WGI Heavy Minerals Announces Q3 Net Earnings of $0.30 million and YTD Net Earnings of $0.55 million

www.wgiheavyminerals.com

COEUR D'ALENE, ID, Nov. 9, 2011 /CNW/ - WGI Heavy Minerals, Incorporated ("WGI") (TSX: WG) today reported net earnings for the quarter ending September 30, 2011 of $0.013 per share ($0.30 million) compared to earnings of $0.015 per share ($0.34 million) for the same quarter in 2010.

In the third quarter of 2011, earnings from operations increased 23.6% to $0.53 million compared to $0.43 million in Q3 2010.   The improvement was primarily driven by an increase in sales volume and margin preservation aided by a 3.7% reduction in sales and general and administrative ("SG&A") expenses.  In turn these savings were somewhat offset by higher exploration costs and foreign exchange losses. Consolidated net income for the quarter was $0.30 million ($0.013 earnings per share) compared to income of $0.34 million in the third quarter of 2010 (earnings per share of $0.015).

For the first nine months of 2011, earnings from operations increased 26.2% to $1.21 million from $0.96 million in the same nine-month period in 2010.  This improvement was primarily due to an increase in sales volume across all product lines offset partially by a modest increase in SG&A expenses of 0.8% and slightly higher exploration costs.  In an effort to functionally align and streamline the Company's efforts in Europe, the Company restructured the management of its German subsidiary, Kominex in the first quarter of this year.  The restructuring resulted in the removal of the resident Managing Director for Kominex and a non-recurring cost of $0.32 million.  Consolidated net income for the period was $0.55 million ($0.023 earnings per share) compared to income of $0.68 million in the first nine months of 2010 (earnings per share of $0.029).

"Globally, improved demand has stimulated revenue growth across all segments" said Greg Emerson, President and CEO.  "However, competitive pressure from ongoing product oversupply and the pursuit of market share among competitors has created a drag on pricing."

Outlook
WGI continues to execute its strategy to increase market share in 2011 and 2012. Garnet and waterjet business in 2011 is expected to grow through new customer additions and increased volumes of abrasives and waterjet parts due to improving markets. Logistic costs and fuel prices remain volatile and, along with pricing competition, are expected to continue to keep pressure on margins through the remaining quarter.

WGI continues to focus on operational improvements across all divisions, in addition to the identification of new resources through expanded mineral exploration. The Company will look to partner or invest with other companies developing smaller metal and mineral deposits not attractive to the larger mining companies. WGI continues to investigate larger regional garnet/ilmenite deposits where the Company can use its mining and distribution expertise to bring new multi mineral resources into operation.

Through the Company's subsidiary, International Waterjet Parts, we will be active in expanding our waterjet parts offering to keep current with evolving OEM designs. The Company will continue its efforts to cross sell both garnet and waterjet parts to customers of either product thereby increasing our value to the customer.  In addition the Company looks to expand its global reach by adding to its sales force and strengthening its sales and marketing department through the addition of experienced personnel.

The Company continues to strive to keep general and administrative costs in line with revenues. As a percentage of revenues general and administrative costs are expected to decline in 2011 while exploration costs are expected to increase. Based on performance to date our results will be slightly lower than 2010 due to price competition, worldwide economic weakness and the restructuring charge that was taken in the first quarter of this year.

Selected Financial Information
The selected quarterly information of operating results and financial position should be read in conjunction with the unaudited consolidated financial statements of the Company for the three-month period ended September 30, 2011, as well as the accompanying notes, (the "Consolidated Financial Statements") which are reported in U.S. dollars and have been prepared in accordance with International Financial Reporting Standards ("IFRS").

About WGI
The principal business of WGI Heavy Minerals, Incorporated is the processing and sale of industrial abrasive minerals and the sourcing, assembly and sale of ultra-high pressure waterjet cutting machine replacement parts and components.  The Company, through its subsidiaries, markets and sells abrasive products and services and waterjet replacement parts globally.

This news release contains forward-looking statements concerning the business, operations, and financial performance and condition of WGI Heavy Minerals, Incorporated. A number of the matters discussed and statements made in the press release contain forward-looking statements reflecting current expectations regarding future assets. When used in this press release, the words "believe", "anticipate", "intend", "estimate", "expect", "project", and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations and are naturally subject to risks, uncertainties, and changes in circumstances beyond management's control that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause such differences include but are not limited to: exploration and development risks; risks related to permits and title to property; risks related to foreign countries and regulatory requirements; operating hazards; foreign currency fluctuations; competition; fluctuations in the market price of mineral commodities and transportation costs; uncertainty as to calculations of mineral deposit estimates; uninsured risks; and dependence upon key management personnel and executives.  Actual results may differ materially from those expressed here. You should not place undue reliance on such forward-looking statements. The Company is under no obligation to update or alter such forward-looking statements, whether as a result of new information, future events, or otherwise.

Expressed in U.S. dollars unless otherwise stated.