October 22, 2008
Elray’s Zircon Mineral Project Located in One of the Most Heavily Mineralized Areas in the World
Elray Resources, Inc. (OTCBB: ELRA), a technically-driven gold and mineral exploration company that recently announced it has entered in to a joint venture to develop a zircon sands project in Indonesia, is pleased to provide shareholders with the following background on the country's mining industry.
Indonesia has some of the world's largest deposits of zircon sand, coal, copper, tin, nickel and gold, and is keen to earn more from the sector particularly as strong demand from China and India is driving prices up for many commodities to record levels.Major mining companies operating in Indonesia include the largest publicly-traded copper company in the world Freeport-McMoran (NYSE, recent price: US$33.52), the largest gold producer in the world, Newmont (NYSE, recent price: US$29.36) and Rio Tinto (NYSE, recent price: US$173.56).
Investment by foreign and domestic firms in Indonesia's mining sector averaged $800 million a year between 2000 and 2005, and was set to reach $1.5 billion in 2007. According to Business Monitor International, the Indonesian mining industry is forecast to log an average growth rate of 5.82% in 2007 - 2011 and will be valued at nearly US$50bn by 2012.
"Indonesia is seen as one of the most heavily mineralized areas in the world," commented Mr. Barry J. Lucas, Executive Chairman of Elray Resources. "As Elray continues to build itself into a multi-region, multi-property mining and exploration company, this zircon sands project represents an exceptional addition to our portfolio."
About Elray Resources, Inc.
Elray Resources, Inc. is a junior exploration and development Corporation which has successfully accumulated a portfolio of highly prospective, heavily mineralized mining tenements in South East Asia and North America. Elray Resources, Inc.'s, primary objective is to source projects, conduct geological assessments and seek Joint Venture partners to develop the properties.
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.
Contacts: Elray Resources, Inc. Jake Harris Investor Relations (347) 410-9782 Email: [email protected] Website: www.ElrayMining.com
SOURCE: Elray Resources, Inc.