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China Shen Zhou Mining & Resources Announces Initial Completion of Acquisition of Large-Scale Gold and Copper Mine Located in Kyrgyz Republic

Posted on: Friday, 21 December 2007, 09:00 CST

Company Also Plans to Engage Qualified and Renowned Investor Relations Agency

BEIJING, Dec. 21 /Xinhua-PRNewswire-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. (BULLETIN BOARD: CSZM) , a leading company in the exploration, development, mining and processing of fluorite, zinc, lead, copper, and other nonferrous metals in the PRC, today announced it has initially completed its acquisition of a large-scale gold and copper mine located in Kyrgyz Republic. The Company anticipates to consolidate the newly- acquired assets in its 10-K Annual Report for 2007.

On November 26, 2007, the Company, through its subsidiary, the Inner Mongolia Xiangzhen Mining Group Co Ltd. ("Xiangzhen Mining"), completed its acquisition of the 100% ownership rights of Tun Lin Limited Liability Company ("Tun Lin"), a Kyrgyz company, from Tun Lin's original shareholders, with receipt of the approval from the authority of the Kyrgyz Republic and the issuance of a share registration certificate which confers the lawful ownership of Tun Lin to Xiangzhen Mining. The consideration for the acquisition of Tun Lin is US$10 million.

Tun Lin has a wholly owned Kyrgyz subsidiary, Kichi-Chaarat Closed Joint Stock Company ("Kichi-Chaarat"). Upon completion of the acquisition of Tun Lin, the Company indirectly owns 100% of Kichi-Chaarat whose major assets include: a license on usage of subsoil for the purpose of geological exploration of precious metal and stones within 39,500 hectares of the Kuru- Tegerek area, and a licensing agreement and license on usage of subsoil for the purpose of mining precious metal and stones in the land of "Kuru-Tegerek" deposit, within an area of 9 square kilometers (900 hectares).

Jessica Yu, CEO for China Shen Zhou Mining & Resources commented, ''We are very pleased to complete the acquisition of this large-scale gold and copper mine on time in Q4 2007. As proved by SRK Consulting's authoritative evaluation report, the nonferrous reserves in Kyrgyzstan are extremely plentiful and valuable and will support the Company's development, improve its profitability as well as strengthen the Company's resources reserves in the longer term. After consolidating the new subsidiary with the Company, we are committed to maximizing shareholders' value and positioning the Company well for long-lasting development.

The Company also announced it is in search of a qualified and renowned Investor Relations Firm, which is expected to be confirmed in the next few weeks. The Company seeks to enhance its communications with investors, maintain open dialogue and credibility, boost its reputation and broaden interest and awareness of its investment story in the capital market.

About The Kuru-Tegerek Cu-Au Skarn Deposit and Exploration Area

The Kuru-Tegerek deposit is located in Chatkal region of the province of Jalal-Abad in the western part of the Kyrgyz Republic. It occupies a southern slope of the Chandalash range, which is part of the Talas Altai mountains between the Chakmakus River and the Kuru-Tegerek River.

The area where the Kuru-Tegerek copper-gold deposit is sited is one of most geologically prospective regions of Kyrgyzstan. The region already hosts numerous deposits including primary hard rock and secondary placer deposits. The gold placer deposits occupy valleys of western tributaries of the Chatkal RRiver and the primary deposits of copper, molybdenum and gold are found on the slopes of arms of the Chandalash mountain range. To date about 200 deposits, mineralized zones and mineral occurrences have been inventoried in this region.

The Kuru-Tegerek copper-gold deposit was a subject of multistage and long term exploration activities which resulted in detailed geological mapping and geochemical and geophysical surveys, drillings and underground mining works. During the period from 1975 to 1980 pre feasibility studies were conducted over the deposit area which included 38,191m of diamond core drillings and 18,590 underground workings. These works are described in detail in the appropriate reports. As a result of all exploration works, the resources of ores and contents of metals were estimated according to the regulation of the former Soviet Union governmental authorities.

Kichi Chaarat CJSC Company currently hold two licences: a mining licence covering 9km2 over the Kuru-Tegerek deposit and an exploration licence covering 39,500 hectares (h) of the area of the eastern slope of the Sandal mountain range which includes the Kuru-Tegerek mountain.

The Kuru-Tegerek Copper-Gold (Cu-Au) deposit includes 172.7 million tonnes (Mt) (C1+C2) with a contained metal content of 97.36t for gold and 1.02Mt for copper. The Molybdenite ore body in Kuru-Tegerek also contains resources (C2) of molybdenum and rhenium which contain 4,883t of Molybdenum (Mo) and 2,328 kilograms (kg) of Rhenium (Re).

If the mine is selectively mined at a higher cut off grade, the underlying resources would have a much higher grade without losing significant amount of metal concentrate.

About China Shen Zhou Mining & Resources, Inc.

China Shen Zhou Mining & Resources, Inc. conducts all of its business through its subsidiary, American Federal Mining Group ("AFMG"), which, in turn, conducts its business through its Subsidiaries. The principal business of AFMG is the exploration, development, mining, and processing of fluorite, zinc, lead, copper, and other nonferrous metals in the PRC. AFMG has its principal areas of interest in the PRC: (a) fluorite exploration and extraction in the Sumochaganaobao region of Inner Mongolia Autonomous Region; and (b) zinc/copper exploration, mining and processing in Xinjiang Uygur Autonomous Region; and (c) zinc/copper/lead exploration, mining and processing in Wulatehouqi of Inner Mongolia Autonomous Region

Safe Harbor Statement

Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe,""expect,""may,""will,""should,""project,""plan,""seek,""intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

China Shen Zhou Mining & Resources, Inc.

CONTACT: Sterling Song, Senior Investor Relations Manager of China ShenZhou Mining & Resources, Inc., +86-10-6887-2811, or investor@chinaszky.com

Web Site: http://www.chinaszmg.com/

Source: PRNewswire

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