MONTREAL, QUEBEC--(Marketwire - April 11, 2011) - Malaga Inc.(TSX:MLG) is pleased to report record tungsten sales for the firstquarter of 2011. Malaga generated US $4.5 million in tungsten sales, upnearly 55% from US $2.9 million in the fourth quarter of 2010. As ofApril 8, 2011, the APT reference price was US $405 per MTU(i), 23%higher than the price of US $330 at December 31, 2010. This priceincrease is primarily due to strong tungsten demand that exceeds globalsupply. Company management is of the opinion that this supply shortagewill persist throughout 2011. The Company still expects to generate netearnings in the first quarter of 2011 and produce 80,000 MTU in 2011.
(i)MTU = metric tonne unit = 10 kg
Q1 2011 Q4 2010
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Tungsten sales in MTU 18,090 14,879
Tungsten production in MTU 17,493 16,341
"Malaga has surpassed first quarter sales targets, and we aremaintaining our profitability and mine development objectives for 2011,"said Pierre Monet, President of Malaga.
Malaga expects to report its quarterly financial results in the week ofJune 13, 2011, and is issuing a reminder that it is adoptinginternational financial reporting standards (IFRS) in 2011.
ABOUT MALAGA INC.
Malaga Inc. owns and operates a mine in Peru and is one of the fewproducers of tungsten outside of China. Malaga is a low cost producerdue to the availability of hydroelectric power at its Pasto Buenoproperty in Peru. Future plans are to increase production and explorethe property to increase reserves and resources.
FORWARD-LOOKING STATEMENTS
Certain statements in the foregoing may constitute forward-lookingstatements which involve known and unknown risks, uncertainties andother factors that may cause Malaga's actual results, performance orachievements or industry results to be materially different from anyfuture result, performance or achievement expressed or implied by suchforward-looking statements. The information provided reflectsmanagement's current expectations regarding future events andperformance as of the date of this news release.