UPDATE 1-Methanex Q2 profit misses estimates

July 29 (Reuters) – Methanex (MX.TO), the world’s largest producer of methanol, posted a lower-than-expected quarterly profit late Wednesday, hurt by a lower price environment and a two-month outage at its Atlas plant in Trinidad.

For the second quarter, the company earned net income of $11.7 million, or 13 cents a share, compared with a loss of $5.7 million, or 6 cents a share in the year-ago period.

Analysts were expecting a profit of 17 cents a share, according to Thomson Reuters I/B/E/S.

While revenue jumped 83 percent to $448.5 million, cost of sales and operating expenses also rose 78 percent to $391.9 million. Average realized price per tonne fell to $284 from $305 in the first quarter.

The company said its produced product inventories at the end of the second quarter was lower by 135,000 tonnes compared to the first quarter due to the 60-day outage at its Atlas facility.

This will likely lead to lower sales volumes of produced product and higher cost of sales in the third quarter compared with the second quarter, the company said.

Shares of Methanex closed at C$23.55 Wednesday on Toronto Stock Exchange. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Valerie Lee)

BAY STREET-Rough sailing for Canadian insurers’ results

TORONTO, July 25 (Reuters) – Investors hoping for improved results from Canada’s insurers may want to brace for disappointment, with weak stock markets and lower bond yields seen taking take a bite out of quarterly earnings.

Analysts said the weaker results expected for the second quarter could further pressure shares in a sector that steadily underperformed the broader market in recent months. Though some think the gloominess may be largely baked into stock prices.

Canada’s insurers are highly levered to the performance of financial markets. They hold billions in assets to cover off future obligations such as settlements and annuities.

If those assets decline in value, insurers are forced to build up reserves using cash taken directly from earnings.

The second quarter “is going to be messy for Canadian life insurers,” TD Securities analyst Doug Young said in a note.

“Falling equity markets and declining interest rates created the ‘perfect storm’ for (insurance) business models.”

Sector heavyweights Manulife Financial (MFC.TO), Sun Life Financial (SLF.TO), and Great-West Lifeco (GWO.TO) enjoyed strong results in the first quarter, as stock markets surged while economic optimism boosted sales.

The big players also have wealth management businesses that benefit from higher fees when stock market returns are strong.

But the upward trend has appeared to have stalled, with the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE down 6.2 percent during the quarter.

“The gyrations in the markets, I think have affected opportunities in the market place,” said Brenda Lum, a financial services analyst at rating agency DBRS.

“That plays in specifically for companies that rely on mark to market returns or flow business.”

Another challenge for the insurers has been a decline in Canadian and U.S. bond yields on demand from investors seeking safer assets.

While the trend benefits their existing bond holdings, it also means returns going forward are likely to be lower. And insurers that hold bonds to pay for future liabilities would now have to buy more of them.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ StarMine Comparative Analysis: link.reuters.com/sam39m

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

FLURRY OF CUTS

TD’s Young is one of several analysts that have cut stock ratings and price targets on the sector in recent weeks to take into account the market’s drop during the quarter.

He cut stock targets on all three big players last week, and downgraded Great-West and Manulife — Canada’s largest insurer — to “hold” from “buy”.

He also adjusted his second-quarter estimate on Manulife to a loss of 95 Canadian cents a share, compared with his previous forecast of a profit of 30 Canadian cents.

Manulife is seen as the insurer most tied to equity prices and interest rates, while smaller Industrial Alliance (IAG.TO) — Canada’s No. 4 player, which kicks off results on Tuesday — is seen the least vulnerable to markets.

Canaccord Genuity analyst Mario Mendonca expects Manulife to take a C$1 billion ($960 million) charge related to the weaker equity markets, and a C$300 million charge due to declining long-term corporate bond yields.

CIBC World Markets analyst Robert Sedran chopped his price targets on Great-West and Manulife, while also downgrading Manulife and predicting a loss.

Like other analysts, he said Canada’s banks were likely a better investments for buyers seeking financial stocks.

HOPE AMID THE GLOOM

However, Sedran said insurers’ stocks may already be reflecting the gloomy news and could get a boost if the results aren’t as bad as many are now predicting.

“You have to assume the market is expecting a bad result, so a less bad result will probably be good for the stocks,” he said.

Manulife’s shares have fallen 25 percent since the end of the first quarter and are trading at less than half their value from before the 2008 market crash.

Sun Life and Great-West, which are each expected to report profits, are down 17 percent and 16 percent, respectively, since the end of March. Industrial Alliance is down 1 percent.

The broader market is down 3 percent in that time.

Desjardins Securities analyst Michael Goldberg said in a note that the insurers are trading at a significant discount to their normal valuations. He maintained Manulife as a “top pick” despite the expected weak results. He has Sun Life at “buy” and rates Great-West a “hold”.

($1=$1.04 Canadian) (Reporting by Cameron French, additional reporting by Euan Rocha; Editing by Jeffrey Hodgson and Rob Wilson)

Teck Reports Serious Incident at Greenhills

VANCOUVER, BRITISH COLUMBIA, Jun 29 (MARKET WIRE) —
Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK)
(“Teck”) reported that an explosion occurred in the coal dryer
at Teck’s Greenhills coal mine near Elkford British Columbia today at
approximately 3.15 p.m. All employees, visitors and contractors have been
accounted for. Four employees have been treated for minor smoke
inhalation. Teck has mobilized teams to control a brush fire triggered by
the explosion. The cause of the accident is not known at this time.
Damage to the dryer building is extensive. It is expected to be several
days before the damage can be fully assessed and the extent of the
interruption of production at Greenhills can be estimated.

Regulatory agencies and authorities have been notified.

Teck has an 80% interest in Greenhills. Greenhills’s planned 2010
production was approximately 4.3 million tonnes of metallurgical coal, of
which Teck’s share is approximately 3.4 million tonnes.

About Teck

Teck is a diversified resource company committed to responsible mining
and mineral development with major business units focused on copper,
steelmaking coal, zinc and energy. Headquartered in Vancouver, Canada,
its shares are listed on the Toronto Stock Exchange under the symbols
TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK.
Further information about Teck can be found at: www.teck.com.

Contacts:
Teck Resources Limited
Greg Waller
Vice President, Investor Relations & Strategic Analysis
(604) 699-4014
greg.waller@teck.com
www.teck.com

Copyright 2010, Market Wire, All rights reserved.

Caza Oil & Gas, Inc. Holdings in Company

HOUSTON, TEXAS, Jun 22 (MARKET WIRE) —
Caza Oil & Gas, Inc. (“Caza” or the “Company”) (TSX:
CAZ)(AIM: CAZA) was notified on 21 June 2010, by Millennium Global
Investments, that following its disposal of an aggregate of 1,375,000
Caza common shares of no par value (“Shares”), Millennium
Global Investments now has a holding of 15,500,000 Shares representing
13.0 percent of the Company’s issued share capital.

The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.

Contacts:
Caza Oil & Gas, Inc.
John McGoldrick
Chairman
+1 281 363 4442

Caza Oil & Gas, Inc.
Michael Ford
CEO
+1 432 682 7424
www.cazapetro.com

Westhouse Securities Limited
Tim Feather/Richard Baty
+44 (0)20 7601 6100

Copyright 2010, Market Wire, All rights reserved.

Caza Oil & Gas, Inc. Holdings in Company

HOUSTON, TEXAS, Jun 22 (MARKET WIRE) —
Caza Oil & Gas, Inc. (“Caza” or the “Company”) (TSX:
CAZ)(AIM: CAZA) was notified on 21 June 2010, by Millennium Global
Investments, that following its disposal of an aggregate of 1,375,000
Caza common shares of no par value (“Shares”), Millennium
Global Investments now has a holding of 15,500,000 Shares representing
13.0 percent of the Company’s issued share capital.

The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.

Contacts:
Caza Oil & Gas, Inc.
John McGoldrick
Chairman
+1 281 363 4442

Caza Oil & Gas, Inc.
Michael Ford
CEO
+1 432 682 7424
www.cazapetro.com

Westhouse Securities Limited
Tim Feather/Richard Baty
+44 (0)20 7601 6100

Copyright 2010, Market Wire, All rights reserved.

UPDATE 1-MDS posts wider Q2 loss on charges

(Reuters) – Canadian health sciences company MDS Inc (MDS.TO) reported a wider second-quarter loss from continuing operations, hurt by a restructuring charge and foreign exchange revaluation losses.

The company — which recently completed the sale of its analytical technologies and pharma services businesses — posted a loss of $52 million, or 51 cents a basic share, compared with a loss of $6 million, or 6 cents a share, a year ago.

It said the latest quarter’s loss includes a $14 million corporate restructuring charge and a $27 million non-cash foreign exchange revaluation loss.

Revenue for the quarter dropped 13 percent to $56 million, hurt by foreign exchange valuation.

Analysts, on average, were looking for a loss of 4 cents a share, before items, on revenue of $47.6 million, according to Thomson Reuters I/B/E/S.

Ottawa-based MDS’ shares closed down 1 percent on Monday on the Toronto Stock Exchange. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Anshuman Daga) )

APPOINTMENT OF NOMINATED ADVISOR AND JOINT BROKERS

For Immediate Release
10 June 2010

European Goldfields Limited

APPOINTMENT OF NOMINATED ADVISOR AND JOINT BROKERS

10 June 2010 – European Goldfields Limited (TSX / AIM: EGU) (“European
Goldfields” or the “Company”) is pleased to announce the appointment of
Liberum Capital Limited as Nominated Adviser and Joint Broker and
Evolution Securities Limited as Joint Broker to the Company. These
appointments take place with immediate effect.

Commenting on the appointment, Martyn Konig, Executive Chairman and
President of European Goldfields, said: “We see the appointment of
Liberum Capital and Evolution Securities as key to developing our
London investor base and enhancing London liquidity to complement the
strong trading activity in the Company’s shares on the Toronto Stock
Exchange.This decision follows a review by European Goldfields of its
advisors as it readies itself for development of its key projects in
Romania and Greece.”

About European Goldfields

European Goldfields is a developer-producer with globally significant
gold reserves located within the European Union. The Company generates
cash flow from its 95% owned Stratoni operation, a high grade lead/zinc
/silver mine in North-Eastern Greece and the sale of gold concentrates
from Olympias. European Goldfields will evolve into a mid tier producer
through responsible development of its project pipeline of gold and
base metal deposits at Skouries and Olympias in Greece and Certej in
Romania. The Company plans future growth through development of its
highly prospective exploration portfolio in Greece, Romania and Turkey.

For further information please see the Company’s website at
www.egoldfields.com

For further information please contact:

European Goldfields:
Liberum
Capital Limited

Sally Schofield, VP Investor
Relations Simon Atkinson

e-mail: info@egoldfields.com
Michael Rawlinson

Tel: +44 (0)20 7408 9534
Tel: +44 (0)20
3100 2000

Buchanan Communications:
Evolution Securities Limited

Bobby Morse / Katharine
Sutton Rob Collins

e-mail: bobbym@buchanan.uk.com Tim
Redfern

Tel: +44 (0)20 7466 5000
Tel: +44 (0)20 7071 4300

Forward-looking statements

Certain statements and information contained in this document,
including any information as to the Company’s future financial or
operating performance and other statements that express management’s
expectations or estimates of future performance, constitute
forward-looking information under provisions of Canadian provincial
securities laws. When used in this document, the words
“anticipate”,”expect”, “will”, “intend”, “estimate”, “forecast”, “planned”
and
similar expressions are intended to identify forward-looking statements
or information. Forward-looking statements include, but are not limited
to, the estimation of mineral reserves and resources, the timing and
amount of estimated future production, costs and timing of development
of new deposits, permitting time lines and expectations regarding metal
recovery rates. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable
by management, are inherently subject to significant business, economic
and competitive uncertainties and contingencies.

The Company cautions the reader that such forward-looking statements
involve known and unknown risks, uncertainties and other factors that
may cause the actual financial results, performance or achievements of
the Company to be materially different from its estimated future
results, performance or achievements expressed or implied by those
forward-looking statements and the forward-looking statements are not
guarantees of future performance. These risks, uncertainties and other
factors include, but are not limited to: changes in the price of gold,
base metals or certain other commodities (such as fuel and electricity)
and currencies; uncertainty of mineral reserves, resources, grades and
recovery estimates; uncertainty of future production, capital
expenditures and other costs; currency fluctuations; financing and
additional capital requirements; the successful and timely permitting
of the Company’s Skouries, Olympias and Certej projects; legislative,
political, social or economic developments in the jurisdictions in
which the Company carries on business; operating or technical
difficulties in connection with mining or development activities; the
speculative nature of gold and base metals exploration and development,
including the risks of diminishing quantities or grades of reserves;
the risks normally involved in the exploration, development and mining
business; and risks associated with internal control over financial
reporting. For a more detailed discussion of such risks and material
factors or assumptions underlying these forward-looking statements, see
the Company’s Annual Information Form for the year ended 31 December
2009, filed on SEDAR at www.sedar.com. The Company does not intend, and
does not assume any obligation, to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as required by law.

This information is provided by RNS
The company news service from the London Stock Exchange

END

Contacts:
RNS
Customer
Services
0044-207797-4400
rns@londonstockexchange.com

http://www.rns.com

Copyright 2010, Market Wire, All rights reserved.

Bombardier Aerospace: Bombardier Aerospace Announces its Plan to Acquire ExelTech Hangar

MONTREAL, QUEBEC–(Marketwire – June 9, 2010) – Bombardier announced today the
acceptance of its offer to purchase the Saint-Laurent facilities of ExelTech Aerospace
Inc. following the latter’s bankruptcy. The acquisition will increase Bombardier’s
Global Completion Centre (GCC) capabilities for its Global 5000 and Global Express XRS
business jets. The world-class GCC is a fully integrated completion facility with the
capability to define, engineer, fabricate, certify and deliver customized interior
installations. Bombardier’s GCC is known for its superior quality and workmanship, as
well as for its customer-centric focus.

Bombardier’s Global business jets are recognized throughout the industry as the ultimate
in design and performance. “The acquisition of the ExelTech facility positions us to
better serve our customers with the highest quality completions for our flagship Global
business aircraft,” said Steve Ridolfi, President, Bombardier Business Aircraft.

Bombardier forecasts that the 115,000 sq.-ft. (10,684 sq.-m.) facility will be
operational by the fall of 2010.

The acquisition of this facility from RSM Richter Inc., in its capacity of receiver of
ExelTech Aerospace Inc., is subject to closing conditions including obtaining the
approval of the Superior Court of Quebec, as is customary for this type of transaction.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from commercial
aircraft and business jets to rail transportation equipment, systems and services,
Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the
fiscal year ended Jan. 31, 2010, were $19.4 billion, and its shares are traded on the
Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow
Jones Sustainability World and North America indexes. News and information are available
at www.bombardier.com http://www.bombardier.com .

Bombardier, Global, Global 5000 and Global Express XRS are either registered or
unregistered trademarks of Bombardier Inc. or its subsidiaries.

Contacts:
Bombardier Business Aircraft
Haley Dunne
1-514-855-7595
haley.dunne@aero.bombardier.com mailto:haley.dunne@aero.bombardier.com
www.bombardier.com http://www.bombardier.com

Bombardier Aerospace Announces its Plan to Acquire ExelTech Hangar

MONTREAL, QUEBEC, Jun 09 (MARKET WIRE) —
Bombardier announced today the acceptance of its offer to purchase the
Saint-Laurent facilities of ExelTech Aerospace Inc. following the
latter’s bankruptcy. The acquisition will increase Bombardier’s Global
Completion Centre (GCC) capabilities for its Global 5000 and Global
Express XRS business jets. The world-class GCC is a fully integrated
completion facility with the capability to define, engineer, fabricate,
certify and deliver customized interior installations. Bombardier’s GCC
is known for its superior quality and workmanship, as well as for its
customer-centric focus.

Bombardier’s Global business jets are recognized throughout the industry
as the ultimate in design and performance. “The acquisition of the
ExelTech facility positions us to better serve our customers with the
highest quality completions for our flagship Global business aircraft,”
said Steve Ridolfi, President, Bombardier Business Aircraft.

Bombardier forecasts that the 115,000 sq.-ft. (10,684 sq.-m.) facility
will be operational by the fall of 2010.

The acquisition of this facility from RSM Richter Inc., in its capacity
of receiver of ExelTech Aerospace Inc., is subject to closing conditions
including obtaining the approval of the Superior Court of Quebec, as is
customary for this type of transaction.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from
commercial aircraft and business jets to rail transportation equipment,
systems and services, Bombardier Inc. is a global corporation
headquartered in Canada. Its revenues for the fiscal year ended Jan. 31,
2010, were $19.4 billion, and its shares are traded on the Toronto Stock
Exchange (BBD). Bombardier is listed as an index component to the Dow
Jones Sustainability World and North America indexes. News and
information are available at www.bombardier.com.

Bombardier, Global, Global 5000 and Global Express XRS are either
registered or unregistered trademarks of Bombardier Inc. or its
subsidiaries.

Contacts:
Bombardier Business Aircraft
Haley Dunne
1-514-855-7595
haley.dunne@aero.bombardier.com
www.bombardier.com

Copyright 2010, Market Wire, All rights reserved.

UPDATE 1-Saputo profit gets lift from higher cheese prices

OTTAWA, June 9 (Reuters) – Saputo Inc (SAP.TO) posted a 37 percent jump in quarterly profit on Wednesday, as higher cheese prices and increased efficiency more than offset a drop in revenue at the dairy products company.

Saputo, Canada’s biggest cheese maker, said it earned C$99.1 million ($95.3 million), or 47 Canadian cents a share, in the fourth quarter, ended March 31. That compared with a profit of C$69.2 million, or 33 Canadian cents a share, a year earlier.

Revenue fell 5.2 percent to C$1.38 billion, hurt by a negative currency impact as the Canadian dollar strengthened against the U.S. dollar and other currencies.

Analysts had expected, on average, earnings of 46 Canadian cents a share before items and revenue of C$1.47 billion, according to Thomson Reuters I/B/E/S.

Montreal-based Saputo said that its recently announced plans to consolidate its Toronto distribution center are expected to be completed this autumn and will generate after-tax savings of about C$6.5 million annually.

The company also said it will pursue expansion in fiscal 2011 through both internal growth and acquisitions. It plans to invest in projects to boost capacity in its Canadian specialty cheese facilities.

It will seek volume growth at its diary operations in Argentina, but expects a difficult year in Europe because of higher milk costs.

Acquisition-hungry Saputo bought the Neilson Diary division of George Weston Ltd (WN.TO) for C$465 million in late 2008, gaining its line of milk products, dairy drinks, cream products and nondairy creamers, butter, yogurt and juices.

Earlier that year, it bought Wisconsin-based Alto Diary.

Saputo shares, which are down about 4 percent this year, were off 5 Canadian cents at C$29.35 on the Toronto Stock Exchange early Wednesday afternoon.

($1=$1.04 Canadian) (Reporting by Susan Taylor; editing by Rob Wilson)

Bombardier Aerospace Announces its Plan to Acquire ExelTech Hangar

MONTREAL, QUEBEC, Jun 09 (MARKET WIRE) —
Bombardier announced today the acceptance of its offer to purchase the
Saint-Laurent facilities of ExelTech Aerospace Inc. following the
latter’s bankruptcy. The acquisition will increase Bombardier’s Global
Completion Centre (GCC) capabilities for its Global 5000 and Global
Express XRS business jets. The world-class GCC is a fully integrated
completion facility with the capability to define, engineer, fabricate,
certify and deliver customized interior installations. Bombardier’s GCC
is known for its superior quality and workmanship, as well as for its
customer-centric focus.

Bombardier’s Global business jets are recognized throughout the industry
as the ultimate in design and performance. “The acquisition of the
ExelTech facility positions us to better serve our customers with the
highest quality completions for our flagship Global business
aircraft,” said Steve Ridolfi, President, Bombardier Business
Aircraft.

Bombardier forecasts that the 115,000 sq.-ft. (10,684 sq.-m.) facility
will be operational by the fall of 2010.

The acquisition of this facility from RSM Richter Inc., in its capacity
of receiver of ExelTech Aerospace Inc., is subject to closing conditions
including obtaining the approval of the Superior Court of Quebec, as is
customary for this type of transaction.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from
commercial aircraft and business jets to rail transportation equipment,
systems and services, Bombardier Inc. is a global corporation
headquartered in Canada. Its revenues for the fiscal year ended Jan. 31,
2010, were $19.4 billion, and its shares are traded on the Toronto Stock
Exchange (BBD). Bombardier is listed as an index component to the Dow
Jones Sustainability World and North America indexes. News and
information are available at www.bombardier.com.

Bombardier, Global, Global 5000 and Global Express XRS are either
registered or unregistered trademarks of Bombardier Inc. or its
subsidiaries.

Contacts:
Bombardier Business Aircraft
Haley Dunne
1-514-855-7595
haley.dunne@aero.bombardier.com
www.bombardier.com

Copyright 2010, Market Wire, All rights reserved.

UPDATE 2-Grain handler Viterra’s profit falls 30 pct

Manitoba, June 9 (Reuters) – Quarterly profit at Viterra Inc (VT.TO), Canada’s biggest grain handler, fell 30 percent, pulled down by lower world grain prices, but earnings per share were slightly ahead of expectations.

Profit for the second quarter ended April 30 dropped to C$18.4 million ($17.7 million), or 5 Canadian cents a share, from C$26.3 million, or 11 Canadian cents, a year earlier, Viterra said on Wednesday.

Revenue rose 28 percent to C$2 billion, reflecting the major purchase of Australia’s ABB Grain last September.

Analysts, on average, had expected earnings of 4 Canadian cents a share on revenue of C$2 billion, according to Thomson Reuters I/B/E/S.

Viterra’s performance generally surpassed expectations due to stronger than expected demand for fertilizer and seed, said analyst Robert Winslow of Wellington West Capital Markets.

The company’s shares were up 5.2 percent at C$8.17 on the Toronto Stock Exchange early on Wednesday afternoon.

Viterra shares are down 17 percent on the year as excessively wet weather on the Canadian Prairies and poor Australian exports have battered the stock, leaving some investors to conclude better conditions lie ahead.

Chief Executive Mayo Schmidt called Viterra’s first-half performance solid, with strong North American agri-product sales and results from Australian operations adding to revenue and gross profit.

Australian grain movement picked up in May and should continue in June, while South Australian crops have sufficient moisture to give seeding a good start, he said.

In Canada, the company should see solid grain movement through the end of the year, despite excessively wet weather in Saskatchewan, where Viterra is based, Schmidt said.

The company is aggressively pursuing sales to Southeast Asia, starting with its acquisition in Australia. Viterra also said this year it would build a joint-venture canola crushing plant in China and has bulked up its U.S. processing operations with the pending acquisition of 21st Century Grain and purchase of Dakota Growers Pasta Company.

($1=$1.04 Canadian) (Reporting by Rod Nickel; editing by Peter Galloway)

Just Energy Exchange Corp. Announces June Dividend

TORONTO, ONTARIO, Jun 04 (MARKET WIRE) —
Just Energy Exchange Corp. (the “Corporation”) (TSX: JEX) filed
notice with the Toronto Stock Exchange today announcing its regular
dividend for June. A dividend of $0.06889/exchangeable share, series 1
(the “Exchangeable Shares”) ($0.82667 annually) will be paid on
June 30th, 2010 to holders of Exchangeable Shares of record at the close
of business on June 15th, 2010. In accordance with the articles of the
Corporation, the amount of this dividend is equal to 66 2/3% of the
amount of the distribution declared on June 4th, 2010 by Just Energy
Income Fund (“Just Energy”) on its trust units (“Trust
Units”) on a per unit basis. The Exchangeable Shares trade on the
Toronto Stock Exchange under the symbol “JEX”.

Just Energy Exchange Corp.

On July 1, 2009, Just Energy Exchange Corp., a wholly owned subsidiary of
Just Energy, acquired all of the issued and outstanding common shares
(“Universal Shares”) of Universal Energy Group Ltd.
(“Universal”) pursuant to an arrangement (the
“Arrangement”) under section 192 of the Canada Business
Corporations Act and subsequently amalgamated with Universal to form the
Corporation. Under the Arrangement, Universal shareholders received 0.58
of an Exchangeable Share for each Universal Share held. Each Exchangeable
Share is exchangeable for a Trust Unit of Just Energy on a one-for-one
basis at any time at the option of the holder.

Just Energy’s business involves the sale of natural gas and/or
electricity to residential and commercial customers under long-term
fixed-price and price-protected contracts through its subsidiaries. By
fixing the price of natural gas or electricity under its fixed-price or
price-protected program contracts for a period of up to five years, Just
Energy’s customers offset their exposure to changes in the price of these
essential commodities. Just Energy, which commenced business in 1997,
derives its margin or gross profit from the difference between the fixed
price at which it is able to sell the commodities to its customers and
the fixed price at which it purchases the associated volumes from its
suppliers.

Just Energy also offers “green’ products through its Just Green
energy products. The electricity Just Green product offers the customer
the option of having all or a portion of his or her electricity sourced
from renewable green sources such as wind, run of the river hydro or
biomass. The gas Just Green product offers carbon offset credits which
will allow the customer to reduce or eliminate the carbon footprint for
their home or business. Management believes that these products will not
only add to profits, but also increase sales receptivity and improve
renewal rates.

In addition, through National Home Services, Just Energy sells and rents
high efficiency and tankless waterheaters and through Terra Grain Fuels,
Just Energy produces and sells wheat-based ethanol.

Forward-Looking Statements

The Corporation’s press releases may contain forward-looking statements
including statements pertaining to dividend payments, customer revenues
and margins, customer additions and renewals, customer attrition,
customer consumption levels, distributable cash and treatment under
governmental regulatory regimes. These statements are based on current
expectations that involve a number of risks and uncertainties which could
cause actual results to differ from those anticipated. These risks
include, but are not limited to, levels of customer natural gas and
electricity consumption, rates of customer additions and renewals, rates
of customer attrition, fluctuations in natural gas and electricity
prices, changes in regulatory regimes and decisions by regulatory
authorities, competition and dependence on certain suppliers. Additional
information on these and other factors that could affect the
Corporation’s operations, financial results or dividend levels are
included in Just Energy’s annual information form and other reports of
Just Energy and the Corporation on file with Canadian securities
regulatory authorities which can be accessed through the SEDAR website at
www.sedar.com or through Just Energy’s website at www.je-un.ca.

The Toronto Stock Exchange has neither approved nor disapproved of the
contents of this release.

Contacts:
Just Energy Exchange Corp.
Ms. Rebecca MacDonald
Executive Chair
(416) 367-2872

Just Energy Exchange Corp.
Ken Hartwick C.A.
President and Chief Executive Officer
(905) 795-3557

Just Energy Exchange Corp.
Beth Summers C.A.
Chief Financial Officer
(905) 795-4206
www.je-un.ca

Copyright 2010, Market Wire, All rights reserved.

Just Energy Income Fund Announces June Distribution

TORONTO, ONTARIO, Jun 04 (MARKET WIRE) —
Just Energy Income Fund (TSX: JE.UN) filed notice with the Toronto Stock
Exchange today announcing its regular distribution for June. A
distribution of $0.10333/unit ($1.24 annually) will be paid on June 30th,
2010 to Unitholders of record at the close of business on June 15th,
2010. The Units trade on the Toronto Stock Exchange under the symbol
“JE.UN”.

About the Fund

Just Energy’s business involves the sale of natural gas and/or
electricity to residential and commercial customers under long-term
fixed-price and price-protected contracts. By fixing the price of natural
gas or electricity under its fixed-price or price-protected program
contracts for a period of up to five years, Just Energy’s customers
offset their exposure to changes in the price of these essential
commodities. Just Energy, which commenced business in 1997, derives its
margin or gross profit from the difference between the fixed price at
which it is able to sell the commodities to its customers and the fixed
price at which it purchases the associated volumes from its suppliers.

Just Energy also offers “green” products through its Just Green
program. The electricity Just Green product offers the customer the
option of having all or a portion of his or her electricity sourced from
renewable green sources such as wind, run of the river hydro or biomass.
The gas Just Green product offers carbon offset credits which will allow
the customer to reduce or eliminate the carbon footprint for their home
or business. Management believes that these products will not only add to
profits, but also increase sales receptivity and improve renewal rates.

In addition, through National Home Services, Just Energy sells and rents
high efficiency and tankless waterheaters and, through Terra Grain Fuels
Inc., produces and sells wheat-based ethanol.

Forward-Looking Statements

This press release may contain forward – looking statements. These
statements are based on current expectations that involve a number of
risks and uncertainties which could cause actual results to differ from
those anticipated. Additional information on these and other factors that
could affect Just Energy’s operations, financial results or distribution
levels following completion of the Acquisition, are included in Just
Energy’s annual information form and other reports on file with Canadian
securities regulatory authorities which can be accessed through the SEDAR
website at www.sedar.com or through Just Energy’s website at
www.justenergy.com.

The Toronto Stock Exchange has neither approved nor disapproved of the
contents of this release.

Contacts:
Just Energy Income Fund
Ms. Rebecca MacDonald
Executive Chair
(416) 367-2872

Just Energy Income Fund
Mr. Ken Hartwick, C.A.
Chief Executive Officer & President
(905) 795-3557

Just Energy Income Fund
Ms. Beth Summers, C.A.
Chief Financial Officer
(905) 795-4206

Copyright 2010, Market Wire, All rights reserved.

Sonde Resources Corp. Announces Results of Its Annual and Special Meeting of Shareholders, Implementation of Share

CALGARY, ALBERTA, Jun 04 (MARKET WIRE) —
Sonde Resources Corp. (the “Company”) (TSX: SNG) (NYSE Amex:
SNG) is pleased to announce that the following matters put before the
annual and special meeting of holders (“Shareholders”) of
common shares (“Common Shares”) of the Company held on June 3,
2010 were approved:

1. the election of Marvin M. Chronister, Dr. James Funk, Kerry R. Brittain,
Dr. William J.F. Roach, Gregory G. Turnbull and James H.T. Riddell as
directors of the Company for the ensuing year;
2. the appointment of Deloitte & Touche llp as auditors of the Company;
3. the name change from “Canadian Superior Energy Inc.” to
“Sonde Resources
Corp.”;
4. the consolidation (the “Consolidation”) of the issued and
outstanding
Common Shares on the basis of one post-Consolidation Common Share for
every five pre-Consolidation Common Shares;
5. the adoption of a new shareholder rights plan of the Company; and
6. the confirmation of the new By-Law Number 1 of the Company.

Accordingly, the Company has filed articles of amendment to implement
the Consolidation and to change the name of the Company to “Sonde
Resources Corp.”

The Company expects that the post-Consolidation Common Shares will begin
trading on the Toronto Stock Exchange on or about June 8, 2010 and on the
NYSE Amex on or about June 7, 2010. The post-Consolidation Common Shares
will trade on each exchange under the new symbol “SOQ”.

Letters of transmittal with respect to the Consolidation were mailed to
all registered Shareholders on May 7, 2010, copies of which are available
on the System for Electronic Document Analysis and Retrieval (SEDAR) at
www.sedar.com and the Electronic Data Gathering, Analysis and Retrieval
(EDGAR) system at www.sec.gov. To receive certificates representing
post-Consolidation Common Shares, registered Shareholders should follow
the instructions set out in the letter of transmittal and send their
certificates representing pre-Consolidation Common Shares, together with
a properly executed letter of transmittal, to Valiant Trust Company, the
registrar and transfer agent of the Company. Beneficial Shareholders
should contact their nominees with any questions regarding the procedures
applicable to them.

Following the Annual and Special Meeting of Shareholders today the
Company made a presentation which is available on our new website
www.sonderesources.com.

2010 Operational Highlights

– After declining to a Q1 average of 2,779 boe/d, Company production
increased to 3,127 boe/d for the week ending May 19, under-pinned by a
significant oil and gas discovery in the Eaglesham Wabamun trend, which
came online in May producing 2.4 mmcf/d and 100 bbls/d.

– Highlighting management’s expectation that production growth will
continue in Q3, in early May the Company began completion and/or tie-in
operations on 23 previously-suspended wells, including a new well at
Westerose testing from combined Mannville-Glauc-Ellerslie zones at a
combined rate exceeding 4 mmcf /d.

– Particularly encouraging from the winter program is a nearly 25%
increase to the Company’s daily liquids production, highlighting the
potential management sees for positive near-term growth in Company-wide
oil and condensate production.

– In Tunisia, the Company signed a rig commitment agreement to take
operational possession of the ENSCO 105 jack-up rig during the fourth
quarter of 2010 for drilling the Zarat 1-North appraisal well on the 7th
of November Block.

– In Trinidad, the Company began evaluation of 7 new offshore lease blocks
that will be offered for bid in August.

– The Liberty LNG regassification project is on budget and moving forward
with submission of a construction permit planned for late August of this
year. The Company continues to pursue possible joint ventures related to
this project.

Second Half 2010 Plans and Strategy

Western Canada

The Company is committed to increasing shareholder value on its nearly
400,000 gross acres of Western Canada holdings, with strong emphasis on
growing high-value oil and condensate production. After a thorough review
of these assets, management has identified an extensive list of
behind-pipe, infill and step-out locations capable of supporting a
multi-year development and growth program. The latter half of 2010 is
expected to mark the beginning of a substantial increase in Western
Canada development and exploration activity, with a three-part strategy
focused on core properties at Drumheller, Kaybob-Windfall and Boundary
Lake-Eaglesham:

– Development of high value, low-risk/low-finding and development costs
behind-pipe and infill reserves to increase cash flow in support of our
Canada and international growth programs, and to increase the value of
proved and probable reserves (gas-oriented). Management has identified
approximately 60 locations that will be targeted in 2010 and during the
first half of 2011, with potential for adding 1,600 boe/d in new
production.

– Growth in liquids production through re-development of existing oil
pools, with a focus on the Mannville “I” pool at Drumheller. Included
in
this program are plans for re-stimulating low-rate or suspended wells,
infill drilling using horizontal wells and multi-stage frac technology,
and initiation of a waterflood program.

– Growth in liquids production through exploration for and exploitation of
oil resource plays on existing lands. Included in this program are
“proof-of-concept” re-entry’s of suspended wells owned by the Company,
followed by infill and step-out drilling where successful.

International

The Company is committed to capturing the high-impact
growth potential of its Tunisia/Libya and Trinidad/Tobago offshore oil
and gas assets, and its Liberty Natural Gas LNG project on the US East
Coast. Proposed plans for 2010 and the first half of 2011 include:

– Drilling of the Zarat 1-North appraisal well (offshore Tunisia) in late
Q4, with potential for significant value and reserve additions given
success.

– Participation in development plans for our offshore Trinidad assets as
commissioned by our Operator partner for the block.

– Submission of construction permits by Liberty Natural Gas with respect
to the Liberty LNG regassification project expected by late August,
2010.

Canadian Superior Energy Inc. is a Calgary, Alberta, Canada based
diversified global energy company engaged in the exploration and
production of oil and natural gas and in the development of a liquefied
natural gas (“LNG”) project. Its operations are located
offshore Trinidad and Tobago, Western Canada, North Africa, and offshore
Eastern United States. See Canadian Superior’s website at www.cansup.com
to review further detail on Canadian Superior’s operations.

Boe Presentation – Production information is commonly reported in units
of barrel of oil equivalent (“boe”). For purposes of computing
such units, natural gas is converted to equivalent barrels of oil using a
conversion factor of six thousand cubic feet to one barrel of oil. This
conversion ratio of 6:1 is based on an energy equivalent conversion
method primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. Such disclosure of boes may be
misleading, particularly if used in isolation. Readers should be aware
that historical results are not necessarily indicative of future
performance.

This news release contains “forward-looking information”
(within the meaning of applicable Canadian securities laws) and
“forward -looking statements” (within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995). Such statements or
information are identified with words such as “anticipate”,
“believe”, “expect”, “plan”,
“intend”, “potential”, “estimate”,
“propose”, “project” or similar words suggesting
future outcomes or statements regarding an outlook. Such statements
include, among others, those concerning the Company’s anticipated
operational plans and activities including our development and
exploration program in Western Canada, the exploration, development and
drilling programs in Trinidad and in Tunisia and Libya, future
construction plans and the submission of construction permits at the
Liberty LNG regassification project, the expected continued production
growth and strategy of the Company, and the expectation of successful
future results.

Such forward-looking information or statements are based on a number of
risks, uncertainties and assumptions which may cause actual results or
other expectations to differ materially from those anticipated and which
may prove to be incorrect. Assumptions have been made regarding, among
other things, operating conditions, management’s expectations regarding
future growth, plans for and result of drilling activity, availability of
capital, and capital and other expenditures. Actual results could differ
materially due to a number of factors, including, without limitation,
operational risks in development, exploration and production; delays or
changes in plans with respect to exploration or development projects or
capital expenditures; the uncertainty of reserve and resource estimates,
the uncertainty of estimates and projections in relation to production,
risks affecting the Company’s ability to execute projects and market oil
and natural gas, risks inherent in operating in foreign jurisdictions,
the ability to attract key personnel, including the hiring of a Chief
Executive Officer, and the inability to raise additional capital.
Additional assumptions and risks are set out in detail in the Company’s
Annual Information Form, available on SEDAR at www.sedar.com., and the
Company’s annual reports on Form 40-F or Form 20-F on file with the U.S.
Securities and Exchange Commission.

Although the Company believes that the expectations reflected in the
forward-looking information or statements are reasonable, prospective
investors in the Company’s securities should not place undue reliance on
forward-looking statements because the Company can provide no assurance
that such expectations will prove to be correct. Forward-looking
information and statements contained in this news release is as of the
date of this news release and the Company assumes no obligation to update
or revise this forward-looking information except as required by law.

Contacts:
Canadian Superior Energy Inc.
Investor Relations
(403) 294-1411
(403) 216-2374 (FAX)
www.cansup.com

Canadian Superior Energy Inc.
Suite 3200, 500 – 4th Avenue S.W.
Calgary, Alberta, Canada
T2P 2V6

Copyright 2010, Market Wire, All rights reserved.

Zarlink Announces Recommencement of Normal Course Issuer Bid

OTTAWA, CANADA, Jun 03 (MARKET WIRE) —
Zarlink Semiconductor Inc. (TSX: ZL) today announced that the Toronto
Stock Exchange (TSX) has approved the common share buyback program
authorizing the Company to repurchase up to 11,874,330 common shares,
representing approximately 10 percent of its public float of 118,743,306
common shares as of May 31, 2010. As at May 31, 2010, Zarlink had
121,606,782 issued and outstanding common shares.

The NCIB will allow Zarlink to repurchase up to 10 percent of its public
float of common shares using available cash during a 12-month period from
June 7, 2010 to June 6, 2011. The timing and exact number of common
shares purchased under the bid will be at Zarlink’s discretion, will
depend on market conditions, and may be suspended or discontinued at any
time. All shares purchased by Zarlink under the bid will be cancelled.

Purchases under the bid will be made at the prevailing market price
through the facilities of TSX. The average daily trading volume of
Zarlink over the last six complete calendar months was 407,108 common
shares (the “ADTV”). Under TSX rules, Zarlink may purchase up
to 25% of the ADTV (or 101,777 common shares) per trading day. To the
knowledge of Zarlink, after reasonable inquiry, no director, senior
officer or any of their associates, or any person acting jointly or in
concert with Zarlink, currently intends to sell common shares under the
issuer bid.

Zarlink purchased, through the facilities of TSX, 921,900 common shares
out of a maximum permitted amount of 11,971,633 common shares under a
previous normal course issuer bid which expired May 29, 2010 at an
average price of $0.9157 per share. All common shares purchased by
Zarlink under the bid were cancelled.

“We believe that the stock repurchase program emphasizes our belief
in the long-term value of Zarlink and our commitment to unlock
shareholder value,” said Mr. Adam Chowaniec, Chairman of the Board,
Zarlink Semiconductor.

Zarlink may enter into an automatic share purchase plan with a broker in
order to facilitate repurchases of its Common Shares under its normal
course issuer bid. Under the automatic share purchase plan, Zarlink’s
broker may repurchase shares under the normal course issuer bid at any
time including, without limitation, when Zarlink would ordinarily not be
permitted to due to possession of material non-public information or
blackout periods imposed by Zarlink on insiders. Purchases would be made
by Zarlink’s broker based upon the parameters prescribed by the TSX and
applicable Canadian and United States securities laws and the terms of
the parties’ written agreement.

As previously disclosed, American Appraisal Canada Inc. (“American
Appraisal”) was engaged by Zarlink’s Board of Directors to prepare a
valuation report for Zarlink’s formal issuer bid launched on June 8, 2009
under which it purchased $21,000 principal amount of the convertible
debentures (the “Valuation”). The Valuation, which is dated May
29, 2009, contains American Appraisal’s opinion that, based on the scope
of its review and subject to the assumptions, restrictions and
limitations provided therein, the fair market value of the convertible
debentures, as of May 18, 2009, falls within the range (per $100
principal amount) of $51.10 to $58.60. The Valuation is available at
www.sedar.com.

About Zarlink Semiconductor

Zarlink Semiconductor delivers world-leading, mixed-signal chip
technologies for a broad range of communication and medical applications.
The company’s core capabilities include network timing solutions that
manage time-sensitive communication applications over wireless and wired
networks, line circuit products supporting high-quality voice services
over broadband connections, and ultra low-power radios enabling new
wireless medical devices and therapies. Serving the world’s largest
original equipment manufacturers, Zarlink’s highly integrated chip
solutions help customers simplify design, lower costs and reach market
quickly. For more information, visit www.zarlink.com.

Shareholders and other individuals wishing to receive, free of charge,
copies of the reports filed with the U.S. Securities and Exchange
Commission and Canadian Securities Regulatory Authorities, should visit
the Company’s web site at www.zarlink.com or contact Investor Relations.

Certain statements in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements involve known and unknown
risks, uncertainties, and other factors which may cause the actual
results, performance or achievements of the Company to be materially
different from any future results, performance, or achievements expressed
or implied by such forward-looking statements. Such risks, uncertainties
and assumptions include, among others, the following: our dependence on
the successful development and market introduction of new products; our
ability to integrate any business, technologies, product lines or
services that we have or will acquire; our dependence on revenue
generation from our legacy products in order to fund development of our
new products; current market conditions, including the lack of liquidity
in the markets and economic slowdown, may increase our operating costs or
reduce our revenue, thereby negatively impacting our operating results;
our ability to operate profitably and generate positive cash flows in the
future; the impact of the current economic crisis on our suppliers and
customers and our ability to transfer parts to other suppliers; our
dependence on our foundry suppliers and third-party subcontractors; order
cancellations and deferrals by our customers; our substantial
indebtedness could adversely affect our financial position; the cost and
accounting implications of compliance with new accounting standards; and
other factors referenced in our Annual Report on Form 20-F. Investors are
encouraged to consider the risks detailed in this filing.

Zarlink and the Zarlink Semiconductor logo are trademarks of Zarlink
Semiconductor Inc.

Contacts:
Zarlink Semiconductor Inc.
Ed Goffin
Media Relations and Investor Relations
613-270-7112
edward.goffin@zarlink.com
www.zarlink.com

Copyright 2010, Market Wire, All rights reserved.

Canadian Zinc Corporation Announces Normal Course Issuer Bid

VANCOUVER, BRITISH COLUMBIA, Jun 01 (MARKET WIRE) —
Canadian Zinc Corporation (TSX: CZN)(OTCBB: CZICF) (the
“Company” or “Canadian Zinc”) announces that it
intends to renew, subject to regulatory approval, its normal course
issuer bid (the “Bid”) pursuant to which the Company may
purchase up to a maximum of 5,000,000 common shares in the capital of the
Company (the “Shares”), representing approximately 4.2% of the
issued and outstanding shares of the Company of 118,900,563 as at May 31,
2010.

The Company is of the view that the recent market prices of the Shares do
not properly reflect the underlying value of the Company’s assets. No
insiders of the Company intend to participate in the Bid.

The Company intends to commence the renewed Bid on or about June 3, 2010
and terminate the Bid no later than May 31, 2011. Pursuant to TSX
policies, daily purchases made by the Company may not exceed 33,038
shares, which is 25% of the average daily trading volume of 132,151
Shares on the TSX over the past six months, subject to certain prescribed
exceptions. Purchases pursuant to the Bid will be made from time to time
through the facilities of the Toronto Stock Exchange. Shares purchased
will be paid for with cash available from the Company’s working capital,
which at March 31, 2010, was approximately $6.6 million. All Shares
purchased pursuant to the Bid will be cancelled and returned to treasury.

During the course of Company’s normal course issuer bid from June 1, 2009
to May 31, 2010, the Company did not purchase any shares.

About Canadian Zinc:

The Company’s principal focus is its efforts to advance the Prairie Creek
Mine, a zinc/lead/silver property located in the Northwest Territories of
Canada, towards production. The Prairie Creek Mine is partially developed
with an existing 1,000 tonne per day mill and related infrastructure.

Cautionary Statement – Forward Looking Information

This press release contains certain forward-looking information,
including the intended completion of a normal course issuer bid. This
forward looking information includes, or may be based upon, estimates,
forecasts, and statements as to management’s expectations with respect
to, among other things, the availability of funds to complete purchases
of common shares under the normal course issuer bid and the share price
of the Company. There can be no assurances that such statements will
prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements.

Contacts:
Canadian Zinc Corporation
John F. Kearney
Chairman
(416) 263-6686
(416) 368-5344 (FAX)

Canadian Zinc Corporation
Alan B. Taylor
VP Exploration & Chief Operating Officer
(604) 688-2001 or Toll Free: 1-866-688-2001
(604) 688-2043 (FAX)
invest@canadianzinc.com
www.canadianzinc.com

Copyright 2010, Market Wire, All rights reserved.

UPDATE 1-Husky drills prolific South China Sea gas well

CALGARY, Alberta, May 31 (Reuters) – Husky Energy Inc (HSE.TO) said on Monday that an appraisal well of a South China Sea natural gas discovery could produce up to 70 million cubic feet a day, a prolific volume that could lift the value of its proposed spinoff company.

Husky, majority-owned by Hong Kong magnate Li Ka-shing, said the well at the Liuhua 29-1 discovery on Block 29/26 tested at 55 million cubic feet a day, a volume that was restricted by the equipment.

It could pump 60 million to 70 million cubic feet a day, the Canadian-based company estimated.

“The results from this well demonstrate the quality of the Liuhua reservoir,” John Lau, Husky’s outgoing chief executive, said in a statement.

He said further drilling would be needed to find out more about the reservoir and obtain the data needed to work out how best to develop the field.

Husky is readying a plan to spin off its Asian assets into a separate company before the end of this year. Projects like Liuhua and the huge Liwan gas field in the region are seen as marquee assets for the spinoff.

Lau has said he will run the new company. Asim Ghosh is due to take over as Husky CEO on Tuesday.

The appraisal well, the first to follow Husky’s Liuhua find in January, was drilled to 2,930 meters (9,613 feet) in water depth of 765 meters (2,510 feet).

It is located 43 km (27 miles) northeast of the company’s first big discovery on the block and 20 km (12 miles) northeast of the Liuhua 34-2 field.

Chinese state-owned CNOOC Ltd (0883.HK) has the right to participate in any development projects in the region for up to 51 percent working interest.

Husky shares rose 33 Canadian cents, or 1 percent, to C$26.66 on the Toronto Stock Exchange. Li-controlled companies, such as Hutchison Whampoa Ltd (0013.HK) and Cheung Kong (Holdings) (0001.HK), own 72 percent of Husky. (1=$1.04 Canadian) (Reporting by Jeffrey Jones; editing by Janet Guttsman)

CANADA STOCKS-TSX closes higher on GDP data, commodities

May 31 (Reuters) – Toronto’s main stock index closed higher on Monday as firm commodity prices and robust first-quarter GDP data underpinned market confidence.

Stocks | Global Markets

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE unofficially closed up 61.36 points, or 0.53 percent, at 11,732.80. (Reporting by Claire Sibonney; Editing by Peter Galloway)

UPDATE 2-North American Palladium restarts palladium mine

BANGALORE, April 14 (Reuters) – Canadian precious metals company North American Palladium Ltd (PDL.TO) said Wednesday it restarted palladium production at its flagship Lac des Iles (LDI) mine in Ontario, sending shares up 5 percent.

The company, which owns the Sleeping Giant gold mine in northwestern Quebec apart from LDI, had put the LDI mine under maintenance in October 2008.

“The restart is well timed to capitalize on the recent increase in the price of palladium, which now exceeds $520 per ounce,” the company, which expects to produce 140,000 ounces of palladium per year, said.

Palladium, which is mainly used in auto catalysts, has jumped over 200 percent since December 2008.

As on April 14, palladium jumped to its highest in two years on fund buying driven by hopes that demand for platinum group metals (PGMs) could outstrip supply. [ID:nLDE63D0F2]

“For them (the company) it means that they are going to have positive cash flow, which is always a good thing…,” Cormark Securities analyst Matthew O’Keefe, who has a buy rating on the company’s stock, said by phone.

The company also renewed its smelting contract with Xstrata Nickel, a unit of Anglo-Swiss miner Xstrata Plc (XTA.L), and said a new feature of the contract entitles it to receive advance payments of 70 percent within 60 days following the month of concentrate delivery.

“They won’t need to have a lot of working capital and it will be easier on their cash flow,” O’Keefe said.

Ore production from the Roby Underground zone at the LDI mine is currently about 2,000 tons per day, and is expected to increase to its target rate of 2,600 tons per day by May 1, the company added.

Shares of the company were trading up 5 percent at C$4.79 Wednesday morning on the Toronto Stock Exchange. They touched a high of C$4.87 earlier in the day. (Reporting by Arnika Thakur in Bangalore; Editing by Don Sebastian)