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Aberdeen Reports Shareholders' Equity of $1.18 Per Share and Year End Financial Results

05/04/2010


TORONTO, ONTARIO--(Marketwire - May 4, 2010) - ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) is pleased to announce that it has released its financial results for the fiscal year ending January 31, 2010.

As at January 31, 2010, Aberdeen's Shareholders' Equity was $103.2 million, or $1.18 per share. Aberdeen's shareholders' equity increased by $8.8 MM from $94.4 MM in Q3 2010, and increased by $15.7 MM from $87.5 MM for the fiscal year. During the fourth quarter, the primary factor explaining the increase in shareholders' equity was an increase in the value of our investment portfolio (including cash and cash equivalents) by $10.8 MM, partially offset by an increase in future income taxes and accounts payable and accrued liabilities.

Aberdeen received royalty revenue of $1,846,701 from 170,026 ounces sold at Simmer & Jack's Buffelsfontein Mine and First Uranium's Mine Waste Solutions Tailings Recovery Operations during the year. This revenue was down from $7,168,009 in fiscal 2009 due to the change from Aberdeen's graduated royalty at a rate of 4.75% in calendar 2008, to a perpetual royalty rate of 1% as of the beginning of calendar 2009. The graduated royalty ended in 2008 with the maturing of the convertible royalty loan and the 1% NSR royalty was received following the vote by Simmers' shareholders to deny Aberdeen's request to convert the outstanding loan to Simmers' common shares.

Investment Portfolio Continues To Post Strong Performance      
       
Aberdeen International Inc.            
             
  January 31, 2010 October 31, 2009 July 31, 2009
 
Shares outstanding   87,503,839   87,503,839   87,503,839
 
               $ $/Shares $ $/Shares $ $/Shares
 
 
Cash 3,266,356 0.037 5,808,265 0.066 1,340,802 0.015
 
Investments            
  Publicly traded 38,427,497 0.439 36,174,560 0.413 29,634,597 0.339
  Private 6,934,527 0.079 3,176,142 0.036 7,837,283 0.090
  Non-trading warrants            
    Intrinsic value 6,147,000 0.070 3,065,390 0.035 2,486,833 0.028
    Option value 4,718,535 0.054 5,913,334 0.068 4,893,921 0.056
  10,865,535 0.124 8,978,724 0.103 7,380,754 0.084
Portfolio investments 56,227,559 0.643 48,329,426 0.552 44,852,634 0.513
 
Equity accounted investment 800,000 0.009 1,798,533 0.021 1,894,034 0.022
 
Loans receivable 8,246,565 0.094 1,771,173 0.020 2,596,374 0.030
Receivable on sale of mineral property - - - - - -
 
Total 68,540,480 0.783 57,707,397 0.659 50,683,844 0.579

Aberdeen benefitted from the performance of its investment portfolio in Q4, increasing in value by $10.8 MM in the quarter and by $30.6 MM for the year. Key contributors to this increase were in Q4 were: Crocodile Gold and Avion Gold. Over the year, the portfolio benefitted from an overall rebound in the small cap resource market, but specifically realized exceptional gains on Crocodile Gold/Franc-Or, Avion Gold and Sulliden Gold positions. Crocodile Gold began as a significant private investment that was listed publicly in November, 2009. The Company has been successful at gaining investor recognition for its growing gold production assets in Northern Territory, Australia since its public listing, and we still see potential for significant gains from this investment. We also see Crocodile Gold as a model for the execution of future private investments and will look repeat this kind of success in the future with significant private investments such as Forbes Coal, Temujin Mining and Brazil Potash.

The increase in the loans receivable during the quarter was due to a US$6 MM loan to Temujin mining, of which US$3 million has subsequently been repaid.

Gold Investments Continue To Add Value To Portfolio

During Q4, Aberdeen continued to benefit from strong performance from several of its gold equity investments. While the earlier part of 2009 performance of gold equities was dominated by larger-capitalization stocks, in late 2009 junior gold equities performed very well as investors sought better valuation and growth. In addition to its 1% NSR royalty on Simmer & Jack's Buffelsfontein mine and First Uranium's Mine Waste Solutions operation in South Africa, Aberdeen's biggest equity holdings were junior gold and precious metals companies. At the end of the quarter, Aberdeen's top three equity positions were Crocodile Gold, Sulliden Gold and Avion Gold. Since the end of the quarter, Aberdeen diversified some of its gold equity exposure by shifting part of its holdings in Crocodile Gold into Verena Minerals, a new gold investment with an exciting development-stage project in Brazil. Aberdeen has also added to its Sulliden Gold holdings since the end of the year, believing that its high-quality Shauhuindo project in Peru is significantly undervalued at the present time. As at January 31, 2010, approximately 67% of Aberdeen's book value, or $68.7 MM, was in gold equities or royalties.

Simmer Loan Agreement

On February 16, 2009, shareholders of Simmer & Jack voted against the conversion to equity of the Loan Facility thereby granting Aberdeen a 1% Life of Mine NSR on all the Northwest assets of Buffels Gold Mines. Aberdeen has received and continues to receive the 1% royalty from both Simmers and First Uranium for the Buffels underground operation and the Mine Waste Solutions project.

During fiscal 2010, Aberdeen filed a statement of claim against Simmer & Jack and against First Uranium seeking payment of the outstanding Graduated Royalty from October 16, 2008 to December 31 2008. The claim also included the unpaid loan principal for US$10 MM for a total of US$11.4 MM in claimed damages.

Outlook

While we have been very pleased with how our gold investments have performed overall in 2009 we do however expect that the broader resource market, not just gold, will perform well over the coming year. Therefore we have been diversifying our holdings into more significant non-gold resource investments. In Q4 we invested in Temujin Mining, a private exploration and development company focused on the Oyu Tolgoi district of Mongolia with copper and gold projects, as well as Forbes Coal, which is acquiring two high-quality coal mines (export grade thermal coal and PCI/anthracite coal) in South Africa. We have added to both positions since the end of the year.

Since the end of the year we have added positions in Dacha Capital, which is taking advantage of growth in the rare earth metals market by stockpiling physical metal supplies, while having the flexibility to exclude metals that are either ubiquitous or have poorer fundamentals. We also have added a new position in Alderon Resources, which is developing the Kami iron ore project in Labrador, Newfoundland.

By adding to our positions in base metals, bulk commodities and strategic metals, we believe that we can generate excellent investment returns in 2010, while diversifying the portfolio and lowering overall risk.

About Aberdeen International Inc:

Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-IPO and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; (ii) are undervalued in foreign capital markets. Aberdeen will seek to provide value-added managerial and board advisory services to companies. The Corporation's intention will be to optimize the return on its investment over an 18 to 24 month investment time frame.

Aberdeen International Inc.

Please visit the Company's web site at www.aberdeeninternational.ca or write us at dstein@aberdeeninternational.ca

Cautionary Notes

Cautionary Note Regarding Forward-Looking Information. This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, valuations of investments, proposed transactions and investments, investment philosophy, Simmers litigation, liabilities and commitments and royalties. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; other inherent risks of the mining industry and investment industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

For more information, please contact

Aberdeen International Inc.
David Stein
President and COO
(416) 861-5812
dstein@aberdeeninternational.ca
or
Aberdeen International Inc.
George Faught
CEO
(416) 861-5887
or
Aberdeen International Inc.
Stan Bharti
Executive Chairman
(416) 861-5876