TORONTO, Nov. 12 /CNW/ - Wesdome Gold Mines Ltd (WDO:TSX) ("Wesdome" or the "Company") is pleased to report its financial and operating results from its Canadian operations for the third quarter ended September 30, 2008 and its year to date (YTD) results. This information should be read in conjunction with the Company's third quarter financial statements, notes to financial statements and Management's Discussion and Analysis.

The Company owns the Eagle River gold mining operation in Wawa, Ontario and the Kiena Mining Complex in Val d'Or, Quebec. The Eagle River mine commenced commercial production on January 1, 1996 and the Kiena mine on August 1, 2006.

HIGHLIGHTS
-   Quarterly gold sales average $902 per ounce - up 28% from 2007
-   Quarterly Net Income rises to $2.2 million
-   Quarterly Cash Flow from Operations rises to $5.6 million
-   Quarterly Revenue $22.2 million - up 35% from 2007
-   YTD Revenue $59.1 million - up 44% from 2007
-   YTD Cash Flow from operations $12.1 million
-   Costs held steady

REVENUE AND EARNINGS

During the third quarter, 2008, revenue, cash flow from operations and earnings increased dramatically due to higher gold prices. Net income rose to $2.2 million in the third quarter, 2008, compared to a net loss of $3.0 million in the third quarter, 2007. Likewise, cash flow from operations increased to $5.6 million for the quarter compared to $0.5 million in 2007. Revenue rose to $22.2 million from $16.4 million in 2007 due to higher gold prices. Gold sales averaged $902 per ounce in the third quarter, 2008 compared to $712 per ounce in the third quarter, 2007.

For the nine month period year to date, net income stood at $3.1 million. Cash flows from operations totalled $12.1 million and revenue climbed to $59.1 million.

RESULTS OF OPERATIONS
                    Three Months Ended            Nine Months Ended
                          Sept 30                      Sept 30
                       2008         2007(x)          2008         2007(x)
               ----------------------------------------------------------
Eagle River
 Mine
Tonnes milled        31,935         35,381         86,892         89,281
  Recovered
   grade (g/t)         11.8            8.7           13.7           11.4
  Ounces
   produced          12,139          9,893         38,359         32,821
  Ounces
   sold              12,063         11,900         34,500         27,800
  Bullion
   inventory
   (oz)               7,326          9,886          7,326          9,886
  Bullion
   revenue           10,811          8,468         31,495         20,549
  - Operating
   + development
   costs
   (thousands)        8,147          6,382         22,182         17,813
-------------------------------------------------------------------------
  Mine
   operating
   profit (loss)
   ($m)(xx)           2,664          2,086          9,313          2,736
  Gold price
   realized
   ($Cdn/oz)            895            710            913            739
(x) Includes Mishi pit production of 21, 568 tonnes at 3.5 gAu/tonne for
    2,402 ounces.
Kiena Mine Complex
  Tonnes milled      62,587         63,281        191,735        221,744
  Recovered
   grade (g/t)          5.8            3.5            4.6            3.7
  Ounces
   produced          11,582          7,145         28,556         26,595
  Ounces sold        12,400         11,100         29,900         27,200
  Bullion
   inventory
   (oz)               1,865          2,100          1,865          2,100
  Bullion
   revenue           11,244          7,911         27,337         20,161
  - Operating
   + development
   costs
   (thousands)        7,740          8,801         22,530         21,514
-------------------------------------------------------------------------
  Mine
   operating
   profit (loss)
   ($m)(xx)           3,504           (890)         4,807         (1,353)
  Gold price
   realized
   ($Cdn/oz)            905            712            914            741
Total
  Production
   (oz)              23,721         17,038         66,915         59,416
  Sales (oz)         24,463         23,000         64,400         55,000
  Bullion
   inventory
   (oz)               9,191         11,986          9,191         11,986
  Bullion
   revenue           22,055         16,379         58,832         40,710
  - Operating
   + development
   costs
   (thousands)       15,887         15,183         44,712         39,327
-------------------------------------------------------------------------
  Mine
   operating
   profit ($m)(xx)    6,168          1,196         14,120          1,383
  Gold price
   realized
   ($Cdn/oz)            902            712            913            740
(xx)   The Company has included in this report certain non-GAAP
       performance measures, including mine operating profit (loss) and
       operating and development costs to applicable sales. These
       measures are not defined under GAAP and therefore should not be
       considered in isolation or as an alternative to or more meaningful
       than, net income (loss) or cash flow from operating activities as
       determined in accordance with GAAP as an indicator of our
       financial performance or liquidity. The Company believes that, in
       addition to conventional measures prepared in accordance with
       GAAP, certain investors use this information to evaluate the
       Company's performance and ability to generate cash flow.

During the third quarter 2008, combined operations produced 23,721 ounces of gold. Bullion revenues climbed to $22 million on sales of 24,433 ounces at an average price of $902 Cdn per ounce. At September 30, 2008, gold inventory stood at 9,191 ounces. This is carried on the balance sheet at cost. The costs and revenue for this inventory will be recognized in the fiscal period in which it is sold.

Revenue exceeded operating and development costs resulting in a mine operating profit(x) of $6.2 million for the third quarter and $14.1 million for the first nine months of 2008. In addition to direct operating costs, other costs, including royalty payments, corporate and general and interest costs, amounted to $0.8 million in the third quarter and $2.5 million for the first nine months.

Costs remained relatively stable year over year in the face of general cost inflation experienced in the mining industry. In fact, on a unit basis, costs applicable to sales, or cash costs, decreased to $645 Cdn per ounce in the third quarter and $694 Cdn per ounce year to date. Subsequent to the end of the quarter, tight labour markets and input costs such as diesel and steel have eased considerably in international markets. These trends, if sustained, will help reduce costs further but there may be a time-lag in realizing these reductions at the mine level.

The highlight of the quarter was continued improvement at the Kiena operations. The recovered grade increased 40% compared to the first half of 2008 and tight cost control measures contained costs at last year's levels. Subsequent to quarter end, a potentially significant new find located 3 kilometres east of the shaft was announced on October 14, 2008. Preliminary drilling results included intersections of 4.45 gAu/tonne over 5.1 metres and 6.82 gAu/tonne over 7.7 metres. Drilling is continuing on this exciting prospect with the purpose of defining its geometry and dimensions.

LIQUIDITY

At September 30, 2008, the Company had working capital of $8.3 million. During the third quarter, capital expenditures totalled $4.9 million. In addition, gold inventories of 9,191 ounces were carried at $6.5 million at September 30, 2008. Their market value at September 30, 2008, was $8.6 million.

Production for the remainder of 2008 should continue to generate cash flow, even at gold prices below those currently being realized. Exploration expenditures will ease as the surface drilling winds down.

OUTLOOK

We forecast steady production in the upcoming quarter and expect to comfortably exceed our 2008 production forecast of 80,000 ounces.

To date, gold sales have averaged $913 Cdn per ounce, $173 Cdn per ounce higher than last year's average of $740 Cdn per ounce. By controlling costs, Wesdome has demonstrated its leverage to the gold price.

Our surface exploration program has identified a brand new gold occurrence in a previously untested part of the Val d'Or mining camp and we are hopeful that ongoing drilling will continue to excite.

Since September, extremely volatile markets and economic conditions have made future planning and forecasts very difficult. We believe fundamentally that the evolving conditions are strongly supportive of much higher future gold prices and possibly shorter term relief from the escalating cost pressures that the industry has faced since 2004.

The recent volatility in the gold price has been buffered by equally volatile $US/$Cdn exchange rates resulting in relative stability in the $900 Cdn per ounce range. We anticipate a strong fall/winter rally. Operations are generating strong cash flow and we intend to proceed prudently and do not have a current need to access very tight capital markets.

ABOUT WESDOME

Wesdome is an established Canadian gold producer with wholly-owned mining and milling complexes located in Val d'Or, Quebec and Wawa, Ontario. It has been producing gold continually for 20 years on an unhedged basis and to date has produced in excess of 1.0 million ounces.