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File: Jul 31 2014 aa results 1.docx





TSX Venture Symbol: DIG.H    
www.diggerresources.com

DIGGER RESOURCES INC. ANNOUNCES FINANCIAL AND OPERATING RESULTS FOR THE TWELVE MONTH PERIOD ENDED JULY 31, 2014

CALGARY, October 30, 2014 - Digger Resources Inc. ("DIG" or the "Company") announces for the year ended July 31, 2014,
---> net loss and comprehensive loss amounted to $65,625 ($0.005 per share) compared to net loss and comprehensive loss of
---> $163,720 ($0.014 per share) for the year ended July 31, 2013. For the fourth quarter of the 2014 fiscal year, net los
--->s amounted to $29,283 ($0.002 loss per share) compared with a loss of $67,339 ($0.008 loss per share) for the fourth q
--->uarter of the 2013 fiscal year. 

Financial Highlights - The following table includes selected financial data for the fourth quarter and twelve-month pe
--->riod ended July 31, 2014 and 2013 (in Canadian $ - audited).

Information from the Consolidated Statements of Loss and Comprehensive Loss
 Fourth Quarter Ended July 31, 2014
 Fourth Quarter Ended July 31, 2013
 Twelve month period ended July 31, 2014
 Twelve month period ended July 31, 2013
 
 
 
 
 
 
 
 Revenues & Other Income
 -
 -
 -
 -
 
 Net Income (Loss) and comprehensive loss
 (29,283)
 (67,339)
 (65,625)
 (163,720)
 
 Income (Loss) per share - basic and diluted
 (0.002)
 (0.006)
 (0.005)
 (0.014)
 
 
 
 
 
 
 
 Information from the Consolidated Statements of Cash Flows
  
  
 
 
 
 
 
 
 
 
 
 Cash flows relating to operating activities
 (4,695)
 (4,325)
 (47,223)
 (51,684)
 
 
It should be noted that share-based compensation for the twelve (12) period ended July 31, 2014 was $19,213 as compare
--->d to $111,731 for the same period in 2013 resultant from the issuance of new options in September 2012. Share-based co
--->mpensation represents a non-cash charge resulting from applying the fair value method on stock options issued. Managem
--->ent believes EBITDA (Earnings Before Interest, Income Taxes, Depreciation and Amortization), a measure that is not com
--->pliant with IFRS, to be an important measure as it excludes the effects of items, which primarily reflect the impact o
--->f long-term investment decisions, rather than the performance of the Company's day-to-day operations. EBITDA was ($45,
--->932) for the year ending July 31, 2014 compared to ($51,669) in the year ending July 31, 2013. The adjusted EBITDA des
--->ignates the net income before items not affecting cash, the foreign exchange gain or loss, financial expenses and inte
--->rest income and income taxes. This measure supplies useful and complementary information which allows amongst others t
--->o evaluate profitability and cash flows provided by operations.

The following table explains the reconciliation of the adjusted EBITDA to the net income.


 2014
 2013
 
 Net Income(Loss)
Amortization of property and equipment
Amortization of intangible assets
Amortization of other assets
Share-based payment expense
Foreign exchange loss (gain)
Financial results (financial expenses and interest income)
Income taxes


 (65,625)
       480 


19,213
 (163,720)
680


111,371
 
 
Adjusted EBITA
 (45,932)
 (51,669)
 
 

Additional Information in Regards to the Three and Twelve-month Periods Ended July 31, 2014

The financial information in regards to the three and twelve-month periods ended July 31, 2014 should be read in conju
--->nction with the Company's audited consolidated financial statements for the period ended July 31, 2014 and the Managem
--->ent's Discussion and Analysis dated October 21, 2014. These documents are available at www.sedar.com and on the Compan
--->y's website at www.diggerresources.com.
 
Update

The Company's principal business activity is, through the application of its High Definition Reservoir Geochemistry te
--->chnology ("HDRG"), the development of an effective exploration technique as an adjunct to existing seismic methods and
---> to assist in the environmentally sound discovery and development of new oil and natural gas reserves through the dete
--->ction of metallic and non-metallic ions in near surface soil profiles. 

In 2014 DIG's HDRG leach underwent an order of magnitude improvement in its sensitivity for key elements and isotopes 
--->known to target hydrocarbons in Arabia and North Africa, indeed globally. HDRG now has the ability to measure a number
---> of isotope species at surface, via technology transfer from successful ionic geochemical metal exploration studies. T
--->his potentially provides DIG with an opportunity to 'isotopically fingerprint' and define different sources (ages) of 
--->hydrocarbons. The Company is currently working with ALS Limited ("ALS") on a plan to effectively market HDRG technolog
--->y to third party oil and gas explorers and producers. ALS is an internationally diversified testing services organizat
--->ion employing over 6,000 staff in 160 locations and 40 countries with a presence on every continent, offering a broad 
--->range of analytical services to leading global companies, governments and academic institutions.

In that regard HDRG orientation surveys for five (5) petroleum companies ("IPCs") in the Middle East were completed in
---> 2014. The HDRG orientation surveys consisted of 555 samples to evaluate the potential offered by the HDRG, surveys, o
--->ver both dry and oil filled structures, and to determine whether the results from these HDRG surveys matched, in the e
--->stimation of the IPCs, the subsurface hydrocarbon distribution. The orientation surveys were subjected to a rigorous c
--->hain of custody set of procedures, thereby ensuring that there is no way in which DIG could interfere or tamper with t
--->he collection, shipping, analysis or interpretation of the results from this study. There will be no payment by the IP
--->Cs to DIG for the surveys unless the HDRG survey outcomes include:

1.      Confirmation from the IPCs that HDRG anomalies corresponded with known oil and gas production reservoirs; and
 
2.      Confirmation from the IPCs that the HDRG anomalies showed previously recognized and new element signatures.
 
If the IPCs in fact confirm that the HDRG surveys were a success they will pay to DIG $200 per sample collected and an
--->alyzed within 30 days of said confirmation. This could, assuming that all of the 555 samples collected are analyzed, r
--->esult in revenues to the Company of CDN $111,000 and significant follow-up HDRG surveys. The findings in connection wi
--->th the surveys are now being presented to the IPCs in a report format and their confirmation is expected before the ye
--->ar-end. 

Outlook

The Company will continue to closely monitor its level of cash while targeting a capital structure allowing for the re
--->alization of its business plan including the sales and marketing of its HDRG technology. By increasing its visibility 
--->and brand awareness through its association with ALS, DIG believes that its business will eventually experience sustai
--->ned growth. 

Investor Information

Currently, DIG has 11,349,035 fully issued and outstanding common shares and 950,000 common share stock options outsta
--->nding.

The Company is a reporting issuer in Alberta and British Columbia, trades on the NEX board of the TSX Venture Exchange
---> under the symbol "DIG.H" and its registered office is Suite 700, 595 Burrard Street, Vancouver, B.C. Additional infor
--->mation regarding DIG is available under the Company's profile at www.sedar.com or at the Company's website at www.digg
--->erresources.com.

Disclaimer in Regards to Forward-looking and Cautionary Statements

Certain statements included herein, including those that express management's expectations or estimates of our future 
--->performance constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking 
--->statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by manag
--->ement when formulated, are inherently subject to significant business, economic and competitive uncertainties and cont
--->ingencies. Investors are cautioned not to put undue reliance on forward-looking statements.

For further information please contact:

      "Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of t
--->he TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."