Arehada Mining Limited

Arehada Mining Limited

June 10, 2009 17:51 ET

Arehada Provides Operations Update

TORONTO, ONTARIO--(Marketwire - June 10, 2009) - Arehada Mining Limited (TSX:AHD) ("Arehada") today provided the following update for its wholly owned Chinese operating subsidiary, Arehada Mining Corporation.

The resumption of mining commenced in April 2009 and processing began on May 10, 2009. Every phase of the operation in the mine since resumption has been proceeding smoothly and safely. The Company has seen improvement in head grades and recovery levels. The average combined lead - zinc head grade has reached 3.33% in May, 2009. In addition, the combined recovery rates of the lead and zinc concentrate has improved to 88.66%, an increase of 2% compared to the recovery rate of 86.61% achieved in 2008. These two key production performance indicators have reached the best levels since 2005 when the Company commenced operations. The primary reason that the head grade has improved is the adoption of the Short-hole shrinkage method instead of Sublevel Open Stope Mining (long-hole mining) method which was used in the mine from 2005 to 2008.

The Company is benefiting from the recent increase in base metal prices, which the Company believes is the result of the increase in the demand for base metals including lead and zinc likely due to economy recovery in China. Given the volatility in metal prices, the Company's near-term primary objectives are to maximize cash flow and to minimize costs. The Company believes it has effectively implemented these objectives in May and will continue to implement conducted over the coming months. If lead and zinc prices significantly increase in the future, the Company will consider adjusting these near-term objectives.

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 near-term objectives, anticipated increase in base metal prices and the Company's plan to adjust its near term objectives. 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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