Belvedere Reports Financial and Operating Results for First Quarter of 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 30, 2013) - Belvedere Resources Limited (TSX VENTURE:BEL) ("The Company") is pleased to report financial and operating results for the quarter ending March 31, 2013.

David Pym (CEO) comments, "Despite good performance at the mine in Q1, low nickel prices have subsequently forced the suspension of mining operations at Hitura. Management is closely monitoring the situation, and should nickel prices improve sufficiently during the lay-off period, the Company intends to re-commence production. Meanwhile, management continues to focus on bringing forward its gold projects, and in particular the Kopsa gold project, for which the results of several key studies are expected over the coming months."

Key Q1 2013 Financial Points

• Operating Income of EUR0.03 million (CDN$ 0.04 million)*
• Revenues of EUR6.00 million (CDN$ 8.02 million)
• Net loss of EUR0.35 million (CDN$ 0.46 million)

* Operating Income is calculated as sales less operating costs and excludes depletion, depreciation and amortisation. This is a non-IFRS measure and differs from operating income discussed elsewhere in this MD&A.

Key Q1 2013 Operational Points

• Production of 554 tonnes of nickel in concentrate
• Jan 2013 - 2000m drilling campaign commenced at Antikanperä
• Mar 2013 - confirms gold mineralisation along 2.5 km strike at Antikanperä

SELECTED FINANCIAL INFORMATION

The following selected annual financial information in the table that follows has been derived from the interim condensed consolidated financial statements of the Company for the periods indicated and should be read in conjunction with such statements and notes thereto. Those financial statements have been prepared in accordance with International Financial Reporting Standards.

The Company generated a net loss for the quarter ended March 31, 2013 of EUR346,465 or EURnil per share, which compares with net income of EUR1,313,725 or EUR0.01 per share reported for the same period of fiscal 2012. The principal causes of these quarterly and annual variations are explained after the 'Financial Highlights' table following:

Selected Financial Information	Quarter	Quarter
All amounts in EUR000's, except	ended	ended
shares and per share figures	31 March	31 March
	2013	2012
Revenue	6,002	8,855
Operating Expenses	5,966	7,087
G&A Expenses *	230	292
Other (income) and expenses	227	192
(Gain) loss on fair valuation of warrants liability	-	42
Income tax recovery	(75)	(72)
Net income (loss)	(346)	1,314
Earnings (loss) per share (basic and diluted)	-	0.01
Cash Flow (used) from operating activities	111	2,599
Cash Flow (used) from investing activities	(373)	(789)
Cash Flow (used) from financing activities	-	(53)
Net increase (decrease) in cash	(278)	1,674
Cash at end of period	1,932	3,182
Total Assets	24,028	24,505
Total Liabilities	13,192	13,321
Shareholders' equity	10,836	11,184
Working Capital **	(2,350)	(93)
Weighted average number of shares outstanding	151,812,289	151,812,289
Dividends per Share	-	-

* Including stock based compensation

** Current assets less current liabilities (includes provisions for the redemption of preferred shares according to the redemption schedule. The figure excluding possible redemptions of preferred shares is a surplus of EUR1,386 (2012: EUR2,196)

During the first quarter:

• The Hitura mine produced 554 tonnes of nickel in concentrate and revenue of EUR6,002,050 compared to the planned production of 581 tonnes, 4% below forecast.
• Cash decreased to EUR1,932,110 (Q4 2012: EUR2,210,369) as a result of reduced cash flows generated by Hitura operations.
• General and administrative expenses were lower at EUR230,513 (2012: EUR291,948) as a consequence of reduced audit, consulting and public relation costs, and payment of non-accrued 2011 directors' fees in 2012.
• Other (Income) and Expenses were largely in line with the corresponding quarter in fiscal 2012 at EUR227,130 (2012: EUR214,834).
• Accounts receivable decreased to EUR828,534 during the quarter (2012: EUR985,200). Inventory increased to EUR1,498,159 (2012: EUR1,356,363) due to the purchase of spares and supplies. Prepaid expenses EUR63,327 (2012: EUR113,356) decreased as a consequence of cash received in the quarter in respect of shipping costs.
• Capital assets increased slightly to EUR16,862,120 (2012: EUR16,782,217) as a consequence of development work at the Hitura mine and on the Company's gold properties.
• Current and long term liabilities increased to EUR13,192,048 (2012: EUR12,895,289). The increases in accounts payable, preferred share liability due to adverse movement in USD/EUR exchange rates and accretion of the asset retirement obligation were partially offset by a reduction in deferred tax liability.

OUTLOOK

Despite good performance from nickel operations during the quarter, low nickel prices continue to impact profitability at the Hitura mine site and reduce operational flexibility. Subsequent to the end of the quarter, nickel prices retreated to new four year lows, and on May 23rd the company announced that it is suspending mining operations at the Hitura Nickel Mine. The Company initiated a 2 week notice period for the commencement of temporary lay-offs of up to 60 of the 69 persons employed at the Mine. The layoff period will continue for up to 90 days per employee. Key staff will continue to be employed to manage the care and maintenance of the mine and mill facilities during the suspension.

Management continue to actively monitor the nickel price and, should the nickel price improve during the lay off period, the company will recall the employees and re-commence production. Capital requirements to resume operations are expected to be minimal and cash flows from any operational restart would be expected to resume in late Q3. If by the end of the lay-off period (late August 2013) nickel prices have not improved to support a full restart, the company will be forced to consider its options including a limited restart of operations to mine high grade ores and/or consider full closure.

Between now and late August, the Company will also be concentrating on the metallurgical, environmental and engineering studies involved with assessing the viability of processing the nearby Kopsa gold copper ores through the Hitura mill. Several key studies will also be completed by this time which will aid and better inform decision-making both on the economic viability and likely capital requirements associated with exploitation of the Kopsa gold deposit which would be supported by the Hitura mill.

The next several months are a crucial period for the company and management is actively engaged in monitoring developments in the Nickel market, at Hitura, progressing the Company's gold interests and, in particular, closely managing cash expenditures during this period of uncertainty. The Company has sufficient cash resources to continue trading for the next twelve months, however, it is likely capital may be required to complete economic studies and fast track development of the Kopsa gold property even if nickel operations do or do not resume following the lay-off period.

Forward Looking Statement: Some of the statements contained herein may be forward-looking statements, which involve known and unknown risks and uncertainties. Without limitation, statements regarding future plans and objectives of the Company (including statements relating to possible re-commencement of production at Hitura, and the timelines and results of expected studies for the Kopsa gold project) are forward-looking statements that involve various degrees of risk. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements.

About Belvedere: Belvedere Resources Limited is a mining company incorporated in British Columbia with a primary focus on nickel, gold, cobalt and copper in Finland. The Company produced 2,200t of nickel in concentrate in 2012 from it's Hitura nickel mine in Central Finland. The Company has a number of advanced gold projects in close proximity to the Hitura mine.

BELVEDERE RESOURCES LTD.

David Pym, CEO