Claude Resources New Release

Year End

For the year ended December 31, 2004, Claude reports a net loss of $.6 million, or $0.01 per share, compared to net earnings in 2003 of $1.8 million, or $0.03 per share. Cash flow from operations, before net change in non-cash working capital items of $6.2 million, or $0.10 per share, compares to $7.7 million, or $0.14 per share, for the same period in 2003.

Gold revenues fell 13% year over year, from $25.8 million in 2003 to $22.5 million this year. Much of this was due to a 19% decline in sales volume, from 50,800 ounces last year to 41,200 ounces in 2004. Partially offsetting the volume decline was an increase in average gold price realized: 2004 - CDN $545 (US $419); 2003 - CDN $508 (US $362). The entire year was characterized by low ore tonnage broken combined with ore grade below historical reserve averages.

As expected, the 12% improvement in mine operating costs from $18.0 million in 2003 to $15.9 million in 2004, was partially a result of the commissioning of the shaft extension in November of 2003 and increased capitalization of costs due to the development of larger stopes. Lower sales volume and the strengthening Canadian dollar against the US dollar resulted in increases in total cash operating costs per ounce from US $253 in 2003 to US $297 this year.

Gross revenues from the Company’s oil, natural gas liquids and natural gas properties improved 4% over last year. Production fell slightly during the year, less than 1% on a barrel of oil equivalent (boe) basis, but was more than offset by a 9% increase in average price realized per boe: 2004 – CDN $42.24 (US $32.46); 2003 – CDN $38.73 (US $27.60). A decline in third party processing revenues and increase in the Alberta properties overriding royalty mitigated gross revenue improvement as net oil and gas revenue remained relatively unchanged.

Oil and gas operating costs increased by 23% from $1.3 million in 2003 to $1.6 million in 2004. This increase was largely due to increased repair and maintenance costs at the Edson Gas plant and Nipisi Unit oil wells.

Fourth Quarter

For the fourth quarter of 2004, Claude reports a net loss of $.3 million compared to net earnings of $.3 million during the same period of 2003. Cash flow from operations before net change in non-cash working capital items during the period of $2.0 million, or $0.03 per share ($0.04 in 2003), is relatively unchanged period over period.

Gold sales volume fell 16% from 13,500 in the fourth quarter of 2003 to 11,300 in the comparative period of 2004. This was a result of breaking fewer tonnes at a grade lower than historic reserve and resource averages. The declining sales volume in the period was partially offset by an increase in average gold prices realized from CDN $517 (US $393) in the fourth quarter of 2003 to CDN $560 (US $459) in the comparative period of this year.

Mine operating costs during the quarter of $4.3 million fell slightly from the prior period however, total cash operating costs per ounce increased by 26% from US $248 in 2003 to US $313 in the fourth quarter of this year. This unit cost increase was due to the lower sales volume combined with the strengthening Canadian vs US dollar exchange rate.

Gross revenues from oil, natural gas liquids and natural gas improved significantly with increases in both production levels and prices realized. Operating costs during the period were $.4 million per quarter.

Outlook

2005 should prove to be an exciting year for the Company. Production is expected to improve to approximately 46,000 ounces as tonnes broken and grade return to historic levels. By the third quarter the Company will have doubled its existing milling capacity to 1,100 tonnes per day. This will enable the Seabee to process throughput from additional ore bodies as well as lessening the impact of grade variations experienced in 2004. In the latter half of the year the Company expects to be in position to extract two separate bulk samples at our Porky and Santoy properties. Success at either or both of these projects could lead to production increase as early as 2006.