SEAFIELD REPORTS UPDATED METALLURGICAL RESULTS AND HIGH GOLD RECOVERY RATES AT MIRAFLORES, COLOMBIA

Friday, February 15, 2013

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Toronto, Ontario, February 15, 2013 – Seafield Resources Ltd. (“Seafield” or “the Company”) (TSX-V: SFF) is pleased to report preliminary metallurgical test results of an extensive metallurgical development program for its gold-silver Miraflores Deposit, Quinchía, Colombia, presently underway at Inspectorate Exploration and Mining Services Ltd. (“Inspectorate”), located in Richmond, BC, Canada. This study program was designed and is being supervised by SRK Consulting in Denver (“SRK”) on behalf of Seafield.

Using a small triangle, the chart projects to a target of   below 8 cents, perhaps 6 cents as suggested previously.  Cash, which was at $3 mln. at the beginning of the year should now be closer to $2 mln. assuming a normal burn rate. Over the next month or two things will become rather desperate as new cash is plentiful everywhere but not in this industry. Certainly not if previous warrant financing vehicles in the past have proven to be less than lucrative. Maybe there will be a new discovery?

As of Jan. 1 2013, the company reported cash on hand at 3mln. A month and a bit have passed and at their burn rate of about 8.mln a year, the cash should now be in the order of  2.25 mln. to 2.5 mln. As there are 191 mln shares outstanding (248 mln. fully diluted), the enterprise value based on the cash alone should be about 10+ cents which is where the stock trades. This implies that no value is put on the exploratory activities to date! Not a heart warming sign given very recent drilling results.

The EW take is that we are on this ski slope that can stop anywhere. The gyrations over the past few months suggest some form of triangle forming This is very tentative given the proximity already to zero. Taking the smallest possible degree for this triangle a price of about 6 cents would be indicated.

In my previous blog on this company I mentioned this company has $4 mln. in cash. That is incorrect, they only have $3 mln. which leaves them with 3/8th of a year at the present burn rate, that is 4.5 months! Waiting for a miracle?