March 5, 2004

Claude Reports
2003 Financial Results

Year End

As a result of improved gold sales volume and average prices realized in both gold and natural gas, Claude reported net earnings of $1.9 million, or $0.04 per share, for the year ended December 31, 2003. This compared to a net loss of $1.6 million, or $0.03 per share, in 2002. Cash flow from operations, before net change in non-cash working capital items of $7.8 million, or $0.14 per share, compares to $3.8 million, or $0.08 per share, for the same period in 2002.

Gold sales of 50,800 ounces in 2003 represents a 22% increase over the 41,500 ounces sold in 2002. This was largely a result of successful development between the 510 metre and 650 metre levels. The average realized gold price per ounce in 2003 of CDN $508 (US $362) versus CDN $490 (US $312) in 2002 also contributed to revenue growth.

The $2.0 million increase in Seabee mine operating costs was largely a function of the mine operating below the 510 metre level prior to the extension of the shaft to 600 metres. Despite increased volumes, total cash operating costs per ounce increased slightly from US $246 in 2002 to US $253 this year as the Canadian dollar significantly strengthened against the US dollar.

The Company's oil, natural gas liquids and gas properties continue to positively affect cash flow with sales volumes of 224,000 barrels of oil equivalent (boe) in 2003 relatively unchanged from last year. However, average prices realized increased 37% from CDN $28.25 (US $17.99) per boe in 2002 to CDN $38.73 (US $27.60) per boe this year.

During the year, the Company commissioned the shaft extension from the 395 metre level to 600 metre level and increased its underground diamond drilling concurrent with underground mine development. As a result it is expected that both gold sales volume and mining costs will continue to track historic averages.

Fourth Quarter

Claude reported net earnings of $.3 million, or $0.01 per share, in the fourth quarter of 2003 compared to net earnings of $1.7 million, or $0.03 per share, in the comparable quarter of 2002. Cash flow from operations before net change in non-cash working capital items of $2.1 million, or $0.04 per share compares to $3.3 million, or $0.07 per share, for the same period in 2002.

Gold sales volume dropped in the fourth quarter to 13,500 ounces this quarter from 15,000 ounces in 2002. This was partially offset by an increase in the average gold price realized from CDN $506 (US $322) in the fourth quarter of 2002 to CDN $517 (US $393) for the fourth quarter of 2003. Total mine operating costs were relatively unchanged period over period at $4.4 million however total cash operating costs per ounce rose by 32% from US $187 in 2002 to US $248 in the fourth quarter of this year. This increase was partially a result of lower sales however the strengthening Canadian vs. US dollar was primarily responsible for the unit cost increase.

Oil, natural gas liquids and gas production fell slightly in the fourth quarter from 59,576 boe in 2002 to 55,867 boe this quarter.

Claude’s balance sheet is free of long-term debt obligations and the Company continues to have limited exposure to gold derivative contracts.

 

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Consolidated Statements of Retained Earnings
(Canadian Dollars in Thousands)
				Three Months Ended					Years Ended
				December 31					December 31
				2003		2002			2003		2002
Retained earnings, beginning of period
		As previously reported	$	5,294	$	1,963		$	3,672	$	5,181
		Effect of change in accounting policy (Note 2)		947		1,024			995		1,093
As restated				6,241		2,987			4,667		6,274
Net earnings (loss)				319		1,680			1,893		(1,607)
Retained earnings, end of period			$	6,560	$	4,667		$	6,560	$	4,667
				====		====			====		====

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Consolidated Balance Sheets
(Canadian Dollars in Thousands)
					December 31			December 31
					2003			2002
Assets
	Current assets:
		Cash		$	3,259			-
		Short-term investments			-			300
		Receivables			2,512			2,174
		Inventories			3,801			3,366
		Shrinkage stope platform costs (Note 3)			6,678			5,852
		Prepaids			259			328
					16,509			12,020
	Oil and gas properties				4,766			3,411
	Mineral properties				26,932			17,338
	Investments				1,660			619
	Deposits for reclamation costs				1,950			1,425
				$	51,817			34,813
					=========			=========
Liabilities and Shareholders' Equity
	Current liabilities:
		Bank indebtedness		$	-			1,628
		Payables and accrued liabilities			4,535			1,940
		Demand loan			-			110
		Current portiion of obligations under capital lease			54			51
					4,589			3,729
	Obligations under capital lease				59			122
	Asset retirement obligations				1,903			1,770
	Shareholders' equity:
		Share capital (note4)			38,706			24,525
		Retained earnings			6,560			4,667
					45,266			29,192