Brisbane, Sept 30, 2008 (ABN Newswire) - North Queensland Metals (ASX:NQM) is pleased to release its Annual Report for 2008 incorporating the financial statements of the Company.

Key Points:

- Inaugural Net Profit after tax for 2007/08 of $1.7 million

- Company transformed into significant gold producer

- Strong positive cashflow to fund Herberton developments and further exploration

Importantly, this is the first report since NQM acquired 60% of the Pajingo Gold Mine the operation of which on a revised, sustainable basis has enabled the Company to report an inaugural net profit after tax of $1.7 million, slightly above the forecast range.

NQM is now recognised as a significant gold producer with production of more than 70,000 ounces forecast for 2008/09.

The Pajingo operation from the outset produced a positive cashflow and this has continued to strengthen as the company transitions from the previous owner's operational methods to its own.

This provides the Company with the ability to internally finance the ongoing development of the Herberton Copper-Silver-Tin-Indium Project. Marketing and financing options are being explored for this project, and testwork on Australian processing of concentrates is proceeding.

Additionally, the cashflow from Pajingo allows the Company to pursue exploration targets within its highly prospective gold and base metals tenements.

Download the full 2008 Annual Report from:
http://www.nqm.com.au