TORONTO, ONTARIO--(Marketwired - Apr 30, 2015) -

(Expressed in thousands of Canadian dollars unless otherwise indicated)

PhosCan Chemical Corp. (FOS.TO) today released its results for the year ended January 31, 2015.

PhosCan reported a net loss of $79,424 for the year ended January 31, 2015 compared to a net loss of $371 for the previous fiscal year. The increase in net loss of $79,053 was primarily due to an impairment charge on the Martison Phosphate Project. Due to current general market conditions, the market capitalization of the Company and uncertainty in determining future cash flows, management has impaired the value of the Martison Phosphate Project as at January 31, 2015. The Company has recorded a write down to zero of costs incurred for the pre-feasibility study and feasibility study stages totalling $94,745. Of this amount $70,378 relates to the acquisition of Baltic's 50% interest in the Project in 2008. Management continues to retain its 100% interest and will continue to evaluate appropriate financing and strategic alternatives to move the project forward. The impairment charge was $94,745 partially offset by a deferred income tax recovery of $16,039. A deferred tax liability of $16,039 had been recorded as part of the purchase price allocation for Baltic and arose because the purchase price for Baltic allocated to the 50% of the project owned by Baltic exceeded the carry-forward tax values. On the impairment of the project, this deferred tax liability was reversed.

Ignoring the Martison Phosphate Project impairment charge and the associated deferred tax recovery, net loss for the year ended January 21, 2015 was $718, $347 higher than the loss for the previous year. Reasons for the increased loss include higher professional fees for business development activities ($168), higher director's fees ($89), lower interest income ($27) and losses on the sale of marketable securities ($85 versus last year). In addition, the Company did not recognize foreign exchange gains in the current year as it did not trade in US$ ($157 gain recorded in the prior year). Partially offsetting the contributions to the increase in net loss, the Company recorded a lower share-based payments expense of $125 and lower salaries of $56.

For the three months ended January 31, 2015, the net loss was $78,903 versus $127 for the same period of the previous year. Again, the Martison impairment charge accounted for almost all the increase. Otherwise the loss for the fourth quarter of this year was $70 higher than the comparable period last year. Similar to above, higher professional fees and the loss on the sale of marketable securities led to the increased loss, while share-based payments expense and salaries were lower.

Cash, short-term investments and marketable securities were $55.0 million at January 31, 2015 versus $56.2 million at January 31, 2014 and working capital was $54.9 million versus $57.1 million. The decreases were primarily due to $1.1 million of repurchases of the Company's common shares under the normal course issuer bid. Other factors were realized and unrealized losses on marketable securities, capital expenditures on the Martison Project and administrative expenses less interest income.

Capitalized expenditures on the Martison Project were $96.2 million at January 31, 2015 as compared to $95.9 million at January 31, 2013. The increase was primarily due to the expense of maintaining the project in good standing with all stakeholders. At January 31, 2015, the Company recorded the impairment charge referred to above, leaving a balance for the project of $1,456, representing the purchase price of land held by the Company.

During the year, PhosCan continued to originate and evaluate opportunities to acquire and/or invest in assets and businesses with the goal of deploying its cash on hand to create shareholder value.

For a more complete review of the Company's results, copies of PhosCan's financial statements and management's discussion and analysis for the year ended January 31, 2015 may be found on SEDAR (www.sedar.com) or the Company's website at www.phoscan.ca.

About PhosCan

PhosCan owns a 100% interest in the Martison Project and currently has cash, short term investments and marketable securities of approximately $54.5 million. The Company continues to monitor economic conditions for attractively priced acquisitions and investment opportunities that would be accretive to shareholder value.

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of PhosCan, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of financial markets and commodity prices, risks associated with the uncertainty of exploration results and estimates and that the resource potential will be achieved on development projects, results of future metallurgical testing, currency fluctuations, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.