Key Financial Points

• Nickel price at lowest levels since 2008 financial crisis, despite this the mine remained profitable
• Revenues: EUR6.82 million/CDN$ 8.49 million (Q2 2012: EUR8.86 million/CDN$ 11.38 million)
• Operating Income* : EUR0.82 million/CDN$ 1.02 million (Q2 2012: EUR2.07 million/CDN$ 2.66 million)
• Net income of EUR0.28 million/CDN$ 0.35 million (Q2 2012: EUR1.31 million/CDN$1.68 million)

*Operating Income is calculated here as sales less operating costs and excludes depletion, depreciation and amortisation.

The condensed consolidated interim financial statements, and management’s discussion and analysis have been filed with the Canadian securities regulatory authorities. Complete results will also be available on SEDAR and on the Company’s Website. All currency amounts are expressed in euros (EUR) unless otherwise stated.

Key Operational Points

• Production of 535.9 tonnes of nickel in concentrate
• Jul 2012 – New parallel gold zone discovered at Hirsikangas (2.14m @ 14.25 g/t Au)
• Aug 2012 – First bedrock gold discovery at Kangaskylä, up-ice from high grade boulder train
• Sep 2012 – Multiple drill holes intersect significant gold mineralisation at Antikanperä discovery

SELECTED FINANCIAL INFORMATION

The following selected financial information in the table that follows has been derived from the condensed consolidated interim 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 net income for the quarter ended September 30, 2012 of EUR283,220, which compares with EUR549,884 or EURnil per share reported for the same period of fiscal 2011. The principal causes of these quarterly and annual variations are explained after the ‘Financial Highlights’ table following:

* Includes stock based compensation
** Includes interest received, interest paid and foreign exchange (gain) loss
*** Current assets less current liabilities

• The Hitura mine produced 535.9 tonnes of nickel in concentrate, 98% of planned production, and EUR6,820,832 in revenue.
• Cash decreased by EUR441,746 over the previous quarter to EUR3,050,931 as a result of positive cash flows generated by Hitura operations offset by mine investment, exploration and development costs and a payment made to Jinchuan in respect of preference shares redeemed.
• General and administrative expenses were largely in line with the corresponding quarter in fiscal 2011 at EUR247,248 (Q3 2011: EUR256,340).
• Other expense in the quarter was EUR52,729 compared to income of EUR154,263 in Q3 2011 as a consequence of foreign exchange losses and lower fair value gain on the warrants derivative liability.
• Accounts receivable of EUR1,567,811 compares to EUR1,160,621 in Q2. Inventory decreased to EUR1,184,771 from EUR1,613,551 in Q2 as a result of improved procurement procedures. The increase in prepaid expenses to EUR234,959 from EUR81,173 in Q2 relates to an overpayment of preference share dividends.
• Capital assets increased to EUR16,608,195 (Q2: EUR16,588,078) as a consequence of development work at the Hitura mine and on the Company’s gold properties.
• Current and long term liabilities decreased to EUR12,966,691 (Q2: EUR13,732,131) due to a reduction in accounts payable, mark-to-market of electricity contracts, deferred tax liability and the expiry of the warrants liability.

Operations Outlook

The results of the most recent quarter demonstrate the company’s ability to adapt to a very challenging nickel market. A focus on cost reduction has allowed operations to remain profitable in a very low nickel price environment while continuing to finance the company’s move into gold production. For the fourth quarter of 2012, nickel markets are expected to remain challenging, and continuing to impact mine revenues. Nickel pricing is expected to improve from current levels over the next six months as significant production has been removed from the market due to project delays, mine closures and the loss of the higher cost nickel pig-iron production. The forecast nickel surplus for 2013, in management’s opinion, will not materialise and the market will return to balance, with a subsequent re-rating of the nickel price. Should this happen Belvedere will be well positioned to exploit the price increases from a lower cost base.

On the gold front the company continues to generate and explore new targets and make new discoveries, such as the Antikanperä and Kangaskylä gold discoveries announced this quarter and demonstrated new potential on its Hirsikangas gold property with the discovery of a new high-grade parallel zone of mineralisation. The Antikanperä discovery in particular is showing significant promise with five out of five drill holes to date intersecting significant widths and grades of mineralisation. The Kopsa development property is advancing through to feasibility studies, with bulk metallurgical testing well underway. Subsequent to the quarter end a NI 43-101 compliant resource has been published. The final metallurgical results will determine the optimised process route and lead to the Feasibility study to be completed in 2013.

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 future cash flows and operating costs) 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 currently produces 2200t of nickel in concentrate/year from the Hitura nickel mine in Central Finland. The Company has a number of advanced gold projects in close proximity to the Hitura mine.