Veris Gold Corp. announced unaudited earnings and operating results for the first quarter ended March 31, 2014. For the quarter, the company reported that gold sales revenue was $35.6 million compared to $45.4 million last year, driven by a 21% (over $330) decrease in the price-per-ounce of gold sold and a 7% decline in the number of ounces sold in first quarter of 2014 compared to first quarter of 2013. Net loss of $13.8 million or $0.09 per basic share was recorded, representing a $7.3 million increased loss from the $6.5 million or $0.06 per basic share recorded in first quarter of 2013, increased loss in 2014 is primarily the result of the following: $1.6 million higher loss from operations resulting from increased depreciation and depletion of $1.7 million driven by the commissioning of both the Starvation Canyon mine and the second tailing facility in mid-2013; a $0.2 million decrease in gross margin resulting from lower gold prices despite a lower cost of production; offset by a $0.2 million reduction in G&A from reduced salaries and benefits; and $4.6 million in increased interest expense primarily due to the recognition of $3.1 million in interest on the Senior Secured Gold Facility, $0.7 million increase in accrued convertible debt interest, and a $0.5 million increase in interest on trade payables due to increased overdue payables balances outstanding. The primary driver of the lower revenue in was the lower gold price achieved on ounces sold.

Total mine production increased 12% from the 205,166 tons mined in first quarter of 2013 to 230,052 tons in first quarter of 2014, with contained gold ounces of 36,854, a 13% increase compared with 32,636 ounces mined in first quarter of 2013 primarily as a result of production from Starvation Canyon mine which commenced operations mid-2013. 27,597 ounces were sold in first quarter of 2014, a 7% decrease from the 29,776 ounces sold in first quarter of 2013 primarily resulting from the decreased production during the quarter. 26,434 payable ounces were produced in the first quarter of 2014, representing a 13% decrease from the 30,461 ounces produced in the three month period ending March 31, 2013 due to the impact of two shutdown periods during the quarter as described below. For first quarter of 2014 the company focused on producing solely from Jerritt Canyon mined ore and did not process any third party ore.

The company continued to make improvements to the operations and meet the compliance requirements of the State, but overall production was significantly down from the targeted 38,000 - 40,000 ounces per quarter with the Jerritt Canyon operations producing 26,434 payable ounces for the quarter. Funds from these gold sales were focused on keeping critical suppliers on site and funding daily operations. No payments were made during this time towards external creditors including the Senior Secured Gold Facility. Despite these operational setbacks the company believes it can sustain a production levels to meet current targeted production of between 160,000 to 170,000 ounces from its three existing underground mines (including Starvation Canyon mine) with potential increases coming from a fourth new underground mine, Saval 4, targeting initial production in the second quarter of 2014. The Saval 4 lies in close proximity to the SSX-Steer mine and will ultimately produce between 200-300 TPD of additional ore with comparable grades to the other mines.