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HORIZON RESOURCES REPORTS PROFIT FROM OPERATIONS OF $1.3 MILLION FOR THE SECOND QUARTER, BEFORE NON-CASH CHARGES AND INTEREST

 GOLDEN, Colo., Nov. 20 ~PRNewswire~ -- Horizon Resources Corp. (NASDAQ-NMS: HRIZ) today announced revenues for the second quarter ended Sept. 30, 1992, of $8,991,000. Profit from operations amounted to $1,291,000. After accounting for two non-cash charges which totaled $1,518,000 and also interest and other non-operating expenses of $859,000, Horizon reported a net loss of $1,086,000, or 28 cents per share.
 One of the non-cash charges was an unrealized foreign exchange loss of $1,022,000 relating to the company's subordinated convertible debentures payable in Swiss francs due in 1996. The other was financing costs of $496,000 principally relating to the issuance of common stock in connection with the private placement of short-term notes, which provided a portion of the funds for the acquisition of Horizon's potash subsidiary in February 1992.
 For the six months ended Sept. 30, 1992, revenues were $20,296,000. Profit from operations was $3,441,000 before the two non-cash charges, interest and other expenses. The net loss for the six months was $1,062,000, or 27 cents per share.
 For the six months, an unrealized foreign exchange loss of $1,766,000 was reported. With the recent strengthening of the United States dollar, most of this loss has reversed and Horizon has experiencedu?nrealized foreign exchange gain of approximately $1,350,000 as of Nov. 16, 1992. Also for the six months, the non-cash financing costs (described above) totaled $1,439,000.
 "Despite the second quarter being a seasonally weak quarter, our potash business continues to meet our expectations," said Charles E. Stott Jr., president and chief executive officer.
 Horizon Resources, a diversified mineral resource company, is involved in the exploration and production of industrial minerals, precious metals and base metals, primarily in the United States. The company's common stock is listed on the NASDAQ National Market System under the symbol "HRIZ."
 HORIZON RESOURCES CORP.
 Consolidated Statements of Operations
 Three Months Ended Six Months Ended
 Sept. 30, Sept. 30,
 1992 1991 1992 1991
 Potash Operations:
 Revenues $8,990,996 --- $20,296,188 ---
 Operating costs
 and expenses:
 Cost of sales 6,551,599 --- 14,518,448 ---
 Royalties 467,990 --- 992,219 ---
 Selling 253,730 --- 593,429 ---
 Gross operating
 margin 1,717,677 --- 4,192,092 ---
 Precious metals
 operations:
 Revenues --- --- --- ---
 Operating costs and
 expenses:
 Cost of sales --- --- --- ---
 Reserve for shutdown
 costs --- --- --- ---
 Writedowns of
 inventory --- --- --- ---
 Royalties --- --- --- ---
 Gross operating
 margin --- --- --- ---
 Total gross
 operating
 margin 1,717,677 --- 4,192,092 ---
 Other operating
 costs and expenses:
 General and
 administrative 320,248 342,006 604,596 605,408
 Exploration 7,515 55,115 13,461 100,434
 Royalties and rentals,
 nonproducing
 properties 34,118 12,885 68,235 63,337
 Abandonment of
 properties 64,691 --- 64,691 ---
 Profit (loss) from
 operations 1,291,105 (410,006) 3,441,109 (769,179)
 Interest expense,
 net (869,596) (137,292) (1,292,824) (246,890)
 Financing cost (495,999) --- (1,439,053) ---
 Foreign exchange
 gain (loss), net (1,021,713) (479,316) (1,765,644) (24,534)
 Miscellaneous
 income (expense),
 net 10,305 269 (5,346) (179)
 Profit (loss)
 before minority
 interest (1,085,898) (1,026,345) (1,061,758) (1,040,782)
 Minority interest --- 483 --- 665
 Net income
 (loss) $(1,085,898) $(1,025,862) $(1,061,758) $(1,040,117)
 Net income (loss)
 per share $(0.28) $(0.30) $(0.27) $(0.30)
 Number of common
 shares for computing
 per share data 3,910,847 3,417,418 3,910,393 3,416,968
 Consolidated Balance Sheet
 Sept. 30, 1992
 Assets:
 Cash $2,659,658
 Accounts and notes receivable 2,358,447
 Inventories 7,010,012
 Other current assets 1,473,739
 Total current assets 13,501,856
 Mining equipment, net, held for sale 299,651
 Plant and equipment, net 3,700,510
 Mining properties, net 10,611,777
 Mining properties, net, held for sale 3,103,878
 Real estate held for sale 184,123
 Other assets 564,584
 Total assets $31,966,379
 Liabilities and Stockholders' Equity:
 Notes payable and current maturities
 of long term indebtedness $5,201,369
 Accounts payable and accrued liabilities 2,435,018
 Other current liabilities 1,457,220
 Total current liabilities 9,093,607
 Long-term indebtedness 17,707,866
 Stockholders' equity 5,164,906
 Total liabilities and
 stockholders' equity $31,966,379
 -0- 11~20~92
 ~CONTACT: John E. Watson or Dick Ryan of Horizon Resources, 303-239-8701~
 (HRIZ)


CO: Horizon Resources Corp. ST: Colorado IN: MNG SU: ERN

MC -- DV004 -- 3555 11~20~92 17:02 EST
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Date:Nov 20, 1992
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