October 2, 2008

Immediate High-Value Drill Targets Identified on Elray Resource’s Angkor Wat Project

Elray Resources, Inc. (OTCBB: ELRA), a technically driven gold and precious mineral exploration company, is pleased to report to shareholders on its Angkor Wat Project in Cambodia.

The Company owns 100% of the license for the 5,400 hectare project area, which contains multiple historical workings including the Rom Dey Vein which was extensively explored by the French in the 1960s, with very positive results. Historical workings are seen as very good indicators of the presence of gold, especially given improved technology and the current high price of gold.

The United Nations Economic and Social Commission for Asia and the Pacific ("ESCAP") reported in its Minerals of Cambodia publication that the Bureau de Recherches Geologicaques et Miniere (BRGM) carried out 500m of diamond core drilling at the Rom Dey deposit from 1963 to 1965. BRGM reported grades ranging from 7.1g/t to 20.4g/t gold.

In addition, the Angkor Wat lands contain several large areas of colluvial gold workings and it is clear from the distribution of the workings, that the source has not yet been identified. Considering the geological environment and the known mineralization in the area, it seems likely that the source is a number of veins or stockwork zones.

Grab samples collected from the Rom Dey deposit and analyzed by ALS Chemex laboratories returned values up to 71.9 g/t gold.

"The Angkor Wat gold deposits represent immediate drill targets," commented Mr. Barry J. Lucas, Executive Chairman of Elray Resources. "We believe the Angkor Wat lands could host alluvial and hard rock open pittable and underground gold resources."

About Elray Resources, Inc.

Elray Resources, Inc. is a junior exploration and development Corporation which has successfully accumulated a portfolio of four highly prospective, heavily mineralized mining tenements in Cambodia and Mexico. Elray Resources, Inc.'s primary objective is to source projects, conduct geological assessments and seek Joint Venture partners to develop the properties.

Please visit www.ElrayMining.com for more information.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Actual results may differ from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks associated with gold & precious mineral exploration risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, commercial agreements, acquisitions and strategic transactions, government regulation and taxation. More information about factors that potentially could affect the Company's financial results is included in its filings with the Securities and Exchange Commission.

 Investor Relations: Jake Harris Phone: (347) 410 9782 Email: Email Contact

SOURCE: Elray Resources, Inc.