LKA Releases Highlights of 2005 Year-End Financial Results

Apr 19, 2006, 01:00 ET from LKA International, Inc.

    GIG HARBOR, Wash., April 19 /PRNewswire-FirstCall/ -- LKA
 International, Inc. (OTC Bulletin Board:   LKAI) released highlights from the
 Company's financial results for the year ended December 31, 2005. The
 following is a summary of certain highlights (excerpts) from LKA's 10-KSB
 (the "Filing") as filed with the Securities and Exchange Commission on
 April 17, 2005 and/or previously released production reports. Investors are
 advised to read the complete text of the Filing to obtain an accurate
 understanding of the Company's activities.
     Gold production and grade at LKA's Golden Wonder Mine up 178% and 173%
     Total ounces of gold produced from the Mine increased 178% to 25,543
 ounces from 14,320 ounces in the year-ago period. The weighted-average
 grade of the ore produced during 2005 increased 173% to 19.7 ounces gold
 per ton vs. 11.37 ounces gold per ton in 2004. The weighted-average grade
 of all ore produced from the Golden Wonder since the pilot production
 program in 1984 is 14.19 ounces of gold per ton of ore mined/shipped. The
 majority of gold produced from the Golden Wonder has occurred since modern
 operations began in 1998.
     Royalty revenues from increased gold production up 334%.
     Royalties paid to LKA from the Company's Golden Wonder Mine increased
 to $888,238 from $265,757 in the year-ago period. LKA currently receives a
 10% net-smelter royalty from the all Golden Wonder production and intends
 to increase its interest in the Mine's production to 50% by financing the
 expansion of the Mine.
     Assets and Shareholders' Equity increased 141% and 332% respectively.
     Total assets increased to $2.5 million from $1.8 million in the
 year-ago period. Shareholders' Equity rose to $2.1 million from $635,457 in
     Earnings (after taxes) increased 1,260%
     LKA earned $312,232 ($.03 per share) on net revenues of $1,035,075
 during 2005. Earnings in 2004 were $24,781 on net revenues of $440,235.
     About LKA
     As the sole property owner, LKA currently receives a 10% net-smelter
 royalty (less certain shipping and handling charges) from Golden Wonder
 production. LKA plans to substantially increase its interest in Golden
 Wonder production (up to a 50% net-profits interest) by financing the
 estimated $3.5 million expansion of the Mine's existing production zone.
 IBK Capital Corp. of Toronto has been engaged by LKA to lead the financing
     LKA's plans to expand Golden Wonder production are subject to a number
 of conditions including but not limited to, favorable financing
 terms/availability, permits, favorable geology, etc. There can be no
 assurance that LKA will be successful in this endeavor.
     Forward-looking statements in this release are made pursuant to the
 'safe harbor' provisions of the Private Securities Litigation reform Act of
 1995. Investors are cautioned that such forward-looking statements involve
 risks and uncertainties, including, but not limited to, continued
 acceptance of the company's products and services, competition, new
 products and technological changes, as well as any and all 'other risks'
 associated with business.

SOURCE LKA International, Inc.