Euro Ressources S.A. reported unaudited earnings results for the first quarter ended March 31, 2019. For the quarter, the company recorded a net profit of EU 3.6 million (EUR 0.057 per share) for the first quarter of 2019 compared to EUR 3.9 million (EUR 0.063 per share) for the first quarter of 2018. Revenues were EUR 5.9 million during the first quarter of 2019, an increase of 5% compared to EUR 5.6 million for the first quarter of 2018. Revenues were mainly attributable to the Rosebel royalty of EUR 6.0 million (first quarter of 2018: EUR 5.5 million). The increase in Revenue was mainly due to the weakened euro (EUR 0.4 million), and higher gold production with 71,536 ounces in the first quarter of 2019 compared to 68,793 ounces during the same period of 2018 (EUR 0.2 million), partially offset by the lower average gold price during the first quarter of 2019 of USD 1,304 per ounce of gold compared to USD 1,329 per ounce of gold during the first quarter of 2018 (EUR 0.1 million).

The Rosebel royalty production is anticipated to be between 323,000 ounces and 339,000 ounces in 2019. In 2019, the Rosebel royalty is expected to provide revenues to the company of between approximately EUR 24.5 million and EUR 25.7 million (USD 28.2 million and USD 29.6 million). These pre-tax numbers assume a gold price of USD 1,225 per ounce and an exchange rate of 1 for USD 1.15. The impact of changes in the average gold price on EURO's annual revenues, based on an estimated production of 331,000 ounces, would be approximately USD 3.2 million for each USD 100 per ounce change in the gold price. The impact of a 5% change in the average foreign exchange rate on EURO's annual revenues would be approximately EUR 1.3 million. EURO's cash flow is expected to be primarily affected by income tax payments.