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Press release from CNW Group

Canada Fluorspar Announces Re-filing of Financial Information

Wednesday, February 23, 2011

Canada Fluorspar Announces Re-filing of Financial Information16:50 EST Wednesday, February 23, 2011TSX Venture ExchangeTrading Symbol: CFITORONTO, Feb. 23 /CNW/ - Canada Fluorspar Inc. (TSX-V: CFI) (the "Company") announces that it will file restated financial statements, restated management discussion and analysis as well as certifications of the Chief Executive Officer and the Chief Financial Officer for the three month period ended March 31, 2010 and the six month period ended June 30, 2010. The Company will also file restated management discussion and analysis as well as certifications of the Chief Executive Officer and the Chief Financial Officer for the year ended December 31, 2009 and the nine month period ended September 30, 2010. The refilings are at the request of the Ontario Securities Commission as a result of their review of the Company's filed financial information in connection with the recent clearance of the Company's long form prospectus (the "Prospectus") on February 14, 2011 to expand on the disclosure previously filed.The financial statements for the periods ended March 31, 2010 and June 30, 2010 each contain comparative figures to the same periods ended in 2009. The figures for the comparative 2009 periods will be restated to reflect certain timing changes in the recognition of flow-through expenditures and certain expenses related to the Company's qualifying transaction that closed on April 15, 2009. The items that are impacted by the restatement were originally accounted for during the quarter ended December 31, 2009 however they should have been accounted for during the quarters ended March 31, 2009 and June 30, 2009 as discussed below. On January 14, 2011 the Company re-filed its September 30, 2010 financial statements to account for the same timing issue.The Company's financial statements for the periods ended March 31, 2010 and June 30,2010 are unaffected as a result of this restatement.The substance of the changes are as follows:March 31, 2010Flow Through Share RenouncementDuring the period from January 1, 2009 to March 31, 2009, the Company renounced Canadian exploration expense ("CEE") expenditures of $2,000,541 relating to its flow through financing. The Company has restated the March 31, 2009 balance sheet and statement of earnings for the period ended March 31, 2009 to record the future income tax benefits renounced on flow through shares resulting in a decrease in capital stock of $580,157, an increase in future income tax recovery of $580,157.June 30, 2010Flow Through Share RenouncementDuring the period from January 1, 2009 to June 30, 2009, the Company renounced CEE expenditures of $3,251,724 relating to its flow through financing. The Company has restated the June 30, 2009 balance sheet and statement of earnings for the period ended June 30, 2009 to record the future income tax benefits renounced on flow through shares resulting in a decrease in capital stock of $943,000 and an increase future income tax recovery of $943,000.Reverse takeover transactionAs a result of the share exchange on the amalgamation of the predecessor companies Burin Fluorspar Ltd. and Rivera Capital Corp., control of the combined companies passed to the former shareholders of Burin, which is identified as the acquirer for accounting purposes. The Company has restated its statement of deficit for the period ended June 30, 2009 to account for the acquisition of Rivera as a recapitalization of Burin. As a result, the net assets of Rivera are charged against the deficit resulting in an increase of $477,858 in the opening deficit for the period, a decrease in other assets of $330,731 and corresponding adjustment to the deficit to show effect of the allocation of the purchase price for $147,127.Other adjustmentsThe Company has also restated its expenses with an increase in accounting, audit and legal expense of $18,731 and an increase in accrued accounts payable of $18,731.The Management Discussion and Analysis for year ended December 31, 2009 and the periods ended March 31, 2010; June 30, 2010 and September 30, 2010 have been revised and re-filed to include a discussion of the restatements described above and to expand on the discussion and analysis previously filed in order to reflect the disclosure included in the Prospectus.ABOUT CANADA FLUORSPAR INC.The Company is a specialty mineral resource company engaged in the development and production of fluorspar deposits at its property located in St. Lawrence, Newfoundland, Canada, and is moving forward to reactivate existing underground fluorspar mines, expand an existing mill, construct a new, environmentally-sound Tailings Management Facility and build a new deep-water marine terminal in the outer St. Lawrence Harbor for the export of fluorspar concentrate product.For more information please see: www.canadafluorspar.comNeither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined inthe policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy ofthis release.This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.Advisory Regarding Forward Looking StatementsThis press release contains forward-looking statements which include, but are not limited to: current development and operating objectives and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with mining development, such as loss of market, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to generate sufficient cash flow to meet its current and future obligations, regulatory approvals affecting construction and mining operations; as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements.The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.For further information: On behalf of Canada Fluorspar Inc.:Lindsay Gorrill President and CEO Canada Fluorspar Inc. Tel: 1-800-823-8095 lgorrill@canadafluorspar.com- or -Ali Mahdavi Partner Spinnaker Capital Markets Inc. am@spinnakercmi.com