Arehada Mining Limited

Arehada Mining Limited

February 23, 2010 20:56 ET

Arehada Enters Into Tentative Agreement for Sale of Subsidiary

TORONTO, ONTARIO--(Marketwire - Feb. 23, 2010) - Arehada Mining Limited (TSX:AHD) ("Arehada") today announced that its wholly-owned subsidiary, Arehada (Barbados) Corporation, has signed an agreement with Shanjin Mining Corporation, a Shandong based Chinese mining comapny. Under the agreement, Arehada (Barbados) Corporation will sell all of the shares it holds in Arehada Mining Corporation, the Chinese operating subsidiary, to Shanjin Mining Corporation. The agreement has not yet taken effect, and will only become effective upon the satisfaction of certain conditions, including without limitation, receipt of approvals from the regulatory authorities of the Inner Mongolia Autonomous Region and Shandong Province of China. Arehada will provide further details of the transaction when the agreement takes effect.

About Arehada Mining

Arehada Mining Limited is engaged in the exploration, development, extraction and production of zinc, lead and silver in Dongwuzhumuqinqi, located in Inner Mongolia, China. Arehada produces zinc and lead concentrates, which are then sold to smelters in China.

Arehada has completed construction of a zinc processing plant, to produce zinc calcine and sulphuric acid.

Forward Looking Information

The above contains forward looking information that is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, costs and supply of materials relevant to the mining industry, extent of resources actually contained in mineral deposits, actual recoveries achieved in processing ore, technological change, change to regulations affecting the mining industry, risks associated with mining operations in China, environmental and safety regulations risks, and risk associated with failure to obtain required regulatory or third party consent. Generally, forward looking information can be identified by the use of forward looking terminology such as "plans", "expects", "scheduled", "estimates", "forecasts", "intends", "anticipates" 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 in this release include statements regarding the Company's proposed sale to Shanjin Mining Corporation, the effectiveness of the purchase agreement between Arehada (Barbados) Corporation and Shanjin Mining Corporation, and the fulfillment of the conditions set out in the purchase agreement. Although we believe the expectations reflected in our forward looking information are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. Readers should not place undue reliance on forward looking information.

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