U.S. under the symbol MAENF. (+) This News Release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 concerning the Company's future objectives, plans, projected production and cost estimates and the mine plan for the Con and Mantua mines and statements regarding reserve estimates also that may be deemed to be forward-looking statements in that they involve the assessment based on certain estimates and assumptions, that the reserves could be economically mined in the future. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to fluctuating precious and base metals prices; the interpretation of drill results, and the geology, grade and continuity of mineral deposits; recovery rates; accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in production, the possibility of unexpected costs and expenses, and other risks and uncertainties, including those described in the Company's Annual Report on Form 40-F for the year ended December 31, 1997 and Reports on Form 6-K filed with the Securities and Exchange Commission MIRAMAR MINING CORPORATION Consolidated Balance Sheets (expressed in thousands of dollars) March 31, 1999 and December 31, 1998 ------------------------------------------------------------------------ 1999 1998 (unaudited) ------------------------------------------------------------------------ Assets Current assets: Cash and short-term investments $ 69,484 $ 78,894 Marketable securities 3 3 Accounts receivable 5,126 5,605 Inventory 8,737 8,898 Prepaid expenses 905 457 ---------------------------------------------------------------------- 84,255 93,857 Capital assets 144,318 144,285 Other assets 4,804 4,762 ------------------------------------------------------------------------ $ 233,377 $ 242,904 ------------------------------------------------------------------------ Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 7,369 $ 6,340 Current portion of long-term debt 3,106 5,801 ---------------------------------------------------------------------- 10,475 12,141 Deferred gain 1,776 6,338 Reclamation liability 6,093 6,225 Non-controlling interest 57,927 58,694 ------------------------------------------------------------------------ 76,271 83,398 Shareholders' equity: Share capital 229,377 229,377 Deficit (72,271) (69,871) ---------------------------------------------------------------------- 157,106 159,506 ------------------------------------------------------------------------ $ 233,377 $ 242,904 ------------------------------------------------------------------------ MIRAMAR MINING CORPORATION Consolidated Statements of Operations and Deficit (expressed in thousands of dollars except per share amounts) Three month periods ended March 31, 1999 and 1998 ------------------------------------------------------------------------ 1999 1998 (unaudited) (unaudited) ------------------------------------------------------------------------ Revenue: Sales $ 5,698 $ 12,396 Other income 964 1,360 ---------------------------------------------------------------------- 6,662 13,756 Expenses: Cost of sales 3,894 9,092 Terminations and severance 2,518 - General and administration 1,459 2,024 Depreciation and depletion 1,264 913 Interest 78 45 Foreign exchange loss 450 163 Reclamation 60 - Write-down of mineral properties 106 - ---------------------------------------------------------------------- 9,829 12,237 ------------------------------------------------------------------------ Earnings (loss) before non-controlling interest (3,167) 1,519 Non-controlling interest 767 400 ------------------------------------------------------------------------ Earnings (loss) for the period (2,400) 1,919 Deficit, beginning of period (69,871) (67,449) Interest on convertible debentures - (110) ------------------------------------------------------------------------ Deficit, end of period $ (72,271) $ (65,640) ------------------------------------------------------------------------ Earnings (loss) per share $ (0.04) $ 0.03 ------------------------------------------------------------------------ Weighted average number of common shares outstanding 56,693,804 56,693,804 ------------------------------------------------------------------------ MIRAMAR MINING CORPORATION Consolidated Statements of Cash Flows (expressed in thousands of dollars) Three month periods ended March 31, 1999 and 1998 ------------------------------------------------------------------------ 1999 1998 (unaudited) (unaudited- note 1) ------------------------------------------------------------------------ Cash flows from (used in) operating activities: Earnings (loss) for the period $ (2,400) $ 1,919 Items not involving cash: Depreciation and depletion 1,264 913 Write-down of mineral properties 106 - Deferred gain (4,562) (296) Other 60 130 Non-controlling interest (767) (400) ---------------------------------------------------------------------- (6,299) 2,266 Decrease (increase) in accounts receivable 479 (522) Decrease (increase) in inventories 161 (49) Decrease (increase) in prepaid expenses (448) (697) Increase (decrease) in accounts payable and accrued liabilities 1,029 (1,654) ---------------------------------------------------------------------- (5,078) (656) Cash flows from (used in) financing activities: Repayment of long-term debt (2,695) - Long-term debt - (42) Interest on convertible debentures - (110) ---------------------------------------------------------------------- (2,695) (152) Cash flows from (used in) investing activities: Expenditures on mineral properties and deferred exploration (1,403) (4,554) Reclamation expenditures (192) - Other assets (42) (40) ---------------------------------------------------------------------- (1,637) (4,594) ------------------------------------------------------------------------ Net decrease in cash and short-term investments (9,410) (5,402) Cash and short-term investments, beginning of period 78,894 104,460 ------------------------------------------------------------------------ Cash and short-term investments, end of period $ 69,484 $ 99,058 ------------------------------------------------------------------------ Note 1: Comparative figures for the Consolidated Statements of Cash Flows have been restated to reflect the retroactive application of the new guidance for the statement of cash flows by the Canadian Institute of Chartered Accountants which the Company adopted effective January 1, 1999. No Stock Exchange has approved or disapproved the information contained herein. SOURCE Miramar Mining Corporation -0- 05/21/1999 /Contact: Anthony P. Walsh, Interim President, V.P. Finance & C.F.O. (604) 985-2572, Fax: (604) 980-0731, Toll Free: 1-800-663-8780, email info(at)miramarmining.com/ (MAE. MAENF) CO: Miramar Mining Corporation ST: British Columbia IN: MNG SU: ERN -30-  